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Committee advances bill to require online donation vendors to register and limit online share of campaign funds
Summary
House Bill 5 81, amended and advanced to Government Operations, would require online campaign donation platforms to register with the state registry, collect additional donor verification data (including CVV), and cap the share of a candidate's contributions that may come from online platforms at 50% of aggregate limits.
The State and Local Government Committee amended and advanced House Bill 5 81 after debate over transparency, commerce and small‑donor protections.
Representative Doggett, sponsor of the bill, told the committee the measure requires online campaign donation vendors to register with the state registry of elections, collect the card verification value (CVV) when donors give by debit or credit card, and comply with data requests from the registry within 10 days during investigations. The bill would also apply existing PAC contribution limits to online platform collections and limit candidates to receiving no more than 50% of their aggregate contributions from online sources during an election cycle.
Supporters said those provisions aim to reduce fraud, including “smurfing” (multiple small contributions made under false names), and to ensure the bureau and campaigns can obtain required contributor information. Representative Doggett said vendors will be required to provide occupant and address information that is currently sometimes missing from platform reports.
Opponents and some members raised concerns that the 50% cap on online contributions would unintentionally restrict small‑dollar grassroots fundraising and that registering multistate vendors with Tennessee could impose burdens on commerce and discourage vendors from operating in the state. Representative Powell and others called the registration requirement a potential barrier for businesses that provide donation services in multiple states.
Committee discussion included a legal and practical focus on identity verification, fraud risk, and whether vendor registration is the best mechanism to ensure the registry receives full contributor information.
The committee voted to send the bill to Government Operations, with a committee tally of 16 ayes and 7 nays.
