Section

[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR56.4911-2]

[Page 386-400]

TITLE 26--INTERNAL REVENUE

CHAPTER I--INTERNAL REVENUE SERVICE,
DEPARTMENT OF THE TREASURY
(Continued)

PART 56--PUBLIC CHARITY EXCISE TAXES--Table of Contents

Sec. 56.4911-2 Lobbying expenditures, direct lobbying communications, and grass roots lobbying communications.

(a) Lobbying expenditures--(1) In general. An electing public
charity's lobbying expenditures for a year are the sum of its
expenditures during that year for direct lobbying communications
(``direct lobbying expenditures'') plus its expenditures during that
year for grass roots lobbying communications (``grass roots
expenditures'').
(2) Overview of Sec. 56.4911-2 and the definitions of ``direct
lobbying communication'' and ``grass roots lobbying communication''.
Paragraph (b)(1) of this section defines the term ``direct lobbying
communication.'' Paragraph (b)(2) of this section provides the general
definition of the term ``grass roots lobbying communication.'' (But also
see paragraph (b)(5) of this section (special rebuttable presumption
regarding certain paid mass media communications) and Sec. 56.4911-5
(special, more lenient, definitions for certain communications from an
electing public charity to its bona fide members)). Paragraph (b)(3) of
this section lists and cross-references various exceptions to the
definitions set forth in paragraphs (b) (1) and (2) (the text of the
exceptions, along with relevant definitions and examples, is generally
set forth in paragraph (c)). Paragraph (b)(4) of this section contains
numerous examples illustrating the application of paragraphs (b) (1),
(2) and (3). As mentioned above, paragraph (b)(5) of this section sets
forth the special rebuttable presumption regarding a limited number of
paid mass media communications about highly publicized legislation.
Paragraph (d) of this section contains definitions of (and examples
illustrating) various terms used in this section.
(b) Influencing legislation: direct and grass roots lobbying
communications defined--(1) Direct lobbying communication--(i)
Definition. A direct lobbying communication is any attempt to influence
any legislation through communication with:
(A) Any member or employee of a legislative body; or
(B) Any government official or employee (other than a member or
employee of a legislative body) who may participate in the formulation
of the legislation, but only if the principal purpose of the
communication is to influence legislation.
(ii) Required elements. A communication with a legislator or
government

[[Page 387]]

official will be treated as a direct lobbying communication under this
Sec. 56.4911-2(b)(1) if, but only if, the communication:
(A) Refers to specific legislation (see paragraph (d)(1) of this
section for a definition of the term ``specific legislation''); and
(B) Reflects a view on such legislation.
(iii) Special rule for referenda, ballot initiatives or similar
procedures. Solely for purposes of this section 4911, where a
communication refers to and reflects a view on a measure that is the
subject of a referendum, ballot initiative or similar procedure, the
general public in the State or locality where the vote will take place
constitutes the legislative body, and individual members of the general
public area, for purposes of this paragraph (b)(1), legislators.
Accordingly, if such a communication is made to one or more members of
the general public in that state or locality, the communication is a
direct lobbying communication (unless it is nonpartisan analysis, study
or research (see paragraph (c)(1) of this section).
(2) Grass roots lobbying communication--(i) Definition. A grass
roots lobbying communication is any attempt to influence any legislation
through an attempt to affect the opinions of the general public or any
segment thereof.
(ii) Required elements. A communication will be treated as a grass
roots lobbying communication under this Sec. 56.4911-2(b)(2)(ii) if, but
only if, the communication:
(A) Refers to specific legislation (see paragraph (d)(1) of this
section for a definition of the term ``specific legislation'');
(B) Reflects a view on such legislation; and
(C) Encourages the recipient of the communication to take action
with respect to such legislation (see paragraph (b)(2)(iii) of this
section for the definition of encouraging the recipient to take action.

For special, more lenient rules regarding an organization's
communications directed only or primarily to bona fide members of the
organization, see Sec. 56.4911-5. For special rules regarding certain
paid mass media advertisements about highly publicized legislation, see
paragraph (b)(5) of this section. For special rules regarding lobbying
on referenda, ballot initiatives and similar procedures, see paragraph
(b)(1)(iii) of this section).
(iii) Definition of encouraging recipient to take action. For
purposes of this section, encouraging a recipient to take action with
respect to legislation means that the communication:
(A) States that the recipient should contact a legislator or an
employee of a legislative body, or should contact any other government
official or employee who may participate in the formulation of
legislation (but only if the principal purpose of urging contact with
the government official or employee is to influence legislation);
(B) States the address, telephone number, or similar information of
a legislator or an employee of a legislative body;
(C) Provides a petition, tear-off postcard or similar material for
the recipient to communicate with a legislator or an employee of a
legislative body, or with any other government official or employee who
may participate in the formulation of legislation (but only if the
principal purpose of so facilitating contact with the government
official or employee is to influence legislation); or
(D) Specifically identifies one or more legislators who will vote on
the legislation as: opposing the communication's view with respect to
the legislation; being undecided with respect to the legislation; being
the recipient's representative in the legislature; or being a member of
the legislative committee or subcommittee that will consider the
legislation. Encouraging the recipient to take action under this
paragraph (b)(2)(iii)(D) does not include naming the main sponsor(s) of
the legislation for purposes of identifying the legislation.
(iv) Definition of directly encouraging recipient to take action.
Communications described in one or more of paragraphs (b)(2)(iii) (A)
through (C) of this section not only ``encourage,'' but also ``directly
encourage'' the recipient to take action with respect to legislation.

[[Page 388]]

