A bill to amend section 527 of the Internal Revenue Code of 1986 to better define the term political organization.

Amends Internal Revenue Code provisions regarding tax-exempt organizations to expand the definition of "political organization" to include political committees as defined by the Federal Election Campaign Act of 1971 (FECA). Excepts from such definition: (1) organizations which exist to influence the appointment of any individual to a State, local, or Federal public office, or office in a political organization; (2) a group of persons (other than a separate segregated fund established under FECA) accepting contributions or making expenditures during a calendar year of less than $1,000; or (3) local committees of political parties which are not political committees.

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2582 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2582

  To amend section 527 of the Internal Revenue Code of 1986 to better 
                define the term political organization.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2000

  Mr. Lieberman (for himself, Mr. Levin, Mr. Daschle, Mr. McCain, Mr. 
    Jeffords, Mr. Feingold, Mr. Durbin, Mr. Cleland, Mr. Kerry, Mr. 
   Torricelli, Mr. Kennedy, Mr. Akaka, and Mr. Bryan) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend section 527 of the Internal Revenue Code of 1986 to better 
                define the term political organization.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEFINITION OF POLITICAL ORGANIZATION.

    (a) Definition of Political Organization.--Paragraph (1) of section 
527(e) of the Internal Revenue Code of 1986 (relating to political 
organizations) is amended to read as follows:
            ``(1) Political organization.--
                    ``(A) In general.--The term `political 
                organization' means a party, committee, association, 
                fund, or other organization (whether or not 
                incorporated)--
                            ``(i) organized and operated primarily for 
                        the purpose of directly or indirectly accepting 
                        contributions or making expenditures, or both, 
                        for an exempt function, and
                            ``(ii) which is a political committee 
                        described in section 301(4) of the Federal 
                        Election Campaign Act of 1971 (2 U.S.C. 
                        431(4)).
                    ``(B) Exceptions.--Subparagraph (A)(ii) shall not 
                apply in the case of--
                            ``(i) an organization described in 
                        subparagraph (C),
                            ``(ii) any committee, club, association, or 
                        other group of persons (other than a separate 
                        segregated fund established under section 316 
                        of the Federal Election Campaign Act of 1971 (2 
                        U.S.C. 441b)) which accepts contributions or 
                        makes expenditures (as defined in this 
                        subsection) during a calendar year in an 
                        aggregate amount of less than $1,000, or
                            ``(iii) any local committee of a political 
                        party which is not a political committee (as so 
                        defined).
                    ``(C) Certain organizations.--An organization is 
                described in this subparagraph if--
                            ``(i) the activities of the organization 
                        are for the primary purpose of influencing or 
                        attempting to influence--
                                    ``(I) the selection, nomination, 
                                election, or appointment of any 
                                individual to any State or local public 
                                office,
                                    ``(II) the appointment of any 
                                individual to any Federal public 
                                office, or
                                    ``(III) the selection, nomination, 
                                election, or appointment of any 
                                individual to any office in a political 
                                organization, and
                            ``(ii) the organization does not engage in 
                        any activity that is for the purpose of 
                        directly or indirectly influencing or 
                        attempting to influence the selection, 
                        nomination, or election of any individual to 
                        any Federal public office or the election of 
                        Presidential or Vice Presidential electors.
                The preceding sentence shall apply whether or not an 
                individual described in subclause (I), (II), or (III) 
                of clause (i) or in clause (ii) of such sentence is 
                selected, nominated, elected, or appointed to such 
                office.''.
    (b) Effective Date.--This section and the amendment made by this 
section take effect on the date that is 30 days after the date of 
enactment of this Act.
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