CCA - Political Activity and Lobbying Report, 2012
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10 Burton Hills Boulevard Nashville, TN 37215 Political Activity and Lobbying POLITICAL ACTIVITY REPORT Report 2012 Transparency is a critical part of the relationships we have with our government partners and the taxpayers we ultimately serve, as well as our shareholders, and we are committed to transparency regarding our government relations and political efforts. In addition to complying with applicable disclosure laws, CCA is going a step further to produce this annual report, which we believe will bring further clarity to our activities. We believe it is the right thing to do for our business, our partners and our shareholders. CCA’s political and government relations activities are designed to educate federal, state and local officials on the benefits of partnership corrections, CCA’s ability to assist them in meeting their corrections needs and our track record of success. Our company does not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for an individual’s incarceration or detention. America’s Leader in Partnership Corrections 1 CCA Political Activity and Lobbying Report 2012 Jan. 1, 2012 – Dec. 31, 2012 10 Burton Hills Boulevard Nashville, TN 37215 Overview Corporate funds are used to make political contributions where allowed by law and where management has determined that such contributions will be an effective use of the funds. CCA also sponsors a political action committee (CCA PAC) that makes contributions to federal candidates and to candidates in certain jurisdictions where contributions with corporate funds are not allowed. POLITICAL ACTIVITY REPORT CCA’s political contributions and lobbying activities are subject to robust oversight, approval and compliance procedures. Political contributions using corporate funds require approval by our Chief Executive Officer, Chief Development Officer or a Vice President Partnership Relations and, for compliance purposes, the Office of General Counsel. Government relations engagements and expenditures require Vice Presidentlevel or above approval. The Office of General Counsel and external compliance experts provide support for the company’s reporting and other compliance obligations, as well as periodic compliance training for internal partnership development personnel and contract government relations professionals. The Nominating and Governance Committee of CCA’s Board of Directors provides Board -level oversight of the Company’s political and government relations activities and compliance procedures. Compliance policies and procedures are addressed in CCA’s Code of Ethics and Business Conduct and in greater detail in our “Government Relations” policy *. CCA’s government relations activities are focused on government actions (legislative, regulatory and executive) that impact the construction and operation of privately operated prisons and detention facilities. The disclosures in the lobbying reports filed by the company under the Federal Lobbying Disclosure Act of 1995, as amended by the Honest Leadership and Open Government Act of 2007 (“LDA”), are representative of the types of matters on which the company lobbies. As stated in CCA’s most recent LDA report,** and as a matter of longstanding corporate policy and practice, CCA does not lobby for or against policies or legislation that would determine the basis for an individual’s incarceration or detention. * http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjExMjN8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 ** http://disclosures.house.gov/ld/ldxmlrelease/2013/Q1/300555796.xml 2 CCA Political Activity and Lobbying Report 2012 America’s Leader in Partnership Corrections Jan. 1, 2012 – Dec. 31, 2012 Political Contributions 10 Burton Hills Boulevard Nashville, TN 37215 Table A-1 Totals by Source of Funds 2012 Combined - Corporate and CCA PAC . . . . . . . . . . . . . . . . . . . . . . $956,135.86 Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $773,275.86 CCA PAC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $182,860.00 Totals by Recipient Category (Source in Parenthesis) Federal Candidates, Parties & Committees (CCA PAC) $177,100 State Candidates, Parties & Committees (Combined) $407,960 National 527 (Corporate) $366,500 Local Candidates (Corporate) $4,575.86 POLITICAL ACTIVITY REPORT Table A-2 State Type CCA-PAC CCA AL Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,500 AL Total. . . . . . . . . . . . . . . . . . . . . . . . . 2,500 CA Candidate. . . . . . . . . . . . . . . . . . . . . . . . 9,500 . . . . . . . . . 72,000 Candidate (Local). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Political Committeee. . . . . . . . . . . . . . . . . 5,000 . . . . . . . . . 80,000 Political Party. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 30,000 Ballot Measure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 CA Total 14,500 232,500 CO Political Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,050 CO Total 24,050 DC Candidate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 DC Total 1,000 FL Candidate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Candidate (Local). . . . . . . . . . . . . . . . . . . . . . . . . Political Committee . . . . . . . . . . . . . . . . . . . . . . . Political Party. . . . . . . . . . . . . . . . . . . . . . . . . .. . FL Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 . 