Communications described in paragraph (b)(2)(iii)(D) of this section,
however, do not directly encourage the recipient to take action with
respect to legislation. Thus, a communication would encourage the
recipient to take action with respect to legislation, but not directly
encourage such action, if the communication does no more than identify
one or more legislators who will vote on the legislation as: opposing
the communication's view with respect to the legislation; being
undecided with respect to the legislation; being the recipient's
representative in the legislature; or being a member of the legislative
committee or subcommittee that will consider the legislation.
Communications that encourage the recipient to take action with respect
to legislation but that do not directly encourage the recipient to take
action with respect to legislation may be within the exception for
nonpartisan analysis, study or research (se paragraph (c)(1) of this
section) and thus not be grass roots lobbying communications.
(v) Subsequent lobbying use of nonlobbying communications or
research materials--(A) Limited effect of application. Even though
certain communications or research materials are initially not grass
roots lobbying communications under the general definition set forth in
paragraph (b)(2)(ii) of this section, subsequent use of the
communications or research materials for grass roots lobbying may cause
them to be treated as grass roots lobbying communications. This
paragraph (b)(2)(v) does not cause any communications or research
materials to be considered direct lobbying communications.
(B) Limited scope of application. Under this paragraph (b)(2)(v),
only ``advocacy communications or research materials'' are potentially
treated as grass roots lobbying communications. Communications or
research materials that are not ``advocacy communications or research
materials'' are not treated as grass roots lobbying communications under
this paragraph (b)(2)(v). ``Advocacy communications or research
materials'' are any communications or materials that both refer to and
reflect a view on specific legislation but that do not, in their initial
format, contain a direct encouragement for recipients to take action
with respect to legislation.
(C) Subsequent use in lobbying. Where advocacy communications or
research materials are subsequently accompanied by a direct
encouragement for recipients to take action with respect to legislation,
the advocacy communications or research materials themselves are treated
as grass roots lobbying communications unless the organization's primary
purpose in undertaking or preparing the advocacy communications or
research materials was not for use in lobbying. In such a case, all
expenses of preparing and distributing the advocacy communications or
research materials will be treated as grass roots expenditures.
(D) Time limit on application of subsequent use rule. The
characterization of expenditures as grass roots lobbying expenditures
under paragraph (b)(2)(v)(C) shall apply only to expenditures paid less
than six months before the first use of the advocacy communications or
research materials with a direct encouragement to action.
(E) Safe harbor in determining ``primary purpose''. The primary
purpose of the organization in undertaking or preparing advocacy
communications or research materials will not be considered to be for
use in lobbying if, prior to or contemporaneously with the use of the
advocacy communications or research materials with the direct
encouragement to action, the organization makes a substantial
nonlobbying distribution of the advocacy communications or research
materials (without the direct encouragement to action). Whether a
distribution is substantial will be determined by reference to all of
the facts and circumstances, including the normal distribution pattern
of similar nonpartisan analyses, studies or research by that and similar
organizations.
(F) Special rule for partisan analysis, study or research. In the
case of advocacy communications or research materials that are not
nonpartisan analysis, study or research, the nonlobbying distribution
thereof will not be considered ``substantial'' unless that distribution
is at least as extensive as the lobbying distribution thereof.

[[Page 389]]

(G) Factors considered in determining primary purpose. Where the
nonlobbying distribution of advocacy communications or research
materials is not substantial, all of the facts and circumstances must be
weighed to determine whether the organization's primary purpose in
preparing the advocacy communications or research materials was for use
in lobbying. While not the only factor, the extent of the organization's
nonlobbying distribution of the advocacy communications or research
materials is particularly relevant, especially when compared to the
extent of their distribution with the direct encouragement to action.
Another particularly relevant factor is whether the lobbying use of the
advocacy communications or research materials is by the organization
that prepared the document, a related organization, or an unrelated
organization. Where the subsequent lobbying distribution is made by an
unrelated organization, clear and convincing evidence (which must
include evidence demonstrating cooperation or collusion between the two
organizations) will be required to establish that the primary purpose
for preparing the communication for use in lobbying.
(H) Examples. The provisions of this paragraph (b)(2)(v) are
illustrated by the following examples:

Example (1). Assume a nonlobbying ``report'' (that is not
nonpartisan analysis, study or research) is prepared by an organization,
but distributed to only 50 people. The report, in that format, refers to
and reflects a view on specific legislation but does not contain a
direct encouragement for the recipients to take action with respect to
legislation. Two months later, the organization sends the report to
10,000 people along with a letter urging recipients to write their
Senators about the legislation discussed in the report. Because the
report's nonlobbying distribution is not as extensive as its lobbying
distribution, the report's nonlobbying distribution is not substantial
for purposes of this paragraph (b)(2)(v). Accordingly, the
organization's primary purpose in preparing the report must be
determined by weighing all of the facts and circumstances. In light of
the relatively minimal nonlobbying distribution and the fact that the
lobbying distribution is by the preparing organization rather than by an
unrelated organization, and in the absence of evidence to the contrary,
both the report and the letter are grass roots lobbying communications.
Assume that all costs of preparing the report were paid within the six
months preceding the mailing of the letter. Accordingly, all of the
organization's expenditures for preparing and mailing the two documents
are grass roots lobbying expenditures.
Example (2). Assume the same facts as in Example (1), except that
the costs of the report are paid over the two month period of January
and February. Between January 1 and 31, the organization pays $1,000 for
the report. In February, the organization pays $500 for the report.
Further assume that the report is first used with a direct encouragement
to action on August 1. Six months prior to August 1 is February 1.
Accordingly, no costs paid for the report before February 1 are treated
as grass roots lobbying expenditures under the subsequent use rule.
Under these facts, the subsequent use rule treats only the $500 paid for
the report in February as grass roots lobbying expenditures.

(3) Exceptions to the definition of influencing legislation. In many
cases, a communication is not a direct or grass roots lobbying
communication under paragraph (b)(1) or (b)(2) of this section if it
falls within one of the exceptions listed in paragraph (c) of this
section. See paragraph (c)(1), Nonpartisan analysis, study or research;
paragraph (c)(2), Examinations and discussions of broad social, economic
and similar problems; paragraph (c)(3), Requests for technical advice;
and paragraph (c)(4), Communications pertaining to self-defense by the
organization. In addition, see Sec. 56.4911-5, which provides special
rules regarding the treatment of certain lobbying communications
directed in whole or in part to members of an electing public charity.
(4) Examples. This paragraph (b)(4) provides examples to illustrate
the rules set forth in the section regarding direct and grass roots
lobbying. The expenditure test election under section 501(h) is assumed
to be in effect for all organizations discussed in the examples in this
paragraph (b)(4). In addition, it is assumed that the special rules of
Sec. 56.4911-5, regarding certain of a public charity's communications
with its members, do not apply to any of the examples in this paragraph
(b)(4).
(i) Direct lobbying. The provisions of this section regarding direct
lobbying communications are illustrated by the following examples:

[[Page 390]]

