[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2219 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 2219
To amend the Federal Election Campaign Act of 1971 to provide for
additional disclosure requirements for corporations, labor
organizations, Super PACs and other entities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 21, 2012
Mr. Whitehouse (for himself, Mr. Franken, Mr. Schumer, Mr. Bennet, Mr.
Merkley, Mrs. Shaheen, Mr. Udall of New Mexico, Mr. Wyden, Mr. Sanders,
Mr. Begich, Mrs. Murray, Mr. Menendez, Mr. Levin, Mr. Kerry, Mr.
Bingaman, Mrs. Boxer, Mr. Harkin, Mr. Leahy, Ms. Stabenow, Mr.
Rockefeller, Mrs. Gillibrand, Mr. Reed, Mr. Blumenthal, Mr. Durbin, Ms.
Klobuchar, Mr. Coons, Mr. Cardin, Mr. Udall of Colorado, Mr. Brown of
Ohio, Mr. Webb, Mr. Conrad, Mrs. McCaskill, Mr. Casey, Mr. Akaka, Mr.
Lautenberg, Mrs. Feinstein, and Ms. Landrieu) introduced the following
bill; which was read twice and referred to the Committee on Rules and
Administration
_______________________________________________________________________
A BILL
To amend the Federal Election Campaign Act of 1971 to provide for
additional disclosure requirements for corporations, labor
organizations, Super PACs and other entities, 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.
This Act may be cited as the ``Democracy Is Strengthened by Casting
Light On Spending in Elections Act of 2012'' or the ``DISCLOSE Act of
2012''.
SEC. 2. CAMPAIGN DISBURSEMENT REPORTING.
(a) Information Required To Be Reported.--
(1) Treatment of functional equivalent of express advocacy
as independent expenditure.--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 expressly advocates the election or
defeat of a clearly identified candidate, or is the
functional equivalent of express advocacy because, when
taken as a whole, 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''.
(2) Expansion of period during which communications are
treated as electioneering communications.--Section
304(f)(3)(A)(i) of such Act (2 U.S.C. 434(f)(3)(A)(i)) is
amended--
(A) by redesignating subclause (III) as subclause
(IV); and
(B) by striking subclause (II) and inserting the
following:
``(II) in the case of a
communication which refers to a
candidate for an office other than the
President or Vice President, is made
during the period beginning on January
1 of the calendar year in which a
general or runoff election is held and
ending on the date of the general or
runoff election (or in the case of a
special election, during the period
beginning on the date on which the
announcement with respect to such
election is made and ending on the date
of the special election);
``(III) in the case of a
communication which refers to a
candidate for the office of President
or Vice President, is made in any State
during the period beginning 120 days
before the first primary election,
caucus, or preference election held for
the selection of delegates to a
national nominating convention of a
political party is held in any State
(or, if no such election or caucus is
held in any State, the first convention
or caucus of a political party which
has the authority to nominate a
candidate for the office of President
or Vice President) and ending on the
date of the general election; and''.
(3) Effective date; transition for electioneering
communications made prior to enactment.--The amendment made by
paragraph (2) shall apply with respect to communications made
on or after July 1, 2012, except that no communication which is
made prior to such date shall be treated as an electioneering
communication under subclause (II) or (III) of section
304(f)(3)(A)(i) of the Federal Election Campaign Act of 1971
(as amended by paragraph (2)) unless the communication would be
treated as an electioneering communication under such section
if the amendment made by paragraph (2) did not apply.
(b) Disclosure Requirements for Corporations, Labor Organizations,
and Certain Other Entities.--
(1) In general.--Section 324 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441k) is amended to read as
follows:
``SEC. 324. DISCLOSURE OF CAMPAIGN-RELATED DISBURSEMENTS BY COVERED
ORGANIZATIONS.
``(a) Disclosure Statement.--
``(1) In general.--Any covered organization that makes
campaign-related disbursements aggregating more than $10,000 in
an election reporting cycle shall, not later than 24 hours
after each disclosure date, file a statement with the
Commission made under penalty of perjury that contains the
information described in paragraph (2)--
``(A) in the case of the first statement filed
under this subsection, for the period beginning on the
first day of the election reporting cycle and ending on
the first such disclosure date; and
``(B) in the case of any subsequent statement filed
under this subsection, for the period beginning on the
previous disclosure date and ending on such disclosure
date.
``(2) Information described.--The information described in
this paragraph is as follows:
``(A) The name of the covered organization and the
principal place of business of such organization.
``(B) The amount of each campaign-related
disbursement made by such organization during the
period covered by the statement of more than $1,000,
and the name and address of the person to whom the
disbursement was made.
