Sec. 101. Reporting of independent Federal election-related activity expenditures and covered contributions
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Section 7701(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraphs: The term independent Federal election-related activity expenditure means— any expenditure that— considering the facts and circumstances, a reasonable person would conclude is made solely or substantially for the purpose of influencing or attempting to influence the nomination or election of any individual to any Federal office (including an expenditure for a public communication that promotes, attacks, supports, or opposes a candidate); and that is not made in concert or cooperation with, or at the suggestion of a candidate, the candidate's authorized committee, or a political party committee; and any payment made to another person if the transferor knows or has reason to know that such payment will be used to fund an expenditure described in clause (i).
For authority with respect joint regulations and advisory opinions, see section 301 of the Follow the Money Act of 2013 . For purposes of this paragraph, the terms candidate , Federal office , election , and public communication have the meaning given such terms under section 301 of the Federal Election Campaign Act of 1971. The term covered contribution means anything of value received by an independent political actor (as defined in section 351(1) of the Federal Election Campaign Act of 1971) which can be used by such person to make an independent Federal election-related activity expenditure.
A receipt from another person shall not be taken into account under subparagraph (A)— if such receipt occurred in a commercial transaction in the ordinary course of business; to the extent of the fair market value of any goods or services provided by the organization to such person in consideration for such amount; or if such receipt was derived from investments made by the independent political actor (as so defined). For authority with respect joint regulations and advisory opinions, see section 301 of the Follow the Money Act of 2013 . .
Title III of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 431 ) is amended— by inserting before section 301 the following: , and by adding at the end the following new subtitle: In this subtitle: The term independent political actor means, with respect to any Federal election cycle, any person that— makes independent Federal election-related activity expenditures of $10,000 or more during such Federal election cycle; receives contributions which— are intended by the transferor and understood by the recipient to be substantially used for making Independent Federal election-related activity expenditures, and aggregate $10,000 or more during such Federal election cycle; or makes qualified solicitations to 500 or more persons during such Federal election cycle.
For purposes of clause (iii), the term qualified solicitation means any solicitation which discloses to contributors that a portion of funds received in response to the solicitation will be utilized for independent Federal election-related activity expenditures. The term independent political actor shall not include any political committee that exclusively makes contributions (whether direct, in-kind, or via coordinated communications) to candidates. The term Federal election cycle means the period beginning on January 1 of any odd numbered year and ending on December 31 of the following year.
The term independent Federal election-related activity expenditure has the meaning given such term under section 7701(51) of the Internal Revenue Code of 1986. The term covered contribution has the meaning given such term under section 7701(52) of the Internal Revenue Code of 1986. Each independent political actor shall designate— a treasurer; and a responsible individual. As provided by the Commission in regulations— the treasurer of an independent political actor shall have similar duties and responsibilities of the treasurer of a political committee under subsections (b), (c), and
(d)of section 302; and rules similar to the rules of section 302(i) shall apply. The treasurer and responsible individual shall be jointly and severally liable with the independent political actor for any acts or omissions to which this Act applies. Each independent political actor may elect to have a segregated safe harbor account with respect to each Federal election cycle consisting of so much of the covered contributions (including dues) received from a person during the Federal election cycle as does not exceed the lesser of— $1,000; or the amount of covered contributions (including dues) received from such person. Each independent political actor may elect to have a segregated supplemental contribution account consisting of the dues and other covered contributions that— are received in that account; and are to be used only for the purpose of making independent Federal election-related activity expenditures. Every person who is an independent political actor with respect to a Federal election cycle shall file a registration statement with the Commission not later than 10 days after such person becomes an independent political actor within the meaning of section 351(1). The registration statement shall include the following: The name and address of the independent political actor, the treasurer of the independent political actor, the responsible individual with respect to the independent political actor, and such other information as the Commission may require. An election with respect to which of the following methods the independent political actor elects to use for reporting covered contributions received during the federal election cycle: A method under which the independent political actor elects to report all covered contributions received during the Federal election cycle. A method under which the independent political actor elects to make independent Federal election-related activity expenditures only from amounts allocated to the safe harbor account of the independent political actor. A method under which the independent political actor— elects to make independent Federal election-related expenditures only from amounts allocated to the supplemental contributions account of such independent political actor; and reports all covered contributions made to the supplemental contribution account of such independent political actor. A method under which the independent political actor— elects make independent Federal election-related expenditures only from amounts allocated to the safe harbor and supplemental contributions account of such independent political actor; and reports all covered contributions made to the supplemental contribution account of such independent political actor. A method under which the independent political actor elects to make independent Federal election-related expenditures and reports covered contributions under an alternative allocation plan approved by the Commission. An election under this subsection shall apply to a Federal election cycle and shall be irrevocable for such Federal election cycle. The Commission shall designate a registration number for each independent political actor registered under this subsection. Any change in information previously submitted in a registration statement of an independent political actor shall be reported not later than 10 days after the date of the change. Every treasurer of an independent political actor shall file a statement with the Commission containing the information described in subsection (b). The statement required to be made under paragraph
