113 S791 IS: Follow the Money Act of 2013
U.S. Senate
2013-04-23
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited
as the Follow the Money Act of
2013
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title,
etc.
TITLE I—Comprehensive reporting of independent Federal
election-related expenditures and contributions
Sec. 101. Reporting of independent Federal election-related
activity expenditures and covered contributions.
Sec. 102. Increase in reporting thresholds for candidate only
political committees.
Sec. 103. Instant disclosure system for
contributions.
Sec. 104. Modification of rules relating to disclaimer
statements required for certain communications.
Sec. 105. Statements disavowing communications.
Sec. 106. Filing by Senate candidates with
commission.
TITLE II—Regulation of independent Federal election-related
activity by tax-exempt entities
Sec. 201. Excise tax on certain tax-exempt organizations
failing to report election-related expenditures.
Sec. 202. Loss of tax-exempt status for certain organizations
failing to register or report election-related expenditures and
contributions.
Sec. 203. Section 527 political organizations required to file
with FEC.
Sec. 204. Application of whistleblower protections.
TITLE III—Other provisions
Sec. 301. Joint regulatory authority and advisory
opinions.
Sec. 302. Denial of business expense deductions for certain
businesses failing to report donations and independent Federal election-related
activity expenditures.
Sec. 303. Prohibition on discrimination against
donors.
Sec. 304. Severability.
<enum>I</enum><header>Comprehensive
reporting of independent Federal election-related expenditures and
contributions</header>
<section id="id8455E37987034F8A8B35C337D37346E0"><enum>101.</enum><header>Reporting of
independent Federal election-related activity expenditures and covered
contributions</header>
<subsection id="id9D02DEC14E8F49C684B5CC10906768A6"><enum>(a)</enum><header>Definitions</header><text>Section
7701(a) of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="id19BCBB1C73FE4AAE8E6922F6F8502782" style="OLC">
<paragraph commented="no" id="id744BDED3EFEA40AA9FA1F94FFCDDCEB3"><enum>(51)</enum><header>Independent
Federal election-related activity expenditure</header>
<subparagraph commented="no" id="idC93336117A184B40B07FBC3EDE8FE4C8"><enum>(A)</enum><header>In
general</header><text>The term <term>independent Federal election-related
activity expenditure</term> means—</text>
<clause commented="no" id="id917A0E9DC3B44372A2FC43448E324B17"><enum>(i)</enum><text>any expenditure
that—</text>
<subclause commented="no" id="id0E717AC6C88845028B7A61F03231D91D"><enum>(I)</enum><text>considering the
facts and circumstances, a reasonable person would conclude is made solely or
substantially for the purpose of influencing or attempting to influence the
nomination or election of any individual to any Federal office (including an
expenditure for a public communication that promotes, attacks, supports, or
opposes a candidate); and</text>
</subclause><subclause commented="no" id="idE47195D8858242DB9CAA8CFDCE1628DC"><enum>(II)</enum><text>that is not made
in concert or cooperation with, or at the suggestion of a candidate, the
candidate's authorized committee, or a political party committee; and</text>
</subclause></clause><clause commented="no" id="id5A0AE4C906B94C68B5FB924C787F77EA"><enum>(ii)</enum><text>any payment made
to another person if the transferor knows or has reason to know that such
payment will be used to fund an expenditure described in clause (i).</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="id148412F455B54044B74D8EA8125DBF6B"><enum>(B)</enum><header>Regulations and
advisory opinions</header><text>For authority with respect joint regulations
and advisory opinions, see section 301 of the <short-title>Follow the Money Act of 2013</short-title>.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id9675E725490E4D6883E92FED948B2E2C"><enum>(C)</enum><header>Other
terms</header><text>For purposes of this paragraph, the terms
<term>candidate</term>, <term>Federal office</term>, <term>election</term>, and
<term>public communication</term> have the meaning given such terms under
section 301 of the Federal Election Campaign Act of 1971.</text>
</subparagraph></paragraph><paragraph id="idB7687EA493BC401EA2B245843C251178"><enum>(52)</enum><header>Covered
contribution</header>
<subparagraph id="id603E6935FB51419C8AE23F7A00A1CDC4"><enum>(A)</enum><header>In
general</header><text>The term <term>covered contribution</term> means anything
of value received by an independent political actor (as defined in section
351(1) of the Federal Election Campaign Act of 1971) which can be used by such
person to make an independent Federal election-related activity
expenditure.</text>
</subparagraph><subparagraph commented="no" id="id5DD489237959416CB212FB709F7D0F69"><enum>(B)</enum><header>Exceptions</header><text>A
receipt from another person shall not be taken into account under subparagraph
(A)—</text>
<clause commented="no" id="idF6000604CCC7418AB9EC37762AB81B68"><enum>(i)</enum><text>if such receipt
occurred in a commercial transaction in the ordinary course of business;</text>
</clause><clause commented="no" id="id1652D2281A144DD59524FE253E3BC957"><enum>(ii)</enum><text>to the extent of
the fair market value of any goods or services provided by the organization to
such person in consideration for such amount; or</text>
</clause><clause commented="no" id="idF5A988E3B10449E798CD69C62C6E027A"><enum>(iii)</enum><text>if such receipt
was derived from investments made by the independent political actor (as so
defined).</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="id07EAA13ECDA64A59B2ED8F73535958D0"><enum>(C)</enum><header>Regulations and
advisory opinions</header><text>For authority with respect joint regulations
and advisory opinions, see section 301 of the <short-title>Follow the Money Act of
2013</short-title>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD630933B36AE48B6B526B8CE56147FB9"><enum>(b)</enum><header>Registration
and reporting</header><text>Title III of the Federal Election Campaign Act of
1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/431">2 U.S.C. 431</external-xref>) is amended—</text>
<paragraph id="id33D1ABE10BE847729ACFCE80BBCD1D95"><enum>(1)</enum><text>by inserting
before section 301 the following:</text>
<quoted-block display-inline="no-display-inline" id="id0C3136813E964251B80215A773163768" style="OLC">
<subtitle id="id6DE7D4CE8ADB4DF2831FEAA06DE0844F"><enum>A</enum><header>Funds provided to
candidates</header>
</subtitle><after-quoted-block>,</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="idBA2326891BF64EF5912EEC6AF82C5E9E"><enum>(2)</enum><text>by adding at the
end the following new subtitle:</text>
<quoted-block display-inline="no-display-inline" id="id54717FCC91FE4667B6A1EDDCCC3C3D7E" style="OLC">
<subtitle id="id62791C7D3336490A95C5A990FAC92E65"><enum>B</enum><header>Disclosure of
other election-related expenditures and receipts</header>
<section id="idF728C955A53F450FAB2691DE04DC0852"><enum>351.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="id60D1126350F548ECBEB22DD367038691"><enum>(1)</enum><header>Independent
political actor</header>
<subparagraph id="id87A5CB3FBD9042EC943A5D19FD767B7B"><enum>(A)</enum><header>In
general</header><text>The term <term>independent political actor</term> means,
with respect to any Federal election cycle, any person that—</text>
<clause id="id949A3FC9A761461DB9ED82F55BBBA66A"><enum>(i)</enum><text>makes independent
Federal election-related activity expenditures of $10,000 or more during such
Federal election cycle;</text>
</clause><clause id="idEDBD33730B9E4BCFB293177889AE1052"><enum>(ii)</enum><text>receives
contributions which—</text>
<subclause id="idDFAA24558BB248BB8AF4801EA0F42F99"><enum>(I)</enum><text>are intended by
the transferor and understood by the recipient to be substantially used for
making Independent Federal election-related activity expenditures, and</text>
</subclause><subclause id="idBAF88AB9A7D342E0A1A162DA0E6B2354"><enum>(II)</enum><text>aggregate
$10,000 or more during such Federal election cycle; or</text>
</subclause></clause><clause id="id07B17B0028C844B88FE339DB6486E579"><enum>(iii)</enum><text>makes qualified
solicitations to 500 or more persons during such Federal election cycle.</text>
</clause><continuation-text continuation-text-level="subparagraph">For
purposes of clause (iii), the term <term>qualified solicitation</term> means
any solicitation which discloses to contributors that a portion of funds
received in response to the solicitation will be utilized for independent
Federal election-related activity expenditures.</continuation-text></subparagraph><subparagraph id="idA6EBC8B0BE3A4F169D98E086AD3ED404"><enum>(B)</enum><header>Exclusion of
candidate-only political committees</header><text>The term <term>independent
political actor</term> shall not include any political committee that
exclusively makes contributions (whether direct, in-kind, or via coordinated
communications) to candidates.</text>
</subparagraph></paragraph><paragraph id="idA8387E5AE78C49D3942F25315874D496"><enum>(2)</enum><header>Federal
election cycle</header><text>The term <term>Federal election cycle</term> means
the period beginning on January 1 of any odd numbered year and ending on
December 31 of the following year.</text>
</paragraph><paragraph commented="no" id="idF3BC0742352744CEBC71A20BF2B882EF"><enum>(3)</enum><header>Independent
Federal election-related activity expenditure</header><text>The term
<term>independent Federal election-related activity expenditure</term> has the
meaning given such term under section 7701(51) of the Internal Revenue Code of
1986.</text>
</paragraph><paragraph id="idE8EDFBD2358C42B29092BAA40D18A349"><enum>(4)</enum><header>Covered
contribution</header><text>The term <term>covered contribution</term> has the
meaning given such term under section 7701(52) of the Internal Revenue Code of
1986.</text>
</paragraph></section><section id="id8E091E6C436D4440B468DA0B19AE72C6"><enum>352.</enum><header>Organization
of independent political actors</header>
<subsection id="id05CC8DA06959497681E1CC24F1D2220E"><enum>(a)</enum><header>Personnel</header>
