[House Report 118-262]
[From the U.S. Government Publishing Office]


118th Congress    }                                     {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {     118-262

======================================================================

 
   TO AMEND THE FEDERAL ELECTION CAMPAIGN ACT OF 1971 TO EXTEND THE 
      ADMINISTRATIVE FINE PROGRAM FOR CERTAIN REPORTING VIOLATIONS

                                _______
                                

November 2, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Steil, from the Committee on House Administration, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5734]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 5734) to amend the Federal Election Campaign Act 
of 1971 to extend the Administrative Fine Program for certain 
reporting violation, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                                CONTENTS

                                                                   Page
Background and Need for Legislation..............................     2
Committee Action.................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     6
Statement of Constitutional Authority............................     6
Committee Oversight Findings.....................................     6
Statement of Budget Authority and Related Items..................     6
Congressional Budget Office Estimate.............................     6
Performance Goals and Objectives.................................     6
Duplication of Federal Programs..................................     6
Advisory on Earmarks.............................................     7
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis......................................     7
Changes in Existing Law as Reported..............................     7

                          Purpose and Summary

    H.R. 5734, To amend the Federal Election Campaign Act of 
1971 to extend the Administrative Fine Program for certain 
reporting violations, introduced by Representative Bryan Steil 
(WI-01) and co-sponsored by Representative Joseph Morelle (NY-
25) extends the Federal Election Commission's Administrative 
Fine Program for 10 years. Without this extension, the Federal 
Election Commission will lose its ability to assess civil money 
penalties for certain late and non-filed reports of receipts 
and disbursements on December 31, 2023, and be required to 
complete a longer, more time- and resource-consuming process to 
achieve compliance for these relatively minor violations. Since 
first authorizing this program in 1999, Congress has extended 
it on a bipartisan basis six times.

