Overview
Title
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 and prepaid credit cards in such elections, and for other purposes.
ELI5 AI
The bill wants people giving money online to a politician to show they're using their own credit card by giving extra details, like the card's secure code, and make sure the address is in the U.S., but it stops people from using gift cards to do this.
Summary AI
H.R. 9488, also known as the "Secure Handling of Internet Electronic Donations Act" or "SHIELD Act," aims to update the Federal Election Campaign Act of 1971. This bill requires that online contributions made with credit or debit cards for federal elections must disclose the card verification value (CVV) and ensures the billing address is in the U.S. It also prohibits the acceptance of contributions via gift cards or prepaid credit cards and makes it illegal to help someone make a contribution in someone else's name. The bill mandates regulations be established within a short timeframe and outlines an effective date for these changes.
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AnalysisAI
The proposed legislation, identified as H.R. 9488, aims to amend the Federal Election Campaign Act of 1971. This amendment focuses on improving the transparency and security of campaign contributions made via internet credit or debit card transactions in federal elections. The bill, titled the “Secure Handling of Internet Electronic Donations Act” or the “SHIELD Act,” introduces conditions for accepting online contributions, specifically requiring the disclosure of a card's verification value and addresses concerns over contributions from gift cards or prepaid cards.
General Summary of the Bill
The SHIELD Act mandates that any political committee accepting online contributions through credit or debit cards must require contributors to disclose their card verification value (CVV). Moreover, a contribution can only be accepted if the billing address is in the United States, or if the contributor is a U.S. citizen or lawful permanent resident living abroad, they must provide additional documentation such as a U.S. passport or other identification. The bill also explicitly prohibits contributions made with gift cards and prepaid cards, and it adds a measure to prevent donations being made in the name of someone else.
Significant Issues
A notable issue surrounding this bill is the potential privacy concern tied to the requirement of disclosing CVV numbers. Concerns arise because this mandates the handling and potential exposure of sensitive financial information during the donation process. Additionally, the documentation requirements for U.S. citizens or lawful permanent residents living abroad might discourage their involvement due to the perceived complexity or intrusiveness of the process.
The legislation's approach to prohibiting the use of gift cards and prepaid cards for contributions is not accompanied by details on how such payments should be verified, which might lead to compliance issues for political committees. Furthermore, the bill's requirement for the Federal Election Commission (FEC) to establish regulations within ten days of enactment is extremely ambitious and could result in hastily prepared, incomplete guidelines.
Impact on the Public
Broadly, this legislation aims to enhance the integrity of financial contributions in federal elections, which could bolster public confidence in the electoral process's fairness and transparency. By ensuring that online contributions are more securely handled, there is potential to reduce fraudulent or improper campaign financing.
Impact on Specific Stakeholders
For political committees, the new requirements might initially seem burdensome due to the need to adapt their processing systems for the increased verification measures and documentary demands. However, these changes are designed to ensure that contributions are genuine and properly accounted for, potentially enhancing their legitimacy.
For U.S. citizens and lawful permanent residents overseas, the additional documentation requirements could act as a deterrent from participating in the contribution process, potentially limiting their involvement in political campaigns.
For the FEC, the short timeline to implement new regulations may prove challenging and could lead to regulatory difficulties. Efficient implementation by the FEC is crucial in transitioning smoothly to these new requirements.
Conclusively, while the bill hopes to make campaign financing more secure and transparent, it introduces significant practical challenges that need careful consideration and addressal to prevent discouragement of legitimate contributors and ensure effective regulatory oversight.
Issues
The requirement to disclose the card verification value (CVV) for online contributions raises significant privacy concerns as it involves the handling and potential exposure of sensitive financial information. This is particularly relevant in Section 2.
The bill imposes additional documentation requirements on U.S. nationals or lawful permanent residents living outside the United States, which could be seen as burdensome and potentially discouraging their participation in the political contribution process. This concern is outlined in Section 2.
The prohibition on contributions made using gift cards and prepaid credit cards, as stated in Section 3, is not accompanied by guidance on how political committees should verify the source of payments, leading to potential compliance and enforcement challenges.
There is ambiguity around the definition and criteria for what constitutes a 'comparable acceptable identification document', as described in Section 2. This could lead to confusion and uneven implementation of the requirement.
The exceptionally short timeline of 10 days for the Federal Election Commission to develop and implement regulations might result in rushed or incomplete regulations, impacting effective enforcement. This issue is addressed in Section 2.
The implementation plan does not address contributions made during the transitional 180-day period after enactment, causing potential confusion among political committees and contributors. This is applicable to both Sections 2 and 3.
The bill lacks specificity regarding enforcement mechanisms and penalties related to the provision on aiding or abetting contributions made in someone else’s name, which is outlined in Section 4. This could undermine its effectiveness.
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
This section of the bill amends the Federal Election Campaign Act to require political committees to verify the card verification value (CVV) for all online credit or debit card donations and to ensure the billing address is in the U.S. or that specific identification is provided for contributors living abroad. The Federal Election Commission has 10 days after the bill is enacted to create regulations, and the new rules apply to contributions made 180 days post-enactment.
3. Prohibiting acceptance of contributions made using gift cards and prepaid credit cards in Federal elections Read Opens in new tab
Summary AI
The section of the bill prohibits political committees from accepting campaign contributions made using prepaid cards, gift certificates, or store gift cards in federal elections. This rule will take effect 180 days after the law is enacted.
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.