[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2232 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2232

To amend the Federal Election Campaign Act of 1971 to reduce the number 
 of members of the Federal Election Commission from 6 to 5, to revise 
    the method of selection and terms of service of members of the 
  Commission, to distribute the powers of the Commission between the 
        Chair and the remaining members, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2019

 Ms. Klobuchar introduced the following bill; which was read twice and 
         referred to the Committee on Rules and Administration

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Election Campaign Act of 1971 to reduce the number 
 of members of the Federal Election Commission from 6 to 5, to revise 
    the method of selection and terms of service of members of the 
  Commission, to distribute the powers of the Commission between the 
        Chair and the remaining members, 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.

    This Act may be cited as the ``Campaign Finance Transparency Act''.

SEC. 2. MEMBERSHIP OF FEDERAL ELECTION COMMISSION.

    (a) Reduction in Number of Members; Removal of Secretary of Senate 
and Clerk of House as Ex Officio Members.--
            (1) In general; quorum.--Section 306(a)(1) of the Federal 
        Election Campaign Act of 1971 (52 U.S.C. 30106(a)(1)) is 
        amended--
                    (A) by striking ``There is established'' and 
                inserting ``(A) There is established''; and
                    (B) by striking the second and third sentences and 
                inserting the following:
            ``(B) The Commission is composed of 5 members appointed by 
        the President by and with the advice and consent of the Senate, 
        of whom--
                    ``(i) no more than 2 may be affiliated with the 
                same political party; and
                    ``(ii) at least 1 shall not be affiliated with--
                            ``(I) the political party with which the 
                        most members of the House of Representatives 
                        are affiliated; or
                            ``(II) the political party with which the 
                        second most member of the House of 
                        Representatives are affiliated.
        A member shall by treated as affiliated with a political party 
        if the member was affiliated, including as a registered voter, 
        employee, consultant, donor, officer, or attorney, with such 
        political party or any of its candidates or elected public 
        officials at any time during the 5-year period ending on the 
        date on which such individual is nominated to be a member of 
        the Commission.
            ``(C) Four members shall constitute a quorum.''.
            (2) Conforming amendments relating to reduction in number 
        of members.--(A) The second sentence of section 306(c) of such 
        Act (52 U.S.C. 30106(c)) is amended by striking ``affirmative 
        vote of 4 members of the Commission'' and inserting 
        ``affirmative vote of a majority of the members of the 
        Commission who are serving at the time''.
            (B) Such Act is further amended by striking ``affirmative 
        vote of 4 of its members'' and inserting ``affirmative vote of 
        a majority of the members of the Commission who are serving at 
        the time'' each place it appears in the following sections:
                    (i) Section 309(a)(2) (52 U.S.C. 30109(a)(2)).
                    (ii) Section 309(a)(4)(A)(i) (52 U.S.C. 
                30109(a)(4)(A)(i)).
                    (iii) Section 309(a)(5)(C) (52 U.S.C. 
                30109(a)(5)(C)).
                    (iv) Section 309(a)(6)(A) (52 U.S.C. 
                30109(a)(6)(A)).
                    (v) Section 311(b) (52 U.S.C. 30111(b)).
            (3) Conforming amendment relating to removal of ex officio 
        members.--Section 306(a) of such Act (52 U.S.C. 30106(a)) is 
        amended by striking ``(other than the Secretary of the Senate 
        and the Clerk of the House of Representatives)'' each place it 
        appears in paragraphs (4) and (5).
    (b) Terms of Service.--Section 306(a)(2) of such Act (52 U.S.C. 
30106(a)(2)) is amended to read as follows:
            ``(2) Terms of service.--
                    ``(A) In general.--Each member of the Commission 
                shall serve for a single term of 6 years.
                    ``(B) Special rule for initial appointments.--Of 
                the members first appointed to serve terms that begin 
                in January 2022, the President shall designate 2 to 
                serve for 3-year terms. The members selected under this 
                subparagraph shall not be affiliated with the same 
                political party.
                    ``(C) No reappointment permitted.--An individual 
                who served a term as a member of the Commission may not 
                serve for an additional term, except that--
                            ``(i) an individual who served a 3-year 
                        term under subparagraph (B) may also be 
