[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2671 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 120
117th CONGRESS
1st Session
S. 2671
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
August 6 (legislative day, August 5), 2021
Mr. Schumer introduced the following bill; which was read the first
time
August 7, 2021
Read the second time and placed on the calendar
_______________________________________________________________________
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 2021'' or
the ``DISCLOSE Act of 2021''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN
ELECTIONS
Sec. 101. Clarification of prohibition on participation by foreign
nationals in election-related activities.
Sec. 102. Clarification of application of foreign money ban to certain
disbursements and activities.
Sec. 103. Audit and report on illicit foreign money in Federal
elections.
Sec. 104. Prohibition on contributions and donations by foreign
nationals in connection with ballot
initiatives and referenda.
Sec. 105. Disbursements and activities subject to foreign money ban.
Sec. 106. Prohibiting establishment of corporation to conceal election
contributions and donations by foreign
nationals.
TITLE II--REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS
Sec. 201. Reporting of campaign-related disbursements.
Sec. 202. Application of foreign money ban to disbursements for
campaign-related disbursements consisting
of covered transfers.
Sec. 203. Effective date.
TITLE III--OTHER ADMINISTRATIVE REFORMS
Sec. 301. Petition for certiorari.
Sec. 302. Judicial review of actions related to campaign finance laws.
TITLE I--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN
ELECTIONS
SEC. 101. CLARIFICATION OF PROHIBITION ON PARTICIPATION BY FOREIGN
NATIONALS IN ELECTION-RELATED ACTIVITIES.
(a) Clarification of Prohibition.--Section 319(a) of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30121(a)) 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) a foreign national to direct, dictate, control, or
directly or indirectly participate in the decision making
process of any person (including a corporation, labor
organization, political committee, or political organization)
with regard to such person's Federal or non-Federal election-
related activity, including any decision concerning the making
of contributions, donations, expenditures, or disbursements in
connection with an election for any Federal, State, or local
office or any decision concerning the administration of a
political committee.''.
(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, labor organization (as defined in section 316(b)), limited
liability corporation, or partnership during a year, the chief
executive officer of the corporation, labor organization, limited
liability corporation, or partnership (or, if the corporation, labor
organization, limited liability corporation, or partnership does not
have a chief executive officer, the highest ranking official of the
corporation, labor organization, limited liability corporation, or
partnership), shall file a certification with the Commission, under
penalty of perjury, that a foreign national did not direct, dictate,
control, or directly or indirectly participate in the decision making
process relating to such activity in violation of subsection (a)(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 and Other Persons.--
Section 319(b) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30121(b)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and by moving such
subparagraphs 2 ems to the right;
(2) by striking ``As used in this section, the term
`foreign national' means'' and inserting the following:
``Definitions.--For purposes of this section--
``(1) Foreign national.--The term'';
(3) by moving paragraphs (1) and (2) two ems to the right
and redesignating them as subparagraphs (A) and (B),
respectively; and
(4) by adding at the end the following new paragraph:
``(2) Contribution and donation.--For purposes of
paragraphs (1) and (2) of subsection (a), the term
`contribution or donation' includes any disbursement to a
political committee which accepts donations or contributions
that do not comply with any of 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), or to any other person for the purpose of
funding an expenditure, independent expenditure, or
electioneering communication (as defined in section
304(f)(3)).''.
(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.''.
SEC. 103. AUDIT AND REPORT ON ILLICIT FOREIGN MONEY IN FEDERAL
ELECTIONS.
(a) In General.--Title III of the Federal Election Campaign Act of
1971 (52 U.S.C. 30101 et seq.) is amended by inserting after section
319 the following new section:
``SEC. 319A. AUDIT AND REPORT ON DISBURSEMENTS BY FOREIGN NATIONALS.
``(a) Audit.--
``(1) In general.--The Commission shall conduct an audit
after each Federal election cycle to determine the incidence of
illicit foreign money in such Federal election cycle.
``(2) Procedures.--In carrying out paragraph (1), the
Commission shall conduct random audits of any disbursements
required to be reported under this Act, in accordance with
procedures established by the Commission.
