Stand By Every Ad Act
This bill generally revises requirements related to disclosures provided with political advertisements. The bill applies political advertising disclosure requirements currently applicable to candidates (also known as stand by your ad requirements) to entities such as corporations and nonprofit organizations. Political advertisements made by these organizations must generally disclose the top funders of the entity, with specified exceptions.
The bill revises the classification of certain media, including audio and visual media, for purposes of disclaimer requirements. The bill also expands the definition of public communication to include digital communication, creates additional disclaimer readability requirements, and expands disclosure requirements for public communications consisting of campaign-related disbursements.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4054 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4054
To amend the Federal Election Campaign Act of 1971 to require the
sponsors of certain general public political advertisements to include
in the advertisements information on the persons who provided the
funding for such advertisements, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2019
Mr. Price of North Carolina 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 require the
sponsors of certain general public political advertisements to include
in the advertisements information on the persons who provided the
funding for such advertisements, 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. SHORT TITLE.
This Act may be cited as the ``Stand By Every Ad Act''.
SEC. 2. APPLICATION OF DISCLAIMER STATEMENTS TO ONLINE COMMUNICATIONS.
(a) Application to Online Public Communications.--
(1) In general.--Subsection (a) of section 318 of the
Federal Election Campaign Act of 1971 (52 U.S.C. 30120) is
amended--
(A) by striking ``financing any communication
through any broadcasting station, newspaper, magazine,
outdoor advertising facility, mailing, or any other
type of general public political advertising'' and
inserting ``financing any public communication''; and
(B) by striking ``solicits any contribution through
any broadcasting station, newspaper, magazine, outdoor
advertising facility, mailing, or any other type of
general public political advertising'' and inserting
``solicits any contribution through any public
communication''.
(2) Conforming amendment relating to definition of public
communication.--Paragraph (22) of section 301 of such Act (52
U.S.C. 30101(22)) is amended by striking ``or satellite
communication'' and inserting ``satellite, paid internet, or
paid digital communication''.
(b) Clear and Conspicuous Manner Requirement.--Subsection (a) of
section 318 of such Act (52 U.S.C. 30120(a)) is amended--
(1) by striking ``shall clearly state'' each place it
appears in paragraphs (1), (2), and (3) and inserting ``shall
state in a clear and conspicuous manner''; and
(2) by adding at the end the following flush sentence:
``For purposes of this section, a communication does not make a
statement in a clear and conspicuous manner if it is difficult
to read or hear or if the placement is easily overlooked.''.
(c) Special Rules for Qualified Internet or Digital
Communications.--
(1) In general.--Section 318 of such Act (52 U.S.C. 30120)
is amended by adding at the end the following new subsection:
``(e) Special Rules for Qualified Internet or Digital
Communications.--
``(1) Special rules with respect to statements.--In the
case of any qualified internet or digital communication which
is disseminated through a medium in which the provision of all
of the information specified in this section is not possible,
the communication shall, in a clear and conspicuous manner--
``(A) state the name of the person who paid for the
communication; and
``(B) provide a means for the recipient of the
communication to obtain the remainder of the
information required under this section with minimal
effort and without receiving or viewing any additional
material other than such required information.
``(2) Safe harbor for determining clear and conspicuous
manner.--A statement in qualified internet or digital
communication shall be considered to be made in a clear and
conspicuous manner as provided in subsection (a) if the
communication meets the following requirements:
``(A) Text or graphic communications.--In the case
of a text or graphic communication, the statement--
``(i) appears in letters at least as large
as the majority of the text in the
communication; and
``(ii) meets the requirements of paragraphs
(2) and (3) of subsection (c).
``(B) Audio communications.--In the case of an
audio communication, the statement is spoken in a
clearly audible and intelligible manner at the
beginning or end of the communication and lasts at
least 3 seconds.
``(C) Video communications.--In the case of a video
communication which also includes audio, the
statement--
``(i) is included at either the beginning
or the end of the communication; and
``(ii) is made both in--
``(I) a written format that meets
the requirements of subparagraph (A)
and appears for at least 4 seconds; and
``(II) an audible format that meets
the requirements of subparagraph (B).
