seec: Nesting Dolls provisions

Nesting Dolls” Provision Relating to Covered Transfers

Communications which require the top five donors to be revealed may also trigger the so-called “nesting dolls” provision.  General Statutes § 9-621 (j).  When a “top five” donor identified in the attribution is not an individual but is instead a group that has itself received covered transfers, there may be some additional disclosure regarding the top five funding sources for that entity. 

If a top five donor listed in the communication accepts covered transfers, then the filer of the SEEC Form 20, 40 or 26 in some instances must report the top five covered transferors of that donor.  This provision ensures disclosure of the source of any funds given to the person to be intentionally used on an independent expenditure.  In other words, a person cannot mask its intentions to make an independent expenditure by giving to another person and having that person make the actual expenditure.

There are broad exemptions to this second level of covered transfer disclosure for: (1) all organizations recognized under Section 501 (c) (4) of Internal Revenue Code of 1986; and (2) makers of covered transfers identified in the attribution that accept covered transfers from at least one hundred different sources provided no such source accounts for ten percent or more of the covered transfers accepted by the recipient during the twelve-month period immediately prior to the primary or election.  General Statutes § 9-621 (j) (2) & (3).

Content Last Modified on 8/1/2014 3:22:17 PM