Disclose Act: House (Van Hollen version)

8/9/2019 Disclose Act: House (Van Hollen version)

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(Original Signature of Member)

111TH CONGRESS2D SESSION H. R.ll

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 elec-

tions, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

Mr. VAN HOLLEN introduced the following bill; which was referred to the

Committee onlllllllllllllll

A BILLTo 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.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled,2

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SECTION 1. SHORT TITLE; TABLE OF CONTENTS.1

(a) SHORT TITLE.This Act may be cited as the2

Democracy is Strengthened by Casting Light on Spend-3

ing in Elections Act or the DISCLOSE Act.4

(b) T ABLE OF CONTENTS.The table of contents of5

this Act is as follows:6

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

TITLE IREGULATION OF CERTAIN POLITICAL SPENDING

Sec. 101. Prohibiting independent expenditures and electioneering communica-

tions by government contractors.

Sec. 102. Application of ban on contributions and expenditures by foreign na-tionals to foreign-controlled domestic corporations.

Sec. 103. Treatment of payments for coordinated communications as contribu-

tions.

Sec. 104. Treatment of political party communications made on behalf of can-

didates.

TITLE IIPROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGN-

RELATED ACTIVITY

Subtitle ATreatment of Independent Expenditures and Electioneering

Communications Made by All Persons

Sec. 201. Independent expenditures.Sec. 202. Electioneering communications.

Subtitle BExpanded Requirements for Corporations and Other

Organizations

Sec. 211. Additional information required to be included in reports on disburse-

ments by covered organizations.

Sec. 212. Rules regarding use of general treasury funds by covered organiza-

tions for campaign-related activity.

Sec. 213. Optional use of separate account by covered organizations for cam-

paign-related activity.

Sec. 214. Modification of rules relating to disclaimer statements required for

certain communications.

Subtitle CReporting Requirements for Registered Lobbyists

Sec. 221. Requiring registered lobbyists to report information on independent

expenditures and electioneering communications.

TITLE IIIDISCLOSURE BY COVERED ORGANIZATIONS OF

INFORMATION ON CAMPAIGN-RELATED ACTIVITY

Sec. 301. Requiring disclosure by covered organizations of information on cam-

paign-related activity.



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TITLE IVOTHER PROVISIONS

Sec. 401. Judicial review.

Sec. 402. Severability.

Sec. 403. Effective date.

SEC. 2. FINDINGS.1

(a) GENERAL FINDINGS.Congress finds and de-2

clares as follows:3

(1) Throughout the history of the United4

States, the American people have been rightly con-5

cerned about the power of special interests to control6

our democratic processes. That was true over 1007

years ago when Congress first enacted legislation in-8

tended to restrict corporate funds from being used9

in Federal elections, legislation that Congress in10

1947 reaffirmed was intended to include inde-11

pendent expenditures. The Supreme Court held such12

legislation to be constitutional in 1990 in Austin v.13

Michigan Chamber of Commerce (494 U.S. 652) and14

again in 2003 in McConnell v. F.E.C. (540 U.S. 93).15

(2) The Supreme Courts decision in Citizens16

United v. Federal Election Commission on January17

21, 2010, reverses established jurisprudence and18

sound policy to greatly increase the dangers of19

undue special interest influence over the democratic20

process. That decision has opened the floodgates for21

corporations and labor unions to spend unlimited22



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sums from their general treasury accounts to influ-1

ence the outcome of elections.2

(3) Congress must take action to ensure that3

the American public has all the information nec-4

essary to exercise its free speech and voting rights,5

and must otherwise take narrowly-tailored steps to6

regulate independent expenditures and electioneering7

communications in elections.8

(b) FINDINGS RELATING TO GOVERNMENT CON-9

TRACTORS.Congress finds and declares as follows:10

(1) Government contracting is an activity that11

is particularly susceptible to improper influence, and12

to the appearance of improper influence. Govern-13

ment contracts must be awarded based on an objec-14

tive evaluation of how well bidders or potential con-15

tractors meet relevant statutory criteria.16

(2) Independent expenditures and electioneering17

communications that benefit particular candidates or18

elected officials or disfavor their opponents can lead19

to apparent and actual ingratiation, access, influ-20

ence, and quid pro quo arrangements. Government21

contracts should be awarded based on an objective22

application of statutory criteria, not based on other23

forms of inappropriate or corrupting influence.24



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(3) Prohibiting independent expenditures and1

electioneering communications by persons negoti-2

ating for or performing government contracts will3

prevent government officials involved in or with in-4

fluence over the contracting process from influencing5

the contracting process based, consciously or other-6

wise, on this kind of inappropriate or corrupting in-7

fluence.8




likewise prevent such persons from feeling pressure,12

whether actually exerted by government officials or13

not, to make expenditures and to fund communica-14

tions in order to maximize their chances of receiving15

contracts, or to match similar expenditures and com-16

munications made by their competitors.17

(5) Furthermore, because government contracts18

often involve large amounts of public money, it is19

critical that the public perceive that the government20

contracts are awarded strictly in accordance with21

prescribed statutory standards, and not based on22

other forms of inappropriate or corrupting influence.23

The publics confidence in government is under-24

mined when corporations that make significant ex-25



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penditures during Federal election campaigns later1

receive government funds.2




prevent any appearance that government contracts6

were awarded based in whole or in part on such ex-7

penditures or communications, or based on the inap-8

propriate or corrupting influence such expenditures9

and communications can create and appear to cre-10

ate.11

(7) In these ways, prohibiting independent ex-12

penditures and electioneering communications by13

persons negotiating for or performing government14

contracts will protect the actual and perceived integ-15

rity of the government contracting process.16

(8) Moreover, the risks of waste, fraud and17

abuse, all resulting in economic losses to taxpayers,18

are significant when would-be public contractors or19

applicants for public funds make expenditures in20

Federal election campaigns in order to affect elec-21

toral outcomes.22

(c) FINDINGS RELATING TO FOREIGN CORPORA-23

TIONS.Congress finds and declares as follows:24



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(1) The Supreme Courts decision in the Citi-1

zens United case has provided the means by which2

United States corporations controlled by foreign en-3

tities can freely spend money to influence United4

States elections.5

(2) Foreign corporations commonly own U.S.6

corporations in whole or in part, and U.S. corporate7

equity and debt are also held by foreign individuals,8

sovereign wealth funds, and even foreign nations at9

levels which permit effective control over those U.S.10

entities.11

(3) As recognized in many areas of the law, for-12

eign ownership interests and influences are exerted13

in a perceptible way even when the entity is not ma-14

jority-foreign-owned.15

(4) The Federal government has broad con-16

stitutional power to protect American interests and17

sovereignty from foreign interference and intrusion.18

(5) Congress has a clear interest in minimizing19

foreign intervention, and the perception of foreign20

intervention, in United States elections.21

(d) FINDINGS RELATING TO COORDINATED EXPEND-22

ITURES.Congress finds and declares as follows:23

(1) It has been the consistent view of Congress24

and the courts that coordinated expenditures in25



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campaigns for election are no different in nature1

from contributions.2

(2) Existing rules still allow donors to evade3

contribution limits by making campaign expendi-4

tures which, while technically qualifying as inde-5

pendent expenditures under law, are for all relevant6

purposes coordinated with candidates and political7

parties and thus raise the potential for corruption or8

the appearance of corruption.9

(3) Such arrangements have the potential to10

give rise to the reality or appearance of corruption11

to the same degree that direct contributions to a12

candidate may give rise to the reality or appearance13

of corruption. Moreover, expenditures which are in14

fact made in coordination with a candidate or polit-15

ical party have the potential to lessen the publics16

trust and faith in the rules and the integrity of the17

electoral process.18

(4) The government therefore has a compelling19

interest in making sure that expenditures that are20

de facto coordinated with a candidate are treated as21

such to prevent corruption, the appearance of cor-22

ruption, or the perception that some participants are23

circumventing the laws and regulations which govern24

the financing of election campaigns.25



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(e) FINDINGS RELATING TO DISCLOSURES AND DIS-1

