[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2977 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2977
To amend the Federal Election Campaign Act of 1971 to provide for
additional disclosure requirements for corporations, labor
organizations, Super PACs and other entities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2019
Mr. Cicilline (for himself, Mr. Aguilar, Mr. Allred, Mrs. Axne, Ms.
Barragan, Ms. Bass, Mrs. Beatty, Mr. Bera, Mr. Beyer, Mr. Blumenauer,
Ms. Blunt Rochester, Ms. Bonamici, Mr. Brendan F. Boyle of
Pennsylvania, Mr. Brindisi, Mr. Brown of Maryland, Ms. Brownley of
California, Mrs. Bustos, Mr. Carbajal, Mr. Cardenas, Mr. Case, Mr.
Casten of Illinois, Ms. Castor of Florida, Ms. Judy Chu of California,
Mr. Cisneros, Ms. Clark of Massachusetts, Ms. Clarke of New York, Mr.
Cleaver, Mr. Cohen, Mr. Cooper, Mr. Courtney, Mr. Cox of California,
Mrs. Craig, Mr. Crist, Mr. Crow, Mr. Cunningham, Ms. Davids of Kansas,
Mrs. Davis of California, Ms. Dean, Mr. DeFazio, Ms. DeGette, Ms.
DeLauro, Ms. DelBene, Mr. Delgado, Mrs. Demings, Mr. DeSaulnier, Mr.
Deutch, Mrs. Dingell, Mr. Doggett, Mr. Engel, Ms. Escobar, Ms. Eshoo,
Mr. Espaillat, Ms. Finkenauer, Ms. Frankel, Ms. Gabbard, Mr. Gallego,
Mr. Garamendi, Mr. Garcia of Illinois, Mr. Golden, Mr. Gomez, Mr. Green
of Texas, Mr. Grijalva, Ms. Haaland, Mr. Harder of California, Mr.
Hastings, Mrs. Hayes, Mr. Heck, Mr. Higgins of New York, Ms. Hill of
California, Mr. Himes, Ms. Kendra S. Horn of Oklahoma, Mr. Horsford,
Ms. Houlahan, Mr. Huffman, Ms. Jackson Lee, Ms. Jayapal, Ms. Johnson of
Texas, Mr. Johnson of Georgia, Ms. Kaptur, Ms. Kelly of Illinois, Mr.
Khanna, Mr. Kildee, Mr. Kilmer, Mr. Kim, Mr. Kind, Mrs. Kirkpatrick,
Mr. Krishnamoorthi, Ms. Kuster of New Hampshire, Mr. Lamb, Mr.
Langevin, Mr. Larson of Connecticut, Mrs. Lawrence, Ms. Lee of
California, Mrs. Lee of Nevada, Mr. Levin of Michigan, Mr. Levin of
California, Mr. Lipinski, Mr. Loebsack, Mr. Lowenthal, Mrs. Lowey, Mr.
Lujan, Mrs. Luria, Mr. Lynch, Mr. Malinowski, Mrs. Carolyn B. Maloney
of New York, Mr. Sean Patrick Maloney of New York, Ms. Matsui, Mr.
McAdams, Mrs. McBath, Ms. McCollum, Mr. McEachin, Mr. McGovern, Mr.
Meeks, Mr. Morelle, Mr. Moulton, Ms. Mucarsel-Powell, Mrs. Murphy, Mr.
Nadler, Mrs. Napolitano, Mr. Neguse, Mr. Norcross, Ms. Norton, Mr.
O'Halleran, Ms. Omar, Mr. Pallone, Mr. Panetta, Mr. Pappas, Mr.
Pascrell, Mr. Peters, Mr. Phillips, Mr. Pocan, Ms. Porter, Ms.
Pressley, Mr. Price of North Carolina, Mr. Quigley, Miss Rice of New
York, Mr. Rose of New York, Mr. Rouda, Ms. Roybal-Allard, Mr. Ruiz, Mr.
Ryan, Ms. Sanchez, Mr. Sarbanes, Ms. Scanlon, Ms. Schakowsky, Mr.
Schiff, Mr. Schrader, Ms. Schrier, Mr. Schneider, Mr. Scott of
Virginia, Mr. David Scott of Georgia, Mr. Serrano, Ms. Sherrill, Mr.
Sires, Mr. Smith of Washington, Ms. Spanberger, Ms. Speier, Mr.
Stanton, Ms. Stevens, Mr. Suozzi, Mr. Swalwell of California, Mr.
Takano, Mr. Thompson of California, Ms. Tlaib, Ms. Torres Small of New
Mexico, Mrs. Trahan, Mr. Van Drew, Mr. Vargas, Ms. Velazquez, Mrs.
Watson Coleman, Mr. Welch, Ms. Wild, and Mr. Yarmuth) introduced the
following bill; which was referred to the Committee on House
Administration, and in addition to the Committee on Ways and Means, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Federal Election Campaign Act of 1971 to provide for
additional disclosure requirements for corporations, labor
organizations, Super PACs and other entities, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Democracy Is
Strengthened by Casting Light On Spending in Elections Act of 2019'' or
the ``DISCLOSE Act of 2019''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--DISCLOSE ACT
Subtitle A--Regulation of Certain Political Spending
Sec. 101. Clarification of prohibition on participation by foreign
nationals in election-related activities.
