Democracy Is Strengthened by Casting Light On Spending in Elections Act of 2023 or the DISCLOSE Act of 2023
This bill addresses campaign finance, including by expanding the prohibition on campaign spending by foreign nationals, requiring additional disclosures of campaign expenditures, and requiring additional disclosures regarding certain political advertisements.
Specifically, the bill expands existing foreign money prohibitions to include disbursements for paid web-based or digital communications and federal judicial nomination communications. It also prohibits foreign nationals from contributing to campaigns related to ballot initiatives and referenda.
The Government Accountability Office must, for each four-year election cycle, study and report on the incidence of illicit foreign money in federal elections.
Next, the bill makes it unlawful to establish or use a corporation, company, or other entity with the intent to conceal an election contribution or donation by a foreign national. A violator is subject to criminal penalties—a fine, a prison term of up to five years, or both.
Covered organizations (e.g., corporations, labor organizations, and political organizations) must, within 24 hours, file reports with the Federal Election Commission to disclose campaign expenditures of more than $10,000 during an election cycle.
The bill also requires organizations to provide additional disclosures regarding political advertisements, including the donors who contributed the most money to that organization in the last year.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 512 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 512
To amend the Federal Election Campaign Act of 1971 to provide for
additional disclosure requirements for corporations, labor
organizations, Super PACs and other entities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 16, 2023
Mr. Whitehouse (for himself, Mr. Wyden, Mr. Schumer, Mr. Van Hollen,
Ms. Klobuchar, Mrs. Feinstein, Mrs. Murray, Mr. Durbin, Mr. Reed, Mr.
Carper, Ms. Stabenow, Ms. Cantwell, Mr. Menendez, Mr. Cardin, Mr.
Sanders, Mr. Brown, Mr. Casey, Mr. Tester, Mrs. Shaheen, Mr. Warner,
Mr. Merkley, Mr. Bennet, Mrs. Gillibrand, Mr. Manchin, Mr. Coons, Mr.
Blumenthal, Mr. Schatz, Ms. Baldwin, Mr. Murphy, Ms. Hirono, Mr.
Heinrich, Mr. King, Mr. Kaine, Ms. Warren, Mr. Markey, Mr. Booker, Mr.
Peters, Ms. Duckworth, Ms. Hassan, Ms. Cortez Masto, Ms. Smith, Ms.
Sinema, Ms. Rosen, Mr. Kelly, Mr. Lujan, Mr. Hickenlooper, Mr. Padilla,
Mr. Ossoff, Mr. Warnock, Mr. Welch, and Mr. Fetterman) introduced the
following bill; which was read twice and referred to the Committee on
Rules and Administration
_______________________________________________________________________
A BILL
To amend the Federal Election Campaign Act of 1971 to provide for
additional disclosure requirements for corporations, labor
organizations, Super PACs and other entities, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Democracy Is
Strengthened by Casting Light On Spending in Elections Act of 2023'' or
the ``DISCLOSE Act of 2023''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN
ELECTIONS
Sec. 101. Clarification of application of foreign money ban to certain
disbursements and activities.
Sec. 102. Study and report on illicit foreign money in Federal
elections.
Sec. 103. Prohibition on contributions and donations by foreign
nationals in connection with ballot
initiatives and referenda.
Sec. 104. Disbursements and activities subject to foreign money ban.
Sec. 105. Prohibiting establishment of corporation to conceal election
contributions and donations by foreign
nationals.
TITLE II--REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS
Sec. 201. Reporting of campaign-related disbursements.
Sec. 202. Reporting of Federal judicial nomination disbursements.
Sec. 203. Coordination with FinCEN.
Sec. 204. Application of foreign money ban to disbursements for
campaign-related disbursements consisting
of covered transfers.
Sec. 205. Sense of Congress regarding implementation.
Sec. 206. Effective date.
TITLE III--OTHER ADMINISTRATIVE REFORMS
Sec. 301. Petition for certiorari.
Sec. 302. Judicial review of actions related to campaign finance laws.
Sec. 303. Effective date.
TITLE IV--STAND BY EVERY AD
Sec. 401. Short title.
Sec. 402. Stand by every ad.
Sec. 403. Disclaimer requirements for communications made through
prerecorded telephone calls.
Sec. 404. No expansion of persons subject to disclaimer requirements on
internet communications.
Sec. 405. Effective date.
TITLE V--SEVERABILITY
Sec. 501. Severability.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Campaign finance disclosure is a narrowly tailored and
minimally restrictive means to advance substantial government
interests, including fostering an informed electorate capable
of engaging in self-government and holding their elected
officials accountable, detecting and deterring quid pro quo
corruption, and identifying information necessary to enforce
other campaign finance laws, including campaign contribution
limits and the prohibition on foreign money in U.S. campaigns.
To further these substantial interests, campaign finance
disclosure must be timely and complete, and must disclose the
true and original source of money given, transferred, and spent
to influence Federal elections. Current law does not meet this
objective because corporations and other entities that the
Supreme Court has permitted to spend money to influence Federal
elections are subject to few if any transparency requirements.
