Political Accountability and Transparency Act
This bill restricts the use of certain political funds and revises requirements for political communications. Specifically, the bill
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 679 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 679
To amend the Federal Election Campaign Act of 1971 to apply the
restrictions on the use of campaign funds for personal use to the funds
of leadership PACs and other political committees, to clarify the
treatment of certain coordinated expenditures as contributions to
candidates, to require the sponsors of certain political advertisements
to identify the source of funds used for the advertisements, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 17, 2019
Miss Rice of New York (for herself, Mr. Kilmer, and Mr. Gallagher)
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 apply the
restrictions on the use of campaign funds for personal use to the funds
of leadership PACs and other political committees, to clarify the
treatment of certain coordinated expenditures as contributions to
candidates, to require the sponsors of certain political advertisements
to identify the source of funds used for the 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 ``Political Accountability and
Transparency Act''.
SEC. 2. APPLYING PERSONAL USE RESTRICTIONS TO LEADERSHIP PACS AND OTHER
POLITICAL COMMITTEES.
(a) Applying Restrictions.--Section 313(b) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30114(b)) is amended--
(1) in paragraph (1), by inserting ``or a receipt of any
other political committee'' after ``subsection (a)'';
(2) in paragraph (2), by striking ``contribution or
donation'' and inserting ``contribution, donation, or
receipt''; and
(3) in paragraph (2), by striking ``campaign or
individual's duties as a holder of Federal office'' and
inserting ``campaign, the individual's duties as a holder of
Federal office, or the political committee's political
activities.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to contributions and donations received on or after
the date of the enactment of this Act.
SEC. 3. CLARIFICATION OF TREATMENT OF COORDINATED EXPENDITURES AS
CONTRIBUTIONS.
(a) Treatment as Contribution.--Section 301(8)(A) of the Federal
Election Campaign Act of 1971 (52 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 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 (52 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, with respect to a
candidate, authorized committee, or political party--
``(A) any payment for any communication which
republishes, disseminates, or distributes, in whole or
in substantial part, any video, audio, written,
graphic, or other form of campaign material created or
prepared by the candidate, an authorized committee of a
candidate, or a committee of a political party, but
does not include--
``(i) any payment made by the candidate,
the authorized committee, or the political
party which created or prepared the material
involved; or
``(ii) any payment for the republication,
dissemination, or distribution of the material
involved for purposes of opposing the
candidate, authorized committee, or political
party which created or prepared the material
involved; or
``(B) any payment for a covered expenditure
described in subsection (c) which is made in
cooperation, consultation, or concert with, or at the
request or suggestion of, a candidate, an authorized
committee of a candidate, or a political committee of a
political party, as defined in subsection (b).
``(2) Clarification of individuals treated as candidates.--
For purposes of this section, an individual shall be treated as
a candidate if the individual is a candidate at the time of a
coordinated expenditure, without regard to whether the
individual was a candidate at the time the coordination
occurred, as described in subsection (b).
``(3) Treatment of employees, independent contractors, and
agents.--For purposes of this section, any reference to a
candidate, committee, officeholder, or political party
includes--
``(A) an employee or independent contractor of the
candidate, committee, officeholder, or party, if such
employee or contractor has executive or managerial
authority (or acts under the direction or control of an
employee or contractor who has such executive or
managerial authority) for the candidate, committee,
officeholder, or political party at any time during the
election cycle in which the expenditure is made (in the
case of a candidate or committee for an election for
the office of President) or during the 2-year period
ending on the date the expenditure is made (in the case
of a candidate or committee for an election for any
other Federal office or any political party); or
``(B) an agent (including an authorized
fundraiser), whether paid or unpaid, of the candidate,
committee, officeholder, or party at any time during
the election cycle in which the expenditure is made (in
the case of a candidate or committee for an election
for the office of President) or during the 2-year
period ending on the date the expenditure is made (in
the case of a candidate or committee for an election
for any other Federal office or any political party),
without regard to whether the individual was such an
agent at the time any of the coordination described in
subsection (b) occurred.