<paragraph id="idAC77C0DDF1CC4EEB9F8B4B18CF058B8F"><enum>(1)</enum><header>In
general</header><text>Each independent political actor shall designate—</text>
<subparagraph id="idF82D76ACE94C4B77BC1F8667234FEBA2"><enum>(A)</enum><text>a treasurer;
and</text>
</subparagraph><subparagraph id="id1ADA0E0DB0A3425C9B90C5255DD1207B"><enum>(B)</enum><text>a responsible
individual.</text>
</subparagraph></paragraph><paragraph id="id62EE799BA6FF456CB3FF89D0C2116EF4"><enum>(2)</enum><header>Treasurer</header><text>As
provided by the Commission in regulations—</text>
<subparagraph id="id35BD8DEA907D48BFBE57A866BF4627C9"><enum>(A)</enum><text>the treasurer of
an independent political actor shall have similar duties and responsibilities
of the treasurer of a political committee under subsections (b), (c), and (d)
of section 302; and</text>
</subparagraph><subparagraph id="id7619283BB6AD487783671D6DC0A2F689"><enum>(B)</enum><text>rules similar to
the rules of section 302(i) shall apply.</text>
</subparagraph></paragraph><paragraph id="id9F30313F2BDD443D89FB75D78C6486E9"><enum>(3)</enum><header>Joint and
several liability</header><text>The treasurer and responsible individual shall
be jointly and severally liable with the independent political actor for any
acts or omissions to which this Act applies.</text>
</paragraph></subsection><subsection id="id9E1B3BBAB5774AC4A211FB5C4783DE30"><enum>(b)</enum><header>Organization of
accounts of independent political actors</header>
<paragraph id="idAE71CB2F2ED84E7B92705253BCB1AAE0"><enum>(1)</enum><header>Safe harbor
account</header><text>Each independent political actor may elect to have a
segregated safe harbor account with respect to each Federal election cycle
consisting of so much of the covered contributions (including dues) received
from a person during the Federal election cycle as does not exceed the lesser
of—</text>
<subparagraph id="id80744DD1994E4D18AF23CA31CC690766"><enum>(A)</enum><text>$1,000; or</text>
</subparagraph><subparagraph id="id3ED4D2C7D0324F47AA9CF3975E37B8C6"><enum>(B)</enum><text>the amount of
covered contributions (including dues) received from such person.</text>
</subparagraph></paragraph><paragraph id="idBBBD8C18EADF4AB3B61D488165158645"><enum>(2)</enum><header>Supplemental
contributions account</header><text>Each independent political actor may elect
to have a segregated supplemental contribution account consisting of the dues
and other covered contributions that—</text>
<subparagraph id="id1F8DCCAACCF543F2ABBF80D43A88F207"><enum>(A)</enum><text>are received in
that account; and</text>
</subparagraph><subparagraph id="idE7F68B11650145E581E6236126BBDE11"><enum>(B)</enum><text>are to be used
only for the purpose of making independent Federal election-related activity
expenditures.</text>
</subparagraph></paragraph></subsection></section><section id="id91C80566FDEB416E8D0752B7133A8E8C"><enum>353.</enum><header>Registration</header>
<subsection id="id41C11207F591472CA418928044DE20B7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Every person who is
an independent political actor with respect to a Federal election cycle shall
file a registration statement with the Commission not later than 10 days after
such person becomes an independent political actor within the meaning of
section 351(1).</text>
</subsection><subsection id="id2FE36345C1774EC194418DDFA13DCEC3"><enum>(b)</enum><header>Contents of
registration statement</header><text>The registration statement shall include
the following:</text>
<paragraph id="idF0E442BEE3F241249E1D979E403B7499"><enum>(1)</enum><header>Registrant
information</header><text>The name and address of the independent political
actor, the treasurer of the independent political actor, the responsible
individual with respect to the independent political actor, and such other
information as the Commission may require.</text>
</paragraph><paragraph id="id5F1F4FB032304F8A9512B97E16040B6A"><enum>(2)</enum><header>Method for
reporting contributions</header><text>An election with respect to which of the
following methods the independent political actor elects to use for reporting
covered contributions received during the federal election cycle:</text>
<subparagraph id="id5487FC209AA8465AADA13F9833C733CB"><enum>(A)</enum><header>All
receipts</header><text>A method under which the independent political actor
elects to report all covered contributions received during the Federal election
cycle.</text>
</subparagraph><subparagraph id="idB7C763BEBCE24A68AF24AEE8D2B9A90E"><enum>(B)</enum><header>Use of safe
harbor contribution account</header><text>A method under which the independent
political actor elects to make independent Federal election-related activity
expenditures only from amounts allocated to the safe harbor account of the
independent political actor.</text>
</subparagraph><subparagraph id="id386D1E15E5C641C88B9AFB26D5834611"><enum>(C)</enum><header>Use of
supplemental contribution accounts</header><text>A method under which the
independent political actor—</text>
<clause id="idDB698A8FC1BF4AEDB2CF529C56EB3907"><enum>(i)</enum><text>elects to make
independent Federal election-related expenditures only from amounts allocated
to the supplemental contributions account of such independent political actor;
and</text>
</clause><clause id="id389F97597EBD4756B73A29E97FB18407"><enum>(ii)</enum><text>reports all
covered contributions made to the supplemental contribution account of such
independent political actor.</text>
</clause></subparagraph><subparagraph id="idD1347C07493048728653859D4639D21C"><enum>(D)</enum><header>Use of safe
harbor and supplemental contribution accounts</header><text>A method under
which the independent political actor—</text>
<clause id="id751F85DB3D854C24852D5DFD84722BB1"><enum>(i)</enum><text>elects make
independent Federal election-related expenditures only from amounts allocated
to the safe harbor and supplemental contributions account of such independent
political actor; and</text>
</clause><clause id="idA436B7D5E97E4C1F9CAD4721993166AC"><enum>(ii)</enum><text>reports all
covered contributions made to the supplemental contribution account of such
independent political actor.</text>
</clause></subparagraph><subparagraph id="idD53984183BE642F683DA5FFE235BEDFA"><enum>(E)</enum><header>Alternative
allocation plan</header><text>A method under which the independent political
actor elects to make independent Federal election-related expenditures and
reports covered contributions under an alternative allocation plan approved by
the Commission.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">An
election under this subsection shall apply to a Federal election cycle and
shall be irrevocable for such Federal election cycle.</continuation-text></paragraph></subsection><subsection id="id3C0D174ED17140FBA6037E50B00A063A"><enum>(c)</enum><header>Registration
number</header><text>The Commission shall designate a registration number for
each independent political actor registered under this subsection.</text>
</subsection><subsection id="idA1AA2C8F499D4FE794EE1399BA95A663"><enum>(d)</enum><header>Amendments</header><text>Any
change in information previously submitted in a registration statement of an
independent political actor shall be reported not later than 10 days after the
date of the change.</text>
</subsection></section><section id="idADED005BEFBB421DAD8FDFFBBA6DD441"><enum>354.</enum><header>Reporting by
independent political actors</header>
<subsection id="id6A66CB0B8A9C4282A749D0202CACA8B0"><enum>(a)</enum><header>Requirement To
file</header>
<paragraph id="id0CF5BED053E24D5D8973AC401FB1887D"><enum>(1)</enum><header>In
general</header><text>Every treasurer of an independent political actor shall
file a statement with the Commission containing the information described in
subsection (b).</text>
</paragraph><paragraph id="id8EA01358C7BE4D4F8A893185E0290527"><enum>(2)</enum><header>Timing of
reporting</header>
<subparagraph id="id161A6D07DDB047ABA33EE4996E177F48"><enum>(A)</enum><header>In
general</header><text>The statement required to be made under paragraph (1)
shall be filed with the Commission at the times such statement would be
required to be filed if such person were an authorized political committee of a
candidate.</text>
</subparagraph><subparagraph id="id8792772AE272434682782F59A7AB1814"><enum>(B)</enum><header>Covered
contributions</header>
<clause id="id9DEE71CB4CE94072A5656891AD940D86"><enum>(i)</enum><header>In
general</header><text>On and after the date the Commission establishes the
instant disclosure system described in section 103(a) of the
<short-title>Follow the Money Act of 2013</short-title>,
each treasurer of an independent political actor which accepts a covered
contribution shall file, not later than the time provided under clause (ii), a
statement with the Commission containing the information described in clause
(iii).</text>
</clause><clause id="idC84B7AAA9FEB443AA9F9786B8362BDEA"><enum>(ii)</enum><header>Timing of
reporting</header><text>The statement required to be made under clause (i)
shall be filed with the Commission—</text>
<subclause commented="no" id="id5DA6E7789A9348D380FD44B3724FCA4D"><enum>(I)</enum><text>in the case of a
covered contribution made by check, before the date on which such check has
been cashed or deposited into an account of the independent political
actor;</text>
</subclause><subclause commented="no" id="idAB32B904C70A4C76A73DCBDBF67BDE81"><enum>(II)</enum><text>in the case of a
covered contribution made by credit card or debit card, within 48 hours of the
receipt of such contribution; and</text>
</subclause><subclause commented="no" id="idD95892A523E14A01A951E81D5DADB80E"><enum>(III)</enum><text>in any other
case, within 10 days of the receipt of such contribution.</text>
</subclause></clause><clause id="id752087B3EB654D2BAF97DFBA95F7738C"><enum>(iii)</enum><header>Contents of
statement</header><text>Each statement required to be filed under this clause
shall contain the information required under subsection (b)(2).</text>
</clause></subparagraph></paragraph></subsection><subsection id="idE5430F39CAE54F62AD4913E88C245F95"><enum>(b)</enum><header>Contents of
statement</header><text>Each statement required to be filed under this
