Federal Election Campaign Act (1971)
10 July 2006Federal Election Campaign Act (1971), 2 U.S.C. §§431-455
Coverage and Prohibition: The Act limits the means that a corporate employer may use to solicit contributions from employees for the employer’s political fund. The Act also makes it unlawful for any corporation to make a contribution or expenditure in connection with any election in which citizens vote for presidential and vice-presidential electors or a Senator or Representative in Congress. Contributions and expenditures are prohibited in connection with any primary election or political convention or caucus held to select candidates for any such office. Corporations are permitted by the Act to establish a separate segregated fund that may be utilized for political purposes. Note that, while this Act applies to election for federal office, many states have similar statutes limiting the contributions of corporations in state and local elections.
Enforcement: The Act is enforced by the Federal Election Commission (”FEC”), which receives and monitors reports from campaign committees and may investigate cases of improper contributions and expenditures. The Commission is empowered to initiate civil actions or to refer apparent violations to the Attorney General for prosecution. There is no private right of action by individual employees or shareholders for damages related to a corporation’s contributions or expenditures.
Remedies: A person who knowingly and willfully violates the Act through contributions or expenditures aggregating $2,000 or more, but less than $25,000, in any calendar year may be subject to a fine, imprisonment for not more than a year, or both. Violations involving more than $25,000 may result in a prison term of up to 5 years, fines, or both.
Related Regulations:
FEC: Corporate and Labor Organization Activity, 11 C.F.R. Part 114.
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