[House Report 118-534]
[From the U.S. Government Publishing Office]


118th Congress }                                              {    Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                              {  118-534

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



 
     ELECTRONIC FILING OF ELECTIONEERING COMMUNICATION REPORTS ACT

                                _______
                                

  June 3, 2024.--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

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 7321]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 7321) to amend the Federal Election Campaign Act 
of 1971 to modernize certain reporting requirements for 
electioneering communications, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Committee Action.................................................     6
Committee Consideration..........................................     7
Committee Votes..................................................     7
Statement of Constitutional Authority............................     7
Committee Oversight Findings.....................................     7
Statement of Budget Authority and Related Items..................     7
Congressional Budget Office Estimate.............................     7
Performance Goals and Objectives.................................     9
Duplication of Federal Programs..................................     9
Advisory on Earmarks.............................................     9
Federal Mandates Statement.......................................     9
Advisory Committee Statement.....................................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis......................................     9
Changes in Existing Law as Reported..............................     9
Additional Views.................................................    26

                          Purpose and Summary

    H.R. 7321, the Electronic Filing of Electioneering 
Communication Reports Act, introduced by Representative Joseph 
Morelle (NY-25) and co-sponsored by Representative's Bryan 
Steil (WI-01) and Joe Neguse (CO-02) requires entities that 
report more than $50,000 in electioneering communications to 
file their electioneering communication reports electronically 
with the Federal Election Commission. The electioneering 
communication report is the last remaining campaign finance 
report not subject to a mandatory electronic filing. This will 
allow the Federal Election Commission to process and 
disseminate these reports more effectively and efficiently and 
increase public transparency as the reports will be available 
for download within minutes of being submitted.

