Overview
Title
An Act To amend the Federal Election Campaign Act of 1971 to require the disclosure of the card verification value as a condition of the acceptance of online contributions made through the use of credit or debit cards in elections for Federal office and to prohibit the acceptance of contributions made through the use of gift cards in such elections, and for other purposes.
ELI5 AI
In the "SHIELD Act," the bill wants to make sure that when people give money online to help someone win a big government job (like being a senator or president), they must share a secret code on their credit card to ensure the money is from them. It also says you can't use gift cards to give money this way to keep things fair and safe.
Summary AI
H.R. 9488, also known as the "Secure Handling of Internet Electronic Donations Act" or the "SHIELD Act," aims to change how online political donations are handled. It requires donors to disclose the card verification value when using credit or debit cards for online contributions in federal elections and ensures contributors have a U.S. mailing address or provide specific identification if overseas. Additionally, the bill prohibits using gift cards for political donations and warns against making contributions in someone else's name. Lastly, it directs the Federal Election Commission to establish new regulations to implement these changes.
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AnalysisAI
The proposed legislation, known as the "Secure Handling of Internet Electronic Donations Act" or "SHIELD Act," aims to amend the Federal Election Campaign Act of 1971. This bill introduces new requirements for online contributions to federal election campaigns made via credit or debit cards and prohibits contributions made using gift cards.
General Summary
The SHIELD Act mandates political committees to obtain the card verification value (CVV) from contributors when accepting digital contributions through credit or debit cards. Furthermore, it explicitly bans the acceptance of contributions made using gift certificates or store gift cards in federal elections. It also outlines procedural requirements for handling contributions, including validation and potential refunds for non-compliance.
The Act requires amendments to existing regulations, compelling the Federal Election Commission (FEC) to develop and implement these within 90 days, incorporating input from payment card networks and other relevant entities.
Significant Issues
A critical concern with this bill stems from the ambiguous language regarding the enforcement of the required card verification and identity checks. While the bill specifies the collection of a CVV and U.S.-based addresses, it lacks explicit consequences or mechanisms for ensuring compliance. This ambiguity might lead to disparities in how campaigns implement these requirements.
A second issue relates to privacy concerns. The bill does not adequately address the secure handling of potentially sensitive personal and financial information, which might increase vulnerability to data breaches.
Furthermore, the provision allowing contributors using digital wallets or making recurring contributions to bypass repeated verification requirements might open avenues for fraudulent transactions if the initial data collected is flawed.
Another area of note is the potential ineffectiveness of simply requiring refunds for non-compliance. Without clearly defined penalties or repercussions beyond refunds, the deterrent effect against accepting non-compliant contributions may be minimal.
Public Impact
For the general public, the SHIELD Act could enhance transparency and trust in political campaign financing by enforcing verification of online contributions. Ensuring that donations are traceable and legitimate could potentially deter unlawful foreign influence in elections.
However, the public may also harbor concerns over privacy and data protection, given the lack of clarity on how personal and sensitive information will be stored and protected.
Impact on Stakeholders
Political committees could face increased administrative burdens under the new requirements, needing to implement or upgrade systems ensuring compliance with the extended verification processes. They might encounter added expenses related to these upgrades and the potential refunds.
On the other hand, payment network providers and digital wallet services could gain substantial influence as they become essential stakeholders in facilitating and verifying contributions in the compliant manner prescribed by the new regulations.
For voters and donors, especially those residing or based outside of the U.S., the requirement to provide additional documentation may introduce barriers, potentially discouraging legitimate participation in campaign funding from overseas U.S. citizens.
In summary, while the SHIELD Act aims to promote transparency and accountability in campaign contributions, the lack of specific enforcement guidelines and privacy protections raises concerns. If implemented effectively, the bill could significantly contribute to a more secure and transparent electoral process in the United States. Nonetheless, addressing these concerns is crucial to ensuring the bill achieves its intended purpose without unintended negative consequences.
Issues
The bill's Section 2 lacks clarity on enforcement mechanisms for ensuring compliance with the disclosure of the card verification value when accepting online contributions using credit or debit cards in Federal elections. This could lead to inconsistent application and potentially allow non-compliant transactions to slip through undetected.
Section 2 presents potential privacy concerns as it does not address how personal and card verification information will be securely stored, thereby increasing the risk of data breaches and unauthorized access to sensitive information.
The allowance in Section 2 for not repeating verification for recurring contributions or stored card information may be exploited if the initial verification was flawed or fraudulent, leading to possible misuse in electoral financing.
Section 3 prohibits contributions made using gift cards, but the lack of clarity on penalties or consequences for non-compliance, aside from refunds, may limit the deterrent effect and allow abuses to persist.
The deadline in Section 5 for the Federal Election Commission to issue regulations within 90 days could rush the regulatory process, potentially resulting in incomplete or inadequate frameworks that might not effectively address or regulate contributions in the electoral process.
In Section 4, the bill does not specify enforcement details or penalties for aiding or abetting contributions made in the name of another. This lack of detail could hinder efforts to deter and prosecute fraudulent practices.
The term 'best efforts' used in Sections 2 and 3 is subjective and may lead to inconsistencies in enforcement or legal challenges, as what constitutes 'best efforts' is not objectively defined.
Section 5's requirement for the Federal Election Commission to consult with payment card networks and 'other relevant stakeholders' is vague, which might result in inconsistent interpretation or application and could imply preferential treatment if certain organizations have more influence or access.
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 act described in this section is called the "Secure Handling of Internet Electronic Donations Act" or "SHIELD Act".
2. Requiring disclosure of card verification value as condition of acceptance of online contributions made using credit or debit cards in Federal elections Read Opens in new tab
Summary AI
The amendment to Section 302 of the Federal Election Campaign Act of 1971 requires that political committees can only accept online credit or debit card contributions for federal elections if the contributor provides their card verification value and has a U.S. mailing address. Contributors with addresses outside the U.S. must provide additional identification such as a U.S. passport or a legal resident card. The rules apply to first-time contributions but not to recurring ones made with the same card, and contributions made using digital wallets are also considered compliant. Treasurers must ensure contributions meet these criteria and refund any that do not comply.
3. Prohibiting acceptance of contributions made using gift cards in Federal elections Read Opens in new tab
Summary AI
The text outlines a rule that political committees in federal elections cannot accept contributions made with gift certificates or store gift cards. The treasurer of each committee must verify compliance with this rule and, if unable to do so, must refund the contribution within 30 days, unless they can show they made a genuine effort to comply.
4. Prohibiting aiding or abetting making of contribution in the name of another Read Opens in new tab
Summary AI
The text adds a new rule to the Federal Election Campaign Act, stating that no one is allowed to help someone else make a campaign donation using someone else's name.
5. Regulations Read Opens in new tab
Summary AI
The Federal Election Commission is required to create new regulations within 90 days of the law's enactment, specifically for the changes made by this law. In doing so, the Commission must consult with credit card payment network representatives and other important parties.
6. Effective date Read Opens in new tab
Summary AI
The changes introduced by this law will start to affect contributions made after 90 days from when the Commission issues new rules under section 5.