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S 3628 Disclose Act
S 3628 Disclose Act
A BILL
To amend the Federal Election Campaign Act of 1971 to
prohibit foreign influence in Federal elections, to prohibit
government contractors from making expenditures with
respect to such elections, and to establish additional dis-
closure requirements with respect to spending in such
elections, and for other purposes.
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
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Sec. 221. Requiring registered lobbyists to report information on independent
expenditures and electioneering communications.
1 SEC. 2. FINDINGS.
16 93).
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1 (2) The Supreme Court’s decision in Citizens
2 United v. Federal Election Commission on January
3 21, 2010, invalidated legislation restricting the abil-
4 ity of corporations and labor unions to spend funds
5 from their general treasury accounts to influence the
6 outcome of elections.
7 (b) FINDINGS RELATING TO GOVERNMENT CON-
8 TRACTORS.—Congress finds and declares as follows:
9 (1) Government contracting is an activity that
10 is particularly susceptible to improper influence, and
11 to the appearance of improper influence. Govern-
12 ment contracts must be awarded based on an objec-
13 tive evaluation of how well bidders or potential con-
14 tractors meet relevant statutory criteria.
15 (2) Independent expenditures and electioneering
16 communications that benefit particular candidates or
17 elected officials or disfavor their opponents can lead
18 to apparent and actual ingratiation, access, influ-
19 ence, and quid pro quo arrangements. Government
20 contracts should be awarded based on an objective
21 application of statutory criteria, not based on other
22 forms of inappropriate or corrupting influence.
23 (3) Prohibiting independent expenditures and
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1 prevent government officials involved in or with in-
2 fluence over the contracting process from influencing
3 the contracting process based, consciously or other-
4 wise, on this kind of inappropriate or corrupting in-
5 fluence.
6 (4) Prohibiting independent expenditures and
7 electioneering communications by persons negoti-
8 ating for or performing government contracts will
9 likewise prevent such persons from feeling pressure,
10 whether actually exerted by government officials or
11 not, to make expenditures and to fund communica-
12 tions in order to maximize their chances of receiving
13 contracts, or to match similar expenditures and com-
14 munications made by their competitors.
15 (5) Furthermore, because government contracts
16 often involve large amounts of public money, it is
17 critical that the public perceive that the government
18 contracts are awarded strictly in accordance with
19 prescribed statutory standards, and not based on
20 other forms of inappropriate or corrupting influence.
21 The public’s confidence in government is under-
22 mined when corporations that make significant ex-
23 penditures during Federal election campaigns later
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1 (6) Prohibiting independent expenditures and
2 electioneering communications by persons negoti-
3 ating for or performing government contracts will
4 prevent any appearance that government contracts
5 were awarded based in whole or in part on such ex-
6 penditures or communications, or based on the inap-
7 propriate or corrupting influence such expenditures
8 and communications can create and appear to cre-
9 ate.
10 (7) In these ways, prohibiting independent ex-
11 penditures and electioneering communications by
12 persons negotiating for or performing government
13 contracts will protect the actual and perceived integ-
14 rity of the government contracting process.
15 (8) Moreover, the risks of waste, fraud and
16 abuse, all resulting in economic losses to taxpayers,
17 are significant when would-be public contractors or
18 applicants for public funds make expenditures in
19 Federal election campaigns in order to affect elec-
20 toral outcomes.
21 (c) FINDINGS RELATING TO FOREIGN CORPORA-
22 TIONS.—Congress finds and declares as follows:
23 (1) The Supreme Court’s decision in the Citi-
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1 tities can freely spend money to influence United
2 States elections.
3 (2) Foreign corporations commonly own U.S.
4 corporations in whole or in part, and U.S. corporate
5 equity and debt are also held by foreign individuals,
6 sovereign wealth funds, and even foreign nations at
7 levels which permit effective control over those U.S.
8 entities.
9 (3) As recognized in many areas of the law, for-
10 eign ownership interests and influences are exerted
11 in a perceptible way even when the entity is not ma-
12 jority-foreign-owned.
13 (4) The Federal Government has broad con-
14 stitutional power to protect American interests and
15 sovereignty from foreign interference and intrusion.
16 (5) Congress has a clear interest in minimizing
17 foreign intervention, and the perception of foreign
18 intervention, in United States elections.
19 (d) FINDINGS RELATING TO COORDINATED EXPEND-
20 ITURES.—Congress finds and declares as follows:
21 (1) It has been the consistent view of Congress
22 and the courts that coordinated expenditures in
23 campaigns for election are no different in nature
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24 from contributions.
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1 (2) Existing rules still allow donors to evade
2 contribution limits by making campaign expendi-
3 tures which, while technically qualifying as inde-
4 pendent expenditures under law, are for all relevant
5 purposes coordinated with candidates and political
6 parties and thus raise the potential for corruption or
7 the appearance of corruption.
8 (3) Such arrangements have the potential to
9 give rise to the reality or appearance of corruption
10 to the same degree that direct contributions to a
11 candidate may give rise to the reality or appearance
12 of corruption. Moreover, expenditures which are in
13 fact made in coordination with a candidate or polit-
14 ical party have the potential to lessen the public’s
15 trust and faith in the rules and the integrity of the
16 electoral process.
17 (4) The government therefore has a compelling
18 interest in making sure that expenditures that are
19 de facto coordinated with a candidate are treated as
20 such to prevent corruption, the appearance of cor-
21 ruption, or the perception that some participants are
22 circumventing the laws and regulations which govern
23 the financing of election campaigns.
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1 (1) The American people have a compelling in-
2 terest in knowing who is funding independent ex-
3 penditures and electioneering communications to in-
4 fluence Federal elections, and the government has a
5 compelling interest in providing the public with that
6 information. Effective disclaimers and prompt disclo-
7 sure of expenditures, and the disclosure of the fund-
8 ing sources for these expenditures, can provide
9 shareholders, voters, and citizens with the informa-
10 tion needed to evaluate the actions by special inter-
11 ests seeking influence over the democratic process.
12 Transparency promotes accountability, increases the
13 fund of information available to the public con-
14 cerning the support given to candidates by special
15 interests, sheds the light of publicity on political
16 spending, and encourages the leaders of organiza-
17 tions to act only upon legitimate organizational pur-
18 poses.
19 (2) Protecting this compelling interest has be-
20 come particularly important to address the increase
21 in special interest spending on election-related com-
22 munications which Congress finds will result from
23 the Supreme Court’s decision in the Citizens United
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1 in which such expenditures were subject to prohibi-
2 tions that no longer apply.
3 (3) More rigorous disclosure and disclaimer re-
4 quirements are necessary to protect against the eva-
5 sion of those current rules that were not the subject
6 of the Citizens United case. Organizations that en-
7 gage in election-related communications have used a
8 variety of methods to attempt to obscure their spon-
9 sorship of communications from the general public,
10 including multiple transfers of funds between dif-
11 ferent individuals and organizations. Robust, en-
12 hanced disclosure and disclaimer requirements are
13 necessary to ensure that the electorate is informed
14 about who is actually paying for particular election-
15 related communications, and that the shareholders
16 and members of organizations are aware of their or-
17 ganizations’ election-related spending.
18 (4) Various factors, including the frequency of
19 political campaigns that effectively begin long before
20 election day, have also rendered the existing system
21 of disclosure and disclaimer requirements (including
22 the limited time periods during which some of those
23 requirements currently apply) inadequate to protect
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1 informed about the sources of election-related spend-
2 ing, and that shareholders, voters and citizens alike
3 have the information they need to hold corporations
4 and elected officials accountable.
5 (5) The pervasive nature of campaign adver-
6 tising means that most Americans, even those who
7 might not be otherwise engaged in the political proc-
8 ess, will come into contact with campaign adver-
9 tising. Moreover, the lengthy nature of most modern
10 campaigns means that many Americans will be ex-
11 posed to campaign advertising for an extended pe-
12 riod of time prior to the actual election. Many of
13 these Americans may lack ready access to the infor-
14 mation provided through the existing disclosure re-
15 quirements. For this reason, disclaimers on the cam-
16 paign advertising itself are particularly important in
17 improving the knowledge of the American people
18 about who is funding independent expenditures and
19 electioneering communications to influence Federal
20 elections.
21 (6) Effective disclaimers enable the American
22 people to assess advertisements as they see or hear
23 them, making them aware of the sources of funding
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1 of the advertisements. Effective disclaimers can also
2 alert the electorate to connections between different
3 advertisements, such as when different advertise-
4 ments are supported by the same funding source. It
5 is thus particularly important that disclaimers on all
6 advertising be presented in a manner that can be
7 quickly and easily understood, and is likely to be ob-
8 served and retained, by those seeing or hearing the
9 advertisement.
10 (7) The current lack of accountability and
11 transparency with respect to special interest political
12 spending allows that spending to serve as a private
13 benefit for the officials of special interest organiza-
14 tions, to the detriment of those organizations and
15 their shareholders and members.
