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[DOCID: f:hr492p1.111]
From the House Reports Online via GPO Access
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111th Congress                                            Rept. 111-492
                        HOUSE OF REPRESENTATIVES
2d Session                                                      Part 1
======================================================================
 
                              DISCLOSE ACT

                                _______
                                

  May 25, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Pennsylvania, from the Committee on House Administration, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 5175]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on House Administration, to whom was referred 
the bill (H.R. 5175) to amend the Federal Election Campaign Act 
of 1971 to prohibit foreign influence in Federal elections, to 
prohibit government contractors from making expenditures with 
respect to such elections, and to establish additional 
disclosure requirements with respect to spending in such 
elections, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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'' or the 
``DISCLOSE Act''.
  (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--REGULATION OF CERTAIN POLITICAL SPENDING

Sec. 101. Prohibiting independent expenditures and electioneering 
communications by government contractors.
Sec. 102. Application of ban on contributions and expenditures by 
foreign nationals to foreign-controlled domestic corporations.
Sec. 103. Treatment of payments for coordinated communications as 
contributions.
Sec. 104. Treatment of political party communications made on behalf of 
candidates.
Sec. 105. Restriction on internet communications treated as public 
communications.

 TITLE II--PROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGN-RELATED ACTIVITY

 Subtitle A--Treatment of Independent Expenditures and Electioneering 
                   Communications Made by All Persons

Sec. 201. Independent expenditures.
Sec. 202. Electioneering communications.
Sec. 203. Mandatory electronic filing by persons making independent 
expenditures or electioneering communications exceeding $10,000 at any 
time.

     Subtitle B--Expanded Requirements for Corporations and Other 
                             Organizations

Sec. 211. Additional information required to be included in reports on 
disbursements by covered organizations.
Sec. 212. Rules regarding use of general treasury funds by covered 
organizations for campaign-related activity.
Sec. 213. Optional use of separate account by covered organizations for 
campaign-related activity.
Sec. 214. Modification of rules relating to disclaimer statements 
required for certain communications.

      Subtitle C--Reporting Requirements for Registered Lobbyists

Sec. 221. Requiring registered lobbyists to report information on 
independent expenditures and electioneering communications.

   TITLE III--DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION ON 
                       CAMPAIGN-RELATED ACTIVITY

Sec. 301. Requiring disclosure by covered organizations of information 
on campaign-related activity.

                       TITLE IV--OTHER PROVISIONS

Sec. 401. Judicial review.
Sec. 402. Severability.
Sec. 403. Effective date.

SEC. 2. FINDINGS.

  (a) General Findings.--Congress finds and declares as follows:
          (1) Throughout the history of the United States, the American 
        people have been rightly concerned about the power of special 
        interests to control our democratic processes. That was true 
        over 100 years ago when Congress first enacted legislation 
        intended to restrict corporate funds from being used in Federal 
        elections, legislation that Congress amended in 1947 to 
        expressly include independent expenditures. The Supreme Court 
        held such legislation to be constitutional in 1990 in Austin v. 
        Michigan Chamber of Commerce (494 U.S. 652) and again in 2003 
        in McConnell v. F.E.C. (540 U.S. 93).
          (2) The Supreme Court's decision in Citizens United v. 
        Federal Election Commission on January 21, 2010, invalidated 
        legislation restricting the ability of corporations and labor 
        unions to spend funds from their general treasury accounts to 
        influence the outcome of elections.
  (b) Findings Relating to Government Contractors.--Congress finds and 
declares as follows:
          (1) Government contracting is an activity that is 
        particularly susceptible to improper influence, and to the 
        appearance of improper influence. Government contracts must be 
        awarded based on an objective evaluation of how well bidders or 
        potential contractors meet relevant statutory criteria.
          (2) Independent expenditures and electioneering 
        communications that benefit particular candidates or elected 
        officials or disfavor their opponents can lead to apparent and 
        actual ingratiation, access, influence, and quid pro quo 
        arrangements. Government contracts should be awarded based on 
        an objective application of statutory criteria, not based on 
        other forms of inappropriate or corrupting influence.
          (3) Prohibiting independent expenditures and electioneering 
        communications by persons negotiating for or performing 
        government contracts will prevent government officials involved 
        in or with influence over the contracting process from 
        influencing the contracting process based, consciously or 
        otherwise, on this kind of inappropriate or corrupting 
        influence.
          (4) Prohibiting independent expenditures and electioneering 
        communications by persons negotiating for or performing 
        government contracts will likewise prevent such persons from 
        feeling pressure, whether actually exerted by government 
        officials or not, to make expenditures and to fund 
        communications in order to maximize their chances of receiving 
        contracts, or to match similar expenditures and communications 
        made by their competitors.
          (5) Furthermore, because government contracts often involve 
        large amounts of public money, it is critical that the public 
        perceive that the government contracts are awarded strictly in 
        accordance with prescribed statutory standards, and not based 
        on other forms of inappropriate or corrupting influence. The 
        public's confidence in government is undermined when 
        corporations that make significant expenditures during Federal 
        election campaigns later receive government funds.
          (6) Prohibiting independent expenditures and electioneering 
        communications by persons negotiating for or performing 
        government contracts will prevent any appearance that 
        government contracts were awarded based in whole or in part on 
        such expenditures or communications, or based on the 
        inappropriate or corrupting influence such expenditures and 
        communications can create and appear to create.
          (7) In these ways, prohibiting independent expenditures and 
        electioneering communications by persons negotiating for or 
        performing government contracts will protect the actual and 
        perceived integrity of the government contracting process.
          (8) Moreover, the risks of waste, fraud and abuse, all 
        resulting in economic losses to taxpayers, are significant when 
        would-be public contractors or applicants for public funds make 
        expenditures in Federal election campaigns in order to affect 
        electoral outcomes.
  (c) Findings Relating to Foreign Corporations.--Congress finds and 
declares as follows:
          (1) The Supreme Court's decision in the Citizens United case 
        has provided the means by which United States corporations 
        controlled by foreign entities can freely spend money to 
        influence United States elections.
          (2) Foreign corporations commonly own U.S. corporations in 
        whole or in part, and U.S. corporate equity and debt are also 
        held by foreign individuals, sovereign wealth funds, and even 
        foreign nations at levels which permit effective control over 
        those U.S. entities.
          (3) As recognized in many areas of the law, foreign ownership 
        interests and influences are exerted in a perceptible way even 
        when the entity is not majority-foreign-owned.
          (4) The Federal Government has broad constitutional power to 
        protect American interests and sovereignty from foreign 
        interference and intrusion.
          (5) Congress has a clear interest in minimizing foreign 
        intervention, and the perception of foreign intervention, in 
        United States elections.
  (d) Findings Relating to Coordinated Expenditures.--Congress finds 
and declares as follows:
          (1) It has been the consistent view of Congress and the 
        courts that coordinated expenditures in campaigns for election 
        are no different in nature from contributions.
          (2) Existing rules still allow donors to evade contribution 
        limits by making campaign expenditures which, while technically 
        qualifying as independent expenditures under law, are for all 
        relevant purposes coordinated with candidates and political 
        parties and thus raise the potential for corruption or the 
        appearance of corruption.
          (3) Such arrangements have the potential to give rise to the 
        reality or appearance of corruption to the same degree that 
        direct contributions to a candidate may give rise to the 
        reality or appearance of corruption. Moreover, expenditures 
        which are in fact made in coordination with a candidate or 
        political party have the potential to lessen the public's trust 
        and faith in the rules and the integrity of the electoral 
        process.
          (4) The government therefore has a compelling interest in 
        making sure that expenditures that are de facto coordinated 
        with a candidate are treated as such to prevent corruption, the 
        appearance of corruption, or the perception that some 
        participants are circumventing the laws and regulations which 
        govern the financing of election campaigns.
  (e) Findings Relating to Disclosures and Disclaimers.--Congress finds 
and declares as follows:
          (1) The American people have a compelling interest in knowing 
        who is funding independent expenditures and electioneering 
        communications to influence Federal elections, and the 
        government has a compelling interest in providing the public 
        with that information. Effective disclaimers and prompt 
        disclosure of expenditures, and the disclosure of the funding 
        sources for these expenditures, can provide shareholders, 
        voters, and citizens with the information needed to evaluate 
        the actions by special interests seeking influence over the 
        democratic process. Transparency promotes accountability, 
        increases the fund of information available to the public 
        concerning the support given to candidates by special 
        interests, sheds the light of publicity on political spending, 
        and encourages the leaders of organizations to act only upon 
        legitimate organizational purposes.
          (2) Protecting this compelling interest has become 
        particularly important to address the anticipated increase in 
        special interest spending on election-related communications 
        which will result from the Supreme Court's decision in the 
        Citizens United case. The current disclosure and disclaimer 
        requirements were designed for a campaign finance system in 
        which such expenditures were subject to prohibitions that no 
        longer apply.
          (3) More rigorous disclosure and disclaimer requirements are 
        necessary to protect against the evasion of current rules. 
        Organizations that engage in election-related communications 
        have used a variety of methods to attempt to obscure their 
        sponsorship of communications from the general public. Robust 
        disclosure and disclaimer requirements are necessary to ensure 
        that the electorate is informed about who is paying for 
        particular election-related communications, and so that the 
        shareholders and members of these organizations are aware of 
        their organizations' election-related spending.
          (4) The current lack of accountability and transparency allow 
        special interest political spending to serve as a private 
        benefit for the officials of special interest organizations, to 
        the detriment of the organizations and their shareholders and 
        members.
          (5) Various factors, including the advent of the Internet, 
        where particular communications can be circulated and remain 
        available for viewing long after they are first broadcast, and 
        the frequency of political campaigns that effectively begin 
        long before election day, have also rendered the existing 
        system of disclosure and disclaimer requirements (including the 
        limited time periods during which some of those requirements 
        currently apply) inadequate to protect fully the government's 
        interest in ensuring that the electorate is fully informed 
        about the sources of election-related spending, and that 
        shareholders and citizens alike have the information they need 
        to hold corporations and elected officials accountable for 
        their positions and supporters.
          (6) To serve the interests of accountability and 
        transparency, it is also important that information about who 
        is funding independent expenditures and electioneering 
        communications be presented to the electorate in a manner that 
        is readily accessible and that can be quickly and easily 
        understood.
  (f) Findings Relating to Campaign Spending by Lobbyists.--Congress 
finds and declares as follows:
          (1) Lobbyists and lobbying organizations, and through them, 
        their clients, influence the public decision-making process in 
        a variety of ways.
          (2) In recent years, scandals involving undue lobbyist 
        influence have lowered public trust in government and 
        jeopardized the willingness of voters to take part in 
        democratic governance.
          (3) One way in which lobbyists may unduly influence Federal 
        officials is through their or their clients making independent 
        expenditures or electioneering communications targeting elected 
        officials.
          (4) Disclosure of such independent expenditures and 
        electioneering communications will allow the public to examine 
        connections between such spending and official actions, and 
        will therefore limit the ability of lobbyists to exert an undue 
        influence on elected officials.

           TITLE I--REGULATION OF CERTAIN POLITICAL SPENDING

SEC. 101. PROHIBITING INDEPENDENT EXPENDITURES AND ELECTIONEERING 
                    COMMUNICATIONS BY GOVERNMENT CONTRACTORS.

  (a) Prohibition Applicable to Government Contractors.--
          (1) Prohibition.--
                  (A) In general.--Section 317(a)(1) of the Federal 
                Election Campaign Act (2 U.S.C. 441c(a)(1)) is amended 
                by striking ``purpose or use; or'' and inserting the 
                following: ``purpose or use, to make any independent 
                expenditure, or to disburse any funds for an 
                electioneering communication; or''.
                  (B) Conforming amendment.--The heading of section 317 
                of such Act (2 U.S.C. 441c) is amended by striking 
                ``contributions'' and inserting ``contributions, 
                independent expenditures, and electioneering 
                communications''.
          (2) Threshold for application of ban.--Section 317 of such 
        Act (2 U.S.C. 441c) is amended--
                  (A) by redesignating subsections (b) and (c) as 
                subsections (c) and (d); and
                  (B) by inserting after subsection (a) the following 
                new subsection:
  ``(b) To the extent that subsection (a)(1) prohibits a person who 
enters into a contract described in such subsection from making any 
independent expenditure or disbursing funds for an electioneering 
communication, such subsection shall apply only if the value of the 
contract is equal to or greater than $7,000,000.''.
  (b) Application to Recipients of Assistance Under Troubled Asset 
Program.--Section 317(a) of such Act (2 U.S.C. 441c(a)) is amended--
          (1) by striking ``or'' at the end of paragraph (1);
          (2) by redesignating paragraph (2) as paragraph (3); and
          (3) by inserting after paragraph (1) the following new 
        paragraph:
          ``(2) who enters into negotiations for financial assistance 
        under title I of the Emergency Economic Stabilization Act of 
        2008 (12 U.S.C. 5211 et seq.) (relating to the purchase of 
        troubled assets by the Secretary of the Treasury), during the 
        period--
                  ``(A) beginning on the later of the commencement of 
                the negotiations or the date of the enactment of the 
                Democracy is Strengthened by Casting Light on Spending 
                in Elections Act; and
                  ``(B) ending with the later of the termination of 
                such negotiations or the repayment of such financial 
                assistance;
        directly or indirectly to make any contribution of money or 
        other things of value, or to promise expressly or impliedly to 
        make any such contribution to any political party, committee, 
        or candidate for public office or to any person for any 
        political purpose or use, to make any independent expenditure, 
        or to disburse any funds for an electioneering communication; 
        or''.
  (c) Technical Amendment.--Section 317 of such Act (2 U.S.C. 441c) is 
amended by striking ``section 321'' each place it appears and inserting 
``section 316''.