Example (1). Organization P's employee, X, is assigned to approach
members of Congress to gain their support for a pending bill. X drafts
and P prints a position letter on the bill. P distributes the letter to
members of Congress. Additionally, X personally contacts several members
of Congress or their staffs to seek support for P's position on the
bill. The letter and the personal contacts are direct lobbying
communications.
Example (2). Organization M's president writes a letter to the
Congresswoman representing the district in which M is headquartered,
requesting that the Congresswoman write an administrative agency
regarding proposed regulations recently published by that agency. M's
president also requests that the Congresswoman's letter to the agency
state the Congresswoman's support of M's application for a particular
type of permit granted by the agency. The letter written by M's
president is not a direct lobbying communication.
Example (3). Organization Z prepares a paper on a particular state's
environmental problems. The paper does not reflect a view on any
specific pending legislation or on any specific legislative proposal
that Z either supports or opposes. Z's representatives give the paper to
a state legislator. Z's paper is not a direct lobbying communication.
Example (4). State X enacts a statute that requires the licensing of
all day care providers. Agency B in State X is charged with preparing
rules to implement the bill enacted by State X. One week after enactment
of the bill, organization C sends a letter to Agency B providing
detailed proposed rules that organization C suggests to Agency B as the
appropriate standards to follow in implementing the statute on licensing
of day care providers. Organization C's letter to Agency B is not a
lobbying communication.
Example (5). Organization B researches, prepares and prints a code
of standards of minimum safety requirements in an area of common
electrical wiring. Organization B sells the code of standards booklet to
the public and its is widely used by professional in the installation of
electrical wiring. A number of states have codified all, or part, of the
code of standards as mandatory safety standards. On occasion, B lobbies
state legislators for passage of the code of standards for safety
reasons. Because the primary purpose of preparing the code of standards
was the promotion of public safety and the standards were specifically
used in a profession for that purpose, separate from any legislative
requirement, the research, preparation, printing and public distribution
of the code of standards is not an expenditure for a direct (or grass
roots) lobbying communication. Costs, such as transportation,
photocopying, and other similar expenses, incurred in lobbying state
legislators for passage of the code of standards into law are
expenditures for direct lobbying communications.
Example (6). On the organization's own initiative, representatives
of Organization F present written testimony to a Congressional
committee. The news media report on the testimony of Organization F,
detailing F's opposition to a pending bill. The testimony is a direct
lobbying communication but is not a grass roots lobbying communication.
Example (7). Organization R's monthly newsletter contains an
editorial column that refers to and reflects a view on specific pending
bills. R sends the newsletter to 10,000 nonmember subscribers. Senator
Doe is among the subscribers. The editorial column in the newsletter
copy sent to Senator Doe is not a direct lobbying communication because
the newsletter is sent to Senator Doe in her capacity as a subscriber
rather than her capacity as a legislator. (Note, though, that the
editorial column may be a grass roots lobbying communication if it
encourages recipients to take action with respect to the pending bills
it refers to and on which it reflects a view).
Example (8). Assume the same facts as in Example (7), except that
one of Senator Doe's staff members sees Senator Doe's copy of the
editorial and writes to R requesting additional information. R responds
with a letter that refers to and reflects a view on specific
legislation. R's letter is a direct lobbying communication unless it is
within one of the exceptions set forth in paragraph (c) of this section
(such as the exception for nonpartisan analysis, study or research).
(R's letter is not within the scope of the exception for responses to
written requests from a legislative body or committee for technical
advice (see paragraph (c)(3) of this section) because the letter is not
in response to a written request from a legislative body or committee).

(ii) Grass roots lobbying. The provisions of this section regarding
grass roots lobbying communications are illustrated in paragraph
(b)(4)(ii)(A) of this section by examples of communications that are not
grass roots lobbying communications and in paragraph (b)(4)(ii)(B) by
examples of communications that are grass roots lobbying communications.
The provisions of this section are further illustrated in paragraph
(b)(4)(ii)(C), with particular regard to the exception for nonpartisan
analysis, study, or research:
(A) Communications that are not grass roots lobbying communications.

Example (1). Organization L places in its newsletter an article that
asserts that lack of new capital is hurting State W's economy.

[[Page 391]]

The article recommends that State W residents either invest more in
local businesses or increase their savings so that funds will be
available to others interested in making investments. The article is an
attempt to influence opinions with respect to a general problem that
might receive legislative attention and is distributed in a manner so as
to reach and influence many individuals. However, the article does not
refer to specific legislation that is pending in a legislative body, nor
does the article refer to a specific legislative proposal the
organization either supports or opposes. The article is not a grass
roots lobbying communication.
Example (2). Assume the same facts as Example (1), except that the
article refers to a bill pending in State W's legislature that is
intended to provide tax incentives for private savings. The article
praises the pending bill and recommends that it be enacted. However, the
article does not encourage readers to take action with respect to the
legislation. The article is not a grass roots lobbying communication.
Example (3). Organization B sends a letter to all persons on its
mailing list. The letter includes an update on numerous environmental
issues with a discussion of general concerns regarding pollution,
proposed federal regulations affecting the area, and several pending
legislative proposals. The letter endorses two pending bills and opposes
another pending bill, but does not name any legislator involved (other
than the sponsor of one bill, for purposes of identifying the bill), nor
does it otherwise encourage the reader to take action with respect to
the legislation. The letter is not a grass roots lobbying communication.
Example (4). A pamphlet distributed by organization Z discusses the
dangers of drugs and encourages the public to send their legislators a
coupon, printed with the statement ``I support a drug-free America.''
The term ``drug-free America'' is not widely identified with any of the
many specific pending legislative proposals regarding drug issues. The
pamphlet does not refer to any of the numerous pending legislative
proposals, nor does the organization support or oppose a specific
legislative proposal. The pamphlet is not a grass roots lobbying
communication.
Example (5). A pamphlet distributed by organization B encourages
readers to join an organization and ``get involved in the fight against
drugs.'' The text states, in the course of a discussion of several
current drug issues, that organization B supports a specific bill before
Congress that would establish an expanded drug control program. The
pamphlet does not encourage readers to communicate with legislators
about the bill (such as by including the names of undecided or opposed
legislators). The pamphlet is not a grass roots lobbying communication.
Example (6). Organization E, an environmental organization,
routinely summarizes in each edition of its newsletter the new
environment-related bills that have been introduced in Congress since
the last edition of the newsletter. The newsletter identifies each bill
by a bill number and the name of the legislation's sponsor. The
newsletter also reports on the status of previously introduced
environment-related bills. The summaries and status reports do not
encourage recipients of the newsletter to take action with respect to
legislation, as described in paragraphs (b)(2)(iii) (A) through (D) of
this section. Although the summaries and status reports refer to
specific legislation and often reflect a view on such legislation, they
do not encourage the newsletter recipients to take action with respect
to such legislation. The summaries and status reports are not grass
roots lobbying communications.
Example (7). Organization B prints in its newsletter a report on
pending legislation that B supports, the Family Equity bill. The report
refers to and reflects a view on the Family Equity bill, but does not
directly encourage recipients to take action. Nor does the report
specifically identify any legislator as opposing the communication's
view on the legislation, as being undecided, or as being a member of the
legislative committee or subcommittee that will consider the
legislation. However, the report does state the following:
Rep. Doe (D-Ky.) and Rep. Roe (R-Ma.), both ardent supporters of the
Family Equity bill, spoke at B's annual convention last week. Both
encouraged B's efforts to get the Family Equity bill enacted and stated
that they thought the bill could be enacted even over a presidential
veto. B's legislative affairs liaison questioned others, who seemed to
agree with that assessment. For example, Sen. Roe (I-Ca.) said that he
thinks the bill will pass with such a large majority, ``the President
won't even consider vetoing it.''
Assume the newsletter, and thus the report, is sent to individuals
throughout the U.S., including some recipients in Kentucky,
Massachusetts and California. Because the report is distributed
nationally, the mere fact that the report identifies several legislators
by party and state as part of its discussion does not mean the report
specifically identifies the named legislators as the Kentucky,
Massachusetts and California recipients' representatives in the
legislature for purposes of paragraph (b)(2)(iii) of this section. The
report is not a grass roots lobbying communication.

