[Code of Federal Regulations]
[Title 11, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 11CFR114.14]

[Page 234-235]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 114_CORPORATE AND LABOR ORGANIZATION ACTIVITY--Table of Contents
 
Sec.  114.14  Further restrictions on the use of corporate and labor 

organization funds for electioneering communications.

    (a)(1) Corporations and labor organizations shall not give, 
disburse, donate or otherwise provide funds, the purpose of which is to 
pay for an electioneering communication, to any other person.
    (2) A corporation or labor organization shall be deemed to have 
given, disbursed, donated, or otherwise provided funds under paragraph 
(a)(1) of this section if the corporation or labor organization knows, 
has reason to know, or willfully blinds itself to the fact, that the 
person to whom the funds are given, disbursed, donated, or otherwise 
provided, intended to use them to pay for an electioneering 
communication.
    (b) Persons who accept funds given, disbursed, donated or otherwise 
provided by a corporation or labor organization shall not:
    (1) Use those funds to pay for any electioneering communication; or
    (2) Provide any portion of those funds to any person, for the 
purpose of defraying any of the costs of an electioneering 
communication.
    (c) The prohibitions at paragraphs (a) and (b) of this section shall 
not apply to funds disbursed by a corporation or labor organization, or 
received by a person, that constitute--
    (1) Salary, royalties, or other income earned from bona fide 
employment or other contractual arrangements, including pension or other 
retirement income;
    (2) Interest earnings, stock or other dividends, or proceeds from 
the sale of the person's stocks or other investments; or
    (3) Receipt of payments representing fair market value for goods 
provided or services rendered to a corporation or labor organization.
    (d)(1) Persons who receive funds from a corporation or a labor 
organization that do not meet the exceptions of paragraph (c) of this 
section must be able to demonstrate through a reasonable accounting 
method that no such

[[Page 235]]

funds were used to pay any portion of an electioneering communication.
    (2) Any person who wishes to pay for electioneering communications 
may, but is not required to, establish a segregated bank account into 
which it deposits only funds donated or otherwise provided by 
individuals, as described in 11 CFR part 104. Use of funds exclusively 
from such an account to pay for an electioneering communications shall 
satisfy paragraph (d)(1) of this section. Persons who use funds 
exclusively from such a segregated bank account to pay for an 
electioneering communication shall be required to only report the names 
and addresses of those individuals who donated or otherwise provided an 
amount aggregating $1,000 or more to the segregated bank account, 
aggregating since the first day of the preceding calendar year.

[67 FR 65212, Oct. 23, 2002]