Sec. 102. Prohibiting foreign-affiliated section 501(c) organizations from making certain election-related disbursements
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501(c) organizations from making certain election-related disbursements 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: 501(c) organizations It is unlawful for a foreign-affiliated section 501(c) organization to make an election-related disbursement described in subsection (b). An election-related disbursement described in this subsection is any of the following: A contribution to a super PAC.
An independent expenditure. The disbursement of funds for the dissemination of an electioneering communication. A covered transfer. 501(c) organization In this section, a foreign-affiliated section 501(c) organization is a section 501(c) organization with respect to which— the amount of contributions provided to the organization by foreign nationals described in subparagraph
(C)of section 319(b)(1) was equal to or greater than 5 percent of the gross receipts of the organization, as determined on the basis of the most recent taxable year for which information on the gross receipts of the organization is available or, in the case of an organization which is required to file quarterly reports with the Securities and Exchange Commission under section 13 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m ), the most recent such report, or the amount of contributions provided to the organization by all foreign nationals described in section 319(b) was equal to or greater than 20 percent of the gross receipts of the organization, as determined on the basis of the most recent taxable year for which information on the gross receipts of the organization is available or, in the case of an organization which is required to file quarterly reports with the Securities and Exchange Commission under section 13 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m ), the most recent such report. In this section, the term covered transfer means any transfer or payment of funds by a foreign-affiliated section 501(c) organization to another person if the foreign-affiliated section 501(c) organization— designates, requests, or suggests that the amounts be used for— election-related disbursements (other than covered transfers); or making a transfer to another person for the purpose of making or paying for such election-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 election-related disbursements (other than covered transfers); or making a transfer to another person for the purpose of making or paying for such election-related disbursements; engaged in discussions with the recipient of the transfer or payment regarding— the making of or paying for election-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 election-related disbursements; or knew or had reason to know that the person receiving the transfer or payment would make election-related disbursements in an aggregate amount of $123,900 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 foreign-affiliated section 501(c) organization in a commercial transaction in the ordinary course of any trade or business conducted by the organization or in the form of investments made by the organization. A disbursement made by a foreign-affiliated section 501(c) organization if— the organization prohibited, in writing, the use of such disbursement for election-related disbursements; and the recipient of the disbursement agreed to follow the prohibition and deposited the disbursement in an account which is segregated from an election-related disbursement segregated fund and any other account used to make election-related disbursements. A transfer of an amount by one foreign-affiliated section 501(c) organization to another foreign-affiliated section 501(c) organization which is treated as a transfer between affiliates under subparagraph
(C)shall be considered a covered transfer by the organization which transfers the amount only if the aggregate amount transferred during the year by such organization to that same organization is equal to or greater than $123,900. 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 foreign-affiliated section 501(c) organization. A transfer of amounts from one foreign-affiliated section 501(c) organization to another foreign-affiliated section 501(c) 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 election-related disbursements. For purposes of subparagraph (C), a foreign-affiliated section 501(c) organization is an affiliate of another foreign-affiliated section 501(c) 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. In this section— the term electioneering communication has the meaning given such term in section 304(f)(3); the term section 501(c) organization means an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; and term super PAC means a political committee which accepts donations or contributions that do not comply with the limitations and prohibitions of this Act (or has an account which is established for the purpose of accepting such donations or contributions) and which makes only independent expenditures (or has an account which is established for the purpose of making only independent expenditures). .
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Sec. 102
Prohibiting foreign-affiliated section 501(c) organizations from making certain election-related disbursements
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