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Ban Dark Money in Ballot Initiatives
AKA “Prohibit Undisclosed Political Influence in State Ballot Measures”
Which agency/agencies promulgated the regulation? *
Federal Election Commission (FEC); Internal Revenue Service (IRS); model adoption by state ethics commissions
Rescind federal exemptions that permit anonymous or indirect funding in ballot initiative advocacy, including loopholes in 11 CFR Part 104 that allow shell PACs and 501(c)(4) organizations to obscure donor identities when influencing ballot measures.
—OPTIONAL--
Notice of Proposed Rulemaking
Exemptions permitting anonymous contributions and non-disclosure in ballot issue advocacy
Anonymous and shell-funded contributions have distorted democratic processes in ballot initiatives across many states. Federal disclosure rules must be modernized to reflect the outsized influence of untraceable political funding.
Federal Election Commission
1050 First Street NE
Washington, DC 20463
(202) 694-1100
Following Citizens United, unlimited funds have poured into ballot campaigns through nonprofit intermediaries and shell PACs. These campaigns often sway elections without disclosing the true source of their funding, particularly in state-level referenda where FEC oversight is limited
To preserve democratic integrity, all organizations engaging in ballot issue advocacy that exceed $10,000 in expenditures must disclose their top funders and organizational affiliations. Without visibility into financial influence, public trust is eroded and election outcomes distorted.
All entities spending more than $10,000 on ballot initiative advocacy—regardless of tax status—must disclose the identities of donors contributing more than $5,000 and the organization’s controlling affiliations. Disclosures must be made publicly available within 72 hours of ad placement or material distribution.
Vacant
Chair, Federal Election Commission