2 U.S. Code § 441i - Soft money of political parties

(a) National committees
(1) In general
A national committee of a political party (including a national congressional campaign committee of a political party) may not solicit, receive, or direct to another person a contribution, donation, or transfer of funds or any other thing of value, or spend any funds, that are not subject to the limitations, prohibitions, and reporting requirements of this Act.
(2) Applicability
The prohibition established by paragraph (1) applies to any such national committee, any officer or agent acting on behalf of such a national committee, and any entity that is directly or indirectly established, financed, maintained, or controlled by such a national committee.
(b) State, district, and local committees
(1) In general
Except as provided in paragraph (2), an amount that is expended or disbursed for Federal election activity by a State, district, or local committee of a political party (including an entity that is directly or indirectly established, financed, maintained, or controlled by a State, district, or local committee of a political party and an officer or agent acting on behalf of such committee or entity), or by an association or similar group of candidates for State or local office or of individuals holding State or local office, shall be made from funds subject to the limitations, prohibitions, and reporting requirements of this Act.
(2) Applicability
(A) In general
Notwithstanding clause (i) or (ii) of section 431 (20)(A) of this title, and subject to subparagraph (B), paragraph (1) shall not apply to any amount expended or disbursed by a State, district, or local committee of a political party for an activity described in either such clause to the extent the amounts expended or disbursed for such activity are allocated (under regulations prescribed by the Commission) among amounts—
(i) which consist solely of contributions subject to the limitations, prohibitions, and reporting requirements of this Act (other than amounts described in subparagraph (B)(iii)); and
(ii) other amounts which are not subject to the limitations, prohibitions, and reporting requirements of this Act (other than any requirements of this subsection).
(B) Conditions
Subparagraph (A) shall only apply if—
(i) the activity does not refer to a clearly identified candidate for Federal office;
(ii) the amounts expended or disbursed are not for the costs of any broadcasting, cable, or satellite communication, other than a communication which refers solely to a clearly identified candidate for State or local office;
(iii) the amounts expended or disbursed which are described in subparagraph (A)(ii) are paid from amounts which are donated in accordance with State law and which meet the requirements of subparagraph (C), except that no person (including any person established, financed, maintained, or controlled by such person) may donate more than $10,000 to a State, district, or local committee of a political party in a calendar year for such expenditures or disbursements; and
(iv) the amounts expended or disbursed are made solely from funds raised by the State, local, or district committee which makes such expenditure or disbursement, and do not include any funds provided to such committee from—
(I) any other State, local, or district committee of any State party,
(II) the national committee of a political party (including a national congressional campaign committee of a political party),
(III) any officer or agent acting on behalf of any committee described in subclause (I) or (II), or
(IV) any entity directly or indirectly established, financed, maintained, or controlled by any committee described in subclause (I) or (II).
(C) Prohibiting involvement of national parties, Federal candidates and officeholders, and State parties acting jointly
Notwithstanding subsection (e) of this section (other than subsection (e)(3)), amounts specifically authorized to be spent under subparagraph (B)(iii) meet the requirements of this subparagraph only if the amounts—
(i) are not solicited, received, directed, transferred, or spent by or in the name of any person described in subsection (a) or (e) of this section; and
(ii) are not solicited, received, or directed through fundraising activities conducted jointly by 2 or more State, local, or district committees of any political party or their agents, or by a State, local, or district committee of a political party on behalf of the State, local, or district committee of a political party or its agent in one or more other States.
(c) Fundraising costs
An amount spent by a person described in subsection (a) or (b) of this section to raise funds that are used, in whole or in part, for expenditures and disbursements for a Federal election activity shall be made from funds subject to the limitations, prohibitions, and reporting requirements of this Act.
(d) Tax-exempt organizations
A national, State, district, or local committee of a political party (including a national congressional campaign committee of a political party), an entity that is directly or indirectly established, financed, maintained, or controlled by any such national, State, district, or local committee or its agent, and an officer or agent acting on behalf of any such party committee or entity, shall not solicit any funds for, or make or direct any donations to—
(1) an organization that is described in section 501 (c) of title 26 and exempt from taxation under section 501(a) of such title (or has submitted an application for determination of tax exempt status under such section) and that makes expenditures or disbursements in connection with an election for Federal office (including expenditures or disbursements for Federal election activity); or
(2) an organization described in section 527 of such title (other than a political committee, a State, district, or local committee of a political party, or the authorized campaign committee of a candidate for State or local office).
(e) Federal candidates
(1) In general
A candidate, individual holding Federal office, agent of a candidate or an individual holding Federal office, or an entity directly or indirectly established, financed, maintained or controlled by or acting on behalf of 1 or more candidates or individuals holding Federal office, shall not—
(A) solicit, receive, direct, transfer, or spend funds in connection with an election for Federal office, including funds for any Federal election activity, unless the funds are subject to the limitations, prohibitions, and reporting requirements of this Act; or
(B) solicit, receive, direct, transfer, or spend funds in connection with any election other than an election for Federal office or disburse funds in connection with such an election unless the funds—
(i) are not in excess of the amounts permitted with respect to contributions to candidates and political committees under paragraphs (1), (2), and (3) of section 441a (a) of this title; and
(ii) are not from sources prohibited by this Act from making contributions in connection with an election for Federal office.
(2) State law
Paragraph (1) does not apply to the solicitation, receipt, or spending of funds by an individual described in such paragraph who is or was also a candidate for a State or local office solely in connection with such election for State or local office if the solicitation, receipt, or spending of funds is permitted under State law and refers only to such State or local candidate, or to any other candidate for the State or local office sought by such candidate, or both.
(3) Fundraising events
Notwithstanding paragraph (1) or subsection (b)(2)(C) of this section, a candidate or an individual holding Federal office may attend, speak, or be a featured guest at a fundraising event for a State, district, or local committee of a political party.
(4) Permitting certain solicitations
(A) General solicitations
Notwithstanding any other provision of this subsection, an individual described in paragraph (1) may make a general solicitation of funds on behalf of any organization that is described in section 501 (c) of title 26 and exempt from taxation under section 501(a) of such title (or has submitted an application for determination of tax exempt status under such section) (other than an entity whose principal purpose is to conduct activities described in clauses (i) and (ii) of section 431 (20)(A) of this title) where such solicitation does not specify how the funds will or should be spent.
(B) Certain specific solicitations
In addition to the general solicitations permitted under subparagraph (A), an individual described in paragraph (1) may make a solicitation explicitly to obtain funds for carrying out the activities described in clauses (i) and (ii) of section 431 (20)(A) of this title, or for an entity whose principal purpose is to conduct such activities, if—
(i) the solicitation is made only to individuals; and
(ii) the amount solicited from any individual during any calendar year does not exceed $20,000.
(f) State candidates
(1) In general
A candidate for State or local office, individual holding State or local office, or an agent of such a candidate or individual may not spend any funds for a communication described in section 431 (20)(A)(iii) of this title unless the funds are subject to the limitations, prohibitions, and reporting requirements of this Act.
(2) Exception for certain communications
Paragraph (1) shall not apply to an individual described in such paragraph if the communication involved is in connection with an election for such State or local office and refers only to such individual or to any other candidate for the State or local office held or sought by such individual, or both.

