[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5641 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5641

   To amend the Federal Election Campaign Act of 1971 to clarify the 
 treatment of coordinated expenditures as contributions to candidates, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2014

Mr. Price of North Carolina (for himself and Mr. Van Hollen) 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 clarify the 
 treatment of coordinated expenditures as contributions to candidates, 
                        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. CLARIFICATION OF TREATMENT OF COORDINATED EXPENDITURES AS 
              CONTRIBUTIONS TO CANDIDATES.

    (a) Treatment as Contribution to Candidate.--Section 301(8)(A) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 30101(8)(A)) is 
amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                    ``(iii) any payment made by any person (other than 
                a candidate, an authorized committee of a candidate, or 
                a political committee of a political party) for a 
                coordinated expenditure (as such term is defined in 
                section 324) which is not otherwise treated as a 
                contribution under clause (i) or clause (ii).''.
    (b) Definitions.--Section 324 of such Act (2 U.S.C. 30126) is 
amended to read as follows:

``SEC. 324. PAYMENTS FOR COORDINATED EXPENDITURES.

    ``(a) Coordinated Expenditures.--
            ``(1) In general.--For purposes of section 301(8)(A)(iii), 
        the term `coordinated expenditure' means--
                    ``(A) any expenditure, including a payment for a 
                covered communication described in subsection (d), 
                which is made in cooperation, consultation, or concert 
                with, or at the request or suggestion of, a candidate, 
                an authorized committee of a candidate, a political 
                committee of a political party, or agents of the 
                candidate or committee, as provided in subsection (b); 
                or
                    ``(B) any payment for any communication which 
                republishes, disseminates, or distributes, in whole or 
                in part, any broadcast or any written, graphic, or 
                other form of campaign material prepared by the 
                candidate or committee or by agents of the candidate or 
                committee.
            ``(2) Exception for payments for certain communications.--A 
        payment for a communication (including a covered communication 
        described in subsection (d) shall not be treated as a 
        coordinated expenditure under this subsection if--
                    ``(A) the communication appears in a news story, 
                commentary, or editorial distributed through the 
                facilities of any broadcasting station, newspaper, 
                magazine, or other periodical publication, unless such 
                facilities are owned or controlled by any political 
                party, political committee, or candidate; or
                    ``(B) the communication constitutes a candidate 
                debate or forum conducted pursuant to regulations 
                adopted by the Commission pursuant to section 
                304(f)(3)(B)(iii), or which solely promotes such a 
                debate or forum and is made by or on behalf of the 
                person sponsoring the debate or forum.
    ``(b) Coordination Described.--
            ``(1) In general.--For purposes of this section, a payment 
        is made `in cooperation, consultation, or concert with, or at 
        the request or suggestion of,' a candidate, an authorized 
        committee of a candidate, a political committee of a political 
        party, or agents of the candidate or committee, if the payment 
        is not made entirely independently of the candidate, committee, 
        or agents, including a payment which is made pursuant to any 
        general or particular understanding, or more than incidental 
        communication with, the candidate, committee, or agents about 
        the payment.
            ``(2) No finding of coordination based solely on sharing of 
        information regarding legislative or policy position.--For 
        purposes of this section, a payment shall not be considered to 
        be made by a person in cooperation, consultation, or concert 
        with, or at the request or suggestion of, a candidate or 
        committee, solely on the grounds that the person or the 
        person's agent engaged in discussions with the candidate or 
        committee, or with agents of the candidate or committee, 
        regarding that person's position on a legislative or policy 
        matter (including urging the candidate or committee to adopt 
        that person's position), so long as there is no discussion 
        between the person and the candidate or committee, or agents of 
        the candidate or committee, regarding the candidate's or 
        committee's campaign advertising, message, strategy, policy, 
        polling, allocation of resources, fundraising, or campaign 
        operations.
            ``(3) No effect on party coordination standard.--Nothing in 
        this section shall be construed to affect the determination of 
        coordination between a candidate and a political committee of a 
        political party for purposes of section 315(d).
            ``(4) No safe harbor for use of firewall.--A person shall 
        be determined to have made a payment in cooperation, 
        consultation, or concert with, or at the request or suggestion 
        of, a candidate or committee, in accordance with this section 
        without regard to whether or not the person established and 
        used a firewall or similar procedures to restrict the sharing 
        of information between individuals providing services for or on 
        behalf of the person and the candidate or committee or agents 
        of the candidate or committee.
    ``(c) Special Rule for Payments by Coordinated Spenders for Covered 
Communications.--
            ``(1) Payments deemed to be made in cooperation, 
        consultation, or concert with, candidates.--For purposes of 
        this section, if the person who makes a payment for a covered 
        communication is a coordinated spender with respect to the 
        candidate involved, the person shall be deemed to have made the 
        payment in cooperation, consultation, or concert with the 
        candidate.
            ``(2) Coordinated spender defined.--For purposes of this 
        subsection, the term `coordinated spender' means, with respect 
        to a candidate or an authorized committee of a candidate, a 
        person (other than a political committee of a political party) 
        for which any of the following applies:
                    ``(A) The person is directly or indirectly formed 
                or established by or at the request or suggestion of, 
                or with the encouragement of, the candidate or 
                committee or agents of the candidate or committee, 
                including with the express or tacit approval of the 
                candidate or committee or agents of the candidate or 
                committee.
                    ``(B) The candidate or committee or agents of the 
                candidate or committee solicit funds or engage in other 
                fundraising activity on the person's behalf during the 
                election cycle involved, including by providing the 
                person with names of potential donors or other lists to 
                be used by the person in engaging in fundraising 
                activity, regardless of whether the person pays fair 
                market value for the names or lists provided.
                    ``(C) The person is established, directed, or 
                managed by any person who, during the election cycle 
                involved or during the 4-year period ending on the 
                first day of the election cycle involved, has been 
                employed or retained as a political, media, or 
                fundraising adviser or consultant for the candidate or 