16 (8) Election-related communications by not-for-
17 profit charitable organizations raise certain addi-
18 tional, particularized issues. In the past, such orga-
19 nizations have sometimes been established in order
20 to permit the actual sponsors of election-related
21 communications to obscure their identities from vot-
22 ers and the general public. At the same time, other
23 such organizations are familiar, established associa-
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1 pose. The importance of enhanced disclosures of the
2 sources of funding of a not-for-profit organization’s
3 election-related communications is diminished where
4 certain conditions are met. If an organization is
5 long-established, the public is more likely to be fa-
6 miliar with the organization and its purposes, mak-
7 ing it less important to require disclosure of the or-
8 ganization’s donors in order for the public to fairly
9 understand and evaluate its communications. Simi-
10 larly, national organizations with broad-based mem-
11 bership are likely to be better known, making en-
12 hanced disclosure of the organization’s donors less
13 critical. Organizations that have a substantial mem-
14 bership, particularly a geographically dispersed and
15 long-standing membership, are less likely to serve as
16 conduits for a small number of donors who use the
17 organization to express their own personal views in
18 the guise of an organizational communication. Orga-
19 nizations that accept only limited funds from cor-
20 porations and do not use any corporate funds to
21 subsidize campaign-related activities are less likely
22 to be used to obscure corporate sources of political
23 communications. In rare cases where all of these
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1 quirements will provide sufficient information to en-
2 able the public to understand who is actually speak-
3 ing.
4 (f) FINDINGS RELATING TO CAMPAIGN SPENDING BY
5 LOBBYISTS.—Congress finds and declares as follows:
6 (1) Lobbyists and lobbying organizations, and
7 through them, their clients, influence the public deci-
8 sion-making process in a variety of ways.
9 (2) In recent years, scandals involving undue
10 lobbyist influence have lowered public trust in gov-
11 ernment and jeopardized the willingness of voters to
12 take part in democratic governance.
13 (3) One way in which lobbyists may unduly in-
14 fluence Federal officials is through their clients
15 making independent expenditures or electioneering
16 communications targeting elected officials.
17 (4) Disclosure of such independent expenditures
18 and electioneering communications will allow the
19 public to examine connections between such spend-
20 ing and official actions, and will therefore limit the
21 ability of lobbyists to exert an undue influence on
22 elected officials.
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1 TITLE I—REGULATION OF
2 CERTAIN POLITICAL SPENDING
3 SEC. 101. PROHIBITING INDEPENDENT EXPENDITURES AND
4 ELECTIONEERING COMMUNICATIONS BY
5 GOVERNMENT CONTRACTORS.
21 EERING COMMUNICATIONS’’.
24 ed—
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1 (A) by redesignating subsections (b) and
2 (c) as subsections (c) and (d); and
3 (B) by inserting after subsection (a) the
4 following new subsection:
5 ‘‘(b) To the extent that subsection (a)(1) prohibits
6 a person who enters into a contract described in such sub-
7 section from making any independent expenditure or dis-
8 bursing funds for an electioneering communication, such
9 subsection shall apply only if the value of the contract is
10 equal to or greater than $10,000,000.’’.
11 (b) APPLICATION TO RECIPIENTS OF ASSISTANCE
12 UNDER TROUBLED ASSET PROGRAM.—Section 317(a) of
13 such Act (2 U.S.C. 441c(a)) is amended—
14 (1) by striking ‘‘or’’ at the end of paragraph
15 (1);
16 (2) by redesignating paragraph (2) as para-
17 graph (3); and
18 (3) by inserting after paragraph (1) the fol-
19 lowing new paragraph:
20 ‘‘(2) who enters into negotiations for financial
21 assistance under title I of the Emergency Economic
22 Stabilization Act of 2008 (12 U.S.C. 5211 et seq.)
23 (relating to the purchase of troubled assets by the
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1 ‘‘(A) beginning on the later of the com-
2 mencement of the negotiations or the date of
3 the enactment of the Democracy is Strength-
4 ened by Casting Light on Spending in Elections
5 Act; and
6 ‘‘(B) ending with the later of the termi-
7 nation of such negotiations or the repayment of
8 such financial assistance;
9 directly or indirectly to make any contribution of
10 money or other things of value, or to promise ex-
11 pressly or impliedly to make any such contribution
12 to any political party, committee, or candidate for
13 public office or to any person for any political pur-
14 pose or use, to make any independent expenditure,
15 or to disburse any funds for an electioneering com-
16 munication; or’’.
17 (c) TECHNICAL AMENDMENT.—Section 317 of such
18 Act (2 U.S.C. 441c) is amended by striking ‘‘section 321’’
19 each place it appears and inserting ‘‘section 316’’.
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1 SEC. 102. APPLICATION OF BAN ON CONTRIBUTIONS AND
4 PORATIONS.
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1 ‘‘(ii) 20 percent or more of the voting
2 shares, if the foreign national is not de-
3 scribed in clause (i);
4 ‘‘(B) in which two or more foreign nation-
5 als described in paragraph (1) or (2), each of
6 whom owns or controls at least 5 percent of the
7 voting shares, directly or indirectly own or con-
8 trol 50 percent or more of the voting shares;
9 ‘‘(C) with respect to which the majority of
10 the members of the board of directors are for-
11 eign nationals described in paragraph (1) or
12 (2);
13 ‘‘(D) over which one or more foreign na-
14 tionals described in paragraph (1) or (2) has
15 the power to direct, dictate, or control the deci-
16 sion-making process of the corporation with re-
17 spect to its interests in the United States; or
18 ‘‘(E) over which one or more foreign na-
19 tionals described in paragraph (1) or (2) has
20 the power to direct, dictate, or control the deci-
21 sion-making process of the corporation with re-
22 spect to activities in connection with a Federal,
23 State, or local election, including—
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1 ture, or disbursement for an electioneering
2 communication (within the meaning of sec-
3 tion 304(f)(3)); or
4 ‘‘(ii) the administration of a political
5 committee established or maintained by the
6 corporation.’’.
7 (b) CERTIFICATION OF COMPLIANCE.—Section 319
8 of such Act (2 U.S.C. 441e) is amended by adding at the
9 end the following new subsection:
10 ‘‘(c) CERTIFICATION OF COMPLIANCE REQUIRED
11 PRIOR TO CARRYING OUT ACTIVITY.—Prior to the mak-
12 ing in connection with an election for Federal office of any
13 contribution, donation, expenditure, independent expendi-
14 ture, or disbursement for an electioneering communication
15 by a corporation during a year, the chief executive officer
16 of the corporation (or, if the corporation does not have
17 a chief executive officer, the highest ranking official of the
18 corporation), shall file a certification with the Commission,
19 under penalty of perjury, that the corporation is not pro-
20 hibited from carrying out such activity under subsection
21 (b)(3), unless the chief executive officer has previously
22 filed such a certification during the year. Nothing in this
23 subsection shall be construed to apply to any contribution,
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1 and administered by a corporation under section
2 316(b)(2)(C).’’.
3 (c) NO EFFECT ON CERTAIN ACTIVITIES OF DOMES-
4 TIC CORPORATIONS.—Section 319 of such Act (2 U.S.C.
5 441e), as amended by subsection (b), is further amended
6 by adding at the end the following new subsection:
7 ‘‘(d) NO EFFECT ON CERTAIN ACTIVITIES OF DO-
8 MESTIC CORPORATIONS.—
9 ‘‘(1) SEPARATE SEGREGATED FUNDS.—Nothing
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1 local election to the extent permitted under State or
2 local law, so long as no foreign national described in
3 paragraph (1) or (2) of subsection (b) has the power
4 to direct, dictate, or control such contribution or do-
5 nation.
6 ‘‘(3) OTHER PERMISSIBLE CORPORATE CON-
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1 SEC. 103. TREATMENT OF PAYMENTS FOR COORDINATED
2 COMMUNICATIONS AS CONTRIBUTIONS.
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1 committee of a candidate, or a political com-
2 mittee of a political party; or
3 ‘‘(B) any communication that republishes,
4 disseminates, or distributes, in whole or in part,
5 any broadcast or any written, graphic, or other
6 form of campaign material prepared by a can-
7 didate, an authorized committee of a candidate,
8 or their agents.
9 ‘‘(2) EXCEPTION.—The term ‘coordinated com-
10 munication’ does not include—
11 ‘‘(A) a communication appearing in a news
12 story, commentary, or editorial distributed
13 through the facilities of any broadcasting sta-
14 tion, newspaper, magazine, or other periodical
15 publication, unless such facilities are owned or
16 controlled by any political party, political com-
17 mittee, or candidate; or
18 ‘‘(B) a communication which constitutes a
19 candidate debate or forum conducted pursuant
20 to the regulations adopted by the Commission
21 to carry out section 304(f)(3)(B)(iii), or which
22 solely promotes such a debate or forum and is
23 made by or on behalf of the person sponsoring
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1 ‘‘(1) IN GENERAL.—Except as provided in para-
2 graph (4), for purposes of this subsection, the term
3 ‘covered communication’ means, for purposes of the
4 applicable election period described in paragraph (2)
5 and with respect to the coordinated communication
6 involved, a public communication (as defined in sec-
7 tion 301(22)) that refers to the candidate described
8 in subsection (a)(1)(A) or an opponent of such can-
9 didate and is publicly distributed or publicly dissemi-
10 nated during such period.