(2) As the Supreme Court recognized in its per curiam
opinion in Buckley v. Valeo, 424 U.S. 1, (1976), ``disclosure
requirements certainly in most applications appear to be the
least restrictive means of curbing the evils of campaign
ignorance and corruption that Congress found to exist.''
Buckley, 424 U.S. at 68. In Citizens United v. FEC, the Court
reiterated that ``disclosure is a less restrictive alternative
to more comprehensive regulations of speech.'' 558 U.S. 310,
369 (2010).
(3) No subsequent decision has called these holdings into
question, including the Court's decision in Americans for
Prosperity Foundation v. Bonta, 141 S. Ct. 2373 (2021). That
case did not involve campaign finance disclosure, and the Court
did not overturn its longstanding recognition of the
substantial interests furthered by such disclosure.
(4) Campaign finance disclosure is also essential to
enforce the Federal Election Campaign Act's prohibition on
contributions by and solicitations of foreign nationals. See
section 319 of the Federal Election Campaign Act of 1971 (52
U.S.C. 30121).
(5) Congress should close loopholes allowing spending by
foreign nationals in domestic elections. For example, in 2021,
the Federal Election Commission, the independent Federal agency
charged with protecting the integrity of the Federal campaign
finance process, found reason to believe and conciliated a
matter where an experienced political consultant knowingly and
willfully violated Federal law by soliciting a contribution
from a foreign national by offering to transmit a $2,000,000
contribution to a super PAC through his company and two
501(c)(4) organizations, to conceal the origin of the funds.
This scheme was only unveiled after appearing in a The
Telegraph UK article and video capturing the solicitation. See
Conciliation Agreement, MURs 7165 & 7196 (Great America PAC, et
al.), date June 28, 2021; Factual and Legal Analysis, MURs 7165
& 7196 (Jesse Benton), dated Mar. 2, 2021.
TITLE I--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN
ELECTIONS
SEC. 101. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN
DISBURSEMENTS AND ACTIVITIES.
Section 319(b) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30121(b)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and by moving such
subparagraphs 2 ems to the right;
(2) by striking ``As used in this section, the term'' and
inserting the following: ``Definitions.--For purposes of this
section--
``(1) Foreign national.--The term'';
(3) by moving paragraphs (1) and (2) two ems to the right
and redesignating them as subparagraphs (A) and (B),
respectively; and
(4) by adding at the end the following new paragraph:
``(2) Contribution and donation.--For purposes of
paragraphs (1) and (2) of subsection (a), the term
`contribution or donation' includes any disbursement to a
political committee which accepts donations or contributions
that do not comply with any of the limitations, prohibitions,
and reporting requirements of this Act (or any disbursement 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 any other person for the purpose of
funding an expenditure, independent expenditure, or
electioneering communication (as defined in section
304(f)(3)).''.
SEC. 102. STUDY AND REPORT ON ILLICIT FOREIGN MONEY IN FEDERAL
ELECTIONS.
(a) Study.--For each 4-year election cycle (beginning with the 4-
year election cycle ending in 2020), the Comptroller General shall
conduct a study on the incidence of illicit foreign money in all
elections for Federal office held during the preceding 4-year election
cycle, including what information is known about the presence of such
money in elections for Federal office.
(b) Report.--
(1) In general.--Not later than the applicable date with
respect to any 4-year election cycle, the Comptroller General
shall submit to the appropriate congressional committees a
report on the study conducted under subsection (a).
(2) Matters included.--The report submitted under paragraph
(1) shall include a description of the extent to which illicit
foreign money was used to target particular groups, including
rural communities, African-American and other minority
communities, and military and veteran communities, based on
such targeting information as is available and accessible to
the Comptroller General.
(3) Applicable date.--For purposes of paragraph (1), the
term ``applicable date'' means--
(A) in the case of the 4-year election cycle ending
in 2020, the date that is 1 year after the date of the
enactment of this Act; and
(B) in the case of any other 4-year election cycle,
the date that is 1 year after the date on which such 4-
year election cycle ends.
(c) Definitions.--As used in this section:
(1) 4-year election cycle.--The term ``4-year election
cycle'' means the 4-year period ending on the date of the
general election for the offices of President and Vice
President.
(2) Illicit foreign money.--The term ``illicit foreign
money'' means any contribution, donation, expenditure, or
disbursement by a foreign national (as defined in section
319(b) of the Federal Election Campaign Act of 1971 (52
U.S.C.30121(b))) prohibited under such section.
(3) Election; federal office.--The terms ``election'' and
``Federal office'' have the meanings given such terms under
section 301 of the Federal Election Campaign Act of 1971 (53
U.S.C. 30101).
(4) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on House Administration of the
House of Representatives;
(B) the Committee on Rules and Administration of
the Senate;
(C) the Committee on the Judiciary of the House of
Representatives; and
(D) the Committee on the Judiciary of the Senate.
(d) Sunset.--This section shall not apply to any 4-year election
cycle beginning after the election for the offices of President and
Vice President in 2032.
SEC. 103. PROHIBITION ON CONTRIBUTIONS AND DONATIONS BY FOREIGN
NATIONALS IN CONNECTION WITH BALLOT INITIATIVES AND
REFERENDA.