1,750 16,000 20,000 41,250 GA Candidate. . . . . . . . . . . . . . . . . . . . . . . . 6,000 . . . . . . . . . 19,250 Candidate (Local). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,076 Political Committee . . . . . . . . . . . . . . . . . 3,500 GA Total 9,500 20,326 ID Candidate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,250 Political Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250 ID Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,500 IN Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,500 . . . . . . . . . . 5,000 IN Total 2,500 5,000 KS Candidate. . . . . . . . . . . . . . . . . . . . . . . . 1,000 Political Committee . . . . . . . . . . . . . . . . . 2,500 . . . . . . . . . . 2,000 KS Total 3,500 2,000 KY Candidate. . . . . . . . . . . . . . . . . . . . . . . 10,000 Political Committee . . . . . . . . . . . . . . . . . 5,000 Political Party. . . . . . . . . . . . . . . . . . . . . . 2,000 KY Total 17,000 MA Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,500 MA Total 2,500 3 CCA Political Activity and Lobbying Report 2012 America’s Leader in Partnership Corrections Jan. 1, 2012 – Dec. 31, 2012 Political Contributions (continued) 10 Burton Hills Boulevard Nashville, TN 37215 Table A-2 (continued) State Type CCA-PAC CCA MS Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,000 . . . . . . . . . . . 800 MS Total 2,000 800 MT Candidate. . . . . . . . . . . . . . . . . . . . . . . . 7,260 Political Party. . . . . . . . . . . . . . . . . . . . . . 1,100 MT Total 8,360 NV Candidate. . . . . . . . . . . . . . . . . . . . . . . . 6,000 NV Total 6,000 POLITICAL ACTIVITY REPORT NM Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,000 . . . . . . . . . . 9,500 NM Total 2,000 9,500 NC Candidate. . . . . . . . . . . . . . . . . . . . . . . . . 500 NC Total 500 ND Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,500 ND Total 2,500 OH Candidate. . . . . . . . . . . . . . . . . . . . . . . . 4,000 Political Committee . . . . . . . . . . . . . . . . . 24,500 OH Total 28,500 OK Candidate. . . . . . . . . . . . . . . . . . . . . . . . 1,000 OK Total 1,000 PR Candidate. . . . . . . . . . . . . . . . . . . . . . . . 2,500 PR Total 2,500 SC Candidate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 Political Committee . . . . . . . . . . . . . . . . . 2,500 . . . . . . . . . . . . . . SC Total 2,500 3,500 TN Candidate. . . . . . . . . . . . . . . . . . . . . . . 14,000 . . . . . . . . . 28,100 Candidate (Local). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250 Political Committee . . . . . . . . . . . . . . . . . 8,500 . . . . . . . . . . 4,000 Political Party. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 20,000 TN Total 22,500 53,350 TX Candidate. . . . . . . . . . . . . . . . . . . . . . . . 6,000 . . . . . . . . . . . . . . Political Committee . . . . . . . . . . . . . . . . . 8,500 . . . . . . . . . . . . . . TX Total 14,500 VA Candidate. . . . . . . . . . . . . . . . . . . . . . . . 4,500 . . . . . . . . . . 1,000 VA Total 4,500 1,000 VT Candidate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 Political Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800 VT Total 3,000 WI Candidate. . . . . . . . . . . . . . . . . . . . . . . . 3,500 . . . . . . . . . . . . . . WI Total 3,500 National Parties 30,000 National 527’s 366,500 GRAND TOTAL 773,276 182,860 America’s Leader in Partnership Corrections 4 CCA Political Activity and Lobbying Report 2012 Jan. 1, 2012 – Dec. 31, 2012 527 Organizations CCA contributed to the following national 527 organizations in 2012: • Democratic Governors Association 10 Burton Hills Boulevard Nashville, TN 37215 • Republican Governors Association • Republican State Leadership Committee The aggregate total of contributions to these organizations is included in the summary data listed above. Additional information regarding recipient candidate and political committees, as well as the laws, rules and regulations applicable to political contributions by corporations and corporate affiliated political action committees, is available publicly through Internet sites maintained by the relevant Federal (i.e., the Federal Election Commission and Internal Revenue Service websites, www. fec.gov and www.irs.gov) and state agencies (e.g., www.sos.ca.gov). POLITICAL ACTIVITY REPORT Lobbying Information CCA retains the services of consultant government relations professionals in jurisdictions where it does or may in the future do business. CCA employees also register as lobbyists in jurisdictions where their activities meet the statutory definition. The list below shows CCA’s consultant registered lobbyists in 2012 by jurisdiction. Table B-1 Jurisdiction Firm Name Jurisdiction Federal Akin Gump Strauss Hauer & Feld LLP Mehlman Vogel Castagnetti, Inc. McBee Strategic Consulting, LLC Alabama Capitol Resources LLC Arizona Policy Development Group Inc. Molera Alvarez LLC Highground Inc. * Arkansas The Capitol Group * California Capitol Advocacy Colorado Brownstein Hyatt Farber Schreck, LLP Christiansen Corporate Resources Connecticut The O’Leary Group * Florida Smith, Bryan & Myers Georgia McKenna Long & Akridge LLP Piedmont Public Affairs Hawaii Capitol Consultants of Hawaii LLP * Idaho Lobby Idaho, LLC Indiana Barnes & Thornburg LLP Illinois Dorgan-McPike & Associates Kentucky MML&K Government Solutions Louisiana Haynie & Associates Firm Name Maine Michtell * Tardy Minnesota Hill Capitol Strategies Mississippi Buddy, Medlin & Associates * Capitol Resources LLC Montana Anderson, Baker & Swanson PLLC New Hampshire Rath, Young & Pignatelli PC New Jersey Princeton Public Affairs Group * New Mexico Edwin Mahr Ohio The Credo Company Oklahoma Fried Kipatrick Guinn LLC Scott Adkins Consulting, Inc. Tennessee Johnson Poss Government Relations Texas The Texas Lobby Group Vermont McLean, Meehan & Rice LLC Washington Bogard & Johnson LLC West Virginia Capitol Advocates Wisconsin The Welch Group * District of Columbia Group 360, LLC Los Angeles County Ek & Ek * Firm with which CCA no longer contracts for government relations services. 