Sec. 102. Clarification of application of foreign money ban to certain
disbursements and activities.
Sec. 103. Audit and report on illicit foreign money in Federal
elections.
Sec. 104. Prohibition on contributions and donations by foreign
nationals in connections with ballot
initiatives and referenda.
Sec. 105. Disbursements and activities subject to foreign money ban.
Subtitle B--Reporting of Campaign-Related Disbursements
Sec. 111. Reporting of campaign-related disbursements.
Sec. 112. Application of foreign money ban to disbursements for
campaign-related disbursements consisting
of covered transfers.
Sec. 113. Effective date.
TITLE II--STAND BY EVERY AD ACT
Sec. 201. Short title.
Sec. 202. Stand By Every Ad.
Sec. 203. Disclaimer requirements for communications made through
prerecorded telephone calls.
Sec. 204. No expansion of persons subject to disclaimer requirements on
Internet communications.
Sec. 205. Effective date.
TITLE III--OTHER PROVISIONS
Sec. 301. Severability.
TITLE I--DISCLOSE ACT
Subtitle A--Regulation of Certain Political Spending
SEC. 101. CLARIFICATION OF PROHIBITION ON PARTICIPATION BY FOREIGN
NATIONALS IN ELECTION-RELATED ACTIVITIES.
(a) Clarification of Prohibition.--Section 319(a) of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30121(a)) 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 foreign national to direct, dictate, control, or
directly or indirectly participate in the decision making
process of any person (including a corporation, labor
organization, political committee, or political organization)
with regard to such person's Federal or non-Federal election-
related activity, including any decision concerning the making
of contributions, donations, expenditures, or disbursements in
connection with an election for any Federal, State, or local
office or any decision concerning the administration of a
political committee.''.
(b) Certification of Compliance.--Section 319 of such Act (52
U.S.C. 30121) is amended by adding at the end the following new
subsection:
``(c) Certification of Compliance Required Prior To Carrying Out
Activity.--Prior to the making in connection with an election for
Federal office of any contribution, donation, expenditure, independent
expenditure, or disbursement for an electioneering communication by a
corporation, limited liability corporation, or partnership during a
year, the chief executive officer of the corporation, limited liability
corporation, or partnership (or, if the corporation, limited liability
corporation, or partnership does not have a chief executive officer,
the highest ranking official of the corporation, limited liability
corporation, or partnership), shall file a certification with the
Commission, under penalty of perjury, that a foreign national did not
direct, dictate, control, or directly or indirectly participate in the
decision making process relating to such activity in violation of
subsection (a)(3), unless the chief executive officer has previously
filed such a certification during that calendar year.''.
(c) Effective Date.--The amendments made by this section shall take
effect upon the expiration of the 180-day period which begins on the
date of the enactment of this Act, and shall take effect without regard
to whether or not the Federal Election Commission has promulgated
regulations to carry out such amendments.
SEC. 102. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN
DISBURSEMENTS AND ACTIVITIES.
(a) Application to Disbursements to Super PACs.--Section
319(a)(1)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30121(a)(1)(A)) is amended by striking the semicolon and inserting the
following: ``, including any disbursement to a political committee
which accepts donations or contributions that do not comply with the
limitations, prohibitions, and reporting requirements of this Act (or
any disbursement to or on behalf of any account of a political
committee which is established for the purpose of accepting such
donations or contributions);''.
(b) Conditions Under Which Corporate PACs May Make Contributions
and Expenditures.--Section 316(b) of such Act (52 U.S.C. 30118(b)) is
amended by adding at the end the following new paragraph:
``(8) A separate segregated fund established by a corporation may
not make a contribution or expenditure during a year unless the fund
has certified to the Commission the following during the year:
``(A) Each individual who manages the fund, and who is
responsible for exercising decisionmaking authority for the
fund, is a citizen of the United States or is lawfully admitted
for permanent residence in the United States.
``(B) No foreign national under section 319 participates in
any way in the decisionmaking processes of the fund with regard
to contributions or expenditures under this Act.
``(C) The fund does not solicit or accept recommendations
from any foreign national under section 319 with respect to the
contributions or expenditures made by the fund.
``(D) Any member of the board of directors of the
corporation who is a foreign national under section 319
abstains from voting on matters concerning the fund or its
activities.''.
SEC. 103. AUDIT AND REPORT ON ILLICIT FOREIGN MONEY IN FEDERAL
ELECTIONS.
(a) In General.--Title III of the Federal Election Campaign Act of
1971 (52 U.S.C. 30101 et seq.) is amended by inserting after section
319 the following new section:
``SEC. 319A. AUDIT AND REPORT ON DISBURSEMENTS BY FOREIGN NATIONALS.
``(a) Audit.--
``(1) In general.--The Commission shall conduct an audit
after each Federal election cycle to determine the incidence of
illicit foreign money in such Federal election cycle.
``(2) Procedures.--In carrying out paragraph (1), the
Commission shall conduct random audits of any disbursements
required to be reported under this Act, in accordance with
procedures established by the Commission.
