Amends the Federal Election Campaign Act of 1971 (FECA) to treat as a campaign contribution any payment made by any person (other than a candidate, an authorized committee of a candidate, or a political committee of a political party) for a coordinated expenditure which is not otherwise treated as a contribution.
Repeals the prohibition against contributions by minors.
Sets forth rules governing payments for coordinated expenditures, including special rule for payments by coordinated spenders for covered communications.
Defines "covered communication" as a public communication which: (1) promotes or supports the candidate, or attacks or opposes an opponent of the candidate (regardless of whether the communication expressly advocates the election or defeat of a candidate or contains the functional equivalent of express advocacy); or (2) refers to the candidate or an opponent of the candidate in other ways, but only if the communication is disseminated during the applicable election period.
Prohibits candidates or individuals holding federal office, their agents, and certain related entities from soliciting, receiving, directing, or transferring funds to or on behalf of any political committee which accepts donations or contributions that do not comply with FECA limitations, prohibitions, and reporting requirements, or to or on behalf of any 527 organization which accepts such donations or contributions (other than a committee of a state or local political party or a candidate for election for state or local office).
(A 527 organization, tax-exempt in certain circumstances under Section 527 of the Internal Revenue Code, is created primarily to influence the selection, nomination, election, appointment or defeat of candidates to federal, state or local public office.)
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5641 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5641
To amend the Federal Election Campaign Act of 1971 to clarify the
treatment of coordinated expenditures as contributions to candidates,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2014
Mr. Price of North Carolina (for himself and Mr. Van Hollen) introduced
the following bill; which was referred to the Committee on House
Administration
_______________________________________________________________________
A BILL
To amend the Federal Election Campaign Act of 1971 to clarify the
treatment of coordinated expenditures as contributions to candidates,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CLARIFICATION OF TREATMENT OF COORDINATED EXPENDITURES AS
CONTRIBUTIONS TO CANDIDATES.
(a) Treatment as Contribution to Candidate.--Section 301(8)(A) of
the Federal Election Campaign Act of 1971 (2 U.S.C. 30101(8)(A)) is
amended--
(1) by striking ``or'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) any payment made by any person (other than
a candidate, an authorized committee of a candidate, or
a political committee of a political party) for a
coordinated expenditure (as such term is defined in
section 324) which is not otherwise treated as a
contribution under clause (i) or clause (ii).''.
(b) Definitions.--Section 324 of such Act (2 U.S.C. 30126) is
amended to read as follows:
``SEC. 324. PAYMENTS FOR COORDINATED EXPENDITURES.
``(a) Coordinated Expenditures.--
``(1) In general.--For purposes of section 301(8)(A)(iii),
the term `coordinated expenditure' means--
``(A) any expenditure, including a payment for a
covered communication described in subsection (d),
which is made in cooperation, consultation, or concert
with, or at the request or suggestion of, a candidate,
an authorized committee of a candidate, a political
committee of a political party, or agents of the
candidate or committee, as provided in subsection (b);
or
``(B) any payment for any communication which
republishes, disseminates, or distributes, in whole or
in part, any broadcast or any written, graphic, or
other form of campaign material prepared by the
candidate or committee or by agents of the candidate or
committee.
``(2) Exception for payments for certain communications.--A
payment for a communication (including a covered communication
described in subsection (d) shall not be treated as a
coordinated expenditure under this subsection if--
``(A) the communication appears in a news story,
commentary, or editorial distributed through the
facilities of any broadcasting station, newspaper,
magazine, or other periodical publication, unless such
facilities are owned or controlled by any political
party, political committee, or candidate; or
``(B) the communication constitutes a candidate
debate or forum conducted pursuant to regulations
adopted by the Commission pursuant to section
304(f)(3)(B)(iii), or which solely promotes such a
debate or forum and is made by or on behalf of the
person sponsoring the debate or forum.
