Political Contributions & Related Activity Report. St. Jude Medical. Political Action Committee
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1 2013 Political Contributions & Related Activity Report St. Jude Medical Political Action Committee
2 2013 SJM PACBoard R achel Ellingson Vice President, Corporate Relations and SJM PAC Chair Ashli Douglas Sr. Director, Government Affairs and SJM PAC Manager Bob Frenz Assistant Treasurer and SJM PAC Treasurer Donna Stewart Sr. Supervisor, Corporate Accounting and SJM PAC Secretary Liz Porter Managing Counsel, Litigation and SJM PAC Counsel Mark Carlson Vice President, Global Clinical Affairs and Chief Medical Officer (CMO) Dave Hendrick Sr. Vice President, Sales Operations Bill Little Vice President, Global Product Marketing 2
3 From the Chair As a leader in medical device innovation, St. Jude Medical recognizes that our health care system continues to face unprecedented changes that directly impact our industry. Public policy decisions have a significant impact on the global health care community, and we need to remain vigilant in educating and advocating for both the company and the medical device industry. To that end, we support the development of sound public policy through direct advocacy, lawful corporate contributions and sponsorship of the St. Jude Medical Political Action Committee (SJM PAC). The SJM PAC seeks to educate and mobilize employee political involvement and to support candidates that advance legislation important to St. Jude Medical s growth and development as a medical device manufacturer. St. Jude Medical pays the PAC s administrative costs as allowed by law, but all SJM PAC contributions are funded through the voluntary support of eligible St. Jude Medical employees. In 2013, St. Jude Medical spent $38,000 on state lobbying activities and $620,000 on federal lobbying activities. Also in 2013, the SJM PAC made $90,000 in political contributions. St. Jude Medical works in collaboration with many coalitions and partnerships to effectively advocate our business objectives, navigate the complex health care industry and identify the positive and negative effects proposed legislation could have. Additionally, our government affairs team is actively engaged with lawmakers at the federal level, and in our core business states. Further details about these political contributions and lobbying activities are contained within this report. Rachel Ellingson Vice President, Corporate Relations and SJM PAC Chair 3
4 Political Contributions Policy and Procedure As a leading medical device manufacturer, St. Jude Medical plays a key role in improving the public policy environment by supporting elected officials who understand our business and how proposed legislation affects our complex and highly regulated industry. Our active participation in the political process is essential to ensure we have a voice in critical decisions that shape federal and state legislation that will ultimately support the advancement of medical technology and our industry. We support the development of public policy through direct advocacy, lawful corporate contributions and sponsorship of the St. Jude Medical Political Action Committee (SJM PAC), the nonpartisan political action committee of St. Jude Medical employees. SJM PAC Contributions Federal law prohibits corporations, such as St. Jude Medical, from making any direct monetary contributions to federal candidates. St. Jude Medical provides an opportunity for eligible St. Jude Medical employees to participate in the political process by sponsoring the nonpartisan SJM PAC. This allows employees to voluntarily combine personal funds to support federal and state candidates. The SJM PAC maintains a list of the group of employees eligible to participate in the SJM PAC and solicits the group once annually. The SJM PAC contributes to existing Members of Congress who are running for reelection as well as to certain coalitions and committees. The SJM PAC contributes to both Republicans and Democrats. In general, the PAC contributes to Members where St. Jude Medical has a physical presence in the state or district, a Member who has primary jurisdiction over issues affecting the company, or Members who have championed policies that support the company s goals. The SJM PAC does not currently support contributions to Presidential elections, local or state elections. SJM PAC contributions are made in consultation with the SJM PAC Board, which reviews the proposed contribution list and makes recommendations on future solicitations and employee engagement. Information about the SJM PAC s contributions may be found on the Federal Election Commission s web site at 4
5 2013 SJM Corporate Political Contributions & Other Expenditures Corporate Contributions While federal law prohibits St. Jude Medical from making direct corporate contributions to federal candidates, St. Jude Medical may direct contributions to support state candidates in states where such corporate contributions are allowed by law and may make indirect contributions, such as hosting a reception and paying expenses associated with an event. Corporate contributions will promote the interests of the company and will be made without regard for the private political preferences of executives. Corporate Contributions to State Candidates, Parties or PACs (CA) California Healthcare Institute PAC * $6,500 Other Expenditures Ballot Initiatives $0 527 Organizations $0 Independent Expenditures $0 The Vice President of Corporate Relations of the company must approve each corporate contribution. In making contributions, St. Jude Medical complies with all disclosure requirements as prescribed by state and federal law. *Contribution was made 12/26/2012 5
