H.R. 1399: Prior Approval Reform Act

This bill, titled the Prior Approval Reform Act, proposes amendments to the Federal Election Campaign Act of 1971 aimed at changing the way trade associations can solicit contributions from their member corporations. Below is a summary of the key provisions of the bill:

Key Provisions

• Amendment to Solicitation Regulations: The bill removes a requirement for prior approval from a corporation's executive or administrative personnel for trade associations to solicit contributions from the stockholders and personnel of their member corporations. This means that trade associations will no longer need to seek approval before asking for contributions.
• Effective Date: The changes made by this bill would take effect for solicitations made on or after January 1, 2025.

Impact on Trade Associations

The amendment is expected to ease the process by which trade associations can collect funds, as they will not need to obtain prior consent from corporations before soliciting contributions. This could potentially lead to an increase in contributions to trade associations, as the logistical barrier of seeking prior approval has been eliminated.

Context and Background

The original provisions requiring prior approval were designed to provide oversight on political contributions made by corporations. By amending these requirements, the bill reflects a shift toward facilitating fundraising efforts by trade associations, suggesting a legislative intent to encourage greater financial participation from member corporations.

Relevant Companies

None found