Openness in Political Expenditures Now Act or the OPEN Act
This bill requires each corporation that submits regular and periodic reports to shareholders to (1) include information about certain political activities during the time period covered by the report, and (2) provide copies of reports disclosing political activities to the Federal Election Commission.
The bill also prohibits an organization from obtaining tax-exempt status under Section 501(c)(4) of the Internal Revenue Code if its expenditures on covered political activities exceed certain thresholds in a taxable year.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4359 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4359
To amend the Federal Election Campaign Act of 1971 to require
corporations to disclose to their shareholders the amounts disbursed
for certain political activity, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 6, 2021
Mr. Cartwright (for himself, Ms. Kaptur, and Mr. Schiff) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on House Administration, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Federal Election Campaign Act of 1971 to require
corporations to disclose to their shareholders the amounts disbursed
for certain political activity, 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 ``Openness in Political Expenditures
Now Act'' or the ``OPEN Act''.
SEC. 2. DISCLOSURE BY CORPORATIONS TO SHAREHOLDERS OF DISBURSEMENTS FOR
POLITICAL ACTIVITY.
(a) Disclosure Required.--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:
``SEC. 325. DISCLOSURES BY CORPORATIONS TO SHAREHOLDERS OF INFORMATION
ON DISBURSEMENTS FOR CERTAIN POLITICAL ACTIVITY.
``(a) Including Information in Regular Periodic Reports.--
``(1) In general.--A corporation which submits regular,
periodic reports to its shareholders shall include in each such
report, in a clear and conspicuous manner, the information
described in paragraph (2) with respect to the disbursements
made by the corporation for covered political activity during
the period covered by the report, but only if the amount of the
disbursement made for such activity during the period covered
by the report equals or exceeds the applicable threshold for
the activity described in paragraph (3).
``(2) Information described.--The information described in
this paragraph is, for each disbursement for covered political
activity--
``(A) the date of the disbursement;
``(B) the amount of the disbursement;
``(C) in the case of a disbursement consisting of
an independent expenditure or an electioneering
communication, or in the case of a covered political
activity described in subsection (c)(3), the name of
the candidate identified in the independent expenditure
or electioneering communication involved, the
Commission ID assigned to the candidate, and the office
sought by the candidate; and
``(D) in the case of a covered political activity
described in subsection (c)(4), the identification of
the association or organization to whom the
disbursement was made, and the Commission ID (if any)
assigned to the association or organization.
``(3) Applicable threshold for disclosure.--For purposes of
paragraph (1), the `applicable threshold' with respect to a
disbursement for covered political activity during a period
covered by a report is as follows:
``(A) In the case of covered political activity
consisting of an independent expenditure, $250.
``(B) In the case of covered political activity
consisting of an electioneering communication or a
communication described in subsection (c)(3), $10,000.
``(C) In the case of covered political activity
consisting of a payment described in subsection (c)(4),
the amount of the limitation on contributions which is
in effect under section 315(a)(1)(C) as of the last day
of the period.
``(b) Submission of Statement to Commission.--
``(1) Submission of statement.--If a corporation includes
information in a report pursuant to this section, at the time
the corporation submits the report to its shareholders, the
corporation shall file a statement with the Commission
consisting of the information included in the report pursuant
to this section.
``(2) Hyperlink to information.--
``(A) Requiring posting of hyperlink.--If a
corporation maintains an internet site, the corporation
shall post on such internet site a hyperlink from its
homepage to the location on the internet site of the
Commission which contains the statement filed by the
corporation under paragraph (1).
``(B) Deadline; duration of posting.--The
corporation shall post the hyperlink described in
subparagraph (A) not later than 24 hours after the
Commission posts the statement filed by the corporation
under paragraph (1) on the internet site of the
Commission, and shall ensure that the hyperlink remains
on the internet site of the corporation until the
expiration of the 1-year period which begins on the
date of the election with respect to which the
disbursements included in the statement are made.
``(c) Covered Political Activity Defined.--In this section, the
term `covered political activity' means each of the following:
``(1) An independent expenditure (as defined in section
301(17)).
``(2) An electioneering communication (as defined in
section 304(f)(3)).
``(3) A communication which would be treated as an
electioneering communication under section 304(f)(3) if the
communication had been a broadcast, cable, or satellite
communication.
``(4) The payment of dues or other amounts to a trade
association or to a section 501(c)(4) organization.
``(d) Other Definitions.--In this section, the following
definitions apply:
``(1) The term `corporation' means any corporation which is
subject to section 316(a).
``(2) The term `section 501(c)(4) organization' means any
organization described in paragraph (4) of section 501(c) of
the Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to reports described in section 325(a)(1) of the
Federal Election Campaign Act of 1971 (as added by subsection (a))
which are filed after the expiration of the 90-day period which begins
on the date of the enactment of this Act.
SEC. 3. LIMITATION ON ENGAGING IN COVERED POLITICAL ACTIVITIES BY
SOCIAL WELFARE ORGANIZATIONS.
(a) In General.--Section 501(c)(4) of the Internal Revenue Code of
1986 is amended by adding at the end the following:
``(C)(i) Subparagraph (A) shall not apply to an
entity for a taxable year if the total expenditures of
such entity for the taxable year for covered political
activity exceed the lesser of--
``(I) 10 percent of the total expenditures
of such entity for the taxable year, or
``(II) $10,000,000.
``(ii) Subparagraph (A) shall not apply to an
entity for a taxable year unless its governing
instrument includes provisions the effects of which are
to prohibit the expenditures of the entity for a
covered political activity from exceeding the threshold
specified in clause (i).
``(iii) For purposes of this subparagraph, the term
`covered political activity' means--
``(I) any activity described in paragraphs
(1) through (3) of section 325(c) of the
Federal Election Campaign Act of 1971, and
``(II) any payment by the entity to any
other entity described in this paragraph or to
an organization described in paragraph (6)
which the payor entity knows, or has reason to
know, will be used directly or indirectly by
the payee entity or organization for any
activity referred to in subclause (I).
``(iv) Clause (i) shall not apply for a taxable
year for which the 10-percent threshold specified in
clause (i)(I) is exceeded by not more than a de minimis
amount if the Secretary determines that the reason for
exceeding the threshold was not willful and is due to
reasonable cause.
``(v) The Secretary shall prescribe such
regulations as may be necessary or appropriate to
prevent the avoidance of clause (i), including
regulations relating to a direct or indirect transfer
of all or part of the assets of an entity to an entity
controlled (directly or indirectly) by the same person
or persons who control the transferor entity.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 4. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or the
application of a provision or amendment to any person or circumstance,
is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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