[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3150 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
2d Session
S. 3150
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
June 27, 2018
Mr. Whitehouse (for himself, Mr. Wyden, Mr. Schumer, Mr. Udall, Mr. Van
Hollen, Ms. Harris, Mr. Markey, Mr. Carper, Mr. Blumenthal, Mrs.
Gillibrand, Mr. Reed, Ms. Hassan, Ms. Klobuchar, Mr. King, Mr.
Heinrich, Mr. Murphy, Mr. Sanders, Mr. Leahy, Ms. Smith, Mr. Menendez,
Mr. Cardin, Ms. Warren, Mrs. McCaskill, Mr. Merkley, Ms. Cortez Masto,
Mr. Kaine, Ms. Hirono, Mr. Bennet, Mrs. Shaheen, Mr. Nelson, Ms.
Baldwin, Ms. Heitkamp, Mr. Jones, Mr. Casey, Mrs. Feinstein, Mr.
Durbin, Mr. Booker, Mr. Tester, Mrs. Murray, Mr. Schatz, Ms. Duckworth,
Mr. Brown, Mr. Manchin, Ms. Stabenow, Ms. Cantwell, Mr. Peters, Mr.
Warner, Mr. Coons, and Mr. Donnelly) 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Democracy Is
Strengthened by Casting Light On Spending in Elections Act of 2018'' or
the ``DISCLOSE Act of 2018''.
(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. Application of ban on contributions and expenditures by
foreign nationals to domestic corporations
that are foreign-controlled, foreign-
influenced, and foreign-owned.
Sec. 102. Clarification of application of foreign money ban to certain
disbursements and activities.
TITLE II--CAMPAIGN DISBURSEMENT REPORTING
Sec. 201. Campaign disbursement reporting.
Sec. 202. Effective date.
TITLE III--STAND BY YOUR AD
Sec. 301. Stand By Your Ad.
TITLE IV--USE OF FUNDS
Sec. 401. Repeal of restrictions on use of certain funds.
TITLE V--OTHER PROVISIONS
Sec. 501. Severability.
TITLE I--REGULATION OF CERTAIN POLITICAL SPENDING
SEC. 101. APPLICATION OF BAN ON CONTRIBUTIONS AND EXPENDITURES BY
FOREIGN NATIONALS TO DOMESTIC CORPORATIONS THAT ARE
FOREIGN-CONTROLLED, FOREIGN-INFLUENCED, AND FOREIGN-
OWNED.
(a) Application of Ban.--Section 319(b) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30121(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) over which one or more foreign nationals
described in paragraph (1) or (2) has the power to
direct, dictate, or control the decisionmaking process
of the corporation with respect to its interests in the
United States; or
``(D) over which one or more foreign nationals
described in paragraph (1) or (2) has the power to
direct, dictate, or control the decisionmaking 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 (52
U.S.C. 30121) 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 that calendar year.''.
(c) Effective Date.--The amendments made by this section shall take
effect upon the expiration of the 180-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.
SEC. 102. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN
DISBURSEMENTS AND ACTIVITIES.
(a) Application to Disbursements to Super PACs.--Section
319(a)(1)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30121(a)(1)(A)) is amended by striking the semicolon and inserting the
following: ``, including any disbursement to a political committee
which accepts donations or contributions that do not comply with the
limitations, prohibitions, and reporting requirements of this Act (or
any disbursement to or on behalf of any account of a political
committee which is established for the purpose of accepting such
donations or contributions);''.
(b) Conditions Under Which Corporate PACs May Make Contributions
and Expenditures.--Section 316(b) of such Act (52 U.S.C. 30118(b)) is
amended by adding at the end the following new paragraph:
``(8) A separate segregated fund established by a corporation may
not make a contribution or expenditure during a year unless the fund
has certified to the Commission the following during the year:
``(A) Each individual who manages the fund, and who is
responsible for exercising decisionmaking authority for the
fund, is a citizen of the United States or is lawfully admitted
for permanent residence in the United States.
``(B) No foreign national under section 319 participates in
any way in the decisionmaking processes of the fund with regard
to contributions or expenditures under this Act.
``(C) The fund does not solicit or accept recommendations
from any foreign national under section 319 with respect to the
contributions or expenditures made by the fund.
``(D) Any member of the board of directors of the
corporation who is a foreign national under section 319
abstains from voting on matters concerning the fund or its
activities.''.
TITLE II--CAMPAIGN DISBURSEMENT REPORTING
SEC. 201. 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 (52 U.S.C.
