[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 791 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 791

  To amend the Federal Election Campaign Act of 1971 and the Internal 
  Revenue Code of 1986 to require the disclosure of contributions and 
expenditures for independent Federal election-related activity, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 2013

  Mr. Wyden (for himself and Ms. Murkowski) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Election Campaign Act of 1971 and the Internal 
  Revenue Code of 1986 to require the disclosure of contributions and 
expenditures for independent Federal election-related activity, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Follow the Money 
Act of 2013''.
    (b) Table of Contents.--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.

   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.

    (a) Definitions.--Section 7701(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraphs:
            ``(51) Independent federal election-related activity 
        expenditure.--
                    ``(A) In general.--The term `independent Federal 
                election-related activity expenditure' means--
                            ``(i) any expenditure that--
                                    ``(I) 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
                                    ``(II) 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
                            ``(ii) 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).
                    ``(B) Regulations and advisory opinions.--For 
                authority with respect joint regulations and advisory 
                opinions, see section 301 of the Follow the Money Act 
                of 2013.
                    ``(C) Other terms.--For purposes of this paragraph, 
                the terms `candidate', `Federal office', `election', 
                and `public communication' have the meaning given such 
                terms under section 301 of the Federal Election 
                Campaign Act of 1971.
            ``(52) Covered contribution.--
                    ``(A) In general.--The term `covered contribution' 
                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.
                    ``(B) Exceptions.--A receipt from another person 
                shall not be taken into account under subparagraph 
                (A)--
                            ``(i) if such receipt occurred in a 
                        commercial transaction in the ordinary course 
                        of business;
                            ``(ii) 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
                            ``(iii) if such receipt was derived from 
                        investments made by the independent political 
                        actor (as so defined).
                    ``(C) Regulations and advisory opinions.--For 
                authority with respect joint regulations and advisory 
                opinions, see section 301 of the Follow the Money Act 
                of 2013.''.
    (b) Registration and Reporting.--Title III of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431) is amended--
            (1) by inserting before section 301 the following:

             ``Subtitle A--Funds Provided to Candidates'',

        and
            (2) by adding at the end the following new subtitle:

  ``Subtitle B--Disclosure of Other Election-related Expenditures and 
                                Receipts

``SEC. 351. DEFINITIONS.

    ``In this subtitle:
            ``(1) Independent political actor.--
                    ``(A) In general.--The term `independent political 
                actor' means, with respect to any Federal election 
                cycle, any person that--
                            ``(i) makes independent Federal election-
                        related activity expenditures of $10,000 or 
                        more during such Federal election cycle;
                            ``(ii) receives contributions which--
                                    ``(I) are intended by the 
                                transferor and understood by the 
                                recipient to be substantially used for 
                                making Independent Federal election-
                                related activity expenditures, and
                                    ``(II) aggregate $10,000 or more 
                                during such Federal election cycle; or
                            ``(iii) makes qualified solicitations to 
                        500 or more persons during such Federal 
                        election cycle.
                For purposes of clause (iii), the term `qualified 
                solicitation' 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.
                    ``(B) Exclusion of candidate-only political 
                committees.--The term `independent political actor' 
                shall not include any political committee that 
                exclusively makes contributions (whether direct, in-
                kind, or via coordinated communications) to candidates.
            ``(2) Federal election cycle.--The term `Federal election 
        cycle' means the period beginning on January 1 of any odd 
        numbered year and ending on December 31 of the following year.
            ``(3) Independent federal election-related activity 
        expenditure.--The term `independent Federal election-related 
        activity expenditure' has the meaning given such term under 
        section 7701(51) of the Internal Revenue Code of 1986.
            ``(4) Covered contribution.--The term `covered 
        contribution' has the meaning given such term under section 
        7701(52) of the Internal Revenue Code of 1986.

``SEC. 352. ORGANIZATION OF INDEPENDENT POLITICAL ACTORS.

    ``(a) Personnel.--
            ``(1) In general.--Each independent political actor shall 
        designate--
                    ``(A) a treasurer; and
                    ``(B) a responsible individual.
            ``(2) Treasurer.--As provided by the Commission in 
        regulations--
                    ``(A) 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
                    ``(B) rules similar to the rules of section 302(i) 
                shall apply.
            ``(3) Joint and several liability.--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.
    ``(b) Organization of Accounts of Independent Political Actors.--
            ``(1) Safe harbor account.--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--
                    ``(A) $1,000; or
                    ``(B) the amount of covered contributions 
                (including dues) received from such person.
            ``(2) Supplemental contributions account.--Each independent 
        political actor may elect to have a segregated supplemental 
        contribution account consisting of the dues and other covered 
        contributions that--
                    ``(A) are received in that account; and
                    ``(B) are to be used only for the purpose of making 
                independent Federal election-related activity 
                expenditures.