11 ‘‘(2) APPLICABLE ELECTION PERIOD.—For
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1 ‘‘(B) in the case of a communication which
2 refers to a candidate for any other Federal of-
3 fice, the period—
4 ‘‘(i) beginning with the date that is 90
5 days before the earliest of the primary
6 election, preference election, or nominating
7 convention with respect to the nomination
8 for the office that the candidate is seeking;
9 and
10 ‘‘(ii) ending with the date of the gen-
11 eral election for such office.
12 ‘‘(3) SPECIAL RULE FOR PUBLIC DISTRIBUTION
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1 the request or suggestion of, a candidate, an authorized
2 committee of a candidate, or a political committee of a
3 political party solely on the grounds that a person or an
4 agent thereof engaged in discussions with to the candidate
5 or committee regarding that person’s position on a legisla-
6 tive or policy matter (including urging the candidate or
7 party to adopt that person’s position), so long as there
8 is no discussion between the person and the candidate or
9 committee regarding the candidate’s campaign plans,
10 projects, activities, or needs.
11 ‘‘(d) PRESERVATION OF CERTAIN SAFE HARBORS
12 AND FIREWALLS.—Nothing in this section may be con-
13 strued to affect section 109.21(g) or (h) of title 11, Code
14 of Federal Regulations, as in effect on the date of the en-
15 actment of the Democracy is Strengthened by Casting
16 Light on Spending in Elections Act.
17 ‘‘(e) TREATMENT OF COORDINATION WITH POLIT-
18 ICAL PARTIES FOR COMMUNICATIONS REFERRING TO
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1 or at the request or suggestion of such clearly identified
2 candidate or candidates, the communication shall be treat-
3 ed as having been made in cooperation, consultation, or
4 concert with or at the request or suggestion of the political
5 committee of the political party but not with or at the
6 request or suggestion of such clearly identified candidate
7 or candidates.’’.
8 (c) EFFECTIVE DATE.—
9 (1) IN GENERAL.—This section and the amend-
10 ments made by this section shall apply with respect
11 to payments made on or after the expiration of the
12 30-day period which begins on the date of the enact-
13 ment of this Act, without regard to whether or not
14 the Federal Election Commission has promulgated
15 regulations to carry out such amendments.
16 (2) TRANSITION RULE FOR ACTIONS TAKEN
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1 of the enactment of this Act regarding whether a
2 communication is made in cooperation, consultation,
3 or concert with, or at the request or suggestion of,
4 a candidate, an authorized committee of a candidate,
5 or a political committee of a political party.
6 SEC. 104. TREATMENT OF POLITICAL PARTY COMMUNICA-
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1 (b) REQUIRING CONTROL OR DIRECTION BY CAN-
2 DIDATE FOR TREATMENT AS COORDINATED PARTY EX-
3 PENDITURE.—
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31
1 SEC. 105. RESTRICTION ON INTERNET COMMUNICATIONS
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32
1 clearly identified candidate, or is the functional
2 equivalent of express advocacy because it can be
3 interpreted by a reasonable person only as ad-
4 vocating the election or defeat of a candidate,
5 taking into account whether the communication
6 involved mentions a candidacy, a political party,
7 or a challenger to a candidate, or takes a posi-
8 tion on a candidate’s character, qualifications,
9 or fitness for office; and’’.
10 (b) UNIFORM 24-HOUR REPORTING FOR PERSONS
11 MAKING INDEPENDENT EXPENDITURES EXCEEDING
12 $10,000 AT ANY TIME.—Section 304(g) of such Act (2
13 U.S.C. 434(g)) is amended by striking paragraphs (1) and
14 (2) and inserting the following:
15 ‘‘(1) INDEPENDENT EXPENDITURES EXCEED-
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1 person shall electronically file an additional re-
2 port within 24 hours after each time the person
3 makes or contracts to make independent ex-
4 penditures in an aggregate amount equal to or
5 greater than the threshold amount with respect
6 to the same election as that to which the initial
7 report relates.
8 ‘‘(C) THRESHOLD AMOUNT DESCRIBED.—
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1 (1) IN GENERAL.—The amendment made by
2 subsection (a) shall apply with respect to contribu-
3 tions and expenditures made on or after the expira-
4 tion of the 30-day period which begins on the date
5 of the enactment of this Act, without regard to
6 whether or not the Federal Election Commission has
7 promulgated regulations to carry out such amend-
8 ments.
9 (2) REPORTING REQUIREMENTS.—The amend-
10 ment made by subsection (b) shall apply with re-
11 spect to reports required to be filed after the date
12 of the enactment of this Act.
13 SEC. 202. ELECTIONEERING COMMUNICATIONS.
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1 tion which is made prior to the date of the enactment of
2 this Act shall be treated as an electioneering communica-
3 tion under section 304(f)(3)(A)(i)(II) of the Federal Elec-
4 tion Campaign Act of 1971 (as amended by subsection
5 (a)) unless the communication would be treated as an elec-
6 tioneering communication under such section if the
7 amendment made by subsection (a) did not apply.
8 SEC. 203. MANDATORY ELECTRONIC FILING BY PERSONS
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36
1 Subtitle B—Expanded Require-
2 ments for Corporations and
3 Other Organizations
4 SEC. 211. ADDITIONAL INFORMATION REQUIRED TO BE IN-
6 COVERED ORGANIZATIONS.
14 TURES.—
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1 ing the covered organization reporting pe-
2 riod which was provided for the purpose of
3 being used for campaign-related activity or
4 in response to a solicitation for funds to be
5 used for campaign-related activity—
6 ‘‘(I) subject to subparagraph (C),
7 the identification of each person who
8 made such donations or payments in
9 an aggregate amount equal to or ex-
10 ceeding $600 during such period, pre-
11 sented in the order of the aggregate
12 amount of donations or payments
13 made by such persons during such pe-
14 riod (with the identification of the
15 person making the largest donation or
16 payment appearing first); and
17 ‘‘(II) if any person identified
18 under subclause (I) designated that
19 the donation or payment be used for
20 campaign-related activity with respect
21 to a specific election or in support of
22 a specific candidate, the name of the
23 election or candidate involved, and if
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1 specific public independent expendi-
2 ture, a description of the expenditure.
3 ‘‘(ii) The identification of each person
4 who made unrestricted donor payments to
5 the organization during the covered organi-
6 zation reporting period—
7 ‘‘(I) in an aggregate amount
8 equal to or exceeding $600 during
9 such period, if any of the disburse-
10 ments made by the organization for
11 any of the public independent expendi-
12 tures which are covered by the report
13 were not made from the organization’s
14 Campaign-Related Activity Account
15 under section 326; or
16 ‘‘(II) in an aggregate amount
17 equal to or exceeding $6,000 during
18 such period, if the disbursements
19 made by the organization for all of
20 the public independent expenditures
21 which are covered by the report were
22 made exclusively from the organiza-
23 tion’s Campaign-Related Activity Ac-
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1 described in subparagraph (D) of sec-
2 tion 326(a)(2) into that Account dur-
3 ing such period in an aggregate
4 amount equal to or greater than
5 $10,000),
6 presented in the order of the aggregate
7 amount of payments made by such persons
8 during such period (with the identification
9 of the person making the largest payment
10 appearing first).
11 ‘‘(B) TREATMENT OF TRANSFERS MADE
12 TO OTHER PERSONS.—
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1 than the covered organization itself) for
2 the purpose of making a public inde-
3 pendent expenditure by that person or by
4 any other person, shall be considered to
5 have made a public independent expendi-
6 ture.
7 ‘‘(ii) RULES FOR DEEMING TRANS-
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1 the amounts were transferred
2 agrees to do so;
3 ‘‘(bb) the person making the
4 public independent expenditure
5 or another person acting on that
6 person’s behalf expressly solicited
7 the covered organization for a do-
8 nation or payment for making or
9 paying for any public inde-
10 pendent expenditures;
11 ‘‘(cc) the covered organiza-
12 tion and the person to whom the
13 amounts were transferred en-
14 gaged in written or oral discus-
15 sion regarding the person either
16 making, or paying for, any public
17 independent expenditure, or do-
18 nating or transferring the
19 amounts to another person for
20 that purpose;
21 ‘‘(dd) the covered organiza-
22 tion which transferred the funds
23 knew or had reason to know that
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42
1 make public independent expendi-
2 tures; or
3 ‘‘(ee) the covered organiza-
4 tion which transferred the funds
5 or the person to whom the
6 amounts were transferred made
7 one or more public independent
8 expenditures in an aggregate
9 amount of $50,000 or more dur-
10 ing the 2-year period which ends
11 on the date on which the
12 amounts were transferred.