                  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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    The Federal Election Campaign Finance Act (``FECA'') 
requires individuals and other persons, including corporations 
and labor organizations, that make disbursements for 
electioneering communications aggregating over $10,000 in the 
calendar year, to file an electioneering communication report 
with the FEC.\7\ FECA defines an electioneering communication 
as any broadcast, cable, or satellite communication that refers 
to a clearly identified federal candidate,\8\ is publicly 
distributed\9\ within 30 days of a primary or 60 days of a 
general election and is targeted to the relevant 
electorate.\10\ To give an example of an electioneering 
communication, the Wisconsin Right to Life once ran several 
radio advertisements in Wisconsin, asking voters to contact 
then Wisconsin Senator Russ Feingold and ask him to oppose 
filibustering President George W. Bush's federal judicial 
nominees.\11\ The ads ran in Wisconsin, throughout August 2004, 
and Senator Feingold's primary was slated to take place on 
August 15th, 2004.\12\
---------------------------------------------------------------------------
    \7\Id. at Sec. 30104(f).
    \8\A candidate is ``clearly identified'' if the candidate's name, 
nickname, photograph or drawing appears, or the identity of the 
candidate is otherwise apparent through an unambiguous reference such 
as ``the President,'' ``your Representative,'' or ``the incumbent.'' 
See 11 CFR Sec. 100.29(b)(2).
    \9\A communication is ``publicly distributed'' for the purposes of 
the rules governing electioneering communications when it is aired, 
broadcast, cablecast or otherwise disseminated through the facilities 
of a radio or television station, cable television system or a 
satellite system. See 11 CFR Sec. 100.29(b)(3).
    \10\52 U.S.C. Sec. 30104(f)(3)(A). A communication is ``targeted to 
the relevant electorate'' when it is receivable by 50,000 or more 
persons in the candidate's district (for a House candidate) or state 
(for a Senate candidate). In the case of presidential and vice-
presidential candidates, the communication is publicly distributed if 
it can be received by 50,000 or more people in a state where a primary 
election or caucus is being held within 30 days or anywhere in the 
United States 30 days prior to the nominating convention or 60 days 
prior to the general election. See 11 CFR Sec. 100.29(b)(5).
    \11\See generally Federal Election Comm'n v. Wisconsin Right to 
Life, Inc., 127 S. Ct. 2652 (2007).
    \12\Id.
---------------------------------------------------------------------------
    The Bipartisan Campaign Reform Act of 2002 (``BCRA'') 
commonly known as ``McCain-Feingold''\13\ significantly cut 
back on the ability of corporations and labor unions to engage 
in political speech. Before BCRA, corporations could engage in 
political speech through independent expenditures\14\ so long 
as their speech did not expressly advocate the election or 
defeat of a clearly identified federal candidate.\15\ The BCRA 
made it a crime for corporations and labor unions to use their 
general treasury funds to make electioneering communications 
(``electioneering communication prohibition'').\16\ This 
prohibition meant that for corporations or labor unions to fund 
an electioneering communication, they needed to create a 
separate segregated fund run by a political action 
committee.\17\ The BCRA also imposed disclaimer and disclosure 
requirements on entities making certain electioneering 
communications.\18\
---------------------------------------------------------------------------
    \13\See Pub. L. No. 107-155, 116 Stat. 81 (2002). The law is 
referred to as ``McCain-Feingold'' because the main sponsors of the 
bill were then-Senators John McCain (AZ) and Russ Feingold (WI).
    \14\An independent expenditure is an expenditure for a 
communication, such as an advertisement through a website, digital 
device, application, advertising platform, newspaper, TV or direct mail 
that: expressly advocates the election or defeat of a clearly 
identified candidate; and is not made in consultation or cooperation 
with, or at the request or suggestion of any candidate, or his or her 
authorized committees or agents, or a political party committee or its 
agents. See 52 U.S.C. 30101(17).
    \15\Wisconsin Right to Life, 127 S. Ct. at 2659.
    \16\Wisconsin Right to Life, 127 S.Ct. at 2658-59.
    \17\Id. at 2675-76 (Scalia, J., concurring in concurring in part 
and concurring in the judgment.)
    \18\See 52 U.S.C. Sec. Sec. 30104(f)(2), 30120 with enabling 
regulations at 11 CFR Sec. 110.11.
---------------------------------------------------------------------------
    In the first constitutional challenge to the BCRA, the 
Supreme Court upheld a facial challenge to the electioneering 
communication prohibition with the caveat that the 
electioneering communication constituted express advocacy or 
its functional equivalent.\19\ But several years later, the 
Supreme Court held that the BCRA, as applied to the Wisconsin 
electioneering communications described above, was 
unconstitutional as it regulated issue advertisements.\20\ 
Finally, in Citizens United v. Federal Election Commission, the 
Supreme Court invalidated BCRA's electioneering communication 
prohibition, thereby allowing corporations and labor unions to 
use their general treasury funds on any type of electioneering 
communications.\21\ The Court also upheld BCRA's disclaimer and 
disclosure requirements and left unscathed the federal 
prohibition on foreign individuals or associations from 
engaging in political speech.\22\
---------------------------------------------------------------------------
    \19\McConnell v. Federal Election Comm'n, 540 U.S. 93, 206 (2003). 
In Federal Election Comm'n v. Wisconsin Right to Life, Inc., Chief 
Justice Roberts and Justice Alito reasoned that ``a court should find 
that an ad is the functional equivalent of express advocacy only if the 
ad is susceptible of no reasonable interpretation other than as an 
appeal to vote for or against a specific candidate.'' Wisconsin Right 
to Life, 127 S.Ct. at 2667 (opinion of Roberts, C.J.). In an opinion 
concurring in part and concurring in the judgment, Justice Scalia, 
joined by Justices Kennedy and Thomas argued that McConnell's holding 
bifurcating between express advocacy or its functional equivalent and 
everything else was wrong, unconstitutionally infringed on political 
speech, and that part of the opinion should be overturned. Id. at 2684-
86 (Scalia., J. concurring in part and concurring in the judgment).
    \20\Wisconsin Right to Life, 127 S.Ct. at 2670-71. The 
advertisements were not express advocacy or its functional equivalent 
because they ``. . . may reasonably be interpreted as something other 
than as an appeal to vote for or against a specific candidate . . . and 
therefore fall outside the scope of McConnell's holding.'' As such, the 
BCRA's application to the advertisements were unconstitutional under 
the First Amendment because the Supreme Court has never recognized a 
compelling government interest in regulating issue advertisements. Id. 
at 2671.
    \21\Citizens United v. Federal Election Comm'n, 130 S.Ct. 876, 917 
(2010). Importantly, the Court rejected Citizens United's argument that 
its film entitled Hillary: The Movie was not express advocacy or its 
functional equivalent. Id. at 888-892. Therefore, the Court's 
invalidation of BCRA's electioneering communication prohibition covers 
both the prohibition on general treasury funds and those funds being 
used to fund communications that constitute express advocacy or its 
functional equivalent.
    \22\Id. at 911, 913-17. See also Bluman v. FEC, 800 F. Supp. 2d 
281, 288 (D.D.C. 2011), aff'd, 565 U.S. 1104 (2012). In this case, the 
Supreme Court of the United States has never been presented with the 
question whether the foreign national prohibition violates the First 
Amendment, it has previously affirmed a three-judge court's decision, 
authored by then-Judge Kavanaugh, which upheld the foreign national 
prohibition with respect to foreign nationals who wanted to make 
contributions to federal and State candidates. In addition, on November 
30, 2023, the U.S. House of Representatives Committee on House 
Administration passed H.R. 3229, Stop Foreign Funds in Elections Act 
out of committee. That legislation prohibits foreign nationals from 
making a contribution or donation of money or other thing of value, or 
to make an express or implied promise to make a contribution or 
donation to a State or local ballot initiative, referendum, or recall 
election.
---------------------------------------------------------------------------
    Entities filing an electioneering communication report must 
file a 24 Hour Notice of Disbursements/Obligations for 
Electioneering Communications on Form 9 within 24 hours of the 
disclosure date.\23\ This form must be received by the FEC by 
11:59 p.m. Eastern Standard/Daylight Time of the day following 
the disclosure date.\24\ Entities that fail to meet this 
deadline because they file their report late or do not file 
them at all are subject to a number of different FEC 
enforcement mechanisms.\25\ The contents of the report must 
include: the identity of the entity making the disbursement, 
its principal place of business, the amount of each 
disbursement of more than $200 during the period covered by the 
statement, the identity of the person to whom the disbursement 
was made, the election to which the communication pertains, and 
the names of the candidates identified or to be identified, 
among other requirements.\26\
---------------------------------------------------------------------------
    \23\52 U.S.C. Sec. 30104(f)(1), 11 CFR 104.20(b).
    \24\11 CFR 104.20(b).
    \25\See generally 52 U.S.C. Sec. Sec. 30107, 30109-30111. Unlike 
reports filed by political committees that have clear deadlines, the 
FEC does not know when an electioneering communication report will be 
filed because entities can choose to make these communications at any 
time. As such, the FEC will often receive complaints when an entity 
does not file an electioneering communication report on time or at all.
    \26\Id. at Sec. 30104(f)(2).
---------------------------------------------------------------------------
    While the scope of an electioneering communication seems 
broad, it comes with several exceptions. First, if a political 
committee were to run an electioneering communication, it would 
be reported as an expenditure or independent expenditure,\27\ 
for which committees file separate reports.\28\ Second, 
communications publicly disseminated through means other than 
broadcast, cable, or satellite do not qualify.\29\ 
Communications that appear in a news story or editorial that is 
not owned or controlled by a political party or candidate also 
does not qualify.\30\ And importantly, a candidate debate or 
forum or the promotion of by the sponsor of the event does not 
qualify.\31\ Finally, the FEC is permitted to promulgate other 
exceptions as well.\32\
---------------------------------------------------------------------------
    \27\Id. at Sec. 30104(f)(B)(ii). See also 11 CFR Sec. 104.20(b) 
(``Political committees that make communications that are described in 
11 CFR 100.29(a) must report such communications as expenditures or 
independent expenditures under 11 CFR 104.3 and 104.4, and not under 
this section.'')
    \28\See Id. Sec. 30104(a)(1)-(2).
    \29\52 U.S.C. Sec. 30104(f)(3)(A)(i).
    \30\Id. Sec. 30104(f)(B)(i).
    \31\Id. at Sec. 30104(f)(B)(iii).
    \32\Id. at Sec. 30104(f)(b)(iv).
---------------------------------------------------------------------------
    Mandatory electronic filing of all reports is already 
required under current law once a political committee receives 
contributions or make expenditures in excess of $50,000\33\ in 
the calendar year or has reason to expect to do so.\34\ Once 
this threshold is exceeded, the committee must file their 
reports electronically for the remainder of the calendar 
year.\35\ Similarly, if the committee also has reason to expect 
to exceed the threshold during the next two calendar years once 
the $50,000 threshold is exceeded and must file electronically 
in those years as well.\36\ The FEC provides free electronic 
filing software to help committees file their reports 
online.\37\ However, because political committees do not file 
electioneering reports, the law does not require entities that 
do file them to do so electronically. Therefore, some entities 
still file them on paper.
---------------------------------------------------------------------------
    \33\The FEC established the $50,000 figure in response to a 
Congressional mandate for the FEC to have final rules on electronic 
filing in effect on January 1, 2001. See Pub. L. No. 106-58, 113 Stat. 
476 (1999), as amended, codified at 52 U.S.C. Sec. 30104(a)(11)(i)-(ii) 
with the final rule published at 60 Fed. Reg. 120 (June 21, 2000). See 
also 11 CFR Sec. 104.18(a). The $50,000 figure has not been changed 
since this rule was promulgated.
    \34\52 U.S.C. Sec. 30103(a)(11) with enabling regulations at 11 CFR 
Sec. 104.18(a).
    \35\Id.
    \36\Id.
    \37\FECFile: the FEC's free software, FEC, available at https://
www.fec.gov/help-candidates-and-committees/filing-reports/fecfile-
software/.
---------------------------------------------------------------------------
    In the 117th Congress, former Ranking Member on the 
Committee on House Administration, Representative Rodney Davis 
(IL-13), introduced H.R. 8528, the American Confidence in 
Elections Act,\38\ which included legislation substantially 
similar to Rep. Morelle's H.R. 7321, the Electronic Filing of 
Electioneering Communication Reports Act.
---------------------------------------------------------------------------
    \38\American Confidence in Elections Act, H.R. 8528, 117th Cong. 
Sec. 2 (2022).
---------------------------------------------------------------------------
    In the 118th Congress, Representative Bryan Steil (WI-01), 
introduced H.R. 4563, an updated version of the American 
Confidence in Elections Act,\39\ which includes Rep. Morelle's 
H.R. 7321, the Electronic Filing of Electioneering 
Communication Reports Act.
---------------------------------------------------------------------------
    \39\American Confidence in Elections Act, H.R. 4562, 118th Cong. 
Sec. 1 (2023).
---------------------------------------------------------------------------

