,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gebe ,,in ,,the ,,house ,,of ,,representatives ,july #i1 #bjbj,mr4 ,golden introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to prohibit #eja7;c77#d7 entities from using more than #aj percent of total expenditures on certain political expenditures1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,crack ,down on ,dark ,money ,act4 #b4 ,limitation on covered political expenditures by social welfare organizations 7a7 ,in general ,section #eja7;c77#d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7,c7 7i7 ,subparagraph 7,a7 shall not apply to an entity for a taxable year if more than #aj percent of the total expenditures for the taxable year are covered political expenditures4 7ii7 ,for purposes of this subparagraph1 the term covered political expenditures means direct or indirect expenditures for an exempt function described in section #ebg7;e77#b74 7iii7 ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to prevent the avoidance of clause 7i71 including regulations relating to a direct or indirect transfer of all or part of the assets of an entity to an entity controlled 7directly or indirectly7 by the same person or persons who control the transferor entity4 4 7b7 ,expansion of political organization definition ,section #ebg7;e77#a7 of such ,code is amended by striking organized and operated primarily for the purpose of and inserting 1 unless such organization is not established under this section14 7c7 ,political intervention added ,to exempt function definition ,section #ebg7;e7 of such ,code is amended-- 7#a7 in paragraph 7#b7-- 7,a7 by striking includes the making of expenditures relating to an office described in the preceding sentence which1 if incurred by the individual1 would be allowable as a deduction under section #afb7;a74 and inserting includes-- 7,a7 the making of expenditures relating to an office described in the preceding sentence which1 if incurred by the individual1 would be allowable as a deduction under section #afb7;a71 and 7,b7 political intervention4 1 and 7,b7 by adding at the end the following new paragraph3 7#f7 ,political intervention ,the term political intervention has the meaning given to such term by section #dief4 4 7d7 ,effective date ,the amendments made by this section shall apply to contributions made in taxable years beginning after ,december #ca1 #bjbj4 #c4 ,political intervention 7a7 ,disclosure requirement ,section #fajd7;d77#c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,certain #eja7;c77#d7 organizations must disclose certain donors ,in the case of an organization described in section #eja7;c77#d7 that spends funds on political intervention 7as defined in section #dief71 such organization shall be required to disclose the name and address of any contributor donating #e1jjj or more to such organization1 and such information shall be made open to public inspection in the manner described in subsection 7a77#a77;,a74 4 7b7 ,political intervention defined ,subchapter ,c of chapter #db of subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #dief4 ,political intervention 7a7 ,political intervention defined ,for purposes of this section1 the term political intervention means 7except as provided in subsection 7b771 with respect to activities conducted by an organization in relation to ,federal1 ,state1 local1 and foreign election campaigns of candidates for public office-- 7#a7 express advocation-- 7,a7 for the election1 defeat1 nomination1 or recall of a political candidate1 7,b7 for the election or defeat of candidates affiliated with a specific political party1 7,c7 that voters select candidates for support or opposition based on one or more criteria that clearly distinguish certain candidates from other candidates1 or 7,d7 the making of contributions to a candidate's campaign1 a political party1 or 7unless the contribution is restricted so that it must not be used to support political intervention7 any other political organization within the meaning of section #ebg7;e77#a71 7#b7 communication to any part of the electorate1 other than an express advocacy communication within the meaning of clause 7i71 if the communication-- 7,a7 refers to a political candidate1 and 7,b7 reflects a view on such candidate1 and 7#c7 political use of resources4 7b7 ,exceptions ,a communication described in subsection 7a7 shall not constitute political intervention if-- 7#a7 it does not consist of paid mass media advertising1 and 7#b7 it falls under one of the following exceptions3 7,a7 ,communications to influence official action ,commentary on a public official that has a direct1 limited1 and reasonable relationship to specific actions the official may yet perform within his or her current term of office without mention of any election or voting in an election1 or of the official's candidacy or opponent4 7,b7 ,voter education ,voter education activities or the dissemination of materials that compare two or more candidates for an office1 including materials disclosing the views of the organization on political issues1 if the communication consists solely of content in which the time1 text1 or space is offered in equal shares to each of the participating candidates1 and the organization's share of content is no greater than the share available to any