(a) In General.--Section 319(b) of the Federal Election Campaign
Act of 1971 (52 U.S.C. 30121(b)), as amended by section 101, is amended
by adding at the end the following new paragraphs:
``(3) Federal, state, or local election.--The term
`Federal, State, or local election' includes a State or local
ballot initiative or referendum, but only in the case of--
``(A) a covered foreign national as defined in
paragraph (4); or
``(B) a foreign principal described in section
1(b)(2) or 1(b)(3) of the Foreign Agent Registration
Act of 1938, as amended (22 U.S.C. 611(b)(2) or (b)(3))
or an agent of such a foreign principal under such Act.
``(4) Covered foreign national.--
``(A) In general.--The term `covered foreign
national' means--
``(i) a foreign principal (as defined in
section 1(b) of the Foreign Agents Registration
Act of 1938 (22 U.S.C. 611(b)) that is a
government of a foreign country or a foreign
political party;
``(ii) any person who acts as an agent,
representative, employee, or servant, or any
person who acts in any other capacity at the
order, request, or under the direction or
control, of a foreign principal described in
clause (i) or of a person any of whose
activities are directly or indirectly
supervised, directed, controlled, financed, or
subsidized in whole or in major part by a
foreign principal described in clause (i); or
``(iii) any person included in the list of
specially designated nationals and blocked
persons maintained by the Office of Foreign
Assets Control of the Department of the
Treasury pursuant to authorities relating to
the imposition of sanctions relating to the
conduct of a foreign principal described in
clause (i).
``(B) Clarification regarding application to
citizens of the united states.--In the case of a
citizen of the United States, clause (ii) of
subparagraph (A) applies only to the extent that the
person involved acts within the scope of that person's
status as the agent of a foreign principal described in
clause (i) of subparagraph (A).''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to elections held in 2024 or any succeeding year.
SEC. 104. DISBURSEMENTS AND ACTIVITIES SUBJECT TO FOREIGN MONEY BAN.
(a) Disbursements Described.--Section 319(a)(1) of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)) is amended--
(1) by striking ``or'' at the end of subparagraph (B); and
(2) by striking subparagraph (C) and inserting the
following:
``(C) an expenditure;
``(D) an independent expenditure;
``(E) a disbursement for an electioneering
communication (within the meaning of section
304(f)(3));
``(F) a disbursement for a communication which is
placed or promoted for a fee on a website, web
application, or digital application that refers to a
clearly identified candidate for election for Federal
office and is disseminated within 60 days before a
general, special or runoff election for the office
sought by the candidate or 30 days before a primary or
preference election, or a convention or caucus of a
political party that has authority to nominate a
candidate for the office sought by the candidate;
``(G) a disbursement by a covered foreign national
(as defined in subsection (b)(4)) for a broadcast,
cable or satellite communication, or for a
communication which is placed or promoted for a fee on
a website, web application, or digital application,
that promotes, supports, attacks or opposes the
election of a clearly identified candidate for Federal,
State, or local office (regardless of whether the
communication contains express advocacy or the
functional equivalent of express advocacy);
``(H) a disbursement for a broadcast, cable, or
satellite communication, or for any communication which
is placed or promoted for a fee on an online platform
(as defined in subsection (b)(5)), that discusses a
national legislative issue of public importance in a
year in which a regularly scheduled general election
for Federal office is held, but only if the
disbursement is made by a covered foreign national (as
defined in subsection (b)(4));
``(I) a disbursement by a covered foreign national
(as defined in subsection (b)(4)) to compensate any
person for internet activity that promotes, supports,
attacks or opposes the election of a clearly identified
candidate for Federal, State, or local office
(regardless of whether the activity contains express
advocacy or the functional equivalent of express
advocacy); or
``(J) a disbursement by a covered foreign national
(as defined in subsection (b)(4)) for a Federal
judicial nomination communication (as defined in
section 324(g)(2));''.
(b) Definition of Online Platform.--Section 319(b) of such Act (52
U.S.C. 30121(b)), as amended by sections 101 and 103, is amended by
adding at the end the following new paragraph:
``(5) Online platform.--
``(A) In general.--For purposes of this section,
subject to subparagraph (B), 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)(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; or
``(ii) is a third-party advertising vendor
that has 50,000,000 or more unique monthly
United States visitors in the aggregate on any
advertisement space that it has sold or bought
for a majority of months during the preceding
12 months, as measured by an independent
digital ratings service accredited by the Media
Ratings Council (or its successor).
``(B) Exemption.--Such term shall not include any
online platform that is a distribution facility of any
broadcasting station or newspaper, magazine, blog,
publication, or periodical.
``(C) Third-party advertising vendor defined.--For
purposes of this subsection, the term `third-party
advertising vendor' includes, but is not limited to,
any third-party advertising vendor network, advertising
agency, advertiser, or third-party advertisement
serving company that buys and sells advertisement space
on behalf of unaffiliated third-party websites, search
engines, digital applications, or social media
sites.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to disbursements made on or after the date of the
enactment of this Act.