                committee or for any other entity directly or 
                indirectly controlled by the candidate or committee, or 
                has held a formal position with a title for the 
                candidate or committee.
                    ``(D) During the election cycle involved, the 
                person has had more than incidental communications with 
                the candidate or committee or agents of the candidate 
                or committee about the candidate's campaign needs or 
                activities, or about the person's possible or actual 
                campaign activities with respect to the candidate or 
                committee.
                    ``(E) The person has retained the professional 
                services of any person who, during the same election 
                cycle, has provided or is providing professional 
                services relating to the campaign to the candidate or 
                committee. For purposes of this subparagraph, the term 
                `professional services' includes any services in 
                support of the candidate's or committee's campaign 
                activities, including advertising, message, strategy, 
                policy, polling, allocation of resources, fundraising, 
                and campaign operations, but does not include 
                accounting or legal services.
                    ``(F) The person is established, directed, or 
                managed by a member of the immediate family of the 
                candidate, or (in the case of a person that is a 
                political committee) has received a contribution from a 
                member of the immediate family of the candidate. For 
                purposes of this subparagraph, the term `immediate 
                family' has the meaning given such term in section 
                9004(e) of the Internal Revenue Code of 1986.
            ``(3) Limitation.--Paragraph (2) shall apply to a person 
        with respect to a candidate or authorized committee during a 
        calendar quarter only if 20 percent or more of that person's 
        total spending for covered communications in the period 
        beginning on the first day of the election cycle with respect 
        to the candidate or committee involved and ending on the first 
        day of that calendar quarter is attributable to--
                    ``(A) communications that promote or support that 
                candidate, or attack or oppose the opponent of that 
                candidate, in the case of covered communications 
                described in subsection (d)(1); and
                    ``(B) communications that refer to that candidate 
                or an opponent of that candidate, in the case of 
                covered communications described in subsection (d)(2).
    ``(d) Covered Communication Defined.--
            ``(1) In general.--For purposes of this section, the term 
        `covered communication' means, with respect to a candidate or 
        an authorized committee of a candidate, a public communication 
        (as defined in section 301(22)) which--
                    ``(A) promotes or supports the candidate, or 
                attacks or opposes an opponent of the candidate 
                (regardless of whether the communication expressly 
                advocates the election or defeat of a candidate or 
                contains the functional equivalent of express 
                advocacy); or
                    ``(B) refers to the candidate or an opponent of the 
                candidate but is not described in subparagraph (A), but 
                only if the communication is disseminated during the 
                applicable election period.
            ``(2) Applicable election period.--In paragraph (1)(B), the 
        `applicable election period' with respect to a communication 
        means--
                    ``(A) in the case of a communication which refers 
                to a candidate for the office of President or Vice 
                President, the period which begins on the date that is 
                120 days before the date of the first primary election, 
                preference election, or nominating convention for 
                nomination for the office of President which is held in 
                any State and ends with the date of the general 
                election for such office; or
                    ``(B) in the case of a communication which refers 
                to a candidate for any other office, which begins on 
                the date that is 90 days before the primary or 
                preference election, or convention or caucus of a 
                political party that has authority to nominate a 
                candidate, for the office sought by the candidate and 
                ends on the date of the general election for such 
                office.
            ``(3) Special rules for communications involving 
        congressional candidates.--For purposes of this subsection, a 
        public communication shall not be considered to be a covered 
        communication with respect to a candidate for election for an 
        office other than the office of President or Vice President 
        unless it is publicly disseminated or distributed in the 
        jurisdiction of the office the candidate is seeking.
    ``(e) Election Cycle Defined.--In this section, the term `election 
cycle' means, with respect to an election for Federal office, the 
period beginning on the day after the date of the most recent general 
election for that office (or, if the general election resulted in a 
runoff election, the date of the runoff election) and ending on the 
date of the next general election for that office (or, if the general 
election resulted in a runoff election, the date of the runoff 
election).''.
    (c) Effective Date.--
            (1) Repeal of existing regulations on coordination.--
        Effective upon the expiration of the 90-day period which begins 
        on the date of the enactment of this Act--
                    (A) the regulations on coordinated communications 
                adopted by the Federal Election Commission which are in 
                effect on the date of the enactment of this Act (as set 
                forth in 11 CFR part 109, subpart C, under the heading 
                ``Coordination'') are repealed; and
                    (B) the Federal Election Commission shall 
                promulgate new regulations on coordinated 
                communications which reflect the amendments made by 
                this Act.
            (2) Effective date.--The amendments made by this section 
        shall apply with respect to payments made on or after the 
        expiration of the 120-day period which begins on the date of 
        the enactment of this Act, without regard to whether or not the 
        Federal Election Commission has promulgated regulations in 
        accordance with paragraph (1)(B) as of the expiration of such 
        period.

SEC. 2. CLARIFICATION OF BAN ON FUNDRAISING FOR SUPER PACS BY FEDERAL 
              CANDIDATES AND OFFICEHOLDERS.

    (a) In General.--Section 323(e)(1) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 30125(e)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) solicit, receive, direct, or transfer funds 
                to or on behalf of any political committee which 
                accepts donations or contributions that do not comply 
                with the limitations, prohibitions, and reporting 
                requirements of this Act (or to or on behalf of any 
                account of a political committee which is established 
                for the purpose of accepting such donations or 
                contributions), or to or on behalf of any political 
                organization under section 527 of the Internal Revenue 
                Code of 1986 which accepts such donations or 
                contributions (other than a committee of a State or 
                local political party or a candidate for election for 
                State or local office).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to elections occurring after January 1, 2015.
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