(B) Communications that are grass roots lobbying communications.

Example (1). A pamphlet distributed by organization Y states that
the ``President's plan for a drug-free America,'' which will establish a
drug control program, should be

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passed. The pamphlet encourages readers to ``write or call your senators
and representatives and tell them to vote for the President's plan.'' No
legislative proposal formally bears the name ``President's plan for a
drug-free America,'' but that and similar terms have been widely used in
connection with specific legislation pending in Congress that was
initially proposed by the President. Thus, the pamphlet refers to
specific legislation, reflects a view on the legislation, and encourages
readers to take action with respect to the legislation. The pamphlet is
a grass roots lobbying communication.
Example (2). Assume the same facts as in Example (1), except that
the pamphlet does not encourage the public to write or call
representatives, but does list the members of the committee that will
consider the bill. The pamphlet is a grass roots lobbying communication.
Example (3). Assume the same facts as in Example (1), except that
the pamphlet encourages readers to ``write the President to urge him to
make the bill a top legislative priority'' rather than encouraging
readers to communicate with members of Congress. The pamphlet is a grass
roots lobbying communication.
Example (4). Organization B, a nonmembership organization, includes
in one of three sections of its newsletter an endorsement of two pending
bills and opposition to another pending bill and also identifies several
legislators as undecided on the three bills. The section of the
newsletter devoted to the three pending bills is a grass roots lobbying
communication.
Example (5). Organization D, a nonmembership organization, sends a
letter to all persons on its mailing list. The letter includes an
extensive discussion concluding that a significant increase in spending
for the Air Force is essential in order to provide an adequate defense
of the nation. Prior to a concluding fundraising request, the letter
encourages readers to write their Congressional representatives urging
increased appropriations to build the B-1 bomber. The letter is a grass
roots lobbying communication.
Example (6). The President nominates X for a position in the
President's cabinet. Organization Y disagrees with the views of X and
does not believe X has the necessary administrative capabilities to
effectively run a cabinet-level department. Accordingly, Y sends a
general mailing requesting recipients to write to four Senators on the
Senate Committee that will consider the nomination. The mailing is a
grass roots lobbying communication.
Example (7). Organization F mails letters requesting that each
recipient contribute money to or join F. In addition, the letters
express F's opposition to a pending bill that is to be voted upon by the
U.S. House of Representatives. Although the letters are form letters
sent as a mass mailing, each letter is individualized to report to the
recipient the name of the recipient's congressional representative. The
letters are grass roots lobbying communications.
Example (8). Organization C sends a mailing that opposes a specific
legislative proposal and includes a postcard addressed to the President
for the recipient to sign stating opposition to the proposal. The letter
requests that the recipient send to C a contribution as well as the
postcard opposing the proposal. C states in the letter that it will
deliver all the postcards to the White House. The letter is a grass
roots lobbying communication.

Example (1). The newsletter of an organization concerned with drug
issues is circulated primarily to individuals who are not members of the
organization. A story in the newsletter reports on the prospects for
passage of a specifically identified bill, stating that the organization
supports the bill. The newsletter story identifies certain legislators
as undecided, but does not state that readers should contact the
undecided legislators. The story does not provide a full and fair
exposition sufficient to qualify as nonpartisan analysis, study or
research. The newsletter story is a grass roots lobbying communication.
Example (2). Assume the same facts as in Example (1), except that
the newsletter story provides a full and fair exposition sufficient to
qualify as nonpartisan analysis, study or research. The newsletter story
is not a grass roots lobbying communication because it is within the
exception for nonpartisan analysis, study or research (since it does not
directly encourage recipients to take action).
Example (3). Assume the same facts as in Example (2), except that
the newsletter story explicitly asks readers to contact the undecided
legislators. Because the newsletter story directly encourages readers to
take action with respect to the legislation, the newsletter story is not
within the exception for nonpartisan analysis, study or research.
Accordingly, the newsletter story is a grass roots lobbying
communication.
Example (4). Assume the same facts as in Example (1), except that
the story does not identify any undecided legislators. The story is not
a grass roots lobbying communication.
Example (5). X organization places an advertisement that
specifically identifies and opposes a bill that X asserts would harm the
farm economy. The advertisement is not a mass media communication
described in paragraph (b)(5)(ii) of this section and does not directly
encourage readers to take action with respect to the bill. However, the

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advertisement does state that Senator Y favors the legislation. Because
the advertisement refers to and reflects a view on specific legislation,
and also encourages the readers to take action with respect to the
legislation by specifically identifying a legislator who opposes X's
views on the legislation, the advertisement is a grass roots lobbying
communication.
Example (6). Assume the same facts as in Example (5), except that
instead of identifying Senator Y as favoring the legislation, the
advertisement identifies the ``junior Senator from State Z'' as favoring
the legislation. The advertisement is a grass roots lobbying
communication.
Example (7). Assume the same facts as in Example (5), except that
instead of identifying Senator Y as favoring the legislation, the
advertisement states: ``Even though this bill will have a devastating
effect upon the farm economy, most of the Senators from the Farm Belt
states are inexplicably in favor of the bill.'' The advertisement does
not specifically identify one or more legislators as opposing the
advertisement's view on the bill in question. Accordingly, the
advertisement is not a grass roots lobbying communication because it
does not encourage readers to take action with respect to the
legislation.
Example (8). Organization V trains volunteers to go door-to-door to
seek signatures for petitions to be sent to legislators in favor of a
specific bill. The volunteers are wholly unreimbursed for their time and
expenses. The volunteers' costs (to the extent any are incurred) are not
lobbying or exempt purpose expenditures made by V (but the volunteers
may not deduct their out-of-pocket expenditures (see section 170(f)(6)).
When V asks the volunteers to contact others and urge them to sign the
petitions, V encourages those volunteers to take action in favor of the
specific bill. Accordingly, V's costs of soliciting the volunteers' help
and its costs of training the volunteers are grass roots expenditures.
In addition, the costs of preparing, copying, distributing, etc. the
petitions (and any other materials on the same specific subject used in
the door-to-door signature gathering effort), are grass roots
expenditures.

