The political activities of TI, our officers and employees are regulated by national, state and local laws and regulations. Political activities in the U.S. are managed by Paula Collins, vice president of government relations, who reports to Terri West, senior vice president of communications and investor relations. Collins was elected as an officer by the governance and stockholder relations committee of the TI board of directors, which, pursuant to its statement of responsibilities, has oversight for and reviews the political activities of the corporation and its officers and employees. This includes review of the company's memberships in trade associations and its policy on political expenditures.
TI has well-established policies and practices that facilitate lawful participation by the company and employees in the political process. These policies and practices define both the activities in which TI engages, and the responsibilities and practices of our political action committee.
In managing its corporate political activities, TI distinguishes between the following types of corporate political activities:
As permitted by law, corporate resources are used to support lobbying activities including staffing and expenses of the TI government relations organization and other employees who engage in lobbying activities. Corporate resources are also used to hire consultants to support lobbying, pay dues for associations and membership organizations that engage in lobbying, and support lobbying coalitions created to advocate for specific public policy outcomes. A listing of TI memberships in trade associations that engage in lobbying activities in the U.S. can be found here. TI does not knowingly contribute to 501(C)(4) organizations engaged in election activities.
TI closely monitors lobby registration and reporting requirements of federal, state and local government, as well as tax laws and regulations relating to lobbying, to ensure compliance by the corporation, its officers and employees with applicable law. As required by law, TI files documentation detailing its lobbying activities with appropriate federal and state government entities.
TI provides annual (biannual in the case of Texas) training for relevant employees on their responsibilities under the Honest Leadership and Open Government Act, the Lobby Disclosure Act, the Federal Election Campaign Act, and under relevant state laws in Texas, California and Maine. This training is part of ongoing efforts to ensure that lobbying activity and funding are accounted for year-round and properly disclosed.
Each year TI's governance and shareholder relations committee reviews TI's political expenditures and confirms that its political expenditures are consistent with the company's policies.
Under applicable U.S. federal and state election laws, TI has established a segregated fund known as the Texas Instruments PAC. A board of trustees, comprised of senior TI executives and a treasurer, oversees the TI PAC's activities. The senior vice president of communications and investor relations chairs the board of trustees of the TI PAC.
The TI PAC is funded by voluntary contributions from eligible TI employees as defined under U.S. campaign finance laws. The corporation bears administrative expenses for the TI PAC, as permitted by law.
The TI PAC contributes to candidates for elective office at the federal, state and local level in the United States. Contributions to candidates are approved by the TI PAC board of trustees and are based on candidate criteria, including: integrity and character, support for pro-business policies, relevant committee assignments, leadership, representation of a district or state with a TI business operation, voting record and competitiveness of the election. The TI PAC does not contribute to national, state, or local political parties or political organizations created under 26 U.S.C §527.
TI employee participation in the TI PAC is voluntary. Employees are not pressured to make political contributions. Under no circumstances does TI or the TI PAC reimburse individuals or entities for political contributions. No political contributions, from the PAC or corporation, may be made in return for, in recognition of, or in anticipation of an official act.
The TI PAC contributions to candidates for federal, state and local office in the current election cycle can be found here. This section is updated semi-annually. As of 2013, TI's audit services team audits the PAC every two years.
As citizens, TI employees have the right to participate individually in the political process. To ensure that individual campaign activity does not inadvertently result in TI making an impermissible corporate political contribution or restrict TI's ability to do business, TI follows these policies regarding employee political activity: