[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1172 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1172
To amend the Federal Election Campaign Act to clarify the treatment of
coordinated expenditures as contributions made to candidates under such
Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 18, 2021
Mr. Price of North Carolina introduced the following bill; which was
referred to the Committee on House Administration
_______________________________________________________________________
A BILL
To amend the Federal Election Campaign Act to clarify the treatment of
coordinated expenditures as contributions made to candidates under such
Act, 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 ``Stop Super PAC-Candidate
Coordination Act''.
SEC. 2. CLARIFICATION OF TREATMENT OF COORDINATED EXPENDITURES AS
CONTRIBUTIONS TO CANDIDATES.
(a) Treatment as Contribution to Candidate.--Section 301(8)(A) of
the Federal Election Campaign Act of 1971 (52 U.S.C. 30101(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 expenditure (as such term is defined in
section 325) which is not otherwise treated as a
contribution under clause (i) or clause (ii).''.
(b) Definitions.--Title III of such Act (52 U.S.C. 30101 et seq.)
is amended by adding at the end the following new section:
``SEC. 325. PAYMENTS FOR COORDINATED EXPENDITURES.
``(a) Coordinated Expenditures.--
``(1) In general.--For purposes of section 301(8)(A)(iii),
the term `coordinated expenditure' means--
``(A) any expenditure, or any payment for a covered
communication described in subsection (d), which is
made in cooperation, consultation, or concert with, or
at the request or suggestion of, a candidate, an
authorized committee of a candidate, a political
committee of a political party, or agents of the
candidate or committee, as defined in subsection (b);
or
``(B) any payment for any communication which
republishes, disseminates, or distributes, in whole or
in part, any video or broadcast or any written,
graphic, or other form of campaign material prepared by
the candidate or committee or by agents of the
candidate or committee (including any excerpt or use of
any video from any such broadcast or written, graphic,
or other form of campaign material).
``(2) Exception for payments for certain communications.--A
payment for a communication (including a covered communication
described in subsection (d)) shall not be treated as a
coordinated expenditure under this subsection if--
``(A) the communication appears 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) the communication constitutes a candidate
debate or forum conducted pursuant to regulations
adopted by the Commission pursuant to 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) Coordination Described.--
``(1) In general.--For purposes of this section, a payment
is made `in cooperation, consultation, or concert with, or at
the request or suggestion of,' a candidate, an authorized
committee of a candidate, a political committee of a political
party, or agents of the candidate or committee, if the payment,
or any communication for which the payment is made, is not made
entirely independently of the candidate, committee, or agents.
For purposes of the previous sentence, a payment or
communication not made entirely independently of the candidate
or committee includes any payment or communication made
pursuant to any general or particular understanding with, or
pursuant to any communication with, the candidate, committee,
or agents about the payment or communication.
``(2) No finding of coordination based solely on sharing of
information regarding legislative or policy position.--For
purposes of this section, a payment shall not be considered to
be made by a person in cooperation, consultation, or concert
with, or at the request or suggestion of, a candidate or
committee, solely on the grounds that the person or the
person's agent engaged in discussions with the candidate or
committee, or with any agent of the candidate or committee,
regarding that person's position on a legislative or policy
matter (including urging the candidate or committee to adopt
that person's position), so long as there is no communication
between the person and the candidate or committee, or any agent
of the candidate or committee, regarding the candidate's or
committee's campaign advertising, message, strategy, policy,
polling, allocation of resources, fundraising, or other
campaign activities.
``(3) No effect on party coordination standard.--Nothing in
this section shall be construed to affect the determination of
coordination between a candidate and a political committee of a
political party for purposes of section 315(d).
``(4) No safe harbor for use of firewall.--A person shall
be determined to have made a payment in cooperation,
consultation, or concert with, or at the request or suggestion
of, a candidate or committee, in accordance with this section
without regard to whether or not the person established and
used a firewall or similar procedures to restrict the sharing
of information between individuals who are employed by or who
are serving as agents for the person making the payment.
``(c) Payments by Coordinated Spenders for Covered
Communications.--
``(1) Payments made in cooperation, consultation, or
concert with candidates.--For purposes of subsection (a)(1)(A),
if the person who makes a payment for a covered communication,
as defined in subsection (d), is a coordinated spender under
paragraph (2) with respect to the candidate as described in
subsection (d)(1), the payment for the covered communication is
made in cooperation, consultation, or concert with the
candidate.
``(2) Coordinated spender defined.--For purposes of this
subsection, the term `coordinated spender' means, with respect
to a candidate or an authorized committee of a candidate, a
person (other than a political committee of a political party)
for which any of the following applies:
``(A) During the 4-year period ending on the date
on which the person makes the payment, the person was
directly or indirectly formed or established by or at
the request or suggestion of, or with the encouragement
of, the candidate (including an individual who later
becomes a candidate) or committee or agents of the
candidate or committee, including with the approval of
the candidate or committee or agents of the candidate
or committee.
``(B) The candidate or committee or any agent of
the candidate or committee solicits funds, appears at a
fundraising event, or engages in other fundraising
activity on the person's behalf during the election
cycle involved, including by providing the person with
names of potential donors or other lists to be used by
the person in engaging in fundraising activity,
regardless of whether the person pays fair market value
for the names or lists provided. For purposes of this
subparagraph, the term `election cycle' means, with
respect to an election for Federal office, the period
beginning on the day after the date of the most recent
general election for that office (or, if the general
election resulted in a runoff election, the date of the
runoff election) and ending on the date of the next
general election for that office (or, if the general
election resulted in a runoff election, the date of the
runoff election).
