I 111th CONGRESS 2d Session H. R. 4517 IN THE HOUSE OF REPRESENTATIVES January 26, 2010 Mr. Hall of New York (for himself, Mr. Cohen, and Ms. McCollum) introduced the following bill; which was referred to the Committee on House Administration A BILL To amend the Federal Election Campaign Act of 1971 to apply the ban on contributions and expenditures by foreign nationals to domestic corporations which are owned or controlled by foreign principals, to increase the civil penalties applicable to foreign nationals who violate the ban, and for other purposes.

1.

Short Title

This Act may be cited as the Freedom From Foreign-Based Manipulation in American Elections Act of 2010.

2.

Application of Ban on Contributions and Expenditures by Foreign Nationals to Foreign-Controlled Domestic Corporations

(a)

Application of Ban

Section 319(b) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441e(b)) is amended— (1)by striking or at the end of paragraph (1); (2)by striking the period at the end of paragraph (2) and inserting ; or; and (3)by adding at the end the following new paragraph: (3)a corporation (other than a foreign principal, as so defined) with respect to which— (A)the number of shares which are owned directly or indirectly by foreign principals is equal to or greater than 5 percent of the total number of outstanding shares of the corporation; (B)one or more foreign principals serves on the board of directors; or (C)one or more foreign principals is employed in a senior executive position. . (b)

Increase in Civil Money Penalties for Violations

(1)

In general

Section 319 of such Act (2 U.S.C. 441e) is amended by adding at the end the following new subsection: (c)

Civil Money Penalty for Violations

(1)

In general

A foreign national who violates subsection (a) shall pay a civil money penalty of $1,000,000. (2)

Additional penalty for making disbursements for electioneering communications

In addition to the penalty under paragraph (1), a foreign national who makes a disbursement for an electioneering communication shall pay a civil money penalty equal to the product of— (A)$50,000; and (B)the number of days on which the communication was aired. (3)

Ineligibility for government contract

A foreign national who violates subsection (a) shall be ineligible to enter into any contract with the United States for the provision of any goods, supplies, or services. (4)

No effect on criminal penalties

Nothing in this subsection shall be construed to affect the application of any criminal penalty to a foreign national who violates subsection (a). . (2)

Conforming amendments

Section 309(a) of such Act (2 U.S.C. 437g(a)) is amended— (A)in paragraph (5)(B), by striking If the Commission and inserting Subject to section 319(c) in the case of a violation of such section, if the Commission; and (B)in paragraph (6)(C), by striking In any civil action and inserting Subject to section 319(c) in the case of a violation of such section, in any civil action.

3.

Effective Date

The amendments made by this Act shall apply with respect to contributions, donations, expenditures, independent expenditures, and disbursements for electioneering communications under the Federal Election Campaign Act of 1971 which are made on or after the date of the enactment of this Act.