``(b) Report.--Not later than 180 days after the end of each
Federal election cycle, the Commission shall submit to Congress a
report containing--
``(1) results of the audit required by subsection (a)(1);
``(2) an analysis of the extent to which illicit foreign
money was used to carry out disinformation and propaganda
campaigns focused on depressing turnout among rural communities
and the success or failure of these efforts, together with
recommendations to address these efforts in future elections;
``(3) an analysis of the extent to which illicit foreign
money was used to carry out disinformation and propaganda
campaigns focused on depressing turnout among African-American
and other minority communities and the success or failure of
these efforts, together with recommendations to address these
efforts in future elections;
``(4) an analysis of the extent to which illicit foreign
money was used to carry out disinformation and propaganda
campaigns focused on influencing military and veteran
communities and the success or failure of these efforts,
together with recommendations to address these efforts in
future elections; and
``(5) recommendations to address the presence of illicit
foreign money in elections, as appropriate.
``(c) Definitions.--As used in this section:
``(1) The term `Federal election cycle' means the period
which begins on the day after the date of a regularly scheduled
general election for Federal office and which ends on the date
of the first regularly scheduled general election for Federal
office held after such date.
``(2) The term `illicit foreign money' means any
disbursement by a foreign national (as defined in section
319(b)) prohibited under such section.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to the Federal election cycle that began during
November 2020, and each succeeding Federal election cycle.
SEC. 104. PROHIBITION ON CONTRIBUTIONS AND DONATIONS BY FOREIGN
NATIONALS IN CONNECTION WITH BALLOT INITIATIVES AND
REFERENDA.
(a) In General.--Section 319(b) of the Federal Election Campaign
Act of 1971 (52 U.S.C. 30121(b)), as amended by section 102(a), is
amended by adding at the end the following new paragraph:
``(3) Federal, state, or local election.--The term
`Federal, State, or local election' includes a State or local
ballot initiative or referendum.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to elections held in 2022 or any succeeding year.
SEC. 105. DISBURSEMENTS AND ACTIVITIES SUBJECT TO FOREIGN MONEY BAN.
(a) Disbursements Described.--Section 319(a)(1) of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)), as amended by
section 101, is amended--
(1) by striking ``or'' at the end of subparagraph (B); and
(2) by striking subparagraph (C) and inserting the
following:
``(C) an expenditure;
``(D) an independent expenditure;
``(E) a disbursement for an electioneering
communication (within the meaning of section
304(f)(3));
``(F) a disbursement for a communication which is
placed or promoted for a fee on a website, web
application, or digital application that refers to a
clearly identified candidate for election for Federal
office and is disseminated within 60 days before a
general, special or runoff election for the office
sought by the candidate or 30 days before a primary or
preference election, or a convention or caucus of a
political party that has authority to nominate a
candidate for the office sought by the candidate;
``(G) a disbursement for a broadcast, cable or
satellite communication, or for a communication which
is placed or promoted for a fee on a website, web
application, or digital application, that promotes,
supports, attacks or opposes the election of a clearly
identified candidate for Federal, State, or local
office (regardless of whether the communication
contains express advocacy or the functional equivalent
of express advocacy);
``(H) a disbursement for a broadcast, cable, or
satellite communication, or for any communication which
is placed or promoted for a fee on an online platform,
that discusses a national legislative issue of public
importance in a year in which a regularly scheduled
general election for Federal office is held, but only
if the disbursement is made by a covered foreign
national;
``(I) a disbursement by a covered foreign national
to compensate any person for internet activity that
promotes, supports, attacks or opposes the election of
a clearly identified candidate for Federal, State, or
local office (regardless of whether the activity
contains express advocacy or the functional equivalent
of express advocacy); or
``(J) a disbursement for a Federal judicial
nomination communication (as defined in section
324(d)(3));''.
(b) Online Platform.--Section 319(b) of such Act (51 U.S.C.
30121(b)), as amended by sections 102(a) and 104, is amended by adding
at the end the following new paragraphs:
``(4) Online platform.--
``(A) In general.--Subject to subparagraph (B), the
term `online platform' means any public-facing website,
web application, or digital application (including a
social network, ad network, or search engine) which--
``(i)(I) sells qualified political
advertisements; and
``(II) has 50,000,000 or more unique
monthly United States visitors or users for a
majority of months during the preceding 12
months; or
``(ii) is a third-party advertising vendor
that has 50,000,000 or more unique monthly
United States visitors in the aggregate on any
advertisement space that it has sold or bought
for a majority of months during the preceding
12 months, as measured by an independent
digital ratings service accredited by the Media
Ratings Council (or its successor).
``(B) Exemption.--Such term shall not include any
online platform that is a distribution facility of any
broadcasting station or newspaper, magazine, blog,
publication, or periodical.
``(C) Qualified political advertisement.--For
purposes of this paragraph, the term `qualified
political advertisement' means any advertisement
(including search engine marketing, display
advertisements, video advertisements, native
advertisements, and sponsorships) that--
``(i) is made by or on behalf of a
candidate; or
``(ii) communicates a message relating to
any political matter of national importance,
including--
``(I) a candidate;
``(II) any election to Federal
office; or
``(III) a national legislative
issue of public importance.
``(D) Third-party advertising vendor defined.--For
purposes of this paragraph, the term `third-party
advertising vendor' includes, but is not limited to,
any third-party advertising vendor network, advertising
agency, advertiser, or third-party advertisement
serving company that buys and sells advertisement space
on behalf of unaffiliated third-party websites, search
engines, digital applications, or social media sites.
``(5) Covered foreign national.--
``(A) In general.--The term `covered foreign
national' means--
``(i) a foreign principal (as defined in
section 1(b) of the Foreign Agents Registration
Act of 1938 (22 U.S.C. 611(b)) that is a
government of a foreign country or a foreign
political party;
``(ii) any person who acts as an agent,
representative, employee, or servant, or any
person who acts in any other capacity at the
order, request, or under the direction or
control, of a foreign principal described in
clause (i) or of a person any of whose
activities are directly or indirectly
supervised, directed, controlled, financed, or
subsidized in whole or in major part by a
foreign principal described in clause (i); or
``(iii) any person included in the list of
specially designated nationals and blocked
persons maintained by the Office of Foreign
Assets Control of the Department of the
Treasury pursuant to authorities relating to
the imposition of sanctions relating to the
conduct of a foreign principal described in
clause (i).
``(B) Clarification regarding application to
citizens of the united states.--In the case of a
citizen of the United States, clause (ii) of
subparagraph (A) applies only to the extent that the
person involved acts within the scope of that person's
status as the agent of a foreign principal described
clause (i) of subparagraph (A).''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to disbursements made on or after the date of the
enactment of this Act.
SEC. 106. PROHIBITING ESTABLISHMENT OF CORPORATION TO CONCEAL ELECTION
CONTRIBUTIONS AND DONATIONS BY FOREIGN NATIONALS.
(a) Prohibition.--Chapter 29 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 612. Establishment of corporation to conceal election
contributions and donations by foreign nationals
``(a) Offense.--It shall be unlawful for an owner, officer,
attorney, or incorporation agent of a corporation, company, or other
entity to establish or use the corporation, company, or other entity
with the intent to conceal an activity of a foreign national (as
defined in section 319 of the Federal Election Campaign Act of 1971 (52
U.S.C. 30121)) prohibited under such section 319.
``(b) Penalty.--Any person who violates subsection (a) shall be
imprisoned for not more than 5 years, fined under this title, or
both.''.
(b) Table of Sections.--The table of sections for chapter 29 of
title 18, United States Code, is amended by inserting after the item
relating to section 611 the following:
``612. Establishment of corporation to conceal election contributions
and donations by foreign nationals.''.
TITLE II--REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS
SEC. 201. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.
(a) 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 (or, if
earlier, the period beginning one year before the first
such disclosure date) 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)(i) 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 (or, if earlier, the period
beginning one year before the disclosure date)
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 (or, if
earlier, the period beginning one year before the
disclosure date) and ending on the disclosure date.
``(ii) In any calendar year after 2022, section
315(c)(1)(B) shall apply to the amount described in
clause (i) in the same manner as such section applies
to the limitations established under subsections
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section,
except that for purposes of applying such section to
the amounts described in subsection (b), the `base
period' shall be calendar year 2022.
``(F)(i) 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 (or, if earlier, the period
beginning one year before the disclosure date)
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 (or,
if earlier, the period beginning one year before the
disclosure date) and ending on the disclosure date.
