*** Democracies Online Newswire - http://www.e-democracy.org/do *** As the U.S. House deals with campaign finance reform proposals I'd like to throw an idea into the mix ... Update campaign "Prepared and Paid for ..." election disclaimer laws to take full advantage of the digital television and Internet capabilities. How? 1. Digital television in the U.S. allows "data" to be sent along with a video signal. This is often called Enhanced DTV (or a feature of Interactive TV) where an icon might flash on the screen telling you to click your remote for an additional screen of information. 2. Require full disclaimer text to be sent along with an television ad over digital television. This disclaimer should at a minimum contain the full legal name of who paid for the ad, a street address, a telephone number, a web site address, and an e-mail address. 3. Do the same for online ads - required a hypertext link to full disclosure information. More? The problems with television advertising in American politics are well known. Often news paper "ad watches" try to get campaigns to provide the sources of their claims. Why not make this the law now that the technology allows this at very very little cost? Compared to the soft money reforms, more disclosure is often the compromise. Let's ensure disclosure that allows for direct accountability! Also, from public television land you hear about "CD-Rom like" interactive learning experiences being sent along with their programming for example - not just text. What will the voluntarily interactive campaign ad of the future be? Will ads be a 30 second intro to a 5 minute slide show with audio? One click access to a full position paper or a donate now button adapting the next generation of e-shopping to politics. Look this nice shiny forehead, ohhh, click your remote now to buy this politician ... :-) To check out trends in Interactive TV see <http://directory.google.com/Top/Arts/Television/Interactive/> and in particular <http://www.atvef.com/> (their HTML over broadcast standard <http://www.atvef.com/library/spec.html>, and <http://itvt.com>. To take a closer look at the U.S. guidelines and laws see the two documents below. For more on my nuts and bolts ideas for using DTV in the public interest (i.e. missing children alerts, traffic information), see <http://www.publicus.net/pi/>. Who do you think this idea should be passed on to in Congress? Provide specific contact information or just pass this message on. Cheers, Steven Clift http://www.publicus.net Democracies Online Newswire http://www.e-democracy.org/do See: http://www.fec.gov/pages/notices.htm Special Notices on Political Ads and Solicitations Published in August 1997 Contents * Introduction * Disclaimer Notices o What is a Disclaimer Notice? o When to Include a Disclaimer Notice o Wording of Disclaimer Notices o Placement of Disclaimer Notices o When a Disclaimer Notice is Not Required * "Best Efforts" Notification o Content o "Clear and Conspicuous" * IRS Disclosure Requirements Introduction This brochure has been developed to help clarify the following types of special notices: * Disclaimer notices; * Best Efforts notifications; and * IRS disclosure notices. Each notice may be required (as appropriate) when persons finance political ads and solicitations.1 A section-by-section explanation of these rules is provided within. Please be advised that this brochure is not intended to provide an exhaustive discussion regarding this area of the election law. The citations refer to the Federal Election Campaign Act (FECA), Federal Election Commission (FEC) regulations (11 CFR) and Advisory Opinions (AOs). If you have any questions after reading the brochure, please contact the FEC: Federal Election Commission Washington, DC (202) 694-1100 (local) (800) 424-9530 (toll free) (202) 219-3336 (for the hearing impaired) Disclaimer Notices What is a "Disclaimer" Notice? For purposes of this brochure, a "disclaimer" notice is defined as a statement placed on a political ad or solicitation that identifies the person(s) who paid for the communication and, when appropriate, the person(s) who authorized it. When to Include a Disclaimer Notice Basic Rule A disclaimer notice must be used when public political advertising is used either: * To expressly advocate the election or defeat of a clearly identified candidate for federal office; or * To solicit funds in connection with a federal election (i.e., to solicit contributions for a federal candidate or a federal political committee).2 Application of Rule In actual practice, a disclaimer notice must be used on any type of public political advertising that includes express advocacy or solicits funds in connection with a federal election, including: * In-kind Contributions in the form of political ads on behalf of candidates * Independent Expenditures * Solicitations for a federal candidate or a federal political committee * Coordinated Party Expenditures * Exempt Party Activity Definitions Public Political Advertising The following types of communications qualify as public political advertising under Commission regulations: * TV and radio broadcasts; * Print media (newspapers, magazines, handbills, etc.); * Posters, billboards and yard signs; * Internet communications(see AOs 1995-35 and 1995-9); and * Direct mailings (a mailing of more than 100 pieces of mail that contain the same basic communication). 