IB 
Union Calendar No. 113 
109TH CONGRESS 
1ST SESSION 
H. R. 513 
[Report No. 109–181] 
To amend the Federal Election Campaign Act of 1971 to clarify when 
organizations described in section 527 of the Internal Revenue Code 
of 1986 must register as political committees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2005 
Mr. SHAYS (for himself and Mr. MEEHAN) introduced the following bill; which 
was referred to the Committee on House Administration 
JULY 22, 2005 
Additional sponsors: Mr. CASTLE, Mr. BASS, Mr. BOYD, Mr. LEWIS of 
Georgia, Mr. SIMMONS, and Mr. OBERSTAR 
Deleted sponsors: Mr. BISHOP of New York (added February 17, 2005; de-
leted April 13, 2005), Mr. MCNULTY (added April 6, 2005; deleted May 
3, 2005), Mr. BECERRA (added April 6, 2005; deleted April 28, 2005), 
and Ms. LEE (added April 27, 2005; deleted May 5, 2005) 
JULY 22, 2005 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on February 2, 2005] 
A BILL 
To amend the Federal Election Campaign Act of 1971 to 
clarify when organizations described in section 527 of
the Internal Revenue Code of 1986 must register as 
political committees, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘527 Reform Act of 
2005’’. 
SEC. 2. TREATMENT OF SECTION 527 ORGANIZATIONS. 
(a) DEFINITION OF POLITICAL COMMITTEE.—Section 
301(4) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(4)) is amended— 
(1) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; or’’; and 
(2) by adding at the end the following: 
‘‘(D) any applicable 527 organization.’’. 
(b) DEFINITION
OF
APPLICABLE
527 ORGANIZA-
TION.—Section 301 of such Act (2 U.S.C. 431) is amended 
by adding at the end the following new paragraph: 
‘‘(27) APPLICABLE 527 ORGANIZATION.— 
‘‘(A) IN GENERAL.—For purposes of paragraph 
(4)(D), the term ‘applicable 527 organization’ means 
a committee, club, association, or group of persons 
that— 
‘‘(i) has given notice to the Secretary of the 
Treasury under section 527(i) of the Internal 
Revenue Code of 1986 that it is to be treated as
an organization described in section 527 of such 
Code; and 
‘‘(ii) is not described in subparagraph (B). 
‘‘(B) EXCEPTED ORGANIZATIONS.—A committee, 
club, association, or other group of persons described 
in this subparagraph is—
‘‘(i) an organization described in section 
527(i)(5) of the Internal Revenue Code of 1986; 
‘‘(ii) an organization which is a committee, 
club, association or other group of persons that 
is organized, operated, and makes disbursements 
exclusively for paying expenses described in the 
last sentence of section 527(e)(2) of the Internal 
Revenue Code of 1986 or expenses of a newsletter 
fund described in section 527(g) of such Code; 
‘‘(iii) an organization which is a com-
mittee, club, association, or other group that con-
sists solely of candidates for State or local office, 
individuals holding State or local office, or any 
combination of either, but only if the organiza-
tion refers only to one or more non-Federal can-
didates or applicable State or local issues in all 
of its voter drive activities and does not refer to 
a Federal candidate or a political party in any 
of its voter drive activities; or
‘‘(iv) an organization described in subpara-
graph (C). 
‘‘(C) APPLICABLE ORGANIZATION.—For purposes 
of subparagraph (B)(iv), an organization described in 
this subparagraph is a committee, club, association, 
or other group of persons whose election or nomina-
tion activities relate exclusively to—
‘‘(i) elections where no candidate for Fed-
eral office appears on the ballot; or 
‘‘(ii) one or more of the following purposes: 
‘‘(I) Influencing the selection, nomina-
tion, election, or appointment of one or 
more candidates to non-Federal offices. 
‘‘(II) Influencing one or more applica-
ble State or local issues. 
‘‘(III) Influencing the selection, ap-
pointment, nomination, or confirmation of 
one or more individuals to non-elected of-
fices. 