subsection shall contain the following:</text>
<paragraph id="id9733731460184C038844EADA1F3B3E32"><enum>(1)</enum><header>independent
Federal election-related activity expenditures</header><text>With respect to
each independent Federal election-related activity expenditure made by the
person—</text>
<subparagraph id="id5489DBDAAF1C41F28418C328F25D6910"><enum>(A)</enum><text>The date and
amount of such expenditure.</text>
</subparagraph><subparagraph id="id10FBD9590EDF45519819BA7FB395C8CA"><enum>(B)</enum><text>The name and
address of the person to whom such expenditure is made.</text>
</subparagraph><subparagraph id="id5CA2DAA44894415690620248844CA174"><enum>(C)</enum><text>The purpose of
the expenditure.</text>
</subparagraph><subparagraph id="idCC92E54BF9004C44829D5F8A27316B55"><enum>(D)</enum><text>Whether such
expenditure is in support of, or in opposition to, a candidate, as well as the
name and office sought by such candidate.</text>
</subparagraph><subparagraph id="id4642A228DD0F49E781CD84241BDFAD11"><enum>(E)</enum><text>Whether the
source of any Federal-related activity expenditures was from—</text>
<clause id="idB4DA9BF8BF684F8AA46D75C044E0B0F9"><enum>(i)</enum><text>the safe harbor
account of the independent political actor,</text>
</clause><clause id="id45587DD9DB0C40A5A9C2563DA79F460A"><enum>(ii)</enum><text>a supplemental
contributions account of the independent political actor, or</text>
</clause><clause id="idDD3C4BECBCE1480A8F3B1460D0088AE6"><enum>(iii)</enum><text>another
source.</text>
</clause></subparagraph></paragraph><paragraph id="idA9EE2F6886F5409981DC454A13A8B1A7"><enum>(2)</enum><header>Covered
contributions</header>
<subparagraph id="idA4B2958118C247588BBA30704C31A271"><enum>(A)</enum><header>In
general</header><text>With respect to each covered contribution, subject to
subparagraphs (A), (B), and (C), the date and amount of each covered
contribution received by an independent political actor.</text>
<clause id="id53B13A8FD433445597036220F6EDD760"><enum>(i)</enum><header>All receipts
method</header><text>In the case of any independent political actor who has
made an election under section 352(b)(2)(A), the identification of each person
who made covered contributions to such independent political actor during the
Federal election cycle.</text>
</clause><clause id="id788A2D6A8D944C5FBD32C949124DC40C"><enum>(ii)</enum><header>Supplemental
contributions accounts</header><text>In the case of an independent political
actor who has made an election under section 353(b)(2)(B), the identification
of each person who made a covered contribution deposited into any such account
during the Federal election cycle.</text>
</clause><clause id="id8E111C5CBA2C4426A3D240C56AB66AD9"><enum>(iii)</enum><header>Alternative
allocation plan</header><text>In the case of an independent political actor who
enters into an alternative allocation plan with the Commission under section
353(b)(2)(C), the information required to be reported under such alternative
allocation plan.</text>
</clause></subparagraph><subparagraph id="id4E63F165262D4037AB31DBF0E4D1E2C2"><enum>(B)</enum><header>Look through
reporting for certain transfers</header><text>In the case of any covered
contribution received by an independent political actor which is a independent
Federal election-related activity expenditure of another independent political
actor (hereinafter in this subparagraph referred to as the
<term>transferor</term>) which is described in clause (ii) of section
7701(a)(51)(A) of the Internal Revenue Code of 1986, the independent political
actor receiving such covered contribution shall attribute the amount of the
covered contribution to the transferee and to each person identified in a
report of the transferee under this paragraph before the date of such
contribution in the proportion that the amount of covered contributions so
identified by the transferee in such reports bears to the amount of the covered
contribution received by the independent political actor.</text>
</subparagraph></paragraph></subsection><subsection id="idEB982545287148CFBAEB663A2F7F60AF"><enum>(c)</enum><header>Confidentiality
protections</header><text display-inline="yes-display-inline">The Commission
may prescribe regulations to provide for an exception to the public disclosure
of the identity of a person who makes a covered contribution under this section
if—</text>
<paragraph commented="no" id="id8EEDE40E6A0B46F18CB8F6432C3D987D"><enum>(1)</enum><text display-inline="yes-display-inline">the aggregate such contributions made by
such person was $5,000 or less; and</text>
</paragraph><paragraph commented="no" id="id8780753176A54E2BB61A943F34EDF879"><enum>(2)</enum><text display-inline="yes-display-inline">such person has demonstrated that
disclosure of the person’s identity will place the person at a particularized
and specific risk of substantial injury to his or her person or business as a
consequence of the disclosure.</text>
</paragraph></subsection></section><section commented="no" id="idC08B786684EB409F867A66F1624B024C"><enum>355.</enum><header>Enforcement</header><text display-inline="no-display-inline">For purposes of section 309—</text>
<paragraph commented="no" id="id73B4995E6A724D909813C351CA6488F3"><enum>(1)</enum><text>a violation of
section 354(a) shall be treated as a violation of section 304(a) for purposes
of subsection (4)(C) thereof, and</text>
</paragraph><paragraph commented="no" id="idAEB42EF703314F9B9278CE51E783D4EF"><enum>(2)</enum><text>the amount
required to be paid under any conciliation agreement or civil penalty imposed
for a violation of section 304 or section 354 shall be reduced by the amount of
any tax imposed and paid under section 4969 of the Internal Revenue Code of
1986.</text>
</paragraph></section></subtitle><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idF029A69BE2D44ED3AF75BBEC61DF51BF"><enum>(c)</enum><header>Coordination
with existing requirements</header>
<paragraph commented="no" id="idA92B5CFF70C142DFAEE49713FE4CDCA8"><enum>(1)</enum><header>Definition of
political committee</header><text>Section 301(4) of the Federal Election
Campaign Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434(4)</external-xref>) is amended by adding at the end the
following flush sentence:</text>
<continuation-text continuation-text-level="paragraph"><quote>Such
term shall not include any person who is an independent political actor, as
defined in section 351(1).</quote>.</continuation-text></paragraph><paragraph id="idF3956F1E8BBB45709CCFF4FDA90CC5F9"><enum>(2)</enum><header>Prohibition on
transfer of funds from political committees</header><text>Section 313(b) of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/439a">2 U.S.C. 439a(b)</external-xref>) is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id672EDF7CB10A4C10BF9438656859AF99" style="OLC">
<paragraph id="id7A5D44D2C45A4F92BACEBC4BCE254F44"><enum>(3)</enum><header>Transfers for
independent Federal election-related activity expenditures</header><text>A
contribution to a political committee may not be—</text>
<subparagraph id="id937F145CC9F645CDAC67114F381F5304"><enum>(A)</enum><text>transferred to a
safe harbor account or a supplemental contribution account of an independent
political actor (as defined by section 351); or</text>
</subparagraph><subparagraph id="id0EC07EF15A214027ACF96E772FC34A75"><enum>(B)</enum><text>otherwise used
for an independent Federal election-related activity expenditure (as defined in
section
351).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id1B8BAA0322CF4C0CA8ED3B2724179871"><enum>(3)</enum><header>Termination of
duplicate reporting requirements</header>
<subparagraph id="id00B1922E4ABE4BD1993265432096826E"><enum>(A)</enum><header>Independent
expenditures</header>
<clause id="idD893EC4319834072BAEF5BA7E855132C"><enum>(i)</enum><header>In
general</header><text>Section 304(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434(c)</external-xref>) is amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC0477052602841589194D3787F5431B3" style="OLC">
<paragraph id="id3F8A9863C9B44801947C6F810BE9E290"><enum>(4)</enum><header>Termination</header><text>This
subsection shall not apply to expenditures made after December 31,
2014.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause id="id24725B00AF084683801CAC40704F47E4"><enum>(ii)</enum><header>Conforming
amendment</header><text>Section 304((g) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434(g)</external-xref>) is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id79AF1CE641D9443F8160FB5A699CBEF5" style="OLC">
<paragraph id="id47B30188F6F84D2D9A9964D0062B4227"><enum>(5)</enum><header>Termination</header><text>This
subsection shall not apply to expenditures made after December 31,
2014.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id6CF73D421F9349DEBB1FEBB85BF1FB73"><enum>(B)</enum><header>Electioneering
communications</header><text>Section 304(f) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434(f)</external-xref>) is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idAC8D61FB0BF74A25ACB41D1871DC5208" style="OLC">
<paragraph id="id3DCB63F23F8745FFA460D378F63F43C1"><enum>(8)</enum><header>Termination</header><text>Paragraph
(1) shall not apply to expenditures made after December 31,
2014.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB64F85556AB94075972A45C72B6DC3D3"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions and expenditures made after December 31, 2014.</text>
</subsection></section><section id="id7AFF89CF308040209DE8AB9E075752C2"><enum>102.</enum><header>Increase in
reporting thresholds for candidate only political committees</header>
<subsection id="id5A5B2D72ADED4E7B98034AB68D295730"><enum>(a)</enum><header>In
general</header><text>Subparagraphs (A) and (F) of section 304(b)(3) of the
Federal Election Campaign Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434(b)(3)(A)</external-xref>) are each amended
by striking <quote> in excess of $200</quote> and inserting <quote>in excess of
$1,000</quote>.</text>
</subsection><subsection id="id84BA9EC9C0BB4EC4AF3759444CC0820C"><enum>(b)</enum><header>Political
committees</header><text>Paragraph (3) of section 304(e) of such Act (2 U.S.C.