``(D) Other communications.--In the case of any
other type of communication, the statement is at least
as clear and conspicuous as the statement specified in
subparagraph (A), (B), or (C).
``(3) Qualified internet or digital communication
defined.--
``(A) In general.--In this section, the term
`qualified internet or digital communication' means any
communication which is placed or promoted for a fee on
an online platform.
``(B) Online platform.--For purposes of this
paragraph, the term `online platform' means any public-
facing website, web application, or digital application
(including a social network, ad network, or search
engine) which--
``(i) sells qualified political
advertisements; and
``(ii) has 50,000,000 or more unique
monthly United States visitors or users for a
majority of months during the preceding 12
months.
``(C) Qualified political advertisement.--For
purposes of this paragraph, the term `qualified
political advertisement' means any advertisement
(including search engine marketing, display
advertisements, video advertisements, native
advertisements, and sponsorships) that--
``(i) is made by or on behalf of a
candidate; or
``(ii) communicates a message relating to
any political matter of national importance,
including--
``(I) a candidate;
``(II) any election to Federal
office; or
``(III) a national legislative
issue of public importance.''.
(2) Nonapplication of certain exceptions.--The exceptions
provided in section 110.11(f)(1)(i) and (ii) of title 11, Code
of Federal Regulations, or any successor to such rules, shall
have no application to qualified internet or digital
communications (as defined in section 318(e)(3) of the Federal
Election Campaign Act of 1971, as added by paragraph (1)).
(d) Modification of Additional Requirements for Certain
Communications.--Section 318(d) of such Act (52 U.S.C. 30120(d)) is
amended--
(1) in paragraph (1)(A)--
(A) by striking ``which is transmitted through
radio'' and inserting ``which is in an audio format'';
and
(B) by striking ``By radio'' in the heading and
inserting ``Audio format'';
(2) in paragraph (1)(B)--
(A) by striking ``which is transmitted through
television'' and inserting ``which is in video
format''; and
(B) by striking ``By television'' in the heading
and inserting ``Video format''; and
(3) in paragraph (2)--
(A) by striking ``transmitted through radio or
television'' and inserting ``made in audio or video
format''; and
(B) by striking ``through television'' in the
second sentence and inserting ``in video format''.
SEC. 3. DISCLAIMER REQUIREMENTS FOR COMMUNICATIONS CONSISTING OF
CAMPAIGN-RELATED DISBURSEMENTS.
(a) Disclaimer Requirements for Campaign-Related Disbursements.--
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''.
(b) Campaign-Related Disbursements Defined.--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:
``(f) Campaign-Related Disbursement Defined.--
``(1) In general.--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):
``(A) 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.
``(B) 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.
``(C) An electioneering communication, as defined
in section 304(f)(3).
``(D) A covered transfer.
``(2) Covered organization defined.--In this subsection,
the term `covered organization' means any of the following:
``(A) A corporation (other than an organization
described in section 501(c)(3) of the Internal Revenue
Code of 1986).
``(B) 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).
``(C) 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).
``(D) A labor organization (as defined in section
316(b)).
``(E) 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)).
``(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.
``(3) Covered transfer defined.--
``(A) In general.--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--
``(i) designates, requests, or suggests
that the amounts be used for--
``(I) campaign-related
disbursements (other than covered
transfers); or
``(II) making a transfer to another
person for the purpose of making or
paying for such campaign-related
disbursements;
``(ii) made such transfer or payment in
response to a solicitation or other request for
a donation or payment for--
``(I) the making of or paying for
campaign-related disbursements (other
than covered transfers); or
``(II) making a transfer to another
person for the purpose of making or
paying for such campaign-related
disbursements;
``(iii) engaged in discussions with the
recipient of the transfer or payment
regarding--
``(I) the making of or paying for
campaign-related disbursements (other
than covered transfers); or
``(II) 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;
``(iv) 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
``(v) 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.
``(B) Exclusions.--The term `covered transfer' does
not include any of the following:
``(i) 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.
``(ii) A disbursement made by a covered
organization if--
``(I) the covered organization
prohibited, in writing, the use of such
disbursement for campaign-related
disbursements; and
``(II) 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.
