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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9392 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9392

    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

                            August 20, 2024

 Ms. Porter (for herself, Mr. Robert Garcia of California, and Mr. Kim 
of New Jersey) 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, 2025.

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, 2025.
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