SEC. 105. PROHIBITING ESTABLISHMENT OF CORPORATION TO CONCEAL ELECTION
CONTRIBUTIONS AND DONATIONS BY FOREIGN NATIONALS.
(a) Prohibition.--Chapter 29 of title 18, United States Code is
amended by adding at the end the following:
``Sec. 612. Establishment of corporation to conceal election
contributions and donations by foreign nationals
``(a) Offense.--It shall be unlawful for an owner, officer,
attorney, or incorporation agent of a corporation, company, or other
entity to establish or use the corporation, company, or other entity
with the intent to conceal an activity of a foreign national (as
defined in section 319 of the Federal Election Campaign Act of 1971 (52
U.S.C. 30121)) prohibited under such section 319.
``(b) Penalty.--Any person who violates subsection (a) shall be
imprisoned for not more than 5 years, fined under this title, or
both.''.
(b) Table of Sections.--The table of sections for chapter 29 of
title 18, United States Code is amended by adding at the end the
following new item:
``612. Establishment of corporation to conceal election contributions
and donations by foreign nationals.''.
TITLE II--REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS
SEC. 201. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.
(a) In General.--Section 324 of the Federal Election Campaign Act
of 1971 (52 U.S.C. 30126) is amended to read as follows:
``SEC. 324. DISCLOSURE OF CAMPAIGN-RELATED DISBURSEMENTS BY COVERED
ORGANIZATIONS.
``(a) Disclosure Statement.--
``(1) In general.--Any covered organization that makes
campaign-related disbursements aggregating more than $10,000 in
an election reporting cycle shall, not later than 24 hours
after each disclosure date, file a statement with the
Commission made under penalty of perjury that contains the
information described in paragraph (2)--
``(A) in the case of the first statement filed
under this subsection, for the period beginning on the
first day of the election reporting cycle (or, if
earlier, the period beginning one year before the first
such disclosure date) and ending on the first such
disclosure date; and
``(B) in the case of any subsequent statement filed
under this subsection, for the period beginning on the
previous disclosure date and ending on such disclosure
date.
``(2) Information described.--The information described in
this paragraph is as follows:
``(A) The name of the covered organization and the
principal place of business of such organization and,
in the case of a covered organization that is a
corporation (other than a business concern that is an
issuer of a class of securities registered under
section 12 of the Securities Exchange Act of 1934 (15
U.S.C. 78l) or that is required to file reports under
section 15(d) of that Act (15 U.S.C. 78o(d))) or an
entity described in subsection (e)(2), a list of the
beneficial owners (as defined in paragraph (4)(A)) of
the entity that--
``(i) identifies each beneficial owner by
name and current residential or business street
address; and
``(ii) if any beneficial owner exercises
control over the entity through another legal
entity, such as a corporation, partnership,
limited liability company, or trust, identifies
each such other legal entity and each such
beneficial owner who will use that other entity
to exercise control over the entity.
``(B) The amount of each campaign-related
disbursement made by such organization during the
period covered by the statement of more than $1,000,
and the name and address of the person to whom the
disbursement was made.
``(C) In the case of a campaign-related
disbursement that is not a covered transfer, the
election to which the campaign-related disbursement
pertains and if the disbursement is made for a public
communication, the name of any candidate identified in
such communication and if such communication is in
support of or in opposition to the identified
candidate.
``(D) A certification by the chief executive
officer or person who is the head of the covered
organization that the campaign-related disbursement is
not made in cooperation, consultation, or concert with
or at the request or suggestion of a candidate,
authorized committee, or agent of a candidate,
political party, or agent of a political party.
``(E)(i) If the covered organization makes
campaign-related disbursements using exclusively funds
in a campaign-related disbursement segregated fund, for
each payment made to the account by a person other than
the covered organization--
``(I) the name and address of each person
who made such payment to the account during the
period covered by the statement;
``(II) the date and amount of such payment;
and
``(III) the aggregate amount of all such
payments made by the person during the period
beginning on the first day of the election
reporting cycle (or, if earlier, the period
beginning one year before the disclosure date)
and ending on the disclosure date,
but only if such payment was made by a person who made
payments to the account in an aggregate amount of
$10,000 or more during the period beginning on the
first day of the election reporting cycle (or, if
earlier, the period beginning one year before the
disclosure date) and ending on the disclosure date.
``(ii) In any calendar year after 2024, section
315(c)(1)(B) shall apply to the amount described in
clause (i) in the same manner as such section applies
to the limitations established under subsections
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section,
except that for purposes of applying such section to
the amounts described in subsection (b), the `base
period' shall be calendar year 2024.
``(F)(i) If the covered organization makes
campaign-related disbursements using funds other than
funds in a campaign-related disbursement segregated
fund, for each payment to the covered organization--
``(I) the name and address of each person
who made such payment during the period covered
by the statement;
``(II) the date and amount of such payment;
and
``(III) the aggregate amount of all such
payments made by the person during the period
beginning on the first day of the election
reporting cycle (or, if earlier, the period
beginning one year before the disclosure date)
and ending on the disclosure date,
but only if such payment was made by a person who made
payments to the covered organization in an aggregate
amount of $10,000 or more during the period beginning
on the first day of the election reporting cycle (or,
if earlier, the period beginning one year before the
disclosure date) and ending on the disclosure date.
``(ii) In any calendar year after 2024, section
315(c)(1)(B) shall apply to the amount described in
clause (i) in the same manner as such section applies
to the limitations established under subsections
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section,
except that for purposes of applying such section to
the amounts described in subsection (b), the `base
period' shall be calendar year 2024.
``(G) Such other information as required in rules
established by the Commission to promote the purposes
of this section.
``(3) Exceptions.--
``(A) Amounts received in ordinary course of
business.--The requirement to include in a statement
filed under paragraph (1) the information described in
paragraph (2) shall not apply to amounts received by
the covered organization in commercial transactions in
the ordinary course of any trade or business conducted
by the covered organization or in the form of
investments (other than investments by the principal
shareholder in a limited liability corporation) in the
covered organization. For purposes of this
subparagraph, amounts received by a covered
organization as remittances from an employee to the
employee's collective bargaining representative shall
be treated as amounts received in commercial
transactions in the ordinary course of the business
conducted by the covered organization.
``(B) Donor restriction on use of funds.--The
requirement to include in a statement submitted under
paragraph (1) the information described in subparagraph
(F) of paragraph (2) shall not apply if--
``(i) the person described in such
subparagraph prohibited, in writing, the use of
the payment made by such person for campaign-
related disbursements; and
``(ii) the covered organization agreed to
follow the prohibition and deposited the
payment in an account which is segregated from
a campaign-related disbursement segregated fund
and any other account used to make campaign-
related disbursements.
``(C) Threat of harassment or reprisal.--The
requirement to include any information relating to the
name or address of any person (other than a candidate)
in a statement submitted under paragraph (1) shall not
apply if the inclusion of the information would subject
the person to serious threats, harassment, or
reprisals.
``(4) Other definitions.--For purposes of this section:
``(A) Beneficial owner defined.--
``(i) In general.--Except as provided in
clause (ii), the term `beneficial owner' means,
with respect to any entity, a natural person
who, directly or indirectly--
``(I) exercises substantial control
over an entity through ownership,
voting rights, agreement, or otherwise;
or
``(II) has a substantial interest
in or receives substantial economic
benefits from the assets of an entity.
``(ii) Exceptions.--The term `beneficial
owner' shall not include--
``(I) a minor child;
``(II) a person acting as a
nominee, intermediary, custodian, or
agent on behalf of another person;
``(III) a person acting solely as
an employee of an entity and whose
control over or economic benefits from
the entity derives solely from the
employment status of the person;
``(IV) a person whose only interest
in an entity is through a right of
inheritance, unless the person also
meets the requirements of clause (i);
or
``(V) a creditor of an entity,
unless the creditor also meets the
requirements of clause (i).
``(iii) Anti-abuse rule.--The exceptions
under clause (ii) shall not apply if used for
the purpose of evading, circumventing, or
abusing the provisions of clause (i) or
paragraph (2)(A).
``(B) Campaign-related disbursement segregated
fund.--The term `campaign-related disbursement
segregated fund' means a segregated bank account
consisting of funds that were paid directly to such
account by persons other than the covered organization
that controls the account.
``(C) Disclosure date.--The term `disclosure date'
means--
``(i) the first date during any election
reporting cycle by which a person has made
campaign-related disbursements aggregating more
than $10,000; and
``(ii) any other date during such election
reporting cycle by which a person has made
campaign-related disbursements aggregating more
than $10,000 since the most recent disclosure
date for such election reporting cycle.
``(D) Election reporting cycle.--The term `election
reporting cycle' means the 2-year period beginning on
the date of the most recent general election for
Federal office.
``(E) Payment.--The term `payment' includes any
contribution, donation, transfer, payment of dues, or
other payment.
``(b) Coordination With Other Provisions.--
``(1) Other reports filed with the commission.--Information
included in a statement filed under this section may be
excluded from statements and reports filed under section 304.
``(2) Treatment as separate segregated fund.--A campaign-
related disbursement segregated fund may be treated as a
separate segregated fund for purposes of section 527(f)(3) of
the Internal Revenue Code of 1986.
``(c) Filing.--Statements required to be filed under subsection (a)
shall be subject to the requirements of section 304(d) to the same
extent and in the same manner as if such reports had been required
under subsection (c) or (g) of section 304.
``(d) 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:
``(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) An applicable public communication.
``(C) An electioneering communication, as defined
in section 304(f)(3).
``(D) A covered transfer.
``(2) Applicable public communications.--
``(A) In general.--The term `applicable public
communication' means any public communication that
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.
``(B) Exception.--Such term shall not include any
news story, commentary, or editorial distributed
through the facilities of any broadcasting station or
any print, online, or digital newspaper, magazine,
publication, or periodical, unless such facilities are
owned or controlled by any political party, political
committee, or candidate.
``(e) Covered Organization Defined.--In this section, the term
`covered organization' means any of the following:
``(1) A corporation (other than an organization described
in section 501(c)(3) of the Internal Revenue Code of 1986).
``(2) 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).
``(3) 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).