CLAIMERS.Congress finds and declares as follows:2

(1) The American people have a compelling in-3

terest in knowing who is funding independent ex-4

penditures and electioneering communications to in-5

fluence Federal elections, and the government has a6

compelling interest in providing the public with that7

information. Effective disclaimers and prompt disclo-8

sure of expenditures, and the disclosure of the fund-9

ing sources for these expenditures, can provide10

shareholders, voters, and citizens with the informa-11

tion needed to evaluate the actions by special inter-12

ests seeking influence over the democratic process.13

Transparency promotes accountability, increases the14

fund of information available to the public con-15

cerning the support given to candidates by special16

interests, sheds the light of publicity on political17

spending, and encourages the leaders of organiza-18

tions to act only upon legitimate organizational pur-19

poses.20

(2) Protecting this compelling interest has be-21

come particularly important to address the antici-22

pated increase in special interest spending on elec-23

tion-related communications which will result from24

the Supreme Courts decision in the Citizens United25



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case. The current disclosure and disclaimer require-1

ments were designed for a campaign finance system2

in which such expenditures were subject to prohibi-3

tions that no longer apply.4

(3) More rigorous disclosure and disclaimer re-5

quirements are necessary to protect against the eva-6

sion of current rules. Organizations that engage in7

election-related communications have used a variety8

of methods to attempt to obscure their sponsorship9

of communications from the general public. Robust10

disclosure and disclaimer requirements are necessary11

to ensure that the electorate is informed about who12

is paying for particular election-related communica-13

tions, and so that the shareholders and members of14

these organizations are aware of their organizations15

election-related spending.16

(4) The current lack of accountability and17

transparency allow special interest political spending18

to serve as a private benefit for the officials of spe-19

cial interest organizations, to the detriment of the20

organizations and their shareholders and members.21

(f) FINDINGS RELATING TO CAMPAIGN SPENDING BY22

LOBBYISTS.Congress finds and declares as follows:23



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(1) Lobbyists and lobbying organizations, and1

through them, their clients, influence the public deci-2

sion-making process in a variety of ways.3

(2) In recent years, scandals involving undue4

lobbyist influence have lowered public trust in gov-5

ernment and jeopardized the willingness of voters to6

take part in democratic governance.7

(3) One way in which lobbyists may unduly in-8

fluence Federal officials is through their or their cli-9

ents making independent expenditures or election-10

eering communications targeting elected officials.11

(4) Disclosure of such independent expenditures12

and electioneering communications will allow the13

public to examine connections between such spend-14

ing and official actions, and will therefore limit the15

ability of lobbyists to exert an undue influence on16

elected officials.17

TITLE IREGULATION OF18

CERTAIN POLITICAL SPENDING19

SEC. 101. PROHIBITING INDEPENDENT EXPENDITURES AND20

ELECTIONEERING COMMUNICATIONS BY21

GOVERNMENT CONTRACTORS.22

(a) PROHIBITION APPLICABLE TO GOVERNMENT23

CONTRACTORS.24

(1) PROHIBITION.25



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(A) IN GENERAL.Section 317(a)(1) of1

the Federal Election Campaign Act (2 U.S.C.2

441c(a)(1)) is amended by striking purpose or3

use; or and inserting the following: purpose4

or use, to make any independent expenditure,5

or to disburse any funds for an electioneering6

communication; or.7

(B) CONFORMING AMENDMENT.The8

heading of section 317 of such Act (2 U.S.C.9

441c) is amended by striking CONTRIBU-10

TIONS and inserting CONTRIBUTIONS, INDE-11

PENDENT EXPENDITURES, AND ELECTION-12

EERING COMMUNICATIONS.13

(2) THRESHOLD FOR APPLICATION OF BAN.14

Section 317 of such Act (2 U.S.C. 441c) is amend-15

ed16

(A) by redesignating subsections (b) and17

(c) as subsections (c) and (d); and18

(B) by inserting after subsection (a) the19

following new subsection:20

(b) To the extent that subsection (a)(1) prohibits21

a person who enters into a contract described in such sub-22

section from making any independent expenditure or dis-23

bursing funds for an electioneering communication, such24



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subsection shall apply only if the value of the contract is1

equal to or greater than $50,000..2

(b) APPLICATION TO RECIPIENTS OF ASSISTANCE3

UNDER TROUBLED ASSET PROGRAM.Section 317(a) of4

such Act (2 U.S.C. 441c(a)) is amended5

(1) by striking or at the end of paragraph6

(1);7

(2) by redesignating paragraph (2) as para-8

graph (3); and9

(3) by inserting after paragraph (1) the fol-10

lowing new paragraph:11

(2) who enters into negotiations for financial12

assistance under title I of the Emergency Economic13

Stabilization Act of 2008 (12 U.S.C. 5211 et seq.)14

(relating to the purchase of troubled assets by the15

Secretary of the Treasury), during the period16

(A) beginning on the later of the com-17

mencement of the negotiations or the date of18

the enactment of the Democracy is Strength-19

ened by Casting Light on Spending in Elections20

Act; and21

(B) ending with the later of the termi-22

nation of such negotiations or the repayment of23

such financial assistance;24



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directly or indirectly to make any contribution of1

money or other things of value, or to promise ex-2

pressly or impliedly to make any such contribution3

to any political party, committee, or candidate for4

public office or to any person for any political pur-5

pose or use, to make any independent expenditure,6

or to disburse any funds for an electioneering com-7

munication; or.8

(c) TECHNICAL AMENDMENT.Section 317 of such9

Act (2 U.S.C. 441c) is amended by striking section 32110

each place it appears and inserting section 316.11

SEC. 102. APPLICATION OF BAN ON CONTRIBUTIONS AND12

EXPENDITURES BY FOREIGN NATIONALS TO13

FOREIGN-CONTROLLED DOMESTIC COR-14

PORATIONS.15

(a) APPLICATION OF BAN.Section 319(b) of the16

Federal Election Campaign Act of 1971 (2 U.S.C.17

441e(b)) is amended18

(1) by striking or at the end of paragraph19

(1);20

(2) by striking the period at the end of para-21

graph (2) and inserting ; or; and22

(3) by adding at the end the following new23

paragraph:24



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(3) any corporation which is not a foreign na-1