``(C) In the case of a campaign-related
disbursement that is not a covered transfer, the
election to which the campaign-related disbursement
pertains and if the disbursement is made for a public
communication, the name of any candidate identified in
such communication and whether such communication is in
support of or in opposition to a candidate.
``(D) A certification by the chief executive
officer or person who is the head of the covered
organization that the campaign-related disbursement is
not made in cooperation, consultation, or concert with
or at the request or suggestion of a candidate,
authorized committee, or agent of a candidate,
political party, or agent of a political party.
``(E) If the covered organization makes campaign-
related disbursements using exclusively funds in a
segregated bank account consisting of funds that were
paid directly to such account by persons other than the
covered organization that controls the account, for
each such payment to the account--
``(i) the name and address of each person
who made such payment during the period covered
by the statement;
``(ii) the date and amount of such payment;
and
``(iii) the aggregate amount of all such
payments made by the person during the period
beginning on the first day of the election
reporting cycle and ending on the disclosure
date;
but only if such payment was made by a person who made
payments to the account in an aggregate amount of
$10,000 or more during the period beginning on the
first day of the election reporting cycle and ending on
the disclosure date.
``(F) If the covered organization makes campaign-
related disbursements using funds other than funds in a
segregated bank account described in subparagraph (E),
for each payment to the covered organization--
``(i) the name and address of each person
who made such payment during the period covered
by the statement;
``(ii) the date and amount of such payment;
and
``(iii) the aggregate amount of all such
payments made by the person during the period
beginning on the first day of the election
reporting cycle and ending on the disclosure
date;
but only if such payment was made by a person who made
payments to the covered organization in an aggregate
amount of $10,000 or more during the period beginning
on the first day of the election reporting cycle and
ending on the disclosure date.
``(G) Such other information as required in rules
established by the Commission to promote the purposes
of this section.
``(3) Exceptions.--
``(A) Amounts received in ordinary course of
business.--The requirement to include in a statement
filed under paragraph (1) the information described in
paragraph (2) shall not apply to amounts received by
the covered organization in commercial transactions in
the ordinary course of any trade or business conducted
by the covered organization or in the form of
investments (other than investments by the principal
shareholder in a limited liability corporation) in the
covered organization.
``(B) Donor restriction on use of funds.--The
requirement to include in a statement submitted under
paragraph (1) the information described in subparagraph
(F) of paragraph (2) shall not apply if--
``(i) the person described in such
subparagraph prohibited, in writing, the use of
the payment made by such person for campaign-
related disbursements; and
``(ii) the covered organization agreed to
follow the prohibition and deposited the
payment in an account which is segregated from
any account used to make campaign-related
disbursements.
``(C) Amounts received from affiliates.--The
requirement to include in a statement submitted under
paragraph (1) the information described in subparagraph
(F) of paragraph (2) shall not apply to any amount
which is described in subsection (f)(3)(A)(i).
``(4) Other definitions.--For purposes of this section:
``(A) Disclosure date.--The term `disclosure date'
means--
``(i) the first date during any election
reporting cycle by which a person has made
campaign-related disbursements aggregating more
than $10,000; and
``(ii) any other date during such election
reporting cycle by which a person has made
campaign-related disbursements aggregating more
than $10,000 since the most recent disclosure
date for such election reporting cycle.
``(B) Election reporting cycle.--The term `election
reporting cycle' means the 2-year period beginning on
the date of the most recent general election for
Federal office.
``(C) Payment.--The term `payment' includes any
contribution, donation, transfer, payment of dues, or
other payment.
``(b) Coordination With Other Provisions.--
``(1) Other reports filed with the commission.--Information
included in a statement filed under this section may be
excluded from statements and reports filed under section 304.
``(2) Treatment as separate segregated fund.--A segregated
bank account referred to in subsection (a)(2)(E) may be treated
as a separate segregated fund for purposes of section 527(f)(3)
of the Internal Revenue Code of 1986.
``(c) Filing.--Statements required to be filed under subsection (a)
shall be subject to the requirements of section 304(d) to the same
extent and in the same manner as if such reports had been required
under subsection (c) or (g) of section 304.
``(d) Campaign-Related Disbursement Defined.--In this section, the
term `campaign-related disbursement' means a disbursement by a covered
organization for any of the following:
``(1) An independent expenditure consisting of a public
communication.
``(2) An electioneering communication, as defined in
section 304(f)(3).
``(3) A covered transfer.
``(e) Covered Organization Defined.--In this section, the term
`covered organization' means any of the following:
``(1) A corporation (other than an organization described
in section 501(c)(3) of the Internal Revenue Code of 1986).