``SEC. 353. REGISTRATION.

    ``(a) In General.--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).
    ``(b) Contents of Registration Statement.--The registration 
statement shall include the following:
            ``(1) Registrant information.--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.
            ``(2) Method for reporting contributions.--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:
                    ``(A) All receipts.--A method under which the 
                independent political actor elects to report all 
                covered contributions received during the Federal 
                election cycle.
                    ``(B) Use of safe harbor contribution account.--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.
                    ``(C) Use of supplemental contribution accounts.--A 
                method under which the independent political actor--
                            ``(i) elects to make independent Federal 
                        election-related expenditures only from amounts 
                        allocated to the supplemental contributions 
                        account of such independent political actor; 
                        and
                            ``(ii) reports all covered contributions 
                        made to the supplemental contribution account 
                        of such independent political actor.
                    ``(D) Use of safe harbor and supplemental 
                contribution accounts.--A method under which the 
                independent political actor--
                            ``(i) 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
                            ``(ii) reports all covered contributions 
                        made to the supplemental contribution account 
                        of such independent political actor.
                    ``(E) Alternative allocation plan.--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.
        An election under this subsection shall apply to a Federal 
        election cycle and shall be irrevocable for such Federal 
        election cycle.
    ``(c) Registration Number.--The Commission shall designate a 
registration number for each independent political actor registered 
under this subsection.
    ``(d) Amendments.--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.

``SEC. 354. REPORTING BY INDEPENDENT POLITICAL ACTORS.

    ``(a) Requirement To File.--
            ``(1) In general.--Every treasurer of an independent 
        political actor shall file a statement with the Commission 
        containing the information described in subsection (b).
            ``(2) Timing of reporting.--
                    ``(A) In general.--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.
                    ``(B) Covered contributions.--
                            ``(i) In general.--On and after the date 
                        the Commission establishes the instant 
                        disclosure system described in section 103(a) 
                        of the Follow the Money Act of 2013, 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).
                            ``(ii) Timing of reporting.--The statement 
                        required to be made under clause (i) shall be 
                        filed with the Commission--
                                    ``(I) 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;
                                    ``(II) in the case of a covered 
                                contribution made by credit card or 
                                debit card, within 48 hours of the 
                                receipt of such contribution; and
                                    ``(III) in any other case, within 
                                10 days of the receipt of such 
                                contribution.
                            ``(iii) Contents of statement.--Each 
                        statement required to be filed under this 
                        clause shall contain the information required 
                        under subsection (b)(2).
    ``(b) Contents of Statement.--Each statement required to be filed 
under this subsection shall contain the following:
            ``(1) Independent federal election-related activity 
        expenditures.--With respect to each independent Federal 
        election-related activity expenditure made by the person--
                    ``(A) The date and amount of such expenditure.
                    ``(B) The name and address of the person to whom 
                such expenditure is made.
                    ``(C) The purpose of the expenditure.
                    ``(D) Whether such expenditure is in support of, or 
                in opposition to, a candidate, as well as the name and 
                office sought by such candidate.
                    ``(E) Whether the source of any Federal-related 
                activity expenditures was from--
                            ``(i) the safe harbor account of the 
                        independent political actor,
                            ``(ii) a supplemental contributions account 
                        of the independent political actor, or
                            ``(iii) another source.
            ``(2) Covered contributions.--
                    ``(A) In general.--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.
                            ``(i) All receipts method.--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.
                            ``(ii) Supplemental contributions 
                        accounts.--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.
                            ``(iii) Alternative allocation plan.--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.
                    ``(B) Look through reporting for certain 
                transfers.--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 
                `transferor') 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.
    ``(c) Confidentiality Protections.--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--
            ``(1) the aggregate such contributions made by such person 
        was $5,000 or less; and
            ``(2) 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.

``SEC. 355. ENFORCEMENT.