SEC. 102. APPLICATION OF BAN ON CONTRIBUTIONS AND EXPENDITURES BY 
                    FOREIGN NATIONALS TO FOREIGN-CONTROLLED DOMESTIC 
                    CORPORATIONS.

  (a) Application of Ban.--Section 319(b) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441e(b)) is amended--
          (1) by striking ``or'' at the end of paragraph (1);
          (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
          (3) by adding at the end the following new paragraph:
          ``(3) any corporation which is not a foreign national 
        described in paragraph (1) and--
                  ``(A) in which a foreign national described in 
                paragraph (1) or (2) directly or indirectly owns 20 
                percent or more of the voting shares;
                  ``(B) with respect to which the majority of the 
                members of the board of directors are foreign nationals 
                described in paragraph (1) or (2);
                  ``(C) over which one or more foreign nationals 
                described in paragraph (1) or (2) has the power to 
                direct, dictate, or control the decision-making process 
                of the corporation with respect to its interests in the 
                United States; or
                  ``(D) over which one or more foreign nationals 
                described in paragraph (1) or (2) has the power to 
                direct, dictate, or control the decision-making process 
                of the corporation with respect to activities in 
                connection with a Federal, State, or local election, 
                including--
                          ``(i) the making of a contribution, donation, 
                        expenditure, independent expenditure, or 
                        disbursement for an electioneering 
                        communication (within the meaning of section 
                        304(f)(3)); or
                          ``(ii) the administration of a political 
                        committee established or maintained by the 
                        corporation.''.
  (b) Certification of Compliance.--Section 319 of such Act (2 U.S.C. 
441e) is amended by adding at the end the following new subsection:
  ``(c) Certification of Compliance Required Prior to Carrying Out 
Activity.--Prior to the making in connection with an election for 
Federal office of any contribution, donation, expenditure, independent 
expenditure, or disbursement for an electioneering communication by a 
corporation during a year, 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), shall file a 
certification with the Commission, under penalty of perjury, that the 
corporation is not prohibited from carrying out such activity under 
subsection (b)(3), unless the chief executive officer has previously 
filed such a certification during the year. Nothing in this subsection 
shall be construed to apply to any contribution, donation, expenditure, 
independent expenditure, or disbursement from a separate segregated 
fund established and administered by a corporation under section 
316(b)(2)(C).''.
  (c) No Effect on Separate Segregated Funds of Domestic 
Corporations.--Section 319 of such Act (2 U.S.C. 441e), as amended by 
subsection (b), is further amended by adding at the end the following 
new subsection:
  ``(d) No Effect on Separate Segregate Funds of Domestic 
Corporations.--Nothing in this section shall be construed to prohibit 
any corporation which is not a foreign national described in paragraph 
(1) of subsection (b) from establishing, administering, and soliciting 
contributions to a separate segregated fund under section 316(b)(2)(C), 
so long as none of the amounts in the fund are provided by any foreign 
national described in paragraph (1) or (2) of subsection (b) and no 
foreign national described in paragraph (1) or (2) of subsection (b) 
has the power to direct, dictate, or control the establishment or 
administration of the fund.''.
  (d) No Effect on Other Laws.--Section 319 of such Act (2 U.S.C. 
441e), as amended by subsections (b) and (c), is further amended by 
adding at the end the following new subsection:
  ``(e) No Effect on Other Laws.--Nothing in this section shall be 
construed to affect the determination of whether a corporation is 
treated as a foreign national for purposes of any law other than this 
Act.''.

SEC. 103. TREATMENT OF PAYMENTS FOR COORDINATED COMMUNICATIONS AS 
                    CONTRIBUTIONS.

  (a) In General.--Section 301(8)(A) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(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 (other than a 
                candidate, an authorized committee of a candidate, or a 
                political committee of a political party) for a 
                coordinated communication (as determined under section 
                324).''.
  (b) Coordinated Communications Described.--Section 324 of such Act (2 
U.S.C. 441k) is amended to read as follows:

``SEC. 324. COORDINATED COMMUNICATIONS.

  ``(a) Coordinated Communications Defined.--For purposes of this Act, 
the term `coordinated communication' means--
          ``(1) a covered communication which, subject to subsection 
        (c), 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; or
          ``(2) any communication that republishes, disseminates, or 
        distributes, in whole or in part, any broadcast or any written, 
        graphic, or other form of campaign material prepared by a 
        candidate, an authorized committee of a candidate, or their 
        agents.
  ``(b) Covered Communication Defined.--
          ``(1) In general.--Except as provided in paragraph (4), for 
        purposes of this subsection, the term `covered communication' 
        means, for purposes of the applicable election period described 
        in paragraph (2), a public communication (as defined in section 
        301(22)) that refers to a clearly identified candidate for 
        Federal office and is publicly distributed or publicly 
        disseminated during such period.
          ``(2) Applicable election period.--For purposes of paragraph 
        (1), the `applicable election period' with respect to a 
        communication means--
                  ``(A) in the case of a communication which refers to 
                a candidate for the office of President or Vice 
                President, the period--
                          ``(i) beginning with the date that is 120 
                        days before the date of the first primary 
                        election, preference election, or nominating 
                        convention for nomination for the office of 
                        President which is held in any State; and
                          ``(ii) ending with the date of the general 
                        election for such office; or
                  ``(B) in the case of a communication which refers to 
                a candidate for any other Federal office, the period--
                          ``(i) beginning with the date that is 90 days 
                        before the earliest of the primary election, 
                        preference election, or nominating convention 
                        with respect to the nomination for the office 
                        that the candidate is seeking; and
                          ``(ii) ending with the date of the general 
                        election for such office.
          ``(3) Special rule for public distribution of communications 
        involving congressional candidates.--For purposes of paragraph 
        (1), in the case of a communication involving a candidate for 
        an office other than President or Vice President, the 
        communication shall be considered to be publicly distributed or 
        publicly disseminated only if the dissemination or distribution 
        occurs in the jurisdiction of the office that the candidate is 
        seeking.
          ``(4) Exception.--The term `covered communication' does not 
        include--
                  ``(A) a communication appearing 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) a communication which constitutes a candidate 
                debate or forum conducted pursuant to the regulations 
                adopted by the Commission to carry out section 
                304(f)(3)(B)(iii), or which solely promotes such a 
                debate or forum and is made by or on behalf of the 
                person sponsoring the debate or forum.
  ``(c) No Finding of Coordination Based Solely on Sharing of 
Information Regarding Legislative or Policy Position.--For purposes of 
subsection (a)(1), a covered communication may not be considered to be 
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 solely on the grounds 
that a person provided information to the candidate or committee 
regarding that person's position on a legislative or policy matter 
(including urging the candidate or party to adopt that person's 
position), so long as there is no discussion between the person and the 
candidate or committee regarding the candidate's campaign for election 
for Federal office.
  ``(d) Preservation of Certain Safe Harbors and Firewalls.--Nothing in 
this section may be construed to affect 11 CFR 109.21(g) or (h), as in 
effect on the date of the enactment of the Democracy is Strengthened by 
Casting Light on Spending in Elections Act.
  ``(e) Treatment of Coordination With Political Parties for 
Communications Referring to Candidates.--For purposes of this section, 
if a communication which refers to any clearly identified candidate or 
candidates of a political party or any opponent of such a candidate or 
candidates is determined to have been made in cooperation, 
consultation, or concert with or at the request or suggestion of a 
political committee of the political party but not in cooperation, 
consultation, or concert with or at the request or suggestion of such 
clearly identified candidate or candidates, the communication shall be 
treated as having been made in cooperation, consultation, or concert 
with or at the request or suggestion of the political committee of the 
political party but not with or at the request or suggestion of such 
clearly identified candidate or candidates.''.
  (c) Effective Date.--
          (1) In general.--This section and the amendments made by this 
        section shall apply with respect to payments made on or after 
        the expiration of the 30-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 to 
        carry out such amendments.
          (2) Transition rule for actions taken prior to enactment.--No 
        person shall be considered to have made a payment for a 
        coordinated communication under section 324 of the Federal 
        Election Campaign Act of 1971 (as amended by subsection (b)) by 
        reason of any action taken by the person prior to the date of 
        the enactment of this Act. Nothing in the previous sentence 
        shall be construed to affect any determination under any other 
        provision of such Act which is in effect on the date of the 
        enactment of this Act regarding whether a communication 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.

SEC. 104. TREATMENT OF POLITICAL PARTY COMMUNICATIONS MADE ON BEHALF OF 
                    CANDIDATES.

  (a) Treatment of Payment for Public Communication as Contribution if 
Made Under Control or Direction of Candidate.--Section 301(8)(A) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)), as amended 
by section 103(a), is amended--
          (1) by striking ``or'' at the end of clause (ii);
          (2) by striking the period at the end of clause (iii) and 
        inserting ``; or''; and
          (3) by adding at the end the following new clause:
                  ``(iv) any payment by a political committee of a 
                political party for the direct costs of a public 
                communication (as defined in paragraph (22)) made on 
                behalf of a candidate for Federal office who is 
                affiliated with such party, but only if the 
                communication is controlled by, or made at the 
                direction of, the candidate or an authorized committee 
                of the candidate.''.
  (b) Requiring Control or Direction by Candidate for Treatment as 
Coordinated Party Expenditure.--
          (1) In general.--Paragraph (4) of section 315(d) of such Act 
        (2 U.S.C. 441a(d)) is amended to read as follows:
  ``(4) Special Rule for Direct Costs of Communications.--The direct 
costs incurred by a political committee of a political party for a 
communication made in connection with the campaign of a candidate for 
Federal office shall not be subject to the limitations contained in 
paragraphs (2) and (3) unless the communication is controlled by, or 
made at the direction of, the candidate or an authorized committee of 
the candidate.''.
          (2) Conforming amendment.--Paragraph (1) of section 315(d) of 
        such Act (2 U.S.C. 441a(d)) is amended by striking ``paragraphs 
        (2), (3), and (4)'' and inserting ``paragraphs (2) and (3)''.
  (c) Effective Date.--This section and the amendments made by this 
section shall apply with respect to payments made on or after the 
expiration of the 30-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 to carry out such 
amendments.

SEC. 105. RESTRICTION ON INTERNET COMMUNICATIONS TREATED AS PUBLIC 
                    COMMUNICATIONS.

  (a) In General.--Section 301(22) of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 431(22)) is amended by adding at the end the 
following new sentence: ``A communication which is disseminated through 
the Internet shall not be treated as a form of general public political 
advertising under this paragraph unless the communication was placed 
for a fee on another person's Web site.''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on the date of the enactment of this Act.

 TITLE II--PROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGN-RELATED ACTIVITY

 Subtitle A--Treatment of Independent Expenditures and Electioneering 
                   Communications Made by All Persons

SEC. 201. INDEPENDENT EXPENDITURES.

