11 C.F.R. § 114.14 Further restrictions on the use of corporate and labor organization funds for electioneering communications.
Title 11 - Federal Elections
(a)(1) Corporations and labor organizations shall not give, disburse, donate or otherwise provide funds, the purpose of which is to pay for an electioneering communication, to any other person. (2) A corporation or labor organization shall be deemed to have given, disbursed, donated, or otherwise provided funds under paragraph (a)(1) of this section if the corporation or labor organization knows, has reason to know, or willfully blinds itself to the fact, that the person to whom the funds are given, disbursed, donated, or otherwise provided, intended to use them to pay for an electioneering communication. (b) Persons who accept funds given, disbursed, donated or otherwise provided by a corporation or labor organization shall not: (1) Use those funds to pay for any electioneering communication; or (2) Provide any portion of those funds to any person, for the purpose of defraying any of the costs of an electioneering communication. (c) The prohibitions at paragraphs (a) and (b) of this section shall not apply to funds disbursed by a corporation or labor organization, or received by a person, that constitute— (1) Salary, royalties, or other income earned from bona fide employment or other contractual arrangements, including pension or other retirement income; (2) Interest earnings, stock or other dividends, or proceeds from the sale of the person's stocks or other investments; or (3) Receipt of payments representing fair market value for goods provided or services rendered to a corporation or labor organization. (d)(1) Persons who receive funds from a corporation or a labor organization that do not meet the exceptions of paragraph (c) of this section must be able to demonstrate through a reasonable accounting method that no such funds were used to pay any portion of an electioneering communication. (2) Any person who wishes to pay for electioneering communications may, but is not required to, establish a segregated bank account into which it deposits only funds donated or otherwise provided by individuals, as described in 11 CFR part 104. Use of funds exclusively from such an account to pay for an electioneering communications shall satisfy paragraph (d)(1) of this section. Persons who use funds exclusively from such a segregated bank account to pay for an electioneering communication shall be required to only report the names and addresses of those individuals who donated or otherwise provided an amount aggregating $1,000 or more to the segregated bank account, aggregating since the first day of the preceding calendar year. [67 FR 65212, Oct. 23, 2002]
Title 11: Federal Elections
PART 114—CORPORATE AND LABOR ORGANIZATION ACTIVITY
§ 114.14 Further restrictions on the use of corporate and labor organization funds for electioneering communications.
