[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5175 Engrossed in House (EH)]
111th CONGRESS
2d Session
H. R. 5175
_______________________________________________________________________
AN ACT
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Democracy is
Strengthened by Casting Light on Spending in Elections Act'' or the
``DISCLOSE Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REGULATION OF CERTAIN POLITICAL SPENDING
Sec. 101. Prohibiting independent expenditures and electioneering
communications by government contractors.
Sec. 102. Application of ban on contributions and expenditures by
foreign nationals to foreign-controlled
domestic corporations.
Sec. 103. Treatment of payments for coordinated communications as
contributions.
Sec. 104. Treatment of political party communications made on behalf of
candidates.
Sec. 105. Restriction on internet communications treated as public
communications.
TITLE II--PROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGN-RELATED ACTIVITY
Subtitle A--Treatment of Independent Expenditures and Electioneering
Communications Made by All Persons
Sec. 201. Independent expenditures.
Sec. 202. Electioneering communications.
Sec. 203. Mandatory electronic filing by persons making independent
expenditures or electioneering
communications exceeding $10,000 at any
time.
Subtitle B--Expanded Requirements for Corporations and Other
Organizations
Sec. 211. Additional information required to be included in reports on
disbursements by covered organizations.
Sec. 212. Rules regarding use of general treasury funds by covered
organizations for campaign-related
activity.
Sec. 213. Optional use of separate account by covered organizations for
campaign-related activity.
Sec. 214. Modification of rules relating to disclaimer statements
required for certain communications.
Sec. 215. Indexing of certain amounts.
Subtitle C--Reporting Requirements for Registered Lobbyists
Sec. 221. Requiring registered lobbyists to report information on
independent expenditures and electioneering
communications.
TITLE III--DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION ON
CAMPAIGN-RELATED ACTIVITY
Sec. 301. Requiring disclosure by covered organizations of information
on campaign-related activity.
TITLE IV--OTHER PROVISIONS
Sec. 401. Judicial review.
Sec. 402. No Effect on Protections Against Threats, Harassments, and
Reprisals.
Sec. 403. Severability.
Sec. 404. Effective date.
TITLE I--REGULATION OF CERTAIN POLITICAL SPENDING
SEC. 101. PROHIBITING INDEPENDENT EXPENDITURES AND ELECTIONEERING
COMMUNICATIONS BY GOVERNMENT CONTRACTORS.
(a) Prohibition Applicable to Government Contractors.--
(1) Prohibition.--
(A) In general.--Section 317(a)(1) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441c(a)(1)) is
amended by striking ``purpose or use; or'' and
inserting the following: ``purpose or use, to make any
independent expenditure, or to disburse any funds for
an electioneering communication; or''.
(B) Conforming amendment.--The heading of section
317 of such Act (2 U.S.C. 441c) is amended by striking
``contributions'' and inserting ``contributions,
independent expenditures, and electioneering
communications''.
(2) Threshold for application of ban.--Section 317 of such
Act (2 U.S.C. 441c) is amended--
(A) by redesignating subsections (b) and (c) as
subsections (c) and (d); and
(B) by inserting after subsection (a) the following
new subsection:
``(b) To the extent that subsection (a)(1) prohibits a person who
enters into a contract described in such subsection from making any
independent expenditure or disbursing funds for an electioneering
communication, such subsection shall apply only if the value of the
contract is equal to or greater than $10,000,000.''.
(b) Application to Recipients of Assistance Under Troubled Asset
Program.--Section 317(a) of such Act (2 U.S.C. 441c(a)) is amended--
(1) by striking ``or'' at the end of paragraph (1);
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) who enters into negotiations for financial assistance
under title I of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5211 et seq.) (relating to the purchase of
troubled assets by the Secretary of the Treasury), during the
period--
``(A) beginning on the later of the commencement of
the negotiations or the date of the enactment of the
Democracy is Strengthened by Casting Light on Spending
in Elections Act; and
``(B) ending with the later of the termination of
such negotiations or the repayment of such financial
assistance;
directly or indirectly to make any contribution of money or
other things of value, or to promise expressly or impliedly to
make any such contribution to any political party, committee,
or candidate for public office or to any person for any
political purpose or use, to make any independent expenditure,
or to disburse any funds for an electioneering communication;
or''.
(c) Application to Persons Holding Leases for Drilling in Outer
Continental Shelf.--Section 317(a) of such Act (2 U.S.C. 441c(a)) is
amended--
(1) by striking ``or'' at the end of paragraph (1);
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) who enters into negotiations for a lease for
exploration for, and development and production of, oil and gas
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.), during the period--
``(A) beginning on the later of the commencement of
the negotiations or the date of the enactment of the
Democracy is Strengthened by Casting Light on Spending
in Elections Act; and
``(B) ending with the later of the termination of
such negotiations or the termination of such lease;
directly or indirectly to make any contribution of money or
other things of value, or to promise expressly or impliedly to
make any such contribution to any political party, committee,
or candidate for public office or to any person for any
political purpose or use, to make any independent expenditure,
or to disburse any funds for an electioneering communication;
or''.
(d) Technical Amendment.--Section 317 of such Act (2 U.S.C. 441c)
is amended by striking ``section 321'' each place it appears and
inserting ``section 316''.
SEC. 102. APPLICATION OF BAN ON CONTRIBUTIONS AND EXPENDITURES BY
FOREIGN NATIONALS TO FOREIGN-CONTROLLED DOMESTIC
CORPORATIONS.
(a) Application of Ban.--Section 319(b) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441e(b)) is amended--
(1) by striking ``or'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(3) any corporation which is not a foreign national
described in paragraph (1) and--
``(A) in which a foreign national described in
paragraph (1) or (2) directly or indirectly owns or
controls--
``(i) 5 percent or more of the voting
shares, if the foreign national is a foreign
country, a foreign government official, or a
corporation principally owned or controlled by
a foreign country or foreign government
official; or
``(ii) 20 percent or more of the voting
shares, if the foreign national is not
described in clause (i);
``(B) in which two or more foreign nationals
described in paragraph (1) or (2), each of whom owns or
controls at least 5 percent of the voting shares,
directly or indirectly own or control 50 percent or
more of the voting shares;
``(C) with respect to which the majority of the
members of the board of directors are foreign nationals
described in paragraph (1) or (2);
``(D) over which one or more foreign nationals
described in paragraph (1) or (2) has the power to
direct, dictate, or control the decision-making process
of the corporation with respect to its interests in the
United States; or
``(E) over which one or more foreign nationals
described in paragraph (1) or (2) has the power to
direct, dictate, or control the decision-making process
of the corporation with respect to activities in
connection with a Federal, State, or local election,
including--
``(i) the making of a contribution,
donation, expenditure, independent expenditure,
or disbursement for an electioneering
communication (within the meaning of section
304(f)(3)); or
``(ii) the administration of a political
committee established or maintained by the
corporation.''.
(b) Certification of Compliance.--Section 319 of such Act (2 U.S.C.
441e) is amended by adding at the end the following new subsection:
``(c) Certification of Compliance Required Prior to Carrying Out
Activity.--Prior to the making in connection with an election for
Federal office of any contribution, donation, expenditure, independent
expenditure, or disbursement for an electioneering communication by a
corporation during a year, the chief executive officer of the
corporation (or, if the corporation does not have a chief executive
officer, the highest ranking official of the corporation), shall file a
certification with the Commission, under penalty of perjury, that the
corporation is not prohibited from carrying out such activity under
subsection (b)(3), unless the chief executive officer has previously
filed such a certification during the year. Nothing in this subsection
shall be construed to apply to any contribution, donation, expenditure,
independent expenditure, or disbursement from a separate segregated
fund established and administered by a corporation under section
316(b)(2)(C).''.
(c) No Effect on Certain Activities of Domestic Corporations.--
Section 319 of such Act (2 U.S.C. 441e), as amended by subsection (b),
is further amended by adding at the end the following new subsection:
``(d) No Effect on Certain Activities of Domestic Corporations.--
``(1) Separate segregated funds.--Nothing in this section
shall be construed to prohibit any corporation which is not a
foreign national described in paragraph (1) of subsection (b)
from establishing, administering, and soliciting contributions
to a separate segregated fund under section 316(b)(2)(C), so
long as none of the amounts in the fund are provided by any
foreign national described in paragraph (1) or (2) of
subsection (b) and no foreign national described in paragraph
(1) or (2) of subsection (b) has the power to direct, dictate,
or control the establishment or administration of the fund.
``(2) State and local elections.--Nothing in this section
shall be construed to prohibit any corporation which is not a
foreign national described in paragraph (1) of subsection (b)
from making a contribution or donation in connection with a
State or local election to the extent permitted under State or
local law, so long as no foreign national described in
paragraph (1) or (2) of subsection (b) has the power to direct,
dictate, or control such contribution or donation.
``(3) Other permissible corporate contributions and
expenditures.--Nothing in this section shall be construed to
prohibit any corporation which is not a foreign national
described in paragraph (1) of subsection (b) from carrying out
any activity described in subparagraph (A) or (B) of section
316(b)(2), so long as none of the amounts used to carry out the
activity are provided by any foreign national described in
paragraph (1) or (2) of subsection (b) and no foreign national
described in paragraph (1) or (2) of subsection (b) has the
power to direct, dictate, or control such activity.''.
(d) No Effect on Other Laws.--Section 319 of such Act (2 U.S.C.
441e), as amended by subsections (b) and (c), is further amended by
adding at the end the following new subsection:
``(e) No Effect on Other Laws.--Nothing in this section shall be
construed to affect the determination of whether a corporation is
treated as a foreign national for purposes of any law other than this
Act.''.
SEC. 103. TREATMENT OF PAYMENTS FOR COORDINATED COMMUNICATIONS AS
CONTRIBUTIONS.
(a) In General.--Section 301(8)(A) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 431(8)(A)) is amended--
(1) by striking ``or'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) any payment made by any person (other than
a candidate, an authorized committee of a candidate, or
a political committee of a political party) for a
coordinated communication (as determined under section
324).''.
(b) Coordinated Communications Described.--Section 324 of such Act
(2 U.S.C. 441k) is amended to read as follows:
``SEC. 324. COORDINATED COMMUNICATIONS.
``(a) Coordinated Communications Defined.--
``(1) In general.--For purposes of this Act, the term
`coordinated communication' means--
``(A) a covered communication which, subject to
subsection (c), is made in cooperation, consultation,
or concert with, or at the request or suggestion of, a
candidate, an authorized committee of a candidate, or a
political committee of a political party; or
``(B) any communication that republishes,
disseminates, or distributes, in whole or in part, any
broadcast or any written, graphic, or other form of
campaign material prepared by a candidate, an
authorized committee of a candidate, or their agents.
