Overview
Title
To amend the Federal Election Campaign Act of 1971 to require authorized committees of candidates for election for Federal office to include in the reports the committees are required to file under such Act information on contributions received from small dollar donors, and for other purposes.
ELI5 AI
The Small Dollar Donor Protection Act, H.R. 8975, is a rule that wants all money given to people running for big jobs in the government to be shared with everyone, even if it's just a small amount like $5 or $10, so that it's super clear who's helping them. It also asks a group to check if anyone is being tricky when asking for money and to tell the big bosses what they find.
Summary AI
H.R. 8975, titled the “Small Dollar Donor Protection Act,” aims to amend the Federal Election Campaign Act of 1971 to improve transparency in political donations. It requires candidates' committees to report contributions from small dollar donors, those under $200, in their filings. The bill also mandates the Federal Election Commission to publish guidance on these reporting requirements and conduct a study on potentially deceptive solicitation practices by candidate committees. This study's results and recommendations are to be reported to Congress to ensure fair election fundraising practices.
Published
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AnalysisAI
The "Small Dollar Donor Protection Act" is a proposed amendment to the Federal Election Campaign Act of 1971, introduced in the U.S. House of Representatives. The bill aims to enhance transparency in political campaign financing by requiring candidates’ committees to disclose contributions from small-dollar donors, defined as individuals whose contributions do not exceed $200 in total during an election cycle. Additionally, the bill mandates a study by the Federal Election Commission (FEC) on the solicitation practices of candidate committees, particularly to identify any deceptive or fraudulent methods used to obtain small contributions.
General Summary of the Bill
The bill outlines two main requirements:
Disclosure of Small Contributions: It modifies current reporting standards to include the number of contributions and their total amount from individuals contributing less than $200. This is intended to shed light on the influence and extent of small-dollar donations in federal elections.
Study of Solicitation Methods: It directs the FEC to study and report on the solicitation methods used by candidate committees, with a focus on identifying any misleading or fraudulent tactics. The findings and recommendations are to be submitted to Congress within 180 days of the bill's enactment.
Summary of Significant Issues
The bill presents several issues that need consideration:
Complex Language and Clarity: The language within the bill, particularly in the provisions surrounding disclosure requirements, is technical and may not be easily understood by the general public or those unfamiliar with legal jargon. This could hinder effective public debate and comprehension of how these changes affect campaign contributions and transparency.
Ambiguities in Reporting Requirements: The bill lacks clear instructions regarding the specific data that committees must report for small-dollar contributions, potentially leading to inconsistencies in how committees comply with the updated regulations. There is also confusion regarding the timeline for implementing these requirements, specifically for committees that have already filed reports prior to the bill's enactment.
Resource Allocation for the Study: The bill does not specify how the FEC will be funded or resourced for the study on solicitation practices. Without predefined resources, the efficacy and thoroughness of the study could be compromised, potentially affecting the validity of its findings.
Broad Impact on the Public
If enacted, the bill could foster greater transparency in political campaign financing by highlighting the role and influence of small-dollar donors. This may empower individuals who contribute smaller amounts by demonstrating their collective impact on election campaigns. The study conducted by the FEC could also deter deceptive practices in soliciting contributions, thereby protecting potential donors from misleading tactics.
Impact on Specific Stakeholders
Political Campaign Committees: These committees will need to adjust their reporting procedures to comply with the new disclosure requirements. This could mean additional administrative work and potential liability if ambiguities in reporting are not addressed. However, improved transparency might enhance trust among small-dollar donors.
Federal Election Commission (FEC): The Commission is tasked with providing guidance on compliance and conducting a detailed study of solicitation practices. The absence of designated resources could challenge the FEC’s ability to perform these duties effectively.
Small-Dollar Donors: While the bill aims to protect these individuals by increasing transparency and examining solicitation practices, the true impact will depend on the clarity and enforcement of the proposed requirements. Should the bill effectively prevent misleading practices, small-dollar donors may feel more secure and encouraged to participate in the political process.
Overall, the "Small Dollar Donor Protection Act" seeks to provide more visibility and accountability within election financing, but it raises potential issues regarding clarity, enforcement, and resource allocation that stakeholders will need to consider closely.
Financial Assessment
The Small Dollar Donor Protection Act, represented as H.R. 8975, involves specific financial references and requirements that aim to increase transparency around political contributions, especially focusing on small dollar donors. The key financial aspect of the bill is how it mandates the reporting of contributions that amount to less than $200. This threshold is significant because contributions below this amount have previously not been comprehensively disclosed, and this bill seeks to change that by requiring more granular reporting from candidates' committees.