110.11(a)(1) and (3).3 Express Advocacy Express advocacy refers to a communication that unambiguously advocates the election or defeat of a federal candidate. There are two ways a communication can be defined as express advocacy: by use of certain "magic words" and by the "reasonable person" test. 100.22 "Magic Words" The following words convey a message of express advocacy: * "Vote for the President," "re-elect your Congressman," "support the Democratic nominee," "cast you ballot for the Republican challenger for the U.S. Senate in Georgia," "Smith for Congress," "Bill McKay in '96"; * Words urging action with respect to candidates associated with a particular issue, e.g., "Vote Pro-Life"/"Vote Pro-Choice," when accompanied by names or photographs of candidates identified as either supporting or opposing the issue; * "Defeat" accompanied by the name or photograph of the opposed candidate or "reject the incumbent"; and * Campaign slogans or words (e.g., on posters, bumper stickers and advertisements) that in context can have no other reasonable meaning than to support or oppose a clearly identified candidate. Example: "Nixon's the One," "Carter '76," "Reagan/Bush." 100.22. "Reasonable Person" Test In the absence of such "magic words," express advocacy is also considered to be present in a communication that, when taken as a whole and with limited reference to external events, can only be interpreted by a "reasonable person" as advocating the election or defeat of one or more clearly identified federal candidates. 100.22(b), (c) and (d).4 Independent Expenditures An independent expenditure is an expenditure for a communication that expressly advocates the election or defeat of a clearly identified candidate and is not made with the cooperation or prior consent of, or in consultation with or at the suggestion of, any candidate, authorized committee or agent of a candidate. 100.16; 109.1(a); 109.3. Coordinated Party Expenditures Coordinated party expenditures are expenditures made by national or state party committees on behalf of their nominees in connection with the general election. Such expenditures may be coordinated with the candidate, but are reported only by the party committee that makes the expenditure. These expenditures are subject to a special monetary limit. 2 U.S.C. 441a(d); 110.11(a)(2)(i). Exempt Party Activities State and local party committees may engage in certain candidate-support activities without making a contribution or expenditure, provided specific rules are followed. These "exempt" party activities refer to the three types of communications listed below: * Registration and get-out-the-vote drives on behalf of the Presidential ticket; * Distribution of campaign materials by volunteers on behalf of federal candidates; and * Slate cards listing at least 3 candidates for public office. 100.7(b)(9), (15), and (17); 100.8(b)(10), (16) and (18). Wording of Disclaimer Notices The actual wording of the disclaimer depends on the type of communication, as explained below. In each example given, it is presumed that the ad was distributed through public political advertising and that it included either express advocacy or a solicitation for contributions in connection with a federal election. Messages Authorized and Financed by the Candidate On a communication that is authorized and paid for by a candidate, or his/her campaign committee, the disclaimer notice must identify who paid for the message. 110.11(a)(1)(i). Example: "Paid for by the Sheridan for Congress Committee." Messages Authorized but Not Financed by the Candidate On a communication that is authorized by a candidate, or his/her campaign committee, but is paid for by another person, the disclaimer notice must identify who paid for and who authorized the message. 110.11(a)(1)(ii). Example: "Paid for by the XYZ State Party Committee and authorized by the Sheridan for Congress Committee."5 Messages Not Authorized by the Candidate On a communication made in support of (or in opposition to) a candidate, but that is not authorized by the candidate or his/her campaign committee, the disclaimer notice must identify who paid for the message and state that it was not authorized by any candidate or candidate's committee. 110.11(a)(1)(iii). Example: "Paid for by the QRS Committee and not authorized by any candidate or candidate's committee." Party or Nonconnected PAC Fundraising On a solicitation directed to the general public on behalf of a nonconnected PAC or party committee, the disclaimer notice must identify who paid for the message. The notice need not indicate who authorized it as long as the message does not support or oppose any particular candidate. 