``(2) Exception.--The term `coordinated communication' does
not include--
``(A) a communication appearing in a news story,
commentary, or editorial distributed through the
facilities of any broadcasting station, newspaper,
magazine, or other periodical publication, unless such
facilities are owned or controlled by any political
party, political committee, or candidate; or
``(B) a communication which constitutes a candidate
debate or forum conducted pursuant to the regulations
adopted by the Commission to carry out section
304(f)(3)(B)(iii), or which solely promotes such a
debate or forum and is made by or on behalf of the
person sponsoring the debate or forum.
``(b) Covered Communication Defined.--
``(1) In general.--Except as provided in paragraph (4), for
purposes of this subsection, the term `covered communication'
means, for purposes of the applicable election period described
in paragraph (2) and with respect to the coordinated
communication involved, a public communication (as defined in
section 301(22)) that refers to the candidate described in
subsection (a)(1)(A) or an opponent of such candidate and is
publicly distributed or publicly disseminated during such
period.
``(2) Applicable election period.--For purposes of
paragraph (1), the `applicable election period' with respect to
a communication means--
``(A) in the case of a communication which refers
to a candidate for the office of President or Vice
President, the period--
``(i) beginning with the date that is 120
days before the date of the first primary
election, preference election, or nominating
convention for nomination for the office of
President which is held in any State; and
``(ii) ending with the date of the general
election for such office; or
``(B) in the case of a communication which refers
to a candidate for any other Federal office, the
period--
``(i) beginning with the date that is 90
days before the earliest of the primary
election, preference election, or nominating
convention with respect to the nomination for
the office that the candidate is seeking; and
``(ii) ending with the date of the general
election for such office.
``(3) Special rule for public distribution of
communications involving congressional candidates.--For
purposes of paragraph (1), in the case of a communication
involving a candidate for an office other than President or
Vice President, the communication shall be considered to be
publicly distributed or publicly disseminated only if the
dissemination or distribution occurs in the jurisdiction of the
office that the candidate is seeking.
``(c) No Finding of Coordination Based Solely on Sharing of
Information Regarding Legislative or Policy Position.--For purposes of
subsection (a)(1), a covered communication shall not be considered to
be made in cooperation, consultation, or concert with, or at the
request or suggestion of, a candidate, an authorized committee of a
candidate, or a political committee of a political party solely on the
grounds that a person or an agent thereof engaged in discussions with
to the candidate or committee regarding that person's position on a
legislative or policy matter (including urging the candidate or party
to adopt that person's position), so long as there is no discussion
between the person and the candidate or committee regarding the
candidate's campaign plans, projects, activities, or needs.
``(d) Preservation of Certain Safe Harbors and Firewalls.--Nothing
in this section may be construed to affect 11 CFR 109.21(g) or (h), as
in effect on the date of the enactment of the Democracy is Strengthened
by Casting Light on Spending in Elections Act.
``(e) Treatment of Coordination With Political Parties for
Communications Referring to Candidates.--For purposes of this section,
if a communication which refers to any clearly identified candidate or
candidates of a political party or any opponent of such a candidate or
candidates is determined to have been made in cooperation,
consultation, or concert with or at the request or suggestion of a
political committee of the political party but not in cooperation,
consultation, or concert with or at the request or suggestion of such
clearly identified candidate or candidates, the communication shall be
treated as having been made in cooperation, consultation, or concert
with or at the request or suggestion of the political committee of the
political party but not with or at the request or suggestion of such
clearly identified candidate or candidates.''.
(c) Effective Date.--
(1) In general.--This section and the amendments made by
this section shall apply with respect to payments made on or
after the expiration of the 30-day period which begins on the
date of the enactment of this Act, without regard to whether or
not the Federal Election Commission has promulgated regulations
to carry out such amendments.
(2) Transition rule for actions taken prior to enactment.--
No person shall be considered to have made a payment for a
coordinated communication under section 324 of the Federal
Election Campaign Act of 1971 (as amended by subsection (b)) by
reason of any action taken by the person prior to the date of
the enactment of this Act. Nothing in the previous sentence
shall be construed to affect any determination under any other
provision of such Act which is in effect on the date of the
enactment of this Act regarding whether a communication is made
in cooperation, consultation, or concert with, or at the
request or suggestion of, a candidate, an authorized committee
of a candidate, or a political committee of a political party.
SEC. 104. TREATMENT OF POLITICAL PARTY COMMUNICATIONS MADE ON BEHALF OF
CANDIDATES.
(a) Treatment of Payment for Public Communication as Contribution
if Made Under Control or Direction of Candidate.--Section 301(8)(A) of
the Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)), as
amended by section 103(a), is amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iv) any payment by a political committee of a
political party for the direct costs of a public
communication (as defined in paragraph (22)) made on
behalf of a candidate for Federal office who is
affiliated with such party, but only if the
communication is controlled by, or made at the
direction of, the candidate or an authorized committee
of the candidate.''.
(b) Requiring Control or Direction by Candidate for Treatment as
Coordinated Party Expenditure.--
(1) In general.--Paragraph (4) of section 315(d) of such
Act (2 U.S.C. 441a(d)) is amended to read as follows:
``(4) Special Rule for Direct Costs of Communications.--The direct
costs incurred by a political committee of a political party for a
communication made in connection with the campaign of a candidate for
Federal office shall not be subject to the limitations contained in
paragraphs (2) and (3) unless the communication is controlled by, or
made at the direction of, the candidate or an authorized committee of
the candidate.''.
(2) Conforming amendment.--Paragraph (1) of section 315(d)
of such Act (2 U.S.C. 441a(d)) is amended by striking
``paragraphs (2), (3), and (4)'' and inserting ``paragraphs (2)
and (3)''.
(c) Effective Date.--This section and the amendments made by this
section shall apply with respect to payments made on or after the
expiration of the 30-day period which begins on the date of the
enactment of this Act, without regard to whether or not the Federal
Election Commission has promulgated regulations to carry out such
amendments.
SEC. 105. RESTRICTION ON INTERNET COMMUNICATIONS TREATED AS PUBLIC
COMMUNICATIONS.
(a) In General.--Section 301(22) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 431(22)) is amended by adding at the end the
following new sentence: ``A communication which is disseminated through
the Internet shall not be treated as a form of general public political
advertising under this paragraph unless the communication was placed
for a fee on another person's Web site.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act.
TITLE II--PROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGN-RELATED ACTIVITY
Subtitle A--Treatment of Independent Expenditures and Electioneering
Communications Made by All Persons
SEC. 201. INDEPENDENT EXPENDITURES.
(a) Revision of Definition.--Subparagraph (A) of section 301(17) of
the Federal Election Campaign Act of 1971 (2 U.S.C. 431(17)) is amended
to read as follows:
``(A) that, when taken as a whole, expressly
advocates the election or defeat of a clearly
identified candidate, or is the functional equivalent
of express advocacy because it can be interpreted by a
reasonable person only as advocating the election or
defeat of a candidate, taking into account whether the
communication involved mentions a candidacy, a
political party, or a challenger to a candidate, or
takes a position on a candidate's character,
qualifications, or fitness for office; and''.
(b) Uniform 24-Hour Reporting For Persons Making Independent
Expenditures Exceeding $10,000 at Any Time.--Section 304(g) of such Act
(2 U.S.C. 434(g)) is amended by striking paragraphs (1) and (2) and
inserting the following:
``(1) Independent expenditures exceeding threshold
amount.--
``(A) Initial report.--A person (including a
political committee) that makes or contracts to make
independent expenditures in an aggregate amount equal
to or greater than the threshold amount described in
subparagraph (C) shall electronically file a report
describing the expenditures within 24 hours.
``(B) Additional reports.--After a person files a
report under subparagraph (A), the person shall
electronically file an additional report within 24
hours after each time the person makes or contracts to
make independent expenditures in an aggregate amount
equal to or greater than the threshold amount with
respect to the same election as that to which the
initial report relates.
``(C) Threshold amount described.--In this
paragraph, the `threshold amount' means--
``(i) during the period up to and including
the 20th day before the date of an election,
$10,000; or
``(ii) during the period after the 20th
day, but more than 24 hours, before the date of
an election, $1,000.
``(2) Public availability.--Notwithstanding any other
provision of this section, the Commission shall ensure that the
information required to be disclosed under this subsection is
publicly available through the Commission website not later
than 24 hours after receipt in a manner that is downloadable in
bulk and machine readable.''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply with respect to contributions and expenditures made on or
after the expiration of the 30-day period which begins on the
date of the enactment of this Act, without regard to whether or
not the Federal Election Commission has promulgated regulations
to carry out such amendments.
(2) Reporting requirements.--The amendment made by
subsection (b) shall apply with respect to reports required to
be filed after the date of the enactment of this Act.
SEC. 202. ELECTIONEERING COMMUNICATIONS.
(a) Expansion of Period Covering General Election.--Section
304(f)(3)(A)(i)(II)(aa) of the Federal Election Campaign Act of 1971 (2
U.S.C. 434(f)(3)(A)(i)(II)(aa)) is amended by striking ``60 days'' and
inserting ``120 days''.
(b) Effective Date; Transition for Communications Made Prior to
Enactment.--The amendment made by subsection (a) shall apply with
respect to communications made on or after the date of the enactment of
this Act, without regard to whether or not the Federal Election
Commission has promulgated regulations to carry out such amendments,
except that no communication which is made prior to the date of the
enactment of this Act shall be treated as an electioneering
communication under section 304(f)(3)(A)(i)(II) of the Federal Election
Campaign Act of 1971 (as amended by subsection (a)) unless the
communication would be treated as an electioneering communication under
such section if the amendment made by subsection (a) did not apply.
SEC. 203. MANDATORY ELECTRONIC FILING BY PERSONS MAKING INDEPENDENT
EXPENDITURES OR ELECTIONEERING COMMUNICATIONS EXCEEDING
$10,000 AT ANY TIME.
Section 304(d)(1) of the Federal Election Campaign Act of 1971 (2
U.S.C. 434(d)(1)) is amended--
(1) by striking ``or (g)''; and
(2) by adding at the end the following: ``Notwithstanding
any other provision of this section, any person who is required
to file a statement under subsection (f) or subsection (g)
shall file the statement in electronic form accessible by
computers, in a manner which ensures that the information
provided is searchable, sortable, and downloadable.''.
Subtitle B--Expanded Requirements for Corporations and Other
Organizations
SEC. 211. ADDITIONAL INFORMATION REQUIRED TO BE INCLUDED IN REPORTS ON
DISBURSEMENTS BY COVERED ORGANIZATIONS.