    ``For purposes of section 309--
            ``(1) a violation of section 354(a) shall be treated as a 
        violation of section 304(a) for purposes of subsection (4)(C) 
        thereof, and
            ``(2) 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.''.
    (c) Coordination With Existing Requirements.--
            (1) Definition of political committee.--Section 301(4) of 
        the Federal Election Campaign Act of 1971 (2 U.S.C. 434(4)) is 
        amended by adding at the end the following flush sentence:
        ``Such term shall not include any person who is an independent 
        political actor, as defined in section 351(1).''.
            (2) Prohibition on transfer of funds from political 
        committees.--Section 313(b) of such Act (2 U.S.C. 439a(b)) is 
        amended by adding at the end the following new paragraph:
            ``(3) Transfers for independent federal election-related 
        activity expenditures.--A contribution to a political committee 
        may not be--
                    ``(A) transferred to a safe harbor account or a 
                supplemental contribution account of an independent 
                political actor (as defined by section 351); or
                    ``(B) otherwise used for an independent Federal 
                election-related activity expenditure (as defined in 
                section 351).''.
            (3) Termination of duplicate reporting requirements.--
                    (A) Independent expenditures.--
                            (i) In general.--Section 304(c) of such Act 
                        (2 U.S.C. 434(c)) is amended by adding at the 
                        end the following new paragraph:
            ``(4) Termination.--This subsection shall not apply to 
        expenditures made after December 31, 2014.''.
                            (ii) Conforming amendment.--Section 304((g) 
                        of such Act (2 U.S.C. 434(g)) is amended by 
                        adding at the end the following new paragraph:
            ``(5) Termination.--This subsection shall not apply to 
        expenditures made after December 31, 2014.''.
                    (B) Electioneering communications.--Section 304(f) 
                of such Act (2 U.S.C. 434(f)) is amended by adding at 
                the end the following new paragraph:
            ``(8) Termination.--Paragraph (1) shall not apply to 
        expenditures made after December 31, 2014.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to contributions and expenditures made after December 31, 2014.

SEC. 102. INCREASE IN REPORTING THRESHOLDS FOR CANDIDATE ONLY POLITICAL 
              COMMITTEES.

    (a) In General.--Subparagraphs (A) and (F) of section 304(b)(3) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(3)(A)) are 
each amended by striking `` in excess of $200'' and inserting ``in 
excess of $1,000''.
    (b) Political Committees.--Paragraph (3) of section 304(e) of such 
Act (2 U.S.C. 434(e)) is amended to read as follows:
            ``(3) Itemization.--If a political committee has--
                    ``(A) receipts to which this subsection applies 
                from any person in excess of $200 for any calendar 
                year, or
                    ``(B) disbursements to which this subsection 
                applies to any person in excess of $1,000 for any 
                calendar year,
        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).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions and expenditures made after December 31, 2014.

SEC. 103. INSTANT DISCLOSURE SYSTEM FOR CONTRIBUTIONS.

    (a) In General.--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 (2 U.S.C. 434) 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.
    (b) Use of System by Political Committees.--Section 304(a) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 434) is amended by 
adding at the end the following new paragraph:
            ``(13) Reporting of contributions for certain political 
        committees.--
                    ``(A) In general.--On and after the date the 
                Commission establishes the instant disclosure system 
                described in section 103(a) of the Follow the Money Act 
                of 2013, 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).
                    ``(B) Timing of reporting.--The statement required 
                to be made under subparagraph (A) shall be filed with 
                the Commission--
                            ``(i) 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;
                            ``(ii) in the case of a reportable 
                        contribution made by credit card or debit card, 
                        within 48 hours of the receipt of such 
                        contribution; and
                            ``(iii) in any other case, within 10 days 
                        of the receipt of such contribution.
                    ``(C) Contents of statement.--Each statement 
                required to be filed under this subsection shall 
                contain--
                            ``(i) the identification of the person who 
                        made the contribution, and
                            ``(ii) the date and amount of each 
                        contribution made by such person during the 
                        federal election cycle.
                    ``(D) Reportable contribution.--For purposes of 
                this paragraph, the term `reportable contribution' 
                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.''.

SEC. 104. MODIFICATION OF RULES RELATING TO DISCLAIMER STATEMENTS 
              REQUIRED FOR CERTAIN COMMUNICATIONS.

