Text of Proposed Revisions to Campaign Finance Reform Legislation

OMB Watch's proposed campaign finance reform language to protect the advocacy rights of charities. A. Option 1: General Exceptions to Issue Advocacy Prohibitions for Nonpartisan Candidate Debates and Forums, Voter Registration and Get Out the Vote Activity and Non-Electoral Issue Advocacy by Charities Purpose: To encourage greater participation in the electoral system on a nonpartisan basis, make impartial information about candidates available to voters and avoid prohibitions on non-electoral public education and grassroots lobbying activities of charities so that all sectors have a meaningful opportunity to participate in the democratic process. S. 27 McCain-Feingold, Title II, Subtitle A, Section 201: On page 19, line 11, strike "or", and On page 19, line 14, strike "." and insert the following: "; or "(iii) a communication which is made by an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code and which does not constitute participation in, or intervention in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition) to any candidate for public office under section 501(c)(3) of such Code." H.R. 380 Shays-Meehan: In Title II, Section 201(b) Definition of Express Advocacy, amending Section 301 of FECA, under (20) Express Advocacy, add: "(C) CHARITABLE ORGANIZATIONS EXCEPTION-The term 'express advocacy' does not include a communication that-- (i) is made by an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; (ii) does not constitute participation in, or intervention in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition) to any candidate for public office under section 501(c)(3) of the Internal Revenue Code of 1986; (iii) is not coordinated activity or is not made in coordination with a candidate, political party, or agent of the candidate or party, or a candidate's agent or person who is coordinating with a candidate or a candidate's agent, except that nothing in this clause may be construed to prevent the sponsor of the communication from directing questions in writing to a candidate about the candidate's position on issues for purposes of preparing a voter guide or to prevent the candidate from responding in writing to such questions; and (iv) does not contain a phrase such as "vote for", "re-elect", "support", "cast your ballot for", "(name of candidate) for Congress", "(name of candidate) in (year)", "vote against", "defeat", or "reject", or a campaign slogan or words that in context can have no reasonable meaning other than to urge the election or defeat of one or more clearly identified candidates." B. Option 2: Specific Exceptions to Protect Nonpartisan Activity by Charities 1. Exception for Nonpartisan Candidate Debates and Forums Purpose: To allow airing of nonpartisan candidate debates and forums so that voters have access to impartial information about candidates during the election season. S. 27 McCain-Feingold, Title II, Subtitle A, Section 201: On page 19, line 11, strike "or", and On page 19, line 14, strike "." and insert the following: "; or "(iii) a communication by or on behalf of an organization described in section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986 which constitutes a candidate debate permitted to be staged by such an organization pursuant to regulations adopted by the Federal Election Commission, or a communication which notifies the public about such a debate." H.R. 380 Shays-Meehan: In Title II, Section 201(b) Definition of Express Advocacy, amending Section 301 of FECA, under (20) Express Advocacy, add: "(C) NONPARTISAN CANDIDATE DEBATE AND FORUM EXCEPTION.- The term "express advocacy" does not include a communication by or on behalf of an organization described in section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986 which constitutes a candidate debate permitted to be staged by such an organization pursuant to regulations adopted by the Federal Election Commission, or a communication which notifies the public about such a debate." 2. Exception for Nonpartisan Voter Registration and Get Out the Vote Activity Purpose: To allow continuation of nonpartisan efforts to increase voter participation during a federal election cycle consistent with standards applicable to nonprofit organizations exempt under Section 501(c)(3) of the Internal Revenue Code. S. 27 McCain-Feingold, Title II, Subtitle A, Section 201: On page 19, between lines 14 and 15, insert the following: Option 1: "(iv) communications that urge people to register or to vote that are not a coordinated expenditure or other disbursement and are consistent with the requirements for such activities that apply under section 501(c)(3) of the Internal Revenue Code of 1986 to organizations exempt from taxation under section 501(c)(3) of such Code." Option 2: "(iv) nonpartisan voter registration and get out the vote communications whose content is limited to encouragement to vote and the choice of audience is not designed to promote or advance one candidate over another." H.R. 380 Shays-Meehan: In Title II, Section 201(b) Definition of Express Advocacy, amending Section 301 of FECA, under (20) Express Advocacy, add: Option 1: "(D) NONPARTISAN VOTER REGISTRATION AND GET OUT THE VOTE ACTIVITY EXCEPTION- The term "express advocacy" does not include a communication