II

106TH CONGRESS

2D SESSION S. 2582

To amend section 527 of the Internal Revenue Code of 1986 to better

define the term political organization.

IN THE SENATE OF THE UNITED STATES

MAY 17, 2000

Mr. LIEBERMAN (for himself, Mr. LEVIN, Mr. DASCHLE, Mr. MCCAIN, Mr.

JEFFORDS, Mr. FEINGOLD, Mr. DURBIN, Mr. CLELAND, Mr. KERRY, Mr.

TORRICELLI, Mr. KENNEDY, Mr. AKAKA, and Mr. BRYAN) introduced the

following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend section 527 of the Internal Revenue Code of

1986 to better define the term political organization.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. DEFINITION OF POLITICAL ORGANIZATION.

4 (a) DEFINITION OF POLITICAL ORGANIZATION.—

5 Paragraph (1) of section 527(e) of the Internal Revenue

6 Code of 1986 (relating to political organizations) is

7 amended to read as follows:

8 ‘‘(1) POLITICAL ORGANIZATION.—
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•S 2582 IS

1 ‘‘(A) IN GENERAL.—The term ‘political or2 ganization’ means a party, committee, associa3 tion, fund, or other organization (whether or

4 not incorporated)—

5 ‘‘(i) organized and operated primarily

6 for the purpose of directly or indirectly ac7 cepting contributions or making expendi8 tures, or both, for an exempt function, and

9 ‘‘(ii) which is a political committee de10 scribed in section 301(4) of the Federal

11 Election Campaign Act of 1971 (2 U.S.C.

12 431(4)).

13 ‘‘(B) EXCEPTIONS.—Subparagraph (A)(ii)

14 shall not apply in the case of—

15 ‘‘(i) an organization described in sub16 paragraph (C),

17 ‘‘(ii) any committee, club, association,

18 or other group of persons (other than a

19 separate segregated fund established under

20 section 316 of the Federal Election Cam21 paign Act of 1971 (2 U.S.C. 441b)) which

22 accepts contributions or makes expendi23 tures (as defined in this subsection) during

24 a calendar year in an aggregate amount of

25 less than $1,000, or
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•S 2582 IS

1 ‘‘(iii) any local committee of a political

2 party which is not a political committee (as

3 so defined).

4 ‘‘(C) CERTAIN ORGANIZATIONS.—An orga5 nization is described in this subparagraph if—

6 ‘‘(i) the activities of the organization

7 are for the primary purpose of influencing

8 or attempting to influence—

9 ‘‘(I) the selection, nomination,

10 election, or appointment of any indi11 vidual to any State or local public of12 fice,

13 ‘‘(II) the appointment of any in14 dividual to any Federal public office,

15 or

16 ‘‘(III) the selection, nomination,

17 election, or appointment of any indi18 vidual to any office in a political orga19 nization, and

20 ‘‘(ii) the organization does not engage

21 in any activity that is for the purpose of

22 directly or indirectly influencing or at23 tempting to influence the selection, nomi24 nation, or election of any individual to any
4

•S 2582 IS

1 Federal public office or the election of

2 Presidential or Vice Presidential electors.

3 The preceding sentence shall apply whether or

4 not an individual described in subclause (I),

5 (II), or (III) of clause (i) or in clause (ii) of

6 such sentence is selected, nominated, elected, or

7 appointed to such office.’’.

8 (b) EFFECTIVE DATE.—This section and the amend9 ment made by this section take effect on the date that

10 is 30 days after the date of enactment of this Act.

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