R. 169.39b - Expenditures for candidate advertisements

R. 169.39b. Expenditures for candidate advertisements

Rule 39b.

(1) Except as otherwise provided in this rule, an expenditure for a communication that uses the name or likeness of 1 or more specific candidates is subject to the prohibition on contributions and expenditures in section 54 of the act if the communication is broadcast or distributed within 45 calendar days before the date of an election in which the candidates name is eligible to appear on the ballot.

(2) This rule does not apply to any of the following:

(a) An expenditure for communication by a person with the persons paid members or stockholders and individuals who can be solicited for contributions to a separate segregated fund.

(b) An expenditure for nonpartisan voter registration or nonpartisan get-out-the-vote activities,including the production and distribution of voter guides, that is made by an organization that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 U.S.C. 501 (c)(3) or any successor statute.

(c) An expenditure for communication by a qualified nonprofit corporation as defined in subrule (3) of this rule.

(3) A nonprofit corporation shall be considered a qualified nonprofit corporation for the purposes of this rule if all of the following conditions are met:

(a) The corporation's only express purpose is the promotion of political ideas, including issue advocacy, election influence activity, and research, training, or educational activity that is expressly tied to the corporation's political goals.

(b) The corporation does not engage in business activities.

(c) The corporation does not have shareholders or other persons, other than employees and creditors who do not have an ownership interest, affiliated with the corporation in any way that could allow the shareholders or other persons to make a claim on the corporation's assets or earnings.

(d) The corporation does not offer or provide to any person a benefit that is a disincentive for the person to disassociate from the corporation on the basis of the corporation's position on a political issue. A benefit includes, but is not limited to, the following:

(i) Credit cards, insurance policies, or savings plans.

(ii) Training, education, or business information, other than that which is necessary to enable the recipient to engage in the promotion of the corporation's political beliefs.

(e) The corporation was not established by, or affiliated with, a business corporation, joint stock company, domestic dependent sovereign, or labor organization.

If the corporation is unable, for good cause, to demonstrate that this requirement is satisfied, then the corporation shall have a written policy against accepting donations from business corporations, joint stock companies, domestic dependent sovereigns, or labor organizations.

(f) The corporation is registered under section 501(c)(4) of the internal revenue code of 1986, 26 U.S.C. 501 (c)(4).

(1998 - 2000 AACS)

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