(5) Special rule for certain mass media advertisements--(i) In
general. A mass media advertisement that is not a grass roots lobbying
communication under the three-part grass roots lobbying definition
contained in paragraph (b)(2) of this section may be a grass roots
lobbying communication by virtue of paragraph (b)(5)(ii) of this
section. The special rule in paragraph (b)(5)(ii) generally applies only
to a limited type of paid advertisements that appear in the mass media.
(ii) Presumption regarding certain paid mass media advertisements
about highly publicized legislation. If within two weeks before a vote
by a legislative body, or a committee (but not a subcommittee) thereof,
on a highly publicized piece of legislation, an organization's paid
advertisement appears in the mass media, the paid advertisement will be
presumed to be a grass roots lobbying communication, but only if the
paid advertisement both reflects a view on the general subject of such
legislation and either: refers to the highly publicized legislation; or
encourages the public to communicate with legislators on the general
subject of such legislation. An organization can rebut this presumption
by demonstrating that the paid advertisement is a type of communication
regularly made by the organization in the mass media without regard to
the timing of legislation (that is, a customary course of business
exception) or that the timing of the paid advertisement was unrelated to
the upcoming legislative action. Notwithstanding the fact that an
organization successfully rebuts the presumption, a mass media
communication described in this paragraph (b)(5)(ii) is a grass roots
lobbying communication if the communication would be a grass roots
lobbying communication under the rules contained in paragraph (b)(2) of
this section.
(iii) Definitions--(A) Mass media. For purposes of this paragraph
(b)(5), the term ``mass media'' means television, radio, billboards and
general circulation newspapers and magazines. General circulation
newspapers and magazines do not include newspapers or magazines
published by an organization for which the expenditure test election
under section 501(h) is in effect, except where both: The total
circulation of the newspaper or magazine is greater than 100,000; and
fewer than one-half of the recipients are members of the organization
(as defined in Sec. 56.4911-5(f)).
(B) Paid advertisement. For purposes of this paragraph (b)(5), where
an electing public charity is itself a mass media publisher or
broadcaster, all portions of that organization's mass media publications
or broadcasts are treated as paid advertisements in the mass

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media, except those specific portions that are advertisements paid for
by another person. The term ``mass media'' is defined in paragraph
(b)(5)(iii)(A).
(C) Highly publicized. For purposes of this paragraph (b)(5),
``highly publicized'' means frequent coverage on television and radio,
and in general circulation newspapers, during the two weeks preceding
the vote by the legislative body or committee. In the case of state or
local legislation, ``highly publicized'' means frequent coverage in the
mass media that serve the State or local jurisdiction in question. Even
where legislation receives frequent coverage, it is ``highly
publicized'' only if the pendency of the legislation or the
legislation's general terms, purpose, or effect are known to a
significant segment of the general public (as opposed to the particular
interest groups directly affected) in the area in which the paid mass
media advertisement appears.
(iv) Examples. The special rule of this paragraph (b)(5) is
illustrated by the following examples. The expenditure test election
under section 501(h) is assumed to be in effect for all organizations
discussed in the examples in this paragraph (b)(5)(iv):

Example (1). Organization X places a television advertisement
advocating one of the President's major foreign policy initiatives, as
outlined by the President in a series of speeches and as drafted into
proposed legislation. The initiative is popularly known as ``the
President's World Peace Plan,'' and is voted upon by the Senate four
days after X's advertisement. The advertisement concludes: ``SUPPORT THE
PRESIDENT'S WORLD PEACE PLAN!'' The President's plan and position are
highly publicized during the two weeks before the Senate vote, as
evidenced by: coverage of the plan on several nightly television network
news program; more than one article about the plan on the front page of
a majority of the country's ten largest daily general circulation
newspapers; and an editorial about the plan in four of the country's ten
largest daily general circulation newspapers. Although the advertisement
does not encourage readers to contact legislators or other government
officials, the advertisement does refer to specific legislation and
reflect a view on the general subject of the legislation. The
communication is presumed to be a grass roots lobbying communication.
Example (2). Assume the same facts as in Example (1), except that
the advertisement appears three weeks before the Senate's vote on the
plan. Because the advertisement appears more than two weeks before the
legislative vote, the advertisement is not within the scope of the
special rule for mass media communications on highly publicized
legislation. Accordingly, the advertisement is a grass roots lobbying
communication only if it is described in the general definition
contained in paragraph (b)(2) of this section. Because the advertisement
does not encourage recipients to take action with respect to the
legislation in question, the advertisement is not a grass roots lobbying
communication.
Example (3). Organization Y places a newspaper advertisement
advocating increased government funding for certain public works
projects the President has proposed and that are being considered by a
legislative committee. The advertisement explains the President's
proposals and concludes: ``SUPPORT FUNDING FOR THESE VITAL PROJECTS!''
The advertisement does not encourage readers to contact legislators or
other government officials nor does it name any undecided legislators,
but it does name the legislation being considered by the committee. The
President's proposed funding of public works, however, is not highly
publicized during the two weeks before the vote: there has been little
coverage of the issue on nightly television network news programs, only
one front-page article on the issue in the country's ten largest daily
general circulation newspapers, and only one editorial about the issue
in the country's ten largest daily general circulation newspapers. Two
days after the advertisement appears, the committee votes to approve
funding of the projects. Although the advertisement appears less than
two weeks before the legislative vote, the advertisement is not within
the scope of the special rule for mass media communications on highly
publicized legislation because the issue of funding for public works
projects is not highly publicized. Thus, the advertisement is a grass
roots lobbying communication only if it is described in the general
definition contained in paragraph (b)(2) of this section. Because the
advertisement does not encourage recipients to take action with respect
to the legislation in question, the advertisement is not a grass roots
lobbying communication.
Example (4). Organization P places numerous advertisements in the
mass media about a bill being considered by the State Assembly. The bill
is highly publicized, as evidenced by numerous front-page articles,
editorials and letters to the editor published in the state's general
circulation daily newspapers, as well as frequent coverage of the bill
by the television and radio stations serving the state. The
advertisements run over a

[[Page 395]]

three week period and, in addition to showing pictures of a family being
robbed at gunpoint, say: ``The State Assembly is considering a bill to
make gun ownership illegal. This outrageous legislation would violate
your constitutional rights and the rights of other law-abiding citizens.
If this legislation is passed, you and your family will be criminals if
you want to exercise your right to protect yourselves.'' The
advertisements refer to and reflect a view on a specific bill but do not
encourage recipients to take action. Sixteen days after the last
advertisement runs, a State Assembly committee votes to defeat the
legislation. None of the advertisements is a grass roots lobbying
communication.
Example (5). Assume the same facts as in Example (4), except that it
is publicly announced prior to the advertising campaign that the
committee vote is scheduled for five days after the last advertisement
runs. Because of public pressure resulting from the advertising
campaign, the bill is withdrawn and no vote is ever taken. None of the
advertisements is a grass roots lobbying communication.