``(4) A labor organization (as defined in section 316(b)).
``(5) 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 paragraph (6)).
``(6) 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.
``(f) Covered Transfer Defined.--
``(1) In general.--In this section, the term `covered
transfer' means any transfer or payment of funds by a covered
organization to another person if the covered organization--
``(A) 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;
``(B) 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;
``(C) 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; or
``(D) 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.
``(2) Exclusions.--The term `covered transfer' does not
include any of the following:
``(A) 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.
``(B) 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 a campaign-related disbursement
segregated fund and any other account used to
make campaign-related disbursements.
``(3) Special rule regarding transfers among affiliates.--
``(A) Special rule.--A transfer of an amount by one
covered organization to another covered organization
which is treated as a transfer between affiliates under
subparagraph (C) 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.
``(B) Determination of amount of certain payments
among affiliates.--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 covered organization.
``(C) 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.
``(D) Determination of affiliate status.--For
purposes of subparagraph (C), 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.
``(E) Coverage of transfers to affiliated section
501(c)(3) organizations.--This paragraph 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 paragraph applies to an
amount transferred by a covered organization to another
covered organization.
``(g) No Effect on Other Reporting Requirements.--Except as
provided in subsection (b)(1), nothing in this section shall be
construed to waive or otherwise affect any other requirement of this
Act which relates to the reporting of campaign-related
disbursements.''.
(b) Conforming Amendment.--Section 304(f)(6) of such Act (52 U.S.C.
30104) is amended by striking ``Any requirement'' and inserting
``Except as provided in section 324(b), any requirement''.
(c) Regulations.--Not later than 6 months after the date of the
enactment of this Act, the Federal Election Commission shall promulgate
regulations relating the application of the exemption under section
324(a)(3)(C) of the Federal Election Campaign Act of 1971 (as added by
subsection (a)). Such regulations--
(1) shall require that the legal burden of establishing
eligibility for such exemption is upon the organization
required to make the report required under section 324(a)(1) of
such Act (as added by subsection (a)), and
(2) shall be consistent with the principles applied in
Citizens United v. Federal Election Commission, 558 U.S. 310
(2010).
SEC. 202. REPORTING OF FEDERAL JUDICIAL NOMINATION DISBURSEMENTS.
(a) Findings.--Congress makes the following findings:
(1) A fair and impartial judiciary is critical for our
democracy and crucial to maintain the faith of the people of
the United States in the justice system. As the Supreme Court
held in Caperton v. Massey, ``there is a serious risk of actual
bias--based on objective and reasonable perceptions--when a
person with a personal stake in a particular case had a
significant and disproportionate influence in placing the judge
on the case.''(Caperton v. A. T. Massey Coal Co., 556 U.S. 868,
884 (2009)).
(2) Public trust in government is at a historic low.
According to polling, most Americans believe that corporations
have too much power and influence in politics and the courts.
(3) The prevalence and pervasiveness of dark money drives
public concern about corruption in politics and the courts.
Dark money is funding for organizations and political
activities that cannot be traced to actual donors. It is made
possible by loopholes in our tax laws and regulations, weak
oversight by the Internal Revenue Service, and donor-friendly
court decisions.
(4) Under current law, ``social welfare'' organizations and
business leagues can use funds to influence elections so long
as political activity is not their ``primary'' activity. Super
PACs can accept and spend unlimited contributions from any non-
foreign source. These groups can spend tens of millions of
dollars on political activities. Such dark money groups spent
an estimated $1,050,000,000 in the 2020 election cycle.
(5) Dark money is used to shape judicial decision making.
This can take many forms, akin to agency capture: influencing
judicial selection by controlling who gets nominated and
funding candidate advertisements; creating public relations
campaigns aimed at mobilizing the judiciary around particular
issues; and drafting law review articles, amicus briefs, and
other products which tell judges how to decide a given case and
provide ready-made arguments for willing judges to adopt.
(6) Over the past decade, nonprofit organizations that do
not disclose their donors have spent hundreds of millions of
dollars to influence the nomination and confirmation process
for Federal judges. One organization alone has spent nearly
$40,000,000 on advertisements supporting or opposing Supreme
Court nominees since 2016.
(7) Anonymous money spent on judicial nominations is not
subject to any disclosure requirements. Federal election laws
only regulate contributions and expenditures relating to
electoral politics; thus, expenditures, contributions, and
advocacy efforts for Federal judgeships are not covered under
the Federal Election Campaign Act of 1971. Without more
disclosure, the public has no way of knowing whether the people
spending money supporting or opposing judicial nominations have
business before the courts.
(8) Congress and the American people have a compelling
interest in knowing who is funding these campaigns to select
and confirm judges to lifetime appointments on the Federal
bench.