tional described in paragraph (1) and2

(A) in which a foreign national described3

in paragraph (1) or (2) directly or indirectly4

owns 20 percent or more of the voting shares;5

(B) with respect to which the majority of6

the members of the board of directors are for-7

eign nationals described in paragraph (1) or8

(2);9

(C) over which one or more foreign na-10

tionals described in paragraph (1) or (2) has11

the power to direct, dictate, or control the deci-12

sion-making process of the corporation with re-13

spect to its interests in the United States; or14

(D) over which one or more foreign na-15

tionals described in paragraph (1) or (2) has16

the power to direct, dictate, or control the deci-17

sion-making process of the corporation with re-18

spect to activities in connection with a Federal,19

State, or local election, including20

(i) the making of a contribution, do-21

nation, expenditure, independent expendi-22

ture, or disbursement for an electioneering23

communication (within the meaning of sec-24

tion 304(f)(3)); or25



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(ii) the administration of a political1

committee established or maintained by the2

corporation..3

(b) CERTIFICATION OF COMPLIANCE.Section 3194

of such Act (2 U.S.C. 441e) is amended by adding at the5

end the following new subsection:6

(c) CERTIFICATION OF COMPLIANCE REQUIRED7

PRIOR TO CARRYING OUT ACTIVITY.Prior to the mak-8

ing of any contribution, donation, expenditure, inde-9

pendent expenditure, or disbursement for an election-10

eering communication by a corporation during a year, the11

chief executive officer of the corporation (or, if the cor-12

poration does not have a chief executive officer, the high-13

est ranking official of the corporation), shall file a certifi-14

cation with the Commission, under penalty of perjury, that15

the corporation is not prohibited from carrying out such16

activity under subsection (b)(3), unless the chief executive17

officer has previously filed such a certification during the18

year..19

(c) NO EFFECT ON OTHER LAWS.Section 319 of20

such Act (2 U.S.C. 441e), as amended by subsection (b),21

is further amended by adding at the end the following new22

subsection:23

(d) NO EFFECT ON OTHER LAWS.Nothing in this24

section shall be construed to affect the determination of25



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whether a corporation is treated as a foreign national for1

purposes of any law other than this Act..2

SEC. 103. TREATMENT OF PAYMENTS FOR COORDINATED3

COMMUNICATIONS AS CONTRIBUTIONS.4

(a) IN GENERAL.Section 301(8)(A) of the Federal5

Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)) is6

amended7

(1) by striking or at the end of clause (i);8

(2) by striking the period at the end of clause9

(ii) and inserting ; or; and10


clause:12

(iii) any payment made by any person13

(other than a candidate, an authorized com-14

mittee of a candidate, or a political committee15

of a political party) for a coordinated commu-16

nication (as determined under section 324)..17

(b) COORDINATED COMMUNICATIONS DESCRIBED.18

Section 324 of such Act (2 U.S.C. 431 et seq.) is amended19

to read as follows:20

SEC. 324. COORDINATED COMMUNICATIONS.21

(a) COORDINATED COMMUNICATIONS DEFINED.22

For purposes of this Act, the term coordinated commu-23

nication means24



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(1) a covered communication which is made in1

cooperation, consultation, or concert with, or at the2

request or suggestion of, a candidate, an authorized3

committee of a candidate, or a political committee of4

a political party; or5

(2) any communication that republishes, dis-6

seminates, or distributes, in whole or in part, any7

broadcast or any written, graphic, or other form of8

campaign material prepared by a candidate, an au-9

thorized committee of a candidate, or their agents.10

(b) COVERED COMMUNICATION DEFINED.11

(1) IN GENERAL.Except as provided in para-12

graph (4), for purposes of this subsection, the term13

covered communication means, for purposes of the14

applicable election period described in paragraph (2),15

a publicly distributed or disseminated communica-16

tion that refers to a clearly identified candidate for17

Federal office and is publicly distributed or publicly18

disseminated during such period.19

(2) APPLICABLE ELECTION PERIOD.For20

purposes of paragraph (1), the applicable election21

period with respect to a communication means22

(A) in the case of a communication which23

refers to a candidate for the office of President24

or Vice President, the period25



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(i) beginning with the date that is1

120 days before the date of the first pri-2

mary election, preference election, or nomi-3

nating convention for nomination for the4

office of President which is held in any5

State; and6

(ii) ending with the date of the gen-7

eral election for such office; or8

(B) in the case of a communication which9

refers to a candidate for any other Federal of-10

fice, the period11

(i) beginning with the date that is 9012

days before the earliest of the primary13

election, preference election, or nominating14

convention with respect to the nomination15

for the office that the candidate is seeking;16

and17

(ii) ending with the date of the gen-18

eral election for such office.19

(3) SPECIAL RULE FOR PUBLIC DISTRIBUTION20

OF COMMUNICATIONS INVOLVING CONGRESSIONAL21

CANDIDATES.For purposes of paragraph (1), in22

the case of a communication involving a candidate23

for an office other than President or Vice President,24

the communication shall be considered to be publicly25



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distributed or publicly disseminated only if the dis-1

semination or distribution occurs in the jurisdiction2

of the office that the candidate is seeking.3

(4) EXCEPTION.The term covered commu-4

nication does not include5

(A) a communication appearing in a news6

story, commentary, or editorial distributed7

through the facilities of any broadcasting sta-8

tion, newspaper, magazine, or other periodical9

publication, unless such facilities are owned or10

controlled by any political party, political com-11

mittee, or candidate; or12

(B) a communication which constitutes a13

candidate debate or forum conducted pursuant14

to the regulations adopted by the Commission15

to carry out section 304(f)(3)(B)(iii), or which16

solely promotes such a debate or forum and is17

made by or on behalf of the person sponsoring18

the debate or forum.19

(c) TREATMENT OF COORDINATION WITH POLIT-20

ICAL P ARTIES FOR COMMUNICATIONS REFERRING TO21

CANDIDATES.For purposes of this section, if a commu-22

nication which refers to any clearly identified candidate23

or candidates of a political party or any opponent of such24

a candidate or candidates is determined to have been made25



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in cooperation, consultation, or concert with or at the re-1

quest or suggestion of a political committee of the political2

party but not in cooperation, consultation, or concert with3

or at the request or suggestion of such clearly identified4

candidate or candidates, the communication shall be treat-5

ed as having been made in cooperation, consultation, or6

concert with or at the request or suggestion of the political7

committee of the political party but not with or at the8

request or suggestion of such clearly identified candidate9

or candidates..10

(c) EFFECTIVE DATE.11

(1) IN GENERAL.This section and the amend-12

ments made by this section shall apply with respect13

to payments made on or after the expiration of the14

30-day period which begins on the date of the enact-15

ment of this Act, without regard to whether or not16

the Federal Election Commission has promulgated17

regulations to carry out such amendments.18

(2) TRANSITION RULE FOR ACTIONS TAKEN19

PRIOR TO ENACTMENT.No person shall be consid-20

ered to have made a payment for a coordinated com-21

munication under section 324 of the Federal Elec-22

tion Campaign Act of 1971 (as amended by sub-23

section (b)) by reason of any action taken by the24

person prior to the date of the enactment of this25



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Act. Nothing in the previous sentence shall be con-1