``(C) The person is established, directed, or
managed by the candidate or committee or by any person
who, during the 4-year period ending on the date on
which the person makes the payment, has been employed
or retained as a political, campaign media, or
fundraising adviser or consultant for the candidate or
committee or for any other entity directly or
indirectly controlled by the candidate or committee, or
has held a formal position with the candidate or
committee (including a position as an employee of the
office of the candidate at any time the candidate held
any Federal, State, or local public office during the
4-year period).
``(D) The person has retained the professional
services of any person who, during the 2-year period
ending on the date on which the person makes the
payment, has provided or is providing professional
services relating to the campaign to the candidate or
committee, without regard to whether the person
providing the professional services used a firewall.
For purposes of this subparagraph, the term
`professional services' includes any services in
support of the candidate's or committee's campaign
activities, including advertising, message, strategy,
policy, polling, allocation of resources, fundraising,
and campaign operations, but does not include
accounting or legal services.
``(E) The person is established, directed, or
managed by a member of the immediate family of the
candidate, or the person or any officer or agent of the
person has had more than incidental discussions about
the candidate's campaign with a member of the immediate
family of the candidate. For purposes of this
subparagraph, the term `immediate family' has the
meaning given such term in section 9004(e) of the
Internal Revenue Code of 1986.
``(d) Covered Communication Defined.--
``(1) In general.--For purposes of this section, the term
`covered communication' means, with respect to a candidate or
an authorized committee of a candidate, a public communication
(as defined in section 301(22)) which--
``(A) expressly advocates the election of the
candidate or the defeat of an opponent of the candidate
(or contains the functional equivalent of express
advocacy);
``(B) promotes or supports the election of the
candidate, or attacks or opposes the election of an
opponent of the candidate (regardless of whether the
communication expressly advocates the election or
defeat of a candidate or contains the functional
equivalent of express advocacy); or
``(C) refers to the candidate or an opponent of the
candidate but is not described in subparagraph (A) or
subparagraph (B), but only if the communication is
disseminated during the applicable election period.
``(2) Applicable election period.--In paragraph (1)(C), the
`applicable election period' with respect to a communication
means--
``(A) in the case of a communication which refers
to a candidate in a general, special, or runoff
election, the 120-day period which ends on the date of
the election; or
``(B) in the case of a communication which refers
to a candidate in a primary or preference election, or
convention or caucus of a political party that has
authority to nominate a candidate, the 60-day period
which ends on the date of the election or convention or
caucus.
``(3) Special rules for communications involving
congressional candidates.--For purposes of this subsection, a
public communication shall not be considered to be a covered
communication with respect to a candidate for election for an
office other than the office of President or Vice President
unless it is publicly disseminated or distributed in the
jurisdiction of the office the candidate is seeking.
``(e) Penalty.--
``(1) Determination of amount.--Any person who knowingly
and willfully commits a violation of this Act by making a
contribution which consists of a payment for a coordinated
expenditure shall be fined an amount equal to the greater of--
``(A) in the case of a person who makes a
contribution which consists of a payment for a
coordinated expenditure in an amount exceeding the
applicable contribution limit under this Act, 300
percent of the amount by which the amount of the
payment made by the person exceeds such applicable
contribution limit; or
``(B) in the case of a person who is prohibited
under this Act from making a contribution in any
amount, 300 percent of the amount of the payment made
by the person for the coordinated expenditure.
``(2) Joint and several liability.--Any director, manager,
or officer of a person who is subject to a penalty under
paragraph (1) shall be jointly and severally liable for any
amount of such penalty that is not paid by the person prior to
the expiration of the 1-year period which begins on the date
the Commission imposes the penalty or the 1-year period which
begins on the date of the final judgment following any judicial
review of the Commission's action, whichever is later.''.
(c) Effective Date.--
(1) Repeal of existing regulations on coordination.--
Effective upon the expiration of the 90-day period which begins
on the date of the enactment of this Act--
(A) the regulations on coordinated communications
adopted by the Federal Election Commission which are in
effect on the date of the enactment of this Act (as set
forth in 11 CFR Part 109, Subpart C, under the heading
``Coordination'') are repealed; and
(B) the Federal Election Commission shall
promulgate new regulations on coordinated
communications which reflect the amendments made by
this Act.
(2) Effective date.--The amendments made by this section
shall apply with respect to payments made on or after the
expiration of the 120-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 in
accordance with paragraph (1)(B) as of the expiration of such
period.
SEC. 3. CLARIFICATION OF BAN ON FUNDRAISING FOR SUPER PACS BY FEDERAL
CANDIDATES AND OFFICEHOLDERS.
(a) In General.--Section 323(e)(1) of the Federal Election Campaign
Act of 1971 (52 U.S.C. 30125(e)(1)) is amended--
(1) by striking ``or'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(C) solicit, receive, direct, or transfer funds
to or on behalf of any political committee which
accepts donations or contributions that do not comply
with the limitations, prohibitions, and reporting
requirements of this Act (or to or on behalf of any
account of a political committee which is established
for the purpose of accepting such donations or
contributions), or to or on behalf of any political
organization under section 527 of the Internal Revenue
Code of 1986 which accepts such donations or
contributions (other than a committee of a State or
local political party or a candidate for election for
State or local office).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to elections occurring after January 1, 2022.
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