Sec. 111. Reporting of campaign-related disbursements
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Section 324 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30126 ) is amended to read as follows: Any covered organization that makes campaign-related disbursements aggregating more than $10,000 in an election reporting cycle shall, not later than 24 hours after each disclosure date, file a statement with the Commission made under penalty of perjury that contains the information described in paragraph (2)— in the case of the first statement filed under this subsection, for the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the first such disclosure date) and ending on the first such disclosure date; and in the case of any subsequent statement filed under this subsection, for the period beginning on the previous disclosure date and ending on such disclosure date.
The information described in this paragraph is as follows: The name of the covered organization and the principal place of business of such organization and, in the case of a covered organization that is a corporation (other than a business concern that is an issuer of a class of securities registered under section 12 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78l ) or that is required to file reports under section 15(d) of that Act ( 15 U.S.C. 78o(d) )) or an entity described in subsection (e)(2), a list of the beneficial owners (as defined in paragraph (4)(A)) of the entity that— identifies each beneficial owner by name and current residential or business street address; and if any beneficial owner exercises control over the entity through another legal entity, such as a corporation, partnership, limited liability company, or trust, identifies each such other legal entity and each such beneficial owner who will use that other entity to exercise control over the entity.
The amount of each campaign-related disbursement made by such organization during the period covered by the statement of more than $1,000, and the name and address of the person to whom the disbursement was made. In the case of a campaign-related disbursement that is not a covered transfer, the election to which the campaign-related disbursement pertains and if the disbursement is made for a public communication, the name of any candidate identified in such communication and whether such communication is in support of or in opposition to a candidate.
A certification by the chief executive officer or person who is the head of the covered organization that the campaign-related disbursement is not made in cooperation, consultation, or concert with or at the request or suggestion of a candidate, authorized committee, or agent of a candidate, political party, or agent of a political party. If the covered organization makes campaign-related disbursements using exclusively funds in a segregated bank account consisting of funds that were paid directly to such account by persons other than the covered organization that controls the account, for each such payment to the account— the name and address of each person who made such payment during the period covered by the statement; the date and amount of such payment; and the aggregate amount of all such payments made by the person during the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the disclosure date) and ending on the disclosure date, but only if such payment was made by a person who made payments to the account in an aggregate amount of $10,000 or more during the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the disclosure date) and ending on the disclosure date.
In any calendar year after 2020, section 315(c)(1)(B) shall apply to the amount described in clause
(i)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 amounts described in subsection (b), the base period shall be 2020. If the covered organization makes campaign-related disbursements using funds other than funds in a segregated bank account described in subparagraph (E), for each payment to the covered organization— the name and address of each person who made such payment during the period covered by the statement; the date and amount of such payment; and the aggregate amount of all such payments made by the person during the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the disclosure date) and ending on the disclosure date, but only if such payment was made by a person who made payments to the covered organization in an aggregate amount of $10,000 or more during the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the disclosure date) and ending on the disclosure date. In any calendar year after 2020, section 315(c)(1)(B) shall apply to the amount described in clause
(i)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 amounts described in subsection (b), the base period shall be 2020. Such other information as required in rules established by the Commission to promote the purposes of this section. The requirement to include in a statement filed under paragraph
(1)the information described in paragraph
(2)shall not apply to amounts received by the covered organization in commercial transactions in the ordinary course of any trade or business conducted by the covered organization or in the form of investments (other than investments by the principal shareholder in a limited liability corporation) in the covered organization. For purposes of this subparagraph, amounts received by a covered organization as remittances from an employee to the employee’s collective bargaining representative shall be treated as amounts received in commercial transactions in the ordinary course of the business conducted by the covered organization. The requirement to include in a statement submitted under paragraph
(1)the information described in subparagraph
(F)of paragraph
(2)shall not apply if— the person described in such subparagraph prohibited, in writing, the use of the payment made by such person for campaign-related disbursements; and the covered organization agreed to follow the prohibition and deposited the payment in an account which is segregated from any account used to make campaign-related disbursements. The requirement to include any information relating to the name or address of any person (other than a candidate) in a statement submitted under paragraph
(1)shall not apply if the inclusion of the information would subject the person to serious threats, harassment, or reprisals. For purposes of this section: Except as provided in clause (ii), the term beneficial owner means, with respect to any entity, a natural person who, directly or indirectly— exercises substantial control over an entity through ownership, voting rights, agreement, or otherwise; or has a substantial interest in or receives substantial economic benefits from the assets of an entity. The term beneficial owner shall not include— a minor child; a person acting as a nominee, intermediary, custodian, or agent on behalf of another person; a person acting solely as an employee of an entity and whose control over or economic benefits from the entity derives solely from the employment status of the person; a person whose only interest in an entity is through a right of inheritance, unless the person also meets the requirements of clause (i); or a creditor of an entity, unless the creditor also meets the requirements of clause (i). The exceptions under clause
(ii)shall not apply if used for the purpose of evading, circumventing, or abusing the provisions of clause
(i)or paragraph (2)(A). The term disclosure date means— the first date during any election reporting cycle by which a person has made campaign-related disbursements aggregating more than $10,000; and any other date during such election reporting cycle by which a person has made campaign-related disbursements aggregating more than $10,000 since the most recent disclosure date for such election reporting cycle. The term election reporting cycle means the 2-year period beginning on the date of the most recent general election for Federal office. The term payment includes any contribution, donation, transfer, payment of dues, or other payment. Information included in a statement filed under this section may be excluded from statements and reports filed under section 304. A segregated bank account referred to in subsection (a)(2)(E) may be treated as a separate segregated fund for purposes of section 527(f)(3) of the Internal Revenue Code of 1986. Statements required to be filed under subsection
(a)shall be subject to the requirements of section 304(d) to the same extent and in the same manner as if such reports had been required under subsection
(c)or
(g)of section 304. In this section, the term campaign-related disbursement means a disbursement by a covered organization for any of the following: 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. A disbursement for an item described in subparagraph (A), (B), (C), or
(D)of paragraph
(1)shall be treated as a campaign-related disbursement regardless of the intent of the person making the disbursement. In this section, 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. In this section, 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 subparagraph
(C)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 subparagraph (A), 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 subparagraph (C), 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 paragraph 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 paragraph applies to an amount transferred by a covered organization to another covered organization. Nothing in this section shall be construed to waive or otherwise affect any other requirement of this Act which relates to the reporting of campaign-related disbursements. . Section 304(f)(6) of such Act ( 52 U.S.C. 30104 ) is amended by striking Any requirement and inserting Except as provided in section 324(b), any requirement . The Director of the Financial Crimes Enforcement Network of the Department of the Treasury shall provide the Federal Election Commission with such information as necessary to assist in administering and enforcing section 324 of the Federal Election Campaign Act of 1971, as added by this section. Not later than 6 months after the date of the enactment of this Act, the Chairman of the Federal Election Commission, in consultation with the Director of the Financial Crimes Enforcement Network of the Department of the Treasury, shall submit to Congress a report with recommendations for providing further legislative authority to assist in the administration and enforcement of such section 324.
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