``(ii) In any calendar year after 2022, section
315(c)(1)(B) shall apply to the amount described in
clause (i) in the same manner as such section applies
to the limitations established under subsections
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section,
except that for purposes of applying such section to
the amounts described in subsection (b), the `base
period' shall be calendar year 2022.
``(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. For purposes of this
subparagraph, amounts received by a covered
organization as remittances from an employee to the
employee's collective bargaining representative shall
be treated as amounts received in commercial
transactions in the ordinary course of the business
conducted by 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) Threat of harassment or reprisal.--The
requirement to include any information relating to the
name or address of any person (other than a candidate)
in a statement submitted under paragraph (1) shall not
apply if the inclusion of the information would subject
the person to serious threats, harassment, or
reprisals.
``(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, except that in the case of a campaign-
related disbursement for a Federal judicial nomination
communication, such term means any calendar year in
which the campaign-related disbursement is made.
``(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 which expressly
advocates the election or defeat of a clearly
identified candidate for election for Federal office,
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 for election for Federal
office.
``(B) An applicable public communication.
``(C) An electioneering communication, as defined
in section 304(f)(3).
``(D) A Federal judicial nomination communication.
``(E) A covered transfer.
``(2) Applicable public communications.--
``(A) In general.--The term `applicable public
communication' means any public communication that
refers to a clearly identified candidate for election
for Federal office and which promotes or supports the
election of a candidate for that office, or attacks or
opposes the election of a candidate for that office,
without regard to whether the communication expressly
advocates a vote for or against a candidate for that
office.
``(B) Exception.--Such term shall not include any
news story, commentary, or editorial distributed
through the facilities of any broadcasting station or
any print, online, or digital newspaper, magazine,
publication, or periodical, unless such facilities are
owned or controlled by any political party, political
committee, or candidate.
``(3) Federal judicial nomination communication.--
``(A) In general.--The term `Federal judicial
nomination communication' means any communication--
``(i) that is by means of any broadcast,
cable, or satellite, paid internet, or paid
digital communication, paid promotion,
newspaper, magazine, outdoor advertising
facility, mass mailing, telephone bank,
telephone messaging effort of more than 500
substantially similar calls or electronic
messages within a 30-day period, or any other
form of general public political advertising;
and
``(ii) which promotes, supports, attacks,
or opposes the nomination or Senate
confirmation of an individual as a Federal
judge or justice.
``(B) Exception.--Such term shall not include any
news story, commentary, or editorial distributed
through the facilities of any broadcasting station or
any print, online, or digital newspaper, magazine,
publication, or periodical, unless such facilities are
owned or controlled by any political party, political
committee, or candidate.
``(4) Intent not required.--A disbursement for an item
described in subparagraph (A), (B), (C), (D), or (E) 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) Special rule regarding transfers among affiliates.--
``(A) Special rule.--A transfer of an amount by one
covered organization to another covered organization
which is treated as a transfer between affiliates under
subparagraph (C) shall be considered a covered transfer
by 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.
``(B) Determination of amount of certain payments
among affiliates.--In determining the amount of a
transfer between affiliates for purposes of
subparagraph (A), 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.
``(C) 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.
``(D) Determination of affiliate status.--For
purposes of subparagraph (C), 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.
``(E) 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.
``(g) No Effect on Other Reporting Requirements.--Nothing in this
section shall be construed to waive or otherwise affect any other
requirement of this Act which relates to the reporting of campaign-
related disbursements.''.
(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''.
(b) Coordination With FinCEN.--
(1) 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 amended by
this section.
(2) 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. APPLICATION OF FOREIGN MONEY BAN TO DISBURSEMENTS FOR
CAMPAIGN-RELATED DISBURSEMENTS CONSISTING OF COVERED
TRANSFERS.
Section 319(b)(2) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30121(a)(1)(A)), as amended by section 102, is amended--
(1) by striking ``includes any disbursement'' and inserting
``includes--
``(A) any disbursement'';
(2) by striking the period at the end and inserting ``;
and'', and
(3) by adding at the end the following new subparagraph:
``(B) any disbursement, other than a disbursement
described in section 324(a)(3)(A), to another person
who made a campaign-related disbursement consisting of
a covered transfer (as described in section 324) during
the 2-year period ending on the date of the
disbursement.''.