110.11(a)(1)(iv). Example: "Paid for by the QRS Committee." Coordinated Party Expenditures Pre-nomination Period On a communication that is made as a coordinated party expenditure before a nominee is chosen, the disclaimer notice must identify the committee that paid for the message. 110.11(a)(2). Example: "Paid for by the XYZ State Party Committee." Post-nomination Period Once a candidate has been nominated for the general election, the disclaimer notice must also state who authorized the ad. Example: "Paid for by the XYZ State Party Committee and authorized by the Sheridan for Congress Committee." The committee that actually makes the expenditure is considered to be the person who paid for the communication even when the committee is acting as the designated agent of a different party committee. Exempt Party Activities On exempt activity communications (for example, campaign materials) the disclaimer notice must identify the committee that paid for the message. 110.11(a)(4). Example: "Paid for by the XYZ State Party Committee." Placement of Disclaimer Notices In order to give the reader sufficient notice about the person(s) paying for or authorizing an ad, the disclaimer notice must be presented in a "clear and conspicuous" manner. This means that the language of the notice is not difficult to read and the notice itself is not easily overlooked. 110.11(a)(5). Specific examples are described below. Printed Materials As long as the disclaimer appears somewhere within the communication, it does not have to appear on the front page or cover of multiple-paged documents. However, in the case of single-sided documents and billboards, the disclaimer must appear on the front. 110.11(a)(5)(i). Packaged Materials When communications are distributed in a package or as a group, a committee must evaluate each item separately in order to determine whether a disclaimer notice is required on that item. A message or ad that would require a disclaimer notice if it were distributed separately must still display the notice when it is included in a package of materials. 110.11(a)(5)(ii). Example: A campaign poster is mailed with a campaign brochure and solicitation letter. A disclaimer notice must appear on each of these items. Televised Communications A disclaimer notice for a televised advertisement must appear in letters no smaller than four (4) percent of the vertical picture height. The notice must also air for at least four (4) seconds.6 110.11(a)(5)(iii). When a Disclaimer Notice is Not Required Although the FEC recommends that disclaimer notices be included on all campaign materials, the notices are not required in the following situations. Message Lacks Express Advocacy or Fundraising Element Communications without a fundraising or express advocacy message are not required to include a disclaimer notice. Public Political Advertising Not Used A disclaimer notice is not required for communications that are distributed through means other than television, radio, cable, the Internet, newspapers, magazines, direct mailings or other forms of public political advertising. (See definition of Public Political advertising) Disclaimer Placement is Inconvenient In situations where a disclaimer notice cannot be conveniently printed, the notice is not required. This provision affects items such as pens, bumper stickers, campaign pins, campaign buttons and similar small items. Further, a disclaimer notice is not required for communications using skywriting, clothing, watertowers or other forms of advertisement where it would be impracticable to display the disclaimer notice. 110.11(a)(6)(i) and (ii). Internal Corporate/Labor Communications A disclaimer notice is not required for solicitations or communications made by a separate segregated fund or connected organization to its "restricted class."7 110.11(a)(7). Materials Used for Administrative Purposes Only A disclaimer notice is not required on checks, receipts or similar items of minimal value that do not include a political message and are used only for administrative purposes. 110.11(a)(6)(iii). "Best Efforts" Notification Content To satisfy the "best efforts" standard,8 a political committee must include a statement on its solicitations explaining that it is required to use its best efforts to obtain and report certain information from the contributor. This statement is referred to as the "best efforts" notification; two examples are listed below: * Federal law requires us to use our best efforts to collect and report the name, mailing address, occupation and name of employer of individuals whose contributions exceed $200 in a calendar year, or * To comply with Federal law, we must use our best efforts to obtain, maintain, and submit the name, mailing address, occupation and name of employer of individuals whose contributions exceed $200 per calendar year. "Clear and Conspicuous" The best efforts notification must be clear and conspicuous on both the committee's solicitations and response materials. The notice will not be considered to be "clear and conspicuous" if: * The notification language is printed in smaller type than the language of the solicitation and response materials; * The printing is difficult to read; or * The notification is placed where it can be easily overlooked. 