``(4) Exceptions.--A payment shall not be treated as a
coordinated expenditure under this section if--
``(A) the payment is for a communication which
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 payment is for a candidate debate or
forum conducted pursuant to regulations adopted by the
Commission pursuant to section 304(f)(3)(B)(iii), or is
for a communication 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.--For purposes of this section, a
covered expenditure is made `in cooperation, consultation, or concert
with, or at the request or suggestion of,' a candidate, an authorized
committee of a candidate, or a political committee of a political party
if any of the following apply:
``(1) The covered expenditure is not made totally
independently of the candidate, committee, or political party.
For purposes of the previous sentence, a covered expenditure
not made totally independently of the candidate or committee
includes any expenditure made pursuant to any express or
implied agreement with, or any general or particular
understanding with, or pursuant to any request by or
communication with, the candidate, committee, or political
party about the expenditure.
``(2) During the 2-year period ending on the date the
covered expenditure is made (in the case of a candidate or
committee for an election for any other Federal office or any
political party) or during the election cycle in which the
covered expenditure is made (in the case of a candidate or
committee for an election for the office of President), the
person making the covered expenditure was directly or
indirectly established, maintained, controlled, or principally
funded by the candidate, an immediate family member of the
candidate, the committee, or party. For purposes of the
previous sentence, an `immediate family member' means, with
respect to a candidate, a father, mother, son, daughter,
brother, sister, spouse, domestic partner, father-in-law, or
mother-in-law.
``(3) During the 2-year period ending on the date the
covered expenditure is made (in the case of a candidate or
committee for an election for any other Federal office or any
political party) or during the election cycle in which the
covered expenditure is made (in the case of a candidate or
committee for an election for the office of President), the
candidate, the committee, or political party solicited funds
for, provided nonpublic fundraising information or strategy to,
appeared as a speaker or featured guest at a fundraiser for, or
gave permission to be featured in fundraising efforts for, the
person making the covered expenditure. The previous sentence
does not apply if the person making the covered expenditure is
an organization described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code.
``(4) The covered expenditure is made on the basis of non-
public information about the candidate's, committee's, or
political party's campaign needs or plans that the candidate,
committee, or political party provided directly or indirectly
to the person making the covered expenditure, including
information about campaign messaging, strategy, fundraising,
planned expenditures, or polling data. The previous sentence
does not apply to communications between the person making the
covered expenditure and the candidate, committee, or political
party solely for the purpose of either engaging in discussions
regarding the person's position on a policy matter or regarding
whether the person will endorse the candidate or party, so long
as such communications do not include any nonpublic information
about the candidate's, committee's, or party's campaign needs
or plans.
``(5)(A) During the 2-year period ending on the date the
covered expenditure is made (in the case of a candidate or
committee for an election for any other Federal office or any
political party) or during the election cycle in which the
covered expenditure is made (in the case of a candidate or
committee for an election for the office of President), the
person making the covered expenditure employed or otherwise
retained the services (other than accounting or legal services)
of a person who, at any point during that cycle or two-year
period--
``(i) had executive or managerial authority for the
candidate, committee, or party, whether paid or unpaid;
``(ii) was authorized to raise or expend funds for
the candidate, committee, or party and had nonpublic
information from the candidate, committee, or party
about the candidate's, committee's or party's
campaign's needs or plans; or
``(iii) provided the candidate, committee, or party
with professional services (other than accounting or
legal services) related to campaign or fundraising
strategy.
``(B) Subparagraph (A) does not apply with respect to a
person employed or otherwise retained by a person making a
covered expenditure if, at the time the person who was so
employed or retained exercised the authority or provided the
services described in clauses (i) through (iii) of such
subparagraph, the person making the covered expenditure had in
effect a firewall policy which meets the requirements of
subsection (d).
``(c) Covered Expenditures.--
``(1) Candidates and authorized committees.--For purposes
of this section, the term `covered expenditure' means, with
respect to a candidate or an authorized committee of a
candidate, any of the following:
``(A) An expenditure for a public communication (as
defined in section 301(22)) which--
``(i) expressly advocates for the
nomination or election of the candidate or for
the defeat of an opponent of the candidate (or
contains the functional equivalent of express
advocacy);
``(ii) 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
``(iii) refers to the candidate or an
opponent of the candidate but is not described
in clause (i) or clause (ii), but only if,
during the period which begins 120 days before
the date of the primary election for the office
involved and ends on the date of the general
election for such office (or, if necessary, the
date of a runoff election following such
general election), the communication is
disseminated in the jurisdiction of the office
the candidate is seeking.