that urges people to register or to vote and is not a coordinated activity, is not made in coordination with a candidate, political party, or agent of the candidate or party, or a candidate's agent or a person who is coordinating with a candidate or a candidate's agent, and is consistent with the requirements for such activities that apply under section 501(c)(3) of the Internal Revenue Code of 1986 to organizations exempt from taxation under section 501(c)(3) of such Code." Option 2: "(D) NONPARTISAN VOTER REGISTRATION AND GET OUT THE VOTE ACTIVITY EXCEPTION- The term "express advocacy" does not include a nonpartisan communication that urges people to register or to vote and is not a coordinated activity, is not made in coordination with a candidate, political party, or agent of the candidate or party, or a candidate's agent or a person who is coordinating with a candidate or a candidate's agent, and whose content is limited to encouragement to vote and the choice of audience is not designed to promote or advance one candidate over another." 3. Exception for Non-Electoral Public Education and Grassroots Lobbying Communications Purpose: To allow for continuation of ongoing public education and legislative advocacy efforts of nonprofit organizations that are intended to inform or influence public opinion on issues or to influence the decisions of legislative bodies on specific legislative proposals. S. 27 McCain-Feingold, Title II, Subtitle A, Section 201: On page 17, strike lines 21 through 23 and insert the following: "(A)(i) IN GENERAL.-"The term "electioneering communication" means any paid advertisement transmitted over broadcast, cable or satellite communications which-". NOTE: This provision makes the definition consistent with Shays-Meehan and narrows the prohibition to the kind of broadcast communications that have been the source of the problem- paid advertising. On page 19, between lines 14 and 15, insert the following: "(v) public education and grassroots lobbying communications as defined in section 501(h) of the Internal Revenue Code that do not directly or indirectly support or oppose candidates for federal office and do not, when taken as a whole and with limited reference to external events, imply support or opposition to candidates." H.R. 380 Shays-Meehan: In Title II, Section 201(b) Definition of Express Advocacy, amending Section 301 of FECA, under (20) Express Advocacy, add: "(D) PUBLIC EDUCATION AND GRASSROOTS LOBBYING EXCEPTION- public education and grassroots lobbying communications as defined in section 501(h) of the Internal Revenue Code of 1986 that do not directly or indirectly support or oppose candidates for federal office and do not, when taken as a whole and with limited reference to external events, imply support or opposition to candidates." NOTE: The definition of grassroots lobbying in broadcast media under the section 501(h) regulations is very specific, including any communication to the general public that refers to specific legislation, reflects a view on the legislation and asks the public to contact legislators to support that view, or provides legislative contact information. In addition, ads broadcast in mass media within two weeks of a vote on the same subject as highly publicized legislation are considered grassroots lobbying, even if the legislation is not mentioned and no call to action is included. C. Coordination with Internal Revenue Code Purpose: To prevent the bills from inadvertently interfering with the long-standing and well-developed definitions of political activity under the Internal Revenue Code. S. 27 McCain-Feingold, Title II, Subtitle A, Section 201: On page 20, between lines 8 and 9, insert the following: "(7) COORDINATION WITH INTERNAL REVENUE CODE.-Nothing in this subsection is intended to describe the definition of political or electioneering activities (including but not limited to the definition of participating in, intervening in, influencing or attempting to influence, a political campaign on behalf of, or in opposition to, any candidate for public office) under the Internal Revenue Code of 1986." H.R. 380 Shays-Meehan: In Title II, Section 201(b) Definition of Express Advocacy, amending Section 301 of FECA, under (20) Express Advocacy, add: (D) COORDINATION WITH INTERNAL REVENUE CODE-Nothing in this subsection is intended to describe the definition of political or electioneering activities (including but not limited to the definition of participating in, intervening in, influencing or attempting to influence, a political campaign on behalf of, or in opposition to, any candidate for public office) under the Internal Revenue Code of 1986. NOTE: The staff working on S. 27 developed this language but it did not make it into the version of S.27 passed by the Senate. D. Exception for 501(c)(4) and 527 Organizations Purpose: To reinstate the exception in McCain-Feingold for broadcast communications by social welfare organizations and political committees that permits "electioneering communications" but imposes disclosure requirements and funding source limitations, making the bills consistent with the Supreme Court's decision in FEC v. Massachusetts Citizens for Life. McCain-Feingold: Title II, Subtitle A- Delete Section 204.
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