Source

(Pub. L. 92–225, title III, § 323, as added Pub. L. 107–155, title I, § 101(a),Mar. 27, 2002, 116 Stat. 82.)
References in Text

This Act, referred to in text, means the Federal Election Campaign Act of 1971, as amended, as defined by section 431 of this title.
Prior Provisions

A prior section 441i,Pub. L. 92–225, title III, § 323, formerly § 328, as added Pub. L. 94–283, title I, § 112(2),May 11, 1976, 90 Stat. 494; amended Pub. L. 95–216, title V, § 502(a),Dec. 20, 1977, 91 Stat. 1565; renumbered § 323,Pub. L. 96–187, title I, § 105(5),Jan. 8, 1980, 93 Stat. 1354; amended Pub. L. 97–51, § 130(a),Oct. 1, 1981, 95 Stat. 966; Pub. L. 98–63, title I, § 908(g),July 30, 1983, 97 Stat. 338; Pub. L. 101–194, title VI, § 601(b)(1),Nov. 30, 1989, 103 Stat. 1762; Pub. L. 101–280, § 7(b)(1) [(d)(1)], May 4, 1990, 104 Stat. 161, related to acceptance of excessive honorariums, prior to repeal by Pub. L. 102–90, title I, § 6(d),Aug. 14, 1991, 105 Stat. 451.
A prior section 323 ofPub. L. 92–225was renumbered section 318, and is classified to section 441d of this title.
Effective Date

Section effective Nov. 6, 2002, except that subsec. (b) of this section not applicable with respect to runoff elections, recounts, or election contests resulting from elections held prior to Nov. 6, 2002, with transitional rules for the spending of soft money of national political parties, see section 402 ofPub. L. 107–155, set out as an Effective Date of 2002 Amendment; Regulations note under section 431 of this title.

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