                        appointed to serve a 6-year term under 
                        subparagraph (A); and
                            ``(ii) for purposes of this subparagraph, 
                        an individual who is appointed to fill a 
                        vacancy under subparagraph (D) shall not be 
                        considered to have served a term if the portion 
                        of the unexpired term the individual fills is 
                        less than 50 percent of the period of the term.
                    ``(D) Vacancies.--Any vacancy occurring in the 
                membership of the Commission shall be filled in the 
                same manner as in the case of the original appointment. 
                Except as provided in subparagraph (C), an individual 
                appointed to fill a vacancy occurring other than by the 
                expiration of a term of office shall be appointed only 
                for the unexpired term of the member he or she 
                succeeds.
                    ``(E) Limitation on service after expiration of 
                term.--A member of the Commission may continue to serve 
                on the Commission after the expiration of the member's 
                term for an additional period, but only until the 
                earlier of--
                            ``(i) the date on which the member's 
                        successor has taken office as a member of the 
                        Commission; or
                            ``(ii) the expiration of the 1-year period 
                        that begins on the last day of the member's 
                        term.''.
    (c) Qualifications.--Section 306(a)(3) of such Act (52 U.S.C. 
30106(a)(3)) is amended to read as follows:
            ``(3) Qualifications.--
                    ``(A) In general.--The President may select an 
                individual for service as a member of the Commission if 
                the individual has experience in election law and has a 
                demonstrated record of integrity, impartiality, and 
                good judgment.
                    ``(B) Assistance of blue ribbon advisory panel.--
                            ``(i) In general.--Prior to the regularly 
                        scheduled expiration of the term of a member of 
                        the Commission and upon the occurrence of a 
                        vacancy in the membership of the Commission 
                        prior to the expiration of a term, the 
                        President shall convene a Blue Ribbon Advisory 
                        Panel consisting of an odd number of 
                        individuals selected by the President.
                            ``(ii) Composition.--The Blue Ribbon 
                        Advisory Panel shall include individuals 
                        representing each major political party and 
                        individuals who are independent of a political 
                        party and individuals with experience in 
                        election law, except that the President may not 
                        select any individual to serve on the panel who 
                        holds any public office at the time of 
                        selection. The President shall make reasonable 
                        efforts to encourage racial, ethnic, and gender 
                        diversity on the panel.
                            ``(iii) Recommendations.--With respect to 
                        each member of the Commission whose term is 
                        expiring or each vacancy in the membership of 
                        the Commission (as the case may be), the Blue 
                        Ribbon Advisory Panel shall recommend to the 
                        President at least one but not more than 3 
                        individuals for nomination for appointment as a 
                        member of the Commission.
                            ``(iv) Publication.--At the time the 
                        President submits to the Senate the nominations 
                        for individuals to be appointed as members of 
                        the Commission, the President shall publish the 
                        Blue Ribbon Advisory Panel's recommendations 
                        for such nominations.
                            ``(v) Exemption from federal advisory 
                        committee act.--The Federal Advisory Committee 
                        Act (5 U.S.C. App.) does not apply to a Blue 
                        Ribbon Advisory Panel convened under this 
                        subparagraph.
                    ``(C) Prohibiting engagement with other business or 
                employment during service.--A member of the Commission 
                shall not engage in any other business, vocation, or 
                employment. Any individual who is engaging in any other 
                business, vocation, or employment at the time of his or 
                her appointment to the Commission shall terminate or 
                liquidate such activity no later than 90 days after 
                such appointment.''.