Disclosure Requirements
A major financial component in Section 2 of the bill is the requirement for authorized committees to disclose contributions from individuals whose donations do not exceed $200 within the election cycle. This section amends existing law to ensure these small contributions are included in reports, thereby increasing financial transparency in how campaigns are funded at the lower end of the donor spectrum. This provision directly addresses the issue of inconsistent data disclosure elements, which can lead to variances in committee reports due to a lack of specificity about what needs to be included concerning small dollar contributions.
Implementation Timeline
The act specifies a timeline for implementation, with new reporting requirements applying to reports filed after its enactment. However, it creates potential challenges due to an ambiguity in the effective date clause for committees that filed during a 90-day window. There is a risk of confusion among committees regarding when precisely they must start including these smaller contributions in their reports, which could lead to non-compliance or delayed adoption of the new requirements.
Federal Election Commission's Role
The bill assigns responsibility to the Federal Election Commission (FEC) to offer guidance to committees on how to meet these new standards. This guidance is to be published within 90 days of the bill's enactment, but the bill does not specify financial resources or budget allocations for these activities. This absence is noteworthy as it might impact the effectiveness and timeliness of the FEC's ability to assist committees adequately. Furthermore, Section 3 amplifies this concern by requiring the FEC to conduct a study and report on deceptive and fraudulent solicitation methods without detailing any allocated funding to support these efforts.
Study and Compliance
Lastly, while the bill requires the FEC to undertake a study on solicitation practices, it fails to allocate a specific budget or outline enforcement mechanisms to ensure compliance if fraudulent activities are discovered. Such omissions raise concerns about whether adequate resources will be available to conduct a comprehensive study and ensure the effectiveness of any proposed recommendations. Without clearly defined consequences or financial resources, there is a potential gap in ensuring these legislative initiatives lead to meaningful change in campaign finance transparency and integrity.
In summary, while the Small Dollar Donor Protection Act endeavors to enhance transparency for small dollar contributions, the lack of clear financial allocations for implementation and study efforts reveals gaps that could hinder the overall effectiveness of the proposed regulatory changes.
Issues
The complexity and legalistic language in Section 2 may make it difficult for the general public and non-experts to understand how the new disclosure requirements impact them or how the committees must comply. This opacity can impede transparent public discourse.
Section 2 lacks clarity on the specific data elements necessary for disclosure of small dollar contributions, creating a risk of inconsistencies and non-compliance across various committee reports.
There is ambiguity in Section 2 regarding the effective date clause for committees that filed during the 90-day enactment window, potentially leading to confusion about compliance timelines and practices.
Section 3 does not outline specific consequences or enforcement mechanisms in cases where deceptive or fraudulent solicitation methods are identified, leaving a gap in legislative accountability and effectiveness.
Section 3 does not specify a budget or resources for conducting the study on deceptive solicitation methods, raising concerns about potential inadequate funding or resource allocation which might affect the validity or comprehensive nature of the study results.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the act provides a short title, stating that it can be referred to as the “Small Dollar Donor Protection Act”.
Money References
- This Act may be cited as the “Small Dollar Donor Protection Act”.
2. Disclosure of contributions received from small dollar donors Read Opens in new tab
Summary AI
The section amends the Federal Election Campaign Act to require political committees to disclose contributions from small donors whose individual contributions are under $200, and the Federal Election Commission will provide guidance on complying with this requirement within 90 days of the law being enacted. The changes apply to future reports, starting from the enactment date, except for committees that filed recently, which will comply with the second post-enactment report.
Money References
- SEC. 2. Disclosure of contributions received from small dollar donors.
- (a) Disclosure required.—Section 304(b)(2) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30104(b)(2)) is amended— (1) by striking “and” at the end of subparagraph (J); (2) by adding “and” at the end of subparagraph (K); and (3) by adding at the end the following new subparagraph: “(L) for an authorized committee, contributions from persons whose identification the committee does not report under subparagraph (A), (F), or (G) of paragraph (3) because the receipts described in such subparagraph which are provided from such persons do not have an aggregate amount or value in excess of $200 within the election cycle, together with the number of such contributions received within the election cycle;”. (b) Guidance.—Not later than 90 days after the date of the enactment of this Act, the Federal Election Commission shall publish guidance to assist committees with complying with the requirements of section 304(b)(2)(L) of the Federal Election Campaign Act of 1971, as added by subsection (a)(3).
3. Analysis of deceptive and fraudulent methods of solicitation of small dollar donors by candidate committees Read Opens in new tab
Summary AI
The Federal Election Commission is required to study how candidate committees for federal elections ask for small donations, particularly focusing on whether these methods are misleading or dishonest. They must report their findings and suggestions to Congress within 180 days to help prevent deceptive donation practices.
Money References
- SEC. 3. Analysis of deceptive and fraudulent methods of solicitation of small dollar donors by candidate committees.