‘‘(D) EXCLUSIVITY TEST.—A committee, club, as-
sociation, or other group of persons shall not be treat-
ed as meeting the exclusivity requirement of subpara-
graph (C) if it makes disbursements aggregating more 
than $1,000 for any of the following:
‘‘(i) A public communication that promotes, 
supports, attacks, or opposes a clearly identified 
candidate for Federal office during the 1-year 
period ending on the date of the general election 
for the office sought by the clearly identified can-
didate (or, if a runoff election is held with re-
spect to such general election, on the date of the 
runoff election). 
‘‘(ii) Any voter drive activity during a cal-
endar year, except that no disbursements for any 
voter drive activity shall be taken into account 
under this subparagraph if the committee, club, 
association, or other group of persons during 
such calendar year—
‘‘(I) makes disbursements for voter 
drive activities with respect to elections in 
only 1 State and complies with all applica-
ble election laws of that State, including 
laws related to registration and reporting 
requirements and contribution limitations; 
‘‘(II) refers to one or more non-Federal 
candidates or applicable State or local 
issues in all of its voter drive activities and 
does not refer to any Federal candidate or
any political party in any of its voter drive 
activities; 
‘‘(III) does not have a candidate for 
Federal office, an individual who holds any 
Federal office, a national political party, or 
an agent of any of the foregoing, control or 
materially participate in the direction of 
the organization, solicit contributions to the 
organization (other than funds which are 
described under clauses (i) and (ii) of sec-
tion 323(e)(1)(B)), or direct disbursements, 
in whole or in part, by the organization; 
and 
‘‘(IV) makes no contributions to Fed-
eral candidates. 
‘‘(E) CERTAIN REFERENCES TO FEDERAL CAN-
DIDATES NOT TAKEN INTO ACCOUNT.—For purposes of 
subparagraphs (B)(iii) and (D)(ii)(II), a voter drive 
activity shall not be treated as referring to a clearly 
identified Federal candidate if the only reference to 
the candidate in the activity is—
‘‘(i) a reference in connection with an elec-
tion for a non-Federal office in which such Fed-
eral candidate is also a candidate for such non-
Federal office; or
‘‘(ii) a reference to the fact that the can-
didate has endorsed a non-Federal candidate or 
has taken a position on an applicable State or 
local issue, including a reference that constitutes 
the endorsement or position itself. 
‘‘(F) CERTAIN REFERENCES TO POLITICAL PAR-
TIES NOT TAKEN INTO ACCOUNT.—For purposes of 
subparagraphs (B)(iii) and (D)(ii)(II), a voter drive 
activity shall not be treated as referring to a political 
party if the only reference to the party in the activity 
is—
‘‘(i) a reference for the purpose of identi-
fying a non-Federal candidate; 
‘‘(ii) a reference for the purpose of identi-
fying the entity making the public communica-
tion or carrying out the voter drive activity; or 
‘‘(iii) a reference in a manner or context 
that does not reflect support for or opposition to 
a Federal candidate or candidates and does re-
flect support for or opposition to a State or local 
candidate or candidates or an applicable State 
or local issue. 
‘‘(G) APPLICABLE STATE OR LOCAL ISSUE.—For 
purposes of this paragraph, the term ‘applicable State 
or local issue’ means any State or local ballot initia-
tive, State or local referendum, State or local con-
stitutional amendment, State or local bond issue, or 
other State or local ballot issue.’’. 
(c) DEFINITION OF VOTER DRIVE ACTIVITY.—Section 
301 of such Act (2 U.S.C. 431), as amended by subsection 
(b), is further amended by adding at the end the following 
new paragraph: 
‘‘(28) VOTER DRIVE ACTIVITY.—The term ‘voter drive 
activity’ means any of the following activities conducted in 
connection with an election in which a candidate for Fed-
eral office appears on the ballot (regardless of whether a 
candidate for State or local office also appears on the bal-
lot): 
‘‘(A) Voter registration activity. 
‘‘(B) Voter identification. 