    (a) Applying Requirements to All Independent Federal Election-
Related Activity Expenditures.--Section 318(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441d(a)) is amended by striking `` 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'' and inserting ``whenever an independent 
political actor makes a independent Federal election-related activity 
expenditure consisting of a public communication, or whenever any 
person''.
    (b) Stand by Your Ad Requirements.--
            (1) Maintenance of existing requirements for communications 
        by political parties and other political committees.--Section 
        318(d)(2) of such Act (2 U.S.C. 441d(d)(2)) is amended--
                    (A) in the heading, by striking ``others'' and 
                inserting ``political committees'';
                    (B) by striking ``subsection (a)'' and inserting 
                ``subsection (a) which is paid for by a political 
                committee (including a political committee of a 
                political party)''; and
                    (C) by striking ``or other person'' each place it 
                appears.
            (2) Special disclaimer requirements for radio and 
        television communications.--Section 318 of such Act (2 U.S.C. 
        441d) is amended by adding at the end the following new 
        subsection:
    ``(e) Communications by Others.--
            ``(1) In general.--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:
                    ``(A) The name of the independent political actor, 
                conveyed by audio.
                    ``(B) The registration number of the independent 
                political actor, conveyed by audio.
                    ``(C) 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.
            ``(2) Top 3 funders.--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.
            ``(3) Manner of statement.--The information required under 
        paragraph (1)''.
            (3) Application to certain mass mailings.--Section 
        318(a)(3) of such Act (2 U.S.C. 441d(a)(3)) is amended to read 
        as follows:
            ``(3) if not authorized by a candidate, an authorized 
        political committee of a candidate, or its agents, shall 
        clearly state--
                    ``(A) the name and permanent street address, 
                telephone number, and, if applicable, the World Wide 
                Web address of the person who paid for the 
                communication;
                    ``(B) if the communication is a independent Federal 
                election-related activity expenditure made by an 
                independent political actor--
                            ``(i) the name, registration number, and 
                        permanent street address, telephone number, 
                        and, if applicable, the World Wide Web address 
                        of the independent political actor;
                            ``(ii) the name of the treasurer of the 
                        independent political actor; and
                            ``(iii) 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
                    ``(C) that the communication is not authorized by 
                any candidate or candidate's committee.''.
            (4) Application to political robocalls.--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:
    ``(f) Special Rules for Political Robocalls.--
            ``(1) Requiring communications to include certain 
        disclaimer statements.--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:
                    ``(A) The name and city and state of residence of 
                the independent political actor.
                    ``(B) The registration number of the independent 
                political actor.
                    ``(C) 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.
                    ``(D) The top 3 funders with respect to the 
                registrant (as described in subsection (e)(2)).
            ``(2) Timing of certain statement.--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.
            ``(3) Political robocall defined.--In this subsection, the 
        term `political robocall' means any outbound telephone call--
                    ``(A) in which a person is not available to speak 
                with the person answering the call, and the call 
                instead plays a recorded message; and
                    ``(B) which promotes, supports, attacks, or opposes 
                a candidate for election for Federal office.''.
            (5) Additional authority.--
                    (A) In general.--Section 318 of such Act (2 U.S.C. 
                441d), as amended by paragraph (4), is further amended 
                by adding at the end the following new subsection:
    ``(g) Certain Requirements Determined by the Commission.--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.''.
                    (B) Rulemaking.--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.
    (c) Effective Date.--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.

SEC. 105. STATEMENTS DISAVOWING COMMUNICATIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by this Act, is amended by adding at the end the 
following new subsection:
    ``(k) Statements of Disavowal.--
            ``(1) In general.--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.
            ``(2) Publication of statement.--The Commission shall make 
        such statement publicly available on the Commission's 
        website.''.

SEC. 106. FILING BY SENATE CANDIDATES WITH COMMISSION.

    (a) In General.--Section 302(g) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 432(g)) is amended to read as follows:
    ``(g) Filing With the Commission.--All designations, statements, 
and reports required to be filed under this Act shall be filed with the 
Commission.''.
    (b) Effective Date.--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.

 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.

    (a) In General.--Chapter 42 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subchapter:

          ``Subchapter H--Reporting Election-related Activity

``Sec. 4968. Taxes on failure to report certain election-related 
                            activity.

``SEC. 4968. TAXES ON FAILURE TO REPORT CERTAIN ELECTION-RELATED 
              ACTIVITY.