104.7(b)(1). IRS Disclosure Requirements Under the Internal Revenue Service Code (26 U.S.C. �6113), political committees whose gross annual receipts normally exceed $100,000 are required to include a special notice on fundraising materials, informing potential contributors that their contributions are not tax deductible. For more information, contact the IRS at (800) 829-3676 or (202) 622-7352. ------------------------------------------------------------------------ 1. This brochure serves as the small entity compliance guide to Commission regulations regarding Political Ads and Solicitations, as required by section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996, Pub. L. No. 104-121, Title II, 110 Stat. 857 (1996). 2. Please note that the FEC recommends placing disclaimer notices on all campaign materials. 3. This term differs in meaning from "direct mail," which is defined separately under FEC regulations. (See 100.7(b)(15)(i), (16) and (17)(i), 100.8(b)(16)(i), (17) and (18)(i) and 110.14(f)(4).) 4. In 1996, the decision by the U.S. Court of Appeals for the First Circuit in Maine Right to Life Committee v. FEC, (98 F.3d 1(1st Cir.1996)) invalidated an FEC regulation containing this "reasonable person" test. The test was based on a 9th Circuit Court of Appeals decision in FEC v. Furgatch, 807 F.2d 857 (9th Cir. 1987). The split in the circuits on the validity of this regulation remains unresolved. However, a petition for Supreme Court review of the First Circuit decision has been filed on behalf of the Commission. 5. Please note that for communications listing several candidates, the disclaimer notice may state that the message was authorized by the candidates identified in the message or, if only certain candidates have authorized it, by those candidates identified with an asterisk (AO 1994-13). 6. For additional information on broadcast advertising (e.g., radio, TV), please contact the Federal Communications Commission at (202) 418-1440 or (202) 418-7096 (for cable broadcasts). 7. The restricted class includes the executive and administrative personnel of the organization, its stockholders, its members (noncorporate) and their families. (See 11 CFR 114.5(g)(1) and (2); 114.7(a) and (c).) 8. A committee's reports will be considered in compliance with the Act when the treasurer can demonstrate that "best efforts" were used to obtain, maintain and submit the required information. In addition to including the "best efforts" notification on the solicitation, the committee treasurer must: * Ensure that a clear request for contributor information occurs in the initial solicitation; * Make at least one follow-up effort to obtain the information within 30 days of the contribution's receipt (either in writing or orally documented in writing); * Report the missing information (using the treasurer's records if necessary); and * File the appropriate amendments or memo schedules to disclose previously unreported information. (See 11 CFR 104.7 for additional details.) THE ACTUAL LAW From: http://frwebgate.access.gpo.gov/cgi-bin/ get-cfr.cgi?TITLE=11&PART=110&SECTION=11&YEAR=2000&TYPE=TEXT [Code of Federal Regulations] [Title 11, Volume 1, All Parts] [Revised as of January 1, 2000] >From the U.S. Government Printing Office via GPO Access [CITE: 11CFR110.11] [Page 135-137] TITLE 11--FEDERAL ELECTIONS CHAPTER I--FEDERAL ELECTION COMMISSION PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS--Table of Contents Sec. 110.11 Communications; advertising (2 U.S.C. 441d). (a)(1) General rules. Except as provided at paragraph (a)(6) of this section, whenever any person makes an expenditure for the purpose of financing a communication that expressly advocates the election or defeat of a clearly identified candidate, or that solicits any contribution, through any broadcasting station, newspaper, magazine, outdoor advertising facility, poster, yard sign, direct mailing or any other form of general public political advertising, a disclaimer meeting the requirements of paragraphs (a)(1) (i), (ii), (iii), (iv) or (a)(2) of this section shall appear and be presented in a clear and conspicuous manner to give the reader, observer or listener adequate notice of the identity of persons who paid for and, where required, who authorized the communication. (i) Such communication, including any solicitation, if paid for and authorized by a candidate, an authorized committee of a candidate, or its agent, shall clearly state that the communication has been paid for by the authorized political committee; or (ii) Such communication, including any solicitation, if authorized by a candidate, an authorized committee of a candidate or an agent thereof, but paid for by any other person, shall clearly state that the communication is paid for by such other person and is authorized by such candidate, authorized committee or agent; or (iii) Such communication, including any solicitation, if made on behalf of or in opposition to a candidate, but paid for by any other