of the participating candidates4 ,the opportunity to participate1 including a full description of the opportunity and of the organization's share of the content1 if any1 must be given to all candidates meeting an objective threshold of viability for nomination or election to the office at least #gb hours in advance of the final preparation of the communication4 7,c7 ,self-defense communications ,a response by the organization to a public or publicly-reported statement by a candidate or candidates that either 7i7 attacks the organization itself1 or 7ii7 comments upon a specific public policy position that the organization has taken publicly in furtherance of its exempt purpose within the prior year1 or 7iii7 results in press inquiries to the organization that were not solicited subsequent to the candidate's statement by the organization4 ,the response by the organization must be educational1 limited topically to addressing the candidate's statement1 and as to 7i7 or 7ii71 disseminated in a manner commensurate in medium and scale1 and proximate in time1 to the publicity of the candidate's statement1 and as to 7iii71 limited to dissemination to the requesting press organization4 7,d7 ,personal1 oral remarks at official meetings ,oral remarks made by anyone other than a candidate who is present in person at an official meeting of an organization held in a single room or location1 so long as-- 7i7 no announcement of the meeting refers to any candidate1 party1 election1 or voting1 and 7ii7 a disclaimer is made to those in attendance1 stating that remarks are the speaker's personal opinion and are not made on behalf of the organization4 ,this exception covers only oral remarks made by and to persons in attendance1 and not any other form of communication or redistribution of those remarks1 whether written1 electronic1 recorded1 broadcast1 or otherwise transmitted4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,candidate ,the term candidate means a person who offers himself or herself for election to public office or whose election the person conducting the activity or making the expenditure in question expressly proposes1 supports1 or opposes4 7#b7 ,election ,the term election means a process culminating in a vote by the public to determine whether a candidate will serve in a public office1 including primary1 general1 special1 and runoff elections1 nominations by caucus1 convention1 or other means1 and recall and confirmation votes4 7#c7 ,paid mass media advertising 7,a7 ,in general ,the term paid mass media advertising means communication to the general public placed for a fee on one of the following media operated by another person3 a broadcast1 cable1 or satellite facility1 newspaper1 magazine1 outdoor advertising facility1 mass mailing service1 telephone bank1 or another person's website or internet communications service4 7,b7 ,mass mailing ,the term mass mailing means-- 7i7 a mailing by ,united ,states mail or facsimile1 7ii7 of more than #ejj pieces of mail matter of an identical or substantially similar nature within any #cj-;day period1 and 7iii7 that is not voter education materials4 7#d7 ,political use of resources ,the term political use of resources-- 7,a7 means-- 7i7 the provision any of an organization's resources1 tangible or intangible1 including monetary or in-kind1 goods1 services1 or facilities1 by gift1 loan1 sale1 rental1 or any other method of transfer to another person or entity1 if-- 7,i7 the transferee uses such resources to support or oppose any candidate's election to public office1 7,,ii7 such use is reasonably foreseeable1 and 7,,iii7 if the transferor has not taken reasonable steps to prevent such use1 7ii7 any other transfer that is a reportable contribution related to one or more candidates for elective public office1 to a political party1 or 7unless the transfer is restricted so that it must not be used to support political intervention7 to any other political organization within the meaning of section #ebg7;e77#a71 and 7iii7 any other use of an organization's resources in support of or opposition to a candidate1 if not specifically allowed under a ,revenue ,ruling or other ,federal tax authority1 and 7,b7 does not include a transfer that is-- 7i7 made in a transaction in which the fair market value of goods or services provided by the organization does not exceed the value of the consideration received in exchange1 7ii7 similar to other transactions conducted by the organization1 and 7iii7 without preference for or against any candidate4 7d7 ,regulations ,the ,secretary shall prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purposes of this section4 4 7c7 ,conforming amendments 7#a7 ,the heading for subchapter ,c of chapter #db of such ,code is amended by adding at the end the following3 2 political intervention4 7#b7 ,the table of sections for such subchapter ,c is amended by adding at the end the following3 ,sec4 #dief4 ,political intervention4 4 7#c7 ,the item in the table of subchapters of such chapter #db relating to subchapter ,c is amended to read as follows3 ,subchapter ,c4 ,political expenditures of section #eja7;c77#c7 organizations2 political intervention4 4 7d7 ,effective date ,the amendments made by this section shall apply to contributions made in taxable years beginning after ,december #ca1 #bjbj4