``(b) Coordination Described.--
``(1) In general.--For purposes of this section, a payment
is made `in cooperation, consultation, or concert with, or at
the request or suggestion of,' a candidate, an authorized
committee of a candidate, a political committee of a political
party, or agents of the candidate or committee, if the payment
is not made entirely independently of the candidate, committee,
or agents, including a payment which is made pursuant to any
general or particular understanding, or more than incidental
communication with, the candidate, committee, or agents about
the payment.
``(2) No finding of coordination based solely on sharing of
information regarding legislative or policy position.--For
purposes of this section, a payment shall not be considered to
be made by a person in cooperation, consultation, or concert
with, or at the request or suggestion of, a candidate or
committee, solely on the grounds that the person or the
person's agent engaged in discussions with the candidate or
committee, or with agents of the candidate or committee,
regarding that person's position on a legislative or policy
matter (including urging the candidate or committee to adopt
that person's position), so long as there is no discussion
between the person and the candidate or committee, or agents of
the candidate or committee, regarding the candidate's or
committee's campaign advertising, message, strategy, policy,
polling, allocation of resources, fundraising, or campaign
operations.
``(3) No effect on party coordination standard.--Nothing in
this section shall be construed to affect the determination of
coordination between a candidate and a political committee of a
political party for purposes of section 315(d).
``(4) No safe harbor for use of firewall.--A person shall
be determined to have made a payment in cooperation,
consultation, or concert with, or at the request or suggestion
of, a candidate or committee, in accordance with this section
without regard to whether or not the person established and
used a firewall or similar procedures to restrict the sharing
of information between individuals providing services for or on
behalf of the person and the candidate or committee or agents
of the candidate or committee.
``(c) Special Rule for Payments by Coordinated Spenders for Covered
Communications.--
``(1) Payments deemed to be made in cooperation,
consultation, or concert with, candidates.--For purposes of
this section, if the person who makes a payment for a covered
communication is a coordinated spender with respect to the
candidate involved, the person shall be deemed to have made the
payment in cooperation, consultation, or concert with the
candidate.
``(2) Coordinated spender defined.--For purposes of this
subsection, the term `coordinated spender' means, with respect
to a candidate or an authorized committee of a candidate, a
person (other than a political committee of a political party)
for which any of the following applies:
``(A) The person is directly or indirectly formed
or established by or at the request or suggestion of,
or with the encouragement of, the candidate or
committee or agents of the candidate or committee,
including with the express or tacit approval of the
candidate or committee or agents of the candidate or
committee.
``(B) The candidate or committee or agents of the
candidate or committee solicit funds or engage in other
fundraising activity on the person's behalf during the
election cycle involved, including by providing the
person with names of potential donors or other lists to
be used by the person in engaging in fundraising
activity, regardless of whether the person pays fair
market value for the names or lists provided.
``(C) The person is established, directed, or
managed by any person who, during the election cycle
involved or during the 4-year period ending on the
first day of the election cycle involved, has been
employed or retained as a political, media, or
fundraising adviser or consultant for the candidate or
committee or for any other entity directly or
indirectly controlled by the candidate or committee, or
has held a formal position with a title for the
candidate or committee.
``(D) During the election cycle involved, the
person has had more than incidental communications with
the candidate or committee or agents of the candidate
or committee about the candidate's campaign needs or
activities, or about the person's possible or actual
campaign activities with respect to the candidate or
committee.
``(E) The person has retained the professional
services of any person who, during the same election
cycle, has provided or is providing professional
services relating to the campaign to the candidate or
committee. For purposes of this subparagraph, the term
`professional services' includes any services in
support of the candidate's or committee's campaign
activities, including advertising, message, strategy,
policy, polling, allocation of resources, fundraising,
and campaign operations, but does not include
accounting or legal services.
``(F) The person is established, directed, or
managed by a member of the immediate family of the
candidate, or (in the case of a person that is a
political committee) has received a contribution from a
member of the immediate family of the candidate. For
purposes of this subparagraph, the term `immediate
family' has the meaning given such term in section
9004(e) of the Internal Revenue Code of 1986.