                  Background and Need for Legislation


                               BACKGROUND

    Congress created the Federal Election Commission (``FEC'') 
in 1974\1\ and gave it the authority to enforce all civil 
violations of federal campaign finance law.\2\ The agency is a 
bipartisan commission of six commissioners who serve single, 
non-renewable six-year terms, though many commissioners ``hold 
over'' until a new commissioner is appointed.\3\ No more than 
three commissioners may be affiliated with the same political 
party.\4\ Commissioners are appointed by the president, 
traditionally upon the recommendation of Senate leadership, and 
are subject to confirmation by the United States Senate.\5\ For 
the FEC to act, a majority vote of the commissioners is 
required.\6\
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    \1\Federal Election Campaign Act Amendments of 1974, 52 U.S.C. 
Sec. 30106 (1974).
    \2\Id. at Sec. Sec. 30106(b)(1), 30107(e).
    \3\Id. at Sec. 30106(a)(2)(A)-(B). Commissioners are allowed to 
serve holdover terms in the event a replacement is not confirmed before 
their term expires. One commissioner has been at the FEC since 2002, 15 
years longer than the standard term.
    \4\Id. at Sec. 30106(a)(2)(A).
    \5\Id. at Sec. 30106(a)(1).
    \6\Id. at Sec. 30106(c).
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    The Federal Election Campaign Finance Act (``FECA'') 
``requires political campaigns, parties, political action 
committees, and other entities that solicit funds, call for 
election or defeat of a candidate, or engage in specified 
other-campaign related activities''\7\ to file reports of 
receipts and disbursements on a timely basis.\8\ These reports 
detail the amount of money a regulated entity has raised and 
spent during the previous reporting cycle. Since 1999, the FEC 
has used the Administrative Fine Program to expedite resolution 
of non-serious reporting violations, such as late and non-filed 
reports. Previously, the FEC was required to use its 
traditional enforcement tools to compel compliance.\9\
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    \7\R. Sam. Garrett, Federal Election Commission Administrative Fine 
Program, Cong. Research Serv. (Sept. 12, 2023), available at https://
crsreports.congress.gov/product/pdf/IN/IN12198.
    \8\Legislative Recommendations of the Federal Election Commission 
2022, FEC (Dec. 15, 2022), available at https://www.fec.gov/resources/
cms-content/documents/legrec2022.pdf.
    \9\See 65 Fed. Reg. 31787 (May 19, 2000) (explaining that under the 
FEC's Administrative Fine Program, it will no longer need to use 
traditional enforcement methods for late and non-filed reports).
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    The traditional enforcement process the FEC uses for 
violations of campaign finance law is costly, arduous, and 
time- and resource-consuming.\10\ As such, it should be 
reserved for serious and substantive violations of federal 
campaign finance law, not relatively minor reporting 
violations. Under the traditional process, the FEC receives a 
complaint or referral, the agency's general counsel notifies 
the respondent that it has received a complaint, and the 
respondent is permitted to respond.\11\ Importantly, the 
general counsel is appointed by the commissioners and acts 
under their direction.\12\ Next, the commissioners vote whether 
to find ``reason to believe'' the complaint's allegations.\13\ 
If the Commission finds reason to believe the complaint's 
allegations, the FEC's general counsel is directed to commence 
an investigation or negotiate a compromise.\14\
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    \10\See 52 U.S.C. Sec. 30109 with enabling regulations at 11 CFR 
Sec. Sec. 111.1-111.24 (2023).
    \11\11 CFR Sec. Sec. 111.4-111.6 (2023).
    \12\52 U.S.C. Sec. 30106(f)(1).
    \13\11 CFR Sec. 111.9(a) (2023).
    \14\11 CFR Sec. Sec. 111.7-111.10 (2023).
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    If no compromise is reached, the FEC's general counsel 
investigates the matter further. If the investigation 
determines there is ``probable cause'' that the respondent 
engaged in unlawful activity, the general counsel files a brief 
with the commissioners explaining why there is reason to 
believe the respondent is in violation of the law.\15\ The 
commissioners then vote on whether to continue enforcement 
action based on information in that brief.\16\ If a majority of 
the commissioners agree with the brief the general counsel is 
empowered by the commissioners to continue to negotiate with 
the respondent.\17\ If that negotiation fails, the FEC will 
file suit in federal court.\18\ In all, this process could take 
over a year for the FEC to secure a final judgment holding that 
the respondent is in violation of the law.
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    \15\11 CFR Sec. 111.16 (2023) (this is known as the general 
counsel's probable cause brief).
    \16\11 CFR Sec. 111.17 (2023).
    \17\11 CFR Sec. 111.18 (2023).
    \18\11 CFR Sec. Sec. 111.18-111.19 (2023).
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    The FEC's Administrative Fine Program was first authorized 
by Congress in 1999;\19\ it has been extended six times, always 
on a bipartisan basis, to allow the FEC to assess standardized 
fines for low-severity campaign finance reporting violations. 
In stark contrast to the traditional enforcement method, the 
administrative fine program simplifies and expedites the 
process. Following an examination of the matter, the 
commissioners vote whether to find ``reason to believe'' that 
the regulated entity failed to file its report on time.\20\ If 
a majority of the commissioners agree with the finding, the FEC 
notifies the entity of the penalty amount.\21\ Regulated 
entities then have 40 days to pay the fine or to submit a 
written challenge with the FEC.\22\ If the fine is challenged, 
the FEC will conduct a secondary of the timeliness of the 
filing in question and review the calculated fine amount for 
accuracy.\23\ If the respondent disagrees with the FEC's final 
determination, it may file an appeal with the federal district 
court for the district in which the respondent resides or 
conducts business.\24\
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    \19\Pub. L. No. 106-58, Sec. 640, 113 Stat. 476 (1999) (creating 
the administrative fine program as part of FY2000 appropriations).
    \20\11 CFR Sec. 111.32 (2023).
    \21\Id.
    \22\11 CFR Sec. Sec. 111.33-111.35 (2023).
    \23\11 CFR Sec. 111.36-111.37 (2023).
    \24\11 CFR Sec. Sec. 111.38 (2023).
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    Under the Administrative Fine Program, most reports are 
considered to be ``filed late'' if they are received within 30 
days after the deadline and are considered ``not filed'' if 
they are received after 30 days after the deadline.\25\ 
Election-sensitive reports, or reports that are required to be 
filed close to an election, are considered ``filed late'' if 
they are filed after the due date up through five days before 
the election and considered ``not filed'' if they are received 
later.\26\
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    \25\Legislative Recommendations of the Federal Election Commission, 
supra note 8.
    \26\Id.
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    Under this program, the FEC assesses civil monetary 
penalties for late reports based on a number of factors: (1) 
the amount of activity on the report; (2) the number of days 
the report was late; and (3) any prior penalties for violations 
under the administrative fine regulations.\27\ For non-filed 
reports, the FEC assesses civil monetary penalties based on the 
estimated activity on the report and any prior violations by 
the committee.\28\
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    \27\Id. See also 11 CFR Sec. 111.43 (2023).
    \28\Id. See also 11 CFR Sec. 111.43 (2023) (detailing the schedule 
of penalties).
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    According to the FEC, its Administrative Fine Program is 
one of the most cost-effective and successful programs in its 
history. Since its enactment, the FEC has processed and 
finalized\29\ 4,011 cases, with almost $9 million in fines 
assessed.\30\ In 2022 alone, the FEC assessed over $1 million 
in fines.\31\ These fines do not increase the FEC's budget but 
are deposited into the general funds of the U.S. Treasury.\32\ 
Over the course of the program's history, the number of late 
and non-filed reports has decreased dramatically. Today, the 
percentage of late-filed reports is below 10 percent.\33\ In 
the 1992 through 2000 election cycles, an average of 21 percent 
of reports were filed late.\34\
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    \29\See 11 CFR Sec. 111.42 (2023) (describing that the FEC makes 
administrative fine enforcement files available to the public).
    \30\Legislative Recommendations of the Federal Election Commission, 
supra note 8.
    \31\Garrett, supra note 7.
    \32\Id.
    \33\Legislative Recommendations of the Federal Election Commission 
2022, supra note 8.
    \34\Id.
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    In all, Congress has acted six times, always on a 
bipartisan basis, to extend the Administrative Fine Program, 
extending the initial covered period from two years to 24 
years.\35\ Most recently, President Donald Trump signed 
legislation on December 21, 2018, that extended the program 
through December 31, 2023.\36\
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    \35\Pub. L. No. 107-67, Sec. 642, 115 Stat. 514, 555 (2001) 
(extending program through 2003 reports), Pub. L. No. 108-199, 
Sec. 639, 118 Stat. 3, 359 (2004) (extending program through 2005 
reports, leaving gap in coverage from January 1 to February 10, 2004); 
Pub. L. No. 109-155, Sec. 721, 119 Stat. 2396, 2493-94 (2005) 
(extending program through 2008 reports); Pub. L. No. 110-433, 122 
Stat. 4971 (2008) (extending program through 2013 reports); Pub. L. No. 
113-72, 127 Stat. 1210 (2013) (extending program through 2018 reports); 
and Pub. L. No. 115-386, 132 Stat. 5161 (2018) (extending program 
through 2023 reports).
    \36\See Pub. L. No. 115-386, 132 Stat. 5161 (2018), codified at 52 
U.S.C. Sec. 30109(a)(4)(C)(v).
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                          NEED FOR LEGISLATION