(c) Exceptions to the definitions of direct lobbying communication
and grass roots lobbying communication--(1) Nonpartisan analysis, study,
or research exception--(i) In general. Engaging in nonpartisan analysis,
study, or research and making available to the general public or a
segment or members thereof or to governmental bodies, officials, or
employees the results of such work constitute neither a direct lobbying
communication under Sec. 56.4911-2(b)(1) nor a grass roots lobbying
communication under Sec. 56.4911-2(b)(2).
(ii) Nonpartisan analysis, study, or research. For purposes of this
section, ``nonpartisan analysis, study, or research'' means an
independent and objective exposition of a particular subject matter,
including any activity that is ``educational'' within the meaning of
Sec. 1.501(c)(3)-1(d)(3). Thus, ``nonpartisan analysis, study, or
research'' may advocate a particular position or viewpoint so long as
there is a sufficiently full and fair exposition of the pertinent facts
to enable the public or an individual to form an independent opinion or
conclusion. The mere presentation of unsupported opinion, however, does
not qualify as ``nonpartisan analysis, study, or research''.
(iii) Presentation as part of a series. Normally, whether a
publication or broadcast qualifies as ``nonpartisan analysis, study, or
research'' will be determined on a presentation-by-presentation basis.
However, if a publication or broadcast is one of a series prepared or
supported by an electing organization and the series as a whole meets
the standards of paragraph (c)(1)(ii) of this section, then any
individual publication or broadcast within the series is not a direct or
grass roots lobbying communication even though such individual broadcast
or publication does not, by itself, meet the standards of paragraph
(c)(1)(ii) of this section. Whether a broadcast or publication is
considered part of a series will ordinarily depend upon all the facts
and circumstances of each particular situation. However, with respect to
broadcast activities, all broadcasts within any period of six
consecutive months will oridinarily be eligible to be considered as part
of a series. If an electing organization times or channels a part of a
series which is described in this paragraph (c)(1)(iii) in a manner
designed to influence the general public or the action of a legislative
body with respect to a specific legislative proposal, the expenses of
preparing and distributing such part of the analysis, study, or research
will be expenditures for a direct or grass roots lobbying
communications, as the case may be.
(iv) Making available results of nonpartisan analysis, study, or
research. An organization may choose any suitable means, including oral
or written presentations, to distribute the results of its nonpartisan
analysis, study, or research, with or without charge. Such means include
distribution of reprints of speeches, articles and reports; presentation
of information through conferences, meetings and discussions; and
dissemination to the news media, including radio, television and
newspapers, and to other public forums. For purposes of this paragraph
(c)(1)(iv), such communications may not be limited to, or be directed
toward, persons who are interested solely in one side of a particular
issue.
(v) Subsequent lobbying use of certain analysis, study or research.
Even though certain analysis, study or research is initially within the
exception for nonpartisan analysis, study or research,

[[Page 396]]

subsequent use of that analysis, study or research for grass roots
lobbying may cause that analysis, study or research to be treated as a
grass roots lobbying communication that is not within the exception for
nonpartisan analysis, study or research. This paragraph (c)(1)(v) does
not cause any analysis, study or research to be considered a direct
lobbying communication. For rules regarding when analysis, study or
research is treated as a grass roots lobbying communication that is not
within the scope of the exception for nonpartisan analysis, study or
research, see paragraph (b)(2)(v) of this section.
(vi) Directly encouraging action by recipients of a communication. A
communication that reflects a view on specific legislation is not within
the nonpartisan analysis, study, or research exception of this paragraph
(c)(1) if the communication directly encourages the recipient to take
action with respect to such legislation. For purposes of this section, a
communication directly encourages the recipient to take action with
respect to legislation if the communication is described in one or more
of paragraphs (b)(2)(iii) (A) through (C) of this section. As described
in paragraph (b)(2)(iv) of this section, a communication would encourage
the recipient to take action with respect to legislation, but not
directly encourage such action, if the communication does no more than
specifically identify one or more legislators who will vote on the
legislation as: opposing the communication's view with respect to the
legislation; being undecided with respect to the legislation; being the
recipient's representative in the legislature; or being a member of the
legislative committee or subcommittee that will consider the
legislation.
(vii) Examples. The provisions of this paragraph (c)(1) may be
illustrated by the following examples:

Example (1). Organization M establishes a research project to
collect information for the purpose of showing the dangers of the use of
pesticides in raising crops. The information collected includes data
with respect to proposed legislation, pending before several State
legislatures, which would ban the use of pesticides. The project takes
favorable positions on such legislation without producing a sufficiently
full and fair exposition of the pertinent facts to enable the public or
an individual to form an independent opinion or conclusion on the pros
and cons of the use of pesticides. This project is not within the
exception for nonpartisan analysis, study, or research because it is
designed to present information merely on one side of the legislative
controversy.
Example (2). Organization N establishes a research project to
collect information concerning the dangers of the use of pesticides in
raising crops for the ostensible purpose of examining and reporting
information as to the pros and cons of the use of pesticides in raising
crops. The information is collected and distributed in the form of a
published report which analyzes the effects and costs of the use and
nonuse of various pesticides under various conditions on humans, animals
and crops. The report also presents the advantages, disadvantages, and
economic cost of allowing the continued use of pesticides unabated, of
controlling the use of pesticides, and of developing alternatives to
pesticides. Even if the report sets forth conclusions that the
disadvantages as a result of using pesticides are greater than the
advantages of using pesticides and that prompt legislative regulation of
the use of pesticides is needed, the project is within the exception for
nonpartisan analysis, study, or research since it is designed to present
information on both sides of the legislative controversy and presents a
sufficiently full and fair exposition of the pertinent facts to enable
the public or an individual to form an independent opinion or
conclusion.
Example (3). Organization O establishes a research project to
collect information on the presence or absence of disease in humans from
eating food grown with pesticides and the presence or absence of disease
in humans from eating food not grown with pesticides. As part of the
research project, O hires a consultant who prepares a ``fact sheet''
which calls for the curtailment of the use of pesticides and which
addresses itself to the merits of several specific legislative proposals
to curtail the use of pesticides in raising crops which are currently
pending before State Legislatures. The ``fact sheet'' presents reports
of experimental evidence tending to support its conclusions but omits
any reference to reports of experimental evidence tending to dispute its
conclusions. O distributes ten thousand copies to citizens' groups.
Expenditures by O in connection with this work of the consultant are not
within the exception for nonpartisan analysis, study, or research.
Example (4). P publishes a bi-monthly newsletter to collect and
report all published materials, ongoing research, and new developments
with regard to the use of pesticides in raising crops. The newsletter
also includes notices of proposed pesticide legislation with impartial
summaries of the provisions and