  (a) Revision of Definition.--Subparagraph (A) of section 301(17) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 431(17)) is amended 
to read as follows:
                  ``(A) that, when taken as a whole, expressly 
                advocates the election or defeat of a clearly 
                identified candidate, or is the functional equivalent 
                of express advocacy because it can be interpreted by a 
                reasonable person only as advocating the election or 
                defeat of a candidate, taking into account whether the 
                communication involved mentions a candidacy, a 
                political party, or a challenger to a candidate, or 
                takes a position on a candidate's character, 
                qualifications, or fitness for office; and''.
  (b) Uniform 24-Hour Reporting For Persons Making Independent 
Expenditures Exceeding $10,000 at Any Time.--Section 304(g) of such Act 
(2 U.S.C. 434(g)) is amended by striking paragraphs (1) and (2) and 
inserting the following:
          ``(1) Independent expenditures exceeding threshold amount.--
                  ``(A) Initial report.--A person (including a 
                political committee) that makes or contracts to make 
                independent expenditures in an aggregate amount equal 
                to or greater than the threshold amount described in 
                paragraph (2) shall electronically file a report 
                describing the expenditures within 24 hours.
                  ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person shall 
                electronically file an additional report within 24 
                hours after each time the person makes or contracts to 
                make independent expenditures in an aggregate amount 
                equal to or greater than the threshold amount with 
                respect to the same election as that to which the 
                initial report relates.
          ``(2) Threshold amount described.--In paragraph (1), the 
        `threshold amount' means--
                  ``(A) during the period up to and including the 20th 
                day before the date of an election, $10,000; or
                  ``(B) during the period after the 20th day, but more 
                than 24 hours, before the date of an election, $1,000.
          ``(3) Public availability.--Notwithstanding any other 
        provision of this section, the Commission shall ensure that the 
        information required to be disclosed under this subsection is 
        publicly available through the Commission website not later 
        than 24 hours after receipt in a manner that is downloadable in 
        bulk and machine readable.''.
  (c) Effective Date.--
          (1) In general.--The amendment made by subsection (a) shall 
        apply with respect to contributions and expenditures made on or 
        after the expiration of the 30-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 
        to carry out such amendments.
          (2) Reporting requirements.--The amendment made by subsection 
        (b) shall apply with respect to reports required to be filed 
        after the date of the enactment of this Act.

SEC. 202. ELECTIONEERING COMMUNICATIONS.

  (a) Expansion of Period Covering General Election.--Section 
304(f)(3)(A)(i)(II)(aa) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(f)(3)(A)(i)(II)(aa)) is amended by striking ``60 days'' and 
inserting ``120 days''.
  (b) Mandatory Electronic Filing.--Section 304(f)(1) of such Act (2 
U.S.C. 434(f)(1)) is amended--
          (1) by striking ``file with'' and inserting ``electronically 
        file with''; and
          (2) by adding at the end the following new sentence: 
        ``Notwithstanding any other provision of this section, the 
        Commission shall ensure that the information required to be 
        disclosed under this subsection is publicly available through 
        the Commission website not later than 24 hours after receipt in 
        a manner that is downloadable in bulk and machine readable.''.
  (c) Effective Date; Transition for Communications Made Prior to 
Enactment.--The amendment made by subsection (a) shall apply with 
respect to communications made on or after the date of the enactment of 
this Act, without regard to whether or not the Federal Election 
Commission has promulgated regulations to carry out such amendments, 
except that no communication which is made prior to the date of the 
enactment of this Act shall be treated as an electioneering 
communication under section 304(f)(3)(A)(i)(II) of the Federal Election 
Campaign Act of 1971 (as amended by subsection (a)) unless the 
communication would be treated as an electioneering communication under 
such section if the amendment made by subsection (a) did not apply.

SEC. 203. MANDATORY ELECTRONIC FILING BY PERSONS MAKING INDEPENDENT 
                    EXPENDITURES OR ELECTIONEERING COMMUNICATIONS 
                    EXCEEDING $10,000 AT ANY TIME.

  Section 304(d)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(d)(1)) is amended--
          (1) by striking ``or (g)''; and
          (2) by adding at the end the following: ``Notwithstanding any 
        other provision of this section, any person who is required to 
        file a statement under subsection (f) or subsection (g) shall 
        file the statement in electronic form accessible by computers, 
        in a manner which ensures that the information provided is 
        searchable, sortable, and downloadable.''.

     Subtitle B--Expanded Requirements for Corporations and Other 
                             Organizations

SEC. 211. ADDITIONAL INFORMATION REQUIRED TO BE INCLUDED IN REPORTS ON 
                    DISBURSEMENTS BY COVERED ORGANIZATIONS.

  (a) Independent Expenditure Reports.--Section 304(g) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434(g)) is amended by adding at 
the end the following new paragraph:
          ``(5) Disclosure of additional information by covered 
        organizations making payments for public independent 
        expenditures.--
                  ``(A) Additional information.--If a covered 
                organization makes or contracts to make public 
                independent expenditures in an aggregate amount equal 
                to or exceeding $10,000 in a calendar year, the report 
                filed by the organization under this subsection shall 
                include, in addition to the information required under 
                paragraph (3), the following information:
                          ``(i) If any person made a donation or 
                        payment to the covered organization during the 
                        covered organization reporting period which was 
                        provided for the purpose of being used for 
                        campaign-related activity or in response to a 
                        solicitation for funds to be used for campaign-
                        related activity--
                                  ``(I) subject to subparagraph (C), 
                                the identification of each person who 
                                made such donations or payments in an 
                                aggregate amount equal to or exceeding 
                                $600 during such period, presented in 
                                the order of the aggregate amount of 
                                donations or payments made by such 
                                persons during such period (with the 
                                identification of the person making the 
                                largest donation or payment appearing 
                                first); and
                                  ``(II) if any person identified under 
                                subclause (I) designated that the 
                                donation or payment be used for 
                                campaign-related activity with respect 
                                to a specific election or in support of 
                                a specific candidate, the name of the 
                                election or candidate involved, and if 
                                any such person designated that the 
                                donation or payment be used for a 
                                specific public independent 
                                expenditure, a description of the 
                                expenditure.
                          ``(ii) The identification of each person who 
                        made unrestricted donor payments to the 
                        organization during the covered organization 
                        reporting period--
                                  ``(I) in an aggregate amount equal to 
                                or exceeding $600 during such period, 
                                if any of the disbursements made by the 
                                organization for any of the public 
                                independent expenditures which are 
                                covered by the report were not made 
                                from the organization's Campaign-
                                Related Activity Account under section 
                                326; or
                                  ``(II) in an aggregate amount equal 
                                to or exceeding $6,000 during such 
                                period, if the disbursements made by 
                                the organization for all of the public 
                                independent expenditures which are 
                                covered by the report were made 
                                exclusively from the organization's 
                                Campaign-Related Activity Account under 
                                section 326 (but only if the 
                                organization has made deposits 
                                described in subparagraph (D) of 
                                section 326(a)(2) into that Account 
                                during such period in an aggregate 
                                amount equal to or greater than 
                                $10,000),
                        presented in the order of the aggregate amount 
                        of payments made by such persons during such 
                        period (with the identification of the person 
                        making the largest payment appearing first).
                  ``(B) Treatment of transfers made to other persons.--
                          ``(i) In general.--For purposes of the 
                        requirement to file reports under this 
                        subsection (including the requirement under 
                        subparagraph (A) to include additional 
                        information in such reports), a covered 
                        organization which transfers amounts to another 
                        person (other than the covered organization 
                        itself) for the purpose of making a public 
                        independent expenditure by that person or by 
                        any other person, or (in accordance with clause 
                        (ii)) which is deemed to have transferred 
                        amounts to another person (other than the 
                        covered organization itself) for the purpose of 
                        making a public independent expenditure by that 
                        person or by any other person, shall be 
                        considered to have made a public independent 
                        expenditure.
                          ``(ii) Rules for deeming transfers made for 
                        purpose of making expenditures.--For purposes 
                        of clause (i), in determining whether a covered 
                        organization or any other person who transfers 
                        amounts to another person shall be deemed to 
                        have transferred the amounts for the purpose of 
                        making a public independent expenditure, the 
                        following rules apply:
                                  ``(I) The person shall be deemed to 
                                have transferred the amounts for the 
                                purpose of making a public independent 
                                expenditure if--
                                          ``(aa) the person designates, 
                                        requests, or suggests that the 
                                        amounts be used for public 
                                        independent expenditures and 
                                        the person to whom the amounts 
                                        were transferred agrees to do 
                                        so or does so;
                                          ``(bb) the person making the 
                                        public independent expenditure 
                                        or another person acting on 
                                        that person's behalf expressly 
                                        solicited the person for a 
                                        donation or payment for making 
                                        or paying for any public 
                                        independent expenditures;
                                          ``(cc) the person and the 
                                        person to whom the amounts were 
                                        transferred engaged in 
                                        substantial written or oral 
                                        discussion regarding the person 
                                        either making, or donating or 
                                        paying for, any public 
                                        independent expenditures;
                                          ``(dd) the person or the 
                                        person to whom the amounts were 
                                        transferred knew or had reason 
                                        to know of the covered 
                                        organization's intent to make 
                                        public independent 
                                        expenditures; or
                                          ``(ee) the person or the 
                                        person to whom the amounts were 
                                        transferred made a public 
                                        independent expenditure during 
                                        the 2-year period which ends on 
                                        the date on which the amounts 
                                        were transferred.
                                  ``(II) The person shall not be deemed 
                                to have transferred the amounts for the 
                                purpose of making a public independent 
                                expenditure if the transfer was a 
                                commercial transaction occurring in the 
                                ordinary course of business between the 
                                person and the person to whom the 
                                amounts were transferred, unless there 
                                is affirmative evidence that the 
                                amounts were transferred for the 
                                purpose of making a public independent 
                                expenditure.
                  ``(C) Exclusion of amounts designated for other 
                campaign-related activity.--For purposes of 
                subparagraph (A)(i), in determining the amount of a 
                donation or payment made by a person which was provided 
                for the purpose of being used for campaign-related 
                activity or in response to a solicitation for funds to 
                be used for campaign-related activity, there shall be 
                excluded any amount which was designated by the person 
                to be used--
                          ``(i) for campaign-related activity described 
                        in clause (i) of section 325(d)(2)(A) (relating 
                        to independent expenditures) with respect to a 
                        different election, or with respect to a 
                        candidate in a different election, than an 
                        election which is the subject of any of the 
                        public independent expenditures covered by the 
                        report involved; or
                          ``(ii) for any campaign-related activity 
                        described in clause (ii) of section 
                        325(d)(2)(A) (relating to electioneering 
                        communications).
                  ``(D) Exclusion of amounts paid from separate 
                segregated fund.--In determining the amount of public 
                independent expenditures made by a covered organization 
                for purposes of this paragraph, there shall be excluded 
                any amounts paid from a separate segregated fund 
                established and administered by the organization under 
                section 316(b)(2)(C).
                  ``(E) Covered organization reporting period 
                described.--In this paragraph, the `covered 
                organization reporting period' is, with respect to a 
                report filed by a covered organization under this 
                subsection--
                          ``(i) in the case of the first report filed 
                        by a covered organization under this subsection 
                        which includes information required under this 
                        paragraph, the shorter of--
                                  ``(I) the period which begins on the 
                                effective date of the Democracy is 
                                Strengthened by Casting Light on 
                                Spending in Elections Act and ends on 
                                the last day covered by the report, or
                                  ``(II) the 12-month period ending on 
                                the last day covered by the report; and
                          ``(ii) in the case of any subsequent report 
                        filed by a covered organization under this 
                        subsection which includes information required 
                        under this paragraph, the period occurring 
                        since the most recent report filed by the 
                        organization which includes such information.
                  ``(F) Covered organization defined.--In this 
                paragraph, the term `covered organization' means any of 
                the following:
                          ``(i) Any corporation which is subject to 
                        section 316(a).
                          ``(ii) Any labor organization (as defined in 
                        section 316).
                          ``(iii) Any organization described in 
                        paragraph (4), (5), or (6) of section 501(c) of 
                        the Internal Revenue Code of 1986 and exempt 
                        from tax under section 501(a) of such Code.
                          ``(iv) Any political organization under 
                        section 527 of the Internal Revenue Code of 
                        1986, other than a political committee under 
                        this Act.
                  ``(G) Other definitions.--In this paragraph--
                          ``(i) the terms `campaign-related activity' 
                        and `unrestricted donor payment' have the 
                        meaning given such terms in section 325; and
                          ``(ii) the term `public independent 
                        expenditure' means an independent expenditure 
                        for a public communication (as defined in 
                        section 301(22)).''.
  (b) Electioneering Communication Reports.--
          (1) In general.--Section 304(f) of such Act (2 U.S.C. 434(f)) 
        is amended--
                  (A) by redesignating paragraphs (6) and (7) as 
                paragraphs (7) and (8); and
                  (B) by inserting after paragraph (5) the end the 
                following new paragraph:
          ``(6) Disclosure of additional information by covered 
        organizations.--
                  ``(A) Additional information.--If a covered 
                organization files a statement under this subsection, 
                the statement shall include, in addition to the 
                information required under paragraph (2), the following 
                information:
                          ``(i) If any person made a donation or 
                        payment to the covered organization during the 
                        covered organization reporting period which was 
                        provided for the purpose of being used for 
                        campaign-related activity or in response to a 
                        solicitation for funds to be used for campaign-
                        related activity--
                                  ``(I) subject to subparagraph (C), 
                                the identification of each person who 
                                made such donations or payments in an 
                                aggregate amount equal to or exceeding 
                                $1,000 during such period, presented in 
                                the order of the aggregate amount of 
                                donations or payments made by such 
                                persons during such period (with the 
                                identification of the person making the 
                                largest donation or payment appearing 
                                first); and
                                  ``(II) if any person identified under 
                                subclause (I) designated that the 
                                donation or payment be used for 
                                campaign-related activity with respect 
                                to a specific election or in support of 
                                a specific candidate, the name of the 
                                election or candidate involved, and if 
                                any such person designated that the 
                                donation or payment be used for a 
                                specific electioneering communication, 
                                a description of the communication.
                          ``(ii) The identification of each person who 
                        made unrestricted donor payments to the 
                        organization during the covered organization 
                        reporting period--
                                  ``(I) in an aggregate amount equal to 
                                or exceeding $1,000 during such period, 
                                if any of the disbursements made by the 
                                organization for any of the 
                                electioneering communications which are 
                                covered by the statement were not made 
                                from the organization's Campaign-
                                Related Activity Account under section 
                                326; or
                                  ``(II) in an aggregate amount equal 
                                to or exceeding $10,000 during such 
                                period, if the disbursements made by 
                                the organization for all of the 
                                electioneering communications which are 
                                covered by the statement were made 
                                exclusively from the organization's 
                                Campaign-Related Activity Account under 
                                section 326 (but only if the 
                                organization has made deposits 
                                described in subparagraph (D) of 
                                section 326(a)(2) into that Account 
                                during such period in an aggregate 
                                amount equal to or greater than 
                                $10,000),
                        presented in the order of the aggregate amount 
                        of payments made by such persons during such 
                        period (with the identification of the person 
                        making the largest payment appearing first).
                  ``(B) Treatment of transfers made to other persons.--
                          ``(i) In general.--For purposes of the 
                        requirement to file statements under this 
                        subsection (including the requirement under 
                        subparagraph (A) to include additional 
                        information in such statements), a covered 
                        organization which transfers amounts to another 
                        person (other than the covered organization 
                        itself) for the purpose of making an 
                        electioneering communication by that person or 
                        by any other person, or (in accordance with 
                        clause (ii)) which is deemed to have 
                        transferred amounts to another person (other 
                        than the covered organization itself) for the 
                        purpose of making an electioneering 
                        communication by that person or by any other 
                        person, shall be considered to have made a 
                        disbursement for an electioneering 
                        communication.
                          ``(ii) Rules for deeming transfers made for 
                        purpose of making communications.--For purposes 
                        of clause (i), in determining whether a covered 
                        organization or any other person who transfers 
                        amounts to another person shall be deemed to 
                        have transferred the amounts for the purpose of 
                        making an electioneering communication, the 
                        following rules apply:
                                  ``(I) The person shall be deemed to 
                                have transferred the amounts for the 
                                purpose of making an electioneering 
                                communication if--
                                          ``(aa) the person designates, 
                                        requests, or suggests that the 
                                        amounts be used for 
                                        electioneering communications 
                                        and the person to whom the 
                                        amounts were transferred agrees 
                                        to do so or does so;
                                          ``(bb) the person making the 
                                        electioneering communication or 
                                        another person acting on that 
                                        person's behalf expressly 
                                        solicited the person for a 
                                        donation or payment for making 
                                        or paying for any 
                                        electioneering communications;
                                          ``(cc) the person and the 
                                        person to whom the amounts were 
                                        transferred engaged in 
                                        substantial written or oral 
                                        discussion regarding the person 
                                        either making, or donating or 
                                        paying for, any electioneering 
                                        communications;
                                          ``(dd) the person or the 
                                        person to whom the amounts were 
                                        transferred knew or had reason 
                                        to know of the covered 
                                        organization's intent to make 
                                        electioneering communications; 
                                        or
                                          ``(ee) the person or the 
                                        person to whom the amounts were 
                                        transferred made an 
                                        electioneering communication 
                                        during the 2-year period which 
                                        ends on the date on which the 
                                        amounts were transferred.
                                  ``(II) The person shall not be 
                                considered to have transferred the 
                                amounts for the purpose of making an 
                                electioneering communication if the 
                                transfer was a commercial transaction 
                                occurring in the ordinary course of 
                                business between the person and the 
                                person to whom the amounts were 
                                transferred, unless there is 
                                affirmative evidence that the amounts 
                                were transferred for the purpose of 
                                making an electioneering communication.
                  ``(C) Exclusion of amounts designated for other 
                campaign-related activity.--For purposes of 
                subparagraph (A)(i), in determining the amount of a 
                donation or payment made by a person which was provided 
                for the purpose of being used for campaign-related 
                activity or in response to a solicitation for funds to 
                be used for campaign-related activity, there shall be 
                excluded any amount which was designated by the person 
                to be used--
                          ``(i) for campaign-related activity described 
                        in clause (ii) of section 325(d)(2)(A) 
                        (relating to electioneering communications) 
                        with respect to a different election, or with 
                        respect to a candidate in a different election, 
                        than an election which is the subject of any of 
                        the electioneering communications covered by 
                        the statement involved; or
                          ``(ii) for any campaign-related activity 
                        described in clause (i) of section 325(d)(2)(A) 
                        (relating to independent expenditures 
                        consisting of a public communication).
                  ``(D) Covered organization reporting period 
                described.--In this paragraph, the `covered 
                organization reporting period' is, with respect to a 
                statement filed by a covered organization under this 
                subsection--
                          ``(i) in the case of the first statement 
                        filed by a covered organization under this 
                        subsection which includes information required 
                        under this paragraph, the shorter of--
                                  ``(I) the period which begins on the 
                                effective date of the Democracy is 
                                Strengthened by Casting Light on 
                                Spending in Elections Act and ends on 
                                the disclosure date for the statement, 
                                or
                                  ``(II) the 12-month period ending on 
                                the disclosure date for the statement; 
                                and
                          ``(ii) in the case of any subsequent 
                        statement filed by a covered organization under 
                        this subsection which includes information 
                        required under this paragraph, the period 
                        occurring since the most recent statement filed 
                        by the organization which includes such 
                        information.
                  ``(E) Covered organization defined.--In this 
                paragraph, the term `covered organization' means any of 
                the following:
                          ``(i) Any corporation which is subject to 
                        section 316(a).
                          ``(ii) Any labor organization (as defined in 
                        section 316).
                          ``(iii) Any organization described in 
                        paragraph (4), (5), or (6) of section 501(c) of 
                        the Internal Revenue Code of 1986 and exempt 
                        from tax under section 501(a) of such Code.
                          ``(iv) Any political organization under 
                        section 527 of the Internal Revenue Code of 
                        1986, other than a political committee under 
                        this Act.
                  ``(F) Other definitions.--In this paragraph, the 
                terms `campaign-related activity' and `unrestricted 
                donor payment' have the meaning given such terms in 
                section 325.''.
          (2) Conforming amendment.--Section 304(2) of such Act (2 
        U.S.C. 434(f)(2)) is amended by striking ``If the 
        disbursements'' each place it appears in subparagraph (E) and 
        (F) and inserting the following: ``Except in the case of a 
        statement which is required to include additional information 
        under paragraph (6), if the disbursements''.