SEC. 3. ASSIGNMENT OF POWERS TO CHAIR OF FEDERAL ELECTION COMMISSION.

    (a) Appointment of Chair by President.--
            (1) In general.--Section 306(a)(5) of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30106(a)(5)) is amended to read 
        as follows:
            ``(5) Chair.--
                    ``(A) Initial appointment.--Of the members first 
                appointed to serve terms that begin in January 2022, 
                one such member (as designated by the President at the 
                time the President submits nominations to the Senate) 
                shall serve as Chair of the Commission.
                    ``(B) Subsequent appointments.--Any individual who 
                is appointed to succeed the member who serves as Chair 
                of the Commission for the term beginning in January 
                2022 (as well as any individual who is appointed to 
                fill a vacancy if such member does not serve a full 
                term as Chair) shall serve as Chair of the Commission.
                    ``(C) Vice chair.--The Commission shall select, by 
                majority vote of its members, one of its members to 
                serve as Vice Chair, who shall act as Chair in the 
                absence or disability of the Chair or in the event of a 
                vacancy in the position of Chair.''.
            (2) Conforming amendment.--Section 309(a)(2) of such Act 
        (52 U.S.C. 30109(a)(2)) is amended by striking ``through its 
        chairman or vice chairman'' and inserting ``through the 
        Chair''.
    (b) Powers.--
            (1) Assignment of certain powers to chair.--Section 307(a) 
        of such Act (52 U.S.C. 30107(a)) is amended to read as follows:
    ``(a) Distribution of Powers Between Chair and Commission.--
            ``(1) Powers assigned to chair.--
                    ``(A) Administrative powers.--The Chair of the 
                Commission shall be the chief administrative officer of 
                the Commission and shall have the authority to 
                administer the Commission and its staff, and (in 
                consultation with the other members of the Commission) 
                shall have the power--
                            ``(i) to appoint and remove the staff 
                        director of the Commission;
                            ``(ii) to request the assistance (including 
                        personnel and facilities) of other agencies and 
                        departments of the United States, whose heads 
                        may make such assistance available to the 
                        Commission with or without reimbursement; and
                            ``(iii) to prepare and establish the budget 
                        of the Commission and to make budget requests 
                        to the President, the Director of the Office of 
                        Management and Budget, and Congress.
                    ``(B) Other powers.--The Chair of the Commission 
                shall have the power--
                            ``(i) to appoint and remove the general 
                        counsel of the Commission;
                            ``(ii) to appoint and remove the director 
                        of enforcement of the Commission with the 
                        concurrence of at least 2 other members of the 
                        Commission who are not affiliated with the same 
                        political party as the Chair;
                            ``(iii) to require by special or general 
                        orders, any person to submit, under oath, such 
                        written reports and answers to questions as the 
                        Chair may prescribe;
                            ``(iv) to administer oaths or affirmations;
                            ``(v) to require by subpoena, signed by the 
                        Chair, the attendance and testimony of 
                        witnesses and the production of all documentary 
                        evidence relating to the execution of its 
                        duties;
                            ``(vi) in any proceeding or investigation, 
                        to order testimony to be taken by deposition 
                        before any person who is designated by the 
                        Chair, and shall have the power to administer 
                        oaths and, in such instances, to compel 
                        testimony and the production of evidence in the 
                        same manner as authorized under clause (iv); 
                        and
                            ``(vii) to pay witnesses the same fees and 
                        mileage as are paid in like circumstances in 
                        the courts of the United States.
            ``(2) Powers assigned to commission.--The Commission shall 
        have the power--
                    ``(A) to initiate (through civil actions for 
                injunctive, declaratory, or other appropriate relief) 
                any civil action in the name of the Commission to 
                enforce the provisions of this Act and chapter 95 and 
                chapter 96 of the Internal Revenue Code of 1986, 
                through its director of enforcement;
                    ``(B) to defend (in the case of any civil action 
                brought under section 309(a)(8) of this Act) or appeal 
                (including a proceeding before the Supreme Court on 
                certiorari) any civil action in the name of the 
                Commission to enforce the provisions of this Act and 
                chapter 95 and chapter 96 of the Internal Revenue Code 
                of 1986, through its general counsel;
                    ``(C) to render advisory opinions under section 308 
                of this Act;
                    ``(D) to develop such prescribed forms and to make, 
                amend, and repeal such rules, pursuant to the 
                provisions of chapter 5 of title 5, United States Code, 
                as are necessary to carry out the provisions of this 
                Act and chapter 95 and chapter 96 of the Internal 
                Revenue Code of 1986;
                    ``(E) to oversee investigations conducted by the 
                director of enforcement;
                    ``(F) to conduct hearings expeditiously, to 
                encourage voluntary compliance, and to report apparent 
                violations to the appropriate law enforcement 
                authorities; and
                    ``(G) to transmit to the President and Congress not 
                later than June 1 of each year a report which states in 
                detail the activities of the Commission in carrying out 
                its duties under this Act, and which includes any 
                recommendations for any legislative or other action the 
                Commission considers appropriate.
            ``(3) Permitting commission to exercise other powers of 
        chair.--With respect to any investigation, action, or 
        proceeding, the Commission, by an affirmative vote of a 
        majority of the members who are serving at the time, may 
        exercise any of the powers of the Chair described in paragraph 
        (1)(B).''.
            (2) Conforming amendments relating to personnel 
        authority.--Section 306(f) of such Act (52 U.S.C. 30106(f)) is 
        amended--
                    (A) by striking ``the Commission'' in the first 
                sentence of paragraph (1) and inserting ``the Chair of 
                the Commission in consultation with the other 
                members'';
                    (B) in paragraph (2), by striking ``With the 
                approval of the Commission'' and inserting ``With the 
                approval of the Chair of the Commission''; and
                    (C) by striking paragraph (3).
            (3) Conforming amendment relating to budget submission.--
        Section 307(d)(1) of such Act (52 U.S.C. 30107(d)(1)) is 
        amended by striking ``the Commission submits any budget'' and 
        inserting ``the Chair (or, pursuant to subsection (a)(3), the 
        Commission) submits any budget''.
            (4) Other conforming amendments.--Section 306(c) of such 
        Act (52 U.S.C. 30106(c)) is amended by striking ``All 
        decisions'' and inserting ``Subject to section 307(a), all 
        decisions''.
            (5) Technical amendment.--The heading of section 307 of 
        such Act (52 U.S.C. 30107) is amended by striking ``the 
        commission'' and inserting ``the chair and the commission''.