6 Lobbying Activity St. Jude Medical engages in lobbying activity to advocate the company s positions on public policy issues with elected officials in federal and state government. In particular, St. Jude Medical supports public policies that enhance patient access to highquality and cost-effective health care. The company supports key systemic changes that will achieve critical efficiencies and improve patient care, including coordination of care, preventive health measures and comparative effectiveness research. In 2013, St. Jude Medical spent $38,000 on state lobbying activities * and $620,000 for federal lobbying activities. ** St. Jude Medical submits quarterly reports disclosing its U.S. lobbying activities and support for specific legislation that promotes medical technology innovation, patient access and other relevant issues. The reports are available at Also, click here to be linked directly to St. Jude Medical s 2013 quarterly lobbying reports. In 2013, St. Jude Medical paid dues to associations and coalitions of which a portion may be allocated to non-deductible lobbying activity. St. Jude Medical works in collaboration with coalitions, societies and trade associations to advocate and support health care policies related to reimbursement, regulatory approvals and post-market surveillance, and procurement and pricing regarding medical technology therapies. Below is a list of the national, state and business trade associations and coalitions whose dues were $10,000 or more for 2013, and include a portion of dues allocated to non-deductible lobbying activity. Portion Allocated to Association Total Dues Non-Deductible Lobbying * ** Advanced Medical Technology Association (AdvaMed) $612,900 $ 33,710 California Healthcare Institute, Inc. (CHI) $ 57,750 $ 14,438 LifeScience Alley $ 18,000 $ 2,700 Medical Device Competitiveness Coalition $ 48,000 $48,000 HR Policy Association $ 12,000 $ 7,200 * State laws vary on how they define lobbying activity, expenses and what is reportable. For purposes of this report, state lobbying expenses include applicable percents of employee compensation and overhead and outside lobbying consultant fees. ** Federal lobbying expenses are reported as required by the Lobbying Disclosure Act of 1995 and the Honest Leadership and Open Government Act of
7 2013 SJM PAC Statements of Cash Receipts & Expenditures SJM PAC Cash Balance January 1, 2013 $43, Receipts Employee Contributions $96, Other $0.00 Total Receipts $96, Expenditures Federal Contributions $90, State Contributions $0.00 Operating Expenses $0.00 Other Expenses $0.00 Total Expenditures $90, Cash Balance December 31, 2013 $50,
8 2013 Year-End Contribution & Related Activity Report SJM PAC Contributions to Federal Candidates United States Senate Member State District Amount Chris Murphy CT n/a $1,000 Chris Coons DE n/a $2,500 Johnny Isakson GA n/a $1,000 Joe Donnelly IN n/a $1,000 Pat Roberts KS n/a $2,000 Mitch McConnell KY n/a $5,000 Al Franken MN n/a $2,000 Kay Hagan NC n/a $3,000 Richard Burr NC n/a $1,000 Rob Portman OH n/a $3,000 Pat Toomey PA n/a $1,000 Tim Scott SC n/a $5,000 Lindsey Graham SC n/a $1,000 John Thune SD n/a $1,000 Lamar Alexander TN n/a $2,000 John Cornyn TX n/a $2,000 Orrin Hatch UT n/a $2,000 Patty Murray WA n/a $1,000 John Barrasso WY n/a $1,000 United States House of Representatives Member State District Amount Ami Bera CA 7 $2,000 Kevin McCarthy CA 23 $1,000 Tony Cárdenas CA 29 $5,000 Scott Peters CA 52 $2,500 Susan Davis CA 53 $1,000 Diane DeGette CO 1 $1,000 John Shimkus IL 15 $2,000 Mike Pompeo KS 4 $1,000 Brett Guthrie KY 2 $2,500 Charles Boustany LA 3 $2,000 Richard Neal MA 1 $1,000 Dave Camp MI 4 $1,000 Fred Upton MI 6 $1,000 Mike Rogers MI 8 $1,000 Erik Paulsen MN 3 $5,000 Betty McCollum MN 4 $2,500 Pat Tibieri OH 12 $1,000 Mike Kelly PA 3 $1,000 Allyson Scwartz PA 13 $1,000 Joe Pitts PA 16 $1,000 Jeff Duncan SC 3 $4,500 Diane Black TN 6 $1,000 Marsha Blackburn TN 7 $2,500 Sam Johnson TX 3 $1,000 Michael Burgess TX 26 $1,000 Jim Matheson UT 4 $4,000 Ron Kind WI 3 $1,000 SJM PAC Contributions to Federal and State PACs and Party Committees PAC Name State District Amount Federal PACs AdvaMed PAC n/a n/a $2,000 State PACs No contributions in 2013 Party Committees No contributions in
9 St. Jude Medical, Inc. Global Headquarters One St. Jude Medical Drive St. Paul, Minnesota USA Fax St. Jude Medical International Division One Lillehei Plaza St. Paul, Minnesota USA Fax St. Jude Medical S.C., Inc. Americas Division 6300 Bee Cave Road Bldg. Two, Suite 100 Austin, TX USA Fax SJM Coordination Center BVBA The Corporate Village Da Vincilaan 11-Box F1 B-1935 Zaventem, Belgium Fax St. Jude Medical Brasil Ltda. Rua Itapeva, 538 5º ao 8º andares São Paulo SP Brazil Fax St. Jude Medical (Hong Kong) Ltd. Suite 1608, 16/F Exchange Tower 33 Wang Chiu Road Kowloon Bay, Kowloon Hong Kong SAR Fax St. Jude Medical Japan Co., Ltd. Shiodome City Center 15F Higashi Shinbashi, Minato-ku Tokyo Japan Fax sjm.com
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