``(3) Limitation.--Paragraph (2) shall apply to a person
with respect to a candidate or authorized committee during a
calendar quarter only if 20 percent or more of that person's
total spending for covered communications in the period
beginning on the first day of the election cycle with respect
to the candidate or committee involved and ending on the first
day of that calendar quarter is attributable to--
``(A) communications that promote or support that
candidate, or attack or oppose the opponent of that
candidate, in the case of covered communications
described in subsection (d)(1); and
``(B) communications that refer to that candidate
or an opponent of that candidate, in the case of
covered communications described in subsection (d)(2).
``(d) Covered Communication Defined.--
``(1) In general.--For purposes of this section, the term
`covered communication' means, with respect to a candidate or
an authorized committee of a candidate, a public communication
(as defined in section 301(22)) which--
``(A) promotes or supports the candidate, or
attacks or opposes an opponent of the candidate
(regardless of whether the communication expressly
advocates the election or defeat of a candidate or
contains the functional equivalent of express
advocacy); or
``(B) refers to the candidate or an opponent of the
candidate but is not described in subparagraph (A), but
only if the communication is disseminated during the
applicable election period.
``(2) Applicable election period.--In paragraph (1)(B), the
`applicable election period' with respect to a communication
means--
``(A) in the case of a communication which refers
to a candidate for the office of President or Vice
President, the period which begins on the date that is
120 days before the date of the first primary election,
preference election, or nominating convention for
nomination for the office of President which is held in
any State and ends with the date of the general
election for such office; or
``(B) in the case of a communication which refers
to a candidate for any other office, which begins on
the date that is 90 days before the primary or
preference election, or convention or caucus of a
political party that has authority to nominate a
candidate, for the office sought by the candidate and
ends on the date of the general election for such
office.
``(3) Special rules for communications involving
congressional candidates.--For purposes of this subsection, a
public communication shall not be considered to be a covered
communication with respect to a candidate for election for an
office other than the office of President or Vice President
unless it is publicly disseminated or distributed in the
jurisdiction of the office the candidate is seeking.
``(e) Election Cycle Defined.--In this section, the term `election
cycle' means, with respect to an election for Federal office, the
period beginning on the day after the date of the most recent general
election for that office (or, if the general election resulted in a
runoff election, the date of the runoff election) and ending on the
date of the next general election for that office (or, if the general
election resulted in a runoff election, the date of the runoff
election).''.
(c) Effective Date.--
(1) Repeal of existing regulations on coordination.--
Effective upon the expiration of the 90-day period which begins
on the date of the enactment of this Act--
(A) the regulations on coordinated communications
adopted by the Federal Election Commission which are in
effect on the date of the enactment of this Act (as set
forth in 11 CFR part 109, subpart C, under the heading
``Coordination'') are repealed; and
(B) the Federal Election Commission shall
promulgate new regulations on coordinated
communications which reflect the amendments made by
this Act.
(2) Effective date.--The amendments made by this section
shall apply with respect to payments made on or after the
expiration of the 120-day period which begins on the date of
the enactment of this Act, without regard to whether or not the
Federal Election Commission has promulgated regulations in
accordance with paragraph (1)(B) as of the expiration of such
period.
SEC. 2. CLARIFICATION OF BAN ON FUNDRAISING FOR SUPER PACS BY FEDERAL
CANDIDATES AND OFFICEHOLDERS.
(a) In General.--Section 323(e)(1) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 30125(e)(1)) is amended--
(1) by striking ``or'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(C) solicit, receive, direct, or transfer funds
to or on behalf of any political committee which
accepts donations or contributions that do not comply
with the limitations, prohibitions, and reporting
requirements of this Act (or to or on behalf of any
account of a political committee which is established
for the purpose of accepting such donations or
contributions), or to or on behalf of any political
organization under section 527 of the Internal Revenue
Code of 1986 which accepts such donations or
contributions (other than a committee of a State or
local political party or a candidate for election for
State or local office).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to elections occurring after January 1, 2015.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on House Administration.
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