Obtain association approval. Depending upon your association's bylaws, forming a PAC may require a full membership vote or merely a majority of the board. It is likely your bylaws will have to be amended to include a provision allowing for a political action committee. (See attached sample bylaw article to add to current Association Bylaws.)

Selecting Committee Members. A political action committee requires a treasurer and at least one other principle officer, usually the association president (the committee can be, and usually is the association board members). Selecting the treasurer is very important. The treasurer must be a person who works well with numbers and forms and is very astute and timely. The reporting requirements for which the treasurer is responsible are very detailed and require much attention. Because of this, most associations pay a small fee to an outside vendor to act as the PAC Treasurer and file the necessary reporting forms.

Filing an Organizational Statement. The Secretary of State requires the PAC to file a form FPPC-410 within ten days of receiving or spending $1,000 or more in member contributions. Once this form is filed the Secretary of State will assign an identification number for all reports which will be submitted by that political action committee. This firm, and all reporting forms can be obtained from the fair political practices commission's web site at www.FPPC.CA.GOV.

Opening a Political Action Committee Bank Account. It is imperative that the PAC open a separate bank account and not commingle funds with the association. If the PAC intends to participate in both ballot measures and supporting or opposing candidates for elected office, it is recommended that the association open two separate bank accounts for those separate purposes.

Consult With Legal Advisors. The area of the law in regard to political action committees is very tenuous. Statutes are modified yearly and courts seem to find certain ones unconstitutional on a monthly basis. It is important that you contact competent legal counsel when considering starting a PAC to make sure that you are up to date on all of the requirements and reporting guidelines.