SEC. 212. RULES REGARDING USE OF GENERAL TREASURY FUNDS BY COVERED 
                    ORGANIZATIONS FOR CAMPAIGN-RELATED ACTIVITY.

  Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 
et seq.) is amended by adding at the end the following new section:

``SEC. 325. SPECIAL RULES FOR USE OF GENERAL TREASURY FUNDS BY COVERED 
                    ORGANIZATIONS FOR CAMPAIGN-RELATED ACTIVITY.

  ``(a) Use of Funds for Campaign-Related Activity.--
          ``(1) In general.--Subject to any applicable restrictions and 
        prohibitions under this Act, a covered organization may make 
        disbursements for campaign-related activity using--
                  ``(A) amounts paid or donated to the organization 
                which are designated by the person providing the 
                amounts to be used for campaign-related activity;
                  ``(B) unrestricted donor payments made to the 
                organization; and
                  ``(C) other funds of the organization, including 
                amounts received pursuant to commercial activities in 
                the regular course of a covered organization's 
                business.
          ``(2) No effect on use of separate segregated fund.--Nothing 
        in this section shall be construed to affect the authority of a 
        covered organization to make disbursements from a separate 
        segregated fund established and administered by the 
        organization under section 316(b)(2)(C).
  ``(b) Mutually Agreed Restrictions on Use of Funds for Campaign-
Related Activity.--
          ``(1) Agreement and certification.--If a covered organization 
        and a person mutually agree, at the time the person makes a 
        donation, payment, or transfer to the organization which would 
        require the organization to disclose the person's 
        identification under section 304(g)(5)(A)(ii) or section 
        304(f)(6)(A)(ii), that the organization will not use the 
        donation, payment, or transfer for campaign-related activity, 
        then not later than 30 days after the organization receives the 
        donation, payment, or transfer the organization shall transmit 
        to the person a written certification by the chief financial 
        officer of the covered organization (or, if the organization 
        does not have a chief financial officer, the highest ranking 
        financial official of the organization) that--
                  ``(A) the organization will not use the donation, 
                payment, or transfer for campaign-related activity; and
                  ``(B) the organization will not include any 
                information on the person in any report filed by the 
                organization under section 304 with respect to 
                independent expenditures or electioneering 
                communications, so that the person will not be required 
                to appear in a significant funder statement or a Top 5 
                Funders list under section 318(e).
          ``(2) Exception for payments made pursuant to commercial 
        activities.--Paragraph (1) does not apply with respect to any 
        payment or transfer made pursuant to commercial activities in 
        the regular course of a covered organization's business.
  ``(c) Certifications Regarding Disbursements for Campaign-Related 
Activity.--
          ``(1) Certification by chief executive officer.--If, at any 
        time during a calendar quarter, a covered organization makes a 
        disbursement of funds for campaign-related activity using funds 
        described in subsection (a)(1), the chief executive officer of 
        the covered organization or the chief executive officer's 
        designee (or, if the organization does not have a chief 
        executive officer, the highest ranking official of the 
        organization or the highest ranking official's designee) shall 
        file a statement with the Commission which contains the 
        following certifications:
                  ``(A) None of the campaign-related activity for which 
                the organization disbursed the funds during the quarter 
                was made in cooperation, consultation, or concert with, 
                or at the request or suggestion of, any candidate or 
                any authorized committee or agent of such candidate, or 
                political committee of a political party or agent of 
                any political party.
                  ``(B) The chief executive officer or highest ranking 
                official of the covered organization (as the case may 
                be) has reviewed and approved each statement and report 
                filed by the organization under section 304 with 
                respect to any such disbursement made during the 
                quarter.
                  ``(C) Each statement and report filed by the 
                organization under section 304 with respect to any such 
                disbursement made during the quarter is complete and 
                accurate.
                  ``(D) All such disbursements made during the quarter 
                are in compliance with this Act.
                  ``(E) No portion of the amounts used to make any such 
                disbursements during the quarter is attributable to 
                funds received by the organization that were restricted 
                by the person who provided the funds from being used 
                for campaign-related activity pursuant to subsection 
                (b).
          ``(2) Application of electronic filing rules.--Section 
        304(d)(1) shall apply with respect to a statement required 
        under this subsection in the same manner as such section 
        applies with respect to a statement under subsection (c) or (g) 
        of section 304.
          ``(3) Deadline.--The chief executive officer or highest 
        ranking official of a covered organization (as the case may be) 
        shall file the statement required under this subsection with 
        respect to a calendar quarter not later than 15 days after the 
        end of the quarter.
  ``(d) Definitions.--For purposes of this section, the following 
definitions apply:
          ``(1) Covered organization.--The term `covered organization' 
        means any of the following:
                  ``(A) Any corporation which is subject to section 
                316(a).
                  ``(B) Any labor organization (as defined in section 
                316).
                  ``(C) Any organization described in paragraph (4), 
                (5), or (6) of section 501(c) of the Internal Revenue 
                Code of 1986 and exempt from tax under section 501(a) 
                of such Code.
                  ``(D) Any political organization under section 527 of 
                the Internal Revenue Code of 1986, other than a 
                political committee under this Act.
          ``(2) Campaign-related activity.--
                  ``(A) In general.--The term `campaign-related 
                activity' means--
                          ``(i) an independent expenditure consisting 
                        of a public communication (as defined in 
                        section 301(22)), a transfer of funds to 
                        another person (other than the transferor 
                        itself) for the purpose of making such an 
                        independent expenditure by that person or by 
                        any other person, or (in accordance with 
                        subparagraph (B)) a transfer of funds to 
                        another person (other than the transferor 
                        itself) which is deemed to have been made for 
                        the purpose of making such an independent 
                        expenditure by that person or by any other 
                        person; or
                          ``(ii) an electioneering communication, a 
                        transfer of funds to another person (other than 
                        the transferor itself) for the purpose of 
                        making an electioneering communication by that 
                        person or by any other person, or (in 
                        accordance with subparagraph (B)) a transfer of 
                        funds to another person (other than the 
                        transferor itself)which is deemed to have been 
                        made for the purpose of making an 
                        electioneering communication by that person or 
                        by any other person.
                  ``(B) Rule for deeming transfers made for purpose of 
                campaign-related activity.--For purposes of 
                subparagraph (A), in determining whether a transfer of 
                funds by one person to another person shall be deemed 
                to have been made for the purpose of making an 
                independent expenditure consisting of a public 
                communication or an electioneering communication, the 
                following rules apply:
                          ``(i) The transfer shall be deemed to have 
                        been made for the purpose of making such an 
                        independent expenditure or an electioneering 
                        communication if--
                                  ``(I) the person designates, 
                                requests, or suggests that the amounts 
                                be used for such independent 
                                expenditures or electioneering 
                                communications and the person to whom 
                                the amounts were transferred agrees to 
                                do so or does so;
                                  ``(II) the person making such 
                                independent expenditures or 
                                electioneering communications or 
                                another person acting on that person's 
                                behalf expressly solicited the person 
                                for a donation or payment for making or 
                                paying for any such independent 
                                expenditure or electioneering 
                                communication;
                                  ``(III) the person and the person to 
                                whom the amounts were transferred 
                                engaged in substantial written or oral 
                                discussion regarding the person either 
                                making, or donating or paying for, such 
                                independent expenditures or 
                                electioneering communications;
                                  ``(IV) the person or the person to 
                                whom the amounts were transferred knew 
                                or had reason to know of the covered 
                                organization's intent to disburse funds 
                                for such independent expenditures or 
                                electioneering communications; or
                                  ``(V) the person or the person to 
                                whom the amounts were transferred made 
                                such an independent expenditure or 
                                electioneering communication during the 
                                2-year period which ends on the date on 
                                which the amounts were transferred.
                          ``(ii) The transfer shall not be deemed to 
                        have been made for the purpose of making such 
                        an independent expenditure or an electioneering 
                        communication if the transfer was a commercial 
                        transaction occurring in the ordinary course of 
                        business between the person and the person to 
                        whom the amounts were transferred, unless there 
                        is affirmative evidence that the amounts were 
                        transferred for the purpose of making such an 
                        independent expenditure or electioneering 
                        communication.
          ``(3) Unrestricted donor payment.--The term `unrestricted 
        donor payment' means a payment to a covered organization which 
        consists of a donation or payment from a person other than the 
        covered organization, except that such term does not include--
                  ``(A) any payment made pursuant to commercial 
                activities in the regular course of a covered 
                organization's business; or
                  ``(B) any donation or payment which is designated by 
                the person making the donation or payment to be used 
                for campaign-related activity or made in response to a 
                solicitation for funds to be used for campaign-related 
                activity.''.