strued to affect any determination under any other2

provision of such Act which is in effect on the date3

of the enactment of this Act regarding whether a4

communication is made in cooperation, consultation,5

or concert with, or at the request or suggestion of,6

a candidate, an authorized committee of a candidate,7

or a political committee of a political party.8

SEC. 104. TREATMENT OF POLITICAL PARTY COMMUNICA-9

TIONS MADE ON BEHALF OF CANDIDATES.10

(a) TREATMENT OF P AYMENT FOR COMMUNICATION11

AS CONTRIBUTION IF MADE UNDER CONTROL OR DIREC-12

TION OF CANDIDATE.Section 301(8)(A) of the Federal13

Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)), as14

amended by section 103(a), is amended15

(1) by striking or at the end of clause (ii);16

(2) by striking the period at the end of clause17

(iii) and inserting ; or; and18


clause:20

(iv) any payment by a political committee21

of a political party for the direct costs of a com-22

munication made on behalf of a candidate for23

Federal office who is affiliated with such party,24

but only if the communication is controlled by,25



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or made at the direction of, the candidate or an1

authorized committee of the candidate..2

(b) REQUIRING CONTROL OR DIRECTION BY CAN-3

DIDATE FOR TREATMENT AS COORDINATED PARTY EX-4

PENDITURE.5

(1) IN GENERAL.Paragraph (4) of section6

315(d) of such Act (2 U.S.C. 441a(d)) is amended7

to read as follows:8

(4) SPECIAL RULE FOR DIRECT COSTS OF COMMU-9

NICATIONS.The direct costs incurred by a political com-10

mittee of a political party for a communication made in11

connection with the campaign of a candidate for Federal12

office shall not be subject to the limitations contained in13

paragraphs (2) and (3) unless the communication is con-14

trolled by, or made at the direction of, the candidate or15

an authorized committee of the candidate..16

(2) CONFORMING AMENDMENT.Paragraph (1)17

of section 315(d) of such Act (2 U.S.C. 441a(d)) is18

amended by striking paragraphs (2), (3), and (4)19

and inserting paragraphs (2) and (3).20

(c) EFFECTIVE DATE.This section and the amend-21

ments made by this section shall apply with respect to pay-22

ments made on or after the expiration of the 30-day period23

which begins on the date of the enactment of this Act,24

without regard to whether or not the Federal Election25



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Commission has promulgated regulations to carry out1

such amendments.2

TITLE IIPROMOTING EFFEC-3

TIVE DISCLOSURE OF CAM-4

PAIGN-RELATED ACTIVITY5

Subtitle ATreatment of Inde-6

pendent Expenditures and Elec-7

tioneering Communications8

Made by All Persons9

SEC. 201. INDEPENDENT EXPENDITURES.10

(a) REVISION OF DEFINITION.Subparagraph (A) of11

section 301(17) of the Federal Election Campaign Act of12

1971 (2 U.S.C. 431(17)) is amended to read as follows:13

(A) that, when taken as a whole, ex-14

pressly advocates the election or defeat of a15

clearly identified candidate, or is the functional16

equivalent of express advocacy because it can be17

interpreted by a reasonable person only as ad-18

vocating the election or defeat of a candidate,19

taking into account whether the communication20

involved mentions a candidacy, a political party,21

or a challenger to a candidate, or takes a posi-22

tion on a candidates character, qualifications,23

or fitness for office; and.24



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(b) UNIFORM 24HOUR REPORTING FOR PERSONS1

MAKING INDEPENDENT EXPENDITURES EXCEEDING2

$10,000 AT ANY TIME.Section 304(g) of such Act (23

U.S.C. 434(g)) is amended by striking paragraphs (1) and4

(2) and inserting the following:5

(1) INDEPENDENT EXPENDITURES EXCEED-6

ING THRESHOLD AMOUNT.7

(A) INITIAL REPORT.A person (includ-8

ing a political committee) that makes or con-9

tracts to make independent expenditures in an10

aggregate amount equal to or greater than the11

threshold amount described in paragraph (2)12

shall file a report describing the expenditures13

within 24 hours.14

(B) ADDITIONAL REPORTS.After a per-15

son files a report under subparagraph (A), the16

person shall file an additional report within 2417

hours after each time the person makes or con-18

tracts to make independent expenditures in an19

aggregate amount equal to or greater than the20

threshold amount with respect to the same elec-21

tion as that to which the initial report relates.22

(2) THRESHOLD AMOUNT DESCRIBED.In23

paragraph (1), the threshold amount means24



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(A) during the period up to and including1

the 20th day before the date of an election,2

$10,000; or3

(B) during the period after the 20th day,4

but more than 24 hours, before the date of an5

election, $1,000..6

(c) EFFECTIVE DATE.7

(1) IN GENERAL.The amendment made by8

subsection (a) shall apply with respect to contribu-9

tions and expenditures made on or after the expira-10

tion of the 30-day period which begins on the date11

of the enactment of this Act, without regard to12

whether or not the Federal Election Commission has13

promulgated regulations to carry out such amend-14

ments.15

(2) REPORTING REQUIREMENTS.The amend-16

ment made by subsection (b) shall apply with re-17

spect to reports required to be filed after the date18

of the enactment of this Act.19

SEC. 202. ELECTIONEERING COMMUNICATIONS.20

(a) PERIOD DURING WHICH COMMUNICATIONS21

TREATED AS ELECTIONEERING COMMUNICATIONS.22

(1) E XPANSION OF PERIOD COVERING GENERAL23

ELECTION.Section 304(f)(3)(A)(i)(II)(aa) of the24

Federal Election Campaign Act of 1971 (2 U.S.C.25



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434(f)(3)(A)(i)(II)(aa)) is amended by striking 601

days and inserting 120 days.2

(2) EFFECTIVE DATE; TRANSITION FOR COM-3

MUNICATIONS MADE PRIOR TO ENACTMENT.The4

amendment made by paragraph (1) shall apply with5

respect to communications made on or after the date6

of the enactment of this Act, without regard to7

whether or not the Federal Election Commission has8

promulgated regulations to carry out such amend-9

ments, except that no communication which is made10

prior to the date of the enactment of this Act shall11

be treated as an electioneering communication under12

section 304(f)(3)(A)(i)(II) of the Federal Election13

Campaign Act of 1971 (as amended by paragraph14

(1)) unless the communication would be treated as15

an electioneering communication under such section16

if the amendment made by paragraph (1) did not17

apply.18

(b) REQUIRING REPORTS TO INCLUDE INFORMATION19

ON INTENDED T ARGET OF COMMUNICATIONS.Section20

304(f)(2)(D) of such Act (2 U.S.C. 434(f)(2)(D)) is21

amended22

(1) by striking and the names and inserting23

, the names; and24



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(2) by inserting , and (if applicable) a state-1