‘‘(C) Get-out-the-vote activity. 
‘‘(D) Generic campaign activity. 
‘‘(E) Any public communication related to ac-
tivities described in subparagraphs (A) through (D). 
Such term shall not include any activity described in sub-
paragraph (A) or (B) of section 316(b)(2).’’. 
(d) REGULATIONS.—The Federal Election Commission 
shall promulgate regulations to implement this section not 
later than 60 days after the date of enactment of this Act.
(e) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date which is 60 days after 
the date of enactment of this Act. 
SEC. 3. RULES FOR ALLOCATION OF EXPENSES BETWEEN 
FEDERAL AND NON-FEDERAL ACTIVITIES. 
(a) IN GENERAL.—Title III of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 325. ALLOCATION AND FUNDING RULES FOR CERTAIN 
EXPENSES RELATING TO FEDERAL AND NON-
FEDERAL ACTIVITIES. 
‘‘(a) IN GENERAL.—In the case of any disbursements 
by any political committee that is a separate segregated 
fund or nonconnected committee for which allocation rules 
are provided under subsection (b)—
‘‘(1) the disbursements shall be allocated between 
Federal and non-Federal accounts in accordance with 
this section and regulations prescribed by the Com-
mission; and 
‘‘(2) in the case of disbursements allocated to 
non-Federal accounts, may be paid only from a quali-
fied non-Federal account. 
‘‘(b) COSTS
TO BE ALLOCATED
AND ALLOCATION 
RULES.—
‘‘(1) IN GENERAL.—Disbursements by any sepa-
rate segregated fund or nonconnected committee, other 
than an organization described in section 323(b)(1), 
for any of the following categories of activity shall be 
allocated as follows: 
‘‘(A) 100 percent of the expenses for public 
communications or voter drive activities that 
refer to one or more clearly identified Federal 
candidates, but do not refer to any clearly iden-
tified non-Federal candidates, shall be paid with 
funds from a Federal account, without regard to 
whether the communication refers to a political 
party. 
‘‘(B) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the expenses for public communications 
and voter drive activities that refer to one or 
more clearly identified candidates for Federal of-
fice and one or more clearly identified non-Fed-
eral candidates shall be paid with funds from a 
Federal account, without regard to whether the 
communication refers to a political party. 
‘‘(C) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the expenses for public communications
or voter drive activities that refer to a political 
party, but do not refer to any clearly identified 
Federal or non-Federal candidate, shall be paid 
with funds from a Federal account, except that 
this paragraph shall not apply to communica-
tions or activities that relate exclusively to elec-
tions where no candidate for Federal office ap-
pears on the ballot. 
‘‘(D) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the expenses for public communications 
or voter drive activities that refer to a political 
party and refer to one or more clearly identified 
non-Federal candidates, but do not refer to any 
clearly identified Federal candidates, shall be 
paid with funds from a Federal account, except 
that this paragraph shall not apply to commu-
nications or activities that relate exclusively to 
elections where no candidate for Federal office 
appears on the ballot. 
‘‘(E) Unless otherwise determined by the 
Commission in its regulations, at least 50 per-
cent of any administrative expenses, including 
rent, utilities, office supplies, and salaries not 
attributable to a clearly identified candidate,
shall be paid with funds from a Federal account, 
except that for a separate segregated fund such 
expenses may be paid instead by its connected 
organization. 
‘‘(F) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the direct costs of a fundraising pro-
gram or event, including disbursements for solic-
itation of funds and for planning and adminis-
tration of actual fundraising events, where Fed-
eral and non-Federal funds are collected through 
such program or event shall be paid with funds 
from a Federal account, except that for a sepa-
rate segregated fund such costs may be paid in-
stead by its connected organization. This para-
graph shall not apply to any fundraising solici-
tations or any other activity that constitutes a 
public communication. 