SEC. 213. OPTIONAL USE OF SEPARATE ACCOUNT BY COVERED ORGANIZATIONS FOR 
                    CAMPAIGN-RELATED ACTIVITY.

  Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 
et seq.), as amended by section 212, is further amended by adding at 
the end the following new section:

``SEC. 326. OPTIONAL USE OF SEPARATE ACCOUNT BY COVERED ORGANIZATIONS 
                    FOR CAMPAIGN-RELATED ACTIVITY.

  ``(a) Optional Use of Separate Account.--
          ``(1) Establishment of account.--
                  ``(A) In general.--At its option, a covered 
                organization may make disbursements for campaign-
                related activity using amounts from a bank account 
                established and controlled by the organization to be 
                known as the Campaign-Related Activity Account 
                (hereafter in this section referred to as the 
                `Account'), which shall be maintained separately from 
                all other accounts of the organization and which shall 
                consist exclusively of the deposits described in 
                paragraph (2).
                  ``(B) Mandatory use of account after establishment.--
                If a covered organization establishes an Account under 
                this section, it may not make disbursements for 
                campaign-related activity from any source other than 
                amounts from the Account.
                  ``(C) Exclusive use of account for campaign-related 
                activity.--Amounts in the Account shall be used 
                exclusively for disbursements by the covered 
                organization for campaign-related activity. After such 
                disbursements are made, information with respect to 
                deposits made to the Account shall be disclosed in 
                accordance with section 304(g)(5) or section 304(f)(6).
          ``(2) Deposits described.--The deposits described in this 
        paragraph are deposits of the following amounts:
                  ``(A) Amounts donated or paid to the covered 
                organization by a person other than the organization 
                for the purpose of being used for campaign-related 
                activity, and for which the person providing the 
                amounts has designated that the amounts be used for 
                campaign-related activity with respect to a specific 
                election or specific candidate.
                  ``(B) Amounts donated or paid to the covered 
                organization by a person other than the organization 
                for the purpose of being used for campaign-related 
                activity, and for which the person providing the 
                amounts has not designated that the amounts be used for 
                campaign-related activity with respect to a specific 
                election or specific candidate.
                  ``(C) Amounts donated or paid to the covered 
                organization by a person other than the organization in 
                response to a solicitation for funds to be used for 
                campaign-related activity.
                  ``(D) Amounts transferred to the Account by the 
                covered organization from other accounts of the 
                organization, including from the organization's general 
                treasury funds.
          ``(3) No treatment as political committee.--The establishment 
        and administration of an Account in accordance with this 
        subsection shall not by itself be treated as the establishment 
        or administration of a political committee for any purpose of 
        this Act.
  ``(b) Reduction in Amounts Otherwise Available for Account in 
Response to Demand of General Donors.--
          ``(1) In general.--If a covered organization which has 
        established an Account obtains any revenues during a year which 
        are attributable to a donation or payment from a person other 
        than the covered organization, and if any person who makes such 
        a donation or payment to the organization notifies the 
        organization in writing (at the time of making the donation or 
        payment) that the organization may not use the donation or 
        payment for campaign-related activity, the organization shall 
        reduce the amount of its revenues available for deposits to the 
        Account which are described in subsection (a)(3)(D) during the 
        year by the amount of the donation or payment.
          ``(2) Exception.--Paragraph (1) does not apply with respect 
        to any payment made pursuant to commercial activities in the 
        regular course of a covered organization's business.
  ``(c) Covered Organization Defined.--In this section, the term 
`covered organization' means any of the following:
          ``(1) Any corporation which is subject to section 316(a).
          ``(2) Any labor organization (as defined in section 316).
          ``(3) Any organization described in paragraph (4), (5), or 
        (6) of section 501(c) of the Internal Revenue Code of 1986 and 
        exempt from tax under section 501(a) of such Code.
          ``(4) Any political organization under section 527 of the 
        Internal Revenue Code of 1986, other than a political committee 
        under this Act.
  ``(d) Campaign-Related Activity Defined.--In this section, the term 
`campaign-related activity' has the meaning given such term in section 
325.''.

SEC. 214. MODIFICATION OF RULES RELATING TO DISCLAIMER STATEMENTS 
                    REQUIRED FOR CERTAIN COMMUNICATIONS.