    ``(a) In General.--
            ``(1) On the organization.--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.
            ``(2) On the responsible person.--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\1/2\ 
        percent of the amount thereof. The tax imposed by this 
        paragraph shall be paid by the responsible individual.
    ``(b) Failures To Report Described in This Subsection.--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.
    ``(c) Reduction in Amount of Tax.--
            ``(1) Taxes on the organization.--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)--
                    ``(A) under any conciliation agreement with the 
                Federal Election Commission under section 309 of the 
                Federal Election Campaign Act of 1971, or
                    ``(B) under a civil penalty imposed by the 
                Commission.
            ``(2) Taxes on the responsible individual.--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)--
                    ``(A) under any conciliation agreement with the 
                Federal Election Commission under section 309 of the 
                Federal Election Campaign Act of 1971, or
                    ``(B) under a civil penalty imposed by the 
                Commission.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Covered tax-exempt organization.--The term `covered 
        tax-exempt organization' means any organization which--
                    ``(A) without regard to any failure described in 
                subsection (b)--
                            ``(i) would be described in section 501(c) 
                        and exempt from taxation under section 501(a), 
                        or
                            ``(ii) is a political organization (as 
                        defined in section 527), and
                    ``(B) is an independent political actor (as defined 
                in section 351(1) of such Act).
            ``(2) Responsible individual.--The term `responsible 
        individual' 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.
    ``(e) Abatement.--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.''.
    (b) Conforming Amendment.--The table of subchapters for chapter 42 
of such Code is amended by adding at the end the following new item:

         ``subchapter h--reporting election-related activity''.

    (c) Effective Date.--The amendments made by this section shall 
apply to contributions and expenditures made after December 31, 2014.

SEC. 202. LOSS OF TAX-EXEMPT STATUS FOR CERTAIN ORGANIZATIONS FAILING 
              TO REGISTER OR REPORT ELECTION-RELATED EXPENDITURES AND 
              CONTRIBUTIONS.

    (a) In General.--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:

``SEC. 506. REQUIREMENT TO REGISTER AND REPORT INDEPENDENT FEDERAL 
              ELECTION-RELATED ACTIVITY EXPENDITURES.

    ``(a) In General.--
            ``(1) Loss of tax-exempt status.--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.
            ``(2) Time of loss of exemption.--The date described in 
        this paragraph is the date on which the first failure described 
        in paragraph (1) occurred.
    ``(b) Exceptions.--
            ``(1) Safe harbor.--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.
            ``(2) Best efforts.--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.
    ``(c) Denial of Reinstatement.--Any organization to which 
subsection (a) applies, and any responsible individual with respect to 
such organization (as defined in section 4968(d)(2))--
            ``(1) shall not be eligible to apply for exemption from 
        taxation under section 501(a), and
            ``(2) shall not be treated as a political organization 
        under section 527,
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.
    ``(d) Reasonable Cause Exception.--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.''.
    (b) Conforming Amendments.--
            (1) Section 501(a) of such Code is amended by striking ``or 
        503'' and inserting ``503, or 506''.
            (2) 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:

``Sec. 506. Requirement to register and report independent Federal 
                            election-related activity expenditures.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions and expenditures made after December 31, 2014.

SEC. 203. SECTION 527 POLITICAL ORGANIZATIONS REQUIRED TO FILE WITH 
              FEC.

    Section 527(j) of such Code is amended by adding at the end the 
following new paragraph:
            ``(8) Nonapplication to independent political actors.--
                    ``(A) In general.--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)--
                            ``(i) such political organization shall 
                        file statements and reports in accordance with 
                        section 354 of the Federal Election Campaign 
                        Act of 1971, and
                            ``(ii) this subsection shall not apply with 
                        respect to information required to be included 
                        on such statements.
                    ``(B) Cross-reference.--For failure to meet the 
                requirements of subparagraph (A), see sections 506 and 
                4968.''.

SEC. 204. APPLICATION OF WHISTLEBLOWER PROTECTIONS.

    Paragraph (5) of section 7623(b) of the Internal Revenue Code of 
1986 is amended by striking ``any action'' and inserting ``any action 
which relates to a violation of section 506 or to any other action''.

                      TITLE III--OTHER PROVISIONS

SEC. 301. JOINT REGULATORY AUTHORITY AND ADVISORY OPINIONS.