ment regarding whether the communications are in-2

tended to support or oppose such candidates before3

the period at the end.4

Subtitle BExpanded Require-5

ments for Corporations and6

Other Organizations7

SEC. 211. ADDITIONAL INFORMATION REQUIRED TO BE IN-8

CLUDED IN REPORTS ON DISBURSEMENTS BY9

COVERED ORGANIZATIONS.10

(a) INDEPENDENT EXPENDITURE REPORTS.Sec-11

tion 304(g) of the Federal Election Campaign Act of 197112

(2 U.S.C. 434(g)) is amended by adding at the end the13

following new paragraph:14

(5) DISCLOSURE OF ADDITIONAL INFORMA-15

TION BY COVERED ORGANIZATIONS MAKING PAY-16

MENTS FOR PUBLIC INDEPENDENT EXPENDI-17

TURES.18

(A) ADDITIONAL INFORMATION.If a19

covered organization makes or contracts to20

make public independent expenditures in an ag-21

gregate amount equal to or exceeding $10,00022

in a calendar year, the report filed by the orga-23

nization under this subsection shall include, in24



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addition to the information required under1

paragraph (3), the following information:2

(i) If any person made a donation or3

payment to the covered organization dur-4

ing the covered organization reporting pe-5

riod which was provided for the purpose of6

being used for campaign-related activity or7

in response to a solicitation for funds to be8

used for campaign-related activity9

(I) subject to subparagraph (C),10

the identification of each person who11

made such donations or payments in12

an aggregate amount equal to or ex-13

ceeding $600 during such period, pre-14

sented in the order of the aggregate15

amount of donations or payments16

made by such persons during such pe-17

riod (with the identification of the18

person making the largest donation or19

payment appearing first); and20

(II) if any person identified21

under subclause (I) designated that22

the donation or payment be used for23

campaign-related activity with respect24

to a specific election or in support of25



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a specific candidate, the name of the1

election or candidate involved, and if2

any such person designated that the3

donation or payment be used for a4

specific public independent expendi-5

ture, a description of the expenditure.6

(ii) The identification of each person7

who made unrestricted donor payments to8

the organization during the covered organi-9

zation reporting period10

(I) in an aggregate amount11

equal to or exceeding $600 during12

such period, if any of the disburse-13

ments made by the organization for14

any of the public independent expendi-15

tures which are covered by the report16

were not made from the organizations17

Campaign-Related Activity Account18

under section 326; or19

(II) in an aggregate amount20

equal to or exceeding $6,000 during21

such period, if the disbursements22

made by the organization for all of23

the public independent expenditures24

which are covered by the report were25



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made exclusively from the organiza-1

tions Campaign-Related Activity Ac-2

count under section 326 (but only if3

the organization has made deposits4

described in subparagraph (D) of sec-5

tion 326(a)(2) into that Account dur-6

ing such period in an aggregate7

amount equal to or greater than8

$10,000),9

presented in the order of the aggregate10

amount of payments made by such persons11

during such period (with the identification12

of the person making the largest payment13

appearing first).14

(B) TREATMENT OF TRANSFERS MADE15

TO OTHER PERSONS.16

(i) IN GENERAL.For purposes of17

the requirement to file reports under this18

subsection (including the requirement19

under subparagraph (A) to include addi-20

tional information in such reports), a cov-21

ered organization which transfers amounts22

to another person for the purpose of mak-23

ing a public independent expenditure by24

that person or by any other person, or (in25



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accordance with clause (ii)) which is1

deemed to have transferred amounts to an-2

other person for the purpose of making a3

public independent expenditure by that4

person or by any other person, shall be5

considered to have made a public inde-6

pendent expenditure.7

(ii) RULES FOR DEEMING TRANS-8

FERS MADE FOR PURPOSE OF MAKING EX-9

PENDITURES.For purposes of clause (i),10

in determining whether a covered organiza-11

tion or any other person who transfers12

amounts to another person shall be deemed13

to have transferred the amounts for the14

purpose of making a public independent15

expenditure, the following rules apply:16

(I) The person shall be deemed17

to have transferred the amounts for18

the purpose of making a public inde-19

pendent expenditure if20

(aa) the person making the21

public independent expenditure22

or another person acting on that23

persons behalf solicited funding24

from the person or from the per-25



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son to whom the amounts were1

transferred for making any pub-2

lic independent expenditures,3

(bb) the person and the4

person to whom the amounts5

were transferred engaged in sub-6

stantial discussion (whether writ-7

ten or verbal) regarding the mak-8

ing of public independent expend-9

itures,10

(cc) the person or the per-11


transferred knew or should have13

known of the covered organiza-14

tions intent to make public inde-15

pendent expenditures, or16

(dd) the person or the per-17


transferred made a public inde-19

pendent expenditure during the20

election cycle involved or the pre-21

vious election cycle (as defined in22

section 301(25)).23

(II) The person shall not be24

deemed to have transferred the25



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amounts for the purpose of making a1

public independent expenditure if the2

transfer was a commercial transaction3

occurring in the ordinary course of4

business between the person and the5

person to whom the amounts were6

transferred.7

(C) E XCLUSION OF AMOUNTS DES-8

IGNATED FOR OTHER CAMPAIGN-RELATED AC-9

TIVITY.For purposes of subparagraph (A)(i),10

in determining the amount of a donation or11

payment made by a person which was provided12

for the purpose of being used for campaign-re-13

lated activity or in response to a solicitation for14

funds to be used for campaign-related activity,15

there shall be excluded any amount which was16

designated by the person to be used17

(i) for campaign-related activity de-18

scribed in clause (i) of section19

325(d)(2)(A) (relating to independent ex-20

penditures) with respect to a different elec-21

tion, or with respect to a candidate in a22

different election, than an election which is23

the subject of any of the public inde-24



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pendent expenditures covered by the report1

involved; or2

(ii) for any campaign-related activity3

described in clause (ii) of section4

325(d)(2)(A) (relating to electioneering5

communications).6

(D) E XCLUSION OF AMOUNTS PAID FROM7

SEPARATE SEGREGATED FUND.In deter-8

mining the amount of public independent ex-9

penditures made by a covered organization for10

purposes of this paragraph, there shall be ex-11

cluded any amounts paid from a separate seg-12

regated fund established and administered by13

the organization under section 316(b)(2)(C).14

(E) COVERED ORGANIZATION REPORTING15

PERIOD DESCRIBED.In this paragraph, the16

covered organization reporting period is, with17

respect to a report filed by a covered organiza-18

tion under this subsection19

(i) in the case of the first report filed20

by a covered organization under this sub-21

section which includes information required22

under this paragraph, the shorter of23

(I) the period which begins on24

the effective date of the Democracy is25



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Strengthened by Casting Light on1