``(C) Special rule regarding transfers among
affiliates.--
``(i) Special rule.--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.
``(ii) Determination of amount of certain
payments among affiliates.--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.
``(iii) Description of transfers between
affiliates.--A transfer of amounts from one
covered organization to another covered
organization shall be treated as a transfer
between affiliates if--
``(I) one of the organizations is
an affiliate of the other organization;
or
``(II) 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.
``(iv) Determination of affiliate status.--
For purposes of clause (iii), a covered
organization is an affiliate of another covered
organization if--
``(I) the governing instrument of
the organization requires it to be
bound by decisions of the other
organization;
``(II) 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
``(III) the organization is
chartered by the other organization.
``(v) Coverage of transfers to affiliated
section 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.''.
SEC. 4. STAND BY EVERY AD.
(a) Expanded Disclaimer Requirements for Certain Communications.--
Section 318 of the Federal Election Campaign Act of 1971 (52 U.S.C.
30120), as amended by section 2(c)(1) and section 3(b), is further
amended by adding at the end the following new subsection:
``(g) Expanded Disclaimer Requirements for Communications Not
Authorized by Candidates or Committees.--
``(1) In general.--Except as provided in paragraph (6), any
communication described in paragraph (3) of subsection (a)
which is transmitted in an audio or video format (including an
Internet or digital communication), or which is an Internet or
digital communication transmitted in a text or graphic format,
shall include, in addition to the requirements of paragraph (3)
of subsection (a), the following:
``(A) The individual disclosure statement described
in paragraph (2)(A) (if the person paying for the
communication is an individual) or the organizational
disclosure statement described in paragraph (2)(B) (if
the person paying for the communication is not an
individual).
``(B) If the communication is transmitted in a
video format, or is an Internet or digital
communication which is transmitted in a text or graphic
format, and is paid for in whole or in part with a
payment which is treated as a campaign-related
disbursement under subsection (f)--
``(i) the Top Five Funders list (if
applicable); or
``(ii) in the case of a communication
which, as determined on the basis of criteria
established in regulations issued by the
Commission, is of such short duration that
including the Top Five Funders list in the
communication would constitute a hardship to
the person paying for the communication by
requiring a disproportionate amount of the
content of the communication to consist of the
Top Five Funders list, the name of a website
which contains the Top Five Funders list (if
applicable) or, in the case of an Internet or
digital communication, a hyperlink to such
website.
``(C) If the communication is transmitted in an
audio format and is paid for in whole or in part with a
payment which is treated as a campaign-related
disbursement under subsection (f)--
``(i) the Top Two Funders list (if
applicable); or
``(ii) in the case of a communication
which, as determined on the basis of criteria
established in regulations issued by the
Commission, is of such short duration that
including the Top Two Funders list in the
communication would constitute a hardship to
the person paying for the communication by
requiring a disproportionate amount of the
content of the communication to consist of the
Top Two Funders list, the name of a website
which contains the Top Two Funders list (if
applicable).
``(2) Disclosure statements described.--
``(A) Individual disclosure statements.--The
individual disclosure statement described in this
subparagraph is the following: `I am ________, and I
approve this message.', with the blank filled in with
the name of the applicable individual.
``(B) Organizational disclosure statements.--The
organizational disclosure statement described in this
subparagraph is the following: `I am ________, the
________ of ________, and ________ approves this
message.', with--
``(i) the first blank to be filled in with
the name of the applicable individual;
``(ii) the second blank to be filled in
with the title of the applicable individual;
and
``(iii) the third and fourth blank each to
be filled in with the name of the organization
or other person paying for the communication.
``(3) Method of conveyance of statement.--
``(A) Communications in text or graphic format.--In
the case of a communication to which this subsection
applies which is transmitted in a text or graphic
format, the disclosure statements required under
paragraph (1) shall appear in letters at least as large
as the majority of the text in the communication.
``(B) Communications transmitted in audio format.--
In the case of a communication to which this subsection
applies which is transmitted in an audio format, the
disclosure statements required under paragraph (1)
shall be made by audio by the applicable individual in
a clear and conspicuous manner.