‘‘(2) CERTAIN REFERENCES TO FEDERAL CAN-
DIDATES NOT TAKEN INTO ACCOUNT.—For purposes of 
paragraph (1), a public communication or voter drive 
activity shall not be treated as referring to a clearly 
identified Federal candidate if the only reference to 
the candidate in the communication or activity is—
‘‘(A) a reference in connection with an elec-
tion for a non-Federal office in which such Fed-
eral candidate is also a candidate for such non-
Federal office; or 
‘‘(B) a reference to the fact that the can-
didate has endorsed a non-Federal candidate or 
has taken a position on an applicable State or 
local issue (as defined in section 301(27)(G)), in-
cluding a reference that constitutes the endorse-
ment or position itself. 
‘‘(3) CERTAIN REFERENCES TO POLITICAL PAR-
TIES NOT TAKEN INTO ACCOUNT.—For purposes of 
paragraph (1), a public communication or voter drive 
activity shall not be treated as referring to a political 
party if the only reference to the party in the commu-
nication or activity is—
‘‘(A) a reference for the purpose of identi-
fying a non-Federal candidate; 
‘‘(B) a reference for the purpose of identi-
fying the entity making the public communica-
tion or carrying out the voter drive activity; or 
‘‘(C) a reference in a manner or context 
that does not reflect support for or opposition to 
a Federal candidate or candidates and does re-
flect support for or opposition to a State or local
candidate or candidates or an applicable State 
or local issue. 
‘‘(c) QUALIFIED NON-FEDERAL ACCOUNT.—
‘‘(1) IN GENERAL.—For purposes of this section, 
the term ‘qualified non-Federal account’ means an ac-
count which consists solely of amounts—
‘‘(A) that, subject to the limitations of para-
graphs (2) and (3), are raised by the separate 
segregated fund or nonconnected committee only 
from individuals, and 
‘‘(B) with respect to which all requirements 
of Federal, State, or local law (including any 
law relating to contribution limits) are met. 
‘‘(2) LIMITATION ON INDIVIDUAL DONATIONS.—
‘‘(A) IN GENERAL.—A separate segregated 
fund or nonconnected committee may not accept 
more than $25,000 in funds for its qualified 
non-Federal account from any one individual in 
any calendar year. 
‘‘(B) AFFILIATION.—For purposes of this 
paragraph, all qualified non-Federal accounts of 
separate segregated funds or nonconnected com-
mittees which are directly or indirectly estab-
lished, financed, maintained, or controlled by the
same person or persons shall be treated as one 
account. 
‘‘(3) FUNDRAISING LIMITATION.—
‘‘(A) IN GENERAL.—No donation to a quali-
fied non-Federal account may be solicited, re-
ceived, directed, transferred, or spent by or in the 
name of any person described in subsection (a) 
or (e) of section 323. 
‘‘(B) FUNDS NOT TREATED AS SUBJECT TO 
ACT.—Except as provided in subsection (a)(2) 
and this subsection, any funds raised for a 
qualified non-Federal account in accordance 
with the requirements of this section shall not be 
considered funds subject to the limitations, pro-
hibitions, and reporting requirements of this Act 
for any purpose (including for purposes of sub-
section (a) or (e) of section 323 or subsection 
(d)(1) of this section). 
‘‘(d) DEFINITIONS.—
‘‘(1) FEDERAL ACCOUNT.—The term ‘Federal ac-
count’ means an account which consists solely of con-
tributions subject to the limitations, prohibitions, and 
reporting requirements of this Act. Nothing in this 
section or in section 323(b)(2)(B)(iii) shall be con-
strued to infer that a limit other than the limit under
section 315(a)(1)(C) applies to contributions to the 
account. 
‘‘(2) NONCONNECTED
COMMITTEE.—The term 
‘nonconnected committee’ shall not include a political 
committee of a political party. 
‘‘(3) VOTER DRIVE ACTIVITY.—The term ‘voter 
drive activity’ has the meaning given such term in 
section 301(28).’’. 
