from the personal resources of corporate or union officials,
provided, of course, that the value of the funds given or spent are not
reimbursed or otherwise passed back to a corporate or a union fisc
such that the corporation or union would be engaging in conduct
prohibited by the statute.
As with all other FECA violations, to reach the level of a
Section 30118 criminal violation, the act had to have been committed
“willfully.” Absent direct evidence of such criminal intent (as
through a confession), a prosecution under Section 30118 will most
likely be successful when funds were diverted from a corporate
or union treasury and laundered in some fashion to a candidate or
when an entity using corporate or union funds to engage in election
activity coordinates its expenditures with a candidate.
(c) 52 U.S.C. § 30119: Prohibition on contributions by
government contractors
Section 30119 prohibits any person who is a signatory to, or
who is negotiating for, a contract to furnish material, equipment,
services, or supplies to the United States government, from making or
promising to make a contribution “for any political purpose.” It has
been construed by the FEC to reach only contributions for the
purpose of influencing the nomination or election of candidates for
federal office. See 11 C.F.R. § 115.2(a). The statute applies to all types
of businesses, including sole proprietorships, partnerships, and
corporations, and reaches gifts made from such entities’ business or
partnership assets. 56 With respect to partnerships, however, the FEC
has determined that Section 30119 does not prohibit contributions
made from the personal assets of the partners, provided of course, that
The D.C. Circuit reaffirmed that the ban on individual contractor contributions
furthers the government’s compelling interest in preventing quid pro quo corruption and the
appearance of corruption in an 11-0 en banc decision. See Wagner v. Fed. Election Comm’n,
793 F.3d 1 (D.C. Cir. 2015).
56
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