``(C) Communications transmitted in video format.--
In the case of a communication to which this subsection
applies which is transmitted in a video format, the
information required under paragraph (1)--
``(i) shall appear in writing at the end of
the communication or in a crawl along the
bottom of the communication in a clear and
conspicuous manner, with a reasonable degree of
color contrast between the background and the
printed statement, for a period of at least 6
seconds; and
``(ii) shall also be conveyed by an
unobscured, full-screen view of the applicable
individual or by the applicable individual
making the statement in voice-over accompanied
by a clearly identifiable photograph or similar
image of the individual, except in the case of
a Top Five Funders list.
``(4) Applicable individual defined.--The term `applicable
individual' means, with respect to a communication to which
this subsection applies--
``(A) if the communication is paid for by an
individual, the individual involved;
``(B) if the communication is paid for by a
corporation, the chief executive officer of the
corporation (or, if the corporation does not have a
chief executive officer, the highest ranking official
of the corporation);
``(C) if the communication is paid for by a labor
organization, the highest ranking officer of the labor
organization; and
``(D) if the communication is paid for by any other
person, the highest ranking official of such person.
``(5) Top five funders list and top two funders list
defined.--
``(A) Top five funders list.--The term `Top Five
Funders list' means, with respect to a communication
which is paid for in whole or in part with a campaign-
related disbursement (as defined in subsection (f)), a
list of the five persons who, during the 12-month
period ending on the date of the disbursement, provided
the largest payments of any type in an aggregate amount
equal to or exceeding $10,000 to the person who is
paying for the communication and the amount of the
payments each such person provided. If two or more
people provided the fifth largest of such payments, the
person paying for the communication shall select one of
those persons to be included on the Top Five Funders
list.
``(B) Top two funders list.--The term `Top Two
Funders list' means, with respect to a communication
which is paid for in whole or in part with a campaign-
related disbursement (as defined in subsection (f)), a
list of the persons who, during the 12-month period
ending on the date of the disbursement, provided the
largest and the second largest payments of any type in
an aggregate amount equal to or exceeding $10,000 to
the person who is paying for the communication and the
amount of the payments each such person provided. If
two or more persons provided the second largest of such
payments, the person paying for the communication shall
select one of those persons to be included on the Top
Two Funders list.
``(C) Exclusion of certain payments.--For purposes
of subparagraphs (A) and (B), in determining the amount
of payments made by a person to a person paying for a
communication, there shall be excluded the following:
``(i) Any amounts provided in the ordinary
course of any trade or business conducted by
the person paying for the communication or in
the form of investments in the person paying
for the communication.
``(ii) Any payment which the person
prohibited, in writing, from being used for
campaign-related disbursements, but only if the
person paying for the communication agreed to
follow the prohibition and deposited the
payment in an account which is segregated from
any account used to make campaign-related
disbursements.
``(6) Special rules for certain communications.--
``(A) Exception for communications paid for by
political parties and certain political committees.--
This subsection does not apply to any communication to
which subsection (d)(2) applies.
``(B) Treatment of video communications lasting 10
seconds or less.--In the case of a communication to
which this subsection applies which is transmitted in a
video format, or is an Internet or digital
communication which is transmitted in a text or graphic
format, the communication shall meet the following
requirements:
``(i) The communication shall include the
individual disclosure statement described in
paragraph (2)(A) (if the person paying for the
communication is an individual) or the
organizational disclosure statement described
in paragraph (2)(B) (if the person paying for
the communication is not an individual).
``(ii) The statement described in clause
(i) shall appear in writing at the end of the
communication, or in a crawl along the bottom
of the communication, in a clear and
conspicuous manner, with a reasonable degree of
color contrast between the background and the
printed statement, for a period of at least 4
seconds.
``(iii) The communication shall include, in
a clear and conspicuous manner, a website
address with a landing page which will provide
all of the information described in paragraph
(1) with respect to the communication. Such
address shall appear for the full duration of
the communication.
``(iv) To the extent that the format in
which the communication is made permits the use
of a hyperlink, the communication shall include
a hyperlink to the website address described in
clause (iii).''.