(b) Reporting.--Section 324 of the Federal Election Campaign Act of
1971 (52 U.S.C. 30126), as amended by section 201, is amended by
redesignating subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Application to Federal Judicial Nominations.--
``(1) In general.--For purposes of this section--
``(A) a disbursement by a covered organization for
a Federal judicial nomination communication shall be
treated as a campaign-related disbursement; and
``(B) in the case of campaign-related disbursements
which are for Federal judicial nomination
communications--
``(i) the dollar amounts in paragraphs (1)
and (2) of subsection (a) shall be applied
separately with respect to such disbursements
and other campaign-related disbursements;
``(ii) the election reporting cycle shall
be the calendar year in which the disbursement
for the Federal judicial nomination
communication is made;
``(iii) references to a candidate in
subsections (a)(2)(C), (a)(2)(D), and (a)(3)(C)
shall be treated as references to a nominee for
a Federal judge or justice;
``(iv) the reference to an election in
subsection (a)(2)(C) shall be treated as a
reference to the nomination of such nominee.
``(2) Federal judicial nomination communication.--
``(A) In general.--The term `Federal judicial
nomination communication' means any communication--
``(i) that is by means of any broadcast,
cable, or satellite, paid internet, or paid
digital communication, paid promotion,
newspaper, magazine, outdoor advertising
facility, mass mailing, telephone bank,
telephone messaging effort of more than 500
substantially similar calls or electronic
messages within a 30-day period, or any other
form of general public political advertising;
and
``(ii) which promotes, supports, attacks,
or opposes the nomination or Senate
confirmation of an individual as a Federal
judge or justice.
``(B) Exception.--Such term shall not include any
news story, commentary, or editorial distributed
through the facilities of any broadcasting station or
any print, online, or digital newspaper, magazine,
publication, or periodical, unless such facilities are
owned or controlled by any political party, political
committee, or candidate.
``(C) Intent not required.--A disbursement for an
item described in subparagraph (A) shall be treated as
a disbursement for a Federal judicial nomination
communication regardless of the intent of the person
making the disbursement.''.
SEC. 203. COORDINATION WITH FINCEN.
(a) In General.--The Director of the Financial Crimes Enforcement
Network of the Department of the Treasury shall provide the Federal
Election Commission with such information as necessary to assist in
administering and enforcing section 324 of the Federal Election
Campaign Act of 1971, as amended by this title.
(b) Report.--Not later than 6 months after the date of the
enactment of this Act, the Chairman of the Federal Election Commission,
in consultation with the Director of the Financial Crimes Enforcement
Network of the Department of the Treasury, shall submit to Congress a
report with recommendations for providing further legislative authority
to assist in the administration and enforcement of such section 324.
SEC. 204. APPLICATION OF FOREIGN MONEY BAN TO DISBURSEMENTS FOR
CAMPAIGN-RELATED DISBURSEMENTS CONSISTING OF COVERED
TRANSFERS.
Section 319(b)(2) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30121(a)(1)(A)), as amended by section 101, is amended--
(1) by striking ``includes any disbursement'' and inserting
``includes--
``(A) any disbursement'';
(2) by striking the period at the end and inserting ``;
and'', and
(3) by adding at the end the following new subparagraph:
``(B) any disbursement, other than a disbursement
described in section 324(a)(3)(A), to another person
who made a campaign-related disbursement consisting of
a covered transfer (as described in section 324) during
the 2-year period ending on the date of the
disbursement.''.
SEC. 205. SENSE OF CONGRESS REGARDING IMPLEMENTATION.
It is the sense of Congress that the Federal Election Commission
should simplify the process for filing any disclosure required under
the provisions of, and amendments made by, this title in order to
ensure that such process is as easy and accessible as possible.
SEC. 206. EFFECTIVE DATE.
The amendments made by this title shall apply with respect to
disbursements made on or after January 1, 2024, and shall take effect
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
TITLE III--OTHER ADMINISTRATIVE REFORMS
SEC. 301. PETITION FOR CERTIORARI.
Section 307(a)(6) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30107(a)(6)) is amended by inserting ``(including a proceeding
before the Supreme Court on certiorari)'' after ``appeal''.
SEC. 302. JUDICIAL REVIEW OF ACTIONS RELATED TO CAMPAIGN FINANCE LAWS.
(a) In General.--Title IV of the Federal Election Campaign Act of
1971 (52 U.S.C. 30141 et seq.) is amended by inserting after section
406 the following new section:
``SEC. 407. JUDICIAL REVIEW.
``(a) In General.--If any action is brought for declaratory or
injunctive relief to challenge, whether facially or as-applied, the
constitutionality or lawfulness of any provision of this Act, including
title V, or of chapter 95 or 96 of the Internal Revenue Code of 1986,
or is brought to with respect to any action of the Commission under
chapter 95 or 96 of the Internal Revenue Code of 1986, the following
rules shall apply:
``(1) The action shall be filed in the United States
District Court for the District of Columbia and an appeal from
the decision of the district court may be taken to the Court of
Appeals for the District of Columbia Circuit.
``(2) In the case of an action relating to declaratory or
injunctive relief to challenge the constitutionality of a
provision, the party filing the action shall concurrently
deliver a copy of the complaint to the Clerk of the House of
Representatives and the Secretary of the Senate.
``(3) It shall be the duty of the United States District
Court for the District of Columbia and the Court of Appeals for
the District of Columbia Circuit to advance on the docket and
to expedite to the greatest possible extent the disposition of
the action and appeal.