                          NEED FOR LEGISLATION

    Rep. Morelle's (NY-25) Electronic Filing of Electioneering 
Communication Reports Act would require entities that report 
more than $50,000 of electioneering communications in a 
calendar year to file their electioneering communication 
reports electronically with the FEC. Entities that report less 
than $50,000, a threshold set by the FEC,\40\ would still be 
allowed to file these reports on paper.
---------------------------------------------------------------------------
    \40\Supra note 33.
---------------------------------------------------------------------------
    Despite strong political differences among the 
commissioners, this legislative change was the FEC's top 
legislative recommendation in 2021,\41\ a priority legislative 
recommendation in 2022,\42\ and a similar proposal was a 
priority legislative recommendation in 2023.\43\
---------------------------------------------------------------------------
    \41\Legislative Recommendations of the Federal Election Commission 
2021, FEC (May 6, 2021), available at https://www.fec.gov/resources/
cms-content/documents/legrec2021.pdf.
    \42\Legislative Recommendations of the Federal Election Commission 
2022, FEC (Dec. 15, 2022), available at https://www.fec.gov/resources/
cms-content/documents/legrec2022.pdf.
    \43\Legislative Recommendations of the Federal Election Commission 
2023, FEC (Dec. 14, 2023), available at https://www.fec.gov/resources/
cms-content/documents/legrec2023.pdf.
---------------------------------------------------------------------------
    Today, federal law already requires the mandatory 
electronic filing for political committees and other persons if 
they receive contributions or make expenditures in excess of 
$50,000 in the current calendar year, or have reason to expect 
to do so.\44\ Similarly, mandatory electronic filing is 
required for many independent expenditure reports.\45\ However, 
as described above, because political committees do not file 
electioneering communication reports, federal law does not 
require entities that file electioneering communication reports 
to do so electronically. As such, this legislative change will 
ensure that all major filings with the FEC are done so 
electronically.
---------------------------------------------------------------------------
    \44\52 U.S.C. Sec. 30104(a)(11) with enabling regulations at 11 CFR 
Sec. 104.18(a).
    \45\Id.
---------------------------------------------------------------------------
    Electronic filing of electioneering communication reports 
also promotes transparency and public awareness. Electronic 
reports are received, processed, and disseminated more 
expeditiously than paper filings. This ensures FEC staff do not 
have to waste time or resources handling paper filings and 
uploading them to the internet. Moreover, reports filed 
electronically can be available for public viewing and download 
within minutes, whereas the FEC estimates it takes at least 48 
hours before a paper filing's initial appearance on the FEC's 
website.\46\ Finally, electronic filings are not subject to the 
impediments that paper filings face due to post office 
processing or disruptions in the delivery of mail.
---------------------------------------------------------------------------
    \46\Legislative Recommendations of the Federal Election Commission 
2022 at page 7, FEC (Dec. 15, 2022), available at https://www.fec.gov/
resources/cms-content/documents/legrec2022.pdf.
---------------------------------------------------------------------------

                            Committee Action


                       INTRODUCTION AND REFERRAL

    On February 13, 2024, Representative Joseph Morelle (NY-
25), Ranking Member of the Committee on House Administration, 
joined by Representative Bryan Steil (WI-01), Chairman of the 
Committee on House Administration and Representative Joe Neguse 
(CO-02), introduced H.R. 7321, the Electronic Filing of 
Electioneering Communication Reports Act. 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. 7321.
    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.\47\ 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.\48\
---------------------------------------------------------------------------
    \47\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).
    \48\Oversight of the Federal Election Commission: Hearing Before 
the H. Comm. on Admin., 118th Cong. (2023).
---------------------------------------------------------------------------

                        Committee Consideration

    On February 14, 2024, the Committee on House Administration 
met in open session and ordered the bill, H.R. 7321, the 
Electronic Filing of Electioneering Communication Reports Act, 
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. 7321 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.\49\
---------------------------------------------------------------------------
    \49\U.S. Const. art. I, Sec. 8, cl. 18.
---------------------------------------------------------------------------

                      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. 7321.

                  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 (``CBO'') 
pursuant to section 402 of the Congressional Budget Act of 1974 
was made available to the Committee in time for the filing of 
this report. CBO estimated that implementing H.R. 7321 would 
cost less than $500,000 over the 2024-2029 period. The CBO 
report is attached with the committee report materials 
submitted to the Clerk.




    H.R. 7321 would amend the Federal Election Campaign Act of 
1971 to require the Federal Election Commission (FEC) to expand 
the communication reporting requirements for candidates running 
for federal office. Using information from the FEC, CBO 
estimates that implementing H.R. 7321 would cost less than 
$500,000 over the 2024-2029 period. Any related spending would 
be subject to the availability of appropriated funds.
    The bill also could increase the collection of fines and 
penalties from violations of campaign finance laws, which are 
recorded in the budget as revenues. However, CBO estimates that 
any additional collections of penalties and fines resulting 
from the legislation would not be significant because of the 
small number of anticipated violations.
    H.R. 7321 would impose a private-sector mandate as defined 
in the Unfunded Mandates Reform Act (UMRA) by expanding the 
reporting requirements on candidates running for federal 
office. The bill would require candidates for federal office to 
report electioneering communications in excess of a threshold 
to be determined by the FEC. Because federal campaigns are 
subject to existing requirements and the duty would impose only 
a minor additional burden, CBO estimates that the cost of the 
mandate would fall below the private-sector threshold 
established in UMRA ($200 million in 2024, adjusted annually 
for inflation).
    H.R. 7321 contains no intergovernmental mandates as defined 
in UMRA.
    The CBO staff contacts for this estimate are Matthew 
Pickford (for federal costs) and Grace Watson (for mandates). 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                    Performance Goals and Objectives

    The performance goals and objectives of H.R. 7321 are to 
require entities that report more than $50,000 in 
electioneering communications to file their electioneering 
communication reports electronically with the Federal Election 
Commission.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of House rule XIII, no provision 
of H.R. 7321 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. 7321 
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. 7321 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. Short title

    This section provides a short title for the bill, the 
Electronic Filing of Electioneering Communication Reports Act.

Section 2. Modernization of certain reporting requirements for 
        Electioneering Communications

    This section requires entities that report more than 
$50,000 in electioneering communications to file their 
electioneering communication reports electronically with the 
Federal Election Commission.

         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 (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