Spending in Elections Act and ends2

on the last day covered by the report,3

or4

(II) the 12-month period ending5

on the last day covered by the report;6

and7

(ii) in the case of any subsequent re-8

port filed by a covered organization under9

this subsection which includes information10

required under this paragraph, the period11

occurring since the most recent report filed12

by the organization which includes such in-13

formation.14

(F) COVERED ORGANIZATION DEFINED.15

In this paragraph, the term covered organiza-16

tion means any of the following:17

(i) Any corporation which is subject18

to section 316(a).19

(ii) Any labor organization (as de-20

fined in section 316).21

(iii) Any organization described in22

paragraph (4), (5), or (6) of section 501(c)23

of the Internal Revenue Code of 1986 and24



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exempt from tax under section 501(a) of1

such Code.2

(iv) Any political organization under3

section 527 of the Internal Revenue Code4

of 1986, other than a political committee5

under this Act.6

(G) OTHER DEFINITIONS.In this para-7

graph8

(i) the terms campaign-related activ-9

ity and unrestricted donor payment have10

the meaning given such terms in section11

325; and12

(ii) the term public independent ex-13

penditure means an independent expendi-14

ture for a public communication (as de-15

fined in section 301(22))..16

(b) ELECTIONEERING COMMUNICATION REPORTS.17

(1) IN GENERAL.Section 304(f) of such Act18

(2 U.S.C. 434(f)) is amended19

(A) by redesignating paragraphs (6) and20

(7) as paragraphs (7) and (8); and21

(B) by inserting after paragraph (5) the22

end the following new paragraph:23

(6) DISCLOSURE OF ADDITIONAL INFORMA-24

TION BY COVERED ORGANIZATIONS.25



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(A) ADDITIONAL INFORMATION.If a1

covered organization files a statement under2

this subsection, the statement shall include, in3

addition to the information required under4

paragraph (2), the following information:5

(i) If any person made a donation or6

payment to the covered organization dur-7

ing the covered organization reporting pe-8

riod which was provided for the purpose of9

being used for campaign-related activity or10

in response to a solicitation for funds to be11

used for campaign-related activity12

(I) subject to subparagraph (C),13

the identification of each person who14

made such donations or payments in15

an aggregate amount equal to or ex-16

ceeding $1,000 during such period,17

presented in the order of the aggre-18

gate amount of donations or payments19

made by such persons during such pe-20

riod (with the identification of the21

person making the largest donation or22

payment appearing first); and23

(II) if any person identified24

under subclause (I) designated that25



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the donation or payment be used for1

campaign-related activity with respect2

to a specific election or in support of3

a specific candidate, the name of the4

election or candidate involved, and if5

any such person designated that the6

donation or payment be used for a7

specific electioneering communication,8

a description of the communication.9

(ii) The identification of each person10

who made unrestricted donor payments to11

the organization during the covered organi-12

zation reporting period13

(I) in an aggregate amount14


such period, if any of the disburse-16

ments made by the organization for17

any of the electioneering communica-18

tions which are covered by the state-19

ment were not made from the organi-20

zations Campaign-Related Activity21

Account under section 326; or22

(II) in an aggregate amount23


such period, if the disbursements25



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made by the organization for all of1

the electioneering communications2

which are covered by the statement3

were made exclusively from the orga-4

nizations Campaign-Related Activity5

Account under section 326 (but only6

if the organization has made deposits7

described in subparagraph (D) of sec-8

tion 326(a)(2) into that Account dur-9

ing such period in an aggregate10

amount equal to or greater than11

$10,000),12

presented in the order of the aggregate13

amount of payments made by such persons14

during such period (with the identification15

of the person making the largest payment16

appearing first).17

(B) TREATMENT OF TRANSFERS MADE18

TO OTHER PERSONS.19

(i) IN GENERAL.For purposes of20

the requirement to file statements under21

this subsection (including the requirement22

under subparagraph (A) to include addi-23

tional information in such statements), a24

covered organization which transfers25



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amounts to another person for the purpose1

of making an electioneering communication2

by that person or by any other person, or3

(in accordance with clause (ii)) which is4

deemed to have transferred amounts to an-5

other person for the purpose of making an6

electioneering communication by that per-7

son or by any other person, shall be con-8

sidered to have made a disbursement for9

an electioneering communication.10

(ii) RULES FOR DEEMING TRANS-11

FERS MADE FOR PURPOSE OF MAKING12

COMMUNICATIONS.For purposes of13

clause (i), in determining whether a cov-14

ered organization or any other person who15

transfers amounts to another person shall16

be deemed to have transferred the amounts17

for the purpose of making an election-18

eering communication, the following rules19

apply:20

(I) The person shall be deemed21

to have transferred the amounts for22

the purpose of making an election-23

eering communication if24



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(aa) the person making the1

public independent expenditure2

or another person acting on that3

persons behalf solicited funding4

from the person or from the per-5


transferred for making any elec-7

tioneering communications,8

(bb) the person and the9

person to whom the amounts10

were transferred engaged in sub-11

stantial discussion (whether writ-12

ten or verbal) regarding the mak-13

ing of electioneering communica-14

tions,15

(cc) the person or the per-16


transferred knew or should have18

known of the covered organiza-19

tions intent to make election-20

eering communications, or21

(dd) the person or the per-22


transferred made an election-24

eering communication during the25



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election cycle involved or the pre-1

vious election cycle (as defined in2

section 301(25)).3

(II) The person shall not be4

considered to have transferred the5

amounts for the purpose of making an6

electioneering communication if the7

transfer was a commercial transaction8

occurring in the ordinary course of9

business between the person and the10


transferred.12

(C) E XCLUSION OF AMOUNTS DES-13

IGNATED FOR OTHER CAMPAIGN-RELATED AC-14

TIVITY.For purposes of subparagraph (A)(i),15

in determining the amount of a donation or16

payment made by a person which was provided17

for the purpose of being used for campaign-re-18

lated activity or in response to a solicitation for19

funds to be used for campaign-related activity,20

there shall be excluded any amount which was21

designated by the person to be used22

(i) for campaign-related activity de-23

scribed in clause (ii) of section24

325(d)(2)(A) (relating to electioneering25



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communications) with respect to a dif-1

ferent election, or with respect to a can-2

didate in a different election, than an elec-3

tion which is the subject of any of the elec-4

tioneering communications covered by the5

statement involved; or6

(ii) for any campaign-related activity7

described in clause (i) of section8

325(d)(2)(A) (relating to independent ex-9

penditures consisting of a public commu-10

nication).11

(D) COVERED ORGANIZATION REPORTING12

PERIOD DESCRIBED.In this paragraph, the13

covered organization reporting period is, with14

respect to a statement filed by a covered orga-15

nization under this subsection16

(i) in the case of the first statement17

filed by a covered organization under this18

subsection which includes information re-19

quired under this paragraph, the shorter20

of21

(I) the period which begins on22

the effective date of the Democracy is23

Strengthened by Casting Light on24

Spending in Elections Act and ends25



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on the disclosure date for the state-1

ment, or2

(II) the 12-month period ending3

on the disclosure date for the state-4

ment; and5

(ii) in the case of any subsequent6

statement filed by a covered organization7

under this subsection which includes infor-8

mation required under this paragraph, the9

period occurring since the most recent10

statement filed by the organization which11

includes such information.12

(E) COVERED ORGANIZATION DE-13

FINED.In this paragraph, the term covered14

organization means any of the following:15

(i) Any corporation which is subject16

to section 316(a).17

(ii) Any labor organization (as de-18

fined in section 316).19

(iii) Any organization described in20

paragraph (4), (5), or (6) of section 501(c)21

of the Internal Revenue Code of 1986 and22

exempt from tax under section 501(a) of23

such Code.24



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(iv) Any political organization under1