13 ‘‘(II) The covered organization
14 shall not be deemed to have trans-
15 ferred the amounts for the purpose of
16 making a public independent expendi-
17 ture if—
18 ‘‘(aa) the transfer was a
19 commercial transaction occurring
20 in the ordinary course of business
21 between the covered organization
22 and the person to whom the
23 amounts were transferred, unless
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43
1 the purpose of making a public
2 independent expenditure; or
3 ‘‘(bb) the covered organiza-
4 tion and the person to whom the
5 amounts were transferred mutu-
6 ally agreed (as provided in sec-
7 tion 325(b)(1)) that the person
8 will not use the amounts for cam-
9 paign-related activity.
10 ‘‘(iii) SPECIAL RULE REGARDING
13 ‘‘(aa) IN GENERAL.—Clause
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1 report filed under subparagraph
2 (A) by the covered organization
3 that receives the transferred
4 funds shall include the informa-
5 tion required under that subpara-
6 graph relating to donations or
7 payments made—
8 ‘‘(AA) to the affiliate
9 which transferred the funds
10 where such donations or
11 payments were made to the
12 affiliate in the 12-month pe-
13 riod prior to the transfer,
14 and
15 ‘‘(BB) to any affiliate
16 which transferred an aggre-
17 gate amount equal to or
18 greater than $50,000 to any
19 affiliate described in subitem
20 (AA) in the 12-month period
21 prior to the transfer.
22 ‘‘(II) DESCRIPTION OF TRANS-
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45
1 nization shall be treated as a transfer
2 between affiliates if—
3 ‘‘(aa) one of the organiza-
4 tions is an affiliate of the other
5 organization; or
6 ‘‘(bb) each of the organiza-
7 tions is an affiliate of the same
8 organization,
9 except that the transfer shall not be
10 treated as a transfer between affiliates
11 if one of the organizations is estab-
12 lished for the purpose of disbursing
13 funds for campaign-related activity.
14 ‘‘(III) DETERMINATION OF AF-
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46
1 its local unions, or an organiza-
2 tion of national or international
3 unions and its State and local
4 central bodies.
5 ‘‘(cc) a corporation and its
6 wholly owned subsidiaries.
7 ‘‘(IV) COVERAGE OF TRANSFERS
21 CLOSURE OF DONORS.—Notwithstanding
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1 subsection because the covered organiza-
2 tion is deemed (in accordance with clause
3 (ii)) to have transferred amounts for the
4 purpose of making a public independent
5 expenditure or because clause (iii)(I)(bb)
6 applies to such covered organization, the
7 organization shall include the identification
8 of the person only if the person made do-
9 nations or payments (in the case of a per-
10 son described in clause (i)(I) of subpara-
11 graph (A)) or unrestricted donor payments
12 (in the case of a person described in clause
13 (ii) of subparagraph (A)) to the covered or-
14 ganization during the covered organization
15 reporting period involved in an aggregate
16 amount equal to or exceeding $10,000.
17 ‘‘(C) EXCLUSION OF AMOUNTS DES-
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48
1 there shall be excluded any amount which was
2 designated by the person to be used—
3 ‘‘(i) for campaign-related activity de-
4 scribed in clause (i) of section
5 325(d)(2)(A) (relating to independent ex-
6 penditures) with respect to a different elec-
7 tion, or with respect to a candidate in a
8 different election, than an election which is
9 the subject of any of the public inde-
10 pendent expenditures covered by the report
11 involved; or
12 ‘‘(ii) for any campaign-related activity
13 described in clause (ii) of section
14 325(d)(2)(A) (relating to electioneering
15 communications).
16 ‘‘(D) EXCLUSION OF AMOUNTS PAID FROM
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1 ‘covered organization reporting period’ is, with
2 respect to a report filed by a covered organiza-
3 tion under this subsection—
4 ‘‘(i) in the case of the first report filed
5 by a covered organization under this sub-
6 section which includes information required
7 under this paragraph, the shorter of—
8 ‘‘(I) the period which begins on
9 the effective date of the Democracy is
10 Strengthened by Casting Light on
11 Spending in Elections Act and ends
12 on the last day covered by the report,
13 or
14 ‘‘(II) the 12-month period ending
15 on the last day covered by the report;
16 and
17 ‘‘(ii) in the case of any subsequent re-
18 port filed by a covered organization under
19 this subsection which includes information
20 required under this paragraph, the period
21 occurring since the most recent report filed
22 by the organization which includes such in-
23 formation.
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1 ‘‘(F) COVERED ORGANIZATION DEFINED.—
24 graph—
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1 ‘‘(i) the terms ‘campaign-related activ-
2 ity’ and ‘unrestricted donor payment’ have
3 the meaning given such terms in section
4 325; and
5 ‘‘(ii) the term ‘public independent ex-
6 penditure’ means an independent expendi-
7 ture for a public communication (as de-
8 fined in section 301(22)).’’.
9 (b) ELECTIONEERING COMMUNICATION REPORTS.—
10 (1) IN GENERAL.—Section 304(f) of such Act
11 (2 U.S.C. 434(f)) is amended—
12 (A) by redesignating paragraphs (6) and
13 (7) as paragraphs (7) and (8); and
14 (B) by inserting after paragraph (5) the
15 following new paragraph:
16 ‘‘(6) DISCLOSURE OF ADDITIONAL INFORMA-
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52
1 ing the covered organization reporting pe-
2 riod which was provided for the purpose of
3 being used for campaign-related activity or
4 in response to a solicitation for funds to be
5 used for campaign-related activity—
6 ‘‘(I) subject to subparagraph (C),
7 the identification of each person who
8 made such donations or payments in
9 an aggregate amount equal to or ex-
10 ceeding $1,000 during such period,
11 presented in the order of the aggre-
12 gate amount of donations or payments
13 made by such persons during such pe-
14 riod (with the identification of the
15 person making the largest donation or
16 payment appearing first); and
17 ‘‘(II) if any person identified
18 under subclause (I) designated that
19 the donation or payment be used for
20 campaign-related activity with respect
21 to a specific election or in support of
22 a specific candidate, the name of the
23 election or candidate involved, and if
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1 specific electioneering communication,
2 a description of the communication.
3 ‘‘(ii) The identification of each person
4 who made unrestricted donor payments to
5 the organization during the covered organi-
6 zation reporting period—
7 ‘‘(I) in an aggregate amount
8 equal to or exceeding $1,000 during
9 such period, if the organization made
10 any of the disbursements which are
11 described in subclause (II) from a
12 source other than the organization’s
13 Campaign-Related Activity Account
14 under section 326; or
15 ‘‘(II) in an aggregate amount
16 equal to or exceeding $10,000 during
17 such period, if the organization made
18 from its Campaign-Related Activity
19 Account under section 326 all of its
20 disbursements for electioneering com-
21 munications during such period which
22 are, on the basis of a reasonable belief
23 by the organization, subject to treat-
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1 of the Internal Revenue Code of 1986
2 (but only if the organization has made
3 deposits described in subparagraph
4 (D) of section 326(a)(2) into that Ac-
5 count during such period in an aggre-
6 gate amount equal to or greater than
7 $10,000),
8 presented in the order of the aggregate
9 amount of payments made by such persons
10 during such period (with the identification
11 of the person making the largest payment
12 appearing first).
13 ‘‘(B) TREATMENT OF TRANSFERS MADE
14 TO OTHER PERSONS.—
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1 (ii)) which is deemed to have transferred
2 amounts to another person (other than the
3 covered organization itself) for the purpose
4 of making an electioneering communication
5 by that person or by any other person,
6 shall be considered to have made a dis-
7 bursement for an electioneering commu-
8 nication.
9 ‘‘(ii) RULES FOR DEEMING TRANS-
11 COMMUNICATIONS.—For purposes of
12 clause (i), in determining whether a cov-
13 ered organization which transfers amounts
14 to another person shall be deemed to have
15 transferred the amounts for the purpose of
16 making an electioneering communication,
17 the following rules apply:
18 ‘‘(I) The covered organization
19 shall be deemed to have transferred
20 the amounts for the purpose of mak-
21 ing an electioneering communication
22 if—
23 ‘‘(aa) the covered organiza-
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1 for electioneering communica-
2 tions and the person to whom the
3 amounts were transferred agrees
4 to do so;
5 ‘‘(bb) the person making the
6 electioneering communication or
7 another person acting on that
8 person’s behalf expressly solicited
9 the covered organization for a do-
10 nation or payment for making or
11 paying for any electioneering
12 communications;
13 ‘‘(cc) the covered organiza-
14 tion and the person to whom the
15 amounts were transferred en-
16 gaged in written or oral discus-
17 sion regarding the person either
18 making, or paying for, any elec-
19 tioneering communication, or do-
20 nating or transferring the
21 amounts to another person for
22 that purpose;
23 ‘‘(dd) the covered organiza-
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1 the person to whom the amounts
2 were transferred intended to
3 make electioneering communica-
4 tions; or
5 ‘‘(ee) the covered organiza-
6 tion which transferred the funds
7 or the person to whom the
8 amounts were transferred made
9 one or more electioneering com-
10 munications in an aggregate
11 amount of $50,000 or more dur-
12 ing the 2-year period which ends
13 on the date on which the
14 amounts were transferred.