           *       *       *       *       *       *       *



                                reports

  Sec. 304. (a)(1) Each treasurer of a political committee 
shall file reports of receipts and disbursements in accordance 
with the provisions of this subsection. The treasurer shall 
sign each such report.
  (2) If the political committee is the principal campaign 
committee of a candidate for the House of Representatives or 
for the Senate--
          (A) in any calendar year during which there is 
        regularly scheduled election for which such candidate 
        is seeking election, or nomination for election, the 
        treasurer shall file the following reports:
                  (i) a pre-election report, which shall be 
                filed no later than the 12th day before (or 
                posted by any of the following: registered 
                mail, certified mail, priority mail having a 
                delivery confirmation, or express mail having a 
                delivery confirmation, or delivered to an 
                overnight delivery service with an on-line 
                tracking system, if posted or delivered no 
                later than the 15th day before) any election in 
                which such candidate is seeking election, or 
                nomination for election, and which shall be 
                complete as of the 20th day before such 
                election;
                  (ii) a post-general election report, which 
                shall be filed no later than the 30th day after 
                any general election in which such candidate 
                has sought election, and which shall be 
                complete as of the 20th day after such general 
                election; and
                  (iii) additional quarterly reports, which 
                shall be filed no later than the 15th day after 
                the last day of each calendar quarter, and 
                which shall be complete as of the last day of 
                each calendar quarter: except that the report 
                for the quarter ending December 31 shall be 
                filed no later than January 31 of the following 
                calendar year; and
          (B) in any other calendar year the treasurer shall 
        file quarterly reports, which shall be filed not later 
        than the 15th day after the last day of each calendar 
        quarter, and which shall be complete as of the last day 
        of each calendar quarter, except that the report for 
        the quarter ending December 31 shall be filed not later 
        than January 31 of the following calendar year.
  (3) If the committee is the principal campaign committee of a 
candidate for the office of President--
          (A) in any calendar year during which a general 
        election is held to fill such office--
                  (i) the treasurer shall file monthly reports 
                if such committee has on January 1 of such 
                year, received contributions aggregating 
                $100,000 or made expenditures aggregating 
                $100,000 or anticipates receiving contributions 
                aggregating $100,000 or more or making 
                expenditures aggregating $100,000 or more 
                during such year: such monthly reports shall be 
                filed no later than the 20th day after the last 
                day of each month and shall be complete as of 
                the last day of the month, except that, in lieu 
                of filing the report otherwise due in November 
                and December, a pre-general election report 
                shall be filed in accordance with paragraph 
                (2)(A)(i), a post-general election report shall 
                be filed in accordance with paragraph 
                (2)(A)(ii), and a year end report shall be 
                filed no later than January 31 of the following 
                calendar year;
                  (ii) the treasurer of the other principal 
                campaign committees of a candidate for the 
                office of President shall file a pre-election 
                report or reports in accordance with paragraph 
                (2)(A)(i), a post-general election report in 
                accordance with paragraph (2)(A)(ii), and 
                quarterly reports in accordance with paragraph 
                (2)(A)(iii); and
                  (iii) if at any time during the election year 
                a committee filing under paragraph (3)(A)(ii) 
                receives contributions in excess of $100,000 or 
                makes expenditures in excess of $100,000, the 
                treasurer shall begin filing monthly reports 
                under paragraph (3)(A)(i) at the next reporting 
                period; and
          (B) in any other calendar year, the treasurer shall 
        file either--
                  (i) monthly reports, which shall be filed no 
                later than the 20th day after the last day of 
                each month and shall be compete as of the last 
                day of the month; or
                  (ii) quarterly reports, which shall be filed 
                no later than the 15th day after the last day 
                of each calendar quarter and which shall be 
                complete as of the last day of each calendar 
                quarter.
  (4) All political committees other than authorized committees 
of a candidate shall file either--
          (A)(i) quarterly reports, in a calendar year in which 
        a regularly scheduled general election is held, which 
        shall be filed no later than the 15th day after the 
        last day of each calendar quarter: except that the 
        report for the quarter ending on December 31 of such 
        calendar year shall be filed no later than January 31 
        of the following calendar year.
          (ii) a pre-election report, which shall be filed no 
        later than the 12th day before (or posted by any of the 
        following: registered mail, certified mail, priority 
        mail having a delivery confirmation, or express mail 
        having a delivery confirmation, or delivered to an 
        overnight delivery service with an on-line tracking 
        system, if posted or delivered no later than the 15th 
        day before) any election in which the committee makes a 
        contribution to or expenditure on behalf of a candidate 
        in such election, and which shall be complete as of the 
        20th day before the election;
          (iii) a post-general election report, which shall be 
        filed no later than the 30th day after the general 
        election and which shall be complete as of the 20th day 
        after such general election; and
          (iv) in any other calendar year, a report covering 
        the period beginning January 1 and ending June 30, 
        which shall be filed no later than July 31 and a report 
        covering the period beginning July 1 and ending 
        December 31, which shall be filed no later than January 
        31 of the following calendar year; or
          (B) monthly reports in all calendar years which shall 
        be filed no later than the 20th day after the last day 
        of the month and shall be complete as of the last day 
        of the month, except that, in lieu of filing the 
        reports otherwise due in November and December of any 
        year in which a regularly scheduled general election is 
        held, a pre-general election report shall be filed in 
        accordance with paragraph (2)(A)(i), a post-general 
        election report shall be filed in accordance with 
        paragraph (2)(A)(ii), and a year end report shall be 
        filed no later than January 31 of the following 
        calendar year.
Notwithstanding the preceding sentence, a national committee of 
a political party shall file the reports required under 
subparagraph (B).
          (5) If a designation, report, or statement filed 
        pursuant to this Act (other than under paragraph 
        (2)(A)(i) or (4)(A)(ii) or subsection (g)(1)) is sent 
        by registered mail, certified mail, priority mail 
        having a delivery confirmation, or express mail having 
        a delivery confirmation, the United States postmark 
        shall be considered the date of filing the designation, 
        report or statement. If a designation, report or 
        statement filed pursuant to this Act (other than under 
        paragraph (2)(A)(i) or (4)(A)(ii), or subsection 
        (g)(1)) is sent by an overnight delivery service with 
        an on-line tracking system, the date on the proof of 
        delivery to the delivery service shall be considered 
        the date of filing of the designation, report, or 
        statement.
  (6)(A) The principal campaign committee of a candidate shall 
notify the Secretary or the Commission, and the Secretary of 
State, as appropriate, in writing, of any contribution of 
$1,000 or more received by any authorized committee of such 
candidate after the 20th day, but more than 48 hours before, 
any election. This notification shall be made within 48 hours 
after the receipt of such contribution and shall include the 
name of the candidate and the office sought by the candidate, 
the identification of the contributor, and the date of receipt 
and amount of the contribution.
  (B) Notification of expenditure from personal funds.--
          (i) Definition of expenditure from personal funds.--
        In this subparagraph, the term ``expenditure from 
        personal funds'' means--
                  (I) an expenditure made by a candidate using 
                personal funds; and
                  (II) a contribution or loan made by a 
                candidate using personal funds or a loan 
                secured using such funds to the candidate's 
                authorized committee.
          (ii) Declaration of intent.--Not later than the date 
        that is 15 days after the date on which an individual 
        becomes a candidate for the office of Senator, the 
        candidate shall file a declaration stating the total 
        amount of expenditures from personal funds that the 
        candidate intends to make, or to obligate to make, with 
        respect to the election that will exceed the State-by-
        State competitive and fair campaign formula with--
                  (I) the Commission; and
                  (II) each candidate in the same election.
          (iii) Initial notification.--Not later than 24 hours 
        after a candidate described in clause (ii) makes or 
        obligates to make an aggregate amount of expenditures 
        from personal funds in excess of 2 times the threshold 
        amount in connection with any election, the candidate 
        shall file a notification with--
                  (I) the Commission; and
                  (II) each candidate in the same election.
          (iv) Additional notification.--After a candidate 
        files an initial notification under clause (iii), the 
        candidate shall file an additional notification each 
        time expenditures from personal funds are made or 
        obligated to be made in an aggregate amount that exceed 
        $10,000 with--
                  (I) the Commission; and
                  (II) each candidate in the same election.
        Such notification shall be filed not later than 24 