section 527 of the Internal Revenue Code2

of 1986, other than a political committee3

under this Act.4

(F) OTHER DEFINITIONS.In this para-5

graph, the terms campaign-related activity and6

unrestricted donor payment have the meaning7

given such terms in section 325..8

(2) CONFORMING AMENDMENT.Section9

304(2) of such Act (2 U.S.C. 434(f)(2)) is amended10

by striking If the disbursements each place it ap-11

pears in subparagraph (E) and (F) and inserting the12

following: Except in the case of a statement which13

is required to include additional information under14

paragraph (6), if the disbursements.15

SEC. 212. RULES REGARDING USE OF GENERAL TREASURY16

FUNDS BY COVERED ORGANIZATIONS FOR17

CAMPAIGN-RELATED ACTIVITY.18

Title III of the Federal Election Campaign Act of19

1971 (2 U.S.C. 431 et seq.) is amended by adding at the20

end the following new section:21



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SEC. 325. SPECIAL RULES FOR USE OF GENERAL TREAS-1

URY FUNDS BY COVERED ORGANIZATIONS2

FOR CAMPAIGN-RELATED ACTIVITY.3

(a) USE OF FUNDS FOR CAMPAIGN-RELATED AC-4

TIVITY.5

(1) IN GENERAL.Subject to any applicable6

restrictions and prohibitions under this Act, a cov-7

ered organization may make disbursements for cam-8

paign-related activity using9

(A) amounts paid or donated to the orga-10

nization which are designated by the person11

providing the amounts to be used for campaign-12

related activity;13

(B) unrestricted donor payments made to14

the organization; and15

(C) other funds of the organization, in-16

cluding amounts received pursuant to commer-17

cial activities in the regular course of a covered18

organizations business.19

(2) NO EFFECT ON USE OF SEPARATE SEG-20

REGATED FUND.Nothing in this section shall be21

construed to affect the authority of a covered organi-22

zation to make disbursements from a separate seg-23

regated fund established and administered by the or-24

ganization under section 316(b)(2)(C).25



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(b) RESTRICTIONS ON USE OF FUNDS FOR CAM-1

PAIGN-RELATEDACTIVITY.2

(1) CERTIFICATION AFTER RECEIVING NOTIFI-3

CATION BY DONOR TO NOT USE FUNDS FOR ACTIV-4

ITY.If any person who makes a donation, pay-5

ment, or transfer to a covered organization (other6

than the covered organization) notifies the organiza-7

tion in writing (at the time of making the donation,8

payment, or transfer) that the organization may not9

use the donation, payment, or transfer for cam-10

paign-related activity, not later than 7 days after the11

organization receives the donation, payment, or12

transfer the organization shall transmit to the per-13

son a written certification by the chief financial offi-14

cer of the covered organization (or, if the organiza-15

tion does not have a chief financial officer, the high-16

est ranking financial official of the organization),17

under penalty of perjury, that18

(A) the organization will not use the do-19

nation, payment, or transfer for campaign-re-20

lated activity; and21

(B) the organization will not include any22

information on the person in any report filed by23

the organization under section 304 with respect24

to independent expenditures or electioneering25



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communications, so that the person will not be1

required to appear in a significant funder state-2

ment or a Top 5 Funders list under section3

318(e).4

(2) E XCEPTION FOR PAYMENTS MADE PURSU-5

ANT TO COMMERCIAL ACTIVITIES.Paragraph (1)6

does not apply with respect to any payment or trans-7

fer made pursuant to commercial activities in the8

regular course of a covered organizations business.9

(c) CERTIFICATIONS REGARDING DISBURSEMENTS10

FOR CAMPAIGN-RELATEDACTIVITY.11

(1) CERTIFICATION BY CHIEF EXECUTIVE OF-12

FICER.If, at any time during a calendar quarter,13

a covered organization makes a disbursement of14

funds for campaign-related activity using funds de-15

scribed in subsection (a)(1), the chief executive offi-16

cer of the covered organization (or, if the organiza-17

tion does not have a chief executive officer, the high-18

est ranking official of the organization), under pen-19

alty of perjury, shall file a statement with the Com-20

mission which contains the following certifications:21

(A) None of the campaign-related activity22

for which the organization disbursed the funds23

during the quarter was made in cooperation,24

consultation, or concert with, or at the request25



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or suggestion of, any candidate or any author-1

ized committee or agent of such candidate, or2

political committee of a political party or agent3

of any political party.4

(B) The chief executive officer or highest5

ranking official of the covered organization (as6

the case may be) has reviewed and approved7

each statement and report filed by the organi-8

zation under section 304 with respect to any9

such disbursement made during the quarter.10

(C) Each statement and report filed by11

the organization under section 304 with respect12

to any such disbursement made during the13

quarter is complete and accurate and does not14

contain an untrue statement of a material fact.15

(D) All such disbursements made during16

the quarter are in compliance with this Act and17

all other applicable Federal laws.18

(E) No portion of the amounts used to19

make any such disbursements during the quar-20

ter is attributable to funds received by the orga-21

nization that were restricted by the person who22

provided the funds from being used for cam-23

paign-related activity pursuant to subsection24

(b).25



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(2) APPLICATION OF ELECTRONIC FILING1

RULES.Section 304(d)(1) shall apply with respect2

to a statement required under this subsection in the3

same manner as such section applies with respect to4

a statement under subsection (c) or (g) of section5

304.6

(3) DEADLINE.The chief executive officer or7

highest ranking official of a covered organization (as8

the case may be) shall file the statement required9

under this subsection with respect to a calendar10

quarter not later than 15 days after the end of the11

quarter.12

(d) DEFINITIONS.For purposes of this section, the13

following definitions apply:14

(1) COVERED ORGANIZATION.The term cov-15

ered organization means any of the following:16

(A) Any corporation which is subject to17

section 316(a).18

(B) Any labor organization (as defined in19

section 316).20

(C) Any organization described in para-21

graph (4), (5), or (6) of section 501(c) of the22

Internal Revenue Code of 1986 and exempt23

from tax under section 501(a) of such Code.24



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(D) Any political organization under sec-1

tion 527 of the Internal Revenue Code of 1986,2

other than a political committee under this Act.3

(2) CAMPAIGN-RELATED ACTIVITY.4

(A) IN GENERAL.The term campaign-5

related activity means6

(i) an independent expenditure con-7

sisting of a public communication (as de-8

fined in section 301(22)), a transfer of9

funds to another person for the purpose of10

making such an independent expenditure11

by that person or by any other person, or12

(in accordance with subparagraph (B)) a13

transfer of funds to another person which14

is deemed to have been made for the pur-15

pose of making such an independent ex-16

penditure by that person or by any other17

person; or18

(ii) an electioneering communication,19

a transfer of funds to another person for20

the purpose of making an electioneering21

communication by that person or by any22

other person, or (in accordance with sub-23

paragraph (B)) a transfer of funds to an-24

other person which is deemed to have been25



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made for the purpose of making an elec-1