15 ‘‘(II) The covered organization
16 shall not be deemed to have trans-
17 ferred the amounts for the purpose of
18 making an electioneering communica-
19 tion if—
20 ‘‘(aa) the transfer was a
21 commercial transaction occurring
22 in the ordinary course of business
23 between the covered organization
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1 there is affirmative evidence that
2 the amounts were transferred for
3 the purpose of making an elec-
4 tioneering communication; or
5 ‘‘(bb) the covered organiza-
6 tion and the person to whom the
7 amounts were transferred mutu-
8 ally agreed (as provided in sec-
9 tion 325(b)(1)) that the person
10 will not use the amounts for cam-
11 paign-related activity.
12 ‘‘(iii) SPECIAL RULE REGARDING
15 ‘‘(aa) IN GENERAL.—Clause
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1 amount equal to or greater than
2 $50,000 in a calendar year, any
3 report filed under subparagraph
4 (A) by the covered organization
5 that receives the transferred
6 funds shall include the informa-
7 tion required under that subpara-
8 graph relating to donations or
9 payments made—
10 ‘‘(AA) to the affiliate
11 which transferred the funds
12 where such donations or
13 payments were made to the
14 affiliate in the 12-month pe-
15 riod prior to the transfer,
16 and
17 ‘‘(BB) to any affiliate
18 which transferred an aggre-
19 gate amount equal to or
20 greater than $50,000 to any
21 affiliate described in subitem
22 (AA) in the 12-month period
23 prior to the transfer.
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1 transfer of amounts from one covered
2 organization to another covered orga-
3 nization shall be treated as a transfer
4 between affiliates if—
5 ‘‘(aa) one of the organiza-
6 tions is an affiliate of the other
7 organization; or
8 ‘‘(bb) each of the organiza-
9 tions is an affiliate of the same
10 organization,
11 except that the transfer shall not be
12 treated as a transfer between affiliates
13 if one of the organizations is estab-
14 lished for the purpose of disbursing
15 funds for campaign-related activity.
16 ‘‘(III) DETERMINATION OF AF-
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1 ‘‘(bb) a national or inter-
2 national labor organization and
3 its local unions, or an organiza-
4 tion of national or international
5 unions and its State and local
6 central bodies.
7 ‘‘(cc) a corporation and its
8 wholly owned subsidiaries.
9 ‘‘(IV) COVERAGE OF TRANSFERS
23 CLOSURE OF DONORS.—Notwithstanding
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1 the identification of a person described in
2 such clause in a statement filed under this
3 subsection because the covered organiza-
4 tion is deemed (in accordance with clause
5 (ii)) to have transferred amounts for the
6 purpose of making an electioneering com-
7 munication, the organization shall include
8 the identification of the person only if the
9 person made donations or payments (in the
10 case of a person described in clause (i)(I)
11 of subparagraph (A)) or unrestricted donor
12 payments (in the case of a person de-
13 scribed in clause (ii) of subparagraph (A))
14 to the covered organization during the cov-
15 ered organization reporting period involved
16 in an aggregate amount equal to or exceed-
17 ing $10,000.
18 ‘‘(C) EXCLUSION OF AMOUNTS DES-
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1 there shall be excluded any amount which was
2 designated by the person to be used—
3 ‘‘(i) for campaign-related activity de-
4 scribed in clause (i) of section
5 325(d)(2)(A) (relating to independent ex-
6 penditures) with respect to a different elec-
7 tion, or with respect to a candidate in a
8 different election, than an election which is
9 the subject of any of the public inde-
10 pendent expenditures covered by the report
11 involved; or
12 ‘‘(ii) for any campaign-related activity
13 described in clause (ii) of section
14 325(d)(2)(A) (relating to electioneering
15 communications).
16 ‘‘(D) COVERED ORGANIZATION REPORTING
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1 ‘‘(I) the period which begins on
2 the effective date of the Democracy is
3 Strengthened by Casting Light on
4 Spending in Elections Act and ends
5 on the disclosure date for the state-
6 ment, or
7 ‘‘(II) the 12-month period ending
8 on the disclosure date for the state-
9 ment; and
10 ‘‘(ii) in the case of any subsequent
11 statement filed by a covered organization
12 under this subsection which includes infor-
13 mation required under this paragraph, the
14 period occurring since the most recent
15 statement filed by the organization which
16 includes such information.
17 ‘‘(E) COVERED ORGANIZATION DE-
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1 ‘‘(ii) Any labor organization (as de-
2 fined in section 316).
3 ‘‘(iii) Any organization described in
4 paragraph (4), (5), or (6) of section 501(c)
5 of the Internal Revenue Code of 1986 and
6 exempt from tax under section 501(a) of
7 such Code, other than an exempt section
8 501(c)(4) organization (as defined in sec-
9 tion 301(27)).
10 ‘‘(iv) Any political organization under
11 section 527 of the Internal Revenue Code
12 of 1986, other than a political committee
13 under this Act.
14 ‘‘(F) OTHER DEFINITIONS.—In this para-
15 graph, the terms ‘campaign-related activity’ and
16 ‘unrestricted donor payment’ have the meaning
17 given such terms in section 325.’’.
18 (2) CONFORMING AMENDMENT.—Section
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1 (c) EXEMPTION OF CERTAIN SECTION 501(C)(4) OR-
2 GANIZATIONS.—Section 301 of such Act (2 U.S.C. 431)
3 is amended by adding at the end the following:
4 ‘‘(27) EXEMPT SECTION 501(C)(4) ORGANIZA-
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1 eral States, the District of Columbia, and the
2 Commonwealth of Puerto Rico.
3 ‘‘(D) During the previous calendar year,
4 the portion of funds provided to the organiza-
5 tion by corporations (as described in section
6 316) or labor organizations (as defined in sec-
7 tion 316), other than funds provided pursuant
8 to commercial transactions occurring in the or-
9 dinary course of business, did not exceed 15
10 percent of the total amount of all funds pro-
11 vided to the organization from all sources.
12 ‘‘(E) The organization does not use any of
13 the funds provided to the organization by cor-
14 porations (as described in section 316) or labor
15 organizations (as defined in section 316) for
16 campaign-related activity (as defined in section
17 325).’’.
18 SEC. 212. RULES REGARDING USE OF GENERAL TREASURY
20 CAMPAIGN-RELATED ACTIVITY.
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1 ‘‘SEC. 325. SPECIAL RULES FOR USE OF GENERAL TREAS-
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1 ‘‘(b) MUTUALLY AGREED RESTRICTIONS ON USE OF
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1 communications, so that the person will not be
2 required to appear in a significant funder state-
3 ment or a Top 5 Funders list under section
4 318(e).
5 ‘‘(2) EXCEPTION FOR PAYMENTS MADE PURSU-
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1 consultation, or concert with, or at the request
2 or suggestion of, any candidate or any author-
3 ized committee or agent of such candidate, or
4 political committee of a political party or agent
5 of any political party.
6 ‘‘(B) The chief executive officer or highest
7 ranking official of the covered organization (as
8 the case may be) has reviewed and approved
9 each statement and report filed by the organi-
10 zation under section 304 with respect to any
11 such disbursement made during the quarter.
12 ‘‘(C) Each statement and report filed by
13 the organization under section 304 with respect
14 to any such disbursement made during the
15 quarter is complete and accurate.
16 ‘‘(D) All such disbursements made during
17 the quarter are in compliance with this Act.
18 ‘‘(E) No portion of the amounts used to
19 make any such disbursements during the quar-
20 ter is attributable to funds received by the orga-
21 nization that were subject to a mutual agree-
22 ment (as provided in subsection (b)(1)) that the
23 organization will not use the funds for cam-
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1 vided the funds from being used for campaign-
2 related activity pursuant to subsection (b).
3 ‘‘(2) APPLICATION OF ELECTRONIC FILING
24 of such Code.
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1 ‘‘(B) Any labor organization (as defined in
2 section 316).
3 ‘‘(C) Any organization described in para-
4 graph (4), (5), or (6) of section 501(c) of the
5 Internal Revenue Code of 1986 and exempt
6 from tax under section 501(a) of such Code,
7 other than an exempt section 501(c)(4) organi-
8 zation (as defined in section 301(27)).