SEC. 203. EFFECTIVE DATE.
The amendments made by this title shall apply with respect to
disbursements made on or after January 1, 2022, and shall take effect
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
TITLE III--OTHER ADMINISTRATIVE REFORMS
SEC. 301. PETITION FOR CERTIORARI.
Section 307(a)(6) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30107(a)(6)) is amended by inserting ``(including a proceeding
before the Supreme Court on certiorari)'' after ``appeal''.
SEC. 302. JUDICIAL REVIEW OF ACTIONS RELATED TO CAMPAIGN FINANCE LAWS.
(a) In General.--Title IV of the Federal Election Campaign Act of
1971 (52 U.S.C. 30141 et seq.) is amended by inserting after section
406 the following new section:
``SEC. 407. JUDICIAL REVIEW.
``(a) In General.--If any action is brought for declaratory or
injunctive relief to challenge, whether facially or as-applied, the
constitutionality or lawfulness of any provision of this Act or of
chapter 95 or 96 of the Internal Revenue Code of 1986, or is brought to
with respect to any action of the Commission under chapter 95 or 96 of
the Internal Revenue Code of 1986, 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
the decision of the district court may be taken to the Court of
Appeals for the District of Columbia Circuit.
``(2) In the case of an action relating to declaratory or
injunctive relief to challenge the constitutionality of a
provision, the party filing the action shall concurrently
deliver a copy of the complaint to the Clerk of the House of
Representatives and the Secretary of the Senate.
``(3) It shall be the duty of the United States District
Court for the District of Columbia and the Court of Appeals for
the District of Columbia Circuit to advance on the docket and
to expedite to the greatest possible extent the disposition of
the action and appeal.
``(b) Clarifying Scope of Jurisdiction.--If an action at the time
of its commencement is not subject to subsection (a), but an amendment,
counterclaim, cross-claim, affirmative defense, or any other pleading
or motion is filed challenging, whether facially or as-applied, the
constitutionality or lawfulness of this Act or of chapter 95 or 96 of
the Internal Revenue Code of 1986, or is brought to with respect to any
action of the Commission under chapter 95 or 96 of the Internal Revenue
Code of 1986, the district court shall transfer the action to the
District Court for the District of Columbia, and the action shall
thereafter be conducted pursuant to subsection (a).
``(c) Intervention by Members of Congress.--In any action described
in subsection (a) relating to declaratory or injunctive relief to
challenge the constitutionality of a provision, any Member of the House
of Representatives (including a Delegate or Resident Commissioner to
the Congress) or Senate 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. 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 interveners taking similar
positions to file joint papers or to be represented by a single
attorney at oral argument.
``(d) Challenge by Members of Congress.--Any Member of Congress may
bring an action, subject to the special rules described in subsection
(a), for declaratory or injunctive relief to challenge, whether
facially or as-applied, the constitutionality of any provision of this
Act or chapter 95 or 96 of the Internal Revenue Code of 1986.''.
(b) Conforming Amendments.--
(1) Section 9011 of the Internal Revenue Code of 1986 is
amended to read as follows:
``SEC. 9011. JUDICIAL REVIEW.
``For provisions relating to judicial review of certifications,
determinations, and actions by the Commission under this chapter, see
section 407 of the Federal Election Campaign Act of 1971.''.
(2) Section 9041 of the Internal Revenue Code of 1986 is
amended to read as follows:
``SEC. 9041. JUDICIAL REVIEW.
``For provisions relating to judicial review of actions by the
Commission under this chapter, see section 407 of the Federal Election
Campaign Act of 1971.''.
(3) Section 310 of the Federal Election Campaign Act of
1971 (52 U.S.C. 30110) is repealed.
(4) Section 403 of the Bipartisan Campaign Reform Act of
2002 (52 U.S.C. 30110 note) is repealed.
(c) Effective Date.--The amendments made by this section shall
apply to actions brought on or after January 1, 2021.
TITLE IV--SEVERABILITY
SEC. 401. 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.
Calendar No. 120
117th CONGRESS
1st Session
S. 2671
_______________________________________________________________________
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.
_______________________________________________________________________
August 7, 2021
Read the second time and placed on the calendar