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      FEC Record: Advisory opinions
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      AO 2012-35: Wireless group may forward text contributions

FEC Record: Advisory opinionsAO 2012-35: Wireless group may forward text contributionsJanuary 3, 2013 An e-commerce transaction company may receive small-dollar contributions initiated via text message and paid for by credit or debit card, deduct its fee and forward the net amount to its political committee customers. **Background** Global Transaction Services Group, Inc. (“GTSG”) is an incorporated technology company that processes mobile payments to wireless customers. GTSG would like to enable wireless users to make contributions of $50 or less to political committees initiated
    via text messages. Contributors would be asked to verify their legal eligibility and intention to contribute, then the company would charge the donor’s credit or debit card, deduct its fee and forward the net amount to the recipient committee. The
    company will not allow a donor to contribute more than $50 to any committee during a calendar year. **Analysis** GTSG’s request raises three issues under the Act and Commission regulations relating to the receipt and forwarding of contributions for political committees: (1) whether the contributions received for political committees are timely forwarded; (2) whether
    contributor information must be forwarded for contributions of $50 or less; and (3) whether the requestor will properly account for political contributions deposited by GTSG before they are forwarded to recipient political committees. Under the Act and Commission regulations, persons receiving credit or debit card contributions on behalf of a campaign committee must forward the funds to the committee within 10 days of the cardholder authorizing the charge. 2 U.S.C. §432(b)(1); 11 CFR
    102.8(a).  Contributions to other committees must be forwarded within 10 days if the amount is greater than $50 or within 30 days if the contribution is $50 or less. 2 U.S.C.§432(b)(2)(A); 11 CFR 102.8(b)(1); see also AO 2012-17 (Red Blue T LLC, ArmourMedia, Inc. and m-Qube, Inc.) (citing AO 1990-04 (American Veterinary Medical Association and AVMA Political
    Action Committee). If a donor gives more than $50, the recipient committee must receive and record the name, address, date and amount of the contribution. 2 U.S.C. § 432(b)(1) and (2)(B); 11 CFR 102.8(a) and (b)(2). Additionally, corporate intermediaries—like
    GTSG—must charge for their services and must account for the contributed funds separately to ensure they avoid making a prohibited corporate contribution. See 2 U.S.C. § 44lb; 11 CFR 114.2(b); AOs 2012-30 (Revolution Messaging, LLC) and 1999-22 (Aristotle Publishing, Inc.). GTSG’s proposal complies with all of these requirements. The company will forward all contributions to its political committee customers within seven days, within the established timelines. Additionally, GTSG proposes to forward to the recipient political
    committees, among other information, the wireless user’s ten-digit phone number, name, address, and last four digits of his or her credit or debit card. This proposal satisfies the Act and Commission regulations.  Finally, GTSG will track contributions
    using the short code and unique keyword associated with each recipient committee and will deposit contributions into separate bank accounts. These measures avoid the possibility of a prohibited corporate contribution. Date issued: December 20, 2012; 6 pages **Resources:** Commission  consideration of advisory opinion 2012-35 [mp3]
    Advisory opinion 2012-35
    Article: Contributions by text message
 Author
          Alex  Knott


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This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


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