9 ‘‘(D) Any political organization under sec-
10 tion 527 of the Internal Revenue Code of 1986,
11 other than a political committee under this Act.
12 ‘‘(2) CAMPAIGN-RELATED ACTIVITY.—
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1 which is deemed to have been made for the
2 purpose of making such an independent ex-
3 penditure by that person or by any other
4 person; or
5 ‘‘(ii) an electioneering communication,
6 a transfer of funds to another person
7 (other than the transferor itself) for the
8 purpose of making an electioneering com-
9 munication by that person or by any other
10 person (subject to subparagraph (C)), or
11 (in accordance with subparagraph (B) and
12 subject to subparagraph (C)) a transfer of
13 funds to another person (other than the
14 transferor itself) which is deemed to have
15 been made for the purpose of making an
16 electioneering communication by that per-
17 son or by any other person.
18 ‘‘(B) RULE FOR DEEMING TRANSFERS
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1 tioneering communication, the following rules
2 apply:
3 ‘‘(i) The transfer shall be deemed to
4 have been made for the purpose of making
5 such an independent expenditure or an
6 electioneering communication if—
7 ‘‘(I) the covered organization des-
8 ignates, requests, or suggests that the
9 amounts be used for such independent
10 expenditures or electioneering commu-
11 nications and the person to whom the
12 amounts were transferred agrees to do
13 so;
14 ‘‘(II) the person making such
15 independent expenditures or election-
16 eering communications or another
17 person acting on that person’s behalf
18 expressly solicited the covered organi-
19 zation for a donation or payment for
20 making or paying for any such inde-
21 pendent expenditure or electioneering
22 communication;
23 ‘‘(III) the covered organization
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1 oral discussion regarding the person
2 either making, or paying for, such
3 independent expenditures or election-
4 eering communications, or donating or
5 transferring the amounts to another
6 person for that purpose;
7 ‘‘(IV) the covered organization
8 which transferred the funds knew or
9 had reason to know that the person to
10 whom the amounts were transferred
11 intended to make such independent
12 expenditures or electioneering commu-
13 nications; or
14 ‘‘(V) the covered organization
15 which transferred the funds or the
16 person to whom the amounts were
17 transferred made one or more such
18 independent expenditures or election-
19 eering communications in an aggre-
20 gate amount of $50,000 or more dur-
21 ing the 2-year period which ends on
22 the date on which the amounts were
23 transferred.
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1 ing such an independent expenditure or an
2 electioneering communication if—
3 ‘‘(I) the transfer was a commer-
4 cial transaction occurring in the ordi-
5 nary course of business between the
6 covered organization and the person
7 to whom the amounts were trans-
8 ferred, unless there is affirmative evi-
9 dence that the amounts were trans-
10 ferred for the purpose of making such
11 an independent expenditure or elec-
12 tioneering communication; or
13 ‘‘(II) the covered organization
14 and the person to whom the amounts
15 were transferred mutually agreed (as
16 provided in subsection (b)(1)) that the
17 person will not use the amounts for
18 campaign-related activity.
19 ‘‘(C) SPECIAL RULE REGARDING TRANS-
22 ‘‘(I) IN GENERAL.—Subpara-
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1 covered organization which is treated
2 as a transfer between affiliates under
3 clause (ii).
4 ‘‘(II) REPORTING BY TRANS-
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1 (aa) in the 12-month period prior
2 to the transfer.
3 ‘‘(ii) DESCRIPTION OF TRANSFERS
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1 local entities of that organization or
2 group;
3 ‘‘(II) a national or international
4 labor organization and its local
5 unions, or an organization of national
6 or international unions and its State
7 and local central bodies.
8 ‘‘(III) a corporation and its whol-
9 ly owned subsidiaries.
10 ‘‘(iv) COVERAGE OF TRANSFERS TO
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1 ered organization, except that such term does not in-
2 clude—
3 ‘‘(A) any payment made pursuant to com-
4 mercial activities in the regular course of a cov-
5 ered organization’s business; or
6 ‘‘(B) any donation or payment which is
7 designated by the person making the donation
8 or payment to be used for campaign-related ac-
9 tivity or made in response to a solicitation for
10 funds to be used for campaign-related activ-
11 ity.’’.
12 SEC. 213. OPTIONAL USE OF SEPARATE ACCOUNT BY COV-
14 LATED ACTIVITY.
21 LATED ACTIVITY.
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1 campaign-related activity using amounts from a
2 bank account established and controlled by the
3 organization to be known as the Campaign-Re-
4 lated Activity Account (hereafter in this section
5 referred to as the ‘Account’), which shall be
6 maintained separately from all other accounts
7 of the organization and which shall consist ex-
8 clusively of the deposits described in paragraph
9 (2).
10 ‘‘(B) MANDATORY USE OF ACCOUNT
22 CAMPAIGN-RELATED ACTIVITY.—Amounts in
23 the Account shall be used exclusively for dis-
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1 ments are made, information with respect to de-
2 posits made to the Account shall be disclosed in
3 accordance with section 304(g)(5) or section
4 304(f)(6).
5 ‘‘(2) DEPOSITS DESCRIBED.—The deposits de-
6 scribed in this paragraph are deposits of the fol-
7 lowing amounts:
8 ‘‘(A) Amounts donated or paid to the cov-
9 ered organization by a person other than the
10 organization for the purpose of being used for
11 campaign-related activity, and for which the
12 person providing the amounts has designated
13 that the amounts be used for campaign-related
14 activity with respect to a specific election or
15 specific candidate.
16 ‘‘(B) Amounts donated or paid to the cov-
17 ered organization by a person other than the
18 organization for the purpose of being used for
19 campaign-related activity, and for which the
20 person providing the amounts has not des-
21 ignated that the amounts be used for campaign-
22 related activity with respect to a specific elec-
23 tion or specific candidate.
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1 organization in response to a solicitation for
2 funds to be used for campaign-related activity.
3 ‘‘(D) Amounts transferred to the Account
4 by the covered organization from other accounts
5 of the organization, including from the organi-
6 zation’s general treasury funds.
7 ‘‘(3) NO TREATMENT AS POLITICAL COM-
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1 the Account which are described in subsection
2 (a)(3)(D) during the year by the amount of the do-
3 nation or payment which is subject to the mutual
4 agreement.
5 ‘‘(2) EXCEPTION.—Paragraph (1) does not
6 apply with respect to any payment made pursuant to
7 commercial activities in the regular course of a cov-
8 ered organization’s business.
9 ‘‘(c) COVERED ORGANIZATION DEFINED.—In this
10 section, the term ‘covered organization’ means any of the
11 following:
12 ‘‘(1) Any corporation which is subject to section
13 316(a), other than a corporation which is an organi-
14 zation described in paragraph (3) of section 501(c)
15 of the Internal Revenue Code of 1986 and exempt
16 from tax under section 501(a) of such Code.
17 ‘‘(2) Any labor organization (as defined in sec-
18 tion 316).
19 ‘‘(3) Any organization described in paragraph
20 (4), (5), or (6) of section 501(c) of the Internal Rev-
21 enue Code of 1986 and exempt from tax under sec-
22 tion 501(a) of such Code, other than an exempt sec-
23 tion 501(c)(4) organization (as defined in section
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24 301(27)).
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1 ‘‘(4) Any political organization under section
2 527 of the Internal Revenue Code of 1986, other
3 than a political committee under this Act.
4 ‘‘(d) CAMPAIGN-RELATED ACTIVITY DEFINED.—In
5 this section, the term ‘campaign-related activity’ has the
6 meaning given such term in section 325.’’.
7 (b) CLARIFICATION OF TREATMENT AS SEPARATE
8 SEGREGATED FUND.—A Campaign-Related Activity Ac-
9 count (within the meaning of section 326 of the Federal
10 Election Campaign Act of 1971, as added by subsection
11 (a)) may be treated as a separate segregated fund for pur-
12 poses of section 527(f)(3) of the Internal Revenue Code
13 of 1986.
14 SEC. 214. MODIFICATION OF RULES RELATING TO DIS-
16 TAIN COMMUNICATIONS.
24 public communication’’.
25 (b) STAND BY YOUR AD REQUIREMENTS.—
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1 (1) MAINTENANCE OF EXISTING REQUIRE-
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1 committee, including a political committee of a polit-
2 ical party) shall include, in addition to the require-
3 ments of that paragraph, the following:
4 ‘‘(A) The individual disclosure statement
5 described in paragraph (2) (if the person pay-
6 ing for the communication is an individual) or
7 the organizational disclosure statement de-
8 scribed in paragraph (3) (if the person paying
9 for the communication is not an individual).
