The Free Speech Fairness Act

II 116TH CONGRESS 1ST SESSION S. 330 To amend the Internal Revenue Code of 1986 to allow charitable organiza- tions to make statements relating to political campaigns if such state- ments are made in the ordinary course of carrying out its tax exempt purpose. IN THE SENATE OF THE UNITED STATES FEBRUARY 5, 2019 Mr. LANKFORD introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow chari- table organizations to make statements relating to polit- ical campaigns if such statements are made in the ordi- nary course of carrying out its tax exempt purpose. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as ‘‘The Free Speech Fairness 4 Act’’. 5 VerDate Sep 11 2014 20:24 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S330.IS S330 pbinns on DSK79D2C42PROD with BILLS 2 •S 330 IS SEC. 2. ALLOWING 501(c)(3) ORGANIZATION TO MAKE 1 STATEMENTS RELATING TO POLITICAL CAM- 2 PAIGN IN ORDINARY COURSE OF CARRYING 3 OUT ITS TAX EXEMPT PURPOSE. 4 (a) IN GENERAL.—Section 501 of the Internal Rev- 5 enue Code of 1986 is amended by adding at the end the 6 following new subsection: 7 ‘‘(s) SPECIAL RULE RELATING TO POLITICAL CAM- 8 PAIGN STATEMENTS OF ORGANIZATION DESCRIBED IN 9 SUBSECTION (c)(3).— 10 ‘‘(1) IN GENERAL.—For purposes of subsection 11 (c)(3) and sections 170(c)(2), 2055, 2106, 2522, 12 and 4955, an organization shall not fail to be treat- 13 ed as organized and operated exclusively for a pur- 14 pose described in subsection (c)(3), nor shall it be 15 deemed to have participated in, or intervened in any 16 political campaign on behalf of (or in opposition to) 17 any candidate for public office, solely because of the 18 content of any statement which— 19 ‘‘(A) is made in the ordinary course of the 20 organization’s regular and customary activities 21 in carrying out its exempt purpose, and 22 ‘‘(B) results in the organization incurring 23 not more than de minimis incremental ex- 24 penses.’’. 25 VerDate Sep 11 2014 20:24 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S330.IS S330 pbinns on DSK79D2C42PROD with BILLS 3 •S 330 IS (b) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years ending after the 2 date of the enactment of this Act. 3 Æ VerDate Sep 11 2014 20:24 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S330.IS S330 pbinns on DSK79D2C42PROD with BILLS