434(e)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idEB5AEB9665934404AC07AED49065A0D1" style="OLC">
<paragraph id="idCF0B922EF13C4E09B7BF750F0697B6DE"><enum>(3)</enum><header>Itemization</header><text>If
a political committee has—</text>
<subparagraph id="idF15EEFADD5B645F397C831F52D5C307A"><enum>(A)</enum><text>receipts to which
this subsection applies from any person in excess of $200 for any calendar
year, or</text>
</subparagraph><subparagraph id="id57A469AC92664E659BED0D7691E5EBFB"><enum>(B)</enum><text>disbursements to
which this subsection applies to any person in excess of $1,000 for any
calendar year,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">the
political committee shall separately itemize its reporting for such person in
the same manner as required in paragraphs (3)(A), (5), and (6) of subsection
(b).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA886123B4D9A431D98C776219544651E"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions and expenditures made after December 31, 2014.</text>
</subsection></section><section commented="no" id="id02BA5D77DE4F4898969B297038ACDF1C"><enum>103.</enum><header>Instant
disclosure system for contributions</header>
<subsection commented="no" id="idD23D34A906854C969B7BE8195B583C92"><enum>(a)</enum><header>In
general</header><text>Not later than January 1, 2015, the Federal Election
Commission shall make available an instant disclosure system for use in
reporting contributions under section 304 of the Federal Election Campaign Act
of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434</external-xref>) and covered contributions under section 354 of such Act.
Such system shall include a free internet-based system or free software through
which participants may report.</text>
</subsection><subsection id="idC398C1013C254032BCD41C6C80009ED6"><enum>(b)</enum><header>Use of system
by political committees</header><text>Section 304(a) of the Federal Election
Campaign Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434</external-xref>) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idEC9559F543914560B6F44A3C2559123E" style="OLC">
<paragraph id="idF22B388777B94E34803B2807C318A58C"><enum>(13)</enum><header>Reporting of
contributions for certain political committees</header>
<subparagraph id="id1F0846B398E6436097FDDF6A41DF37DC"><enum>(A)</enum><header>In
general</header><text>On and after the date the Commission establishes the
instant disclosure system described in section 103(a) of the
<short-title>Follow the Money Act of 2013</short-title>,
each treasurer of a political committee which accepts a reportable contribution
shall file, not later than the time provided under subparagraph (B), a
statement with the Commission containing the information described in
subparagraph (C).</text>
</subparagraph><subparagraph id="id943FA3C472EA4016BE5EB7D286C6B5D9"><enum>(B)</enum><header>Timing of
reporting</header><text>The statement required to be made under subparagraph
(A) shall be filed with the Commission—</text>
<clause commented="no" id="id3C4D302868574E6C8F1E98210023E452"><enum>(i)</enum><text>in the case of a
reportable contribution made by check, before the date on which such check has
been cashed or deposited into an account of the independent political
actor;</text>
</clause><clause commented="no" id="id3D5A0B47010445D4AD8F80C9108F04A4"><enum>(ii)</enum><text>in the case of a
reportable contribution made by credit card or debit card, within 48 hours of
the receipt of such contribution; and</text>
</clause><clause commented="no" id="id031C7ACD5E2A4D18BD9BAA4C4AF94871"><enum>(iii)</enum><text>in any other
case, within 10 days of the receipt of such contribution.</text>
</clause></subparagraph><subparagraph id="id29A5923378C24373832FE683F5B62887"><enum>(C)</enum><header>Contents of
statement</header><text>Each statement required to be filed under this
subsection shall contain—</text>
<clause id="id969EE5AAD0EE41B3839F3AF6606B7687"><enum>(i)</enum><text>the
identification of the person who made the contribution, and</text>
</clause><clause id="id3A18FEC0EC214AE3A18A51A5513BBBCD"><enum>(ii)</enum><text>the date and
amount of each contribution made by such person during the federal election
cycle.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id87559E7B35654BDE868B767E626D1EFD"><enum>(D)</enum><header>Reportable
contribution</header><text>For purposes of this paragraph, the term
<term>reportable contribution</term> means any contribution which would be
required to be reported by the political committee under subparagraphs (A) or
(B) of subsection (b)(3) on a report submitted under paragraph (2), (3), or (4)
if such report covered activity through the day the statement under
subparagraph (A) were
filed.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H7BCC4155AA4646019190B2CE66E2923B" section-type="subsequent-section"><enum>104.</enum><header>Modification of
rules relating to disclaimer statements required for certain
communications</header>
<subsection commented="no" id="HBAE33182C72144CC8878E8575D0AA5E8"><enum>(a)</enum><header>Applying
requirements to all independent Federal election-Related activity
expenditures</header><text display-inline="yes-display-inline">Section 318(a)
of the Federal Election Campaign Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/441d">2 U.S.C. 441d(a)</external-xref>) is amended by
striking <quote> or whenever any person makes a disbursement for the purpose of
financing communications expressly advocating the election or defeat of a
clearly identified candidate, or</quote> and inserting <quote>whenever an
independent political actor makes a independent Federal election-related
activity expenditure consisting of a public communication, or whenever any
person</quote>.</text>
</subsection><subsection commented="no" id="H83A62830B6EE44068C0B1AF418156ABF"><enum>(b)</enum><header>Stand by your ad
requirements</header>
<paragraph commented="no" id="H9FF0105D9A5B4DAAB72176D236A213DB"><enum>(1)</enum><header>Maintenance of
existing requirements for communications by political parties and other
political committees</header><text>Section 318(d)(2) of such Act (2 U.S.C.