``(b) Report.--Not later than 180 days after the end of each
Federal election cycle, the Commission shall submit to Congress a
report containing--
``(1) results of the audit required by subsection (a)(1);
and
``(2) recommendations to address the presence of illicit
foreign money in elections, as appropriate.
``(c) Definitions.--As used in this section:
``(1) The term `Federal election cycle' means the period
which begins on the day after the date of a regularly scheduled
general election for Federal office and which ends on the date
of the first regularly scheduled general election for Federal
office held after such date.
``(2) The term `illicit foreign money' means any
disbursement by a foreign national (as defined in section
319(b)) prohibited under such section.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to the Federal election cycle that began during
November 2018, and each succeeding Federal election cycle.
SEC. 104. PROHIBITION ON CONTRIBUTIONS AND DONATIONS BY FOREIGN
NATIONALS IN CONNECTIONS WITH BALLOT INITIATIVES AND
REFERENDA.
(a) In General.--Section 319(a)(1)(A) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30121(a)(1)(A)) is amended by striking
``election;'' and inserting the following: ``election, including a
State or local ballot initiative or referendum;''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to elections held in 2020 or any succeeding year.
SEC. 105. DISBURSEMENTS AND ACTIVITIES SUBJECT TO FOREIGN MONEY BAN.
(a) Disbursements Described.--Section 319(a)(1) of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)) is amended--
(1) by striking ``or'' at the end of subparagraph (B); and
(2) by striking subparagraph (C) and inserting the
following:
``(C) an expenditure;
``(D) an independent expenditure;
``(E) a disbursement for an electioneering
communication (within the meaning of section
304(f)(3));
``(F) a disbursement for a paid internet or paid
digital communication that refers to a clearly
identified candidate for election for Federal office
and is disseminated within 60 days before a general,
special or runoff election for the office sought by the
candidate or 30 days before a primary or preference
election, or a convention or caucus of a political
party that has authority to nominate a candidate for
the office sought by the candidate;
``(G) a disbursement for a broadcast, cable or
satellite communication, or for a paid internet or paid
digital communication, that promotes, supports, attacks
or opposes the election of a clearly identified
candidate for Federal, State, or local office
(regardless of whether the communication contains
express advocacy or the functional equivalent of
express advocacy) and is for the purpose of influencing
an election; or
``(H) a disbursement for a broadcast, cable, or
satellite communication, or for any communication which
is placed or promoted for a fee on an online platform,
that discusses a national legislative issue of public
importance in a year in which a regularly scheduled
general election for Federal office is held, but only
if the disbursement is made by a foreign principal who
is a government of a foreign country or a foreign
political party or an agent of such a foreign principal
under the Foreign Agents Registration Act of 1938, as
amended.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply with respect to disbursements made on or after the date of the
enactment of this Act.
Subtitle B--Reporting of Campaign-Related Disbursements
SEC. 111. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.
(a) Disclosure Requirements for Corporations, Labor Organizations,
and Certain Other Entities.--
(1) In general.--Section 324 of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30126) is amended to read as
follows:
``SEC. 324. DISCLOSURE OF CAMPAIGN-RELATED DISBURSEMENTS BY COVERED
ORGANIZATIONS.
``(a) Disclosure Statement.--
``(1) In general.--Any covered organization that makes
campaign-related disbursements aggregating more than $10,000 in
an election reporting cycle shall, not later than 24 hours
after each disclosure date, file a statement with the
Commission made under penalty of perjury that contains the
information described in paragraph (2)--
``(A) in the case of the first statement filed
under this subsection, for the period beginning on the
first day of the election reporting cycle (or, if
earlier, the period beginning one year before the first
such disclosure date) and ending on the first such
disclosure date; and
``(B) in the case of any subsequent statement filed
under this subsection, for the period beginning on the
previous disclosure date and ending on such disclosure
date.
``(2) Information described.--The information described in
this paragraph is as follows:
``(A) The name of the covered organization and the
principal place of business of such organization and,
in the case of a covered organization that is a
corporation (other than a business concern that is an
issuer of a class of securities registered under
section 12 of the Securities Exchange Act of 1934 (15
U.S.C. 78l) or that is required to file reports under
section 15(d) of that Act (15 U.S.C. 78o(d))) or an
entity described in subsection (e)(2), a list of the
beneficial owners (as defined in paragraph (4)(A)) of
the entity that--
``(i) identifies each beneficial owner by
name and current residential or business street
address; and
``(ii) if any beneficial owner exercises
control over the entity through another legal
entity, such as a corporation, partnership,
limited liability company, or trust, identifies
each such other legal entity and each such
beneficial owner who will use that other entity
to exercise control over the entity.
``(B) The amount of each campaign-related
disbursement made by such organization during the
period covered by the statement of more than $1,000,
and the name and address of the person to whom the
disbursement was made.
``(C) In the case of a campaign-related
disbursement that is not a covered transfer, the
election to which the campaign-related disbursement
pertains and if the disbursement is made for a public
communication, the name of any candidate identified in
such communication and whether such communication is in
support of or in opposition to a candidate.