(a) Independent Expenditure Reports.--Section 304(g) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 434(g)) is amended by adding at
the end the following new paragraph:
``(5) Disclosure of additional information by covered
organizations making payments for public independent
expenditures.--
``(A) Additional information.--If a covered
organization makes or contracts to make public
independent expenditures in an aggregate amount equal
to or exceeding $10,000 in a calendar year, the report
filed by the organization under this subsection shall
include, in addition to the information required under
paragraph (3), the following information (subject to
subparagraph (B)(iv)):
``(i) If any person made a donation or
payment to the covered organization during the
covered organization reporting period which was
provided for the purpose of being used for
campaign-related activity or in response to a
solicitation for funds to be used for campaign-
related activity--
``(I) subject to subparagraph (C),
the identification of each person who
made such donations or payments in an
aggregate amount equal to or exceeding
$600 during such period, presented in
the order of the aggregate amount of
donations or payments made by such
persons during such period (with the
identification of the person making the
largest donation or payment appearing
first); and
``(II) if any person identified
under subclause (I) designated that the
donation or payment be used for
campaign-related activity with respect
to a specific election or in support of
a specific candidate, the name of the
election or candidate involved, and if
any such person designated that the
donation or payment be used for a
specific public independent
expenditure, a description of the
expenditure.
``(ii) The identification of each person
who made unrestricted donor payments to the
organization during the covered organization
reporting period--
``(I) in an aggregate amount equal
to or exceeding $600 during such
period, if any of the disbursements
made by the organization for any of the
public independent expenditures which
are covered by the report were not made
from the organization's Campaign-
Related Activity Account under section
326; or
``(II) in an aggregate amount equal
to or exceeding $6,000 during such
period, if the disbursements made by
the organization for all of the public
independent expenditures which are
covered by the report were made
exclusively from the organization's
Campaign-Related Activity Account under
section 326 (but only if the
organization has made deposits
described in subparagraph (D) of
section 326(a)(2) into that Account
during such period in an aggregate
amount equal to or greater than
$10,000),
presented in the order of the aggregate amount
of payments made by such persons during such
period (with the identification of the person
making the largest payment appearing first).
``(B) Treatment of transfers made to other
persons.--
``(i) In general.--Subject to clause (iii),
for purposes of the requirement to file reports
under this subsection (including the
requirement under subparagraph (A) to include
additional information in such reports), a
covered organization which transfers amounts to
another person (other than the covered
organization itself) for the purpose of making
a public independent expenditure by that person
or by any other person, or (in accordance with
clause (ii)) which is deemed to have
transferred amounts to another person (other
than the covered organization itself) for the
purpose of making a public independent
expenditure by that person or by any other
person, shall be considered to have made a
public independent expenditure.
``(ii) Rules for deeming transfers made for
purpose of making expenditures.--For purposes
of clause (i), in determining whether a covered
organization which transfers amounts to another
person shall be deemed to have transferred the
amounts for the purpose of making a public
independent expenditure, the following rules
apply:
``(I) The covered organization
shall be deemed to have transferred the
amounts for the purpose of making a
public independent expenditure if--
``(aa) the covered
organization designates,
requests, or suggests that the
amounts be used for public
independent expenditures and
the person to whom the amounts
were transferred agrees to do
so;
``(bb) the person making
the public independent
expenditure or another person
acting on that person's behalf
expressly solicited the covered
organization for a donation or
payment for making or paying
for any public independent
expenditures;
``(cc) the covered
organization and the person to
whom the amounts were
transferred engaged in written
or oral discussion regarding
the person either making, or
paying for, any public
independent expenditure, or
donating or transferring the
amounts to another person for
that purpose;
``(dd) the covered
organization which transferred
the funds knew or had reason to
know that the person to whom
the amounts were transferred
intended to make public
independent expenditures; or
``(ee) the covered
organization which transferred
the funds or the person to whom
the amounts were transferred
made one or more public
independent expenditures in an
aggregate amount of $50,000 or
more during the 2-year period
which ends on the date on which
the amounts were transferred.
``(II) The covered organization
shall not be deemed to have transferred
the amounts for the purpose of making a
public independent expenditure if--
``(aa) the transfer was a
commercial transaction
occurring in the ordinary
course of business between the
covered organization and the
person to whom the amounts were
transferred, unless there is
affirmative evidence that the
amounts were transferred for
the purpose of making a public
independent expenditure; or
``(bb) the covered
organization and the person to
whom the amounts were
transferred mutually agreed (as
provided in section 325(b)(1))
that the person will not use
the amounts for campaign-
related activity.
``(iii) Special rule regarding transfers
among affiliates.--
``(I) Special rule.--In the case of
an amount transferred by one covered
organization to another covered
organization which is treated as a
transfer between affiliates under
subclause (II), clause (i) and (ii)
shall apply to the covered organization
which transfers the amount only if the
aggregate amount transferred during the
year by such covered organization to
that same covered organization is equal
to or greater than $50,000.
``(II) Description of transfers
between affiliates.--A transfer of
amounts from one covered organization
to another covered organization shall
be treated as a transfer between
affiliates if--
``(aa) one of the
organizations is an affiliate
of the other organization; or
``(bb) each of the
organizations is an affiliate
of the same organization,
except that the transfer shall not be
treated as a transfer between
affiliates if one of the organizations
is established for the purpose of
disbursing funds for campaign-related
activity.
``(III) Determination of affiliate
status.--For purposes of subclause
(II), a covered organization is an
affiliate of another covered
organization if--
``(aa) the governing
instrument of the organization
requires it to be bound by
decisions of the other
organization;
``(bb) the governing board
of the organization includes
persons who are specifically
designated representatives of
the other organization or are
members of the governing board,
officers, or paid executive
staff members of the other
organization, or whose service
on the governing board is
contingent upon the approval of
the other organization; or
``(cc) the organization is
chartered by the other
organization.
``(IV) Coverage of transfers to
affiliated section 501(c)(3)
organizations.--This clause shall apply
with respect to an amount transferred
by a covered organization to an
organization described in paragraph (3)
of section 501(c) of the Internal
Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code
in the same manner as this clause
applies to an amount transferred by a
covered organization to another covered
organization.
``(iv) Special threshold for disclosure of
donors.--Notwithstanding clause (i) or (ii) of
subparagraph (A), if a covered organization is
required to include the identification of a
person described in such clause in a report
filed under this subsection because the covered
organization is deemed (in accordance with
clause (ii)) to have transferred amounts for
the purpose of making a public independent
expenditure, the organization shall include the
identification of the person only if the person
made donations or payments (in the case of a
person described in clause (i)(I) of
subparagraph (A)) or unrestricted donor
payments (in the case of a person described in
clause (ii) of subparagraph (A)) to the covered
organization during the covered organization
reporting period involved in an aggregate
amount equal to or exceeding $10,000.
``(v) Waiver of requirement to file
report.--Notwithstanding clause (i), a covered
organization which is considered to have made a
public independent expenditure under such
clause shall not be required to file a report
under this subsection if--
``(I) the organization would be
required to file the report solely
because the organization is deemed (in
accordance with clause (ii)) to have
transferred amounts for the purpose of
making a public independent
expenditure;
``(II) no person made donations or
payments (in the case of a person
described in clause (i)(I) of
subparagraph (A)) or unrestricted donor
payments (in the case of a person
described in clause (ii) of
subparagraph (A)) to the covered
organization during the covered
organization reporting period involved
in an aggregate amount equal to or
exceeding $10,000; and
``(III) all of the persons who made
donations or payments (in the case of a
person described in clause (i)(I) of
subparagraph (A)) or unrestricted donor
payments (in the case of a person
described in clause (ii) of
subparagraph (A)) to the covered
organization during the covered
organization reporting period in any
amount were individuals.
``(C) Exclusion of amounts designated for other
campaign-related activity.--For purposes of
subparagraph (A)(i), in determining the amount of a
donation or payment made by a person which was provided
for the purpose of being used for campaign-related
activity or in response to a solicitation for funds to
be used for campaign-related activity, there shall be
excluded any amount which was designated by the person
to be used--
``(i) for campaign-related activity
described in clause (i) of section 325(d)(2)(A)
(relating to independent expenditures) with
respect to a different election, or with
respect to a candidate in a different election,
than an election which is the subject of any of
the public independent expenditures covered by
the report involved; or
``(ii) for any campaign-related activity
described in clause (ii) of section
325(d)(2)(A) (relating to electioneering
communications).
``(D) Exclusion of amounts paid from separate
segregated fund.--In determining the amount of public
independent expenditures made by a covered organization
for purposes of this paragraph, there shall be excluded
any amounts paid from a separate segregated fund
established and administered by the organization under
section 316(b)(2)(C).
``(E) Determination of amount of certain payments
among affiliates.--For purposes of determining the
amount of any donation, payment, or transfer under this
subsection which is made by a covered organization to
another covered organization which is an affiliate of
the covered organization or each of which is an
affiliate of the same organization (as determined in
accordance with subparagraph (B)(iii)), to the extent
that the donation, payment, or transfer consists of
funds attributable to dues, fees, or assessments which
are paid by individuals on a regular, periodic basis in
accordance with a per-individual calculation which is
made on a regular basis, the donation, payment, or
transfer shall be attributed to the individuals paying
the dues, fees, or assessments and shall not be
attributed to the covered organization.
``(F) Covered organization reporting period
described.--In this paragraph, the `covered
organization reporting period' is, with respect to a
report filed by a covered organization under this
subsection--
``(i) in the case of the first report filed
by a covered organization under this subsection
which includes information required under this
paragraph, the shorter of--
``(I) the period which begins on
the effective date of the Democracy is
Strengthened by Casting Light on
Spending in Elections Act and ends on
the last day covered by the report, or
``(II) the 12-month period ending
on the last day covered by the report;
and
``(ii) in the case of any subsequent report
filed by a covered organization under this
subsection which includes information required
under this paragraph, the period occurring
since the most recent report filed by the
organization which includes such information.
``(G) Covered organization defined.--In this
paragraph, the term `covered organization' means any of
the following:
``(i) Any corporation which is subject to
section 316(a), other than a corporation which
is an organization described in paragraph (3)
of section 501(c) of the Internal Revenue Code
of 1986 and exempt from tax under section
501(a) of such Code.
``(ii) Any labor organization (as defined
in section 316).
``(iii) Any organization described in
paragraph (4), (5), or (6) of section 501(c) of
the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code,
other than an exempt section 501(c)(4)
organization (as defined in section 301(27)).
``(iv) Any political organization under
section 527 of the Internal Revenue Code of
1986, other than a political committee under
this Act.
``(H) Other definitions.--In this paragraph--
``(i) the terms `campaign-related activity'
and `unrestricted donor payment' have the
meaning given such terms in section 325; and
``(ii) the term `public independent
expenditure' means an independent expenditure
for a public communication (as defined in
section 301(22)).''.
(b) Electioneering Communication Reports.--
(1) In general.--Section 304(f) of such Act (2 U.S.C.
434(f)) is amended--
(A) by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8); and
(B) by inserting after paragraph (5) the end the
following new paragraph:
``(6) Disclosure of additional information by covered
organizations.--
``(A) Additional information.--If a covered
organization files a statement under this subsection,
the statement shall include, in addition to the
information required under paragraph (2), the following
information (subject to subparagraph (B)(iv)):
``(i) If any person made a donation or
payment to the covered organization during the
covered organization reporting period which was
provided for the purpose of being used for
campaign-related activity or in response to a
solicitation for funds to be used for campaign-
related activity--
``(I) subject to subparagraph (C),
the identification of each person who
made such donations or payments in an
aggregate amount equal to or exceeding
$1,000 during such period, presented in
the order of the aggregate amount of
donations or payments made by such
persons during such period (with the
identification of the person making the
largest donation or payment appearing
first); and
``(II) if any person identified
under subclause (I) designated that the
donation or payment be used for
campaign-related activity with respect
to a specific election or in support of
a specific candidate, the name of the
election or candidate involved, and if
any such person designated that the
donation or payment be used for a
specific electioneering communication,
a description of the communication.
``(ii) The identification of each person
who made unrestricted donor payments to the
organization during the covered organization
reporting period--
``(I) in an aggregate amount equal
to or exceeding $1,000 during such
period, if the organization made any of
the disbursements which are described
in subclause (II) from a source other
than the organization's Campaign-
Related Activity Account under section
326; or
``(II) in an aggregate amount equal
to or exceeding $10,000 during such
period, if the organization made from
its Campaign-Related Activity Account
under section 326 all of its
disbursements for electioneering
communications during such period which
are, on the basis of a reasonable
belief by the organization, subject to
treatment as disbursements for an
exempt function for purposes of section
527(f) of the Internal Revenue Code of
1986 (but only if the organization has
made deposits described in subparagraph
(D) of section 326(a)(2) into that
Account during such period in an
aggregate amount equal to or greater
than $10,000),
presented in the order of the aggregate amount
of payments made by such persons during such
period (with the identification of the person
making the largest payment appearing first).
``(B) Treatment of transfers made to other
persons.--
``(i) In general.--Subject to clause (iii),
for purposes of the requirement to file
statements under this subsection (including the
requirement under subparagraph (A) to include
additional information in such statements), a
covered organization which transfers amounts to
another person (other than the covered
organization itself) for the purpose of making
an electioneering communication by that person
or by any other person, or (in accordance with
clause (ii)) which is deemed to have
transferred amounts to another person (other
than the covered organization itself) for the
purpose of making an electioneering
communication by that person or by any other
person, shall be considered to have made a
disbursement for an electioneering
communication.
``(ii) Rules for deeming transfers made for
purpose of making communications.--For purposes
of clause (i), in determining whether a covered
organization which transfers amounts to another
person shall be deemed to have transferred the
amounts for the purpose of making an
electioneering communication, the following
rules apply:
``(I) The covered organization
shall be deemed to have transferred the
amounts for the purpose of making an
electioneering communication if--
``(aa) the covered
organization designates,
requests, or suggests that the
amounts be used for
electioneering communications
and the person to whom the
amounts were transferred agrees
to do so;
``(bb) the person making
the electioneering
communication or another person
acting on that person's behalf
expressly solicited the covered
organization for a donation or
payment for making or paying
for any electioneering
communications;
``(cc) the covered
organization and the person to
whom the amounts were
transferred engaged in written
or oral discussion regarding
the person either making, or
paying for, any electioneering
communication, or donating or
transferring the amounts to
another person for that
purpose;
``(dd) the covered
organization which transferred
the funds knew or had reason to
know that the person to whom
the amounts were transferred
intended to make electioneering
communications; or
``(ee) the covered
organization which transferred
the funds or the person to whom
the amounts were transferred
made one or more electioneering
communications in an aggregate
amount of $50,000 or more
during the 2-year period which
ends on the date on which the
amounts were transferred.
``(II) The covered organization
shall not be deemed to have transferred
the amounts for the purpose of making
an electioneering communication if--
``(aa) the transfer was a
commercial transaction
occurring in the ordinary
course of business between the
covered organization and the
person to whom the amounts were
transferred, unless there is
affirmative evidence that the
amounts were transferred for
the purpose of making an
electioneering communication;
or
``(bb) the covered
organization and the person to
whom the amounts were
transferred mutually agreed (as
provided in section 325(b)(1))
that the person will not use
the amounts for campaign-
related activity.
``(iii) Special rule regarding transfers
among affiliates.--
``(I) Special rule.--In the case of
an amount transferred by one covered
organization to another covered
organization which is treated as a
transfer between affiliates under
subclause (II), clause (i) and (ii)
shall apply to the covered organization
which transfers the amount only if the
aggregate amount transferred during the
year by such covered organization to
that same covered organization is equal
to or greater than $50,000.
``(II) Description of transfers
between affiliates.--A transfer of
amounts from one covered organization
to another covered organization shall
be treated as a transfer between
affiliates if--
``(aa) one of the
organizations is an affiliate
of the other organization; or
``(bb) each of the
organizations is an affiliate
of the same organization,
except that the transfer shall not be
treated as a transfer between
affiliates if one of the organizations
is established for the purpose of
disbursing funds for campaign-related
activity.
``(III) Determination of affiliate
status.--For purposes of subclause
(II), a covered organization is an
affiliate of another covered
organization if--
``(aa) the governing
instrument of the organization
requires it to be bound by
decisions of the other
organization;
``(bb) the governing board
of the organization includes
persons who are specifically
designated representatives of
the other organization or are
members of the governing board,
officers, or paid executive
staff members of the other
organization, or whose service
on the governing board is
contingent upon the approval of
the other organization; or
``(cc) the organization is
chartered by the other
organization.
``(IV) Coverage of transfers to
affiliated section 501(c)(3)
organizations.--This clause shall apply
with respect to an amount transferred
by a covered organization to an
organization described in paragraph (3)
of section 501(c) of the Internal
Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code
in the same manner as this clause
applies to an amount transferred by a
covered organization to another covered
organization.
``(iv) Special threshold for disclosure of
donors.--Notwithstanding clause (i) or (ii) of
subparagraph (A), if a covered organization is
required to include the identification of a
person described in such clause in a statement
filed under this subsection because the covered
organization is deemed (in accordance with
clause (ii)) to have transferred amounts for
the purpose of making an electioneering
communication, the organization shall include
the identification of the person only if the
person made donations or payments (in the case
of a person described in clause (i)(I) of
subparagraph (A)) or unrestricted donor
payments (in the case of a person described in
clause (ii) of subparagraph (A)) to the covered
organization during the covered organization
reporting period involved in an aggregate
amount equal to or exceeding $10,000.
``(v) Waiver of requirement to file
statement.--Notwithstanding clause (i), a
covered organization which is considered to
have made a disbursement for an electioneering
communication under such clause shall not be
required to file a report under this subsection
if--
``(I) the organization would be
required to file the report solely
because the organization is deemed (in
accordance with clause (ii)) to have
transferred amounts for the purpose of
making an electioneering communication;
``(II) no person made donations or
payments (in the case of a person
described in clause (i)(I) of
subparagraph (A)) or unrestricted donor
payments (in the case of a person
described in clause (ii) of
subparagraph (A)) to the covered
organization during the covered
organization reporting period involved
in an aggregate amount equal to or
exceeding $10,000; and
``(III) all of the persons who made
donations or payments (in the case of a
person described in clause (i)(I) of
subparagraph (A)) or unrestricted donor
payments (in the case of a person
described in clause (ii) of
subparagraph (A)) to the covered
organization during the covered
organization reporting period in any
amount were individuals.
``(C) Exclusion of amounts designated for other
campaign-related activity.--For purposes of
subparagraph (A)(i), in determining the amount of a
donation or payment made by a person which was provided
for the purpose of being used for campaign-related
activity or in response to a solicitation for funds to
be used for campaign-related activity, there shall be
excluded any amount which was designated by the person
to be used--
``(i) for campaign-related activity
described in clause (i) of section 325(d)(2)(A)
(relating to independent expenditures) with
respect to a different election, or with
respect to a candidate in a different election,
than an election which is the subject of any of
the public independent expenditures covered by
the report involved; or
``(ii) for any campaign-related activity
described in clause (ii) of section
325(d)(2)(A) (relating to electioneering
communications).
``(D) Determination of amount of certain payments
among affiliates.--For purposes of determining the
amount of any donation, payment, or transfer under this
subsection which is made by a covered organization to
another covered organization which is an affiliate of
the covered organization or each of which is an
affiliate of the same organization (as determined in
accordance with subparagraph (B)(iii)), to the extent
that the donation, payment, or transfer consists of
funds attributable to dues, fees, or assessments which
are paid by individuals on a regular, periodic basis in
accordance with a per-individual calculation which is
made on a regular basis, the donation, payment, or
transfer shall be attributed to the individuals paying
the dues, fees, or assessments and shall not be
attributed to the covered organization.
``(E) Covered organization reporting period
described.--In this paragraph, the `covered
organization reporting period' is, with respect to a
statement filed by a covered organization under this
subsection--
``(i) in the case of the first statement
filed by a covered organization under this
subsection which includes information required
under this paragraph, the shorter of--
``(I) the period which begins on
the effective date of the Democracy is
Strengthened by Casting Light on
Spending in Elections Act and ends on
the disclosure date for the statement,
or
``(II) the 12-month period ending
on the disclosure date for the
statement; and
``(ii) in the case of any subsequent
statement filed by a covered organization under
this subsection which includes information
required under this paragraph, the period
occurring since the most recent statement filed
by the organization which includes such
information.
``(F) Covered organization defined.--In this
paragraph, the term `covered organization' means any of
the following:
``(i) Any corporation which is subject to
section 316(a), other than a corporation which
is an organization described in paragraph (3)
of section 501(c) of the Internal Revenue Code
of 1986 and exempt from tax under section
501(a) of such Code.
``(ii) Any labor organization (as defined
in section 316).
``(iii) Any organization described in
paragraph (4), (5), or (6) of section 501(c) of
the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code,
other than an exempt section 501(c)(4)
organization (as defined in section 301(27)).
``(iv) Any political organization under
section 527 of the Internal Revenue Code of
1986, other than a political committee under
this Act.
``(G) Other definitions.--In this paragraph, the
terms `campaign-related activity' and `unrestricted
donor payment' have the meaning given such terms in
section 325.''.
(2) Conforming amendment.--Section 304(f)(2) of such Act (2
U.S.C. 434(f)(2)) is amended by striking ``If the
disbursements'' each place it appears in subparagraph (E) and
(F) and inserting the following: ``Except in the case of a
statement which is required to include additional information
under paragraph (6), if the disbursements''.
(c) Exemption of Certain Section 501(c)(4) Organizations.--Section
301 of such Act (2 U.S.C. 431) is amended by adding at the end the
following:
``(27) Exempt section 501(c)(4) organization.--The term
`exempt section 501(c)(4) organization' means, with respect to
disbursements made by an organization during a calendar year,
an organization for which the chief executive officer of the
organization certifies to the Commission (prior to the first
disbursement made by the organization during the year) that
each of the following applies:
``(A) The organization is described in paragraph
(4) of section 501(c) of the Internal Revenue Code of
1986 and exempt from tax under section 501(a) of such
Code, and was so described and so exempt during each of
the 10 previous calendar years.
``(B) The organization has at least 500,000
individuals who paid membership dues during the
previous calendar year (determined as of the last day
of that year).
``(C) The dues-paying membership of the
organization includes at least one individual from each
State. For purposes of this subparagraph, the term
`State' means each of the several States, the District
of Columbia, and the Commonwealth of Puerto Rico.
``(D) During the previous calendar year, the
portion of funds provided to the organization by
corporations (as described in section 316) or labor
organizations (as defined in section 316), other than
funds provided pursuant to commercial transactions
occurring in the ordinary course of business, did not
exceed 15 percent of the total amount of all funds
provided to the organization from all sources.
``(E) The organization does not use any of the
funds provided to the organization by corporations (as
described in section 316) or labor organizations (as
defined in section 316) for campaign-related activity
(as defined in section 325).''.
SEC. 212. RULES REGARDING USE OF GENERAL TREASURY FUNDS BY COVERED
ORGANIZATIONS FOR CAMPAIGN-RELATED ACTIVITY.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) is amended by adding at the end the following new section:
``SEC. 325. SPECIAL RULES FOR USE OF GENERAL TREASURY FUNDS BY COVERED
ORGANIZATIONS FOR CAMPAIGN-RELATED ACTIVITY.
``(a) Use of Funds for Campaign-Related Activity.--
``(1) In general.--Subject to any applicable restrictions
and prohibitions under this Act, a covered organization may
make disbursements for campaign-related activity using--
``(A) amounts paid or donated to the organization
which are designated by the person providing the
amounts to be used for campaign-related activity;
``(B) unrestricted donor payments made to the
organization; and
``(C) other funds of the organization, including
amounts received pursuant to commercial activities in
the regular course of a covered organization's
business.
``(2) No effect on use of separate segregated fund.--
Nothing in this section shall be construed to affect the
authority of a covered organization to make disbursements from
a separate segregated fund established and administered by the
organization under section 316(b)(2)(C).
``(b) Mutually Agreed Restrictions on Use of Funds for Campaign-
Related Activity.--
``(1) Agreement and certification.--If a covered
organization and a person mutually agree, at the time the
person makes a donation, payment, or transfer to the
organization which would require the organization to disclose
the person's identification under section 304(g)(5)(A)(ii) or
section 304(f)(6)(A)(ii), that the organization will not use
the donation, payment, or transfer for campaign-related
activity, then not later than 30 days after the organization
receives the donation, payment, or transfer the organization
shall transmit to the person a written certification by the
chief financial officer of the covered organization (or, if the
organization does not have a chief financial officer, the
highest ranking financial official of the organization) that--
``(A) the organization will not use the donation,
payment, or transfer for campaign-related activity; and
``(B) the organization will not include any
information on the person in any report filed by the
organization under section 304 with respect to
independent expenditures or electioneering
communications, so that the person will not be required
to appear in a significant funder statement or a Top 5
Funders list under section 318(e).
``(2) Exception for payments made pursuant to commercial
activities.--Paragraph (1) does not apply with respect to any
payment or transfer made pursuant to commercial activities in
the regular course of a covered organization's business.
``(c) Certifications Regarding Disbursements for Campaign-Related
Activity.--
``(1) Certification by chief executive officer.--If, at any
time during a calendar quarter, a covered organization makes a
disbursement of funds for campaign-related activity using funds
described in subsection (a)(1), the chief executive officer of
the covered organization or the chief executive officer's
designee (or, if the organization does not have a chief
executive officer, the highest ranking official of the
organization or the highest ranking official's designee) shall
file a statement with the Commission which contains the
following certifications:
``(A) None of the campaign-related activity for
which the organization disbursed the funds during the
quarter was made in cooperation, consultation, or
concert with, or at the request or suggestion of, any
candidate or any authorized committee or agent of such
candidate, or political committee of a political party
or agent of any political party.
``(B) The chief executive officer or highest
ranking official of the covered organization (as the
case may be) has reviewed and approved each statement
and report filed by the organization under section 304
with respect to any such disbursement made during the
quarter.
``(C) Each statement and report filed by the
organization under section 304 with respect to any such
disbursement made during the quarter is complete and
accurate.
``(D) All such disbursements made during the
quarter are in compliance with this Act.
``(E) No portion of the amounts used to make any
such disbursements during the quarter is attributable
to funds received by the organization that were subject
to a mutual agreement (as provided in subsection
(b)(1)) that the organization will not use the funds
for campaign-related activity by the person who
provided the funds from being used for campaign-related
activity pursuant to subsection (b).
``(2) Application of electronic filing rules.--Section
304(d)(1) shall apply with respect to a statement required
under this subsection in the same manner as such section
applies with respect to a statement under subsection (c) or (g)
of section 304.
``(3) Deadline.--The chief executive officer or highest
ranking official of a covered organization (as the case may be)
shall file the statement required under this subsection with
respect to a calendar quarter not later than 15 days after the
end of the quarter.
``(d) Definitions.--For purposes of this section, the following
definitions apply:
``(1) Covered organization.--The term `covered
organization' means any of the following:
``(A) Any corporation which is subject to section
316(a), other than a corporation which is an
organization described in paragraph (3) of section
501(c) of the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code.
``(B) Any labor organization (as defined in section
316).
``(C) Any organization described in paragraph (4),
(5), or (6) of section 501(c) of the Internal Revenue
Code of 1986 and exempt from tax under section 501(a)
of such Code, other than an exempt section 501(c)(4)
organization (as defined in section 301(27)).
``(D) Any political organization under section 527
of the Internal Revenue Code of 1986, other than a
political committee under this Act.
``(2) Campaign-related activity.--
``(A) In general.--The term `campaign-related
activity' means--
``(i) an independent expenditure consisting
of a public communication (as defined in
section 301(22)), a transfer of funds to
another person (other than the transferor
itself) for the purpose of making such an
independent expenditure by that person or by
any other person (subject to subparagraph (C)),
or (in accordance with subparagraph (B) and
subject to subparagraph (C)) a transfer of
funds to another person (other than the
transferor itself) which is deemed to have been
made for the purpose of making such an
independent expenditure by that person or by
any other person; or
``(ii) an electioneering communication, a
transfer of funds to another person (other than
the transferor itself) for the purpose of
making an electioneering communication by that
person or by any other person (subject to
subparagraph (C)), or (in accordance with
subparagraph (B) and subject to subparagraph
(C)) a transfer of funds to another person
(other than the transferor itself)which is
deemed to have been made for the purpose of
making an electioneering communication by that
person or by any other person.
``(B) Rule for deeming transfers made for purpose
of campaign-related activity.--For purposes of
subparagraph (A), in determining whether a transfer of
funds by a covered organization to another person shall
be deemed to have been made for the purpose of making
an independent expenditure consisting of a public
communication or an electioneering communication, the
following rules apply:
``(i) The transfer shall be deemed to have
been made for the purpose of making such an
independent expenditure or an electioneering
communication if--
``(I) the covered organization
designates, requests, or suggests that
the amounts be used for such
independent expenditures or
electioneering communications and the
person to whom the amounts were
transferred agrees to do so;
``(II) the person making such
independent expenditures or
electioneering communications or
another person acting on that person's
behalf expressly solicited the covered
organization for a donation or payment
for making or paying for any such
independent expenditure or
electioneering communication;
``(III) the covered organization
and the person to whom the amounts were
transferred engaged in written or oral
discussion regarding the person either
making, or paying for, such independent
expenditures or electioneering
communications, or donating or
transferring the amounts to another
person for that purpose;
``(IV) the covered organization
which transferred the funds knew or had
reason to know that the person to whom
the amounts were transferred intended
to make such independent expenditures
or electioneering communications; or
``(V) the covered organization
which transferred the funds or the
person to whom the amounts were
transferred made one or more such
independent expenditures or
electioneering communications in an
aggregate amount of $50,000 or more
during the 2-year period which ends on
the date on which the amounts were
transferred.
``(ii) The transfer shall not be deemed to
have been made for the purpose of making such
an independent expenditure or an electioneering
communication if--
``(I) the transfer was a commercial
transaction occurring in the ordinary
course of business between the covered
organization and the person to whom the
amounts were transferred, unless there
is affirmative evidence that the
amounts were transferred for the
purpose of making such an independent
expenditure or electioneering
communication; or
``(II) the covered organization and
the person to whom the amounts were
transferred mutually agreed (as
provided in subsection (b)(1)) that the
person will not use the amounts for
campaign-related activity.
``(C) Special rule regarding transfers among
affiliates.--
``(I) Special rule.--In the case of a
transfer of an amount by one covered
organization to another covered organization
which is treated as a transfer between
affiliates under clause (ii), subparagraphs (A)
and (B) shall apply to the transfer only if the
aggregate amount transferred during the year by
such covered organization to that same covered
organization is equal to or greater than
$50,000.
``(ii) Determination of amount of certain
transfers among affiliates.--In determining the
amount of a transfer between affiliates for
purposes of clause (I), to the extent that the
transfer consists of funds attributable to
dues, fees, or assessments which are paid by
individuals on a regular, periodic basis in
accordance with a per-individual calculation
which is made on a regular basis, the transfer
shall be attributed to the individuals paying
the dues, fees, or assessments and shall not be
attributed to the covered organization.
``(iii) Description of transfers between
affiliates.--A transfer of amounts from one
covered organization to another covered
organization shall be treated as a transfer
between affiliates if--
``(I) one of the organizations is
an affiliate of the other organization;
or
``(II) each of the organizations is
an affiliate of the same organization,
except that the transfer shall not be treated
as a transfer between affiliates if one of the
organizations is established for the purpose of
disbursing funds for campaign-related activity.
``(iv) Determination of affiliate status.--
For purposes of clause (ii), a covered
organization is an affiliate of another covered
organization if--
``(I) the governing instrument of
the organization requires it to be
bound by decisions of the other
organization;
``(II) the governing board of the
organization includes persons who are
specifically designated representatives
of the other organization or are
members of the governing board,
officers, or paid executive staff
members of the other organization, or
whose service on the governing board is
contingent upon the approval of the
other organization; or
``(III) the organization is
chartered by the other organization.
``(v) Coverage of transfers to affiliated
section 501(c)(3) organizations.--This
subparagraph shall apply with respect to an
amount transferred by a covered organization to
an organization described in paragraph (3) of
section 501(c) of the Internal Revenue Code of
1986 and exempt from tax under section 501(a)
of such Code in the same manner as this
subparagraph applies to an amount transferred
by a covered organization to another covered
organization.
``(3) Unrestricted donor payment.--The term `unrestricted
donor payment' means a payment to a covered organization which
consists of a donation or payment from a person other than the
covered organization, except that such term does not include--
``(A) any payment made pursuant to commercial
activities in the regular course of a covered
organization's business; or
``(B) any donation or payment which is designated
by the person making the donation or payment to be used
for campaign-related activity or made in response to a
solicitation for funds to be used for campaign-related
activity.''.
SEC. 213. OPTIONAL USE OF SEPARATE ACCOUNT BY COVERED ORGANIZATIONS FOR
CAMPAIGN-RELATED ACTIVITY.
(a) In General.--Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.), as amended by section 212, is further
amended by adding at the end the following new section:
``SEC. 326. OPTIONAL USE OF SEPARATE ACCOUNT BY COVERED ORGANIZATIONS
FOR CAMPAIGN-RELATED ACTIVITY.
``(a) Optional Use of Separate Account.--
``(1) Establishment of account.--
``(A) In general.--At its option, a covered
organization may make disbursements for campaign-
related activity using amounts from a bank account
established and controlled by the organization to be
known as the Campaign-Related Activity Account
(hereafter in this section referred to as the
`Account'), which shall be maintained separately from
all other accounts of the organization and which shall
consist exclusively of the deposits described in
paragraph (2).
``(B) Mandatory use of account after
establishment.--If a covered organization establishes
an Account under this section, it may not make
disbursements for campaign-related activity from any
source other than amounts from the Account, other than
disbursements for campaign-related activity which, on
the basis of a reasonable belief by the organization,
would not be treated as disbursements for an exempt
function for purposes of section 527(f) of the Internal
Revenue Code of 1986.
``(C) Exclusive use of account for campaign-related
activity.--Amounts in the Account shall be used
exclusively for disbursements by the covered
organization for campaign-related activity. After such
disbursements are made, information with respect to
deposits made to the Account shall be disclosed in
accordance with section 304(g)(5) or section 304(f)(6).
``(2) Deposits described.--The deposits described in this
paragraph are deposits of the following amounts:
``(A) Amounts donated or paid to the covered
organization by a person other than the organization
for the purpose of being used for campaign-related
activity, and for which the person providing the
amounts has designated that the amounts be used for
campaign-related activity with respect to a specific
election or specific candidate.
``(B) Amounts donated or paid to the covered
organization by a person other than the organization
for the purpose of being used for campaign-related
activity, and for which the person providing the
amounts has not designated that the amounts be used for
campaign-related activity with respect to a specific
election or specific candidate.
``(C) Amounts donated or paid to the covered
organization by a person other than the organization in
response to a solicitation for funds to be used for
campaign-related activity.
``(D) Amounts transferred to the Account by the
covered organization from other accounts of the
organization, including from the organization's general
treasury funds.
``(3) No treatment as political committee.--The
establishment and administration of an Account in accordance
with this subsection shall not by itself be treated as the
establishment or administration of a political committee for
any purpose of this Act.
``(b) Reduction in Amounts Otherwise Available for Account in
Response to Demand of General Donors.--
``(1) In general.--If a covered organization which has
established an Account obtains any revenues during a year which
are attributable to a donation or payment from a person other
than the covered organization, and if the organization and any
such person have mutually agreed (as provided in section
325(b)(1)) that the organization will not use the person's
donation, payment, or transfer for campaign-related activity,
the organization shall reduce the amount of its revenues
available for deposits to the Account which are described in
subsection (a)(3)(D) during the year by the amount of the
donation or payment which is subject to the mutual agreement.
``(2) Exception.--Paragraph (1) does not apply with respect
to any payment made pursuant to commercial activities in the
regular course of a covered organization's business.
``(c) Covered Organization Defined.--In this section, the term
`covered organization' means any of the following:
``(1) Any corporation which is subject to section 316(a),
other than a corporation which is an organization described in
paragraph (3) of section 501(c) of the Internal Revenue Code of
1986 and exempt from tax under section 501(a) of such Code.
``(2) Any labor organization (as defined in section 316).
``(3) Any organization described in paragraph (4), (5), or
(6) of section 501(c) of the Internal Revenue Code of 1986 and
exempt from tax under section 501(a) of such Code, other than
an exempt section 501(c)(4) organization (as defined in section
301(27)).
``(4) Any political organization under section 527 of the
Internal Revenue Code of 1986, other than a political committee
under this Act.
``(d) Campaign-Related Activity Defined.--In this section, the term
`campaign-related activity' has the meaning given such term in section
325.''.
(b) Clarification of Treatment as Separate Segregated Fund.--A
Campaign-Related Activity Account (within the meaning of section 326 of
the Federal Election Campaign Act of 1971, as added by subsection (a))
may be treated as a separate segregated fund for purposes of section
527(f)(3) of the Internal Revenue Code of 1986.
SEC. 214. MODIFICATION OF RULES RELATING TO DISCLAIMER STATEMENTS
REQUIRED FOR CERTAIN COMMUNICATIONS.
(a) Applying Requirements to All Independent Expenditure
Communications.--Section 318(a) of the Federal Election Campaign Act of
1971 (2 U.S.C. 441d(a)) is amended by striking ``for the purpose of
financing communications expressly advocating the election or defeat of
a clearly identified candidate'' and inserting ``for an independent
expenditure consisting of a public communication''.
(b) Stand by Your Ad Requirements.--
(1) Maintenance of existing requirements for communications
by political parties and other political committees.--Section
318(d)(2) of such Act (2 U.S.C. 441d(d)(2)) is amended--
(A) in the heading, by striking ``others'' and
inserting ``political committees'';
(B) by striking ``subsection (a)'' and inserting
``subsection (a) which is paid for by a political
committee (including a political committee of a
political party), other than a political committee
which is described in subsection (e)(7)(B),''; and
(C) by striking ``or other person'' each place it
appears.
(2) Special disclaimer requirements for certain
communications.--Section 318 of such Act (2 U.S.C. 441d) is
amended by adding at the end the following new subsection:
``(e) Communications by Others.--
``(1) In general.--Any communication described in paragraph
(3) of subsection (a) which is transmitted through radio or
television (other than a communication to which subsection
(d)(2) applies because the communication is paid for by a
political committee, including a political committee of a
political party, other than a political committee which is
described in paragraph (7)(B)) shall include, in addition to
the requirements of that paragraph, the following:
``(A) The individual disclosure statement described
in paragraph (2) (if the person paying for the
communication is an individual) or the organizational
disclosure statement described in paragraph (3) (if the
person paying for the communication is not an
individual).
``(B) If the communication is an electioneering
communication or an independent expenditure consisting
of a public communication and is paid for in whole or
in part with a payment which is treated as a
disbursement by a covered organization for campaign-
related activity under section 325, the significant
funder disclosure statement described in paragraph (4)
(if applicable), unless, on the basis of criteria
established in regulations promulgated by the
Commission, the communication is of such short duration
that including the statement in the communication would
constitute a hardship to the person paying for the
communication by requiring a disproportionate amount of
the communication's content to consist of the
statement.
``(C) If the communication is an electioneering
communication or an independent expenditure consisting
of a public communication and is paid for in whole or
in part with a payment which is treated as a
disbursement by a covered organization for campaign-
related activity under section 325, the Top Five
Funders list described in paragraph (5) (if
applicable), unless, on the basis of criteria
established in regulations promulgated by the
Commission, the communication is of such short duration
that including the Top Five Funders list in the
communication would constitute a hardship to the person
paying for the communication by requiring a
disproportionate amount of the communication's content
to consist of the Top Five Funders list.
``(2) Individual disclosure statement described.--The
individual disclosure statement described in this paragraph is
the following: `I am _______, of _______, _______, and I
approve this message.', with--
``(A) the first blank filled in with the name of
the applicable individual;
``(B) the second blank filled in with the local
jurisdiction in which the applicable individual
resides; and
``(C) the third blank filled in with the State in
which the applicable individual resides.
``(3) Organizational disclosure statement described.--The
organizational disclosure statement described in this paragraph
is the following: `I am _______, the _______ of _______,
located in _______, _______, and _______ approves this
message.', with--
``(A) the first blank to be filled in with the name
of the applicable individual;
``(B) the second blank to be filled in with the
title of the applicable individual;
``(C) the third blank to be filled in with the name
of the organization or other person paying for the
communication;
``(D) the fourth blank to be filled in with the
local jurisdiction in which such organization's or
person's principal office is located;
``(E) the fifth blank to be filled in with the
State in which such organization's or person's
principal office is located; and
``(F) the sixth blank to be filled in with the name
of such organization or person.
``(4) Significant funder disclosure statement described.--
``(A) Statement if significant funder is an
individual.--If the significant funder of a
communication paid for in whole or in part with a
payment which is treated as a disbursement by a covered
organization for campaign-related activity under
section 325 is an individual, the significant funder
disclosure statement described in this paragraph is the
following: `I am _______, of _______, _______. I helped
to pay for this message, and I approve it.', with--
``(i) the first blank filled in with the
name of the applicable individual;
``(ii) the second blank filled in with the
local jurisdiction in which the applicable
individual resides; and
``(iii) the third blank filled in with the
State in which the applicable individual
resides.
``(B) Statement if significant funder is not an
individual.--If the significant funder of a
communication paid for in whole or in part with a
payment which is treated as a disbursement by a covered
organization for campaign-related activity under
section 325 is not an individual, the significant
funder disclosure statement described in this paragraph
is the following: `I am _______, the _______ of
_______, located in _______, _______. _______ helped to
pay for this message, and _______ approves it.', with--
``(i) the first blank to be filled in with
the name of the applicable individual;
``(ii) the second blank to be filled in
with the title of the applicable individual;
``(iii) the third blank to be filled in
with the name of the significant funder of the
communication;
``(iv) the fourth blank to be filled in
with the local jurisdiction in which the
significant funder's principal office is
located;
``(v) the fifth blank to be filled in with
the State in which the significant funder's
principal office is located; and
``(vi) the sixth and seventh blank each to
be filled in with the name of the significant
funder of the communication.