    The FEC's authority to assess civil money penalties for 
certain late and non-filed reports expires on December 31, 
2023. For the FEC to continue operating this very successful 
program, Congress must pass legislation authorizing it to do 
so.
    Despite strong political differences among the 
commissioners, the permanent extension of this program was the 
FEC's highest-priority bipartisan legislative recommendation in 
2022\37\ and a top bipartisan legislative recommendation in 
2021.\38\ Moreover, the United States Senate passed a bill 
identical to H.R. 5734, S. 2747, A bill to amend the Federal 
Election Campaign Act of 1971 to extend the Administrative Fine 
Program for certain reporting violations,\39\ by voice vote on 
September 7, 2023.
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    \37\Legislative Recommendations of the Federal Election Commission 
2022, supra note 8.
    \38\Legislative Recommendations of the Federal Election Commission 
2021, FEC (May 6, 2021), available at https://www.fec.gov/resources/
cms-content/documents/legrec2021.pdf.
    \39\A bill to amend the Federal Election Campaign Act of 1971 to 
extend the Administrative Fine Program for certain reporting 
violations, S. 2747, 118th Cong. (2023).
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    Without an extension, the FEC will be forced to use its 
traditional enforcement mechanism for all alleged violations, 
which will lead to greater costs and operational inefficiencies 
for the agency, as well as reintroduce the likelihood of a 
mismatch between the enforcement tools available and the 
relatively minor nature of violations covered by the 
Administrative Fine Program. As a result, the FEC will have 
fewer resources and less money to devote to other issues. The 
number of late-filed reports decreased following the creation 
of the Administrative Fines Program; it is possible that going 
back to the traditional enforcement process for these sorts of 
minor violations would again increase late-filed committee 
reports, thereby depriving the public of critical information 
with respect to the amount of money raised and spent by 
political committees.