``(B) An expenditure to pay for partisan voter
activity (such as partisan voter registration, get-out-
the-vote activity, phone banking, or generic campaign
activity) in the jurisdiction of the office the
candidate is seeking.
``(C) An expenditure to pay for research, design or
production costs, polling expenses, data analytics,
creating or purchasing mailing or social media lists,
or other activities related to the expenditures
described in subparagraphs (A) or (B).
``(2) Political parties.--For purposes of this section, the
term `covered expenditure' means, with respect to a political
party, any of the following:
``(A) An expenditure for a public communication (as
defined in section 301(22)) which--
``(i) expressly advocates for the
nomination or election of a candidate of the
party or for the defeat of an opponent of a
candidate of the party, including a
communication which expressly advocates
generically for the election of candidates of
the party or for the defeat of opponents of
candidates of the party (or contains the
functional equivalent of express advocacy);
``(ii) promotes or supports a candidate of
the party, or attacks or opposes an opponent of
a candidate of the party (regardless of whether
the communication expressly advocates the
election or defeat of a candidate or contains
the functional equivalent of express advocacy);
or
``(iii) refers to a candidate of the party
or an opponent of a candidate of the party but
is not described in clause (i) or clause (ii),
but only if, during the period which begins 120
days before the date of the primary election
for the office involved and ends on the date of
the general election for such office (or, if
necessary, the date of a runoff election
following such general election), the
communication is disseminated in the
jurisdiction of the office the candidate is
seeking.
``(B) An expenditure to pay for partisan voter
activity (such as partisan voter registration, get-out-
the-vote activity, phone banking, or generic campaign
activity) in the jurisdiction of the office a candidate
of the party is seeking.
``(C) An expenditure to pay for research, design or
production costs, polling expenses, data analytics,
creating or purchasing mailing or social media lists,
or other activities related to the expenditures
described in subparagraphs (A) or (B).
``(d) Firewall Policy Requirements.--For purposes of paragraph (5)
of subsection (b), a firewall policy of a person making a covered
expenditure meets the requirements of this subsection if all of the
following apply:
``(1) The policy separates the specific staff of such
person who provide services related to the making of the
covered expenditure from the distinct, specific staff who have
engaged or will engage in any of the authorities or services
described in clauses (i) through (iii) of subparagraph (B) of
paragraph (5) of subsection (b) with the candidate, authorized
committee, or political party supported by the covered
expenditure.
``(2) The policy forbids owners of such person and
executives, managers, and supervisors within such person's
organization, to simultaneously oversee the work of staff being
separated by a firewall.
``(3) The policy imposes a prohibition on the flow of
strategic nonpublic information, including by imposing physical
and technological separations, between such person and the
candidate, committee, or party supported by the covered
expenditure, and between the specific staff who are being
separated by the firewall.
``(4) The policy is memorialized in writing and distributed
to all relevant staff (including consultants) before such staff
provide any services relating to the making of the covered
expenditure, and the written policy described both the general
firewall policy and any specific firewall created pursuant to
such policy, and the person making the covered expenditure
provides such written policy upon request to the Commission.
``(e) No Limitation on Application of Other Coordination Rules.--
Nothing in this section may be construed to limit the application of
section 315(a)(7) to any contribution, expenditure, disbursement, or
person.''.
(c) Effective Date; Effect on Existing Regulations.--
(1) Effective date.--The amendments made by this section
shall apply with respect to payments made on or after the
expiration of the 60-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 (2)(B) as of the expiration of such
period.
(2) Repeal of existing regulations on coordination.--
Effective upon the expiration of the 60-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.