30101(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 (52 U.S.C. 30104(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 January 1, 2019, 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 (52 U.S.C. 30126) 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 and,
in the case of a covered organization that is a
corporation (other than a business concern that is an
issuer of a class of securities registered under
section 12 of the Securities Exchange Act of 1934 (15
U.S.C. 78l) or that is required to file reports under
section 15(d) of that Act (15 U.S.C. 78o(d))) or an
entity described in subsection (e)(2), a list of the
beneficial owners (as defined in paragraph (4)(A)) of
the entity that--
``(i) identifies each beneficial owner by
name and current residential or business street
address; and
``(ii) if any beneficial owner exercises
control over the entity through another legal
entity, such as a corporation, partnership,
limited liability company, or trust, identifies
each such other legal entity and each such
beneficial owner who will use that other entity
to exercise control over the entity.
``(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) Beneficial owner defined.--
``(i) In general.--Except as provided in
clause (ii), the term `beneficial owner' means,
with respect to any entity, a natural person
who, directly or indirectly--
``(I) exercises substantial control
over an entity through ownership,
voting rights, agreement, or otherwise;
or
``(II) has a substantial interest
in or receives substantial economic
benefits from the assets of an entity.
``(ii) Exceptions.--The term `beneficial
owner' shall not include--
``(I) a minor child;
``(II) a person acting as a
nominee, intermediary, custodian, or
agent on behalf of another person;
``(III) a person acting solely as
an employee of an entity and whose
control over or economic benefits from
the entity derives solely from the
employment status of the person;
``(IV) a person whose only interest
in an entity is through a right of
inheritance, unless the person also
meets the requirements of clause (i);
or
``(V) a creditor of an entity,
unless the creditor also meets the
requirements of clause (i).
``(iii) Anti-abuse rule.--The exceptions
under clause (ii) shall not apply if used for
the purpose of evading, circumventing, or
abusing the provisions of clause (i) or
paragraph (2)(A).
``(B) 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.
``(C) 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.
``(D) 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.--
``(1) In general.--In this section, the term `campaign-
related disbursement' means a disbursement by a covered
organization for any of the following:
``(A) An independent expenditure consisting of a
public communication.
``(B) An electioneering communication, as defined
in section 304(f)(3).
``(C) A covered transfer.
``(2) Intent not required.--A disbursement for an item
described in subparagraph (A), (B), or (C) of paragraph (1)
shall be treated as a campaign-related disbursement regardless
of the intent of the person making the disbursement.
``(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) A limited liability corporation that is not otherwise
treated as a corporation for purposes of this Act (other than
an organization described in section 501(c)(3) of the Internal
Revenue Code of 1986).
``(3) 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).
``(4) A labor organization (as defined in section 316(b)).
``(5) Any political organization under section 527 of the
Internal Revenue Code of 1986, other than a political committee
under this Act (except as provided in paragraph (6)).
``(6) A political committee with an account that accepts
donations or contributions that do not comply with the
contribution limits or source prohibitions under this Act, but
only with respect to such accounts.
``(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
(52 U.S.C. 30104) is amended by striking ``Any requirement''
and inserting ``Except as provided in section 324(b), any
requirement''.
(3) Coordination with fincen.--
(A) In general.--The Director of the Financial
Crimes Enforcement Network of the Department of the
Treasury shall provide the Federal Election Commission
with such information as necessary to assist in
administering and enforcing section 324 of the Federal
Election Campaign Act of 1971, as added by this
subsection.
(B) Report.--Not later than 6 months after the date
of the enactment of this Act, the Chairman of the
Federal Election Commission, in consultation with the
Director of the Financial Crimes Enforcement Network of
the Department of the Treasury, shall submit to
Congress a report with recommendations for providing
further legislative authority to assist in the
administration and enforcement of such section 324.
SEC. 202. EFFECTIVE DATE.
Except as provided in section 201(a)(3), the amendments made by
this title shall apply with respect to disbursements made on or after
January 1, 2019, and shall take effect without regard to whether or not
the Federal Election Commission has promulgated regulations to carry
out such amendments.
TITLE III--STAND BY YOUR AD
SEC. 301. STAND BY YOUR AD.
(a) Disclaimer Requirements for Campaign-Related Disbursements.--
Section 318(a) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30120(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 a campaign-related
disbursement, as defined in section 324, consisting of a public
communication''.
(b) Stand By Your Ad Requirements.--
(1) Maintenance of requirements for political parties and
certain political committees.--Section 318(d)(2) of such Act
(52 U.S.C. 30120(d)(2)) is amended--
(A) in the heading, by striking ``others'' and
inserting ``certain political committees'';
(B) by striking ``Any communication'' and inserting
``(A) Any communication'';
(C) 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)'';
(D) by striking ``or other person'' each place it
appears; and
(E) by adding at the end the following new
subparagraph:
``(B) 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 files a statement under
such section.''.