                            Committee Action


                       INTRODUCTION AND REFERRAL

    On September 26, 2023, Representative Bryan Steil (WI-01), 
Chairman of the Committee on House Administration, joined by 
Representative Joseph Morelle (NY-25), Ranking Member of the 
Committee on House Administration, introduced H.R. 5734, To 
amend the Federal Election Campaign Act of 1971 to extend the 
Administrative Fine Program for certain reporting violations. 
The bill was referred to the U.S. House of Representatives 
Committee on House Administration.

                                HEARINGS

    For the purposes of clause 3(c)(6)(A) of House rule XIII, 
in the 118th Congress, the Committee held one full committee 
hearing to develop H.R. 5734.
          1. On September 20, 2023, the Committee held a full 
        committee hearing titled, ``Oversight of the Federal 
        Elections Commission.'' The hearing represented the 
        first traditional oversight hearing of the Federal 
        Election Commission in more than a decade.\40\ The 
        committee heard testimony from all six commissioners 
        and the agency's inspector general. The first panel of 
        witnesses included the Honorable Dara Lindenbaum, 
        Chairwoman, the Honorable Sean Cooksey, Vice Chairman, 
        the Honorable Shana Broussard, Commissioner, the 
        Honorable Allen Dickerson, Commissioner, the Honorable 
        Ellen Weintraub, Commissioner, and the Honorable James 
        Trainor, Commissioner. The second panel featured Mr. 
        Christopher Skinner, Inspector General.\41\
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    \40\The last traditional oversight hearing of the Federal Election 
Commission before the Committee on House Administration occurred on 
November 3, 2011. See Federal Election Commission: Reviewing Policies, 
Processes and Procedures: Hearing Before the Subcomm. on Elections of 
the H. Comm. on Admin., 112th Cong. (2011).
    \41\Oversight of the Federal Election Commission: Hearing Before 
the H. Comm. on Admin., 118th Cong. (2023).
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                        Committee Consideration

    On September 28, 2023, the Committee on House 
Administration met in open session and ordered the bill, H.R. 
5734, To amend the Federal Election Campaign Act of 1971 to 
extend the Administrative Fine Program for certain reporting 
violations, reported favorably to the House of Representatives, 
by voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of House rule XIII, the 
following vote occurred during the Committee's consideration of 
H.R. 5734:
          1. Vote to report H.R. 5734 favorably to the House of 
        Representatives, passed by voice vote.

                 Statement of Constitutional Authority

    Congress has the power to enact this legislation pursuant 
to the following:
           Article I, Section 8, Clause 18--``To make 
        all Laws which shall be necessary and proper for 
        carrying into Execution the foregoing Powers, and all 
        other Powers vested by this Constitution in the 
        Government of the United States, or in any Department 
        or Officer thereof.\42\
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    \42\U.S. Const. art. I, Sec. 8, cl. 18.
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                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of House rule XIII, the 
Committee advises that the findings and recommendations of the 
Committee, based on oversight activities under clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, are 
incorporated in the descriptive portions of this report.

            Statement of Budget Authority and Related Items

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(I) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. The 
Committee believes that there will be no additional costs 
attributable to H.R. 5734.

                  Congressional Budget Office Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives, a cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974 was not 
made available to the Committee in time for the filing of this 
report. The Chairman of the Committee shall cause such an 
estimate to be printed in the Congressional Record if it is 
received by the Committee.

                    Performance Goals and Objectives

    The performance goals and objectives of H.R. 5734 are to 
extend for an additional 10 years the statutory authorization 
of the FEC's very successful Administrative Fine Program.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of House rule XIII, no provision 
of H.R. 5734 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program.

                          Advisory on Earmarks

    In accordance with clause 9 of House rule XXI, H.R. 5734 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clauses 
9(d), 9(e), or 9(f) of House rule XXI.

                       Federal Mandates Statement

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such an estimate to be printed in 
the Congressional Record if it is received by the Committee.