441d(d)(2)) is amended—</text>
<subparagraph commented="no" id="HF4EE82A4AF564B7E9EF8AABF77E0A068"><enum>(A)</enum><text>in the heading, by
striking <quote><header-in-text level="paragraph" style="OLC">others</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">political
committees</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="HA7A1EB33BB3C405D8521FC780AB771A8"><enum>(B)</enum><text>by striking
<quote>subsection (a)</quote> and inserting <quote>subsection (a) which is paid
for by a political committee (including a political committee of a political
party)</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H95E372A0A4514A1395BFBD40721B4415"><enum>(C)</enum><text>by striking
<quote>or other person</quote> each place it appears.</text>
</subparagraph></paragraph><paragraph commented="no" id="H3B8AB9944BCC41789AA5D3EE921F5134"><enum>(2)</enum><header>Special
disclaimer requirements for radio and television
communications</header><text>Section 318 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/441d">2 U.S.C. 441d</external-xref>) is amended
by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HBF25C7CF9E1241D28546F18828368E4D" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H97DB8E48B80940A388DAE5690B103EA2"><enum>(e)</enum><header display-inline="yes-display-inline">Communications by others</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBBA08EE800C049EFAEC91F73E429A3F6"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Any communication
described in paragraph (3) of subsection (a) which is paid for by an
independent political actor and transmitted through radio or television shall
include, in addition to the requirements of that paragraph, the
following:</text>
<subparagraph commented="no" id="H5BFAD7897C5A4107A381FE08309DCC7F"><enum>(A)</enum><text>The name of the
independent political actor, conveyed by audio.</text>
</subparagraph><subparagraph commented="no" id="id6C0ED070124B4B27A7E33CEFAAB63871"><enum>(B)</enum><text>The registration
number of the independent political actor, conveyed by audio.</text>
</subparagraph><subparagraph commented="no" id="id2A70DF8C100243FF983D3659F01B3679"><enum>(C)</enum><text>The top 3 funders
with respect to the registrant (as described in paragraph (2)), together with
the city or residence of each such funder, unless, on the basis of criteria
established in regulations promulgated by the Commission, the communication is
of such short duration that including the top 3 funders with respect to the
registrant would constitute a hardship to the person paying for the
communication by requiring a disproportionate amount of the communication’s
content to consist of the top 3 funders.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA76D667338E94F959B15E2028A7ED5FC"><enum>(2)</enum><header>Top 3
funders</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the top 3 funders described in this paragraph are the 3 persons
who provided the largest covered contributions to the independent political
actor during the Federal election cycle. The Commission shall provide for rules
determining the top 3 funders in any case in which 2 or more persons are
reported as having provided covered contributions.</text>
</paragraph><paragraph commented="no" id="id5F964F6B4BDC4B00AEBA77C7D079C6D4"><enum>(3)</enum><header>Manner of
statement</header><text display-inline="yes-display-inline">The information
required under paragraph
(1)</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HBCF6B6DECD044CF18B945FF20DE0674D"><enum>(3)</enum><header>Application to
certain mass mailings</header><text display-inline="yes-display-inline">Section
318(a)(3) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/441d">2 U.S.C. 441d(a)(3)</external-xref>) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA20DC0AE44ED40B7A418D53A3E8E1268" style="traditional">
<paragraph commented="no" id="H00FFF44234CB483686B0DAC00590E2CD"><enum>(3)</enum><text>if not authorized
by a candidate, an authorized political committee of a candidate, or its
agents, shall clearly state—</text>
<subparagraph commented="no" id="H110C021CB500421F984AF345B4C1754B"><enum>(A)</enum><text>the name and
permanent street address, telephone number, and, if applicable, the World Wide
Web address of the person who paid for the communication;</text>
</subparagraph><subparagraph commented="no" id="HD7CE36F2EF59474D8B313402175AA91F"><enum>(B)</enum><text display-inline="yes-display-inline">if the communication is a independent
Federal election-related activity expenditure made by an independent political
actor—</text>
<clause commented="no" id="id1267F8F8923041A08AFE98F972D0C577"><enum>(i)</enum><text display-inline="yes-display-inline">the name, registration number, and
permanent street address, telephone number, and, if applicable, the World Wide
Web address of the independent political actor;</text>
</clause><clause commented="no" id="id8C9ED5277A5E48E2A28431FB31E7C773"><enum>(ii)</enum><text display-inline="yes-display-inline">the name of the treasurer of the
independent political actor; and</text>
</clause><clause commented="no" id="H62BC3D4313AD49FB914BE4F6EA95AC3F"><enum>(iii)</enum><text display-inline="yes-display-inline">each person who would be included in the
top 3 funders which would be submitted with respect to the communication if the
communication were transmitted through television, if any (as determined in
accordance with subsection (e)(2); and</text>
</clause></subparagraph><subparagraph commented="no" id="H8DD6E10C648E49AEBCAFF8DD3C064506"><enum>(C)</enum><text>that the
communication is not authorized by any candidate or candidate’s
committee.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA174CF150F9C42C884BE70FE013832D9"><enum>(4)</enum><header>Application to
political robocalls</header><text display-inline="yes-display-inline">Section
318 of such Act (2
U.S.C. 441d), as amended by paragraph (2), is further amended
by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HC480FB50A8204A2791D84D2799070168" style="OLC">
<subsection commented="no" id="HBD51371490D140748FE88CD3C35006B1"><enum>(f)</enum><header>Special rules
for political robocalls</header>
<paragraph commented="no" id="H5C486522AA3349968C1E35376EE7A01E"><enum>(1)</enum><header>Requiring
communications to include certain disclaimer statements</header><text display-inline="yes-display-inline">Any communication consisting of a political
robocall which would be subject to the requirements of subsection (e) if the
communication were transmitted through radio or television shall include the
following:</text>
<subparagraph commented="no" id="id2FE84F3EB1F74DF0AC0D76897B76C041"><enum>(A)</enum><text>The name and city
and state of residence of the independent political actor.</text>
</subparagraph><subparagraph commented="no" id="idE5FB47FA8E284D70BC9C326422EA45F1"><enum>(B)</enum><text>The registration
number of the independent political actor.</text>
</subparagraph><subparagraph commented="no" id="id4E721582ECCE45A2A5D7A3A7C5763303"><enum>(C)</enum><text>A phone number
associated with the independent political actor where individuals may call with
questions and comments and which is staffed during all hours in which such
political robocalls are made and for 1 hour after the last such political
robocall was made.</text>
</subparagraph><subparagraph commented="no" id="id2CFF08688F794960BBBEC302E3D41C31"><enum>(D)</enum><text>The top 3 funders
with respect to the registrant (as described in subsection (e)(2)).</text>
</subparagraph></paragraph><paragraph commented="no" id="H0E766B36876F4EF39EF324F6BED4D4B9"><enum>(2)</enum><header>Timing of
certain statement</header><text display-inline="yes-display-inline">The
statements required to be included under paragraph (1) shall be made at the
beginning of the political robocall, unless, on the basis of criteria
established in regulations promulgated by the Commission, the communication is
of such short duration that including the statement in the communication would
constitute a hardship to the person paying for the communication by requiring a
disproportionate amount of the communication’s content to consist of the
statement.</text>
</paragraph><paragraph commented="no" id="H66751A88D4FA40EBAB4AD10A05FFF2B9"><enum>(3)</enum><header>Political
robocall defined</header><text>In this subsection, the term <term>political
robocall</term> means any outbound telephone call—</text>
<subparagraph commented="no" id="H0E1EA554BC754091B6B64C5D20E90D0D"><enum>(A)</enum><text display-inline="yes-display-inline">in which a person is not available to speak
with the person answering the call, and the call instead plays a recorded
message; and</text>
</subparagraph><subparagraph commented="no" id="HFF5470A1595E42428299C28916831671"><enum>(B)</enum><text display-inline="yes-display-inline">which promotes, supports, attacks, or
opposes a candidate for election for Federal
office.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id19B88647D2454F29AE1B3D0A96C1C409"><enum>(5)</enum><header>Additional
authority</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id4754699966AC41BE9064825CC912D5B7"><enum>(A)</enum><header>In
general</header><text>Section 318 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/441d">2 U.S.C. 441d</external-xref>), as amended by
paragraph (4), is further amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="id9F13751DC0644847A2635B550937F446" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idFCD2297700EC4CC8A26018D7EA7A7A79"><enum>(g)</enum><header>Certain
requirements determined by the Commission</header><text>The Commission may by
regulation prescribe disclosure requirements in addition to those required by
this section for communications paid for through independent Federal
election-related activity expenditures, including requirements for
communications using new
technologies.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id99D4FCD4707A49898D05E4EAB84612AF"><enum>(B)</enum><header>Rulemaking</header><text>Not
later than August 1 of each odd numbered year beginning with calendar year
2015, the Federal Election Commission shall issue an advanced notice of
proposed rulemaking with respect to regulations under section 318(g) of the
Federal Election Campaign Act of 1971.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id63A5F7F373F14715AC90A9C8844C601E"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
communications made after December 31, 2014, and shall take effect without
regard to whether or not the Federal Election Commission has promulgated
regulations to carry out such amendments.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idFE009A8D76294A4C9FDA940AE1F88D49"><enum>105.</enum><header>Statements
disavowing communications</header><text display-inline="no-display-inline">Section 304 of the Federal Election Campaign
Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/434">2 U.S.C. 434</external-xref>), as amended by this Act, is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id3C28545D248F4DD395E5A952C91F5E37" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idC4A5915A3F9444C691C75462CD2DCF97"><enum>(k)</enum><header>Statements of