(1)shall be filed with the Commission at the times such statement would be required to be filed if such person were an authorized political committee of a candidate. On and after the date the Commission establishes the instant disclosure system described in section 103(a) of the Follow the Money Act of 2013 , each treasurer of an independent political actor which accepts a covered contribution shall file, not later than the time provided under clause (ii), a statement with the Commission containing the information described in clause (iii). The statement required to be made under clause
(i)shall be filed with the Commission— in the case of a covered contribution made by check, before the date on which such check has been cashed or deposited into an account of the independent political actor; in the case of a covered contribution made by credit card or debit card, within 48 hours of the receipt of such contribution; and in any other case, within 10 days of the receipt of such contribution. Each statement required to be filed under this clause shall contain the information required under subsection (b)(2). Each statement required to be filed under this subsection shall contain the following: With respect to each independent Federal election-related activity expenditure made by the person— The date and amount of such expenditure. The name and address of the person to whom such expenditure is made. The purpose of the expenditure. Whether such expenditure is in support of, or in opposition to, a candidate, as well as the name and office sought by such candidate. Whether the source of any Federal-related activity expenditures was from— the safe harbor account of the independent political actor, a supplemental contributions account of the independent political actor, or another source. With respect to each covered contribution, subject to subparagraphs (A), (B), and (C), the date and amount of each covered contribution received by an independent political actor. In the case of any independent political actor who has made an election under section 352(b)(2)(A), the identification of each person who made covered contributions to such independent political actor during the Federal election cycle. In the case of an independent political actor who has made an election under section 353(b)(2)(B), the identification of each person who made a covered contribution deposited into any such account during the Federal election cycle. In the case of an independent political actor who enters into an alternative allocation plan with the Commission under section 353(b)(2)(C), the information required to be reported under such alternative allocation plan. In the case of any covered contribution received by an independent political actor which is a independent Federal election-related activity expenditure of another independent political actor (hereinafter in this subparagraph referred to as the transferor ) which is described in clause
(ii)of section 7701(a)(51)(A) of the Internal Revenue Code of 1986, the independent political actor receiving such covered contribution shall attribute the amount of the covered contribution to the transferee and to each person identified in a report of the transferee under this paragraph before the date of such contribution in the proportion that the amount of covered contributions so identified by the transferee in such reports bears to the amount of the covered contribution received by the independent political actor. The Commission may prescribe regulations to provide for an exception to the public disclosure of the identity of a person who makes a covered contribution under this section if— the aggregate such contributions made by such person was $5,000 or less; and such person has demonstrated that disclosure of the person’s identity will place the person at a particularized and specific risk of substantial injury to his or her person or business as a consequence of the disclosure. For purposes of section 309— a violation of section 354(a) shall be treated as a violation of section 304(a) for purposes of subsection (4)(C) thereof, and the amount required to be paid under any conciliation agreement or civil penalty imposed for a violation of section 304 or section 354 shall be reduced by the amount of any tax imposed and paid under section 4969 of the Internal Revenue Code of 1986. . Section 301(4) of the Federal Election Campaign Act of 1971 ( 2 U.S.C. 434(4) ) is amended by adding at the end the following flush sentence: Such term shall not include any person who is an independent political actor, as defined in section 351(1). . Section 313(b) of such Act ( 2 U.S.C. 439a(b) ) is amended by adding at the end the following new paragraph: A contribution to a political committee may not be— transferred to a safe harbor account or a supplemental contribution account of an independent political actor (as defined by section 351); or otherwise used for an independent Federal election-related activity expenditure (as defined in section 351). . Section 304(c) of such Act ( 2 U.S.C. 434(c) ) is amended by adding at the end the following new paragraph: This subsection shall not apply to expenditures made after December 31, 2014. . Section 304((g) of such Act ( 2 U.S.C. 434(g) ) is amended by adding at the end the following new paragraph: This subsection shall not apply to expenditures made after December 31, 2014. . Section 304(f) of such Act ( 2 U.S.C. 434(f) ) is amended by adding at the end the following new paragraph: Paragraph
(1)shall not apply to expenditures made after December 31, 2014. . The amendments made by this section shall apply to contributions and expenditures made after December 31, 2014.
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Sec. 101
Reporting of independent Federal election-related activity expenditures and covered contributions
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