SEC. 4. REVISION TO ENFORCEMENT PROCESS.

    (a) Establishment of Director of Enforcement.--Paragraph (1) of 
section 306(f) of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30109(f)(1)) is amended to read as follows:
            ``(1) The Commission shall have the following:
                    ``(A) A staff director who--
                            ``(i) shall be appointed by the Chair of 
                        the Commission in consultation with the other 
                        members; and
                            ``(ii) except as provided in subparagraph 
                        (C), may, with the approval of the Chair of the 
                        Commission, appoint and fix the pay of such 
                        additional personnel as he or she considers 
                        desirable without regard to the provisions of 
                        title 5, United States Code, governing 
                        appointments in the competitive service.
                    ``(B) A general counsel who shall be appointed by 
                the Chair of the Commission in consultation with the 
                other members.
                    ``(C) A director of enforcement who--
                            ``(i) shall be nominated by the Chair and 
                        approved by a majority vote of the members of 
                        the Commission who are serving at the time, 
                        including an affirmative vote by at least 2 
                        members who are not affiliated with the same 
                        political party as the Chair;
                            ``(ii) shall serve for a term of 4 years, 
                        subject to renewal; and
                            ``(iii) may, with the approval of the Chair 
                        of the Commission, appoint and fix the pay of 
                        such additional personnel to assist with the 
                        duties of the director as he or she considers 
                        desirable without regard to the provisions of 
                        title 5, United States Code, governing 
                        appointments in the competitive service.''.
    (b) Standard for Initiating Investigations and Determining Whether 
Violations Have Occurred.--
            (1) Revision of standards.--Section 309(a) of the Federal 
        Election Campaign Act of 1971 (52 U.S.C. 30109(a)) is amended 
        by striking paragraphs (2) and (3) and inserting the following:
    ``(2)(A) The director of enforcement, upon receiving a complaint 
filed with the Commission under paragraph (1) or upon the basis of 
information ascertained by the Commission in the normal course of 
carrying out its supervisory responsibilities, shall make a 
determination as to whether or not there is reason to believe that a 
person has committed, or is about to commit, a violation of this Act or 
chapter 95 or chapter 96 of the Internal Revenue Code of 1986, and as 
to whether or not the Commission should either initiate an 
investigation of the matter or that the complaint should be dismissed. 
The director of enforcement shall promptly provide notification to the 
Commission of such determination and the reasons therefore, together 
with any written response submitted under paragraph (1) by the person 
alleged to have committed the violation. Upon the expiration of the 30-
day period which begins on the date the director of enforcement 
provides such notification, the director's determination shall take 
effect, unless during such 30-day period the Commission, by vote of a 
majority of the members of the Commission who are serving at the time, 
overrules the director's determination. If the determination by the 
director of enforcement that the Commission should investigate the 
matter takes effect, or if the determination by the director of 
enforcement that the complaint should be dismissed is overruled as 
provided under the previous sentence, the director of enforcement shall 
initiate an investigation of the matter on behalf of the Commission.
    ``(B) If the Commission initiates an investigation pursuant to 
subparagraph (A), the Commission, through the Chair, shall notify the 
subject of the investigation of the alleged violation. Such 
notification shall set forth the factual basis for such alleged 
violation. The Commission shall make an investigation of such alleged 
violation, which may include a field investigation or audit, in 
accordance with the provisions of this section. The director of 
enforcement shall provide notification to the Commission of any intent 
to issue a subpoena or conduct any other form of discovery pursuant to 
the investigation. Upon the expiration of the 15-day period which 
begins on the date the director of enforcement provides such 
notification, the director of enforcement may issue the subpoena or 
conduct the discovery, unless during such 15-day period the Commission, 
by vote of a majority of the members of the Commission who are serving 
at the time, prohibits the director of enforcement from issuing the 
subpoena or conducting the discovery.
    ``(3)(A) Upon completion of an investigation under paragraph (2), 
the director of enforcement shall promptly submit to the Commission the 
director's recommendation that the Commission find either that there is 
probable cause or that there is not probable cause to believe that a 
person has committed, or is about to commit, a violation of this Act or 
chapter 95 or chapter 96 of the Internal Revenue Code of 1986, and 
shall include with the recommendation a brief stating the position of 
the director of enforcement on the legal and factual issues of the 
case.
    ``(B) At the time the director of enforcement submits to the 
Commission the recommendation under subparagraph (A), the director of 
enforcement shall simultaneously notify the respondent of such 
recommendation and the reasons therefore, shall provide the respondent 
with an opportunity to submit a brief within 30 days stating the 
position of the respondent on the legal and factual issues of the case 
and replying to the brief of the director of enforcement. The director 
of enforcement and shall promptly submit such brief to the Commission 
upon receipt.
    ``(C) Not later than 30 days after the director of enforcement 
submits the recommendation to the Commission under subparagraph (A) 
(or, if the respondent submits a brief under subparagraph (B), not 
later than 30 days after the director of enforcement submits the 
respondent's brief to the Commission under such subparagraph), the 
Commission shall approve or disapprove the recommendation by vote of a 
majority of the members of the Commission who are serving at the time. 
In the case of a tie vote, the Commission shall be considered to have 
adopted the recommendation.''.
            (2) Conforming amendment relating to initial response to 
        filing of complaint.--Section 309(a)(1) of such Act (52 U.S.C. 
        30109(a)(1)) is amended--
                    (A) in the third sentence, by striking ``the 
                Commission'' and inserting ``the director of 
                enforcement''; and
                    (B) by amending the fourth sentence to read as 
                follows: ``Not later than 15 days after receiving 
                notice from the director of enforcement under the 
                previous sentence, the person may provide the director 
                of enforcement with a written response that no action 
                should be taken against such person on the basis of the 
                complaint.''.
    (c) Revision of Standard for Review of Dismissal of Complaints.--
            (1) In general.--Section 309(a)(8) of such Act (52 U.S.C. 
        30109(a)(8)) is amended to read as follows:
    ``(8)(A)(i) Any party aggrieved by an action of the Commission 
(including a determination of the director of enforcement which is not 
overruled by the Commission) dismissing a complaint filed by such party 
after finding either no reason to believe a violation has occurred or 
no probable cause a violation has occurred may file a petition with the 
United States District Court for the District of Columbia. Any petition 
under this subparagraph shall be filed within 60 days after the date on 
which the party received notice of the dismissal of the complaint.
    ``(ii) In any proceeding under this subparagraph, the court shall 
determine by de novo review whether the dismissal of the complaint is 
contrary to law. In any matter in which the penalty for the alleged 
violation is greater than $50,000, the court should disregard any claim 
or defense by the Commission of prosecutorial discretion as a basis for 
dismissing the complaint.
    ``(B)(i) Any party who has filed a complaint with the Commission 
and who is aggrieved by a failure of the Commission, within one year 
after the filing of the complaint, to either dismiss the complaint or 
to find reason to believe a violation has occurred or is about to 
occur, may file a petition with the United States District Court for 
the District of Columbia.
    ``(ii) The Commission may submit under seal an ex parte request for 
a temporary stay of any proceeding initiated under clause (i), and the 
court may grant such request if it determines that the investigation of 
the complaint by the Commission is being held in abeyance on a 
reasonable basis.
    ``(iii) In any proceeding under this subparagraph, except in the 
case of a stay granted under clause (ii), the court shall treat the 
failure to act on the complaint as a dismissal of the complaint, and 
shall determine by de novo review whether the agency's failure to act 
on the complaint is contrary to law.
    ``(C) In any proceeding under this paragraph the court may declare 
that the dismissal of the complaint or the failure to act is contrary 
to law, and may direct the Commission to conform with such declaration 
within 30 days, failing which the complainant may bring, in the name of 
such complainant, a civil action to remedy the violation involved in 
the original complaint.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply--
                    (A) in the case of complaints which are dismissed 
                by the Federal Election Commission, with respect to 
                complaints which are dismissed on or after the date of 
                the enactment of this Act; and
                    (B) in the case of complaints upon which the 
                Federal Election Commission failed to act, with respect 
                to complaints which were filed on or after the date of 
                the enactment of this Act.

SEC. 5. RESTORING THE COMMISSION'S RANDOM AUDIT AUTHORITY.

    Section 311(b) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30111(a)) is amended to read as follows:
    ``(b) Audits.--
            ``(1) In general.--The Commission shall conduct audits and 
        field investigations of not less than 10 percent of political 
        committees required to file a report under section 304 of this 
        Act. Such audits and field investigations shall be conducted 
        proportionally among--
                    ``(A) authorized committees of candidates;
                    ``(B) political committees established and 
                maintained by political parties;
                    ``(C) political committees not described in 
                subparagraph (A) or (B) that accepts donations or 
                contributions that do not comply with the limitations, 
                prohibitions, and reporting requirements of this Act; 
                and
                    ``(D) political committees not described in 
                subparagraph (A), (B), or (C).
            ``(2) Priority.--All audits and field investigations 
        concerning the verification for, and receipt and use of, any 
        payments received by a candidate or committee under chapter 95 
        or chapter 96 of the Internal Revenue Code of 1986 shall be 
        given priority.
            ``(3) Determination of violations.--The Commission shall 
        establish materiality thresholds with respect to the 
        enforcement of a violation of any provision of this Act which 
        is discovered during an audit conducted under this 
        subsection.''.

SEC. 6. PERMANENT EXTENSION OF ADMINISTRATIVE PENALTY AUTHORITY.

    (a) Extension of Authority.--Section 309(a)(4)(C)(v) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30109(a)(4)(C)(v)) is amended 
by striking ``, and that end on or before December 31, 2023''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on December 31, 2019.

SEC. 7. PERMITTING APPEARANCE AT HEARINGS ON REQUESTS FOR ADVISORY 
              OPINIONS BY PERSONS OPPOSING THE REQUESTS.

    (a) In General.--Section 308 of such Act (52 U.S.C. 30108) is 
amended by adding at the end the following new subsection:
    ``(e) To the extent that the Commission provides an opportunity for 
a person requesting an advisory opinion under this section (or counsel 
for such person) to appear before the Commission to present testimony 
in support of the request, and the person (or counsel) accepts such 
opportunity, the Commission shall provide a reasonable opportunity for 
an interested party who submitted written comments under subsection (d) 
in response to the request (or counsel for such interested party) to 
appear before the Commission to present testimony in response to the 
request.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to requests for advisory opinions under section 308 
of the Federal Election Campaign Act of 1971 which are made on or after 
the date of the enactment of this Act.

SEC. 8. REVISING PROHIBITIONS ON FRAUDULENT MISREPRESENTATION OF 
              CAMPAIGN AUTHORITY.

    Section 322 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30124) is amended--
            (1) in subsection (a)--
                    (A) by striking ``who is a candidate for Federal 
                office or an employee or agent of such a candidate'' in 
                the matter preceding paragraph (1);
                    (B) by striking ``other candidate or political 
                party or employee or agent thereof on a matter which is 
                damaging to such other candidate or political party or 
                employee or agent thereof'' and inserting ``candidate, 
                political party, other real or fictitious political 
                committee or organization, or employee or agent or any 
                of the foregoing,''; and
            (2) in subsection (b)(1), by striking ``candidate or 
        political party or employee or agent thereof'' and inserting 
        ``candidate, political party, other real or fictitious 
        committee or organization, or employee or agent of any of the 
        foregoing''.

SEC. 9. PROHIBITING FRAUDULENT PAC PRACTICES.

    (a) In General.--
            (1) Prohibition.--Section 313 of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30114) is amended by adding at 
        the end the following new subsection:
    ``(d) Prohibited Uses by Other Political Committees.--
            ``(1) In general.--A contribution or donation that is made 
        to a political committee and is not described in subsection (a) 
        shall not be converted to personal use (including any use 
        described in subparagraphs (A) through (I) of subsection 
        (b)(2)).
            ``(2) Self-dealing.--
                    ``(A) In general.--For purposes of paragraph (1), a 
                contribution or donation shall be presumed to be 
                converted to personal use if the contribution or 
                donation is used to make a significant disbursement to 
                a controlling person.
                    ``(B) Rebuttal.--The presumption in subparagraph 
                (A) may be rebutted only upon a showing that--
                            ``(i) the significant disbursement to the 
                        controlling person is a bona fide payment for 
                        goods or services at no greater than fair 
                        market value;
                            ``(ii) the significant disbursement was 
                        negotiated at arms' length by and approved by 
                        an agent of the committee who--
                                    ``(I) was neither the controlling 
                                person nor in an employment 
                                relationship directly or indirectly 
                                subject to the direction or control of 
                                the controlling person;
                                    ``(II) relied upon appropriate data 
                                as to fair market value prior to 
                                approving the disbursement; and
                                    ``(III) documented the basis for 
                                the approval determination concurrently 
                                with making that determination; and
                            ``(iii) at the time the significant 
                        disbursement was made, the aggregate total of 
                        itemized contributions to the committee during 
                        the election cycle exceeded the aggregate total 
                        of disbursements to controlling persons by the 
                        committee during the election cycle.
                    ``(C) Definitions.--For purposes of this paragraph:
                            ``(i) Controlling person.--The term 
                        `controlling person' means any person who has 
                        authority or ability to direct or control the 
                        committee's disbursements, any family member or 
                        business partner of such person, and any 
                        corporation (whether for-profit or not-for-
                        profit, but not including publicly traded 
                        corporations), limited liability company, 
                        partnership, trust, bank or financial account, 
                        or other entity owned or controlled in whole or 
                        in part by such person, family member, or 
                        business partner.
                            ``(ii) Significant disbursement.--The term 
                        `significant disbursement' means any 
                        disbursement to a person if--
                                    ``(I) such disbursement exceeds 
                                $1,000; or
                                    ``(II) such disbursement, when 
                                aggregated with all other disbursements 
                                by the committee to the person within 
                                the calendar year, exceeds $5,000.''.
            (2) Conforming amendment.--The heading for subsection (b) 
        of section 313 of such Act (52 U.S.C. 30114) is amended by 
        inserting ``by Candidates and Office Holders'' after 
        ``Prohibited Uses''.
    (b) Reporting.--Section 304(b)(6)(B) of the Federal Election 
Campaign Act of 1971 (52 U.S.C. 30104(b)(6)(B)) is amended by striking 
``and'' at the end of clause (iv), by inserting ``and'' at the end of 
clause (v), and by adding at the end the following new clause:
                            ``(vi) person who during the reporting 
                        period received a disbursement that constituted 
                        a significant disbursement to a controlling 
                        person within the meaning of section 313(b)(2), 
                        together with the date, amount, and purpose of 
                        the significant disbursement and a sworn 
                        statement demonstrating that the requirements 
                        of 313(b)(2)(B) were satisfied;''.
    (c) Study on Additional Measures.--Not later than 120 days after 
the enactment of this Act, the Chairman of the Federal Trade Commission 
and the Chairman of the Federal Election Commission shall jointly 
submit to Congress a report on measures that should be taken by 
Congress or the Federal Election Commission to limit fraudulent 
solicitations by political committees.
    (d) Effective Date.--The amendments made by this section shall 
apply to disbursements made after the date of the enactment of this 
Act.

SEC. 10. PROHIBITION ON AIDING OR ABETTING THE MAKING OF CONTRIBUTIONS 
              IN THE NAME OF ANOTHER.

    Section 320 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30122) is amended--
            (1) by striking ``No person'' and inserting the following:
    ``(a) In General.--No person''; and
            (2) by adding at the end the following:
    ``(b) Aiding or Abetting.--No person shall knowingly direct, help, 
or assist any person in making a contribution in the name of 
another.''.

SEC. 11. RULES RELATING TO CONVERSION OF CAMPAIGN FUNDS.

    Section 313(b) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30114(b)) is amended--
            (1) in paragraph (1), by inserting ``and any other 
        contribution or donation accepted by a political committee'' 
        after ``subsection (a)''; and
            (2) in paragraph (2)--
                    (A) by inserting ``, in the case of a contribution 
                or donation described in subsection (a),'' after 
                ``if'';
                    (B) by striking ``including'' and inserting `` and, 
                in the case of any other contribution or donation 
                accepted by a political committee, the contribution or 
                amount is used to fulfill any commitment, obligation, 
                or expense of a person that would exist irrespective of 
                such political committee's political activities. 
                Conversion to personal use shall include'';
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) an automobile expense that is not related to 
                a campaign or the political activities of the 
                committee;'';
                    (D) in subparagraph (E), by striking ``non-
                campaign-related trip'' and inserting ``trip not 
                related to a campaign or the political activities of 
                the committee''; and
                    (E) in subparagraph (H), by inserting ``or the 
                political activities of the committee'' after 
                ``election campaign''.

SEC. 12. INCREASING AND INDEXING FOR INFLATION REGISTRATION AND 
              REPORTING THRESHOLDS.

    (a) Registration Thresholds.--Section 301(4) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30101(4)) is amended--
            (1) in subparagraph (A), by striking ``$1,000'' each place 
        it appears and inserting ``$5,000'';
            (2) in subparagraph (C)--
                    (A) by striking ``receives contributions 
                aggregating in excess of $5,000 during a calendar year, 
                or'';
                    (B) by striking ``, or makes contributions in 
                excess of $1,000'' and inserting ``or makes 
                contributions in excess of $5,000''; and
                    (C) by striking ``or makes expenditures aggregating 
                in excess of $1,000 during a calendar year''; and
            (3) by adding at the end the following new flush sentence:
        ``In any calendar year after 2020, section 315(c)(1)(B) shall 
        apply to each amount described in subparagraphs (A) and (C) of 
        this paragraph 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 
        subparagraphs (A) and (C) of this paragraph, the `base period' 
        shall be 2020.''.
    (b) Reporting Thresholds.--
            (1) Modification of independent expenditure reporting 
        threshold.--Section 304(c)(1) of the Federal Election Campaign 
        Act of 1971 (52 U.S.C. 30104(c)(1)) is amended by striking 
        ``$250'' in paragraph (1) and inserting ``$1,000''.
            (2) Inflation adjustment.--Section 304 of such Act (52 
        U.S.C. 30104) is amended by adding at the end the following new 
        subsection:
    ``(j) Inflation Adjustments.--
            ``(1) In general.--In any odd-numbered calendar year after 
        2020--
                    ``(A) each of the dollar amounts described in 
                paragraph (2) shall be increased by the percent 
                difference determined under section 315(c)(1)(A) 
                (applied as if the base period was calendar year 2020);
                    ``(B) each amount so increased shall remain in 
                effect for the 2-year period beginning on the first day 
                following the date of the last general election in the 
                year preceding the year in which the amount is 
                increased and ending on the date of the next general 
                election; and
                    ``(C) if any amount after adjustment under 
                subparagraph (A) is not a multiple of $100, such amount 
                shall be rounded to the nearest multiple of $100.
            ``(2) Dollar amounts described.--The dollar amounts 
        described in this paragraph are the following:
                    ``(A) Each of the $100,000 amounts in clauses (i) 
                and (iii) of subsection (a)(3)(A).
                    ``(B) The $1,000 amount in subsection (a)(6)(A).
                    ``(C) Each of the $200 amounts in subparagraphs 
                (A), (F), and (G) of subsection (b)(3).
                    ``(D) The $200 amount in subsection (b)(5)(A).
                    ``(E) Each of the $200 amounts in subparagraphs 
                (A), (B)(iii), and (B)(v) of subsection (b)(6).
                    ``(F) The $1,000 amount in subsection (c)(1).
                    ``(G) The $200 amount in subsection (c)(2)(C).
                    ``(H) The $5,000 amount in subsection (e)(2)(A).
                    ``(I) The $200 amount in subsection (e)(3).
                    ``(J) Each of the $10,000 amounts in paragraphs 
                (1), (4)(A) and (4)(B) of subsection (f).
                    ``(K) The $200 amount in subsection (f)(2)(C).
                    ``(L) Each of the $1,000 amounts in subparagraphs 
                (E) and (F) of subsection (f)(2)(C).
                    ``(M) Each of the $1,000 amounts in subparagraphs 
                (A) and (B) of subsection (g)(1).
                    ``(N) Each of the $10,000 amounts in subparagraphs 
                (A) and (B) of subsection (g)(2).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2019.

SEC. 13. PERMITTING POLITICAL COMMITTEES TO MAKE DISBURSEMENTS BY 
              METHODS OTHER THAN CHECK.

    Section 302(h)(1) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30102(h)(1) is amended by striking the last sentence and 
inserting the following: ``No disbursements may be made (other than 
petty cash disbursements under paragraph (2)) by such committee except 
from such accounts.''.

SEC. 14. ELECTRONIC FILING OF ELECTIONEERING COMMUNICATION REPORTS.

    Section 304(a)(11)(A)(i) of the Federal Election Campaign Act of 
1971 (52 U.S.C. 30104(a)(11)(A)(i)) is amended by striking ``or 
expenditures'' and inserting ``, expenditures, or disbursements for 
electioneering communications''.

SEC. 15. EFFECTIVE DATE; TRANSITION.

    (a) In General.--Except as otherwise provided, the amendments made 
by this Act shall apply beginning January 1, 2022.
    (b) Transition.--
            (1) Termination of service of current members.--
        Notwithstanding any provision of the Federal Election Campaign 
        Act of 1971, the term of any individual serving as a member of 
        the Federal Election Commission as of December 31, 2021, shall 
        expire on that date.
            (2) No effect on existing cases or proceedings.--Nothing in 
        this Act or in any amendment made by this Act shall affect any 
        of the powers exercised by the Federal Election Commission 
        prior to December 31, 2021, including any investigation 
        initiated by the Commission prior to such date or any 
        proceeding (including any enforcement action) pending as of 
        such date.
                                 <all>