                      Advisory Committee Statement

    H.R. 5734 does not establish or authorize any new advisory 
committees.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                      Section-by-Section Analysis


Section 1. Extension of Administrative Fine Program

    This section extends the authorization of the Federal 
Election Commission's Administrative Fine Program for an 
additional 10 years with a sunset date of December 31, 2033.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                 FEDERAL ELECTION CAMPAIGN ACT OF 1971




           *       *       *       *       *       *       *
TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS

           *       *       *       *       *       *       *



                              enforcement

  Sec. 309. (a)(1) Any person who believes a violation of this 
Act or of chapter 95 or chapter 96 of the Internal Revenue Code 
of 1954 has occurred, may file a complaint with the Commission. 
Such complaint shall be in writing, signed and sworn to by the 
person filing such complaint, shall be notarized, and shall be 
made under penalty of perjury and subject to the provisions of 
section 1001 of title 18, United States Code. Within 5 days 
after receipt of a complaint, the Commission shall notify, in 
writing, any person alleged in the complaint to have committed 
such a violation. Before the Commission conducts any vote on 
the complaint, other than a vote to dismiss, any person so 
notified shall have the opportunity to demonstrate, in writing, 
to the Commission within 15 days after notification that no 
action should be taken against such person on the basis of the 
complaint. The Commission may not conduct any investigation or 
take any other action under this section solely on the basis of 
a complaint of a person whose identity is not disclosed to the 
Commission.
  (2) If the Commission, upon receiving a complaint under 
paragraph (1) or on the basis of information ascertained in the 
normal course of carrying out its supervisory responsibilities, 
determines, by an affirmative vote of 4 of its members, that it 
has 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 1954, the Commission shall, 
through its chairman or vice chairman, notify the person 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.
  (3) The general counsel of the Commission shall notify the 
respondent of any recommendation to the Commission by the 
general counsel to proceed to a vote on probable cause pursuant 
to paragraph (4)(A)(i). With such notification, the general 
counsel shall include a brief stating the position of the 
general counsel on the legal and factual issues of the case. 
Within 15 days of receipt of such brief, respondent may submit 
a brief stating the position of such respondent on the legal 
and factual issues of the case, and replying to the brief of 
general counsel. Such briefs shall be filed with the Secretary 
of the Commission and shall be considered by the Commission 
before proceeding under paragraph (4).
  (4)(A)(i) Except as provided in clauses (ii) and subparagraph 
(C), if the Commission determines, by an affirmative vote of 4 
of its members, that there is probable cause to believe that 
any person has committed, or is about to commit, a violation of 
this Act or of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1954, the Commission shall attempt, for a period of at 
least 30 days, to correct or prevent such violation by informal 
methods of conference, conciliation, and persuasion, and to 
enter into a conciliation agreement with any person involved. 
Such attempt by the Commission to correct or prevent such 
violation may continue for a period of not more than 90 days. 
The Commission may not enter into a conciliation agreement 
under this clause except pursuant to an affirmative vote of 4 
of its members. A conciliation agreement, unless violated, is a 
complete bar to any further action by the Commission, including 
the bringing of a civil proceeding under paragraph (6)(A).
  (ii) If any determination of the Commission under clause (i) 
occurs during the 45-day period immediately preceding any 
election, then the Commission shall attempt, for a period of at 
least 15 days, to correct or prevent the violation involved by 
the methods specified in clause (i).
  (B)(i) No action by the Commission or any person, and no 
information derived, in connection with any conciliation 
attempt by the Commission under subparagraph (A) may be made 
public by the Commission without the written consent of the 
respondent and the Commission.
  (ii) If a conciliation agreement is agreed upon by the 
Commission and the respondent, the Commission shall make public 
any conciliation agreement signed by both the Commission and 
the respondent. If the Commission makes a determination that a 
person has not violated this Act or chapter 95 or chapter 96 of 
the Internal Revenue Code of 1954, the Commission shall make 
public such determination.
  (C)(i) Notwithstanding subparagraph (A), in the case of a 
violation of a qualified disclosure requirement, the Commission 
may--
          (I) find that a person committed such a violation on 
        the basis of information obtained pursuant to the 
        procedures described in paragraphs (1) and (2); and
          (II) based on such finding, require the person to pay 
        a civil money penalty in an amount determined, for 
        violations of each qualified disclosure requirement, 
        under a schedule of penalties which is established and 
        published by the Commission and which takes into 
        account the amount of the violation involved, the 
        existence of previous violations by the person, and 
        such other factors as the Commission considers 
        appropriate.
  (ii) The Commission may not make any determination adverse to 
a person under clause (i) until the person has been given 
written notice and an opportunity to be heard before the 
Commission.
  (iii) Any person against whom an adverse determination is 
made under this subparagraph may obtain a review of such 
determination in the district court of the United States for 
the district in which the person resides, or transacts 
business, by filing in such court (prior to the expiration of 
the 30-day period which begins on the date the person receives 
notification of the determination) a written petition 
requesting that the determination be modified or set aside.
                  (iv) In this subparagraph, the term 
                ``qualified disclosure requirement'' means any 
                requirement of--
                          (I) subsections (a), (c), (e), (f), 
                        (g), or (i) of section 304; or
                          (II) section 305.
  (v) This subparagraph shall apply with respect to violations 
that relate to reporting periods that begin on or after January 
1, 2000, and that end on or before [December 31, 2023] December 
31, 2033.
  (5)(A) If the Commission believes that a violation of this 
Act or of chapter 95 or chapter 96 of the Internal Revenue Code 
of 1954 has been committed, a conciliation agreement entered 
into by the Commission under paragraph (4)(A) may include a 
requirement that the person involved in such conciliation 
agreement shall pay a civil penalty which does not exceed the 
greater of $5,000 or an amount equal to any contribution or 
expenditure involved in such violation.
  (B) If the Commission believes that a knowing and willful 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954 has been committed, a 
conciliation agreement entered into by the Commission under 
paragraph (4)(A) may require that the person involved in such 
conciliation agreement shall pay a civil penalty which does not 
exceed the greater of $10,000 or an amount equal to 200 percent 
of any contribution or expenditure involved in such violation 
(or, in the case of a violation of section 320, which is not 
less than 300 percent of the amount involved in the violation 
and is not more than the greater of $50,000 or 1,000 percent of 
the amount involved in the violation).
  (C) If the Commission by an affirmative vote of 4 of its 
members, determined that there is probable cause to believe 
that a knowing and willful violation of this Act which is 
subject to subsection (d), or a knowing and willful violation 
of chapter 95 or chapter 96 of the Internal Revenue Code of 
1954, has occurred or is about to occur, it may refer such 
apparent violation to the Attorney General of the United States 
without regard to any limitations set forth in paragraph 
(4)(A).
  (D) In any case in which a person has entered into a 
conciliation agreement with the Commission under paragraph 
