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107 STAT. 478 PUBLIC LAW 103-66—AUG. 10, 1993 "(C) any attempt to influence the general public, or segments thereof, with respect to elections, legislative mat- ters, or referendums, or "(D) any direct communication with a covered executive branch official in an attempt to influence the official actions or positions of such official. "(2) EXCEPTION FOR LOCAL LEGISLATION.—In the case of any legislation of any local council or similar governing body— "(A) paragraph (IXA) shall not apply, and "(B) the deduction allowed by subsection (a) shall include all ordinary and necessary expenses (including, but not limited to, traveling expenses described in sub- section (aX2) and the cost of preparing testimony) paid or incurred during the taxable year in carrying on any trade or business— "(i) in direct connection with appearances before, submission of statements to, or sending communica- tions to the committees, or individual members, of such council or body with respect to legislation or proposed legislation of direct interest to the taxpayer, or "(ii) in direct connection with communication of information between the taxpayer and an organization of which the taxpayer is a member with respect to any such legislation or proposed legislation which is of direct interest to the taxpayer anato such organiza- tion, and that portion of the dues so paid or incurred with respect to any organization of which the taxpayer is a member which is attributable to the expenses of the activi- ties described in clauses (i) and (ii) carried on by such organization. "(3) APPLICATION TO DUES OF TAX-EXEMPT ORGANIZATIONS.— No deduction shall be allowed under subsection (a) for the portion of dues or other similar amounts paid by the taxpayer to an organization which is exempt from tax under this subtitle which tne organization notifies the taxpayer under section 6033(eXlXAXii) is allocable to expenditures to which paragraph (1) applies. "(4) INFLUENCING LEGISLATION.—For purposes of this subsection— "(A) IN GENERAL.—^The term 'influencing legislation' means any attempt to influence any legislation through commimication with any member or employee of a legisla- tive body, or with any government official or employee who may participate in the formulation of legislation. "(B) LEGISLATION.—The term legislation' has the meaning given such term by section 4911(eX2). "(5) OTHER SPECIAL RULES.— "(A) EXCEPTION FOR CERTAIN TAXPAYERS.—In the case of any t£ucpayer engaged in the trade or business of conduct- ing activities described in paragraph (1), paragraph (1) shall not apply to expenditures of the taxpayer in conduct- ing such activities directly on behalf of another person (but shall apply to payments by such other person to the taxpayer for conducting such activities). "(B) DE MINIMIS EXCEPTION.—