(3) Termination of validity of advisory opinions.--To the
extent that any advisory opinion issued by the Federal Election
Commission prior to expiration of the period described in
paragraph (2) was based on the regulations referred to in
subparagraph (A) of paragraph (2), the validity of the opinion
is hereby terminated, and no person may rely upon the opinion
with respect to conduct occurring after the expiration of such
period.
SEC. 4. EXPANSION OF DEFINITION OF PUBLIC COMMUNICATION.
(a) In General.--Paragraph (22) of section 301 of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30101(22)) is amended by
striking ``or satellite communication'' and inserting ``satellite, paid
Internet, or paid digital communication''.
(b) Treatment of Contributions and Expenditures.--Section 301 of
such Act (52 U.S.C. 30101) is amended--
(1) in paragraph (8)(B)--
(A) by striking ``on broadcasting stations, or in
newspapers, magazines, or similar types of general
public political advertising'' in clause (v) and
inserting ``in any public communication'';
(B) by striking ``broadcasting, newspaper,
magazine, billboard, direct mail, or similar type of
general public communication or political advertising''
in clause (ix)(1) and inserting ``public
communication''; and
(C) by striking ``but not including the use of
broadcasting, newspapers, magazines, billboards, direct
mail, or similar types of general public communication
or political advertising'' in clause (x) and inserting
``but not including use in any public communication'';
and
(2) in paragraph (9)(B)--
(A) by striking clause (i) and inserting the
following:
``(i) any news story, commentary, or
editorial distributed through the facilities of
any broadcasting station or any print, online,
or digital newspaper, magazine, blog,
publication, or periodical, unless such
broadcasting, print, online, or digital
facilities are owned or controlled by any
political party, political committee, or
candidate;''; and
(B) by striking ``on broadcasting stations, or in
newspapers, magazines, or similar types of general
public political advertising'' in clause (iv) and
inserting ``in any public communication''.
(c) Disclosure and Disclaimer Statements.--Subsection (a) of
section 318 of such Act (52 U.S.C. 30120) is amended--
(1) 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
(2) 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''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to communications disseminated on or after January
1, 2020.
SEC. 5. EXPANSION OF DEFINITION OF ELECTIONEERING COMMUNICATION.
(a) Expansion to Online Communications.--
(1) Application to qualified internet and digital
communications.--
(A) In general.--Subparagraph (A) of section
304(f)(3) of the Federal Election Campaign Act of 1971
(52 U.S.C. 30104(f)(3)(A)) is amended by striking ``or
satellite communication'' each place it appears in
clauses (i) and (ii) and inserting ``satellite, or
qualified Internet or digital communication''.
(B) Qualified internet or digital communication.--
Paragraph (3) of section 304(f) of such Act (52 U.S.C.
30104(f)) is amended by adding at the end the following
new subparagraph:
``(D) Qualified internet or digital
communication.--The term `qualified Internet or digital
communication' means any communication which is placed
or promoted for a fee on any public-facing website, Web
application, or digital application (including a social
network, ad network, or search engine).''.
(2) Nonapplication of relevant electorate to online
communications.--Section 304(f)(3)(A)(i)(III) of such Act (52
U.S.C. 30104(f)(3)(A)(i)(III)) is amended by inserting ``any
broadcast, cable, or satellite'' before ``communication''.
(3) News exemption.--Section 304(f)(3)(B)(i) of such Act
(52 U.S.C. 30104(f)(3)(B)(i)) is amended to read as follows:
``(i) a communication appearing in a news
story, commentary, or editorial distributed
through the facilities of any broadcasting
station or any online or digital newspaper,
magazine, blog, publication, or periodical,
unless such broadcasting, online, or digital
facilities are owned or controlled by any
political party, political committee, or
candidate;''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to communications made on or after the date of the
enactment of this Act.
SEC. 6. DISCLOSURE OF TRUE IDENTITY OF SOURCE OF FUNDING OF CAMPAIGN
ADVERTISEMENTS.