(2) Modification of additional requirements for certain
communications.--Section 318(d) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30120(d)) is amended--
(A) in paragraph (1)(A)--
(i) by striking ``which is transmitted
through radio'' and inserting ``which is in an
audio format''; and
(ii) by striking ``By radio'' in the
heading and inserting ``Audio format'';
(B) in paragraph (1)(B)--
(i) by striking ``which is transmitted
through television'' and inserting ``which is
in video format''; and
(ii) by striking ``By television'' in the
heading and inserting ``Video format''; and
(C) in paragraph (2)--
(i) by striking ``transmitted through radio
or television'' and inserting ``made in audio
or video format''; and
(ii) by striking ``through television'' in
the second sentence and inserting ``in video
format''.
(3) Special disclaimer requirements for certain
communications.--Section 318 of such Act (52 U.S.C. 30120) 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 in audio or video
format (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 in video
format 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), unless, on the basis of criteria
established in regulations issued 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 content of the
communication to consist of the Top Five Funders list.
``(C) If the communication is transmitted in audio
format 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 in audio format.--In the case
of a communication to which this subsection applies
which is transmitted in audio format, the disclosure
statements required under paragraph (1) shall be made
by audio by the applicable individual in a clearly
spoken manner.
``(B) Communications transmitted in video format.--
In the case of a communication to which this subsection
applies which is transmitted in video format, 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); and
``(iii) if the communication is paid for by
a labor organization, trade association, or any
other organization, the highest ranking officer
or official of the organization.
``(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 five persons who provided
the largest payments of any type in an aggregate amount
equal to or exceeding $10,000 which are required under
section 324(a) to be included in the reports filed by a
covered organization with respect to such communication
during the 12-month period ending on the date of the
disbursement and the amount of the payments each such
person provided. If two 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 in
an aggregate amount equal to or exceeding $10,000 which
are required under section 324(a) to be included in the
reports filed by a covered organization with respect to
such communication during the 12-month period ending on
the date of the disbursement and the amount of the
payments each such person provided. If two 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.''.
(4) Clarification related to internet communications.--
Section 318 of such Act (52 U.S.C. 30120), as amended by
paragraph (3), is amended by adding at the end the following
new subsection:
``(f) Audio and Video Formats.--For purposes of this section, any
reference to a communication transmitted in audio format or video
format shall include a reference to a communication transmitted over
the Internet in such format.''.
(c) Disclosure Requirements for Campaign Communications Made
Through Prerecorded Telephone Calls.--
(1) Application of requirements.--Section 318(a) of the
Federal Election Campaign Act of 1971 (52 U.S.C. 30120(a)) is
amended by inserting after ``mailing,'' each place it appears
the following: ``telephone call which consists in substantial
part of a prerecorded audio message,''.
(2) Treatment as audio communication.--
(A) Communications by candidates or authorized
persons.--Section 318(d)(1) of such Act (52 U.S.C.
30120(d)(1)) is amended by adding at the end the
following new subparagraph:
``(C) Prerecorded telephone calls.--Any
communication described in paragraph (1) or (2) of
subsection (a) which is a telephone call which consists
in substantial part of a prerecorded audio message
shall meet the requirements applicable under
subparagraph (A) to communications transmitted in an
audio format, except that the statement required under
such subparagraph shall be made at the beginning of the
telephone call.''.
(B) Communications by others.--
(i) In general.--Section 318(d)(2) of such
Act (52 U.S.C. 30120(d)(2)), as amended by
subsection (b)(1), is further amended--
(I) by redesignating subparagraph
(B) as subparagraph (C); and
(II) by inserting after
subparagraph (A) the following new
subparagraph:
``(B) Any communication described in paragraph (3)
of subsection (a) which is a telephone call which
consists in substantial part of a prerecorded audio
message shall meet the requirements applicable under
this paragraph to communications transmitted in an
audio format, except that the statement required shall
be made at the beginning of the telephone call.''.
(ii) Application of special personal
disclosure rules for certain communications.--
Section 318(e) of such Act, as added by
subsection (b)(3), is amended--
(I) in paragraph (1) in the matter
preceding subparagraph (A), by striking
``audio or video format'' and inserting
``audio or video format, or which is a
telephone call which consists in
substantial part of a prerecorded audio
message,''; and
(II) in paragraph (3), by adding at
the end the following new subparagraph:
``(C) Communications made through prerecorded
telephone calls.--Any communication to which this
paragraph applies which is a telephone call which
consists in substantial part of a prerecorded audio
message shall meet the requirements applicable under
this paragraph to communications transmitted in audio
format.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to disbursements made on or after January 1, 2019.
TITLE IV--USE OF FUNDS
SEC. 401. REPEAL OF RESTRICTIONS ON USE OF CERTAIN FUNDS.
The following provisions of the Consolidated Appropriations Act,
2018 are repealed:
(1) Section 125 of Division E.
(2) Section 631 of Division E.
(3) Section 735 of Division E.
TITLE V--OTHER PROVISIONS
SEC. 501. 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.
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