5 CCA Political Activity and Lobbying Report 2012 America’s Leader in Partnership Corrections Jan. 1, 2012 – Dec. 31, 2012 CCA’s contracts with its outside government relations professionals contain strict conflict of interest clauses that permit CCA to terminate the relationship if the professional or his or her firm engages in activities that conflict with CCA’s commitment not to lobby for or against policies or legislation that would determine the basis for an individual’s incarceration or detention. 10 Burton Hills Boulevard Nashville, TN 37215 Reported Lobbying-Related Expenses In 2012, CCA and its consultant lobbyists reported approximately $2.6 million in fees and other expenditures relating to lobbying on behalf of CCA at the Federal, state and local levels. This amount includes fees paid to consultant lobbyists (see Fees for Direct Lobbying, below), compensation paid to CCA employees who engage in lobbying or lobbying-related activities and lobbying-related expenses (such as travel expenses), as required by applicable Federal, state and local rules regarding lobbying disclosure. Of this amount, $970,000 was attributable to Federal lobbying-related activities and the remainder ($1.6 million) to state and local activities. None of this amount related to “grassroots lobbying” communications (communications directed to the general public that refer to specific legislation or regulation, reflects a view on such legislation or regulation or encourages the recipient to take action with respect to such legislation or regulation). POLITICAL ACTIVITY REPORT Fees for Direct Lobbying In 2012, CCA paid an aggregate amount of approximately $1.6 million to consultant government relations professionals for direct lobbying (as defined in Internal Revenue Code (IRC)162(e)). Of that amount, $ 0.8 million was for lobbying at the Federal level and $0.8 million was for lobbying at the state and local levels. Trade and Membership Associations, Chambers of Commerce and Other Groups CCA, its facilities and employees also are members of certain trade and membership associations, chambers of commerce and other groups. Below is a list of such organizations to which CCA paid dues or fees of $25,000 or more in 2012, of which a portion were not tax deductible as a result of being used by the organization for lobbying purposes: Table B-2 Trade Association, Membership Association & Chamber Non-Deductible Portion for Lobbying est. 35% 55% est. 10% $26,250 $13,750 $6,650 $166,500 $46,650 Total Paid Florida Chamber of Commerce US Chamber of Commerce Combined Other State & Local Chambers of Commerce % Non-Deductible for Lobbying TOTAL $75,000 $25,000 $66,500 America’s Leader in Partnership Corrections 6 CCA Political Activity and Lobbying Report 2012 Jan. 1, 2012 – Dec. 31, 2012 CCA contributes or pays dues to other tax exempt organizations that engage in advocacy or educational efforts on behalf of their constituencies. CCA has not been made aware that any dues paid by CCA are used for lobbying or other political activities. For example, CCA supported the National and Southern Governors Associations in 2012. CCA did not contribute $25,000 or more to any such organization in 2012. In 2012, CCA was not a member of any partnership corrections-related or similar trade association that engages in political activities on behalf of its members. Many CCA employees are members of the American Correctional Association (“ACA”), which is a 501(c)(3) charitable organization. CCA also pays audit and accreditation related fees to the ACA. 501(c)(3) organizations are subject to strict limitations on political activities, and CCA has not been made aware that any dues or fees paid by CCA or its member employees are used for lobbying. In connection with the company’s conversion to a real estate investment trust beginning in fiscal year 2013, CCA has become a member of NAREIT, the National Association of Real Estate Investment Trusts. 10 Burton Hills Boulevard Nashville, TN 37215 POLITICAL ACTIVITY REPORT CCA is not currently a member of the American Legislative Exchange Council (“ALEC”) or any similar organization that writes and endorses model legislation, and neither the company nor any of its employees has been a member of ALEC since 2010. For additional background, visit: http://thecca360.com. This report is not a supplement to any other report filed or required to be filed by the company with any governmental agency. To the extent the report contains information about CCA-PAC, it is not intended as a solicitation for contributions to CCA-PAC from any person. The report has not been audited and the company undertakes no obligation to issue any updates or corrections. 7 CCA Political Activity and Lobbying Report 2012 America’s Leader in Partnership Corrections Jan. 1, 2012 – Dec. 31, 2012