  (a) Applying Requirements to All Independent Expenditure 
Communications.--Section 318(a) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441d(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 an independent 
expenditure consisting of a public communication''.
  (b) Stand by Your Ad Requirements.--
          (1) Maintenance of existing requirements for communications 
        by political parties and other political committees.--Section 
        318(d)(2) of such Act (2 U.S.C. 441d(d)(2)) is amended--
                  (A) in the heading, by striking ``others'' and 
                inserting ``political committees'';
                  (B) by striking ``subsection (a)'' and inserting 
                ``subsection (a) which is paid for by a political 
                committee (including a political committee of a 
                political party), other than a political committee 
                which makes only electioneering communications or 
                independent expenditures consisting of public 
                communications,''; and
                  (C) by striking ``or other person'' each place it 
                appears.
          (2) Special disclaimer requirements for certain 
        communications.--Section 318 of such Act (2 U.S.C. 441d) is 
        amended by adding at the end the following new subsection:
  ``(e) Communications by Others.--
          ``(1) In general.--Any communication described in paragraph 
        (3) of subsection (a) which is transmitted through radio or 
        television (other than a communication to which subsection 
        (d)(2) applies because the communication is paid for by a 
        political committee, including a political committee of a 
        political party, other than a political committee which makes 
        only electioneering communications or independent expenditures 
        consisting of public communications) shall include, in addition 
        to the requirements of that paragraph, the following:
                  ``(A) The individual disclosure statement described 
                in paragraph (2) (if the person paying for the 
                communication is an individual) or the organizational 
                disclosure statement described in paragraph (3) (if the 
                person paying for the communication is not an 
                individual).
                  ``(B) If the communication is an electioneering 
                communication or an independent expenditure consisting 
                of a public communication and is paid for in whole or 
                in part with a payment which is treated as a 
                disbursement by a covered organization for campaign-
                related activity under section 325, the significant 
                funder disclosure statement described in paragraph (4) 
                (if applicable), unless, on the basis of criteria 
                established in regulations promulgated by the 
                Commission, the communication is of such short duration 
                that including the statement in the communication would 
                constitute a hardship to the person paying for the 
                communication by requiring a disproportionate amount of 
                the communication's content to consist of the 
                statement.
                  ``(C) If the communication is an electioneering 
                communication or an independent expenditure consisting 
                of a public communication and is paid for in whole or 
                in part with a payment which is treated as a 
                disbursement by a covered organization for campaign-
                related activity under section 325, the Top Five 
                Funders list described in paragraph (5) (if 
                applicable), unless, on the basis of criteria 
                established in regulations promulgated by the 
                Commission, the communication 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 communication's content 
                to consist of the Top Five Funders list.
          ``(2) Individual disclosure statement described.--The 
        individual disclosure statement described in this paragraph is 
        the following: `I am _______, and I approve this message.', 
        with the blank filled in with the name of the applicable 
        individual.
          ``(3) Organizational disclosure statement described.--The 
        organizational disclosure statement described in this paragraph 
        is the following: `I am _______, the _______ of _______, and 
        _______ approves this message.', with--
                  ``(A) the first blank to be filled in with the name 
                of the applicable individual;
                  ``(B) the second blank to be filled in with the title 
                of the applicable individual; and
                  ``(C) the third and fourth blank each to be filled in 
                with the name of the organization or other person 
                paying for the communication.
          ``(4) Significant funder disclosure statement described.--
                  ``(A) Statement if significant funder is an 
                individual.--If the significant funder of a 
                communication paid for in whole or in part with a 
                payment which is treated as a disbursement by a covered 
                organization for campaign-related activity under 
                section 325 is an individual, the significant funder 
                disclosure statement described in this paragraph is the 
                following: `I am _______. I helped to pay for this 
                message, and I approve it.', with the blank filled in 
                with the name of the applicable individual.
                  ``(B) Statement if significant funder is not an 
                individual.--If the significant funder of a 
                communication paid for in whole or in part with a 
                payment which is treated as a disbursement by a covered 
                organization for campaign-related activity under 
                section 325 is not an individual, the significant 
                funder disclosure statement described in this paragraph 
                is the following: `I am _______, the _______ of 
                _______. _______ helped to pay for this message, and 
                _______ approves it.', 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, fourth, and fifth blank 
                        each to be filled in with the name of the 
                        significant funder of the communication.
                  ``(C) Significant funder defined.--
                          ``(i) Independent expenditures.--For purposes 
                        of this paragraph, the `significant funder' 
                        with respect to an independent expenditure 
                        consisting of a public communication paid for 
                        in whole or in part with a payment which is 
                        treated as a disbursement by a covered 
                        organization for campaign-related activity 
                        under section 325 shall be determined as 
                        follows:
                                  ``(I) If any report filed by any 
                                organization with respect to the 
                                independent expenditure under section 
                                304 includes information on any person 
                                who made a payment to the organization 
                                in an amount equal to or exceeding 
                                $100,000 which was designated by the 
                                person to be used for campaign-related 
                                activity consisting of that specific 
                                independent expenditure (as required to 
                                be included in the report under section 
                                304(g)(5)(A)(i)), the person who is 
                                identified among all such reports as 
                                making the largest such payment.
                                  ``(II) If any report filed by any 
                                organization with respect to the 
                                independent expenditure under section 
                                304 includes information on any person 
                                who made a payment to the organization 
                                in an amount equal to or exceeding 
                                $100,000 which was designated by the 
                                person to be used for campaign-related 
                                activity with respect to the same 
                                election or in support of the same 
                                candidate (as required to be included 
                                in the report under section 
                                304(g)(5)(A)(i)) but subclause (I) does 
                                not apply, the person who is identified 
                                among all such reports as making the 
                                largest such payment.
                                  ``(III) If any report filed by any 
                                organization with respect to the 
                                independent expenditure under section 
                                304 includes information on any person 
                                who made a payment to the organization 
                                which was provided for the purpose of 
                                being used for campaign-related 
                                activity or in response to a 
                                solicitation for funds to be used for 
                                campaign-related activity (as required 
                                to be included in the report under 
                                section 304(g)(5)(A)(i)) but subclause 
                                (I) or subclause (II) does not apply, 
                                the person who is identified among all 
                                such reports as making the largest such 
                                payment.
                                  ``(IV) If none of the reports filed 
                                by any organization with respect to the 
                                independent expenditure under section 
                                304 includes information on any person 
                                (other than the organization) who made 
                                a payment to the organization which was 
                                provided for the purpose of being used 
                                for campaign-related activity or in 
                                response to a solicitation for funds to 
                                be used for campaign-related activity, 
                                but any of such reports includes 
                                information on any person who made an 
                                unrestricted donor payment to the 
                                organization (as required to be 
                                included in the report under section 
                                304(g)(5)(A)(ii)), the person who is 
                                identified among all such reports as 
                                making the largest such unrestricted 
                                donor payment.
                          ``(ii) Electioneering communications.--For 
                        purposes of this paragraph, the `significant 
                        funder' with respect to an electioneering 
                        communication paid for in whole or in part with 
                        a payment which is treated as a disbursement by 
                        a covered organization for campaign-related 
                        activity under section 325, shall be determined 
                        as follows:
                                  ``(I) If any report filed by any 
                                organization with respect to the 
                                electioneering communication under 
                                section 304 includes information on any 
                                person who made a payment to the 
                                organization in an amount equal to or 
                                exceeding $100,000 which was designated 
                                by the person to be used for campaign-
                                related activity consisting of that 
                                specific electioneering communication 
                                (as required to be included in the 
                                report under section 304(f)(6)(A)(i)), 
                                the person who is identified among all 
                                such reports as making the largest such 
                                payment.
                                  ``(II) If any report filed by any 
                                organization with respect to the 
                                electioneering communication under 
                                section 304 includes information on any 
                                person who made a payment to the 
                                organization in an amount equal to or 
                                exceeding $100,000 which was designated 
                                by the person to be used for campaign-
                                related activity with respect to the 
                                same election or in support of the same 
                                candidate (as required to be included 
                                in the report under section 
                                304(f)(6)(A)(i)) but subclause (I) does 
                                not apply, the person who is identified 
                                among all such reports as making the 
                                largest such payment.
                                  ``(III) If any report filed by any 
                                organization with respect to the 
                                electioneering communication under 
                                section 304 includes information on any 
                                person who made a payment to the 
                                organization which was provided for the 
                                purpose of being used for campaign-
                                related activity or in response to a 
                                solicitation for funds to be used for 
                                campaign-related activity (as required 
                                to be included in the report under 
                                section 304(f)(6)(A)(i)) but subclause 
                                (I) or subclause (II) does not apply, 
                                the person who is identified among all 
                                such reports as making the largest such 
                                payment.
                                  ``(IV) If none of the reports filed 
                                by any organization with respect to the 
                                electioneering communication under 
                                section 304 includes information on any 
                                person who made a payment to the 
                                organization which was provided for the 
                                purpose of being used for campaign-
                                related activity or in response to a 
                                solicitation for funds to be used for 
                                campaign-related activity, but any of 
                                such reports includes information on 
                                any person who made an unrestricted 
                                donor payment to the organization (as 
                                required to be included in the report 
                                under section 304(f)(6)(A)(ii)), the 
                                person who is identified among all such 
                                reports as making the largest such 
                                unrestricted donor payment.
          ``(5) Top 5 funders list described.--With respect to a 
        communication paid for in whole or in part with a payment which 
        is treated as a disbursement by a covered organization for 
        campaign-related activity under section 325, the Top 5 Funders 
        list described in this paragraph is--
                  ``(A) in the case of a disbursement for an 
                independent expenditure consisting of a public 
                communication, a list of the 5 persons (or, in the case 
                of a communication transmitted through radio, the 2 
                persons) who provided the largest payments of any type 
                which are required under section 304(g)(5)(A) to be 
                included in the reports filed by any organization with 
                respect to that independent expenditure under section 
                304, together with the amount of the payments each such 
                person provided; or
                  ``(B) in the case of a disbursement for an 
                electioneering communication, a list of the 5 persons 
                (or, in the case of a communication transmitted through 
                radio, the 2 persons) who provided the largest payments 
                of any type which are required under section 
                304(f)(6)(A) to be included in the reports filed by any 
                organization with respect to that electioneering 
                communication under section 304, together with the 
                amount of the payments each such person provided.
          ``(6) Method of conveyance of statement.--
                  ``(A) Communications transmitted through radio.--In 
                the case of a communication to which this subsection 
                applies which is transmitted through radio, the 
                disclosure statements required under paragraph (1) 
                shall be made by audio by the applicable individual in 
                a clearly spoken manner.
                  ``(B) Communications transmitted through 
                television.--In the case of a communication to which 
                this subsection applies which is transmitted through 
                television, the information required under paragraph 
                (1)--
                          ``(i) 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 6 seconds; 
                        and
                          ``(ii) except in the case of a Top 5 Funders 
                        list described in paragraph (5), shall also be 
                        conveyed by an unobscured, full-screen view of 
                        the applicable individual, or by the applicable 
                        individual making the statement in voice-over 
                        accompanied by a clearly identifiable 
                        photograph or similar image of the individual.
          ``(7) Applicable individual defined.--In this subsection, the 
        term `applicable individual' means, with respect to a 
        communication to which this paragraph applies--
                  ``(A) if the communication is paid for by an 
                individual or if the significant funder of the 
                communication under paragraph (4) is an individual, the 
                individual involved;
                  ``(B) if the communication is paid for by a 
                corporation or if the significant funder of the 
                communication under paragraph (4) is 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 or if the significant funder of the 
                communication under paragraph (4) is a labor 
                organization, the highest ranking officer of the labor 
                organization; or
                  ``(D) if the communication is paid for by any other 
                person or if the significant funder of the 
                communication under paragraph (4) is any other person, 
                the highest ranking official of such person.
          ``(8) Covered organization defined.--In this subsection, the 
        term `covered organization' means any of the following:
                  ``(A) Any corporation which is subject to section 
                316(a).
                  ``(B) Any labor organization (as defined in section 
                316).
                  ``(C) Any organization described in paragraph (4), 
                (5), or (6) of section 501(c) of the Internal Revenue 
                Code of 1986 and exempt from tax under section 501(a) 
                of such Code.
                  ``(D) Any political organization under section 527 of 
                the Internal Revenue Code of 1986, other than a 
                political committee under this Act.
          ``(9) Other definitions.--In this subsection, the terms 
        `campaign-related activity' and `unrestricted donor payment' 
        have the meaning given such terms in section 325.''.
          (3) Application to certain mass mailings.--Section 318(a)(3) 
        of such Act (2 U.S.C. 441d(a)(3)) is amended to read as 
        follows:
          ``(3) if not authorized by a candidate, an authorized 
        political committee of a candidate, or its agents, shall 
        clearly state--
                  ``(A) the name and permanent street address, 
                telephone number, or World Wide Web address of the 
                person who paid for the communication;
                  ``(B) if the communication is an independent 
                expenditure consisting of a mass mailing (as defined in 
                section 301(23)) which is paid for in whole or in part 
                with a payment which is treated as a disbursement by a 
                covered organization for campaign-related activity 
                under section 325, the name and permanent street 
                address, telephone number, or World Wide Web address 
                of--
                          ``(i) the significant funder of the 
                        communication, if any (as determined in 
                        accordance with subsection (e)(4)(C)(i)); and
                          ``(ii) each person who would be included in 
                        the Top 5 Funders list which would be submitted 
                        with respect to the communication if the 
                        communication were transmitted through 
                        television, if any (as determined in accordance 
                        with subsection (e)(5)); and
                  ``(C) that the communication is not authorized by any 
                candidate or candidate's committee.''.
          (4) Application to political robocalls.--Section 318 of such 
        Act (2 U.S.C. 441d), as amended by paragraph (2), is further 
        amended by adding at the end the following new subsection:
  ``(f) Special Rules for Political Robocalls.--
          ``(1) Requiring communications to include certain disclaimer 
        statements.--Any communication consisting of a political 
        robocall which would be subject to the requirements of 
        subsection (e) if the communication were transmitted through 
        radio or television shall include the following:
                  ``(A) The individual disclosure statement described 
                in subsection (e)(2) (if the person paying for the 
                communication is an individual) or the organizational 
                disclosure statement described in subsection (e)(3) (if 
                the person paying for the communication is not an 
                individual).
                  ``(B) If the communication is an electioneering 
                communication or an independent expenditure consisting 
                of a public communication and is paid for in whole or 
                in part with a payment which is treated as a 
                disbursement by a covered organization for campaign-
                related activity under section 325, the significant 
                funder disclosure statement described in subsection 
                (e)(4) (if applicable).
          ``(2) Timing of certain statement.--The statement required to 
        be included under paragraph (1)(A) shall be made at the 
        beginning of the political robocall.
          ``(3) Political robocall defined.--In this subsection, the 
        term `political robocall' means any outbound telephone call--
                  ``(A) in which a person is not available to speak 
                with the person answering the call, and the call 
                instead plays a recorded message; and
                  ``(B) which promotes, supports, attacks, or opposes a 
                candidate for election for Federal office.''.

      Subtitle C--Reporting Requirements for Registered Lobbyists

SEC. 221. REQUIRING REGISTERED LOBBYISTS TO REPORT INFORMATION ON 
                    INDEPENDENT EXPENDITURES AND ELECTIONEERING 
                    COMMUNICATIONS.

  (a) In General.--Section 5(d)(1) of the Lobbying Disclosure Act of 
1995 (2 U.S.C. 1604(d)(1)) is amended--
          (1) by striking ``and'' at the end of subparagraph (F);
          (2) by redesignating subparagraph (G) as subparagraph (I); 
        and
          (3) by inserting after subparagraph (F) the following new 
        subparagraphs:
                  ``(G) the amount of any independent expenditure (as 
                defined in section 301(17) of the Federal Election 
                Campaign Act of 1971 (2 U.S.C. 431(17)) equal to or 
                greater than $1,000 made by such person or 
                organization, and for each such expenditure the name of 
                each candidate being supported or opposed and the 
                amount spent supporting or opposing each such 
                candidate;
                  ``(H) the amount of any electioneering communication 
                (as defined in section 304(f)(3) of such Act (2 U.S.C. 
                434(f)(3)) equal to or greater than $1,000 made by such 
                person or organization, and for each such communication 
                the name of the candidate referred to in the 
                communication and whether the communication involved 
                was in support of or in opposition to the candidate; 
                and''.
  (b) Effective Date.--The amendments made by this section shall apply 
with respect to reports for semiannual periods described in section 
5(d)(1) of the Lobbying Disclosure Act of 1995 that begin after the 
date of the enactment of this Act.

   TITLE III--DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION ON 
                       CAMPAIGN-RELATED ACTIVITY

SEC. 301. REQUIRING DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION 
                    ON CAMPAIGN-RELATED ACTIVITY.

  Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 
et seq.), as amended by section 213, is amended by adding at the end 
the following new section:

``SEC. 327. DISCLOSURES BY COVERED ORGANIZATIONS TO SHAREHOLDERS, 
                    MEMBERS, AND DONORS OF INFORMATION ON DISBURSEMENTS 
                    FOR CAMPAIGN-RELATED ACTIVITY.

