A trade association with corporate members seeking to expand political participation faces obstacles to growing its PAC. These PACs are allowed to solicit contributions from the stockholders and executive and administrative personnel, and their families, of the trade association’s corporate members, if the corporation has given prior written approval (a separate and specific approval of the solicitation) and has not approved a solicitation by any other trade association for the same year.
Last Congress saw a proposal to end the requirement, which apparently never had a highly-developed rationale, in the PAC Fairness Act of 2007. The proposal would have changed 2 U.S.C. 441b(b)(4)(D) as follows:
This paragraph shall not prevent a trade association or a separate segregated fund established by a trade association from soliciting contributions from the stockholders and executive or administrative personnel of the member corporations of such trade association and the families of such stockholders or personnel.
to the extent that such solicitation of such stockholders and personnel, and their families, has been separately and specifically approved by the member corporation involved, and such member corporation does not approve any such solicitation by more than one such trade association in any calendar year.