(b) Exception for Communications Paid for by Political Parties and
Certain Political Committees.--Section 318(d)(2) of such Act (52 U.S.C.
30120(d)(2)) is amended--
(1) in the heading, by striking ``others'' and inserting
``certain political committees'';
(2) by striking ``Any communication'' and inserting ``(A)
Any communication'';
(3) by inserting ``which (except to the extent provided in
subparagraph (B)) is paid for by a political committee
(including a political committee of a political party) and''
after ``subsection (a)'';
(4) by striking ``or other person'' each place it appears;
and
(5) by adding at the end the following new subparagraph:
``(B)(i) This paragraph does not apply to a communication
paid for in whole or in part during a calendar year with a
campaign-related disbursement, but only if the covered
organization making the campaign-related disbursement made
campaign-related disbursements (as defined in subsection (f))
aggregating more than $10,000 during such calendar year.
``(ii) For purposes of clause (i), in determining the
amount of campaign-related disbursements made by a covered
organization during a year, there shall be excluded the
following:
``(I) Any amounts received by the covered
organization in the ordinary course of any trade or
business conducted by the covered organization or in
the form of investments in the covered organization.
``(II) Any amounts received by the covered
organization from a person who prohibited, in writing,
the organization from using such amounts for campaign-
related disbursements, but only if the covered
organization agreed to follow the prohibition and
deposited the amounts in an account which is segregated
from any account used to make campaign-related
disbursements.''.
SEC. 5. DISCLAIMER REQUIREMENTS FOR COMMUNICATIONS MADE THROUGH
PRERECORDED TELEPHONE CALLS.
(a) Application of Requirements.--
(1) In general.--Section 318(a) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30120(a)), as amended by
section 2(a)(1), is further amended by inserting after ``public
communication'' each place it appears the following:
``(including a telephone call consisting in substantial part of
a prerecorded audio message)''.
(2) Application to communications subject to expanded
disclaimer requirements.--Section 318(g)(1) of such Act (52
U.S.C. 30120(e)(1)), as added by section 4(a), is amended in
the matter preceding subparagraph (A) by striking ``which is
transmitted in an audio or video format'' and inserting ``which
is transmitted in an audio or video format or which consists of
a telephone call consisting in substantial part of a
prerecorded audio message''.
(b) Treatment as Communication Transmitted in Audio Format.--
(1) Communications by candidates or authorized persons.--
Section 318(d) of such Act (52 U.S.C. 30120(d)) is amended by
adding at the end the following new paragraph:
``(3) Prerecorded telephone calls.--Any communication
described in paragraph (1), (2), or (3) of subsection (a)
(other than a communication which is subject to subsection (e))
which is a telephone call consisting in substantial part of a
prerecorded audio message shall include, in addition to the
requirements of such paragraph, the audio statement required
under subparagraph (A) of paragraph (1) or the audio statement
required under paragraph (2) (whichever is applicable), except
that the statement shall be made at the beginning of the
telephone call.''.
(2) Communications subject to expanded disclaimer
requirements.--Section 318(g)(3) of such Act (52 U.S.C.
30120(e)(3)), as added by section 4(a), is amended by adding at
the end the following new subparagraph:
``(D) Prerecorded telephone calls.--In the case of
a communication to which this subsection applies which
is a telephone call consisting in substantial part of a
prerecorded audio message, the communication shall be
considered to be transmitted in an audio format.''.
SEC. 6. NO EXPANSION OF PERSONS SUBJECT TO DISCLAIMER REQUIREMENTS ON
INTERNET COMMUNICATIONS.
Nothing in this Act or the amendments made by this Act may be
construed to require any person who is not required under section 318
of the Federal Election Campaign Act of 1971 (as provided under section
110.11 of title 11 of the Code of Federal Regulations) to include a
disclaimer on communications made by the person through the internet to
include any disclaimer on any such communications.
SEC. 7. EFFECTIVE DATE.
The amendments made by this Act shall apply with respect to
communications made on or after January 1, 2020, and shall take effect
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on House Administration.
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