Sec. 3. Disclaimer requirements for communications consisting of campaign-related disbursements
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Section 318(a) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30120(a) ) is amended by striking for the purpose of financing communications expressly advocating the election or defeat of a clearly identified candidate and inserting for a campaign-related disbursement, as defined in subsection (f), consisting of a public communication . Section 318 of such Act ( 52 U.S.C. 30120 ), as amended by section 2(c)(1), is further amended by adding at the end the following new subsection:
In this section, the term campaign-related disbursement means a disbursement by a covered organization for any of the following (regardless of the intent of the person making the disbursement): An independent expenditure which expressly advocates the election or defeat of a clearly identified candidate for election for Federal office, or is the functional equivalent of express advocacy because, when taken as a whole, it can be interpreted by a reasonable person only as advocating the election or defeat of a candidate for election for Federal office.
Any public communication which refers to a clearly identified candidate for election for Federal office and which promotes or supports the election of a candidate for that office, or attacks or opposes the election of a candidate for that office, without regard to whether the communication expressly advocates a vote for or against a candidate for that office. An electioneering communication, as defined in section 304(f)(3). A covered transfer. 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 subparagraph (F)). 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. In this subsection, the term covered transfer means any transfer or payment of funds by a covered organization to another person if the covered organization— designates, requests, or suggests that the amounts be used for— campaign-related disbursements (other than covered transfers); or making a transfer to another person for the purpose of making or paying for such campaign-related disbursements; made such transfer or payment in response to a solicitation or other request for a donation or payment for— the making of or paying for campaign-related disbursements (other than covered transfers); or making a transfer to another person for the purpose of making or paying for such campaign-related disbursements; engaged in discussions with the recipient of the transfer or payment regarding— the making of or paying for campaign-related disbursements (other than covered transfers); or donating or transferring any amount of such transfer or payment to another person for the purpose of making or paying for such campaign-related disbursements; made campaign-related disbursements (other than a covered transfer) in an aggregate amount of $50,000 or more during the 2-year period ending on the date of the transfer or payment, or knew or had reason to know that the person receiving the transfer or payment made such disbursements in such an aggregate amount during that 2-year period; or knew or had reason to know that the person receiving the transfer or payment would make campaign-related disbursements in an aggregate amount of $50,000 or more during the 2-year period beginning on the date of the transfer or payment.
The term covered transfer does not include any of the following: A disbursement made by a covered organization in a commercial transaction in the ordinary course of any trade or business conducted by the covered organization or in the form of investments made by the covered organization. A disbursement made by a covered organization if— the covered organization prohibited, in writing, the use of such disbursement for campaign-related disbursements; and the recipient of the disbursement agreed to follow the prohibition and deposited the disbursement in an account which is segregated from any account used to make campaign-related disbursements.
A transfer of an amount by one covered organization to another covered organization which is treated as a transfer between affiliates under clause
(iii)shall be considered a covered transfer by the covered organization which transfers the amount only if the aggregate amount transferred during the year by such covered organization to that same covered organization is equal to or greater than $50,000. In determining the amount of a transfer between affiliates for purposes of clause (i), to the extent that the transfer consists of funds attributable to dues, fees, or assessments which are paid by individuals on a regular, periodic basis in accordance with a per-individual calculation which is made on a regular basis, the transfer shall be attributed to the individuals paying the dues, fees, or assessments and shall not be attributed to the covered organization. A transfer of amounts from one covered organization to another covered organization shall be treated as a transfer between affiliates if— one of the organizations is an affiliate of the other organization; or each of the organizations is an affiliate of the same organization, except that the transfer shall not be treated as a transfer between affiliates if one of the organizations is established for the purpose of making campaign-related disbursements. For purposes of clause (iii), a covered organization is an affiliate of another covered organization if— the governing instrument of the organization requires it to be bound by decisions of the other organization; the governing board of the organization includes persons who are specifically designated representatives of the other organization or are members of the governing board, officers, or paid executive staff members of the other organization, or whose service on the governing board is contingent upon the approval of the other organization; or the organization is chartered by the other organization. 501(c)(3) organizations This subparagraph shall apply with respect to an amount transferred by a covered organization to an organization described in paragraph
(3)of section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code in the same manner as this subparagraph applies to an amount transferred by a covered organization to another covered organization. .
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Sec. 3
Disclaimer requirements for communications consisting of campaign-related disbursements
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