        hours after the expenditure is made.
          (v) Contents.--A notification under clause (iii) or 
        (iv) shall include--
                  (I) the name of the candidate and the office 
                sought by the candidate;
                  (II) the date and amount of each expenditure; 
                and
                  (III) the total amount of expenditures from 
                personal funds that the candidate has made, or 
                obligated to make, with respect to an election 
                as of the date of the expenditure that is the 
                subject of the notification.
  (C) Notification of disposal of excess contributions.--In the 
next regularly scheduled report after the date of the election 
for which a candidate seeks nomination for election to, or 
election to, Federal office, the candidate or the candidate's 
authorized committee shall submit to the Commission a report 
indicating the source and amount of any excess contributions 
(as determined under paragraph (1) of section 315(i)) and the 
manner in which the candidate or the candidate's authorized 
committee used such funds.
  (D) Enforcement.--For provisions providing for the 
enforcement of the reporting requirements under this paragraph, 
see section 309.
  (E) The notification required under this paragraph shall be 
in addition to all other reporting requirements under this Act.
  (7) The reports required to be filed by this subsection shall 
be cumulative during the calendar year to which they relate, 
but where there has been no change in an item reported in a 
previous report during such year, only the amount need be 
carried forward.
  (8) The requirement for a political committee to file a 
quarterly report under paragraph (2)(A)(iii) or paragraph 
(4)(A)(i) shall be waived if such committee is required to file 
a pre-election report under paragraph (2)(A)(i), or paragraph 
(4)(A)(ii) during the period beginning on the 5th day after the 
close of the calendar quarter and ending on the 15th day after 
the close of the calendar quarter.
  (9) The Commission shall set filing dates for reports to be 
filed by principal campaign committees of candidates seeking 
election, or nomination for election, in special elections and 
political committees filing under paragraph (4)(A) which make 
contributions to or expenditures on behalf of a candidate or 
candidates in special elections. The Commission shall require 
no more than one pre-election report for each election and one 
post-election report for the election which fills the vacancy. 
The Commission may waive any reporting obligation of committees 
required to file for special elections if any report required 
by paragraph (2) or (4) is required to be filed within 10 days 
of a report required under this subsection. The Commission 
shall establish the reporting dates within 5 days of the 
setting of such election and shall publish such dates and 
notify the principal campaign committees of all candidates in 
such election of the reporting dates.
  (10) The treasurer of a committee supporting a candidate for 
the office of Vice President (other than the nominee of a 
political party) shall file reports in accordance with 
paragraph (3).
  (11)(A) The Commission shall promulgate a regulation under 
which a person required to file a designation, statement, or 
report under this Act--
          (i) is required to maintain and file a designation, 
        statement, or report for any calendar year in 
        electronic form accessible by computers if the person 
        has, or has reason to expect to have, aggregate 
        contributions or expenditures or makes electioneering 
        communications in excess of a threshold amount 
        determined by the Commission; and
          (ii) may maintain and file a designation, statement, 
        or report in electronic form or an alternative form if 
        not required to do so under the regulation promulgated 
        under clause (i).
  (B) The Commission shall make a designation, statement, 
report, or notification that is filed with the Commission under 
this Act available for inspection by the public in the offices 
of the Commission and accessible to the public on the Internet 
not later than 48 hours (or not later than 24 hours in the case 
of a designation, statement, report, or notification filed 
electronically) after receipt by the Commission.
  (C) In promulgating a regulation under this paragraph, the 
Commission shall provide methods (other than requiring a 
signature on the document being filed) for verifying 
designations, statements, and reports covered by the 
regulation. Any document verified under any of the methods 
shall be treated for all purposes (including penalties for 
perjury) in the same manner as a document verified by 
signature.
  (D) As used in this paragraph, the term ``report'' means, 
with respect to the Commission, a report, designation, or 
statement required by this Act to be filed with the Commission.
          (12) Software for filing of reports.--
                  (A) In general.--The Commission shall--
                          (i) promulgate standards to be used 
                        by vendors to develop software that--
                                  (I) permits candidates to 
                                easily record information 
                                concerning receipts and 
                                disbursements required to be 
                                reported under this Act at the 
                                time of the receipt or 
                                disbursement;
                                  (II) allows the information 
                                recorded under subclause (I) to 
                                be transmitted immediately to 
                                the Commission; and
                                  (III) allows the Commission 
                                to post the information on the 
                                Internet immediately upon 
                                receipt; and
                          (ii) make a copy of software that 
                        meets the standards promulgated under 
                        clause (i) available to each person 
                        required to file a designation, 
                        statement, or report in electronic form 
                        under this Act.
                  (B) Additional information.--To the extent 
                feasible, the Commission shall require vendors 
                to include in the software developed under the 
                standards under subparagraph (A) the ability 
                for any person to file any designation, 
                statement, or report required under this Act in 
                electronic form.
                  (C) Required use.--Notwithstanding any 
                provision of this Act relating to times for 
                filing reports, each candidate for Federal 
                office (or that candidate's authorized 
                committee) shall use software that meets the 
                standards promulgated under this paragraph once 
                such software is made available to such 
                candidate.
                  (D) Required posting.--The Commission shall, 
                as soon as practicable, post on the Internet 
                any information received under this paragraph.
  (b) Each report under this section shall disclose--
          (1) the amount of cash on hand at the beginning of 
        the reporting period;
          (2) for the reporting period and the calendar year 
        (or election cycle, in the case of an authorized 
        committee of a candidate for Federal office), the total 
        amount of all receipts, and the total amount of all 
        receipts in the following categories:
                  (A) contributions from persons other than 
                political committees;
                  (B) for an authorized committee, 
                contributions from the candidate;
                  (C) contributions from political party 
                committees;
                  (D) contributions from other political 
                committees;
                  (E) for an authorized committee, transfers 
                from other authorized committees of the same 
                candidate;
                  (F) transfers from affiliated committees and, 
                where the reporting committee is a political 
                party committee, transfers from other political 
                party committees, regardless of whether such 
                committees are affiliated;
                  (G) for an authorized committee, loans made 
                by or guaranteed by the candidate;
                  (H) all other loans;
                  (I) rebates, refunds, and other offsets to 
                operating expenditures;
                  (J) dividends, interest, and other forms of 
                receipts; and
                  (K) for an authorized committee of a 
                candidate for the office of President, Federal 
                funds received under chapter 95 and chapter 96 
                of the Internal Revenue Code of 1954;
          (3) the identification of each--
                  (A) person (other than a political committee) 
                who makes a contribution to the reporting 
                committee during the reporting period, whose 
                contribution or contributions have an aggregate 
                amount or value in excess of $200 within the 
                calendar year (or election cycle, in the case 
                of an authorized committee of a candidate for 
                Federal office), or in any lesser amount if the 
                reporting committee should so elect, together 
                with the date and amount of any such 
                contribution;
                  (B) political committee which makes a 
                contribution to the reporting committee during 
                the reporting period, together with the date 
                and amount of any such contribution;
                  (C) authorized committee which makes a 
                transfer to the reporting committee;
                  (D) affiliated committee which makes a 
                transfer to the reporting committee during the 
                reporting period and, where the reporting 
                committee is a political party committee, each 
                transfer of funds to the reporting committee 
                from another political party committee, 
                regardless of whether such committees are 
                affiliated, together with the date and amount 
                of such transfer;
                  (E) person who makes a loan to the reporting 
                committee during the reporting period, together 
                with the identification of any endorser or 
                guarantor of such loan, and the date and amount 
                or value of such loan;
                  (F) person who provides a rebate, refund, or 
                other offset to operating expenditures to the 
                reporting committee in an aggregate amount or 
                value in excess of $200 within the calendar 
                year (or election cycle, in the case of an 
                authorized committee of a candidate for Federal 
                office), together with the date and amount of 
