[Congressional Record Volume 164, Number 94 (Thursday, June 7, 2018)]
[Senate]
[Pages S3348-S3350]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2460. Mr. WHITEHOUSE submitted an amendment intended to be
proposed to amendment SA 2282 submitted by Mr. Inhofe (for himself and
Mr. McCain) and intended to be proposed to the bill H.R. 5515, to
authorize appropriations for fiscal year 2019 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
[[Page S3349]]
At the end of title X, add the following:
Subtitle _--Stopping Foreign Interference in Elections
SEC. __01. SHORT TITLE.
This subtitle may be cited as the ``Stop Secret Foreign
Interference in Elections Act''.
SEC. __02. DONOR DISCLOSURE FOR CERTAIN ORGANIZATIONS
ACCEPTING DONATIONS FROM FOREIGN NATIONALS.
(a) 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. DONOR DISCLOSURE FOR CERTAIN ORGANIZATIONS
ACCEPTING DONATIONS FROM FOREIGN NATIONALS.
``(a) Definitions.--In this section:
``(1) Campaign-related disbursement.--
``(A) In general.--The term `campaign-related disbursement'
means a disbursement by a covered 501(c) organization for any
of the following:
``(i) An independent expenditure consisting of a public
communication.
``(ii) An electioneering communication, as defined in
section 304(f)(3).
``(iii) A covered transfer.
``(B) Intent not required.--A disbursement for an item
described in clause (i), (ii), or (iii) of subparagraph (A)
shall be treated as a campaign-related disbursement
regardless of the intent of the person making the
disbursement.
``(2) Covered 501(c) organization.--The term `covered
501(c) organization' means any organization that--
``(A) is described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code (other than an organization described in
section 501(c)(3) of such Code); and
``(B) has received contributions or donations in excess of
$2,000 during the election reporting cycle from a foreign
national.
``(3) Covered transfer.--The term `covered transfer' means
a transfer described in subsection (e).
``(4) Disclosure date.--The term `disclosure date' means--
``(A) the first date during any election reporting cycle by
which a person--
``(i) has received contributions or donations in excess of
$2,000 from a foreign national; and
``(ii) has made campaign-related disbursements aggregating
more than $10,000; and
``(B) any other date during such election reporting cycle
by which a covered 501(c) organization has made campaign-
related disbursements aggregating more than $10,000 since the
most recent disclosure date for such election reporting
cycle.
``(5) 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.
``(6) Foreign national.--The term `foreign national' has
the meaning given such term under section 319.
``(7) Payment.--The term `payment' includes any
contribution, donation, transfer, payment of dues, or other
payment.
``(b) Disclosure Statement.--
``(1) In general.--Any covered 501(c) 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 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 501(c) organization.
``(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) For each payment to the covered 501(c) organization
by a foreign national--
``(i) the name and address of the foreign national 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 foreign national during the period beginning on the first
day of the election reporting cycle and ending on the
disclosure date,
but only if such payment was made by a foreign national who
made payments to the covered 501(c) organization in an
aggregate amount of $2,000 or more during the period
beginning on the first day of the election reporting cycle
and ending on the disclosure date.
``(E) Such other information as required in rules
established by the Commission to promote the purposes of this
section.
``(3) Exceptions for amounts received from affiliates.--The
requirement to include in a statement submitted under
paragraph (1) the information described in subparagraph (D)
of paragraph (2) shall not apply to any amount which is
described in subsection (e)(2)(A)(i).
``(c) Coordination With 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.
``(d) 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.
``(e) Covered Transfer Defined.--
``(1) In general.--In this section, the term `covered
transfer' means any transfer or payment of funds by a covered
501(c) organization to another person if the covered 501(c)
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) Exception for certain transfers among affiliates.--
``(A) Exception for certain transfers among affiliates.--
``(i) In general.--The term `covered transfer' does not
include an amount transferred by one covered 501(c)
organization to another covered 501(c) organization if such
transfer is treated as a transfer between affiliates under
subparagraph (B).
``(ii) Special rule.--If the aggregate amount of transfers
described in clause (i) exceeds $50,000 in any election
reporting cycle--
``(I) the covered 501(c) organization which makes such
transfers shall provide to the covered 501(c) organization
receiving such transfers the information required under
subsection (b)(2)(D) (applied by substituting `the period
beginning on the first day of the election reporting cycle
and ending on the date of the most recent transfer described
in subsection (e)(2)(A)(i)' for `the period covered by the
statement' in clause (i) thereof); and
``(II) the covered 501(c) organization receiving such
transfers shall report the information described in subclause
(I) on any statement filed under subsection (a)(1) as if any
contribution, donation, or transfer to which such information
relates was made directly to the covered 501(c) organization
receiving the transfer.
``(B) Description of transfers between affiliates.--A
transfer of amounts from one covered 501(c) organization to
another covered 501(c) 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.
``(C) Determination of affiliate status.--For purposes of
this paragraph, the following organizations shall be
considered to be affiliated with each other:
``(i) A membership organization, including a trade or
professional association, and the related State and local
entities of that organization.
``(ii) A national or international labor organization and
its State or local unions, or an organization of national or
international unions and its State and local entities.
``(D) Coverage of transfers to affiliated section 501(c)(3)
organizations.--This paragraph shall apply with respect to an
amount transferred by a covered 501(c) 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
[[Page S3350]]
manner as this paragraph applies to an amount transferred by
a covered 501(c) organization to another covered 501(c)
organization.''.
(b) 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(c), any
requirement''.
(c) 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 subsection.
(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.
(d) Effective Date.--The amendments made by this section
shall apply with respect to disbursements made on or after
January 1, 2019, and shall take effect without regard to
whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
SEC. __03. DUE DILIGENCE REQUIREMENTS.
(a) Certification.--
(1) In general.--Title III of the Federal Election Campaign
Act of 1971 (52 U.S.C. 30101 et seq.) is amended by adding at
the end the following new section:
``SEC. 325. CERTIFICATIONS.
``(a) Requirement To File Certification.--
``(1) In general.--Each covered organization that makes a
report under section 304 with respect to an independent
expenditure or a disbursement for the direct costs of
producing an electioneering communication shall include with
such report a certification described in subsection (b).
``(2) Covered 501(c) organizations.--Each covered 501(c)
organization (within the meaning of section 324) that makes a
report under section 324 with respect to a campaign-related
disbursement shall include with such report a certification
described in subsection (b).
``(b) Certification.--
``(1) In general.--A certification is described in this
subsection if the certification is made by the principal
executive officer or officers and the principal financial
officer or officers of such covered organization, or persons
performing similar functions, stating that--
``(A) the signing officer has reviewed the report;
``(B) the organization has met the due diligence
requirements under paragraph (2); and
``(C) based on the officer's knowledge, none of the funds
used to make any expenditure or disbursement described in the
report or statement were provided by a foreign national (as
defined in section 319).
``(2) Due diligence requirement.--
``(A) In general.--The due diligence requirement under this
paragraph shall be met if the organization affirmatively
verifies that each contribution or donation received by the
organization during the 2-year period ending on the date of
the expenditure or disbursement described in subsection (a)
was not a contribution or donation that was made, directly or
indirectly, by a foreign national (within the meaning of
section 319).
``(B) Use of segregated account.--In the case of an
organization with a separate segregated account from which
the expenditure or disbursement described in subsection (a)
was made, subparagraph (A) shall be applied only with respect
to contributions and donations made to such account.
``(c) Covered Organization Defined.--In this subsection,
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.''.
(2) Effective date.--The amendment made by subsection (a)
shall apply to reports required to be filed after the date of
the enactment of this Act.
(b) Reporting of Suspicious Donations.--
(1) Covered 501(c) organizations.--
(A) In general.--Section 501 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(s) Requirement To Report Certain Contributions.--
``(1) In general.--No organization described in subsection
(c) (other than an organization described in paragraph (3)
thereof) shall be exempt from tax under subsection (a) unless
such organization reports any disqualified foreign
contribution, not later than 15 days after receiving such
contribution, to the entities listed in paragraph (3).
``(2) Disqualified foreign contribution.--For purposes of
this subsection, the term `disqualified foreign contribution'
means any donation or contribution received from foreign
national (within the meaning of section 319 of the Federal
Election Campaign Act of 1971) and which is made or received
for a purpose described in section 319(a) of such Act.
``(3) Entities.--The entities described in this paragraph
are the following:
``(A) The Internal Revenue Service.
``(B) The Federal Election Commission.
``(C) The Financial Crimes Enforcement Network of the
Department of Treasury.
``(D) The Department of Justice.''.
(B) Effective date.--The amendment made by this paragraph
shall apply to contributions made after the date of the
enactment of this Act.
(2) Corporate entities.--
(A) In general.--Each corporation and each limited
liability corporation that is not otherwise treated as a
corporation under the Federal Election Campaign Act of 1971
shall report any disqualified foreign contribution (as
defined in section 501(s) of the Internal Revenue Code of
1986), not later than 15 days after receiving such
contribution, to the following entities:
(i) The Federal Election Commission.
(ii) The Financial Crimes Enforcement Network of the
Department of Treasury.
(iii) The Department of Justice.
(B) Exception.--Subparagraph (A) shall not apply to any
entity that is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986.
(C) Criminal penalty.--Any person who fails to make a
report under subparagraph (A) shall be guilty of a
misdemeanor and, upon conviction thereof, shall be fined not
more than $100,000, or imprisoned not more than 1 year, or
both, together with the costs of prosecution.
______