``(D) A certification by the chief executive
officer or person who is the head of the covered
organization that the campaign-related disbursement is
not made in cooperation, consultation, or concert with
or at the request or suggestion of a candidate,
authorized committee, or agent of a candidate,
political party, or agent of a political party.
``(E)(i) If the covered organization makes
campaign-related disbursements using exclusively funds
in a segregated bank account consisting of funds that
were paid directly to such account by persons other
than the covered organization that controls the
account, for each such payment to the account--
``(I) the name and address of each person
who made such payment during the period covered
by the statement;
``(II) the date and amount of such payment;
and
``(III) the aggregate amount of all such
payments made by the person during the period
beginning on the first day of the election
reporting cycle (or, if earlier, the period
beginning one year before the disclosure date)
and ending on the disclosure date,
but only if such payment was made by a person who made
payments to the account in an aggregate amount of
$10,000 or more during the period beginning on the
first day of the election reporting cycle (or, if
earlier, the period beginning one year before the
disclosure date) and ending on the disclosure date.
``(ii) In any calendar year after 2020, section
315(c)(1)(B) shall apply to the amount described in
clause (i) in the same manner as such section applies
to the limitations established under subsections
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section,
except that for purposes of applying such section to
the amounts described in subsection (b), the `base
period' shall be 2020.
``(F)(i) If the covered organization makes
campaign-related disbursements using funds other than
funds in a segregated bank account described in
subparagraph (E), for each payment to the covered
organization--
``(I) the name and address of each person
who made such payment during the period covered
by the statement;
``(II) the date and amount of such payment;
and
``(III) the aggregate amount of all such
payments made by the person during the period
beginning on the first day of the election
reporting cycle (or, if earlier, the period
beginning one year before the disclosure date)
and ending on the disclosure date,
but only if such payment was made by a person who made
payments to the covered organization in an aggregate
amount of $10,000 or more during the period beginning
on the first day of the election reporting cycle (or,
if earlier, the period beginning one year before the
disclosure date) and ending on the disclosure date.
``(ii) In any calendar year after 2020, section
315(c)(1)(B) shall apply to the amount described in
clause (i) in the same manner as such section applies
to the limitations established under subsections
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section,
except that for purposes of applying such section to
the amounts described in subsection (b), the `base
period' shall be 2020.
``(G) Such other information as required in rules
established by the Commission to promote the purposes
of this section.
``(3) Exceptions.--
``(A) Amounts received in ordinary course of
business.--The requirement to include in a statement
filed under paragraph (1) the information described in
paragraph (2) shall not apply to amounts received by
the covered organization in commercial transactions in
the ordinary course of any trade or business conducted
by the covered organization or in the form of
investments (other than investments by the principal
shareholder in a limited liability corporation) in the
covered organization. For purposes of this
subparagraph, amounts received by a covered
organization as remittances from an employee to the
employee's collective bargaining representative shall
be treated as amounts received in commercial
transactions in the ordinary course of the business
conducted by the covered organization.
``(B) Donor restriction on use of funds.--The
requirement to include in a statement submitted under
paragraph (1) the information described in subparagraph
(F) of paragraph (2) shall not apply if--
``(i) the person described in such
subparagraph prohibited, in writing, the use of
the payment made by such person for campaign-
related disbursements; and
``(ii) the covered organization agreed to
follow the prohibition and deposited the
payment in an account which is segregated from
any account used to make campaign-related
disbursements.
``(C) Threat of harassment or reprisal.--The
requirement to include any information relating to the
name or address of any person (other than a candidate)
in a statement submitted under paragraph (1) shall not
apply if the inclusion of the information would subject
the person to serious threats, harassment, or
reprisals.
``(4) Other definitions.--For purposes of this section:
``(A) Beneficial owner defined.--
``(i) In general.--Except as provided in
clause (ii), the term `beneficial owner' means,
with respect to any entity, a natural person
who, directly or indirectly--
``(I) exercises substantial control
over an entity through ownership,
voting rights, agreement, or otherwise;
or
``(II) has a substantial interest
in or receives substantial economic
benefits from the assets of an entity.
``(ii) Exceptions.--The term `beneficial
owner' shall not include--
``(I) a minor child;
``(II) a person acting as a
nominee, intermediary, custodian, or
agent on behalf of another person;
``(III) a person acting solely as
an employee of an entity and whose
control over or economic benefits from
the entity derives solely from the
employment status of the person;
``(IV) a person whose only interest
in an entity is through a right of
inheritance, unless the person also
meets the requirements of clause (i);
or
``(V) a creditor of an entity,
unless the creditor also meets the
requirements of clause (i).
``(iii) Anti-abuse rule.--The exceptions
under clause (ii) shall not apply if used for
the purpose of evading, circumventing, or
abusing the provisions of clause (i) or
paragraph (2)(A).
``(B) Disclosure date.--The term `disclosure date'
means--
``(i) the first date during any election
reporting cycle by which a person has made
campaign-related disbursements aggregating more
than $10,000; and
``(ii) any other date during such election
reporting cycle by which a person has made
campaign-related disbursements aggregating more
than $10,000 since the most recent disclosure
date for such election reporting cycle.