(a) Requiring Best Efforts To Determine True Source of Funds Used
To Pay for Campaign Advertisements.--Section 318 of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30120) is amended by adding at
the end the following new subsection:
``(e) Requiring Best Efforts To Determine True Source of Funds Used
To Pay for Certain Advertisements.--
``(1) Best efforts required.--The person making a
disbursement of funds for a communication described in
paragraph (3) of subsection (a) shall make best efforts to
determine the true source of the funds used for the
disbursement to ensure that the names of the persons included
in the statement required under such paragraph are the names of
the persons who served as the true source of such funds. For
purposes of this paragraph, such best efforts shall include the
making of multiple requests (if necessary) to contributors to
determine whether the funds provided by the contributors were
transferred (either directly or indirectly) by other persons.
``(2) Treatment of political committees.--For purposes of
this subsection, a political committee shall not be considered
a source of funds used for a disbursement for a communication
described in paragraph (3) of subsection (a), other than an
account of a political committee established for the purpose of
accepting donations or contributions that do not comply with
the contribution limits or source prohibitions under this
Act.''.
(b) Inclusion in Advertisements of Identification of Top Three
Funders.--Section 318 of such Act (52 U.S.C. 30120), as amended by
subsection (a), is further amended by adding at the end the following
new subsection:
``(f) Disclosure of Top Three Funders.--
``(1) Requiring disclosure in certain advertisements.--
``(A) Requirement.--Any communication described in
paragraph (3) of subsection (a), shall, in addition to
including the information required under such paragraph
and under paragraph (2) of subsection (d), include the
Top Three Funders list (if applicable).
``(B) Exclusion of communications paid for by
political parties.--This subsection does not apply with
respect to a communication paid for exclusively by a
political committee of a political party.
``(2) Method of conveyance of statement through video
format.--In the case of a communication to which this
subsection applies which is transmitted through a video format
(including through television or through the Internet or
similar digital format if the transmission includes a video
component), the information required under paragraph (1) shall
appear in writing at the end of the communication in a clearly
readable manner, with a reasonable degree of color contrast
between the background and the printed statement, for a period
of at least 4 seconds.
``(3) Method of conveyance of statement through audio
format.--In the case of a communication to which this
subsection applies which is transmitted in audio format
(including through radio or through the Internet or similar
digital format if the transmission includes an audio
component), the information required under paragraph (1) shall
include, in a clearly spoken manner, the following audio
statement: `Top funders include _______', with the blank filled
in with the names of the persons on the Top Three Funders list.
``(4) Method of conveyance of statement through text and
images.--In the case of a communication to which this
subsection applies which is a printed communication or which is
transmitted through the Internet or similar digital manner and
is not described in paragraphs (2) or paragraph (3), the
information required under paragraph (1) shall appear in a
clearly readable manner, with a reasonable degree of color
contrast between the background and the printed statement.
``(5) Top three funders list defined.--
``(A) In general.--The term `Top Three Funders
list' means, with respect to a communication, a list of
the three persons who, during the 12-month period
ending on the date of the transmission of the
communication or the date on which funds were disbursed
for the communication (whichever is earlier), provided
the largest payments of any type in an aggregate amount
exceeding the applicable threshold 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 third largest of such payments, the
person who provided the most recent of such payments
shall be included on the Top Three Funders list.
``(B) Exclusion of certain payments.--For purposes
of subparagraph (A), 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
communications under this section, 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 payments for such
communications.
``(6) Applicable threshold defined.--
``(A) In general.--For purposes of subparagraph
(A), the `applicable threshold' with respect to a
communication is--
``(i) $10,000, if the funds used to pay for
the costs of the communication were derived
exclusively from a separate, segregated account
which meets the requirements of subparagraph
(B); or
``(ii) $50,000, if the funds used to pay
for the costs of the communication were not
derived exclusively from such an account.
``(B) Requirements for accounts.--An account meets
the requirements of this subparagraph if--
``(i) the account is separate and
segregated from the general fund of the person
paying for the costs of communications which
are subject to the requirements of this
subsection; and
``(ii) the account does not include any
funds transferred from the general treasury of
the person paying for the costs of such
communications unless the funds were
transferred during the 12-month period ending
on the date of the transmission of the
communication or the date on which funds were
disbursed for the communication (whichever is
earlier) and the person who provided the funds
to the general treasury gave written permission
for the funds to be transferred to the
account.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to communications made on or after January 1, 2020.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on House Administration.
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