10 ‘‘(B) If the communication is an election-
11 eering communication or an independent ex-
12 penditure consisting of a public communication
13 and is paid for in whole or in part with a pay-
14 ment which is treated as a disbursement by a
15 covered organization for campaign-related activ-
16 ity under section 325, the significant funder
17 disclosure statement described in paragraph (4)
18 (if applicable), unless, on the basis of criteria
19 established in regulations promulgated by the
20 Commission, the communication is of such
21 short duration that including the statement in
22 the communication would constitute a hardship
23 to the person paying for the communication by
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1 communication’s content to consist of the state-
2 ment.
3 ‘‘(C) If the communication is an election-
4 eering communication or an independent ex-
5 penditure consisting of a public communication
6 and is paid for in whole or in part with a pay-
7 ment which is treated as a disbursement by a
8 covered organization for campaign-related activ-
9 ity under section 325, the Top Five Funders
10 list described in paragraph (5) (if applicable),
11 unless, on the basis of criteria established in
12 regulations promulgated by the Commission,
13 the communication is of such short duration
14 that including the Top Five Funders list in the
15 communication would constitute a hardship to
16 the person paying for the communication by re-
17 quiring a disproportionate amount of the com-
18 munication’s content to consist of the Top Five
19 Funders list.
20 ‘‘(2) INDIVIDUAL DISCLOSURE STATEMENT DE-
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1 ‘‘(3) ORGANIZATIONAL DISCLOSURE STATE-
15 MENT DESCRIBED.—
24
25 for this message, and I approve it.’, with the
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1 blank filled in with the name of the applicable
2 individual.
3 ‘‘(B) STATEMENT IF SIGNIFICANT FUNDER
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1 nificant funder’ with respect to an inde-
2 pendent expenditure consisting of a public
3 communication paid for in whole or in part
4 with a payment which is treated as a dis-
5 bursement by a covered organization for
6 campaign-related activity under section
7 325 shall be determined as follows:
8 ‘‘(I) If any report filed by any or-
9 ganization with respect to the inde-
10 pendent expenditure under section
11 304 during the 12-month period
12 which ends on the date of the dis-
13 bursement includes information on
14 any person who made a payment to
15 the organization in an amount equal
16 to or exceeding $100,000 which was
17 designated by the person to be used
18 for campaign-related activity con-
19 sisting of that specific independent ex-
20 penditure (as required to be included
21 in the report under section
22 304(g)(5)(A)(i)), the person who is
23 identified among all such reports as
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1 ‘‘(II) If any report filed by any
2 organization with respect to the inde-
3 pendent expenditure under section
4 304 during the 12-month period
5 which ends on the date of the dis-
6 bursement includes information on
7 any person who made a payment to
8 the organization in an amount equal
9 to or exceeding $100,000 which was
10 designated by the person to be used
11 for campaign-related activity with re-
12 spect to the same election or in sup-
13 port of the same candidate (as re-
14 quired to be included in the report
15 under section 304(g)(5)(A)(i)) but
16 subclause (I) does not apply, the per-
17 son who is identified among all such
18 reports as making the largest such
19 payment.
20 ‘‘(III) If any report filed by any
21 organization with respect to the inde-
22 pendent expenditure under section
23 304 during the 12-month period
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1 any person who made a payment to
2 the organization in an amount equal
3 to or exceeding $10,000 which was
4 provided for the purpose of being used
5 for campaign-related activity or in re-
6 sponse to a solicitation for funds to be
7 used for campaign-related activity (as
8 required to be included in the report
9 under section 304(g)(5)(A)(i)) but
10 subclause (I) or subclause (II) does
11 not apply, the person who is identified
12 among all such reports as making the
13 largest such payment.
14 ‘‘(IV) If none of the reports filed
15 by any organization with respect to
16 the independent expenditure under
17 section 304 during the 12-month pe-
18 riod which ends on the date of the dis-
19 bursement includes information on
20 any person (other than the organiza-
21 tion) who made a payment to the or-
22 ganization in an amount equal to or
23 exceeding $10,000 which was provided
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1 a solicitation for funds to be used for
2 campaign-related activity, but any of
3 such reports includes information on
4 any person who made an unrestricted
5 donor payment to the organization (as
6 required to be included in the report
7 under section 304(g)(5)(A)(ii)) in an
8 amount equal to or exceeding
9 $10,000, the person who is identified
10 among all such reports as making the
11 largest such unrestricted donor pay-
12 ment.
13 ‘‘(ii) ELECTIONEERING COMMUNICA-
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1 which ends on the date of the dis-
2 bursement includes information on
3 any person who made a payment to
4 the organization in an amount equal
5 to or exceeding $100,000 which was
6 designated by the person to be used
7 for campaign-related activity con-
8 sisting of that specific electioneering
9 communication (as required to be in-
10 cluded in the report under section
11 304(f)(6)(A)(i)), the person who is
12 identified among all such reports as
13 making the largest such payment.
14 ‘‘(II) If any report filed by any
15 organization with respect to the elec-
16 tioneering communication under sec-
17 tion 304 during the 12-month period
18 which ends on the date of the dis-
19 bursement includes information on
20 any person who made a payment to
21 the organization in an amount equal
22 to or exceeding $100,000 which was
23 designated by the person to be used
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1 port of the same candidate (as re-
2 quired to be included in the report
3 under section 304(f)(6)(A)(i)) but
4 subclause (I) does not apply, the per-
5 son who is identified among all such
6 reports as making the largest such
7 payment.
8 ‘‘(III) If any report filed by any
9 organization with respect to the elec-
10 tioneering communication under sec-
11 tion 304 during the 12-month period
12 which ends on the date of the dis-
13 bursement includes information on
14 any person who made a payment to
15 the organization in an amount equal
16 to or exceeding $10,000 which was
17 provided for the purpose of being used
18 for campaign-related activity or in re-
19 sponse to a solicitation for funds to be
20 used for campaign-related activity (as
21 required to be included in the report
22 under section 304(f)(6)(A)(i)) but
23 subclause (I) or subclause (II) does
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1 among all such reports as making the
2 largest such payment.
3 ‘‘(IV) If none of the reports filed
4 by any organization with respect to
5 the electioneering communication
6 under section 304 during the 12-
7 month period which ends on the date
8 of the disbursement includes informa-
9 tion on any person who made a pay-
10 ment to the organization in an
11 amount equal to or exceeding $10,000
12 which was provided for the purpose of
13 being used for campaign-related activ-
14 ity or in response to a solicitation for
15 funds to be used for campaign-related
16 activity, but any of such reports in-
17 cludes information on any person who
18 made an unrestricted donor payment
19 to the organization (as required to be
20 included in the report under section
21 304(f)(6)(A)(ii)) in an amount equal
22 to or exceeding $10,000, the person
23 who is identified among all such re-
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1 ‘‘(5) TOP 5 FUNDERS LIST DESCRIBED.—With
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1 that electioneering communication under section
2 304 during the 12-month period which ends on
3 the date of the disbursement, together with the
4 amount of the payments each such person pro-
5 vided.
6 ‘‘(6) METHOD OF CONVEYANCE OF STATE-
7 MENT.—
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1 ‘‘(ii) except in the case of a Top 5
2 Funders list described in paragraph (5),
3 shall also be conveyed by an unobscured,
4 full-screen view of the applicable indi-
5 vidual, or by the applicable individual mak-
6 ing the statement in voice-over accom-
7 panied by a clearly identifiable photograph
8 or similar image of the individual.
9 ‘‘(7) APPLICABLE INDIVIDUAL DEFINED.—In
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1 the communication under paragraph (4) is a
2 labor organization, the highest ranking officer
3 of the labor organization; or
4 ‘‘(D) if the communication is paid for by
5 any other person or if the significant funder of
6 the communication under paragraph (4) is any
7 other person, the highest ranking official of
8 such person.
9 ‘‘(8) COVERED ORGANIZATION DEFINED.—In
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1 ‘‘(D) Any political organization under sec-
2 tion 527 of the Internal Revenue Code of 1986,
3 other than a political committee under this Act.
4 ‘‘(9) OTHER DEFINITIONS.—In this subsection,
5 the terms ‘campaign-related activity’ and ‘unre-
6 stricted donor payment’ have the meaning given
7 such terms in section 325.’’.
8 (3) APPLICATION TO CERTAIN MASS MAIL-
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1 section (e)(7)(B), the name and permanent
2 street address, telephone number, or World
3 Wide Web address of—
4 ‘‘(i) the significant funder of the com-
5 munication, if any (as determined in ac-
6 cordance with subsection (e)(4)(C)(i) or
7 (e)(7)(A)(i); and
8 ‘‘(ii) each person who would be in-
9 cluded in the Top 5 Funders list which
10 would be submitted with respect to the
11 communication if the communication were
12 transmitted through television, if any (as
13 determined in accordance with subsection
14 (e)(5) or (e)(7)(A)(ii)); and
15 ‘‘(C) that the communication is not au-
16 thorized by any candidate or candidate’s com-
17 mittee.’’.