disavowal</header>
<paragraph commented="no" display-inline="no-display-inline" id="id0E1FA4EF2F6A42B8B8F6A8CC10DAB4F9"><enum>(1)</enum><header>In
general</header><text>A candidate or an authorized committee of a candidate may
file with the Commission a statement disavowing any public communication which
is not made in cooperation, consultation, or concert with such candidate or
authorized committee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF062460C535D4D1086FCD49FF0C6464A"><enum>(2)</enum><header>Publication of
statement</header><text>The Commission shall make such statement publicly
available on the Commission's
website.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idB78D58DB981D419FA4C76BAC3106088F"><enum>106.</enum><header>Filing by
Senate candidates with commission</header>
<subsection commented="no" display-inline="no-display-inline" id="id92C5CBAB37B44EB6BE5AC1EC5D3E8654"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 302(g) of the
Federal Election Campaign Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/2/432">2 U.S.C. 432(g)</external-xref>) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idaf26064d626043898b3fd69d4c702146" style="OLC">
<subsection id="id87ee5b961f16477faf266860b760e349"><enum>(g)</enum><header>Filing with the
commission</header><text>All designations, statements, and reports required to
be filed under this Act shall be filed with the
Commission.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5054893845F34576826F43424F6331A4"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to
designations, statements, and reports required to be filed after the date that
is 2 months after the date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Regulation of
independent Federal election-related activity by tax-exempt entities</header>
<section id="id498C8CBDDCEE491EBF4FD58736E59FD7"><enum>201.</enum><header>Excise tax on
certain tax-exempt organizations failing to report election-related
expenditures</header>
<subsection id="id77FE425B55D44AA48225C56F99182FC3"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/42">Chapter 42</external-xref> of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:</text>
<quoted-block display-inline="no-display-inline" id="id999E5D44BB534ADE93804FC37EC3E464" style="OLC">
<subchapter id="idDA8D6F343AD141048F3353DE3989C112"><enum>H</enum><header>Reporting
election-related activity</header>
<toc>
<toc-entry idref="id55F8694ACA414DBEAFED1960FD3DA1E5" level="section">Sec. 4968. Taxes on failure to report certain election-related
activity.</toc-entry>
</toc>
<section id="id55F8694ACA414DBEAFED1960FD3DA1E5"><enum>4968.</enum><header>Taxes on
failure to report certain election-related activity</header>
<subsection id="P59E95CAF45BF41268C717E1C26E2E29F"><enum>(a)</enum><header>In
general</header>
<paragraph id="PBFCD0686FF354C24A92B16024D4AA232"><enum>(1)</enum><header>On the
organization</header><text>There is hereby imposed on each failure to report
described in subsection (b) by a covered tax-exempt organization a tax equal to
10 percent of the unreported amount. The tax imposed by this paragraph shall be
paid by the organization.</text>
</paragraph><paragraph id="P3BF4D48715644805A3F798D87CD1CE9B"><enum>(2)</enum><header>On the
responsible person</header><text>Unless a failure to report described in
subsection (b) is not due to negligence or intentional disregard, there is
hereby imposed on the responsible individual with respect to the organization
to which the failure to report relates, a tax equal to
2<fraction>1/2</fraction> percent of the amount thereof. The tax imposed by
this paragraph shall be paid by the responsible individual.</text>
</paragraph></subsection><subsection id="id38F4328BFCC84F888F848EC6175B3EDC"><enum>(b)</enum><header>Failures To
report described in this subsection</header><text>A failure to report is
described in this subsection if such failure is a failure to report a covered
contribution or an independent Federal election-related activity expenditure
under section 354 of such Act. For purposes of this section, a failure to
accurately report an amount shall be treated as a failure to report such amount
to the extent of the difference between the amount required to be reported and
the amount so reported.</text>
</subsection><subsection id="id4311E03DDC0C46FD8C53F463CD51FFC1"><enum>(c)</enum><header>Reduction in
amount of tax</header>
<paragraph id="id7EE088F4CF1040AB8DD59FE53F156FB2"><enum>(1)</enum><header>Taxes on the
organization</header><text>The tax imposed under subsection (a)(1) shall be
reduced by any amount paid by such organization in connection with the failure
to report described in subsection (b)—</text>
<subparagraph id="id306740A65C944AEABA062FD50E92594F"><enum>(A)</enum><text>under any
conciliation agreement with the Federal Election Commission under section 309
of the Federal Election Campaign Act of 1971, or</text>
</subparagraph><subparagraph id="idE6B9A5D0A8BA4B31AEAD0CF71A0D1722"><enum>(B)</enum><text>under a civil
penalty imposed by the Commission.</text>
</subparagraph></paragraph><paragraph id="idE3D6CC0D8D724A27B1C7D78163EB3A49"><enum>(2)</enum><header>Taxes on the
responsible individual</header><text>The tax imposed under subsection (a)(2)
shall be reduced by any amount paid by such responsible individual in
connection with the failure to report described in subsection (b)—</text>
<subparagraph id="id86648E85AED340E0AF0B20C0AE67F28C"><enum>(A)</enum><text>under any
conciliation agreement with the Federal Election Commission under section 309
of the Federal Election Campaign Act of 1971, or</text>
</subparagraph><subparagraph id="id17B4466D89BB45E3879746AA61E62664"><enum>(B)</enum><text>under a civil
penalty imposed by the Commission.</text>
</subparagraph></paragraph></subsection><subsection id="PCE5B81D5E21F46B68EB80327DC54F466"><enum>(d)</enum><header>Other
definitions</header><text>For purposes of this section—</text>
<paragraph id="id51B54F4AD4F84E6A80A401600829B8D5"><enum>(1)</enum><header>Covered
tax-exempt organization</header><text>The term <term>covered tax-exempt
organization</term> means any organization which—</text>
<subparagraph id="id100CF1C169CB4CFC884DD5BCA228CA2C"><enum>(A)</enum><text>without regard to
any failure described in subsection (b)—</text>
<clause id="idBE932490F12046F9950EBFF00207A393"><enum>(i)</enum><text>would be
described in section 501(c) and exempt from taxation under section 501(a),
or</text>
</clause><clause id="id2EF6F935C6014789A7530B83893E4E7E"><enum>(ii)</enum><text>is a political
organization (as defined in section 527), and</text>
</clause></subparagraph><subparagraph id="id6B8187BB3C304E13AF7DFADBA1F59F6A"><enum>(B)</enum><text>is an independent
political actor (as defined in section 351(1) of such Act).</text>
</subparagraph></paragraph><paragraph id="id7CC828DE563045978F4D78171973A3FE"><enum>(2)</enum><header>Responsible
individual</header><text>The term <term>responsible individual</term> means,
with respect to any covered tax-exempt organization, the individual designated
as a responsible individual under section 352(a) of the Federal Election
Campaign Act of 1971.</text>
</paragraph></subsection><subsection id="idAF2E258359954B96A0084B0968788F25"><enum>(e)</enum><header>Abatement</header><text>If
it is established to the satisfaction of the Secretary that a failure to report
described in subsection (b) was due to reasonable cause and not negligence or
intentional disregard, then any tax imposed under subsection (a) with respect
to such failure (including interest) shall not be assessed and, if assessed,
the assessment shall be abated and, if collected, shall be credited or refunded
as an
overpayment.</text>
</subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id3484FBCBAEAD42E1BB4629FE8EBE1DDC"><enum>(b)</enum><header>Conforming
amendment</header><text>The table of subchapters for chapter 42 of such Code is
amended by adding at the end the following new item:</text>
<quoted-block id="id180b5269-e354-44c8-bd34-ffedb9aebc8a" style="OLC">
<toc>
<toc-entry idref="idDA8D6F343AD141048F3353DE3989C112" level="subchapter">SUBCHAPTER H—Reporting election-related
activity</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id678DF009485A4D518986C0CD1296B9B0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions and expenditures made after December 31, 2014.</text>
</subsection></section><section id="id2CF5221CF30747039F338A6EA0E7B58C"><enum>202.</enum><header>Loss of
tax-exempt status for certain organizations failing to register or report
election-related expenditures and contributions</header>
<subsection id="id45B21413D3D04E0B95E1631F3A3D41A7"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter F of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="id83EDEC37DA5848E38B4815ED4C1D8070" style="OLC">
<section id="id7BA0FFBE8D63408AB7F2B211FD781577"><enum>506.</enum><header>Requirement to
register and report independent Federal election-related activity
expenditures</header>
<subsection id="idA9BA6AE8C72847C79456ADD05D3FEB27"><enum>(a)</enum><header>In
general</header>
<paragraph id="id3AAFB3D1CFE74FAE8F2EC812F9D0B1B7"><enum>(1)</enum><header>Loss of
tax-exempt status</header><text>An organization described in section 501(c)
shall not be exempt from taxation under section 501(a), and a political
organization described in section 527 shall not be exempt from tax under such
section, for any period after the date described in paragraph (2) if such
organization is required to register under section 303 or 353 of the Federal
Election Campaign Act of 1971 or report under section 304 or 354 of such Act
and fails to do so or, in the case of a report under such section 304 or 354,
files an inaccurate report.</text>
</paragraph><paragraph id="id9D1F75D94C15488EAD91FA22653EB539"><enum>(2)</enum><header>Time of loss of
exemption</header><text>The date described in this paragraph is the date on
which the first failure described in paragraph (1) occurred.</text>
</paragraph></subsection><subsection commented="no" id="id68C1A3ABB8C94B1DA63C2C1ED2A7B642"><enum>(b)</enum><header>Exceptions</header>
<paragraph commented="no" id="id45710502D3674D0399929A39A76E7027"><enum>(1)</enum><header>Safe
harbor</header><text>Notwithstanding subsection (a), an organization shall not
fail to be treated as exempt from tax under section 501(a) or section 527 if
the sums for which there was a failure to report under section 304 or 354 of
the Federal Election Campaign Act of 1971 aggregates $25,000 or less.</text>
</paragraph><paragraph commented="no" id="id51582324A74641B8AFFEFDDB5D581AEF"><enum>(2)</enum><header>Best
efforts</header><text>An organization shall not fail to be treated as exempt
from tax under section 501(a) or section 527 if the Secretary determines that
the treasurer or responsible person with respect to such organization (within
the meaning of section 352 of the Federal Election Campaign Act of 1971) has
made best efforts to comply with the requirements to which the failure relates.