                such receipt; and
                  (G) person who provides any dividend, 
                interest, or other receipt to the reporting 
                committee in an aggregate value or amount in 
                excess of $200 within the calendar year (or 
                election cycle, in the case of an authorized 
                committee of a candidate for Federal office), 
                together with the date and amount of any such 
                receipt;
          (4) for the reporting period and the calendar year 
        (or election cycle, in the case of an authorized 
        committee of a candidate for Federal office), the total 
        amount of all disbursements, and all disbursements in 
        the following categories:
                  (A) expenditures made to meet candidate or 
                committee operating expenses;
                  (B) for authorized committees, transfers to 
                other committees authorized by the same 
                candidate;
                  (C) transfers to affiliated committees and, 
                where the reporting committee is a political 
                party committee, transfers to other political 
                party committees, regardless of whether they 
                are affiliated;
                  (D) for an authorized committee, repayment of 
                loans made by or guaranteed by the candidate;
                  (E) repayment of all other loans;
                  (F) contribution refunds and other offsets to 
                contributions;
                  (G) for an authorized committee, any other 
                disbursements;
                  (H) for any political committee other than an 
                authorized committee--
                          (i) contributions made to other 
                        political committees;
                          (ii) loans made by the reporting 
                        committees;
                          (iii) independent expenditures;
                          (iv) expenditures made under section 
                        315(d) of this Act; and
                          (v) any other disbursements; and
                  (I) for an authorized committee of a 
                candidate for the office of President, 
                disbursements not subject to the limitation of 
                section 315(b);
          (5) the name and address of each--
                  (A) person to whom an expenditure in an 
                aggregate amount or value in excess of $200 
                within the calendar year is made by the 
                reporting committee to meet a candidate or 
                committee operating expense, together with the 
                date, amount, and purpose of such operating 
                expenditure;
                  (B) authorized committee to which a transfer 
                is made by the reporting committee;
                  (C) affiliated committee to which a transfer 
                is made by the reporting committee during the 
                reporting period and, where the reporting 
                committee is a political party committee, each 
                transfer of funds by the reporting committee to 
                another political party committee, regardless 
                of whether such committees are affiliated, 
                together with the date and amount of such 
                transfers;
                  (D) person who receives a loan repayment from 
                the reporting committee during the reporting 
                period, together with the date and amount of 
                such loan repayment; and
                  (E) person who receives a contribution refund 
                or other offset to contributions from the 
                reporting committee where such contribution was 
                reported under paragraph (3)(A) of this 
                subsection, together with the date and amount 
                of such disbursement;
          (6)(A) for an authorized committee, the name and 
        address of each person who has received any 
        disbursement not disclosed under paragraph (5) in an 
        aggregate amount or value in excess of $200 within the 
        calendar year (or election cycle, in the case of an 
        authorized committee of a candidate for Federal 
        office), together with the date and amount of any such 
        disbursement;
          (B) for any other political committee, the name and 
        address of each--
                  (i) political committee which has received a 
                contribution from the reporting committee 
                during the reporting period, together with the 
                date and amount of any such contribution;
                  (ii) person who has received a loan from the 
                reporting committee during the reporting 
                period, together with the date and amount of 
                such loan;
                  (iii) person who receives any disbursement 
                during the reporting period in an aggregate 
                amount or value in excess of $200 within the 
                calendar year (or election cycle, in the case 
                of an authorized committee of a candidate for 
                Federal office) in connection with an 
                independent expenditure by the reporting 
                committee, together with the date, amount, and 
                purpose of any such independent expenditure and 
                a statement which indicates whether such 
                independent expenditure is in support of, or in 
                opposition to, a candidate, as well as the name 
                and office sought by such candidate, and a 
                certification, under penalty of perjury, 
                whether such independent expenditure is made in 
                cooperation, consultation, or concert, with, or 
                at the request or suggestion of, any candidate 
                or any authorized committee or agent of such 
                committee;
                  (iv) person who receives any expenditure from 
                the reporting committee during the reporting 
                period in connection with an expenditure under 
                section 315(d) in the Act, together with the 
                date, amount, and purpose of any such 
                expenditure as well as the name of, and office 
                sought by, the candidate on whose behalf the 
                expenditure is made; and
                  (v) person who has received any disbursement 
                not otherwise disclosed in this paragraph or 
                paragraph (5) in an aggregate amount or value 
                in excess of $200 within the calendar year (or 
                election cycle, in the case of an authorized 
                committee of a candidate for Federal office) 
                from the reporting committee within the 
                reporting period, together with the date, 
                amount, and purpose of any such disbursement;
          (7) the total sum of all contributions to such 
        political committee, together with the total 
        contributions less offsets to contributions and the 
        total sum of all operating expenditures made by such 
        political committee, together with total operating 
        expenditures less offsets to operating expenditures, 
        for both the reporting period and the calendar year (or 
        election cycle, in the case of an authorized committee 
        of a candidate for Federal office); and
          (8) the amount and nature of outstanding debts and 
        obligations owed by or to such political committee; and 
        where such debts and obligations are settled for less 
        than their reported amount or value, a statement as to 
        the circumstances and conditions under which such debts 
        or obligations were extinguished and the consideration 
        therefor.
  (c)(1) Every person (other than a political committee) who 
makes independent expenditures in an aggregate amount or value 
in excess of $250 during a calendar year shall file a statement 
containing the information required under subsection (b)(3)(A) 
for all contributions received by such person.
  (2) Statements required to be filed by this subsection shall 
be filed in accordance with subsection (a)(2), and shall 
include--
          (A) the information required by subsection 
        (b)(6)(B)(iii), indicating whether the independent 
        expenditure is in support of, or in opposition to, the 
        candidate involved;
          (B) under penalty of perjury, a certification whether 
        or not such independent expenditure is made in 
        cooperation, consultation, or concert, with, or at the 
        request or suggestion of, any candidate or any 
        authorized committee or agent of such candidate; and
          (C) the identification of each person who made a 
        contribution in excess of $200 to the person filing 
        such statement which was made for the purpose of 
        furthering an independent expenditure.
  (3) The Commission shall be responsible for expeditiously 
preparing indices which set forth, on a candidate-by-candidate 
basis, all independent expenditures separately, including those 
reported under subsection (b)(6)(B)(iii), made by or for each 
candidate, as reported under this subsection, and for 
periodically publishing such indices on a timely pre-election 
basis.
  (d)(1) Any person who is required to file a statement under 
subsection (c) or (g) of this section, except statements 
required to be filed electronically pursuant to subsection 
(a)(11)(A)(i) may file the statement by facsimile device or 
electronic mail, in accordance with such regulations as the 
Commission may promulgate.
  (2) The Commission shall make a document which is filed 
electronically with the Commission pursuant to this paragraph 
accessible to the public on the Internet not later than 24 
hours after the document is received by the Commission.
  (3) In promulgating a regulation under this paragraph, the 
Commission shall provide methods (other than requiring a 
signature on the document being filed) for verifying the 
documents covered by the regulation. Any document verified 
under any of the methods shall be treated for all purposes 
(including penalties for perjury) in the same manner as a 
document verified by signature.
  (e) Political Committees.--
          (1) National and congressional political 
        committees.--The national committee of a political 
        party, any national congressional campaign committee of 
        a political party, and any subordinate committee of 
        either, shall report all receipts and disbursements 
        during the reporting period.
          (2) Other political committees to which section 323 
        applies.--
                  (A) In general.--In addition to any other 
                reporting requirements applicable under this 
                Act, a political committee (not described in 
                paragraph (1)) to which section 323(b)(1) 
                applies shall report all receipts and 
                disbursements made for activities described in 
                section 301(20)(A), unless the aggregate amount 
                of such receipts and disbursements during the 
                calendar year is less than $5,000.