  ``(a) Including Information in Regular Periodic Reports.--
          ``(1) In general.--A covered organization which submits 
        regular, periodic reports to its shareholders, members, or 
        donors on its finances or activities shall include in each such 
        report the information described in paragraph (2) with respect 
        to the disbursements made by the organization for campaign-
        related activity during the period covered by the report.
          ``(2) Information described.--The information described in 
        this paragraph is, for each disbursement for campaign-related 
        activity--
                  ``(A) the date of the independent expenditure or 
                electioneering communication involved;
                  ``(B) the amount of the independent expenditure or 
                electioneering communication involved;
                  ``(C) the name of the candidate identified in the 
                independent expenditure or electioneering communication 
                involved, the office sought by the candidate, and (if 
                applicable) whether the independent expenditure or 
                electioneering communication involved was in support of 
                or in opposition to the candidate;
                  ``(D) in the case of a transfer of funds to another 
                person, the information required by subparagraphs (A) 
                through (C), as well as the name of the recipient of 
                the funds and the date and amount of the funds 
                transferred;
                  ``(E) the source of such funds; and
                  ``(F) such other information as the Commission 
                determines is appropriate to further the purposes of 
                this subsection.
  ``(b) Hyperlink to Information Included in Reports Filed With 
Commission.--
          ``(1) Requiring posting of hyperlink.--If a covered 
        organization maintains an Internet site, the organization shall 
        post on such Internet site a hyperlink from its homepage to the 
        location on the Internet site of the Commission which contains 
        the following information:
                  ``(A) The information the organization is required to 
                report under section 304(g)(5)(A) with respect to 
                public independent expenditures.
                  ``(B) The information the organization is required to 
                include in a statement of disbursements for 
                electioneering communications under section 304(f)(6).
          ``(2) Deadline; duration of posting.--The covered 
        organization shall post the hyperlink described in paragraph 
        (1) not later than 24 hours after the Commission posts the 
        information described in such paragraph on the Internet site of 
        the Commission, and shall ensure that the hyperlink remains on 
        the Internet site of the covered organization until the 
        expiration of the 1-year period which begins on the date of the 
        election with respect to which the public independent 
        expenditures or electioneering communications are made.
  ``(c) Covered Organization Defined.--In this section, the term 
`covered organization' means any of the following:
          ``(1) Any corporation which is subject to section 316(a).
          ``(2) Any labor organization (as defined in section 316).
          ``(3) Any organization described in paragraph (4), (5), or 
        (6) of section 501(c) of the Internal Revenue Code of 1986 and 
        exempt from tax under section 501(a) of such Code.
          ``(4) Any political organization under section 527 of the 
        Internal Revenue Code of 1986, other than a political committee 
        under this Act.''.

                       TITLE IV--OTHER PROVISIONS

SEC. 401. JUDICIAL REVIEW.

  (a) Special Rules for Actions Brought on Constitutional Grounds.--If 
any action is brought for declaratory or injunctive relief to challenge 
the constitutionality of any provision of this Act or any amendment 
made by this Act, 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 a 
        decision of the District Court may be taken to the Court of 
        Appeals for the District of Columbia Circuit.
          (2) A copy of the complaint shall be delivered promptly 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, the Court of Appeals for the 
        District of Columbia Circuit, and the Supreme Court of the 
        United States to advance on the docket and to expedite to the 
        greatest possible extent the disposition of the action and 
        appeal.
  (b) Intervention by Members of Congress.--In any action in which the 
constitutionality of any provision of this Act or any amendment made by 
this Act is raised, 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 or amendment. 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 intervenors taking similar 
positions to file joint papers or to be represented by a single 
attorney at oral argument.
  (c) Challenge by Members of Congress.--Any Member of the House of 
Representatives (including a Delegate or Resident Commissioner to the 
Congress) or Senate may bring an action, subject to the special rules 
described in subsection (a), for declaratory or injunctive relief to 
challenge the constitutionality of any provision of this Act or any 
amendment made by this Act.

SEC. 402. 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.

SEC. 403. EFFECTIVE DATE.

  Except as otherwise provided, this Act and the amendments made by 
this Act shall take effect upon the expiration of the 30-day period 
which begins on the date of the enactment of this Act, and shall take 
effect without regard to whether or not the Federal Election Commission 
has promulgated regulations to carry out such amendments.

                       Purpose of the Legislation


                              INTRODUCTION

    As a result of the United States Supreme Court's ruling in 
Citizens United vs. FEC, corporations and unions may for the 
first time in recent memory spend unlimited sums from their 
treasuries to influence federal elections. These funds will 
often be routed through other organizations, enabling the true 
funders to avoid disclosure. Unless action is taken, the public 
will be left in the dark to wonder whose interests are truly 
being served by the flood of negative advertising that will 
likely come to dominate campaigns. Voters will be unable to 
adequately evaluate the interests that support particular 
candidates, and will be impaired in placing candidates along 
the political spectrum. Candidates will not be able to discover 
who is behind these ads, leaving them unable to adequately 
disavow a purported supporter with whom the candidate 
disagrees. An environment will be created where disingenuous 
and untruthful advertising campaigns will be rewarded.
    To prosper, our democracy requires transparency and 
accountability in our political campaigns. The Committee 
believes that knowing the source of political spending allows 
voters to better assess the truthfulness and accuracy of the 
claims of the spenders and the candidates. It invites a healthy 
skepticism and allows voters to investigate the motives of the 
sponsor. By an 8-1 majority, the Supreme Court has strongly 
reaffirmed the constitutionality and necessity of laws that 
require the disclosure of political spending. Without the 
disinfectant of disclosure, the virus of deceitful campaigns 
will only spread.
    H.R. 5175, the Democracy is Strengthened by Casting Light 
on Spending in Elections Act (DISCLOSE Act), allows voters to 
follow the money, by requiring all covered organizations to 
report to the FEC within 24 hours their campaign-related 
activity and their transfers of money to other groups which are 
then available for campaign-related activity. Disclosing these 
transfers of money will ensure that special-interest money 
cannot hide behind sham organizations and shell corporations. 
If outside groups spend their funds in campaigns, voters have a 
right to know who is delivering and paying for the message. 
Under this bill, heads of organizations will be required to 
`stand by their ad' in the same way candidates must. The top 
funder of the ad must also `stand by their ad' and the top five 
contributors will be listed on the screen at the end of the ad.
    H.R. 5175 assures transparency and enhances accountability. 
The bill applies alike to corporations, labor unions, trade 
associations and non-profit advocacy organizations. H.R. 5175 
provides prompt and honest disclosure of political spending by 
all those seeking to influence our elections.
    The Committee is also concerned that the Citizens United 
decision may have the effect of opening the door to foreign 
nationals influencing our elections. From the inception of the 
Republic, Congress has been concerned with foreign governments 
and interests trying to exert influence on our elections. The 
Court's decision invites those interests to use corporations 
over which they have control to influence American elections. 
H.R. 5175 seeks to diminish the ability of corporations to 
circumvent existing law.
    The Committee is further concerned that large government 
contractors will use their financial muscle to maintain or gain 
unwarranted advantage in the procurement process. The Committee 
believes that corporate political spending could undermine the 
integrity of government contracting decisions, resulting in the 
perpetuation of unnecessary and wasteful projects. The 
Committee is concerned that small businesses seeking government 
contracts will be put at a substantial disadvantage.
    The public is likewise concerned with the potential 
consequences of the Citizens United decision. Indeed, the 
Committee received nearly 2,500 emails and roughly 4,500 phone 
calls in one week from the concerned citizens who urged 
Congress to consider legislation that addresses the loopholes 
created by the Citizens United ruling. The Committee believes 
that the DISCLOSE Act reflects the will of the American people.
    In sum, H.R. 5175 promotes openness in our politics. The 
legislation has bipartisan and popular support. The bill 
preparation has been exceptionally transparent, including 
releasing an outline of the bill well in advance of drafting, 
working with a bipartisan team to craft a bill based on that 
framework, and holding multiple hearings after releasing the 
actual bill for review. This early announcement of the bill's 
framework was intended to facilitate an open and healthy 
discussion. Six Congressional hearings, amongst numerous 
Committees of jurisdiction, were held on the Citizens United 
decision and the proper Congressional response. Members of both 
parties were invited to and did work on drafting a bill based 
on the framework. The DISCLOSE Act has been crafted in the open 
in the same spirit of openness that it strives to achieve for 
the campaign finance system.