In any case in which such failure relates to a failure to report the
identification (as defined in section 301 of such Act) of a person, such best
efforts shall not be considered to have been made unless the treasurer or
responsible person made efforts to contact the person through multiple means of
communication and attempted to use publicly available information to establish
such identification.</text>
</paragraph></subsection><subsection commented="no" id="id799CD8A5E0A14D3B9C6DCDBA066966E8"><enum>(c)</enum><header>Denial of
reinstatement</header><text>Any organization to which subsection (a) applies,
and any responsible individual with respect to such organization (as defined in
section 4968(d)(2))—</text>
<paragraph commented="no" id="id6EA012C4BF314918B20FCC42DA0AAD0B"><enum>(1)</enum><text>shall not be
eligible to apply for exemption from taxation under section 501(a), and</text>
</paragraph><paragraph commented="no" id="idED16F96EDF76493AA9FF6520CECC5BE8"><enum>(2)</enum><text>shall not be
treated as a political organization under section 527,</text>
</paragraph><continuation-text continuation-text-level="subsection">before
the end of the Federal election cycle (as defined in section 351(2) of the
Federal Election Campaign Act of 1971) in which the failure described in
subsection (a) occurred.</continuation-text></subsection><subsection commented="no" id="id5EDC0BCD1CB2468AA46D9F5A3EDC6C62"><enum>(d)</enum><header>Reasonable
cause exception</header><text>If it is established to the satisfaction of the
Secretary that a failure described in subsection (a)(1) was due to reasonable
cause and not negligence or intentional disregard, then subsection (a) shall
not
apply.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id88F5816F4EFD4C698FE7AC82164B9053"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id39C396C0A99046D98F6AFAF16616998B"><enum>(1)</enum><text>Section 501(a) of
such Code is amended by striking <quote>or 503</quote> and inserting
<quote>503, or 506</quote>.</text>
</paragraph><paragraph id="id2A575DA4AA0F48688E1CE4D574024907"><enum>(2)</enum><text>The table of
sections for part I of subchapter F of chapter 1 of such Code is amended by
adding at the end the following new item:</text>
<quoted-block id="idfaaee817-3209-42c4-b18e-5680701cc847" style="OLC">
<toc>
<toc-entry idref="id7BA0FFBE8D63408AB7F2B211FD781577" level="section">Sec. 506. Requirement to register and report independent
Federal election-related activity
expenditures.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idA6DB2A8BC2B04DDF939C47532F11B63F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions and expenditures made after December 31, 2014.</text>
</subsection></section><section commented="no" id="id1ABBBD36D6BE4CDA912C83DAFA074A76"><enum>203.</enum><header>Section 527
political organizations required to file with FEC</header><text display-inline="no-display-inline">Section 527(j) of such Code is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id8F692B715A7F45538977DE3695387138" style="OLC">
<paragraph commented="no" id="idCF198C691C8946CAA6A308245D4BF899"><enum>(8)</enum><header>Nonapplication
to independent political actors</header>
<subparagraph commented="no" id="id19BA0A9D7E5E470EB7F465D0BC4FF81E"><enum>(A)</enum><header>In
general</header><text>In the case of a political organization which is an
independent political actor (as defined in section 351 of the Federal Election
Campaign Act of 1971)—</text>
<clause commented="no" id="id0D59323762E5493DB76E64833AF1BB36"><enum>(i)</enum><text>such political
organization shall file statements and reports in accordance with section 354
of the Federal Election Campaign Act of 1971, and</text>
</clause><clause commented="no" id="id10333E9AC9B84391B462B491CBAB907B"><enum>(ii)</enum><text>this subsection
shall not apply with respect to information required to be included on such
statements.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7A319F0F812942FF8C95F5FDA0BA986D"><enum>(B)</enum><header>Cross-reference</header><text>For
failure to meet the requirements of subparagraph (A), see sections 506 and
4968.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id0297E1EEA30A43379501C4824D28D148"><enum>204.</enum><header>Application of
whistleblower protections</header><text display-inline="no-display-inline">Paragraph (5) of section 7623(b) of the
Internal Revenue Code of 1986 is amended by striking <quote>any action</quote>
and inserting <quote>any action which relates to a violation of section 506 or
to any other action</quote>.</text>
</section><enum>III</enum><header>Other
provisions</header>
<section id="idDF3DE8F18AB646388D19BBB433556E57"><enum>301.</enum><header>Joint
regulatory authority and advisory opinions</header>
<subsection id="id8B3220DA9862478796D0E57A9C418F19"><enum>(a)</enum><header>Regulations and
forms</header>
<paragraph id="id558B57D6DFB74E2F9154495F7C112EB3"><enum>(1)</enum><header>Joint
regulations</header><text>Not later than September 30, 2014, the Secretary of
the Treasury, or the Secretary's delegate, and the Federal Election Commission
shall prescribe joint regulations with respect to—</text>
<subparagraph id="idF270E23CA7E147A69E4FE5FBA44D1884"><enum>(A)</enum><text>the definitions
of the terms <term>independent Federal election-related activity
expenditure</term> and <term>covered contribution</term>, as defined in section
7701(a) of the Internal Revenue Code of 1986 and section 351 of the Federal
Election Campaign Act of 1971, as added by this Act, and</text>
</subparagraph><subparagraph id="idA3FBA0A3503E4128912676623B89AC19"><enum>(B)</enum><text>forms and
regulations necessary to carry out the registration and reports required under
sections 353 and 354 of the Federal Election Campaign Act of 1971.</text>
</subparagraph></paragraph><paragraph id="idA225607AACF94CE087F6ABE8F279FCC9"><enum>(2)</enum><header>Treasury
regulations</header><text>In the case that the joint regulations described in
paragraph (1) have not been prescribed by September 31, 2014, the Secretary of
the Treasury, or the Secretary's delegate, shall prescribe such regulations not
later than December 1, 2014, and such regulations shall apply with respect to
the administration, application, and enforcement of the Federal Election
Campaign Act of 1971.</text>
</paragraph><paragraph id="id87DCBC36636346ADA9FE5A003F476C5B"><enum>(3)</enum><header>Rule of
construction</header><text>The regulations promulgated under this subsection
shall prescribe that the substance of any transaction shall control over the
form of the transaction.</text>
</paragraph></subsection><subsection id="idBC1A0E2BD0594F2FB433CF69665F3C74"><enum>(b)</enum><header>Advisory
opinions</header>
<paragraph id="idF7E7805C955C4915A50CE31B45C5304A"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury, or the Secretary's
delegate, in consultation with the Federal Election Commission, shall issue
advisory opinions on requests relating to the matters described under
subsection (a)(1).</text>
</paragraph><paragraph id="id615EE86BC18F4CC9B0B849423A05969A"><enum>(2)</enum><header>User
fees</header><text>The Secretary of the Treasury is authorized to impose user
fees to cover the costs of any advisory opinions requested under paragraph (1),
and the Secretary is authorized to transfer to the Federal Election Commission,
and the Commission is authorized to accept, the portion of such fees which is
determined to be related to costs incurred by the Commission in connection with
an advisory opinion.</text>
</paragraph><paragraph id="id20A7EA9A3FE944B388341E6D11DB9246"><enum>(3)</enum><header>Sense of
Congress</header><text>It is the sense of Congress that advisory opinions under
this section shall be furnished within 30 days of the request unless public
interest requires otherwise.</text>
</paragraph></subsection></section><section commented="no" id="id3C15B1773E5E4DAAB67970F432EBA2B3"><enum>302.</enum><header>Denial of
business expense deductions for certain businesses failing to report donations
and independent Federal election-related activity expenditures</header>
<subsection commented="no" id="idC98A08C24EE843AD81AA46A4B5620787"><enum>(a)</enum><header>Denial of
deduction for election-Related activity expenditures</header>
<paragraph commented="no" id="id2C2D6499189B4B828EC099B82E7F175A"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 162(e) of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idBB8287F0754742D09FA36B448082C987" style="OLC">
<paragraph commented="no" id="id4897904E63594AB681094DBCDE7AC321"><enum>(1)</enum><header>In
general</header><text>No deduction shall be allowed under subsection (a)
for—</text>
<subparagraph commented="no" id="id625124BB702D4E0D8AB16D83B3E10C85"><enum>(A)</enum><text>any independent
Federal election-related activity expenditure (as defined in section
7701(a)(51)), or</text>