``(C) Election reporting cycle.--The term `election
reporting cycle' means the 2-year period beginning on
the date of the most recent general election for
Federal office.
``(D) Payment.--The term `payment' includes any
contribution, donation, transfer, payment of dues, or
other payment.
``(b) Coordination With Other Provisions.--
``(1) Other reports filed with the commission.--Information
included in a statement filed under this section may be
excluded from statements and reports filed under section 304.
``(2) Treatment as separate segregated fund.--A segregated
bank account referred to in subsection (a)(2)(E) may be treated
as a separate segregated fund for purposes of section 527(f)(3)
of the Internal Revenue Code of 1986.
``(c) Filing.--Statements required to be filed under subsection (a)
shall be subject to the requirements of section 304(d) to the same
extent and in the same manner as if such reports had been required
under subsection (c) or (g) of section 304.
``(d) Campaign-Related Disbursement Defined.--
``(1) In general.--In this section, the term `campaign-
related disbursement' means a disbursement by a covered
organization for any of the following:
``(A) An independent expenditure which expressly
advocates the election or defeat of a clearly
identified candidate for election for Federal office,
or is the functional equivalent of express advocacy
because, when taken as a whole, it can be interpreted
by a reasonable person only as advocating the election
or defeat of a candidate for election for Federal
office.
``(B) Any public communication which refers to a
clearly identified candidate for election for Federal
office and which promotes or supports the election of a
candidate for that office, or attacks or opposes the
election of a candidate for that office, without regard
to whether the communication expressly advocates a vote
for or against a candidate for that office.
``(C) An electioneering communication, as defined
in section 304(f)(3).
``(D) A covered transfer.
``(2) Intent not required.--A disbursement for an item
described in subparagraph (A), (B), (C), or (D) of paragraph
(1) shall be treated as a campaign-related disbursement
regardless of the intent of the person making the disbursement.
``(e) Covered Organization Defined.--In this section, the term
`covered organization' means any of the following:
``(1) A corporation (other than an organization described
in section 501(c)(3) of the Internal Revenue Code of 1986).
``(2) A limited liability corporation that is not otherwise
treated as a corporation for purposes of this Act (other than
an organization described in section 501(c)(3) of the Internal
Revenue Code of 1986).
``(3) An organization described in section 501(c) of such
Code and exempt from taxation under section 501(a) of such Code
(other than an organization described in section 501(c)(3) of
such Code).
``(4) A labor organization (as defined in section 316(b)).
``(5) Any political organization under section 527 of the
Internal Revenue Code of 1986, other than a political committee
under this Act (except as provided in paragraph (6)).
``(6) A political committee with an account that accepts
donations or contributions that do not comply with the
contribution limits or source prohibitions under this Act, but
only with respect to such accounts.
``(f) Covered Transfer Defined.--
``(1) In general.--In this section, the term `covered
transfer' means any transfer or payment of funds by a covered
organization to another person if the covered organization--
``(A) designates, requests, or suggests that the
amounts be used for--
``(i) campaign-related disbursements (other
than covered transfers); or
``(ii) making a transfer to another person
for the purpose of making or paying for such
campaign-related disbursements;
``(B) made such transfer or payment in response to
a solicitation or other request for a donation or
payment for--
``(i) the making of or paying for campaign-
related disbursements (other than covered
transfers); or
``(ii) making a transfer to another person
for the purpose of making or paying for such
campaign-related disbursements;
``(C) engaged in discussions with the recipient of
the transfer or payment regarding--
``(i) the making of or paying for campaign-
related disbursements (other than covered
transfers); or
``(ii) donating or transferring any amount
of such transfer or payment to another person
for the purpose of making or paying for such
campaign-related disbursements;
``(D) made campaign-related disbursements (other
than a covered transfer) in an aggregate amount of
$50,000 or more during the 2-year period ending on the
date of the transfer or payment, or knew or had reason
to know that the person receiving the transfer or
payment made such disbursements in such an aggregate
amount during that 2-year period; or
``(E) knew or had reason to know that the person
receiving the transfer or payment would make campaign-
related disbursements in an aggregate amount of $50,000
or more during the 2-year period beginning on the date
of the transfer or payment.
``(2) Exclusions.--The term `covered transfer' does not
include any of the following:
``(A) A disbursement made by a covered organization
in a commercial transaction in the ordinary course of
any trade or business conducted by the covered
organization or in the form of investments made by the
covered organization.
``(B) A disbursement made by a covered organization
if--
``(i) the covered organization prohibited,
in writing, the use of such disbursement for
campaign-related disbursements; and
``(ii) the recipient of the disbursement
agreed to follow the prohibition and deposited
the disbursement in an account which is
segregated from any account used to make
campaign-related disbursements.
``(3) Special rule regarding transfers among affiliates.--
``(A) Special rule.--A transfer of an amount by one
covered organization to another covered organization
which is treated as a transfer between affiliates under
subparagraph (C) shall be considered a covered transfer
by the covered organization which transfers the amount
only if the aggregate amount transferred during the
year by such covered organization to that same covered
organization is equal to or greater than $50,000.