``(2) An organization described in section 501(c) of such
Code and exempt from taxation under section 501(a) of such Code
(other than an organization described in section 501(c)(3) of
such Code).
``(3) A labor organization (as defined in section 316(b)).
``(4) Any political organization under section 527 of the
Internal Revenue Code of 1986, other than a political committee
under this Act.
``(f) Covered Transfer Defined.--
``(1) In general.--In this section, the term `covered
transfer' means any transfer or payment of funds by a covered
organization to another person if the covered organization--
``(A) designates, requests, or suggests that the
amounts be used for--
``(i) campaign-related disbursements (other
than covered transfers); or
``(ii) making a transfer to another person
for the purpose of making or paying for such
campaign-related disbursements;
``(B) made such transfer or payment in response to
a solicitation or other request for a donation or
payment for--
``(i) the making of or paying for campaign-
related disbursements (other than covered
transfers); or
``(ii) making a transfer to another person
for the purpose of making or paying for such
campaign-related disbursements;
``(C) engaged in discussions with the recipient of
the transfer or payment regarding--
``(i) the making of or paying for campaign-
related disbursements (other than covered
transfers); or
``(ii) donating or transferring any amount
of such transfer or payment to another person
for the purpose of making or paying for such
campaign-related disbursements;
``(D) made campaign-related disbursements (other
than a covered transfer) in an aggregate amount of
$50,000 or more during the 2-year period ending on the
date of the transfer or payment, or knew or had reason
to know that the person receiving the transfer or
payment made such disbursements in such an aggregate
amount during that 2-year period; or
``(E) knew or had reason to know that the person
receiving the transfer or payment would make campaign-
related disbursements in an aggregate amount of $50,000
or more during the 2-year period beginning on the date
of the transfer or payment.
``(2) Exclusions.--The term `covered transfer' does not
include any of the following:
``(A) A disbursement made by a covered organization
in a commercial transaction in the ordinary course of
any trade or business conducted by the covered
organization or in the form of investments made by the
covered organization.
``(B) A disbursement made by a covered organization
if--
``(i) the covered organization prohibited,
in writing, the use of such disbursement for
campaign-related disbursements; and
``(ii) the recipient of the disbursement
agreed to follow the prohibition and deposited
the disbursement in an account which is
segregated from any account used to make
campaign-related disbursements.
``(3) Exception for certain transfers among affiliates.--
``(A) Exception for certain transfers among
affiliates.--
``(i) In general.--The term `covered
transfer' does not include an amount
transferred by one covered organization to
another covered organization if such transfer--
``(I) is not made directly into a
separate segregated bank account
described in subsection (a)(2)(E), and
``(II) is treated as a transfer
between affiliates under subparagraph
(B).
``(ii) Special rule.--If the aggregate
amount of transfers described in clause (i)
exceeds $50,000 in any election reporting
cycle--
``(I) the covered organization
which makes such transfers shall
provide to the covered organization
receiving such transfers the
information required under subsection
(a)(2)(F) (applied by substituting `the
period beginning on the first day of
the election reporting cycle and ending
on the date of the most recent transfer
described in subsection (f)(3)(A)(i)'
for `the period covered by the
statement' in clause (i) thereof); and
``(II) the covered organization
receiving such transfers shall report
the information described in subclause
(I) on any statement filed under
subsection (a)(1) as if any
contribution, donation, or transfer to
which such information relates was made
directly to the covered organization
receiving the transfer.
``(B) 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 making campaign-
related disbursements.
``(C) Determination of affiliate status.--For
purposes of this paragraph, the following organizations
shall be considered to be affiliated with each other:
``(i) A membership organization, including
a trade or professional association, and the
related State and local entities of that
organization.
``(ii) A national or international labor
organization and its State or local unions, or
an organization of national or international
unions and its State and local entities.
``(iii) A corporation and its wholly owned
subsidiaries.
``(D) Coverage of transfers to affiliated section
501(c)(3) organizations.--This paragraph 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 paragraph applies to an
amount transferred by a covered organization to another
covered organization.''.
(2) Conforming amendment.--Section 304(f)(6) of such Act (2
U.S.C. 434) is amended by striking ``Any requirement'' and
inserting ``Except as provided in section 324(b), any
requirement''.
SEC. 3. STAND BY YOUR AD.
(a) Disclaimer Requirements To Include Functional Equivalent of
Express Advocacy.--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 the purpose of
financing public communications which are described in section
301(17)(A)''.
