Sec. 3. Due diligence requirements
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Title III of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 et seq.) is amended by adding at the end the following new section: Each covered organization that makes a report under section 304 with respect to an independent expenditure or a disbursement for the direct costs of producing an electioneering communication shall include with such report a certification described in subsection (b). 501(c) organizations Each covered 501(c) organization (within the meaning of section 324) that makes a report under section 324 with respect to a campaign-related disbursement shall include with such report a certification described in subsection (b).
A certification is described in this subsection if the certification is made by the principal executive officer or officers and the principal financial officer or officers of such covered organization, or persons performing similar functions, stating that— the signing officer has reviewed the report; the organization has met the due diligence requirements under paragraph (2); and based on the officer’s knowledge, none of the funds used to make any expenditure or disbursement described in the report or statement were provided by a foreign national (as defined in section 319).
The due diligence requirement under this paragraph shall be met if the organization affirmatively verifies that each contribution or donation received by the organization during the 2-year period ending on the date of the expenditure or disbursement described in subsection
(a)was not a contribution or donation that was made, directly or indirectly, by a foreign national (within the meaning of section 319). In the case of an organization with a separate segregated account from which the expenditure or disbursement described in subsection
(a)was made, subparagraph
(A)shall be applied only with respect to contributions and donations made to such account. In this subsection, the term covered organization means any of the following: A corporation (other than an organization described in section 501(c)(3) of the Internal Revenue Code of 1986). A limited liability corporation that is not otherwise treated as a corporation for purposes of this Act (other than an organization described in section 501(c)(3) of the Internal Revenue Code of 1986). An organization described in section 501(c) of such Code and exempt from taxation under section 501(a) of such Code (other than an organization described in section 501(c)(3) of such Code). A labor organization (as defined in section 316(b)). Any political organization under section 527 of the Internal Revenue Code of 1986, other than a political committee under this Act (except as provided in paragraph (6)). A political committee with an account that accepts donations or contributions that do not comply with the contribution limits or source prohibitions under this Act, but only with respect to such accounts. . The amendment made by subsection
(a)shall apply to reports required to be filed after the date of the enactment of this Act. 501(c) organizations Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: No organization described in subsection
(c)(other than an organization described in paragraph
(3)thereof) shall be exempt from tax under subsection
(a)unless such organization reports any disqualified foreign contribution, not later than 15 days after receiving such contribution, to the entities listed in paragraph (3). For purposes of this subsection, the term disqualified foreign contribution means any donation or contribution received from foreign national (within the meaning of section 319 of the Federal Election Campaign Act of 1971) and which is made or received for a purpose described in section 319(a) of such Act. The entities described in this paragraph are the following: The Internal Revenue Service. The Federal Election Commission. The Financial Crimes Enforcement Network of the Department of Treasury. The Department of Justice. . The amendment made by this paragraph shall apply to contributions made after the date of the enactment of this Act. Each corporation and each limited liability corporation that is not otherwise treated as a corporation under the Federal Election Campaign Act of 1971 shall report any disqualified foreign contribution (as defined in section 501(s) of the Internal Revenue Code of 1986), not later than 15 days after receiving such contribution, to the following entities: The Federal Election Commission. The Financial Crimes Enforcement Network of the Department of Treasury. The Department of Justice. Subparagraph
(A)shall not apply to any entity that is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986. Any person who fails to make a report under subparagraph
(A)shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $100,000, or imprisoned not more than 1 year, or both, together with the costs of prosecution.
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Sec. 3
Due diligence requirements
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