``(B) Determination of amount of certain payments
among affiliates.--In determining the amount of a
transfer between affiliates for purposes of
subparagraph (A), to the extent that the transfer
consists of funds attributable to dues, fees, or
assessments which are paid by individuals on a regular,
periodic basis in accordance with a per-individual
calculation which is made on a regular basis, the
transfer shall be attributed to the individuals paying
the dues, fees, or assessments and shall not be
attributed to the covered organization.
``(C) Description of transfers between
affiliates.--A transfer of amounts from one covered
organization to another covered organization shall be
treated as a transfer between affiliates if--
``(i) one of the organizations is an
affiliate of the other organization; or
``(ii) each of the organizations is an
affiliate of the same organization,
except that the transfer shall not be treated as a
transfer between affiliates if one of the organizations
is established for the purpose of making campaign-
related disbursements.
``(D) Determination of affiliate status.--For
purposes of subparagraph (C), a covered organization is
an affiliate of another covered organization if--
``(i) the governing instrument of the
organization requires it to be bound by
decisions of the other organization;
``(ii) the governing board of the
organization includes persons who are
specifically designated representatives of the
other organization or are members of the
governing board, officers, or paid executive
staff members of the other organization, or
whose service on the governing board is
contingent upon the approval of the other
organization; or
``(iii) the organization is chartered by
the other organization.
``(E) Coverage of transfers to affiliated section
501(c)(3) organizations.--This paragraph shall apply
with respect to an amount transferred by a covered
organization to an organization described in paragraph
(3) of section 501(c) of the Internal Revenue Code of
1986 and exempt from tax under section 501(a) of such
Code in the same manner as this paragraph applies to an
amount transferred by a covered organization to another
covered organization.
``(g) No Effect on Other Reporting Requirements.--Nothing in this
section shall be construed to waive or otherwise affect any other
requirement of this Act which relates to the reporting of campaign-
related disbursements.''.
(2) Conforming amendment.--Section 304(f)(6) of such Act
(52 U.S.C. 30104) is amended by striking ``Any requirement''
and inserting ``Except as provided in section 324(b), any
requirement''.
(b) Coordination With FinCEN.--
(1) In general.--The Director of the Financial Crimes
Enforcement Network of the Department of the Treasury shall
provide the Federal Election Commission with such information
as necessary to assist in administering and enforcing section
324 of the Federal Election Campaign Act of 1971, as added by
this section.
(2) Report.--Not later than 6 months after the date of the
enactment of this Act, the Chairman of the Federal Election
Commission, in consultation with the Director of the Financial
Crimes Enforcement Network of the Department of the Treasury,
shall submit to Congress a report with recommendations for
providing further legislative authority to assist in the
administration and enforcement of such section 324.
SEC. 112. APPLICATION OF FOREIGN MONEY BAN TO DISBURSEMENTS FOR
CAMPAIGN-RELATED DISBURSEMENTS CONSISTING OF COVERED
TRANSFERS.
Section 319(a)(1)(A) of the Federal Election Campaign Act of 1971
(52 U.S.C. 30121(a)(1)(A)), as amended by section 102, is amended by
striking the semicolon and inserting the following: ``, and any
disbursement, other than a disbursement described in section
324(a)(3)(A), to another person who made a campaign-related
disbursement consisting of a covered transfer (as described in section
324) during the 2-year period ending on the date of the
disbursement;''.
SEC. 113. EFFECTIVE DATE.
The amendments made by this subtitle shall apply with respect to
disbursements made on or after January 1, 2020, and shall take effect
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
TITLE II--STAND BY EVERY AD ACT
SEC. 201. SHORT TITLE.
This title may be cited as the ``Stand By Every Ad Act''.
SEC. 202. STAND BY EVERY AD.
(a) Expanded Disclaimer Requirements for Certain Communications.--
Section 318 of the Federal Election Campaign Act of 1971 (52 U.S.C.
30120) is amended by adding at the end the following new subsection:
``(e) Expanded Disclaimer Requirements for Communications Not
Authorized by Candidates or Committees.--
``(1) In general.--Except as provided in paragraph (6), any
communication described in paragraph (3) of subsection (a)
which is transmitted in an audio or video format (including an
Internet or digital communication), or which is an Internet or
digital communication transmitted in a text or graphic format,
shall include, in addition to the requirements of paragraph (3)
of subsection (a), the following:
``(A) The individual disclosure statement described
in paragraph (2)(A) (if the person paying for the
communication is an individual) or the organizational
disclosure statement described in paragraph (2)(B) (if
the person paying for the communication is not an
individual).
``(B) If the communication is transmitted in a
video format, or is an Internet or digital
communication which is transmitted in a text or graphic
format, and is paid for in whole or in part with a
payment which is treated as a campaign-related
disbursement under section 324--
``(i) the Top Five Funders list (if
applicable); or
``(ii) in the case of a communication
which, as determined on the basis of criteria
established in regulations issued by the
Commission, is of such short duration that
including the Top Five Funders list in the
communication would constitute a hardship to
the person paying for the communication by
requiring a disproportionate amount of the
content of the communication to consist of the
Top Five Funders list, the name of a website
which contains the Top Five Funders list (if
applicable) or, in the case of an Internet or
digital communication, a hyperlink to such
website.