``(C) Significant funder defined.--
``(i) Independent expenditures.--For
purposes of this paragraph, the `significant
funder' with respect to an independent
expenditure consisting of a public
communication paid for in whole or in part with
a payment which is treated as a disbursement by
a covered organization for campaign-related
activity under section 325 shall be determined
as follows:
``(I) If any report filed by any
organization with respect to the
independent expenditure under section
304 during the 12-month period which
ends on the date of the disbursement
includes information on any person who
made a payment to the organization in
an amount equal to or exceeding
$100,000 which was designated by the
person to be used for campaign-related
activity consisting of that specific
independent expenditure (as required to
be included in the report under section
304(g)(5)(A)(i)), the person who is
identified among all such reports as
making the largest such payment.
``(II) If any report filed by any
organization with respect to the
independent expenditure under section
304 during the 12-month period which
ends on the date of the disbursement
includes information on any person who
made a payment to the organization in
an amount equal to or exceeding
$100,000 which was designated by the
person to be used for campaign-related
activity with respect to the same
election or in support of the same
candidate (as required to be included
in the report under section
304(g)(5)(A)(i)) but subclause (I) does
not apply, the person who is identified
among all such reports as making the
largest such payment.
``(III) If any report filed by any
organization with respect to the
independent expenditure under section
304 during the 12-month period which
ends on the date of the disbursement
includes information on any person who
made a payment to the organization in
an amount equal to or exceeding $10,000
which was provided for the purpose of
being used for campaign-related
activity or in response to a
solicitation for funds to be used for
campaign-related activity (as required
to be included in the report under
section 304(g)(5)(A)(i)) but subclause
(I) or subclause (II) does not apply,
the person who is identified among all
such reports as making the largest such
payment.
``(IV) If none of the reports filed
by any organization with respect to the
independent expenditure under section
304 during the 12-month period which
ends on the date of the disbursement
includes information on any person
(other than the organization) who made
a payment to the organization in an
amount equal to or exceeding $10,000
which was provided for the purpose of
being used for campaign-related
activity or in response to a
solicitation for funds to be used for
campaign-related activity, but any of
such reports includes information on
any person who made an unrestricted
donor payment to the organization (as
required to be included in the report
under section 304(g)(5)(A)(ii)) in an
amount equal to or exceeding $10,000,
the person who is identified among all
such reports as making the largest such
unrestricted donor payment.
``(ii) Electioneering communications.--For
purposes of this paragraph, the `significant
funder' with respect to an electioneering
communication paid for in whole or in part with
a payment which is treated as a disbursement by
a covered organization for campaign-related
activity under section 325, shall be determined
as follows:
``(I) If any report filed by any
organization with respect to the
electioneering communication under
section 304 during the 12-month period
which ends on the date of the
disbursement includes information on
any person who made a payment to the
organization in an amount equal to or
exceeding $100,000 which was designated
by the person to be used for campaign-
related activity consisting of that
specific electioneering communication
(as required to be included in the
report under section 304(f)(6)(A)(i)),
the person who is identified among all
such reports as making the largest such
payment.
``(II) If any report filed by any
organization with respect to the
electioneering communication under
section 304 during the 12-month period
which ends on the date of the
disbursement includes information on
any person who made a payment to the
organization in an amount equal to or
exceeding $100,000 which was designated
by the person to be used for campaign-
related activity with respect to the
same election or in support of the same
candidate (as required to be included
in the report under section
304(f)(6)(A)(i)) but subclause (I) does
not apply, the person who is identified
among all such reports as making the
largest such payment.
``(III) If any report filed by any
organization with respect to the
electioneering communication under
section 304 during the 12-month period
which ends on the date of the
disbursement includes information on
any person who made a payment to the
organization in an amount equal to or
exceeding $10,000 which was provided
for the purpose of being used for
campaign-related activity or in
response to a solicitation for funds to
be used for campaign-related activity
(as required to be included in the
report under section 304(f)(6)(A)(i))
but subclause (I) or subclause (II)
does not apply, the person who is
identified among all such reports as
making the largest such payment.
``(IV) If none of the reports filed
by any organization with respect to the
electioneering communication under
section 304 during the 12-month period
which ends on the date of the
disbursement includes information on
any person who made a payment to the
organization in an amount equal to or
exceeding $10,000 which was provided
for the purpose of being used for
campaign-related activity or in
response to a solicitation for funds to
be used for campaign-related activity,
but any of such reports includes
information on any person who made an
unrestricted donor payment to the
organization (as required to be
included in the report under section
304(f)(6)(A)(ii)) in an amount equal to
or exceeding $10,000, the person who is
identified among all such reports as
making the largest such unrestricted
donor payment.
``(5) Top 5 funders list described.--With respect to a
communication paid for in whole or in part with a payment which
is treated as a disbursement by a covered organization for
campaign-related activity under section 325, the Top 5 Funders
list described in this paragraph is--
``(A) in the case of a disbursement for an
independent expenditure consisting of a public
communication, a list of the 5 persons (or, in the case
of a communication transmitted through radio, the 2
persons) who provided the largest payments of any type
in an aggregate amount equal to or exceeding $10,000
which are required under section 304(g)(5)(A) to be
included in the reports filed by any organization with
respect to that independent expenditure under section
304 during the 12-month period which ends on the date
of the disbursement, together with the amount of the
payments each such person provided and the local
jurisdiction and State in which each such person lives
(in the case of a person who is an individual) or is
located (in the case of any other person); or
``(B) in the case of a disbursement for an
electioneering communication, a list of the 5 persons
(or, in the case of a communication transmitted through
radio, the 2 persons) who provided the largest payments
of any type in an aggregate amount equal to or
exceeding $10,000 which are required under section
304(f)(6)(A) to be included in the reports filed by any
organization with respect to that electioneering
communication under section 304 during the 12-month
period which ends on the date of the disbursement,
together with the amount of the payments each such
person provided and the local jurisdiction and State in
which each such person lives (in the case of a person
who is an individual) or is located (in the case of any
other person).
``(6) Method of conveyance of statement.--
``(A) Communications transmitted through radio.--In
the case of a communication to which this subsection
applies which is transmitted through radio, the
disclosure statements required under paragraph (1)
shall be made by audio by the applicable individual in
a clearly spoken manner.
``(B) Communications transmitted through
television.--In the case of a communication to which
this subsection applies which is transmitted through
television, the information required under paragraph
(1)--
``(i) shall appear in writing at the end of
the communication in a clearly readable manner,
with a reasonable degree of color contrast
between the background and the printed
statement, for a period of at least 6 seconds;
and
``(ii) except in the case of a Top 5
Funders list described in paragraph (5), shall
also be conveyed by an unobscured, full-screen
view of the applicable individual, or by the
applicable individual making the statement in
voice-over accompanied by a clearly
identifiable photograph or similar image of the
individual.
``(7) Application to certain pacs.--
``(A) Application.--This subsection shall apply
with respect to an electioneering communication, and to
an independent expenditure consisting of a public
communication, which is paid for in whole or in part
with a payment by a political committee described in
subparagraph (B) in the same manner as this subsection
applies with respect to an electioneering communication
and an independent expenditure consisting of a public
communication which is paid for in whole or in part
with a payment which is treated as a disbursement by a
covered organization under section 325, except that--
``(i) in applying paragraph (4)(C), the
`significant funder' with respect to such an
electioneering communication or such an
independent expenditure shall be the person who
is identified as providing the largest
aggregate amount of contributions, donations,
or payments to the political committee during
the 12-month period which ends on the date the
committee made the disbursement for the
electioneering communication or independent
expenditure (as determined on the basis of the
information contained in all reports filed by
the committee under section 304 during such
period); and
``(ii) in applying paragraph (5), the `Top
5 Funders list' shall be a list of the 5
persons who are identified as providing the
largest aggregate amounts of contributions,
donations, or payments to the political
committee during such 12-month period (as
determined on the basis of the information
contained in all such reports).
``(B) Political committee described.--A political
committee described in this subparagraph is a political
committee which receives or accepts contributions or
donations which do not comply with the contribution
limits or source prohibitions of this Act.
``(8) Applicable individual defined.--In this subsection,
the term `applicable individual' means, with respect to a
communication to which this paragraph applies--
``(A) if the communication is paid for by an
individual or if the significant funder of the
communication under paragraph (4) is an individual, the
individual involved;
``(B) if the communication is paid for by a
corporation or if the significant funder of the
communication under paragraph (4) is a corporation, the
chief executive officer of the corporation (or, if the
corporation does not have a chief executive officer,
the highest ranking official of the corporation);
``(C) if the communication is paid for by a labor
organization or if the significant funder of the
communication under paragraph (4) is a labor
organization, the highest ranking officer of the labor
organization; or
``(D) if the communication is paid for by any other
person or if the significant funder of the
communication under paragraph (4) is any other person,
the highest ranking official of such person.
``(9) Covered organization defined.--In this subsection,
the term `covered organization' means any of the following:
``(A) Any corporation which is subject to section
316(a), other than a corporation which is an
organization described in paragraph (3) of section
501(c) of the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code.
``(B) Any labor organization (as defined in section
316).
``(C) Any organization described in paragraph (4),
(5), or (6) of section 501(c) of the Internal Revenue
Code of 1986 and exempt from tax under section 501(a)
of such Code, other than an exempt section 501(c)(4)
organization (as defined in section 301(27)).
``(D) Any political organization under section 527
of the Internal Revenue Code of 1986, other than a
political committee under this Act.
``(10) Other definitions.--In this subsection, the terms
`campaign-related activity' and `unrestricted donor payment'
have the meaning given such terms in section 325.''.
(3) Application to certain mass mailings.--Section
318(a)(3) of such Act (2 U.S.C. 441d(a)(3)) is amended to read
as follows:
``(3) if not authorized by a candidate, an authorized
political committee of a candidate, or its agents, shall
clearly state--
``(A) the name and permanent street address,
telephone number, or World Wide Web address of the
person who paid for the communication;
``(B) if the communication is an independent
expenditure consisting of a mass mailing (as defined in
section 301(23)) which is paid for in whole or in part
with a payment which is treated as a disbursement by a
covered organization for campaign-related activity
under section 325, or which is paid for in whole or in
part by a political committee described in subsection
(e)(7)(B), the name and permanent street address,
telephone number, or World Wide Web address of--
``(i) the significant funder of the
communication, if any (as determined in
accordance with subsection (e)(4)(C)(i) or
(e)(7)(A)(i); and
``(ii) each person who would be included in
the Top 5 Funders list which would be submitted
with respect to the communication if the
communication were transmitted through
television, if any (as determined in accordance
with subsection (e)(5) or (e)(7)(A)(ii)); and
``(C) that the communication is not authorized by
any candidate or candidate's committee.''.