person and not authorized by a candidate, authorized committee of a candidate or its agent, shall clearly state that the communication has been paid for by such person and is not authorized by any candidate or candidate's committee. (iv) For solicitations directed to the general public on behalf of a political committee which is not an authorized committee of a candidate, such solicitation shall clearly state the full name [[Page 136]] of the person who paid for the communication. (2) Coordinated Party Expenditures. (i) For a communication paid for by a party committee pursuant to 2 U.S.C. 441a(d), the disclaimer required by paragraph (a)(1) of this section shall identify the committee that makes the expenditure as the person who paid for the communication, regardless of whether the committee was acting in its own capacity or as the designated agent of another committee. (ii) A communication made by a party committee pursuant to 2 U.S.C. 441a(d) prior to the date the party's candidate is nominated shall satisfy the requirements of this section if it clearly states who paid for the communication. (3) Definition of ``direct mailing.'' For purposes of paragraph (a)(1) of this section only, direct mailing includes any number of substantially similar pieces of mail but does not include a mailing of one hundred pieces or less by any person. (4) Exempt Activities. For purposes of paragraph (a)(1) of this section only, the term expenditure includes a communication by a candidate or party committee that qualifies as an exempt activity under 11 CFR 100.8(b)(10), (16), (17), or (18). Such communications, unless excepted under paragraph (a)(6) of this section, shall clearly state who paid for the communication but do not have to include an authorization statement. (5) Placement of Disclaimer. The disclaimers specified in paragraph (a)(1) of this section shall be presented in a clear and conspicuous manner, to give the reader, observer or listener adequate notice of the identity of the person or committee that paid for, and, where required, that authorized the communication. A disclaimer is not clear and conspicuous if the printing is difficult to read or if the placement is easily overlooked. (i) The disclaimer need not appear on the front or cover page of the communication as long as it appears within the communication, except on communications, such as billboards, that contain only a front face. (ii) Each communication that would require a disclaimer if distributed separately, that is included in a package of materials, must contain the required disclaimer. (iii) Disclaimers in a televised communication shall be considered clear and conspicuous if they appear in letters equal to or greater than four (4) percent of the vertical picture height that air for not less than four (4) seconds. (6) Exceptions. The requirements of paragraph (a)(1) of this section do not apply to: (i) Bumper stickers, pins, buttons, pens and similar small items upon which the disclaimer cannot be conveniently printed; (ii) Skywriting, watertowers, wearing apparel or other means of displaying an advertisement of such a nature that the inclusion of a disclaimer would be impracticable; or (iii) Checks, receipts and similar items of minimal value which do not contain a political message and which are used for purely administrative purposes. (7) Activities by separate segregated fund or its connected organization. For purposes of paragraph (a)(1) of this section, whenever a separate segregated fund or its connected organization solicits contributions to the fund from those persons it may solicit under the applicable provisions of 11 CFR part 114, or makes a communication to those persons, such communication shall not be considered a form of general public political advertising and need not contain the disclaimer set forth in paragraph (a)(1) of this section. (b)(1) No person who sells space in a newspaper or magazine to a candidate, an authorized committee of a candidate, or an agent of the candidate, for use in connection with the candidate's campaign for nomination or for election, shall charge an amount for the space which exceeds the comparable rate for the space for non-campaign purposes. (2) For purposes of this section, comparable rate means the rate charged to a national or general rate advertiser, and shall include discount privileges [[Page 137]] usually and normally available to a national or general rate advertiser. (2 U.S.C. 438(a)(8), 441a, 441d, 441e, 441f, 441g, 441h, 441i) [41 FR 35948, Aug. 25, 1976, as amended at 45 FR 15122, Mar. 7, 1980; 48 FR 8809, Mar. 2, 1983; 60 FR 52072, Oct. 5, 1995] ^ ^ ^ ^ Steven L. Clift - W: http://www.publicus.net Minneapolis - - - E: [EMAIL PROTECTED] Minnesota - - - - - T: +1.612.822.8667 USA - - - - - - - ICQ: 13789183 *** Please send submissions to: [EMAIL PROTECTED] *** *** To subscribe, e-mail: [EMAIL PROTECTED] *** *** Message body: SUB DO-WIRE *** *** To unsubscribe instead, write: UNSUB DO-WIRE *** *** Please forward this post to others and encourage *** *** them to subscribe to the free DO-WIRE service. ***