(4)(A), the Commission may institute a civil action for relief 
under paragraph (6)(A) if it believes that the person has 
violated any provision of such conciliation agreement. For the 
Commission to obtain relief in any civil action, the Commission 
need only establish that the person has violated, in whole or 
in part, any requirement of such conciliation agreement.
  (6)(A) If the Commission is unable to correct or prevent any 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954, by the methods specified in 
paragraph (4), the Commission may, upon an affirmative vote of 
4 of its members, institute a civil action for relief, 
including a permanent or temporary injunction, restraining 
order, or any other appropriate order (including an order for a 
civil penalty which does not exceed the greater of $5,000 or an 
amount equal to any contribution or expenditure involved in 
such violation) in the district court of the United States for 
the district in which the person against whom such action is 
brought is found, resides, or transacts business.
  (B) In any civil action instituted by the Commission under 
subparagraph (A), the court may grant a permanent or temporary 
injunction, restraining order, or other order, including a 
civil penalty which does not exceed the greater of $5,000 or an 
amount equal to any contribution or expenditure involved in 
such violation, upon a proper showing that the person involved 
has committed, or is about to commit (if the relief sought is a 
permanent or temporary injunction or a restraining order), a 
violation of this Act or chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954.
  (C) In any civil action for relief instituted by the 
Commission under subparagraph (A), if the court determines that 
the Commission has established that the person involved in such 
civil action has committed a knowing and willful violation of 
this Act or of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1954, the court may impose a civil penalty which does 
not exceed the greater of $10,000 or an amount equal to 200 
percent of any contribution or expenditure involved in such 
violation (or, in the case of a violation of section 320, which 
is not less than 300 percent of the amount involved in the 
violation and is not more than the greater of $50,000 or 1,000 
percent of the amount involved in the violation).
  (7) In any action brought under paragraph (5) or (6), 
subpenas for witnesses who are required to attend a United 
States district court may run into any other district.
  (8)(A) Any party aggrieved by an order to the Commission 
dismissing a complaint filed by such party under paragraph (1), 
or by a failure of the Commission to act on such complaint 
during the 120-day period beginning on the date the complaint 
is filed, may file a petition with the United States District 
Court for the District of Columbia.
  (B) Any petition under subparagraph (A) shall be filed, in 
the case of a dismissal of a compliant by the Commission, 
within 60 days after the date of the dismissal.
  (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.
  (9) Any judgment of a district court under this subsection 
may be appealed to the court of appeals, and the judgment of 
the court of appeals affirming or setting aside, in whole or in 
part, any such order of the district court shall be final, 
subject to review by the Supreme Court of the United States 
upon certiorari or certification as provided in section 1254 of 
title 28, United States Code.
  (11) If the Commission determines after an investigation that 
any person has violated an order of the court entered in a 
proceeding brought under paragraph (6), it may petition the 
court for an order to hold such person in civil contempt, but 
if it believes the violation to be knowing and willful it may 
petition the court for an order to hold such person in criminal 
contempt.
  (12)(A) Any notification or investigation made under this 
section shall not be made public by the Commission or by any 
person without the written consent of the person receiving such 
notification or the person with respect to whom such 
investigation is made.
  (B) Any member or employee of the Commission, or any other 
person, who violates the provisions of subparagraph (A) shall 
be fined not more than $2,000. Any such member, employee, or 
other person who knowingly and willfully violates the 
provisions of subparagraph (A) shall be fined not more than 
$5,000.
  (b) Before taking any action under subsection (a) against any 
person who has failed to file a report required under section 
304(a)(2)(A)(iii) for the calendar quarter immediately 
preceding the election involved, or in accordance with section 
304(a)(2)(A)(i), the Commission shall notify the person of such 
failure to file the required reports. If a satisfactory 
response is not received within 4 business days after the date 
of notification, the Commission shall, pursuant to section 
311(a)(7), publish before the election the name of the person 
and the report or reports such person has failed to file.
  (c) Whenever the Commission refers an apparent violation to 
the Attorney General, the Attorney General shall report to the 
Commission any action taken by the Attorney General regarding 
the apparent violation. Each report shall be transmitted within 
60 days after the date the Commission refers an apparent 
violation, and every 30 days thereafter until the final 
disposition of the apparent violation.
  (d)(1)(A) Any person who knowingly and willfully commits a 
violation of any provision of this Act which involves the 
making, receiving, or reporting of any contribution, donation, 
or expenditure--
          (i) aggregating $25,000 or more during a calendar 
        year shall be fined under title 18, United States Code, 
        or imprisoned for not more than 5 years, or both; or
          (ii) aggregating $2,000 or more (but less than 
        $25,000) during a calendar year shall be fined under 
        such title, or imprisoned for not more than 1 year, or 
        both.
  (B) In the case of a knowing and willful violation of section 
316(b)(3), the penalties set forth in this subsection shall 
apply to a violation involving an amount aggregating $250 or 
more during a calendar year. Such violation of section 
316(b)(3) may incorporate a violation of section 317(b), 320, 
or 321.
  (C) In the case of a knowing and willful violation of section 
322, the penalties set forth in this subsection shall apply 
without regard to whether the making, receiving, or reporting 
of a contribution or expenditure of $1,000 or more is involved.
  (D) Any person who knowingly and willfully commits a 
violation of section 320 involving an amount aggregating more 
than $10,000 during a calendar year shall be--
          (i) imprisoned for not more than 2 years if the 
        amount is less than $25,000 (and subject to 
        imprisonment under subparagraph (A) if the amount is 
        $25,000 or more);
          (ii) fined not less than 300 percent of the amount 
        involved in the violation and not more than the greater 
        of--
                  (I) $50,000; or
                  (II) 1,000 percent of the amount involved in 
                the violation; or
          (iii) both imprisoned under clause (i) and fined 
        under clause (ii).
  (2) In any criminal action brought for a violation of any 
provision of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954, any defendant may evidence their 
lack of knowledge or intent to commit the alleged violation by 
introducing as evidence a conciliation agreement entered into 
between the defendant and the Commission under subsection 
(a)(4)(A) which specifically deals with the act or failure to 
act constituting such violation and which is still in effect.
  (3) In any criminal action brought for a violation of any 
provision of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954, the court before which such 
action is brought shall take into account, in weighing the 
seriousness of the violation and in considering the 
appropriateness of the penalty to be imposed if the defendant 
is found guilty, whether--
          (A) the specific act or failure to act which 
        constitutes the violation for which the action was 
        brought is the subject of a conciliation agreement 
        entered into between the defendant and the Commission 
        under subparagraph (a)(4)(A);
          (B) the conciliation agreement is in effect; and
          (C) the defendant is, with respect to the violation 
        involved, in compliance with the conciliation 
        agreement.

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