[[Page 397]]

debates on such legislation. The newsletter does not encourage
recipients to take action with respect to such legislation, but is
designed to present information on both sides of the legislative
controversy and does present such information fully and fairly. It is
within the exception for nonpartisan analysis, study, or research.
Example (5). X is satisfied that A, a member of the faculty of Y
University, is exceptionally well qualified to undertake a project
involving a comprehensive study of the effects of pesticides on crop
yields. Consequently, X makes a grant to A to underwrite the cost of the
study and of the preparation of a book on the effect of pesticides on
crop yields. X does not take any position on the issues or control the
content of A's output. A produces a book which concludes that the use of
pesticides often has a favorable effect on crop yields, and on that
basis argues against pending bills which would ban the use of
pesticides. A's book contains a sufficiently full and fair exposition of
the pertinent facts, including known or potential disadvantages of the
use of pesticides, to enable the public or an individual to form an
independent opinion or conclusion as to whether pesticides should be
banned as provided in the pending bills. The book does not directly
encourage readers to take action with respect to the pending bills.
Consequently, the book is within the exception for nonpartisan analysis,
study, or research.
Example (6). Assume the same facts as Example (2), except that,
instead of issuing a report, X presents within a period of 6 consecutive
months a two-program television series relating to the pesticide issue.
The first program contains information, arguments, and conclusions
favoring legislation to restrict the use of pesticides. The second
program contains information, arguments, and conclusions opposing
legislation to restrict the use of pesticides. The programs are
broadcast within 6 months of each other during commensurate periods of
prime time. X's programs are within the exception for nonpartisan
analysis, study, or research. Although neither program individually
could be regarded as nonpartisan, the series of two programs constitutes
a balanced presentation.
Example (7). Assume the same facts as in Example (6), except that X
arranged for televising the program favoring legislation to restrict the
use of pesticides at 8:00 on a Thursday evening and for televising the
program opposing such legislation at 7:00 on a Sunday morning. X's
presentation is not within the exception for nonpartisan analysis,
study, or research, since X disseminated its information in a manner
prejudicial to one side of the legislative controversy.
Example (8). Organization Z researches, writes, prints and
distributes a study on the use and effects of pesticide X. A bill is
pending in the U.S. Senate to ban the use of pesticide X. Z's study
leads to the conclusion that pesticide X is extremely harmful and that
the bill pending in the U.S. Senate is an appropriate and much needed
remedy to solve the problems caused by pesticide X. The study contains a
sufficiently full and fair exposition of the pertinent facts, including
known or potential advantages of the use of pesticide X, to enable the
public or an individual to form an independent opinion or conclusion as
to whether pesticides should be banned as provided in the pending bills.
In its analysis of the pending bill, the study names certain undecided
Senators on the Senate committee considering the bill. Although the
study meets the three part test for determining whether a communication
is a grass roots lobbying communication, the study is within the
exception for nonpartisan analysis, study or research, because it does
not directly encourage recipients of the communication to urge a
legislator to oppose the bill.
Example (9). Assume the same facts as in Example (8), except that,
after stating support for the pending bill, the study concludes: ``You
should write to the undecided committee members to support this crucial
bill.'' The study is not within the exception for nonpartisan analysis,
study or research because it directly encourages the recipients to urge
a legislator to support a specific piece of legislation.
Example (10). Organization X plans to conduct a lobbying campaign
with respect to illegal drug use in the United States. It incurs $5,000
in expenses to conduct research and prepare an extensive report
primarily for use in the lobbying campaign. Although the detailed report
discusses specific pending legislation and reaches the conclusion that
the legislation would reduce illegal drug use, the report contains a
sufficiently full and fair exposition of the pertinent facts to enable
the public or an individual to form an independent conclusion regarding
the effect of the legislation. The report does not encourage readers to
contact legislators regarding the legislation. Accordingly, the report
does not, in and of itself, constitute a lobbying communication.
Copies of the report are available to the public at X's office, but
X does not actively distribute the report or otherwise seek to make the
contents of the report available to the general public. Whether or not
X's distribution is sufficient to meet the requirement in Sec. 56.4911-
2(c)(1)(iv) that a nonpartisan communication be made available, X's
distribution is not substantial (for purposes of Sec. 56.4911-
2(b)(2)(v)(E)) in light of all of the facts and circumstances, including
the normal distribution pattern of similar nonpartisan reports. X then
mails copies of the

[[Page 398]]

report, along with a letter, to 10,000 individuals on X's mailing list.
In the letter, X requests that individuals contact legislators urging
passage of the legislation discussed in the report. Because X's research
and report were primarily undertaken by X for lobbying purposes and X
did not make a substantial distribution of the report (without an
accompanying lobbying message) prior to or contemporaneously with the
use of the report in lobbying, the report is a grass roots lobbying
communication that is not within the exception for nonpartisan analysis,
study or research.
Example (11). Assume the same facts as in Example (10), except that
before using the report in the lobbying campaign, X sends the research
and report (without an accompanying lobbying message) to universities
and newspapers. At the same time, X also advertises the availability of
the report in its newsletter. This distribution is similar in scope to
the normal distribution pattern of similar nonpartisan reports. In light
of all of the facts and circumstances, X's distribution of the report is
substantial. Because of X's substantial distribution of the report, X's
primary purpose will be considered to be other than for use in lobbying
and the report will not be considered a grass roots lobbying
communication. Accordingly, only the expenditures for copying and
mailing the report to the 10,000 individuals on X's mailing list, as
well as for preparing and mailing the letter, are expenditures for grass
roots lobbying communications.
Example (12). Organization M pays for a bumper sticker that reads:
``STOP ABORTION: Vote NO on Prop. X!'' M also pays for a 30-second
television advertisement and a billboard that similarly advocate
opposition to Prop. X. In light of the limited scope of the
communications, none of the communications is within the exception for
nonpartisan analysis, study or research. First, none of the
communications rises to the level of analysis, study or research.
Second, none of the communications is nonpartisan because none contains
a sufficiently full and fair exposition of the pertinent facts to enable
the public or an individual to form an independent opinion or
conclusion. Thus, each communication is a direct lobbying communication.