``(b) Clarifying Scope of Jurisdiction.--If an action at the time
of its commencement is not subject to subsection (a), but an amendment,
counterclaim, cross-claim, affirmative defense, or any other pleading
or motion is filed challenging, whether facially or as-applied, the
constitutionality or lawfulness of this Act or of chapter 95 or 96 of
the Internal Revenue Code of 1986, or is brought to with respect to any
action of the Commission under chapter 95 or 96 of the Internal Revenue
Code of 1986, the district court shall transfer the action to the
District Court for the District of Columbia, and the action shall
thereafter be conducted pursuant to subsection (a).
``(c) Intervention by Members of Congress.--In any action described
in subsection (a) relating to declaratory or injunctive relief to
challenge the constitutionality of a provision, any Member of the House
of Representatives (including a Delegate or Resident Commissioner to
the Congress) or Senate shall have the right to intervene either in
support of or opposition to the position of a party to the case
regarding the constitutionality of the provision. To avoid duplication
of efforts and reduce the burdens placed on the parties to the action,
the court in any such action may make such orders as it considers
necessary, including orders to require interveners taking similar
positions to file joint papers or to be represented by a single
attorney at oral argument.
``(d) Challenge by Members of Congress.--Any Member of Congress may
bring an action, subject to the special rules described in subsection
(a), for declaratory or injunctive relief to challenge, whether
facially or as-applied, the constitutionality of any provision of this
Act or chapter 95 or 96 of the Internal Revenue Code of 1986.''.
(b) Conforming Amendments.--
(1) Section 9011 of the Internal Revenue Code of 1986 is
amended to read as follows:
``SEC. 9011. JUDICIAL REVIEW.
``For provisions relating to judicial review of certifications,
determinations, and actions by the Commission under this chapter, see
section 407 of the Federal Election Campaign Act of 1971.''.
(2) Section 9041 of the Internal Revenue Code of 1986 is
amended to read as follows:
``SEC. 9041. JUDICIAL REVIEW.
``For provisions relating to judicial review of actions by the
Commission under this chapter, see section 407 of the Federal Election
Campaign Act of 1971.''.
(3) Section 310 of the Federal Election Campaign Act of
1971 (52 U.S.C. 30110) is repealed.
(4) Section 403 of the Bipartisan Campaign Reform Act of
2002 (52 U.S.C. 30110 note) is repealed.
SEC. 303. EFFECTIVE DATE.
The amendments made by this title shall take effect and apply on
the date of the enactment of this Act, without regard to whether or not
the Federal Election Commission has promulgated regulations to carry
out this title and the amendments made by this title.
TITLE IV--STAND BY EVERY AD
SEC. 401. SHORT TITLE.
This title may be cited as the ``Stand By Every Ad Act''.
SEC. 402. 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) is amended by adding at the end the following new subsection:
``(e) 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 section 324--
``(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 section 324--
``(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) 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.
``(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 section 324), a
list of the 5 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 2 or more people
provided the fifth largest of such payments, the person
paying for the communication shall select 1 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 section 324), 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 2
or more persons provided the second largest of such
payments, the person paying for the communication shall
select 1 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
a campaign-related disbursement segregated fund
(as defined in section 324) and any other
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) Application of Expanded Requirements to Public Communications
Consisting of Campaign-Related Disbursements.--
(1) In general.--Section 318(a) of such Act (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 section 324, consisting of
a public communication''.
(2) Clarification of exemption from inclusion of candidate
disclaimer statement in federal judicial nomination
communications.--Section 318(a)(3) of such Act (52 U.S.C.
30120(a)(3)) is amended by striking ``shall clearly state'' and
inserting ``shall (except in the case of a Federal judicial
nomination communication, as defined in section 324(d)(3))
clearly state''.
(c) 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 section 324) 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
a campaign-related disbursement segregated fund
(as defined in section 324) and any other
account used to make campaign-related
disbursements.''.
(d) Modification of Additional Requirements for Certain
Communications.--Section 318(d) of the Federal Election Campaign Act of
1971 (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. 403. 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)) is amended by
striking ``mailing'' each place it appears and inserting
``mailing, telephone call consisting in substantial part of a
prerecorded audio message''.
(2) Application to communications subject to expanded
disclaimer requirements.--Section 318(e)(1) of such Act (52
U.S.C. 30120(e)(1)), as added by section 302(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(e)(3) of such Act (52 U.S.C.
30120(e)(3)), as added by section 302(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. 404. NO EXPANSION OF PERSONS SUBJECT TO DISCLAIMER REQUIREMENTS ON
INTERNET COMMUNICATIONS.
Nothing in this title or the amendments made by this title may be
construed to require any person who is not required under section 318
of the Federal Election Campaign Act of 1971 to include a disclaimer on
communications made by the person through the internet to include any
disclaimer on any such communications.
SEC. 405. EFFECTIVE DATE.
The amendments made by this title shall apply with respect to
communications made on or after January 1, 2024, and shall take effect
without regard to whether or not the Federal Election Commission has
promulgated regulations to carry out such amendments.
TITLE V--SEVERABILITY
SEC. 501. 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 Senate
Read twice and referred to the Committee on Rules and Administration.
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