tioneering communication by that person2

or by any other person.3

(B) RULE FOR DEEMING TRANSFERS4

MADE FOR PURPOSE OF CAMPAIGN-RELATED5

ACTIVITY.For purposes of subparagraph (A),6

in determining whether a transfer of funds by7

one person to another person shall be deemed8

to have been made for the purpose of making9

an independent expenditure consisting of a pub-10

lic communication or an electioneering commu-11

nication, the following rules apply:12

(i) The transfer shall be deemed to13

have been made for the purpose of making14

such an independent expenditure or an15

electioneering communication if16

(I) the person making the inde-17

pendent expenditure or electioneering18

communication or another person act-19

ing on that persons behalf solicited20

funding from the person or from the21


transferred for the purpose of making23

any such independent expenditures or24

electioneering communications,25



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(II) the person and the person1

to whom the amounts were trans-2

ferred engaged in substantial discus-3

sion (whether written or verbal) re-4

garding the making of such inde-5

pendent expenditures or electioneering6

communications,7

(III) the person or the person to8

whom the amounts were transferred9

knew or should have known of the10

covered organizations intent to dis-11

burse funds for campaign-related ac-12

tivity, or13

(IV) the person or the person to14

whom the amounts were transferred15

made such an independent expendi-16

ture or electioneering communication17

during the election cycle involved or18

the previous election cycle (as defined19

in section 301(25)).20

(ii) The transfer shall not be deemed21

to have been made for the purpose of mak-22

ing such an independent expenditure or an23

electioneering communication if the trans-24

fer was a commercial transaction occurring25



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in the ordinary course of business between1

the person and the person to whom the2

amounts were transferred.3

(3) UNRESTRICTED DONOR PAYMENT.The4

term unrestricted donor payment means a payment5

to a covered organization which consists of a dona-6

tion or payment from a person other than the cov-7

ered organization, except that such term does not in-8

clude9

(A) any payment made pursuant to com-10

mercial activities in the regular course of a cov-11

ered organizations business;12

(B) any donation or payment which is13

designated by the person making the donation14

or payment to be used for campaign-related ac-15

tivity or made in response to a solicitation for16

funds to be used for campaign-related activity;17

or18

(C) any donation or payment made by a19

person who notifies the organization in writing20

(at the time of making the payment) that the21

organization may not use the donation or pay-22

ment for campaign-related activity..23



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SEC. 213. OPTIONAL USE OF SEPARATE ACCOUNT BY COV-1

ERED ORGANIZATIONS FOR CAMPAIGN-RE-2

LATED ACTIVITY.3

Title III of the Federal Election Campaign Act of4

1971 (2 U.S.C. 431 et seq.), as amended by section 212,5

is further amended by adding at the end the following new6

section:7

SEC. 326. OPTIONAL USE OF SEPARATE ACCOUNT BY COV-8

ERED ORGANIZATIONS FOR CAMPAIGN-RE-9

LATED ACTIVITY.10

(a) OPTIONAL USE OF SEPARATEACCOUNT.11

(1) ESTABLISHMENT OF ACCOUNT.12

(A) IN GENERAL.At its option, a cov-13

ered organization may make disbursements for14

campaign-related activity using amounts from a15

bank account established and controlled by the16

organization to be known as the Campaign-Re-17

lated Activity Account (hereafter in this section18

referred to as the Account), which shall be19

maintained separately from all other accounts20

of the organization and which shall consist ex-21

clusively of the deposits described in paragraph22

(2).23

(B) M ANDATORY USE OF ACCOUNT24

AFTER ESTABLISHMENT.If a covered organi-25

zation establishes an Account under this sec-26



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tion, it may not make disbursements for cam-1

paign-related activity from any source other2

than amounts from the Account.3

(C) E XCLUSIVE USE OF ACCOUNT FOR4

CAMPAIGN-RELATED ACTIVITY.Amounts in5

the Account shall be used exclusively for dis-6

bursements by the covered organization for7

campaign-related activity. After such disburse-8

ments are made, information with respect to de-9

posits made to the Account shall be disclosed in10

accordance with section 304(g)(5) or section11

304(f)(6).12

(2) DEPOSITS DESCRIBED.The deposits de-13

scribed in this paragraph are deposits of the fol-14

lowing amounts:15

(A) Amounts donated or paid to the cov-16

ered organization by a person other than the17

organization for the purpose of being used for18

campaign-related activity, and for which the19

person providing the amounts has designated20

that the amounts be used for campaign-related21

activity with respect to a specific election or22

specific candidate.23

(B) Amounts donated or paid to the cov-24




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organization for the purpose of being used for1

campaign-related activity, and for which the2

person providing the amounts has not des-3

ignated that the amounts be used for campaign-4

related activity with respect to a specific elec-5

tion or specific candidate.6

(C) Amounts donated or paid to the cov-7


organization in response to a solicitation for9

funds to be used for campaign-related activity.10

(D) Amounts transferred to the Account11

by the covered organization from other accounts12

of the organization, including from the organi-13

zations general treasury funds.14

(3) NO TREATMENT AS POLITICAL COM-15

MITTEE.The establishment and administration of16

an Account in accordance with this subsection shall17

not by itself be treated as the establishment or ad-18

ministration of a political committee for any purpose19

of this Act.20

(b) REDUCTION IN AMOUNTS OTHERWISE AVAIL-21

ABLE FORACCOUNT IN RESPONSE TO DEMAND OF GEN-22

ERAL DONORS.23

(1) IN GENERAL.If a covered organization24

which has established an Account obtains any reve-25



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nues during a year which are attributable to a dona-1

tion or payment from a person other than the cov-2

ered organization, and if any person who makes3

such a donation or payment to the organization noti-4

fies the organization in writing (at the time of mak-5

ing the donation or payment) that the organization6

may not use the donation or payment for campaign-7

related activity, the organization shall reduce the8

amount of its revenues available for deposits to the9

Account which are described in subsection (a)(3)(D)10

during the year by the amount of the donation or11

payment.12

(2) EXCEPTION.Paragraph (1) does not13

apply with respect to any payment made pursuant to14

commercial activities in the regular course of a cov-15

ered organizations business.16

(c) COVERED ORGANIZATION DEFINED.In this17

section, the term covered organization means any of the18

following:19

(1) Any corporation which is subject to section20

316(a).21

(2) Any labor organization (as defined in sec-22

tion 316).23

(3) Any organization described in paragraph24

(4), (5), or (6) of section 501(c) of the Internal Rev-25



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enue Code of 1986 and exempt from tax under sec-1

tion 501(a) of such Code.2

(4) Any political organization under section3

527 of the Internal Revenue Code of 1986, other4

than a political committee under this Act.5

(d) CAMPAIGN-RELATED ACTIVITY DEFINED.In6

this section, the term covered organization has the mean-7

ing given suc

Disclose Act: House (Van Hollen version)

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Transcript of Disclose Act: House (Van Hollen version)