                  (B) Specific disclosure by state and local 
                parties of certain non-federal amounts 
                permitted to be spent on federal election 
                activity.--Each report by a political committee 
                under subparagraph (A) of receipts and 
                disbursements made for activities described in 
                section 301(20)(A) shall include a disclosure 
                of all receipts and disbursements described in 
                section 323(b)(2)(A) and (B).
          (3) Itemization.--If a political committee has 
        receipts or disbursements to which this subsection 
        applies from or to any person aggregating in excess of 
        $200 for any calendar year, the political committee 
        shall separately itemize its reporting for such person 
        in the same manner as required in paragraphs (3)(A), 
        (5), and (6) of subsection (b).
          (4) Reporting periods.--Reports required to be filed 
        under this subsection shall be filed for the same time 
        periods required for political committees under 
        subsection (a)(4)(B).
  (f) Disclosure of Electioneering Communications.--
          (1) Statement required.--Every person who makes a 
        disbursement for the direct costs of producing and 
        airing electioneering communications in an aggregate 
        amount in excess of $10,000 during any calendar year 
        shall, within 24 hours of each disclosure date, file 
        with the Commission a statement containing the 
        information described in paragraph (2).
          (2) Contents of statement.--Each statement required 
        to be filed under this subsection shall be made under 
        penalty of perjury and shall contain the following 
        information:
                  (A) The identification of the person making 
                the disbursement, of any person sharing or 
                exercising direction or control over the 
                activities of such person, and of the custodian 
                of the books and accounts of the person making 
                the disbursement.
                  (B) The principal place of business of the 
                person making the disbursement, if not an 
                individual.
                  (C) The amount of each disbursement of more 
                than $200 during the period covered by the 
                statement and the identification of the person 
                to whom the disbursement was made.
                  (D) The elections to which the electioneering 
                communications pertain and the names (if known) 
                of the candidates identified or to be 
                identified.
                  (E) If the disbursements were paid out of a 
                segregated bank account which consists of funds 
                contributed solely by individuals who are 
                United States citizens or nationals or lawfully 
                admitted for permanent residence (as defined in 
                section 101(a)(20) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(20))) 
                directly to this account for electioneering 
                communications, the names and addresses of all 
                contributors who contributed an aggregate 
                amount of $1,000 or more to that account during 
                the period beginning on the first day of the 
                preceding calendar year and ending on the 
                disclosure date. Nothing in this subparagraph 
                is to be construed as a prohibition on the use 
                of funds in such a segregated account for a 
                purpose other than electioneering 
                communications.
                  (F) If the disbursements were paid out of 
                funds not described in subparagraph (E), the 
                names and addresses of all contributors who 
                contributed an aggregate amount of $1,000 or 
                more to the person making the disbursement 
                during the period beginning on the first day of 
                the preceding calendar year and ending on the 
                disclosure date.
          (3) Electioneering communication.--For purposes of 
        this subsection--
                  (A) In general.--(i) The term 
                ``electioneering communication'' means any 
                broadcast, cable, or satellite communication 
                which--
                          (I) refers to a clearly identified 
                        candidate for Federal office;
                          (II) is made within--
                                  (aa) 60 days before a 
                                general, special, or runoff 
                                election for the office sought 
                                by the candidate; or
                                  (bb) 30 days before a primary 
                                or preference election, or a 
                                convention or caucus of a 
                                political party that has 
                                authority to nominate a 
                                candidate, for the office 
                                sought by the candidate; and
                          (III) in the case of a communication 
                        which refers to a candidate for an 
                        office other than President or Vice 
                        President, is targeted to the relevant 
                        electorate.
                  (ii) If clause (i) is held to be 
                constitutionally insufficient by final judicial 
                decision to support the regulation provided 
                herein, then the term ``electioneering 
                communication'' means any broadcast, cable, or 
                satellite communication which promotes or 
                supports a candidate for that office, or 
                attacks or opposes a candidate for that office 
                (regardless of whether the communication 
                expressly advocates a vote for or against a 
                candidate) and which also is suggestive of no 
                plausible meaning other than an exhortation to 
                vote for or against a specific candidate. 
                Nothing in this subparagraph shall be construed 
                to affect the interpretation or application of 
                section 100.22(b) of title 11, Code of Federal 
                Regulations.
                  (B) Exceptions.--The term ``electioneering 
                communication'' does not include--
                          (i) a communication appearing in a 
                        news story, commentary, or editorial 
                        distributed through the facilities of 
                        any broadcasting station, unless such 
                        facilities are owned or controlled by 
                        any political party, political 
                        committee, or candidate;
                          (ii) a communication which 
                        constitutes an expenditure or an 
                        independent expenditure under this Act;
                          (iii) a communication which 
                        constitutes a candidate debate or forum 
                        conducted pursuant to regulations 
                        adopted by the Commission, or which 
                        solely promotes such a debate or forum 
                        and is made by or on behalf of the 
                        person sponsoring the debate or forum; 
                        or
                          (iv) any other communication exempted 
                        under such regulations as the 
                        Commission may promulgate (consistent 
                        with the requirements of this 
                        paragraph) to ensure the appropriate 
                        implementation of this paragraph, 
                        except that under any such regulation a 
                        communication may not be exempted if it 
                        meets the requirements of this 
                        paragraph and is described in section 
                        301(20)(A)(iii).
                  (C) Targeting to relevant electorate.--For 
                purposes of this paragraph, a communication 
                which refers to a clearly identified candidate 
                for Federal office is ``targeted to the 
                relevant electorate'' if the communication can 
                be received by 50,000 or more persons--
                          (i) in the district the candidate 
                        seeks to represent, in the case of a 
                        candidate for Representative in, or 
                        Delegate or Resident Commissioner to, 
                        the Congress; or
                          (ii) in the State the candidate seeks 
                        to represent, in the case of a 
                        candidate for Senator.
          (4) Disclosure date.--For purposes of this 
        subsection, the term ``disclosure date'' means--
                  (A) the first date during any calendar year 
                by which a person has made disbursements for 
                the direct costs of producing or airing 
                electioneering communications aggregating in 
                excess of $10,000; and
                  (B) any other date during such calendar year 
                by which a person has made disbursements for 
                the direct costs of producing or airing 
                electioneering communications aggregating in 
                excess of $10,000 since the most recent 
                disclosure date for such calendar year.
          (5) Contracts to disburse.--For purposes of this 
        subsection, a person shall be treated as having made a 
        disbursement if the person has executed a contract to 
        make the disbursement.
          (6) Coordination with other requirements.--Any 
        requirement to report under this subsection shall be in 
        addition to any other reporting requirement under this 
        Act.
          (7) Coordination with internal revenue code.--Nothing 
        in this subsection may be construed to establish, 
        modify, or otherwise affect the definition of political 
        activities or electioneering activities (including the 
        definition of participating in, intervening in, or 
        influencing or attempting to influence a political 
        campaign on behalf of or in opposition to any candidate 
        for public office) for purposes of the Internal Revenue 
        Code of 1986.
  (g) Time for Reporting Certain Expenditures.--
          (1) Expenditures aggregating $1,000.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $1,000 or more after the 20th day, but more 
                than 24 hours, before the date of an election 
                shall file a report describing the expenditures 
                within 24 hours.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall file an additional report within 24 hours 
                after each time the person makes or contracts 
                to make independent expenditures aggregating an 
                additional $1,000 with respect to the same 