(b) REPORTING REQUIREMENTS.—Section 304(e) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 
434(e)) is amended—
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5); and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) RECEIPTS
AND
DISBURSEMENTS
FROM 
QUALIFIED NON-FEDERAL ACCOUNTS.—In addition to 
any other reporting requirement applicable under this 
Act, a political committee to which section 325(a) ap-
plies shall report all receipts and disbursements from 
a qualified non-Federal account (as defined in section 
325(c)).’’. 
(c) REGULATIONS.—The Federal Election Commission 
shall promulgate regulations to implement the amendments
made by this section not later than 180 days after the date 
of enactment of this Act. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date which is 180 days after 
the date of enactment of this Act. 
SEC. 4. CONSTRUCTION. 
No provision of this Act, or amendment made by this 
Act, shall be construed—
(1) as approving, ratifying, or endorsing a regu-
lation promulgated by the Federal Election Commis-
sion; 
(2) as establishing, modifying, or otherwise af-
fecting the definition of political organization for 
purposes of the Internal Revenue Code of 1986; or 
(3) as affecting the determination of whether a 
group organized under section 501(c) of the Internal 
Revenue Code of 1986 is a political committee under 
section 301(4) of the Federal Election Campaign Act 
of 1971. 
SEC. 5. JUDICIAL REVIEW. 
(a) SPECIAL RULES FOR ACTIONS BROUGHT ON CON-
STITUTIONAL GROUNDS.—If any action is brought for de-
claratory or injunctive relief to challenge the constitu-
tionality of any provision of this Act or any amendment 
made by this Act, the following rules shall apply:
(1) The action shall be filed in the United States 
District Court for the District of Columbia and shall 
be heard by a 3-judge court convened pursuant to sec-
tion 2284 of title 28, United States Code. 
(2) A copy of the complaint shall be delivered 
promptly to the Clerk of the House of Representatives 
and the Secretary of the Senate. 
(3) A final decision in the action shall be review-
able only by appeal directly to the Supreme Court of 
the United States. Such appeal shall be taken by the 
filing of a notice of appeal within 10 days, and the 
filing of a jurisdictional statement within 30 days, of 
the entry of the final decision. 
(4) It shall be the duty of the United States Dis-
trict Court for the District of Columbia and the Su-
preme Court of the United States to advance on the 
docket and to expedite to the greatest possible extent 
the disposition of the action and appeal. 
(b) INTERVENTION BY MEMBERS OF CONGRESS.—In 
any action in which the constitutionality of any provision 
of this Act or any amendment made by this Act is raised 
(including but not limited to an action described in sub-
section (a)), any Member of the House of Representatives 
(including a Delegate or Resident Commissioner to Con-
gress) or Senate shall have the right to intervene either in
support of or opposition to the position of a party to the 
case regarding the constitutionality of the provision or 
amendment. To avoid duplication of efforts and reduce the 
burdens placed on the parties to the action, the court in 
any such action may make such orders as it considers nec-
essary, including orders to require intervenors taking simi-
lar positions to file joint papers or to be represented by a 
single attorney at oral argument. 
(c) CHALLENGE BY MEMBERS OF CONGRESS.—Any 
Member of Congress may bring an action, subject to the spe-
cial rules described in subsection (a), for declaratory or in-
junctive relief to challenge the constitutionality of any pro-
vision of this Act or any amendment made by this Act. 
(d) APPLICABILITY.—
(1) INITIAL CLAIMS.—With respect to any action 
initially filed on or before December 31, 2008, the 
provisions of subsection (a) shall apply with respect 
to each action described in such subsection. 
(2) SUBSEQUENT ACTIONS.—With respect to any 
action initially filed after December 31, 2008, the 
provisions of subsection (a) shall not apply to any ac-
tion described in such subsection unless the person fil-
ing such action elects such provisions to apply to the 
action.
Union Calendar No. 113
109TH CONGRESS 
1ST SESSION 
H. R. 513
[Report No. 109–181] 
A BILL 
To amend the Federal Election Campaign Act of 
1971 to clarify when organizations described in 
section 527 of the Internal Revenue Code of 
1986 must register as political committees, and 
for other purposes. 
JULY 22, 2005
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed