[Congressional Record Volume 170, Number 186 (Monday, December 16, 2024)]
[House]
[Pages H7149-H7151]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SECURE HANDLING OF INTERNET ELECTRONIC DONATIONS ACT
Mr. STEIL. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 9488) to amend the Federal Election Campaign Act of 1971 to
require the disclosure of the card verification value as a condition of
the acceptance of online contributions made through the use of credit
or debit cards in elections for Federal office and to prohibit the
acceptance of contributions made through the use of gift cards and
prepaid credit cards in such elections, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 9488
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 ``Secure Handling of Internet
Electronic Donations Act'' or the ``SHIELD Act''.
SEC. 2. REQUIRING DISCLOSURE OF CARD VERIFICATION VALUE AS
CONDITION OF ACCEPTANCE OF ONLINE CONTRIBUTIONS
MADE USING CREDIT OR DEBIT CARDS IN FEDERAL
ELECTIONS.
Section 302 of the Federal Election Campaign Act of 1971
(52 U.S.C. 30102) is amended by adding at the end the
following:
``(j)(1) No political committee shall accept any Internet
credit or debit card contribution unless--
``(A) the individual or entity making such contribution is
required, at the time such individual makes such
contribution, to disclose the card verification value of such
credit or debit card; and
``(B)(i) the mailing address of the individual or entity is
located in the United States; or
``(ii) in the case of a contribution made by an individual
whose mailing address is located outside of the United
States, the individual provides the committee with the
applicable information described in paragraph (2).
``(2) The applicable information described in this
paragraph is as follows:
``(A) In the case of an individual who is a citizen or
national of the United States--
``(i) the United States mailing address the individual uses
for voter registration purposes;
``(ii) a copy of the individual's United States passport;
or
``(iii) a copy of a comparable acceptable identification
document, or the unique identifying number from such a
document, for the individual.
``(B) In the case of a contribution made by an individual
who is lawfully admitted for permanent residence, as defined
by section 101(a)(20) of the Immigration and Nationality Act
(8 U.S.C. 1101(a)(20)--
``(i) a copy of the individual's permanent resident card;
or
[[Page H7150]]
``(ii) or a copy of a comparable acceptable identification
document issued by the Department of Homeland Security.
``(3) A political committee that accepts any Internet
credit or debit card contribution as a recurring contribution
shall require the individual or entity making such
contribution to comply with the requirements of this
subsection for the first such contribution, but shall not
require the individual or entity to provide the information
identified in paragraphs (1) and (2) for subsequent recurring
contributions made using the same credit or debit card as the
initial contribution.
``(4) A political committee that stores or saves, or
arranges to store or save, any credit or debit card
information shall require the individual or entity making
such contribution to comply with the requirements of this
subsection for the first such contribution or at the time of
storing or saving such information, but shall not require the
individual or entity to provide the information identified in
paragraphs (1) and (2) for subsequent contributions made
using the same credit or debit card as the initial
contribution.
``(5) An Internet credit or debit card contribution
received by a political committee made through the use of a
digital wallet shall be treated as complying with the
requirements of this subsection.
``(6) Notwithstanding subsection (b) or (c), in the case of
an Internet credit or debit card contribution--
``(A) no later than 10 days after receiving the
contribution, the person who receives the contribution shall
forward to the treasurer such contribution, the name and
address of the person making the contribution, and the date
of receipt; and
``(B) the treasurer of a political committee shall keep an
account of the name and address of any person making any such
contribution, together with the date and amount of such
contribution by any person consistent with applicable
regulations of the Commission, including regulations relating
to the period for which contribution records must be
preserved and the anonymity of certain contributors.
``(7)(A) A treasurer of a political committee shall
determine whether a contribution is in compliance with this
subsection. If the treasurer is unable to verify that the
acceptance of the contribution was not in violation of this
subsection, the treasurer shall, not later than 30 days after
the receipt of the contribution, refund the contribution to
the individual or entity making the contribution.
``(B) If the treasurer of a political committee shows that
best efforts have been used to comply with the requirements
of this paragraph, the committee shall be considered in
compliance with this subsection.
``(8) In this subsection--
``(A) the term `Internet credit or debit card contribution'
means a contribution that--
``(i) is made using a credit or debit card; and
``(ii) is received through an Internet website or
application; and
``(B) the term `digital wallet' means a software
application that stores payment or account information to
facilitate traditional payments that use bank and credit card
information.''.
SEC. 3. PROHIBITING ACCEPTANCE OF CONTRIBUTIONS MADE USING
GIFT CARDS IN FEDERAL ELECTIONS.
Section 302 of the Federal Election Campaign Act of 1971
(52 U.S.C. 30102), as amended by section 2(a), is amended by
adding at the end the following:
``(k)(1) No political committee shall knowingly accept a
contribution made through the use of a gift certificate or
store gift card, as such terms are defined, respectively,
under section 915(a) of the Electronic Fund Transfer Act.
``(2)(A) A treasurer of a political committee shall
determine whether a contribution is in compliance with this
subsection. If the treasurer is unable to verify that the
acceptance of the contribution was not in violation of this
subsection, the treasurer shall, not later than 30 days after
the receipt of the contribution, refund the contribution to
the individual or entity making the contribution.
``(B) If the treasurer of a political committee shows that
best efforts have been used to comply with the requirements
of this subsection, the committee shall be considered in
compliance with this subsection.''.
SEC. 4. PROHIBITING AIDING OR ABETTING MAKING OF CONTRIBUTION
IN THE NAME OF ANOTHER.
Section 320 of the Federal Election Campaign Act of 1971
(52 U.S.C. 30122) is amended by adding at the end the
following new sentence: ``No person shall knowingly direct,
help, or assist any person in making a contribution in the
name of another person.''.
SEC. 5. REGULATIONS.
(a) Deadline.--Not later than 90 days after the date of the
enactment of this Act, the Federal Election Commission shall
promulgate regulations to carry out the amendments made by
this Act.
(b) Consultation With Credit Card Payment Networks.--In
promulgating regulations under subsection (a) to carry out
the amendments made by this Act, the Commission shall consult
with representatives of payment card networks, as defined
under section 921(c) of the Electronic Fund Transfer Act (15
U.S.C. 1693o-2(c)), and other relevant stakeholders.
SEC. 6. EFFECTIVE DATE.
The amendments made by this Act shall apply with respect to
contributions made after the expiration of the 90-day period
which begins on the date the Commission promulgates
regulations under section 5.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Wisconsin (Mr. Steil) and the gentleman from New York (Mr. Morelle)
each will control 20 minutes.
The Chair recognizes the gentleman from Wisconsin.
General Leave
Mr. STEIL. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days to revise and extend their remarks and include
extraneous material on the bill, H.R. 9488.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Wisconsin?
There was no objection.
Mr. STEIL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, before I begin, I share my heartfelt condolences to the
victims of the tragic events that took place at Abundant Life Christian
School in Madison, Wisconsin, this morning.
We continue to monitor the situation, but we are all thankful to the
first responders, the men and women of law enforcement, and medical
professionals who responded and answered the call. We keep all of them,
the first responders, as well as the victims, in our prayers today.
Mr. Speaker, coming back to the matter at hand, across the political
spectrum we are seeing an increase in online political fundraising.
Serious questions have been raised related to how criminals and, in
particular, international criminals can abuse our financial and
campaign finance system. We must ensure online fundraising platforms
cannot be abused.
Today, I am proud to support my bill, H.R. 9488, the Secure Handling
of Internet Electronic Donations Act, or the SHIELD Act.
The SHIELD Act will strengthen donor verification standards for
political committees. The legislation will prohibit political
committees from accepting online contributions from credit or debit
cards without disclosure of the card verification value, or CVV, and
the billing address associated with the card.
Additionally, the SHIELD Act would prohibit political committees from
accepting contributions from gift cards, like those bought over the
counter.
Finally, the SHIELD Act will strengthen existing law that prohibits
individuals from making a contribution in the name of someone else.
With the SHIELD Act as law, the FEC will have the authority to pursue
individuals who knowingly break the law. This suggestion has been a top
bipartisan legislative recommendation from the Federal Election
Commission for years, and I am proud this legislation adopts that
recommendation.
As chairman of the Committee on House Administration, my focus has
been on increasing participation and restoring confidence in our
elections.
Nearly a year ago, my committee launched an investigation into
ActBlue, a major online fundraising platform.
{time} 1415
At the time, ActBlue did not require a card verification value, or
CVV. That is that three- or four-digit code on the back of the credit
card that you have to use almost anytime you transact online. It wasn't
used in that case in order to make political contributions.
Requiring the CVV is standard practice across the e-commerce industry
to reduce fraud and prevent unlawful foreign transactions. It is a
necessary security measure that ensures the person making the donation
is actually in physical possession of the card.
After ActBlue confirmed that it did not require a CVV in order to
make an online contribution, I sent a letter to the FEC urging them to
initiate emergency rulemaking to require that political committees,
like ActBlue, require the CVV for donors to make online contributions.
I also urged the FEC to initiate a rulemaking process to prohibit
political committees from accepting online contributions from gift
cards.
For too long now, Americans have grown weary of our election system.
We are constantly hearing reports of how foreign actors are attempting
to influence our elections. The SHIELD
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Act makes it more difficult for foreign entities to improperly
influence our elections through online fundraising platforms.
Keeping foreign funding out of our elections helps restore confidence
in our election system. Greater confidence in our elections leads to
greater participation, which is a good thing for the whole country.
I thank Representatives Stephanie Bice, Laurel Lee, Anthony
D'Esposito, Greg Murphy, and Ken Calvert for their work and support
on this important legislation. I believe that keeping foreign influence
out of our elections is an idea we can all get behind.
I also thank Ranking Member Morelle, my Democratic colleagues on the
Committee on House Administration, and the committee staff for working
together on this important piece of legislation.
Americans deserve free, fair, and secure elections. The SHIELD Act
will bring us one step closer to making sure that happens. We should
pass the SHIELD Act to keep foreign funding out of our elections.
Mr. Speaker, I reserve the balance of my time.
Mr. MORELLE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I also share my thoughts with the folks at Abundant Life
Christian School, and certainly to the students, the faculty, the
staff, and the parents, and keep them very close in our hearts and very
much in our prayers.
Mr. Speaker, I speak this afternoon in support of H.R. 9488, as
amended, the Secure Handling of Internet Electronic Donations Act, and
I extend my thanks to Chairman Steil and his entire staff for their
collaborative, bipartisan work to reach consensus on this bill before
us.
House Democrats care deeply about the integrity of our elections.
That will always be our North Star. Preventing fraudulent fundraising
practices is a critical endeavor.
This bill would provide additional privacy and security protections
for Americans who choose to engage in our democratic process by
donating to political campaigns online. We are grateful, again, to the
chair and his staff for agreeing to a number of changes we suggested
that we believe were important revisions to the bill.
I will just review those briefly for the record here. For example, it
includes changes to continue allowing recipients of Social Security and
veterans' benefits to participate in the political process through
small money donations; changes that would allow donors to continue to
simplify the political donation process by scheduling recurring
contributions and using saved credit card information; changes that
further security without hampering innovation in how we finance our
campaigns by creating special rules for contributions through digital
wallets; and changes incorporating an FEC bipartisan legislative
recommendation to prohibit aiding or abetting the making of a
contribution in the name of another individual. This provision codifies
a regulation first issued in 1989. It includes changes to give the FEC
time to make appropriate regulations to ensure that payment processors
and online platforms can continue to securely enable political
donations.
At the same time, I will make sure Americans understand that our
political contribution system is currently safe and secure. ActBlue,
for example, which enables Americans to easily engage in our political
process, is a platform that is already extremely secure and numerous
safeguards are provided for donors.
ActBlue monitors activity on its platform to ensure that
impermissible contributions are promptly identified and rejected. These
existing measures prevent potential foreign contributions, protect
donors from financial fraud, and identify fraudulent online behavior.
This bill supports the already safe online donation system. Americans
can continue to trust that our elections, our political systems,
generally speaking, are free, fair, and unaffected by fraud.
Providing credit and debit card CVVs in online contributions will
help Americans feel secure in their contributions, but Americans should
understand that the provision of CVVs this bill facilitates is in
addition to numerous other antifraud security measures that already
protect credit and debit card donors.
Regrettably, we have seen recent disinformation campaigns against the
platform. Allegations of fraudulent donor schemes involving ActBlue,
however, have been discredited and criticized by campaign finance
experts.
These campaigns distort and often misunderstand campaign finance
data.
I want all Americans to know our system is safe and that you should
feel free to participate in it. That is what my support for this
measure is all about today. We can further strengthen the security of
our online donation systems and inspire donors who feel moved to
participate.
I appreciate the work that has gone into this bill, the opportunity
to ensure the record correctly reflects the secure reality of online
donation systems, and I urge my colleagues to support this measure.
Mr. Speaker, I reserve the balance of my time.
Mr. STEIL. Mr. Speaker, I am prepared to close, and I reserve the
balance of my time.
Mr. MORELLE. Mr. Speaker, as I said, we support this bill strongly
here. This is a critical priority for us to make sure Americans
continue to have safety and feel confident in their system.
Mr. Speaker, I urge passage of the bill, and I yield back the balance
of my time.
Mr. STEIL. Mr. Speaker, I urge passage of this bill. This is one step
forward in making sure that online contribution platforms are secure
from foreign interference, and I encourage passage of the bill.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Wisconsin (Mr. Steil) that the House suspend the rules
and pass the bill, H.R. 9488, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill to amend
the Federal Election Campaign Act of 1971 to require the disclosure of
the card verification value as a condition of the acceptance of online
contributions made through the use of credit or debit cards in
elections for Federal office and to prohibit the acceptance of
contributions made through the use of gift cards in such elections, and
for other purposes.''.
A motion to reconsider was laid on the table.
____________________