(4) Application to political robocalls.--Section 318 of
such Act (2 U.S.C. 441d), as amended by paragraph (2), is
further amended by adding at the end the following new
subsection:
``(f) Special Rules for Political Robocalls.--
``(1) Requiring communications to include certain
disclaimer statements.--Any communication consisting of a
political robocall which would be subject to the requirements
of subsection (e) if the communication were transmitted through
radio or television shall include the following:
``(A) The individual disclosure statement described
in subsection (e)(2) (if the person paying for the
communication is an individual) or the organizational
disclosure statement described in subsection (e)(3) (if
the person paying for the communication is not an
individual).
``(B) If the communication is an electioneering
communication or an independent expenditure consisting
of a public communication and is paid for in whole or
in part with a payment which is treated as a
disbursement by a covered organization for campaign-
related activity under section 325, or which is paid
for in whole or in part by a political committee
described in subsection (e)(7)(B), the significant
funder disclosure statement described in subsection
(e)(4) or (e)(7) (if applicable).
``(2) Timing of certain statement.--The statements required
to be included under paragraph (1) shall be made at the
beginning of the political robocall, unless, on the basis of
criteria established in regulations promulgated by the
Commission, the communication is of such short duration that
including the statement in the communication would constitute a
hardship to the person paying for the communication by
requiring a disproportionate amount of the communication's
content to consist of the statement.
``(3) Political robocall defined.--In this subsection, the
term `political robocall' means any outbound telephone call--
``(A) in which a person is not available to speak
with the person answering the call, and the call
instead plays a recorded message; and
``(B) which promotes, supports, attacks, or opposes
a candidate for election for Federal office.''.
SEC. 215. INDEXING OF CERTAIN AMOUNTS.
Title III of the Federal Election Campaign Act of 1971, as amended
by section 213, is amended by adding at the end the following new
section:
``SEC. 327. INDEXING OF CERTAIN AMOUNTS.
``(a) Indexing.--In any calendar year after 2010--
``(1) each of the amounts referred to in subsection (b)
shall be increased by the percent difference determined under
subparagraph (A) of section 315(c)(1), except that for purposes
of this paragraph, such percent difference shall be determined
as if the base year referred to in such subparagraph were 2009;
``(2) each amount so increased shall remain in effect for
the calendar year; and
``(3) if any amount after adjustment under paragraph (1) is
not a multiple of $100, such amount shall be rounded to the
nearest multiple of $100.
``(b) Amounts Described.--The amounts referred to in this
subsection are as follows:
``(1) The amount referred to in section 304(g)(5)(A)(i)(I).
``(2) The amount referred to in section
304(g)(5)(A)(ii)(I).
``(3) Each of the amounts referred to in section
304(g)(5)(A)(ii)(II).
``(4) The amount referred to in section
304(g)(5)(B)(ii)(I)(ee).
``(5) The amount referred to in section
304(g)(5)(B)(iii)(I).
``(6) The amount referred to in section 304(f)(6)(A)(i)(I).
``(7) The amount referred to in section
304(f)(6)(A)(ii)(I).
``(8) Each of the amounts referred to in section
304(f)(6)(A)(ii)(II).
``(9) The amount referred to in section
304(f)(6)(B)(ii)(I)(ee).
``(10) The amount referred to in section
304(f)(6)(B)(iii)(I).
``(11) The amount referred to in section 317(b).
``(12) Each of the amounts referred to in section
318(e)(4)(C).
``(13) The amount referred to in section
325(d)(2)(B)(i)(V).
``(14) The amount referred to in section
325(d)(2)(C)(i).''.
Subtitle C--Reporting Requirements for Registered Lobbyists
SEC. 221. REQUIRING REGISTERED LOBBYISTS TO REPORT INFORMATION ON
INDEPENDENT EXPENDITURES AND ELECTIONEERING
COMMUNICATIONS.
(a) In General.--Section 5(d)(1) of the Lobbying Disclosure Act of
1995 (2 U.S.C. 1604(d)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (F);
(2) by redesignating subparagraph (G) as subparagraph (I);
and
(3) by inserting after subparagraph (F) the following new
subparagraphs:
``(G) the amount of any independent expenditure (as
defined in section 301(17) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(17)) equal to or
greater than $1,000 made by such person or
organization, and for each such expenditure the name of
each candidate being supported or opposed and the
amount spent supporting or opposing each such
candidate;
``(H) the amount of any electioneering
communication (as defined in section 304(f)(3) of such
Act (2 U.S.C. 434(f)(3)) equal to or greater than
$1,000 made by such person or organization, and for
each such communication the name of the candidate
referred to in the communication; and''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to reports for semiannual periods described in
section 5(d)(1) of the Lobbying Disclosure Act of 1995 that begin after
the date of the enactment of this Act.
TITLE III--DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION ON
CAMPAIGN-RELATED ACTIVITY
SEC. 301. REQUIRING DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION
ON CAMPAIGN-RELATED ACTIVITY.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.), as amended by section 215, is amended by adding at the
end the following new section:
``SEC. 328. DISCLOSURES BY COVERED ORGANIZATIONS TO SHAREHOLDERS,
MEMBERS, AND DONORS OF INFORMATION ON DISBURSEMENTS FOR
CAMPAIGN-RELATED ACTIVITY.
``(a) Including Information in Regular Periodic Reports.--
``(1) In general.--A covered organization which submits
regular, periodic reports to its shareholders, members, or
donors on its finances or activities shall include in each such
report, in a clear and conspicuous manner, the information
described in paragraph (2) with respect to the disbursements
made by the organization for campaign-related activity during
the period covered by the report.
``(2) Information described.--The information described in
this paragraph is, for each disbursement for campaign-related
activity--
``(A) the date of the independent expenditure or
electioneering communication involved;
``(B) the amount of the independent expenditure or
electioneering communication involved;
``(C) the name of the candidate identified in the
independent expenditure or electioneering communication
involved and the office sought by the candidate;
``(D) in the case of a transfer of funds to another
person, the information required by subparagraphs (A)
through (C), as well as the name of the recipient of
the funds and the date and amount of the funds
transferred;
``(E) the source of such funds; and
``(F) such other information as the Commission
determines is appropriate to further the purposes of
this subsection.
``(b) Hyperlink to Information Included in Reports Filed With
Commission.--
``(1) Requiring posting of hyperlink.--If a covered
organization maintains an Internet site, the organization shall
post on such Internet site a hyperlink from its homepage to the
location on the Internet site of the Commission which contains
the following information:
``(A) The information the organization is required
to report under section 304(g)(5)(A) with respect to
public independent expenditures.
``(B) The information the organization is required
to include in a statement of disbursements for
electioneering communications under section 304(f)(6).
``(2) Deadline; duration of posting.--The covered
organization shall post the hyperlink described in paragraph
(1) not later than 24 hours after the Commission posts the
information described in such paragraph on the Internet site of
the Commission, and shall ensure that the hyperlink remains on
the Internet site of the covered organization until the
expiration of the 1-year period which begins on the date of the
election with respect to which the public independent
expenditures or electioneering communications are made.
``(c) Covered Organization Defined.--In this section, the term
`covered organization' means any of the following:
``(1) Any corporation which is subject to section 316(a),
other than a corporation which is an organization described in
paragraph (3) of section 501(c) of the Internal Revenue Code of
1986 and exempt from tax under section 501(a) of such Code.
``(2) Any labor organization (as defined in section 316).
``(3) Any organization described in paragraph (4), (5), or
(6) of section 501(c) of the Internal Revenue Code of 1986 and
exempt from tax under section 501(a) of such Code, other than
an exempt section 501(c)(4) organization (as defined in section
301(27)).
``(4) Any political organization under section 527 of the
Internal Revenue Code of 1986, other than a political committee
under this Act.''.
TITLE IV--OTHER PROVISIONS
SEC. 401. JUDICIAL REVIEW.
(a) Special Rules for Actions Brought on Constitutional Grounds.--
If any action is brought for declaratory or injunctive relief to
challenge the constitutionality of any provision of this Act or any
amendment made by this Act, the following rules shall apply:
(1) The action shall be filed in the United States District
Court for the District of Columbia, and an appeal from a
decision of the District Court may be taken to the Court of
Appeals for the District of Columbia Circuit.
(2) A copy of the complaint shall be delivered promptly to
the Clerk of the House of Representatives and the Secretary of
the Senate.
(b) Intervention by Members of Congress.--In any action in which
the constitutionality of any provision of this Act or any amendment
made by this Act is raised, any member of the House of Representatives
(including a Delegate or Resident Commissioner to the Congress) or
Senate who satisfies the requirements for standing under article III of
the Constitution shall have the right to intervene either in support of
or opposition to the position of a party to the case regarding the
constitutionality of the provision or amendment. To avoid duplication
of efforts and reduce the burdens placed on the parties to the action,
the court in any such action may make such orders as it considers
necessary, including orders to require intervenors taking similar
positions to file joint papers or to be represented by a single
attorney at oral argument.
(c) Challenge by Members of Congress.--Any Member of the House of
Representatives (including a Delegate or Resident Commissioner to the
Congress) or Senate may bring an action, subject to the special rules
described in subsection (a), for declaratory or injunctive relief to
challenge the constitutionality of any provision of this Act or any
amendment made by this Act.
SEC. 402. NO EFFECT ON PROTECTIONS AGAINST THREATS, HARASSMENTS, AND
REPRISALS.
Nothing in this Act or in any amendment made by this Act shall be
construed to affect any provision of law or any rule or regulation
which waives a requirement to disclose information relating to any
person in any case in which there is a reasonable probability that the
disclosure of the information would subject the person to threats,
harassments, or reprisals.
SEC. 403. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or the
application of a provision or amendment to any person or circumstance,
is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.
SEC. 404. EFFECTIVE DATE.
Except as otherwise provided, this Act and the amendments made by
this Act shall take effect upon the expiration of the 30-day period
which begins on the date of the enactment of this Act, and shall take
effect without regard to whether or not the Federal Election Commission
has promulgated regulations to carry out such amendments.
Passed the House of Representatives June 24, 2010.
Attest:
Clerk.
111th CONGRESS
2d Session
H. R. 5175
_______________________________________________________________________
AN ACT
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.