Can a Tennessee state legislator running for Congress move money from his state campaign account into his federal campaign account?

Plain-English summary

The Tennessee Bureau of Ethics and Campaign Finance asked whether a state legislator who decides to run for Congress can move leftover money from his state-level campaign account into a federal campaign account. The AG said yes, subject to two Tennessee-side conditions.

First, the funds have to come from an "unexpended balance of contributions" in the state campaign account, the kind of leftover that § 2-10-114 governs. That statute lists several ways a state candidate can allocate post-election leftovers; one of the options is to retain or transfer the funds "to any campaign fund pursuant to Tennessee reporting requirements." A federal campaign account counts as a campaign fund for that purpose.

Second, the transfer has to be reported on the official's supplemental semiannual disclosure statement that § 2-10-106(a) requires whenever a final campaign-finance statement shows an unexpended balance, continuing debts, or a deficit. The disclosure obligation continues until the state account zeros out.

The opinion only addresses state law. Federal campaign-finance rules (the FECA, FEC regulations) impose their own limits on what funds may flow into a federal account and how, and the AG did not analyze those. A state official making this kind of transfer also has to confirm the transfer complies with federal law before completing it.

Currency note

This opinion was issued in 2016. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Q: What counts as an "unexpended balance" under § 2-10-114?
A: Any funds left in the state campaign account after the most recent election, including reserved contributions and other unspent campaign money. Subsection (a)(1) governs how the candidate may dispose of those funds.

Q: What are the disposal options under § 2-10-114(a)(1)?
A: The statute lists several. Relevant here, the funds "may be retained or transferred to any campaign fund pursuant to Tennessee reporting requirements." Other allowed uses can include charitable contributions, returns to donors, and similar. The AG focused on the "transferred to any campaign fund" option.

Q: Does "any campaign fund" include a federal account?
A: The AG read it that way, since the statute does not restrict the recipient fund to a state account, and an active federal campaign account is plainly a "campaign fund."

Q: What is the supplemental semiannual statement?
A: Under § 2-10-106(a), if the official's final campaign-finance statement shows an unexpended balance, continuing debts and obligations, or a deficit, the official must file a supplemental semiannual statement until the account zeros out. The state-to-federal transfer must show up on that statement.

Q: Does this opinion say anything about federal campaign-finance law?
A: No. The AG only addressed Tennessee law. Federal limits on what can be deposited into a federal campaign account (source restrictions, contribution limits, prohibitions on certain transfers from state accounts) apply on top of the Tennessee disclosure requirement. A candidate or treasurer planning this transfer should get federal-law advice separately.

Q: Are there limits on how much can be transferred?
A: The Tennessee statute does not impose a per-dollar cap on transfers from a state account to another campaign fund. Federal rules may. The state law only requires disclosure of the transfer.

Background and statutory framework

Tennessee's campaign finance disclosure law tracks unexpended balances of state campaign funds beyond a single election. Section 2-10-114(a)(1) sets out the menu of permissible allocations: return contributions, donate, retain or transfer to a campaign fund, and so on. Section 2-10-106(a) imposes a continuing semiannual disclosure obligation when a final statement shows leftover money or debt.

The opinion's logic is narrow and statutory: the leftover can go to a campaign fund; a federal campaign fund qualifies; disclose the move; done.

Citations

• Tenn. Code Ann. § 2-10-114(a)(1) (permissible allocations of post-election unexpended balance)
• Tenn. Code Ann. § 2-10-106(a) (supplemental semiannual disclosure when balance, debt, or deficit remains)

Source

• Landing page: https://www.tn.gov/attorneygeneral/opinions.html
• Original PDF: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2016/op16-045.pdf

Original opinion text

STATE OF TENNESSEE
OFFICE OF THE ATTORNEY GENERAL
December 20, 2016
Opinion No. 16-45

Transfer of Campaign Contributions

Question
Whether Tennessee state law prohibits an elected state official running for federal office from making a contribution from his state campaign account to his federal campaign account.

Opinion
No, assuming that the funds are transferred from an unexpended balance of contributions in the state official's state campaign account and that the transfer is reported on the official's supplemental semiannual disclosure statement.

ANALYSIS

Tennessee Code Annotated § 2-10-114 identifies the manner in which unexpended balances in the campaign account of a candidate may be allocated after an election. Subsection (a)(1) provides that "[a]ny candidate for public office in this state shall allocate an unexpended balance of contributions" after the election in one or more of several specified ways, one of which is that "[t]he funds may be retained or transferred to any campaign fund pursuant to Tennessee reporting requirements." Tennessee Code Annotated § 2-10-106(a) provides that, "[i]f the final statement of a candidate shows an unexpended balance of contributions, continuing debts and obligations, or an expenditure deficit," a supplemental semiannual statement of contributions and expenditures must be filed until the account shows no unexpended balance, continuing debts and obligations, expenditures, or deficit.

Accordingly, if an elected state official running for federal office has an unexpended balance of contributions in his state campaign account, Tenn. Code Ann. § 2-10-114(a)(1) would permit that official to transfer those unexpended funds from his state campaign account to his federal campaign account, provided that the transfer of funds is appropriately disclosed on the state official's supplemental semiannual disclosure statement as required under Tenn. Code Ann. § 2-10-106(a).

HERBERT H. SLATERY III
Attorney General and Reporter

ANDRÉE SOPHIA BLUMSTEIN
Solicitor General

JANET M. KLEINFELTER
Deputy Attorney General

Requested by:
Drew Rawlins
Executive Director
Tennessee Bureau of Ethics and Campaign Finance
404 James Robertson Parkway, Suite 104
Nashville, Tennessee 37243-1360