(b) Stand by Your Ad Requirements.--
(1) Maintenance of requirements for political parties and
certain 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 ``certain political committees'';
(B) by inserting ``which (except to the extent
provided in the last sentence of this paragraph) is
paid for by a political committee (including a
political committee of a political party) and'' after
``subsection (a)'';
(C) by striking ``or other person'' each place it
appears; and
(D) by adding at the end the following: ``This
paragraph does not apply to a communication paid for in
whole or in part with a payment which is treated as a
campaign-related disbursement under section 324 and
with respect to which a covered organization is
required to file a statement under such section.''.
(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) shall include, in addition to the requirements
of such paragraph, the following:
``(A) The individual disclosure statement described
in paragraph (2)(A) (if the person paying for the
communication is an individual) or the organizational
disclosure statement described in paragraph (2)(B) (if
the person paying for the communication is not an
individual).
``(B) If the communication is transmitted through
television and is paid for in whole or in part with a
payment which is treated as a campaign-related
disbursement under section 324, the Top Five Funders
list (if applicable).
``(C) If the communication is transmitted through
radio and is paid for in whole or in part with a
payment which is treated as a campaign-related
disbursement under section 324, the Top Two Funders
list (if applicable), unless, on the basis of criteria
established in regulations issued by the Commission,
the communication is of such short duration that
including the Top Two Funders list in the communication
would constitute a hardship to the person paying for
the communication by requiring a disproportionate
amount of the content of the communication to consist
of the Top Two Funders list.
``(2) Disclosure statements described.--
``(A) Individual disclosure statements.--The
individual disclosure statement described in this
subparagraph is the following: `I am ________, and I
approve this message.', with the blank filled in with
the name of the applicable individual.
``(B) Organizational disclosure statements.--The
organizational disclosure statement described in this
subparagraph is the following: `I am ________, the
________ of ________, and ________ approves this
message.', 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;
and
``(iii) the third and fourth blank each to
be filled in with the name of the organization
or other person paying for the communication.
``(3) 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 or in a crawl along the
bottom 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) 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, except in the case of
a Top Five Funders list.
``(4) Definitions.--In this subsection:
``(A) Applicable individual.--The term `applicable
individual' means, with respect to a communication to
which this subsection applies--
``(i) if the communication is paid for by
an individual, the individual involved;
``(ii) if the communication is paid for by
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);
``(iii) if the communication is paid for by
a labor organization, the highest ranking
officer of the labor organization; and
``(iv) if the communication is paid for by
any other person, the highest ranking official
of such person.
``(B) Covered organization and campaign-related
disbursement.--The terms `campaign-related
disbursement' and `covered organization' have the
meaning given such terms in section 324.
``(C) Top five funders list.--The term `Top Five
Funders list' means, with respect to a communication
paid for in whole or in part with a payment which is
treated as a campaign-related disbursement under
section 324, a list of the 5 persons who provided the
largest payments of any type which--
``(i) are in an aggregate amount equal to
or exceeding $10,000 for the period beginning
on the first day of the election reporting
cycle (as defined in section 324) and ending on
the date of such communication, and
``(ii) are required to be included in the
reports filed by a covered organization under
section 324(a).
If 2 or more people provided the fifth largest of such
payments, the covered organization involved shall
select one of those persons to be included on the Top
Five Funders list.
``(D) Top two funders list.--The term `Top Two
Funders list' means, with respect to a communication
paid for in whole or in part with a payment which is
treated as a campaign-related disbursement under
section 324, a list of the persons who provided the
largest and the second largest payments of any type
which--
``(i) are in an aggregate amount equal to
or exceeding $10,000 for the period beginning
on the first day of the election reporting
cycle (as defined in section 324) and ending on
the date of such communication, and
``(ii) are required to be included in the
reports filed by a covered organization under
section 324(a).
If 2 or more persons provided the second largest of
such payments, the covered organization involved shall
select one of those persons to be included on the Top
Two Funders list.''.
SEC. 4. APPLICATION OF DISCLOSURE AND DISCLAIMER RULES TO SUPER PACS.
(a) In General.--Subsection (e) of section 324 of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441k), as amended by section 2,
is amended by adding at the end the following new paragraph:
``(5) A political committee with an account established for
the purpose of accepting donations or contributions that do not
comply with the contribution limits or source prohibitions
under this Act, but only with respect to the accounts
established for such purpose.''.
(b) Conforming Amendment.--Paragraph (4) of section 324(e) of such
Act (2 U.S.C. 441k), as amended by section 2, is amended by inserting
``(except as provided in paragraph (5))'' before the period at the end.
SEC. 5. 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. 6. EFFECTIVE DATE.
Except as provided in section 2(a)(3), the amendments made by this
Act shall apply with respects to disbursements made on or after July 1,
2012, and shall take effect without regard to whether or not the
Federal Election Commission has promulgated regulations to carry out
such amendments.
<all>