                election as that to which the initial report 
                relates.
          (2) Expenditures aggregating $10,000.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $10,000 or more at any time up to and including 
                the 20th day before the date of an election 
                shall file a report describing the expenditures 
                within 48 hours.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall file an additional report within 48 hours 
                after each time the person makes or contracts 
                to make independent expenditures aggregating an 
                additional $10,000 with respect to the same 
                election as that to which the initial report 
                relates.
          (3) Place of filing; contents.--A report under this 
        subsection--
                  (A) shall be filed with the Commission; and
                  (B) shall contain the information required by 
                subsection (b)(6)(B)(iii), including the name 
                of each candidate whom an expenditure is 
                intended to support or oppose.
          (4) Time of filing for expenditures aggregating 
        $1,000.--Notwithstanding subsection (a)(5), the time at 
        which the statement under paragraph (1) is received by 
        the Commission or any other recipient to whom the 
        notification is required to be sent shall be considered 
        the time of filing of the statement with the recipient.
  (h) Reports From Inaugural Committees.--The Federal Election 
Commission shall make any report filed by an Inaugural 
Committee under section 510 of title 36, United States Code, 
accessible to the public at the offices of the Commission and 
on the Internet not later than 48 hours after the report is 
received by the Commission.
  (i) Disclosure of Bundled Contributions.--
          (1) Required disclosure.--Each committee described in 
        paragraph (6) shall include in the first report 
        required to be filed under this section after each 
        covered period (as defined in paragraph (2)) a separate 
        schedule setting forth the name, address, and employer 
        of each person reasonably known by the committee to be 
        a person described in paragraph (7) who provided 2 or 
        more bundled contributions to the committee in an 
        aggregate amount greater than the applicable threshold 
        (as defined in paragraph (3)) during the covered 
        period, and the aggregate amount of the bundled 
        contributions provided by each such person during the 
        covered period.
          (2) Covered period.--In this subsection, a ``covered 
        period'' means, with respect to a committee--
                  (A) the period beginning January 1 and ending 
                June 30 of each year;
                  (B) the period beginning July 1 and ending 
                December 31 of each year; and
                  (C) any reporting period applicable to the 
                committee under this section during which any 
                person described in paragraph (7) provided 2 or 
                more bundled contributions to the committee in 
                an aggregate amount greater than the applicable 
                threshold.
          (3) Applicable threshold.--
                  (A) In general.--In this subsection, the 
                ``applicable threshold'' is $15,000, except 
                that in determining whether the amount of 
                bundled contributions provided to a committee 
                by a person described in paragraph (7) exceeds 
                the applicable threshold, there shall be 
                excluded any contribution made to the committee 
                by the person or the person's spouse.
                  (B) Indexing.--In any calendar year after 
                2007, section 315(c)(1)(B) shall apply to the 
                amount applicable under subparagraph (A) 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 amount applicable under 
                subparagraph (A), the ``base period'' shall be 
                2006.
          (4) Public availability.--The Commission shall ensure 
        that, to the greatest extent practicable--
                  (A) information required to be disclosed 
                under this subsection is publicly available 
                through the Commission website in a manner that 
                is searchable, sortable, and downloadable; and
                  (B) the Commission's public database 
                containing information disclosed under this 
                subsection is linked electronically to the 
                websites maintained by the Secretary of the 
                Senate and the Clerk of the House of 
                Representatives containing information filed 
                pursuant to the Lobbying Disclosure Act of 
                1995.
          (5) Regulations.--Not later than 6 months after the 
        date of enactment of the Honest Leadership and Open 
        Government Act of 2007, the Commission shall promulgate 
        regulations to implement this subsection. Under such 
        regulations, the Commission--
                  (A) may, notwithstanding paragraphs (1) and 
                (2), provide for quarterly filing of the 
                schedule described in paragraph (1) by a 
                committee which files reports under this 
                section more frequently than on a quarterly 
                basis;
                  (B) shall provide guidance to committees with 
                respect to whether a person is reasonably known 
                by a committee to be a person described in 
                paragraph (7), which shall include a 
                requirement that committees consult the 
                websites maintained by the Secretary of the 
                Senate and the Clerk of the House of 
                Representatives containing information filed 
                pursuant to the Lobbying Disclosure Act of 
                1995;
                  (C) may not exempt the activity of a person 
                described in paragraph (7) from disclosure 
                under this subsection on the grounds that the 
                person is authorized to engage in fundraising 
                for the committee or any other similar grounds; 
                and
                  (D) shall provide for the broadest possible 
                disclosure of activities described in this 
                subsection by persons described in paragraph 
                (7) that is consistent with this subsection.
          (6) Committees described.--A committee described in 
        this paragraph is an authorized committee of a 
        candidate, a leadership PAC, or a political party 
        committee.
          (7) Persons described.--A person described in this 
        paragraph is any person, who, at the time a 
        contribution is forwarded to a committee as described 
        in paragraph (8)(A)(i) or is received by a committee as 
        described in paragraph (8)(A)(ii), is--
                  (A) a current registrant under section 4(a) 
                of the Lobbying Disclosure Act of 1995;
                  (B) an individual who is listed on a current 
                registration filed under section 4(b)(6) of 
                such Act or a current report under section 
                5(b)(2)(C) of such Act; or
                  (C) a political committee established or 
                controlled by such a registrant or individual.
          (8) Definitions.--For purposes of this subsection, 
        the following definitions apply:
                  (A) Bundled contribution.--The term ``bundled 
                contribution'' means, with respect to a 
                committee described in paragraph (6) and a 
                person described in paragraph (7), a 
                contribution (subject to the applicable 
                threshold) which is--
                          (i) forwarded from the contributor or 
                        contributors to the committee by the 
                        person; or
                          (ii) received by the committee from a 
                        contributor or contributors, but 
                        credited by the committee or candidate 
                        involved (or, in the case of a 
                        leadership PAC, by the individual 
                        referred to in subparagraph (B) 
                        involved) to the person through 
                        records, designations, or other means 
                        of recognizing that a certain amount of 
                        money has been raised by the person.
                  (B) Leadership pac.--The term ``leadership 
                PAC'' means, with respect to a candidate for 
                election to Federal office or an individual 
                holding Federal office, a political committee 
                that is directly or indirectly established, 
                financed, maintained or controlled by the 
                candidate or the individual but which is not an 
                authorized committee of the candidate or 
                individual and which is not affiliated with an 
                authorized committee of the candidate or 
                individual, except that such term does not 
                include a political committee of a political 
                party.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    H.R. 7321 is a meaningful, bipartisan bill to ensure that 
the public receives important information about election-
relevant communications. It would amend the Federal Election 
Campaign Act of 1971 to require electioneering communications 
to be filed electronically with the Federal Election Commission 
(``FEC'').
    As the FEC has informed Congress, ``[c]ompared to data from 
paper reports, data from electronically filed reports is 
received, processed and disseminated more easily and 
efficiently, resulting in better use of resources. Reports that 
are filed electronically are normally available to the public, 
and may be downloaded, within minutes.''\1\ In contrast, paper 
filings take days to be available--they provide critical 
information for the public. This bill would aid transparency by 
including electioneering communications among those accessible 
to the public online.
---------------------------------------------------------------------------
    \1\Legislative Recommendations of the Federal Election Commission 
2023, Fed. Election Comm'n (Dec. 14, 2023), https://www.fec.gov/
resources/cms-content/documents/legrec2023.pdf.
---------------------------------------------------------------------------
    The United States Supreme Court has long recognized that 
disclosure requirements are vitally important to provide the 
electorate with information ``as to where political campaign 
money comes from and how it is spent.''\2\ American voters are 
best equipped to choose our leaders when they have the most 
fulsome, most up-to-date information at hand. H.R. 7321 will 
aid every American voter as they exercise their fundamental 
rights.
---------------------------------------------------------------------------
    \2\Buckley v. Valeo, 424 U.S. 1, 66 (1976).

                                         Joseph D. Morelle,
                                                    Ranking Member.