18 (4) APPLICATION TO POLITICAL ROBOCALLS.—
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1 would be subject to the requirements of subsection
2 (e) if the communication were transmitted through
3 radio or television shall include the following:
4 ‘‘(A) The individual disclosure statement
5 described in subsection (e)(2) (if the person
6 paying for the communication is an individual)
7 or the organizational disclosure statement de-
8 scribed in subsection (e)(3) (if the person pay-
9 ing for the communication is not an individual).
10 ‘‘(B) If the communication is an election-
11 eering communication or an independent ex-
12 penditure consisting of a public communication
13 and is paid for in whole or in part with a pay-
14 ment which is treated as a disbursement by a
15 covered organization for campaign-related activ-
16 ity under section 325, or which is paid for in
17 whole or in part by a political committee de-
18 scribed in subsection (e)(7)(B), the significant
19 funder disclosure statement described in sub-
20 section (e)(4) or (e)(7) (if applicable).
21 ‘‘(2) TIMING OF CERTAIN STATEMENT.—The
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1 communication is of such short duration that includ-
2 ing the statement in the communication would con-
3 stitute a hardship to the person paying for the com-
4 munication by requiring a disproportionate amount
5 of the communication’s content to consist of the
6 statement.
7 ‘‘(3) POLITICAL ROBOCALL DEFINED.—In this
8 subsection, the term ‘political robocall’ means any
9 outbound telephone call—
10 ‘‘(A) in which a person is not available to
11 speak with the person answering the call, and
12 the call instead plays a recorded message; and
13 ‘‘(B) which promotes, supports, attacks, or
14 opposes a candidate for election for Federal of-
15 fice.’’.
16 SEC. 215. INDEXING OF CERTAIN AMOUNTS.
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1 graph, such percent difference shall be determined
2 as if the base year referred to in such subparagraph
3 were 2009;
4 ‘‘(2) each amount so increased shall remain in
5 effect for the calendar year; and
6 ‘‘(3) if any amount after adjustment under
7 paragraph (1) is not a multiple of $100, such
8 amount shall be rounded to the nearest multiple of
9 $100.
10 ‘‘(b) AMOUNTS DESCRIBED.—The amounts referred
11 to in this subsection are as follows:
12 ‘‘(1) The amount referred to in section
13 304(g)(5)(A)(i)(I).
14 ‘‘(2) The amount referred to in section
15 304(g)(5)(A)(ii)(I).
16 ‘‘(3) Each of the amounts referred to in section
17 304(g)(5)(A)(ii)(II).
18 ‘‘(4) The amount referred to in section
19 304(g)(5)(B)(ii)(I)(ee).
20 ‘‘(5) Each amount referred to in section
21 304(g)(5)(B)(iii)(I)(bb).
22 ‘‘(6) The amount referred to in section
23 304(f)(6)(A)(i)(I).
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1 ‘‘(8) Each of the amounts referred to in section
2 304(f)(6)(A)(ii)(II).
3 ‘‘(9) The amount referred to in section
4 304(f)(6)(B)(ii)(I)(ee).
5 ‘‘(10) Each amount referred to in section
6 304(f)(6)(B)(iii)(I)(bb).
7 ‘‘(11) The amount referred to in section 317(b).
8 ‘‘(12) Each of the amounts referred to in sec-
9 tion 318(e)(4)(C).
10 ‘‘(13) The amount referred to in section
11 325(d)(2)(B)(i)(V).
12 ‘‘(14) Each amount referred to in section
13 325(d)(2)(C)(i)(II).’’.
14 Subtitle C—Reporting Require-
15 ments for Registered Lobbyists
16 SEC. 221. REQUIRING REGISTERED LOBBYISTS TO REPORT
19 TIONS.
24 graph (F);
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1 (2) by redesignating subparagraph (G) as sub-
2 paragraph (I); and
3 (3) by inserting after subparagraph (F) the fol-
4 lowing new subparagraphs:
5 ‘‘(G) the amount of any independent ex-
6 penditure (as defined in section 301(17) of the
7 Federal Election Campaign Act of 1971 (2
8 U.S.C. 431(17)) equal to or greater than
9 $1,000 made by such person or organization,
10 and for each such expenditure the name of each
11 candidate being supported or opposed and the
12 amount spent supporting or opposing each such
13 candidate;
14 ‘‘(H) the amount of any electioneering
15 communication (as defined in section 304(f)(3)
16 of such Act (2 U.S.C. 434(f)(3)) equal to or
17 greater than $1,000 made by such person or or-
18 ganization, and for each such communication
19 the name of the candidate referred to in the
20 communication; and’’.
21 (b) EFFECTIVE DATE.—The amendments made by
22 this section shall apply with respect to reports for semi-
23 annual periods described in section 5(d)(1) of the Lob-
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1 Subtitle D—Filing by Senate
2 Candidates With Commission
3 SEC. 231. FILING BY SENATE CANDIDATES WITH COMMIS-
4 SION.
17 RELATED ACTIVITY.
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1 ‘‘SEC. 328. DISCLOSURES BY COVERED ORGANIZATIONS TO
4 CAMPAIGN-RELATED ACTIVITY.
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1 ‘‘(D) in the case of a transfer of funds to
2 another person, the information required by
3 subparagraphs (A) through (C), as well as the
4 name of the recipient of the funds and the date
5 and amount of the funds transferred;
6 ‘‘(E) the source of such funds; and
7 ‘‘(F) such other information as the Com-
8 mission determines is appropriate to further the
9 purposes of this subsection.
10 ‘‘(b) POSTING OF OR HYPERLINK TO INFORMATION
11 INCLUDED IN REPORTS FILED WITH COMMISSION.—
12 ‘‘(1) REQUIRING POSTING OF OR HYPERLINK
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1 ‘‘(2) INFORMATION DESCRIBED.—The following
2 information is described in this paragraph:
3 ‘‘(A) The information the organization is
4 required to report under section 304(g)(5)(A)
5 with respect to public independent expenditures.
6 ‘‘(B) The information the organization is
7 required to include in a statement of disburse-
8 ments for electioneering communications under
9 section 304(f)(6).
10 ‘‘(3) DEADLINE; DURATION OF POSTING.—The
24 following:
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1 ‘‘(1) Any corporation which is subject to section
2 316(a), other than a corporation which is an organi-
3 zation described in paragraph (3) of section 501(c)
4 of the Internal Revenue Code of 1986 and exempt
5 from tax under section 501(a) of such Code.
6 ‘‘(2) Any labor organization (as defined in sec-
7 tion 316).
8 ‘‘(3) Any organization described in paragraph
9 (4), (5), or (6) of section 501(c) of the Internal Rev-
10 enue Code of 1986 and exempt from tax under sec-
11 tion 501(a) of such Code, other than an exempt sec-
12 tion 501(c)(4) organization (as defined in section
13 301(27)).
14 ‘‘(4) Any political organization under section
15 527 of the Internal Revenue Code of 1986, other
16 than a political committee under this Act.’’.
17 TITLE IV—OTHER PROVISIONS
18 SEC. 401. JUDICIAL REVIEW.
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1 and an appeal from a decision of the District Court
2 may be taken to the Court of Appeals for the Dis-
3 trict of Columbia Circuit.
4 (2) A copy of the complaint shall be delivered
5 promptly to the Clerk of the House of Representa-
6 tives and the Secretary of the Senate.
7 (b) INTERVENTION BY MEMBERS OF CONGRESS.—In
8 any action in which the constitutionality of any provision
9 of this Act or any amendment made by this Act is raised,
10 any member of the House of Representatives (including
11 a Delegate or Resident Commissioner to the Congress) or
12 Senate who satisfies the requirements for standing under
13 article III of the Constitution shall have the right to inter-
14 vene either in support of or opposition to the position of
15 a party to the case regarding the constitutionality of the
16 provision or amendment. To avoid duplication of efforts
17 and reduce the burdens placed on the parties to the action,
18 the court in any such action may make such orders as
19 it considers necessary, including orders to require interve-
20 nors taking similar positions to file joint papers or to be
21 represented by a single attorney at oral argument.
22 (c) CHALLENGE BY MEMBERS OF CONGRESS.—Any
23 Member of the House of Representatives (including a Del-
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1 scribed in subsection (a), for declaratory or injunctive re-
2 lief to challenge the constitutionality of any provision of
3 this Act or any amendment made by this Act.
4 SEC. 402. NO EFFECT ON PROTECTIONS AGAINST THREATS,
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1 regard to whether or not the Federal Election Commission
2 has promulgated regulations to carry out such amend-
3 ments.
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Calendar No. 476
111TH CONGRESS
2D SESSION S. 3628
S3628
A BILL
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To amend the Federal Election Campaign Act of
1971 to prohibit foreign influence in Federal
elections, to prohibit government contractors
from making expenditures with respect to such
elections, and to establish additional disclosure
requirements with respect to spending in such
elections, and for other purposes.
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