I 111th CONGRESS 2d Session H. R. 4644 IN THE HOUSE OF REPRESENTATIVES February 22, 2010 Mr. Sestak 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 prohibit a corporation from making any independent expenditure or disbursing funds for any electioneering communication without obtaining the prior approval of a majority of its shareholders, and for other purposes.

1.

Short Title

This Act may be cited as the Fairness in Corporate Campaign Spending Act of 2010.

2.

Requiring Prior Shareholder Approval for Campaign Spending by Corporations

(a)

Prior Approval Required

Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended by inserting after section 316 the following new section:

316A.

Prior Approval of Shareholders Required for Certain Spending by Corporations

(a)

Prior Approval Required

A corporation may not make any disbursement for an independent expenditure or an electioneering communication under this Act during a year unless— (1)at the most recent annual meeting of the corporation’s shareholders, the corporation presented to the shareholders a proposal that the corporation make disbursements for such purposes during the year; and (2)a majority of its shareholders voted to approve the proposal. (b)

Personal Liability for Payment of Additional Penalty

In addition to any other penalty which may be imposed under this Act, if a corporation makes a disbursement in violation of this section, each officer and director of the corporation shall be personally liable for payment of a civil money penalty in an amount equal to the amount of the disbursement involved. (c)

Exception for Disbursements Below Threshold

This section does not apply with respect to a disbursement referred to in subsection (a) which is made by a corporation during a year if the aggregate amount of all such disbursements made by the corporation during the year— (1)is less than $8,000, in the case of a corporation with fewer than 100 full-time-equivalent employees (determined as of the date of the most recent annual meeting of the corporation’s shareholders); or (2)is less than $20,000, in the case of any other corporation. (d)

No Affect on Political Committees of Corporations

Nothing in this section shall be construed to affect disbursements by a separate segregated fund established by a corporation under section 316(b)(2)(C).

. (b)

Effective Date; Transition for Disbursements Made in 2010

(1)

Effective Date

The amendment made by subsection (a) shall apply with respect to disbursements made on or after the date of the enactment of this Act. (2)

Transition

Notwithstanding paragraph (1), a corporation shall be deemed to meet the applicable requirements of section 316A of the Federal Election Campaign Act of 1971 (as added by subsection (a)) with respect to a disbursement made during 2010 if, not later than 60 days after the date of the enactment of this Act— (A)the corporation presents to its shareholders a proposal described in section 316A(a)(1) of such Act for 2010; and (B)a majority of the corporation’s shareholders vote to approve the proposal.