</subparagraph><subparagraph commented="no" id="id1100A957439A45669DDC3CA20D3510AD"><enum>(B)</enum><text>any amount paid
or incurred in connection with—</text>
<clause commented="no" id="id6112B641668649B68228D3C13917F007"><enum>(i)</enum><text>influencing
legislation,</text>
</clause><clause commented="no" id="id24977A610FC14C958D842618AB19907B"><enum>(ii)</enum><text>participation
in, or intervention in, any political campaign on behalf of (or in opposition
to) any candidate for public office,</text>
</clause><clause commented="no" id="id413E47B173624E4AB4251B022268CC2C"><enum>(iii)</enum><text>any attempt to
influence the general public, or segments thereof, with respect to elections,
legislative matters, or referendums, or</text>
</clause><clause commented="no" id="id7A9211AA4203453397C3D7521D627823"><enum>(iv)</enum><text>any direct
communication with a covered executive branch official in an attempt to
influence the official actions or positions of such
official.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idFC80B47D30F44DBDB91E566DC7F88012"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="idB4C25A35D39C4DD49D2FF1D02AFEAA39"><enum>(A)</enum><text>Section
162(e)(2)(A) of such Code is amended by striking <quote>paragraph
(1)(A)</quote> and inserting <quote>paragraph (1)(B)(i)</quote>.</text>
</subparagraph><subparagraph commented="no" id="id527590C8C6F3435FA9BF87366362772C"><enum>(B)</enum><text>Section
162(e)(5)(B) of such Code is amended by striking <quote>paragraph (1)(A) and
(D)</quote> each place it appears and inserting <quote>paragraph (1)(B)(i) and
(iv)</quote>.</text>
</subparagraph><subparagraph commented="no" id="idA86E8A467D78444FB7EA5944D10087CE"><enum>(C)</enum><text>Section
6033(e)(1)(B)(ii) of such Code is amended by striking <quote>subparagraphs (A)
and (D) of section 162(e)(1)</quote> and inserting <quote>clauses (i) and (iv)
of section 162(e)(1)(B)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id8DA12A7D850A4F339397785C44C84F6F"><enum>(b)</enum><header>Exception to
allowance of deduction for amounts expended on behalf of another
person</header><text>Subparagraph (A) of section 162(e)(5) of the Internal
Revenue Code of 1986 is amended—</text>
<paragraph commented="no" id="id8E4B5901901A4E2687CA237DBA31F55F"><enum>(1)</enum><text>by striking
<quote>In the case of</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idADD25EEF66764E98A5596ADFF9F01BEF" style="OLC">
<clause commented="no" id="id879472ACCCFA45E9B6A3DCDB9C292500"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), in the case
of</text>
</clause><after-quoted-block>, and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id10ABE97B791649A3BC21F988A1CCEDEB"><enum>(2)</enum><text>by adding at the
end the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="idE36EB5085B3A4142B093347AEDB3A43F" style="OLC">
<clause commented="no" id="id1ADE914A7E3F4E778826BE9C01110353"><enum>(ii)</enum><header>Exception not
to apply with respect to certain organizations failing to file
reports</header><text>Clause (i) shall not apply to any activity described in
paragraph (1) which is a independent Federal election-related activity
expenditure (as defined in section 7701(a)(51)) unless the taxpayer has
complied with the requirements of sections 303, 304, 353 and 354 of the Federal
Election Campaign Act of
1971.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id935F71E39F1348789D4C8C238A159676"><enum>(c)</enum><header>Penalty for
improperly claiming deduction</header>
<paragraph commented="no" id="idD81BAE1E22FB4572AA6E538057D66AC5"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6662">Section 6662(b)</external-xref> of the Internal Revenue Code of 1986 is
amended by inserting after paragraph (7) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id9E2D27CD5A1745018B29B2C2E981FF55" style="OLC">
<paragraph commented="no" id="idDDBD8FAC86464C08B213C9DAFE5A0CD0"><enum>(8)</enum><text>Any improper
independent Federal election-related activity expenditure
deduction.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idD9004816C2CC4D43911EF6F5BE807E9E"><enum>(2)</enum><header>Improper
election-related activity expenditure deduction</header><text>Section 6662 of
such Code is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id790E56AFF5BA4C798322DA1DD7603C0A" style="OLC">
<subsection commented="no" id="id4E1AFBBCE7024131B4D46BAA9C35E23C"><enum>(k)</enum><header>Improper
independent Federal election-related activity expenditure
deduction</header><text>For purposes of this subsection, the term
<term>improper independent Federal election-related activity expenditure
deduction</term> means, for any taxable year, any portion of an understatement
for such taxable year which is attributable to any independent Federal
election-related activity expenditure (as defined in section 7701(a)(51))
improperly claimed as a deduction under section
162.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id2200A3A1B06944BF9AEC9A26DB2220EA"><enum>(d)</enum><header>Certification
of compliance on tax return</header>
<paragraph commented="no" id="id438BCC396EB842E3835623F6ECBCD5BA"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury, or the Secretary's
delegate, shall revise appropriate tax forms to provide that the chief
executive officer (or the equivalent) of any person claiming a trade or
business expense as a deduction under section 162 of the Internal Revenue Code
of 1986 on an income tax return provide an answer to the following questions on
such return:</text>
<quoted-block display-inline="no-display-inline" id="idBDDD7D91282C4478A35571219C488C1A" style="OLC">
<paragraph commented="no" id="id52ABACD587DE4C54AD6A390F3EE00748"><enum>(1)</enum><text>Has the taxpayer
made a independent Federal election-related activity expenditure (as defined in
<external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)(51)</external-xref> of the Internal Revenue Code of 1986) during the period
covered by the tax return?</text>
</paragraph><paragraph commented="no" id="idA43C83E9EA464A29B709A6A2DA8F5139"><enum>(2)</enum><text>Has the taxpayer
claimed a deduction for any independent Federal election-related activity
expenditure (as so defined) on the tax
return?</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idE36BEB6EBEEB433B9A272219D4CF61ED"><enum>(2)</enum><header>Penalty</header><text>Section
7207 of the Internal Revenue Code of 1986 is amended by adding at the end the
following new sentence: <quote>Any person required to provide an answer with
respect to election-related activity expenditures pursuant to section 303(d)(1)
of the <short-title>Follow the Money Act of
2013</short-title> who willfully provides a false or fraudulent answer with
respect to such expenditures shall be fined not more than $1,000,0000, or
imprisoned not more than 10 years, or both.</quote>.</text>
</paragraph></subsection><subsection commented="no" id="idB27405927EBF409385D5A9D3D4AE0D98"><enum>(e)</enum><header>Effective
date</header>
<paragraph commented="no" id="idC3B4BAC682C3451B84F3B30E9DEE1562"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2014.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6D07B207DEB0465290F0E4F55997825A"><enum>(2)</enum><header>Certification
and penalty</header><text>The amendments made by subsection (d) shall apply to
returns required to be filed after December 31, 2014.</text>
</paragraph></subsection></section><section id="id48E85AD621714223B63D27F3FD36AEE2"><enum>303.</enum><header>Prohibition on
discrimination against donors</header><text display-inline="no-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/43">Chapter 43</external-xref> of title 18, United States Code,
is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id867C412712654763816C613E7D944516" style="OLC">
<section id="idD1C688F2516840E48F4394C3D8176095"><enum>1925.</enum><header>Prohibition
on discrimination against donors in connection with Federal elections</header>
<paragraph id="id74a076ad730241deae27736b2a18a2aa"><enum></enum><text>Whoever, being
an officer or employee of the United States or of any department or agency
thereof, discriminates against any person on the basis of any information
reported under section 304 or 354 of the Federal Election Campaign Act of 1971
shall be fined under this title 18, or imprisoned not more than one year, or
both; and shall be removed from office or
employment.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="idB05B51EF0ACC41C0A8D671486D1F4B84"><enum>304.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act or any
amendment made by this Act, or the application of a provision to any person or
circumstance, is held to be unconstitutional, the remainder of this Act and the
amendments made by this Act, and the application of the provisions to any
person or circumstance, shall not be affected by the holding.</text>
</section>