``(C) If the communication is transmitted in an
audio format and is paid for in whole or in part with a
payment which is treated as a campaign-related
disbursement under section 324--
``(i) the Top Two Funders list (if
applicable); or
``(ii) in the case of a communication
which, as determined on the basis of criteria
established in regulations issued by the
Commission, is of such short duration that
including the Top Two Funders list in the
communication would constitute a hardship to
the person paying for the communication by
requiring a disproportionate amount of the
content of the communication to consist of the
Top Two Funders list, the name of a website
which contains the Top Two Funders list (if
applicable).
``(2) Disclosure statements described.--
``(A) Individual disclosure statements.--The
individual disclosure statement described in this
subparagraph is the following: `I am ________, and I
approve this message.', with the blank filled in with
the name of the applicable individual.
``(B) Organizational disclosure statements.--The
organizational disclosure statement described in this
subparagraph is the following: `I am ________, the
________ of ________, and ________ approves this
message.', with--
``(i) the first blank to be filled in with
the name of the applicable individual;
``(ii) the second blank to be filled in
with the title of the applicable individual;
and
``(iii) the third and fourth blank each to
be filled in with the name of the organization
or other person paying for the communication.
``(3) Method of conveyance of statement.--
``(A) Communications in text or graphic format.--In
the case of a communication to which this subsection
applies which is transmitted in a text or graphic
format, the disclosure statements required under
paragraph (1) shall appear in letters at least as large
as the majority of the text in the communication.
``(B) Communications transmitted in audio format.--
In the case of a communication to which this subsection
applies which is transmitted in an audio format, the
disclosure statements required under paragraph (1)
shall be made by audio by the applicable individual in
a clear and conspicuous manner.
``(C) Communications transmitted in video format.--
In the case of a communication to which this subsection
applies which is transmitted in a video format, the
information required under paragraph (1)--
``(i) shall appear in writing at the end of
the communication or in a crawl along the
bottom of the communication in a clear and
conspicuous manner, with a reasonable degree of
color contrast between the background and the
printed statement, for a period of at least 6
seconds; and
``(ii) shall also be conveyed by an
unobscured, full-screen view of the applicable
individual or by the applicable individual
making the statement in voice-over accompanied
by a clearly identifiable photograph or similar
image of the individual, except in the case of
a Top Five Funders list.
``(4) Applicable individual defined.--The term `applicable
individual' means, with respect to a communication to which
this subsection applies--
``(A) if the communication is paid for by an
individual, the individual involved;
``(B) if the communication is paid for by a
corporation, the chief executive officer of the
corporation (or, if the corporation does not have a
chief executive officer, the highest ranking official
of the corporation);
``(C) if the communication is paid for by a labor
organization, the highest ranking officer of the labor
organization; and
``(D) if the communication is paid for by any other
person, the highest ranking official of such person.
``(5) Top five funders list and top two funders list
defined.--
``(A) Top five funders list.--The term `Top Five
Funders list' means, with respect to a communication
which is paid for in whole or in part with a campaign-
related disbursement (as defined in section 324), a
list of the five persons who, during the 12-month
period ending on the date of the disbursement, provided
the largest payments of any type in an aggregate amount
equal to or exceeding $10,000 to the person who is
paying for the communication and the amount of the
payments each such person provided. If two or more
people provided the fifth largest of such payments, the
person paying for the communication shall select one of
those persons to be included on the Top Five Funders
list.
``(B) Top two funders list.--The term `Top Two
Funders list' means, with respect to a communication
which is paid for in whole or in part with a campaign-
related disbursement (as defined in section 324), a
list of the persons who, during the 12-month period
ending on the date of the disbursement, provided the
largest and the second largest payments of any type in
an aggregate amount equal to or exceeding $10,000 to
the person who is paying for the communication and the
amount of the payments each such person provided. If
two or more persons provided the second largest of such
payments, the person paying for the communication shall
select one of those persons to be included on the Top
Two Funders list.
``(C) Exclusion of certain payments.--For purposes
of subparagraphs (A) and (B), in determining the amount
of payments made by a person to a person paying for a
communication, there shall be excluded the following:
``(i) Any amounts provided in the ordinary
course of any trade or business conducted by
the person paying for the communication or in
the form of investments in the person paying
for the communication.
``(ii) Any payment which the person
prohibited, in writing, from being used for
campaign-related disbursements, but only if the
person paying for the communication agreed to
follow the prohibition and deposited the
payment in an account which is segregated from
any account used to make campaign-related
disbursements.
``(6) Special rules for certain communications.--
``(A) Exception for communications paid for by
political parties and certain political committees.--
This subsection does not apply to any communication to
which subsection (d)(2) applies.
``(B) Treatment of video communications lasting 10
seconds or less.--In the case of a communication to
which this subsection applies which is transmitted in a
video format, or is an Internet or digital
communication which is transmitted in a text or graphic
format, the communication shall meet the following
requirements:
``(i) The communication shall include the
individual disclosure statement described in
paragraph (2)(A) (if the person paying for the
communication is an individual) or the
organizational disclosure statement described
in paragraph (2)(B) (if the person paying for
the communication is not an individual).