    (a) Regulations and Forms.--
            (1) Joint regulations.--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--
                    (A) the definitions of the terms ``independent 
                Federal election-related activity expenditure'' and 
                ``covered contribution'', 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
                    (B) 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.
            (2) Treasury regulations.--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.
            (3) Rule of construction.--The regulations promulgated 
        under this subsection shall prescribe that the substance of any 
        transaction shall control over the form of the transaction.
    (b) Advisory Opinions.--
            (1) In general.--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).
            (2) User fees.--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.
            (3) Sense of congress.--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.

SEC. 302. DENIAL OF BUSINESS EXPENSE DEDUCTIONS FOR CERTAIN BUSINESSES 
              FAILING TO REPORT DONATIONS AND INDEPENDENT FEDERAL 
              ELECTION-RELATED ACTIVITY EXPENDITURES.

    (a) Denial of Deduction for Election-Related Activity 
Expenditures.--
            (1) In general.--Paragraph (1) of section 162(e) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(1) In general.--No deduction shall be allowed under 
        subsection (a) for--
                    ``(A) any independent Federal election-related 
                activity expenditure (as defined in section 
                7701(a)(51)), or
                    ``(B) any amount paid or incurred in connection 
                with--
                            ``(i) influencing legislation,
                            ``(ii) participation in, or intervention 
                        in, any political campaign on behalf of (or in 
                        opposition to) any candidate for public office,
                            ``(iii) any attempt to influence the 
                        general public, or segments thereof, with 
                        respect to elections, legislative matters, or 
                        referendums, or
                            ``(iv) any direct communication with a 
                        covered executive branch official in an attempt 
                        to influence the official actions or positions 
                        of such official.''.
            (2) Conforming amendments.--
                    (A) Section 162(e)(2)(A) of such Code is amended by 
                striking ``paragraph (1)(A)'' and inserting ``paragraph 
                (1)(B)(i)''.
                    (B) Section 162(e)(5)(B) of such Code is amended by 
                striking ``paragraph (1)(A) and (D)'' each place it 
                appears and inserting ``paragraph (1)(B)(i) and (iv)''.
                    (C) Section 6033(e)(1)(B)(ii) of such Code is 
                amended by striking ``subparagraphs (A) and (D) of 
                section 162(e)(1)'' and inserting ``clauses (i) and 
                (iv) of section 162(e)(1)(B)''.
    (b) Exception to Allowance of Deduction for Amounts Expended on 
Behalf of Another Person.--Subparagraph (A) of section 162(e)(5) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``In the case of'' and inserting the 
        following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), in the case of'', and
            (2) by adding at the end the following new clauses:
                            ``(ii) Exception not to apply with respect 
                        to certain organizations failing to file 
                        reports.--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.''.
    (c) Penalty for Improperly Claiming Deduction.--
            (1) In general.--Section 6662(b) of the Internal Revenue 
        Code of 1986 is amended by inserting after paragraph (7) the 
        following new paragraph:
            ``(8) Any improper independent Federal election-related 
        activity expenditure deduction.''.
            (2) Improper election-related activity expenditure 
        deduction.--Section 6662 of such Code is amended by adding at 
        the end the following new subsection:
    ``(k) Improper Independent Federal Election-related Activity 
Expenditure Deduction.--For purposes of this subsection, the term 
`improper independent Federal election-related activity expenditure 
deduction' 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.''.
    (d) Certification of Compliance on Tax Return.--
            (1) In general.--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:
            ``(1) Has the taxpayer made a independent Federal election-
        related activity expenditure (as defined in section 7701(a)(51) 
        of the Internal Revenue Code of 1986) during the period covered 
        by the tax return?
            ``(2) Has the taxpayer claimed a deduction for any 
        independent Federal election-related activity expenditure (as 
        so defined) on the tax return?''.
            (2) Penalty.--Section 7207 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        sentence: ``Any person required to provide an answer with 
        respect to election-related activity expenditures pursuant to 
        section 303(d)(1) of the Follow the Money Act of 2013 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.''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2014.
            (2) Certification and penalty.--The amendments made by 
        subsection (d) shall apply to returns required to be filed 
        after December 31, 2014.

SEC. 303. PROHIBITION ON DISCRIMINATION AGAINST DONORS.

    Chapter 43 of title 18, United States Code, is amended by adding at 
the end the following new section:

``SEC. 1925. PROHIBITION ON DISCRIMINATION AGAINST DONORS IN CONNECTION 
              WITH FEDERAL ELECTIONS.

            ``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.''.

SEC. 304. SEVERABILITY.

    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.
                                 <all>