(2) Examinations and discussions of broad social, economic, and
similar problems. Examinations and discussions of broad social,
economic, and similar problems are neither direct lobbying
communications under Sec. 56.4911-2(b)(1) nor grass roots lobbying
communications under Sec. 56.4911-2(b)(2) even if the problems are of
the type with which government would be expected to deal ultimately.
Thus, under Secs. 56.4911-2(b) (1) and (2), lobbying communications do
not include public discussion, or communications with members of
legislative bodies or governmental employees, the general subject of
which is also the subject of legislation before a legislative body, so
long as such discussion does not address itself to the merits of a
specific legislative proposal and so long as such discussion does not
directly encourage recipients to take action with respect to
legislation. For example, this paragraph (c)(2) excludes from grass
roots lobbying under Sec. 56.4911-2(b)(2) an organization's discussions
of problems such as environmental pollution or population growth that
are being considered by Congress and various State legislatures, but
only where the discussions are not directly addressed to specific
legislation being considered, and only where the discussions do not
directly encourage recipients of the communication to contact a
legislator, an employee of a legislative body, or a government official
or employee who may participate in the formulation of legislation.
(3) Requests for technical advice. A communication is not a direct
lobbying communication under Sec. 56.4911-2(b)(1) if the communication
is the providing of technical advice or assistance to a governmental
body, a governmental committee, or a subdivision of either in response
to a written request by the body, committee, or subdivision, as set
forth in Sec. 53.4945-2(d)(2).
(4) Communications pertaining to ``self-defense'' by the
organization. A communication is not a direct lobbying communication
under Sec. 56.4911-2(b)(1) if either:
(i) The communication is an appearance before, or communication
with, any legislative body with respect to a possible action by the body
that might affect the existence of the electing public charity, its
powers and duties, its tax-exempt status, or the deductibility of
contributions to the organization, as set forth in Sec. 53.4945-2(d)(3);
(ii) The communication is by a member of an affiliated group of
organizations (within the meaning of Sec. 56.4911-7(e)), and is an
appearance before, or communication with, a legislative body with
respect to a possible action

[[Page 399]]

by the body that might affect the existence of any other member of the
group, its powers and duties, its tax-exempt status, or the
deductibility of contributions to it;
(iii) The communication is by an electing public charity more than
75 percent of the members of which are other organizations that are
described in section 501(c)(3), and is an appearance before, or
communication with, any legislative body with respect to a possible
action by the body which might affect the existence of one or more of
the section 501(c)(3) member organizations, their powers, duties, or
tax-exempt status, or the deductibility (under section 170) of
contributions to one or more of the section 501(c)(3) member
organizations, but only if the principal purpose of the appearance or
communication is to defend the section 501(c)(3) member organizations
(rather than the non-section 501(c)(3) member organizations); or
(iv) The communication is by an electing public charity that is a
member of a limited affiliated group or organizations under
Sec. 56.4911-10, and is an appearance before, or communication with, the
Congress of the United States with respect to a possible action by the
Congress that might affect the existence of any member of the limited
affiliated group, its powers and duties, tax-exempt status, or the
deductibility of contributions to it.
(v) Under the self-defense exception of paragraphs (c)(4) (i)
through (iv) of this section, a charity may communicate with an entire
legislative body, with committees or subcommittees of a legislative
body, with individual legislators, with legislative staff members, or
with representatives of the executive branch who are involved with the
legislative process, so long as such communication is limited to the
prescribed subjects. Similarly, under the self-defense exception, a
charity may make expenditures in order to initiate legislation if such
legislation concerns only matters which might affect the existence of
the charity, its powers and duties, its tax-exempt status, or the
deductibility of contributions to such charity. For examples
illustrating the application and scope of the self-defense exception of
this paragraph (c)(4), see Sec. 53.4945-2(d)(3)(ii).
(d) Definitions. For purposes of section 4911 and the regulations
thereunder--
(1) Legislation--(i) In general. ``Legislation'' includes action by
the Congress, any state legislature, any local council, or similar
legislative body, or by the public in a referendum, ballot initiative,
constitutional amendment, or similar procedure. ``Legislation'' includes
a proposed treaty required to be submitted by the President to the
Senate for its advice and consent from the time the President's
representative begins to negotiate its position with the prospective
parties to the proposed treaty.
(ii) Definition of specific legislation. For purposes of paragraphs
(b)(1) and (b)(2) of this section, ``specific legislation'' includes
both legislation that has already been introduced in a legislative body
and a specific legislative proposal that the organization either
supports or opposes. In the case of a referendum, ballot initiative,
constitutional amendment, or other measure that is placed on the ballot
by petitions signed by a required number or percentage of voters, an
item becomes ``specific legislation'' when the petition is first
circulated among voters for signature.
(iii) Examples. The terms ``legislation'' and ``specific
legislation'' are illustrated using the following examples:

Example (1). A nonmembership organization includes in its newsletter
an article about problems with the use of pesticide X that states in
part: ``Legislation that is pending in Congress would prohibit the use
of this very dangerous pesticide. Fortunately, the legislation will
probably be passed. Write your congressional representatives about this
important issue.'' This is a grass roots lobbying communication that
refers to and reflects a view on specific legislation and that
encourages recipients to take action with respect to that legislation.
Example (2). An organization based in State A notes in its
newsletter that State Z has passed a bill to accomplish a stated purpose
and then says that State A should pass such a bill. The organization
urges readers to write their legislators in favor of such a bill. No
such bill has been introduced into the State A legislature. The
organization has referred to and reflected a view on a specific
legislative proposal and has also encouraged readers to take action
thereon.

[[Page 400]]

(2) Action. The term ``action'' in paragraph (d)(1)(i) of this
section is limited to the introduction, amendment, enactment, defeat or
repeal of Acts, bills, resolutions, or similar items.
(3) Legislative body. ``Legislative body'' does not include
executive, judicial, or administrative bodies.
(4) Administrative bodies. ``Administrative bodies'' includes school
boards, housing authorities, sewer and water districts, zoning boards,
and other similar Federal, State, or local special purpose bodies,
whether elective or appointive. Thus, for example, for purposes of
section 4911, the term ``any attempt to influence any legislation'' does
not include attempts to persuade an executive body or department to
form, support the formation of, or to acquire property to be used for
the formation or expansion of, a public park or equivalent preserves
(such as public recreation areas, game, or forest preserves, and soil
demonstration areas) established or to be established by act of
Congress, by executive action in accordance with an act of Congress, or
by a State, municipality or other governmental unit described in section
170(c)(1), as compared with attempts to persuade a legislative body, a
member thereof, or other governmental official or employee, to promote
the appropriation of funds for such an acquisition or other legislative
authorization of such an acquisition. Therefore, for example, an
organization would not be influencing legislation for purposes of
section 4911, if it proposed to a Park Authority that it purchase a
particular tract of land for a new park, even though such an attempt
would necessarily require the Park Authority eventually to seek
appropriations to support a new park. However, in such a case, the
organization would be influencing legislation, for purposes of section
4911, if it provided the Park Authority with a proposed budget to be
submitted to a legislative body, unless such submission is described by
one of the exceptions set forth in paragraph (c) of this section.