``(ii) The statement described in clause
(i) shall appear in writing at the end of the
communication, or in a crawl along the bottom
of the communication, in a clear and
conspicuous manner, with a reasonable degree of
color contrast between the background and the
printed statement, for a period of at least 4
seconds.
``(iii) The communication shall include, in
a clear and conspicuous manner, a website
address with a landing page which will provide
all of the information described in paragraph
(1) with respect to the communication. Such
address shall appear for the full duration of
the communication.
``(iv) To the extent that the format in
which the communication is made permits the use
of a hyperlink, the communication shall include
a hyperlink to the website address described in
clause (iii).''.
(b) Application of Expanded Requirements to Public Communications
Consisting of Campaign-Related Disbursements.--Section 318(a) of such
Act (52 U.S.C. 30120(a)) is amended by striking ``for the purpose of
financing communications expressly advocating the election or defeat of
a clearly identified candidate'' and inserting ``for a campaign-related
disbursement, as defined in section 324, consisting of a public
communication''.
(c) Exception for Communications Paid for by Political Parties and
Certain Political Committees.--Section 318(d)(2) of such Act (52 U.S.C.
30120(d)(2)) is amended--
(1) in the heading, by striking ``others'' and inserting
``certain political committees'';
(2) by striking ``Any communication'' and inserting ``(A)
Any communication'';
(3) by inserting ``which (except to the extent provided in
subparagraph (B)) is paid for by a political committee
(including a political committee of a political party) and''
after ``subsection (a)'';
(4) by striking ``or other person'' each place it appears;
and
(5) by adding at the end the following new subparagraph:
``(B)(i) This paragraph does not apply to a communication
paid for in whole or in part during a calendar year with a
campaign-related disbursement, but only if the covered
organization making the campaign-related disbursement made
campaign-related disbursements (as defined in section 324)
aggregating more than $10,000 during such calendar year.
``(ii) For purposes of clause (i), in determining the
amount of campaign-related disbursements made by a covered
organization during a year, there shall be excluded the
following:
``(I) Any amounts received by the covered
organization in the ordinary course of any trade or
business conducted by the covered organization or in
the form of investments in the covered organization.
``(II) Any amounts received by the covered
organization from a person who prohibited, in writing,
the organization from using such amounts for campaign-
related disbursements, but only if the covered
organization agreed to follow the prohibition and
deposited the amounts in an account which is segregated
from any account used to make campaign-related
disbursements.''.
SEC. 203. DISCLAIMER REQUIREMENTS FOR COMMUNICATIONS MADE THROUGH
PRERECORDED TELEPHONE CALLS.
(a) Application of Requirements.--
(1) In general.--Section 318(a) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30120(a)) is amended by
inserting after ``mailing,'' each place it appears the
following: ``telephone call which consists in substantial part
of a prerecorded audio message,''.
(2) Application to communications subject to expanded
disclaimer requirements.--Section 318(e)(1) of such Act (52
U.S.C. 30120(e)(1)), as added by section 202(a), is amended in
the matter preceding subparagraph (A) by striking ``which is
transmitted in an audio or video format'' and inserting ``which
is transmitted in an audio or video format or which consists of
a telephone call consisting in substantial part of a
prerecorded audio message''.
(b) Treatment as Communication Transmitted in Audio Format.--
(1) Communications by candidates or authorized persons.--
Section 318(d) of such Act (52 U.S.C. 30120(d)) is amended by
adding at the end the following new paragraph:
``(3) Prerecorded telephone calls.--Any communication
described in paragraph (1), (2), or (3) of subsection (a)
(other than a communication which is subject to subsection (e))
which is a telephone call consisting in substantial part of a
prerecorded audio message shall include, in addition to the
requirements of such paragraph, the audio statement required
under subparagraph (A) of paragraph (1) or the audio statement
required under paragraph (2) (whichever is applicable), except
that the statement shall be made at the beginning of the
telephone call.''.
(2) Communications subject to expanded disclaimer
requirements.--Section 318(e)(3) of such Act (52 U.S.C.
30120(e)(3)), as added by section 202(a), is amended by adding
at the end the following new subparagraph:
``(D) Prerecorded telephone calls.--In the case of
a communication to which this subsection applies which
is a telephone call consisting in substantial part of a
prerecorded audio message, the communication shall be
considered to be transmitted in an audio format.''.
SEC. 204. NO EXPANSION OF PERSONS SUBJECT TO DISCLAIMER REQUIREMENTS ON
INTERNET COMMUNICATIONS.
Nothing in this title or the amendments made by this title may be
construed to require any person who is not required under section 318
of the Federal Election Campaign Act of 1971 (as provided under section
110.11 of title 11 of the Code of Federal Regulations) to include a
disclaimer on communications made by the person through the internet to
include any disclaimer on any such communications.
SEC. 205. EFFECTIVE DATE.
The amendments made by this title shall apply with respect to
communications made on or after January 1, 2020, and shall take effect
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
TITLE III--OTHER PROVISIONS
SEC. 301. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or the
application of a provision or amendment to any person or circumstance,
is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.
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