 COMPELLING NEED FOR ADDITIONAL DISCLOSURE IN LIGHT OF CITIZENS UNITED

    The vast amount of money that the Citizens United decision 
makes available for use in influencing federal elections dwarfs 
what had previously been available. Candidates, who must 
operate under contribution limits designed to protect them from 
undue influence, are put at a great disadvantage. The Committee 
believes that legislative action is necessary to protect our 
electoral system against the dangers posed when vast corporate 
wealth can be unleashed anonymously to advance the interests of 
corporate managers, at the expense of shareholders and the 
public.
    The Committee is concerned about the potential risk that 
some corporate managers will misuse corporate funds to pursue 
their own personal and political objectives. This risk is not 
currently addressed in existing corporate governance 
mechanisms, state law, SEC regulations, or stock exchange 
rules.\1\ There are no rules that require corporate managers or 
company boards of directors to inform shareholders of decisions 
to spend corporate treasury money on elections. Corporations 
can now flood the campaign finance system secretly, without any 
disclosure or possibility of a private corporate governance 
response to correct this misuse. Indeed, these dangers have 
already begun to materialize, with business associations, 
unions, and other outside groups taking advantage of Citizens 
United to ``pour money'' into primary elections across the 
country--without disclosure of the major funding sources behind 
political ads.\2\
---------------------------------------------------------------------------
    \1\Coates, John, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010.
    \2\Kenneth P. Doyle, Outside Groups' Spending Crosses Line Into 
`Express Advocacy' Ads in House Race, BNA Money and Politics Report, 
May 14, 2010; see also ``Testimony of the Brennan Center at NYU School 
of Law before the Committee on House Administration, U.S. House of 
Representatives'' May 11, 2010, available at http://
www.brennancenter.org/page/-/Democracy/CFR/
BCtestimonyDISCLOSEact.pdf?nocdn=1.
---------------------------------------------------------------------------
    During the last election cycle, the Fortune 100 companies 
alone had combined revenues of $13.1 trillion and profits of 
$605 billion.\3\ In comparison, the 2,382 House and Senate 
candidates seeking office in 2008 spent a total of $1.38 
billion.\4\
---------------------------------------------------------------------------
    \3\Wertheimer, Fred, ``Pro & Con: Is the Supreme Court's Ruling on 
Campaigns bad for Democracy?'', Atlanta Journal-Constitution: January 
27, 2010.
    \4\Joseph Weber, ``Candidates cut back bucks for Hill seats,'' 
Washington Times: May 18, 2010.
---------------------------------------------------------------------------
    Total spending on federal elections in 2008 was more than 
$5.3 billion from political parties, outside groups, 
candidates, and PACs.\5\ One oil company alone made over $45 
billion dollars in profit in 2008, nine times the total amount 
spent on all federal elections.
---------------------------------------------------------------------------
    \5\``U.S. Election Will Cost $5.3 Billion, Center for Responsive 
Politics Predicts,'' Center for Responsive Politics: October 22, 2008.
---------------------------------------------------------------------------
    The Committee is concerned that these vast corporate 
resources, coupled with the lack of transparency and 
accountability in their use, will deny voters important 
information that they need to assess candidates and make 
decisions.\6\ Unidentified interests will determine the shape 
and course of campaigns. Those special interests will be able 
to do so without ever having to reveal themselves or subject 
their motives to public scrutiny.
---------------------------------------------------------------------------
    \6\Voters believe it is important to know the identity of sponsors 
of ads in making decisions. See McConnell v. FEC, 251 F. Supp. 176, 231 
(D.D.C. 2003) (quoting David B. Magleby, Report Concerning Interest 
Group Electioneering Advocacy and Party Soft Money Activity) (``Voters, 
when asked, have consistently indicated that they would like to know 
who it is that is conducting electioneering. In 2000 voters in Montana 
faced a competitive U.S. Senate and a competitive U.S. House race. A 
late October Montana State University-Billings Poll found that, 78 
percent of the survey respondents reported that it was ``very'' or 
``somewhat important'' for them to know who ``pays for or sponsors a 
political ad.'' Our focus group participants in 2000 had very similar 
views on the question of the importance of their knowing who is paying 
for or sponsoring an ad. More than four-fifths (81%) said it was very 
or somewhat important to know the identity of the sponsor. In the 
national Knowledge Networks Survey in 2000, 78 percent said the same 
thing.'').
---------------------------------------------------------------------------
    The efforts by corporations, unions, interest groups, and 
individuals to evade campaign finance restrictions or to hide 
or obfuscate their identities when making political 
expenditures are well-documented.\7\ It is now possible for 
corporations to donate anonymously to nonprofit civic leagues 
and trade associations.\8\ Under the current rules for outside 
groups, any entity, including a corporation or labor union, 
that directly spends money on electioneering communications or 
independent expenditure campaigns must report those 
expenditures to the Federal Election Commission (FEC), which 
discloses them to the public. But when that spending is done 
anonymously through an often complex, multi-layered series of 
transactions with nonprofit civic leagues and trade 
associations--many of which use vacuous or even misleading 
names--it allows the true spender behind a message to evade 
disclosure requirements and mislead voters.\9\ Citizens United 
exacerbates these problems, allowing nonprofit groups and 
associations that are not required to disclose their donors to 
use unlimited corporate or labor contributions to buy political 
commercials.
---------------------------------------------------------------------------
    \7\For example, the Committee is aware that in the 2006 California 
state controller's race, Intuit, a software corporation that 
distributes the ``Turbo Tax'' software program, funneled $1 million 
through a group called the Alliance for California Tomorrow, which made 
independent expenditures in support of a state controller who opposed 
the creation of a free-on-line tax preparation program for California 
residents. In Florida's 2006 gubernatorial primary, the U.S. Sugar 
Corporation funneled approximately $1 million in independent 
expenditures through deceptively-named fronts--``Florida's Working 
Families'' and ``The Coalition for Justice and Equality. In a 2007 
Colorado ballot measure election, a group called ``Littleton Neighbors 
Voting No'' spent $170,000 to defeat a zoning restriction that would 
have prevented a new Walmart. When the disclosure reports for these 
groups were filed, it was revealed that ``Littleton Neighbors'' was 
exclusively funded by Walmart. See Testimony of the Brennan Center for 
Justice at NYU School of Law before the House Committee on 
Administration, May 11, 2010; Dennis J. Ventry Jr., Intuit Uses Clout 
to Stymie State Innovation, Sacramento Bee, Oct. 6, 2009 (also see 
Campaign Finance Reports for Intuit and Alliance for California 
Tomorrow, available at http://cal- access.ss.ca.gov/default.aspx). 
Several other examples of ``veiled'' corporate and union spending are 
provided in Elizabeth Garrett & Daniel A. Smith, Veiled Political 
Actors and Campaign Disclosure Laws in Direct Democracy, 4 Election 
L.J. 295 (2005).
    \8\Holman, Craig, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010 
(explaining that most corporations are likely to funnel their political 
expenditures through intermediaries, namely, 501(c) nonprofit groups 
and section 527s with the same electoral agenda.)
    \9\See Elizabeth Garrett & Daniel A. Smith, Veiled Political Actors 
and Campaign Disclosure Laws in Direct Democracy, 4 Election L.J. 295, 
305 (2005). Anonymous spenders can also avoid reputational harm from 
taking political positions that some voters (or, in the case of certain 
corporations, customers and shareholders) may not like. See id.
---------------------------------------------------------------------------
    History has also provided ample cause for concern about 
these matters. The record assembled in McConnell v. FEC is rife 
with examples of corporate efforts to mask their identities and 
circumvent then-existing campaign finance laws in attempts to 
influence federal elections.\10\ Evidence was presented, for 
example, about a group called The Coalition--Americans Working 
for Real Change (``The Coalition'').\11\ The Coalition, which 
was funded by business interests and ran ads in the 1996 
election cycle that were paid for with corporate general 
treasury funds, ``was able to avoid FECA's disclosure 
requirements and hide its corporate sponsors behind an 
ambiguous and unobjectionable pseudonym.''\12\
---------------------------------------------------------------------------
    \10\See generally 251 F. Supp. 2d 176, 227-33, 438-537 (D.D.C. 
2003) (findings of fact in court's per curiam opinion and findings of 
fact by Judge Kollar-Kotelly); see also id. at 231(D.D.C. 2003) 
(quoting David B. Magleby, Report Concerning Interest Group 
Electioneering Advocacy and Party Soft Money Activity) (``[t]he current 
system places an unreasonable burden on voters to ascertain who is 
attempting to persuade them in an election. Our focus groups and survey 
data from 2000 show that to voters, party and interest group 
electioneering advertisements are indistinguishable from candidate 
advertisements. . . . Even the candidates and their campaign managers 
are unable to ascertain who some of the groups running ads were. . . . 
And in the CSED national survey, I found that respondents were often 
confused as to whether party ads were paid for by candidates or 
parties.'').
    \11\See id. at 542-43.
    \12\Id.; see also id. at 545 (``It is clear that The Coalition's 
issue advocacy campaign was designed to influence the 1996 general 
election and was accomplished through candidate-centered issue advocacy 
so as to avoid FECA's source and disclosure limitations.'') (opinion of 
Kollar-Kotelly, J.).
---------------------------------------------------------------------------
    Evidence was also presented about Citizens for Better 
Medicare (``CBM''), a group funded by the pharmaceutical 
industry. Judge Kollar-Kotelly found that CBM ``spent heavily 
on candidate-centered issue advertisements designed to 
influence the 2000 general election and paid for with the 
general treasury funds of their corporate members, thereby 
avoiding the source limitations of FECA.''\13\ As with The 
Coalition, CBM ``also used issue advocacy to avoid FECA's 
disclosure requirements.''\14\
---------------------------------------------------------------------------
    \13\Id. at 545.
    \14\Id.; see also id. at 546 (citing evidence from the record that 
CBM described itself as ``a grassroots organization representing the 
interests of patients, seniors, disabled Americans, small businesses, 
pharmaceutical research companies and many others concerned with 
Medicare reform.'')
---------------------------------------------------------------------------
    The district court in McConnell found these and other 
incidents detailed in its extensive record to be far from 
isolated, as it noted in its per curiam opinion that freedom 
from disclosure provisions ``permitted various interest groups 
to conceal the true identity of the source behind the 
advertisement.''\15\ Thus, the Court added, ``following both 
the 1996 and 2000 elections, corporations and unions used their 
general treasury funds to run advertisements apparently aimed 
at influencing federal elections and avoiding FECA's 
longstanding disclosure provisions.''\16\
---------------------------------------------------------------------------
    \15\Id. at 201.
    \16\Id.
---------------------------------------------------------------------------
    Many scholarly studies and expert reports support these 
findings. The Annenberg Public Policy Center, for example, in 
Issue Advertising in the 1999-2000 Election Cycle, found that 
``[i]ssue advocacy masks the identity of some key players and 
by so doing, it deprives citizens of information about sources 
of messages which research tells us is a vital part of 
assessing message credibility.''\17\ It also found that, 
``[o]ver the last three election cycles, the number of groups 
sponsoring ads has exploded, and consumers often don't know who 
these groups are, who funds them, and whom they 
represent.''\18\ Along similar lines, the Krasno & Sorauf 
expert report cited in the per curiam McConnell opinion noted 
that the public has difficulty identifying those responsible 
for issue advertisements that identify candidates.\19\
---------------------------------------------------------------------------
    \17\Annenberg Public Policy Center, Issue Advertising in the 1999-
2000 Election Cycle at 2.
    \18\Id. at 1.
    \19\See 251 F. Supp.2d at 229.
---------------------------------------------------------------------------
    Finally, testimony from various sources in the McConnell 
case supports the judges'--and our--views that corporations had 
been both circumventing disclosure obligations and obfuscating 
their identities. For example, political consultant Terry S. 
Beckett testified that
          [t]he Republican Leadership Council (``RLC'') also 
        ran so-called ``issue-ads'' on television in the 2000 
        Congressional campaign . . . . [Two of t]hese ads 
        accuse [Republican Candidate Ric] Keller of acting 
        ``like a liberal.'' I found it [ ] ironic, not to 
        mention unsettling, to learn of reports that the 
        hundreds of thousands of dollars the RLC spent on these 
        ads trying to defeat Mr. Keller were actually provided 
        by the Florida sugar industry . . . . And the fact that 
        I, a general consultant in this same race with long 
        high-level experience in Florida politics, was not 
        aware until earlier this year of whose money was behind 
        these ads strongly underlines the need for disclosure 
        of this kind of stealth electioneering financed with 
        corporate funds.\20\
---------------------------------------------------------------------------
    \20\Id. at 229-230 (quoting Declaration of Terry S. Beckett).
---------------------------------------------------------------------------
    In sum, the Committee is cognizant of the long history of 
circumvention of disclosure rules, and is particularly attuned 
to relatively recent efforts by corporations, as described in 
the McConnell opinion and evidenced in the McConnell litigation 
record as well as other sources, to evade disclosure rules and 
hide their identities. Given the new flood of corporate 
treasury funds likely to be spent on elections in the wake of 
Citizens United, efforts to devise ways to circumvent 
disclosure rules are likely to increase. This, together with 
evasion of current rules, makes it necessary to put in place 
the enhanced disclosure requirements in this legislation.

              H.R. 5175 PROVIDES FOR EFFECTIVE DISCLOSURE

    The bill makes numerous reporting improvements in the 
current reporting system. All campaign-related expenditures 
made by a corporation, union, section 501(c)(4), or (6) 
organization, or section 527 organization must be disclosed on 
the organization's website with a clear link on the homepage 
within 24 hours of reporting such expenditures to the FEC. 
Additionally, all campaign-related expenditures made by a 
corporation, union, section 501(c)(4), or (6) organization, or 
section 527 organization must be disclosed to shareholders and 
members of the organization in any financial reports the 
organization already provides on a periodic and/or annual basis 
to its shareholders or members.
    The enhanced disclosure requirements of H.R. 5175 are 
needed to ensure that ``corporations live up to their civic 
responsibility by providing disclosure to the public through 
disclaimers and the Internet, directly to their stockholders or 
members, and to the Federal Election Commission.''\21\ The bill 
increases transparency for the public as to who is financing 
independent campaign ads and fills in many of the holes of the 
existing system, specifically as it relates to the practice of 
funneling campaign money through agents and conduits.\22\ 
Moreover, various factors--including the advent of the 
Internet, where particular communications can be circulated and 
remain available for viewing long after they are first 
broadcast, and the increasing frequency of political campaigns 
that effectively begin long before election day--have rendered 
the existing system of disclosure and disclaimer requirements 
(including the limited time periods during which some of those 
requirements currently apply) inadequate to protect fully the 
government's interest in ensuring that the electorate is fully 
informed about the sources of election-related spending, and 
that shareholders and citizens alike have the information they 
need to hold corporations and elected officials accountable for 
their positions and supporters.
---------------------------------------------------------------------------
    \21\Gilbert, Lisa ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010.
    \22\Holman, Craig, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010 ( 
urging that the ``enhancement of transparency alone makes this measure 
a valuable response to the Citizens United decision that Congress 
should approve without delay.'')
---------------------------------------------------------------------------
    H.R. 5175 is likewise an important corrective to the new 
corporate governance and electoral risks created by Citizens 
United. Requiring real-time, ongoing disclosure of election 
expenditures, allows shareholders and the public to monitor the 
use of corporations' capital in the election context, and take 
whatever actions they want to discipline such corporations if 
they are found to misuse their funds.\23\ An effective 
disclosure regime must provide the information critical for 
voter comprehension in an easy to understand and timely 
fashion.\24\ A survey of corporate directors reveals that the 
majority agree with the need for disclosure and transparency 
and do not believe that additional reporting requirements for 
corporate political spending would be too burdensome and 
costly.\25\ The DISCLOSE Act recognizes that American voters 
are at minimum entitled to full and accurate reporting of 
campaign spending so that voters may know who is truly behind 
an attempt to influence their vote. Moreover, the Committee 
recognizes that modern campaigns have increased in length, such 
that earlier disclosure is necessary.\26\
---------------------------------------------------------------------------
    \23\Coates, John, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010 
(explaining that ``Investors will be able to learn the level of new 
political activity permitted by Citizens United in the companies in 
which they invest. They can look for patterns consistent with 
managerial pursuit of private interests. If patterns are found, they 
can engage in self-help, by selling their shares, by suing managers for 
`waste' of corporate assets or by proposing bylaw amendments to 
directly control political activity, or if managers act particularly 
egregiously, to pressure boards to discipline managers.''
    \24\See Elizabeth Garrett & Daniel A. Smith, Veiled Political 
Actors and Campaign Disclosure Laws in Direct Democracy, 4 Election 
L.J. 295, 327 (2005).
    \25\A 2008 survey of corporate directors found that 88% agreed with 
the proposition that corporations should be required to publicly 
disclose all corporate funds used for political purposes, and a 
majority of directors (57%) likewise disagreed with the proposition 
that additional reporting requirements and transparency in corporate 
political spending would be too burdensome and costly. Mason-Dixon 
Polling and Research, 2008 Nationwide Survey of Members of Corporate 
Boards of Directors.
    \26\See, e.g., Norman J. Ornstein and Thomas E. Mann, eds. The 
Permanent Campaign and its Future. Washington, D.C.: American 
Enterprise Institute Press, 2000, at vii (``Candidates for the 
presidency and Congress are now in a perpetual campaign mode. . . . The 
line between campaigning and governing has all but disappeared, with 
campaigning increasingly dominant.''). See also ``In Campaign 2008, 
Candidates Starting Earlier, Spending More,'' Washington Post, Feb. 7, 
2007.
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    The Supreme Court has consistently endorsed the principle 
that the public has the right to know about expenditures being 
made to influence election campaigns, and about the sources 
that are providing the funds used for such expenditures.\27\In 
Citizens United, the Supreme Court strongly reaffirmed the 
constitutionality of laws that require the disclosure of the 
money spent by such corporations to influence federal 
elections. An 8-1 majority of the U.S. Supreme Court explicitly 
stated that the type of disclosure in H.R. 5175 is ``not only 
constitutional, but is the expected and indeed necessary 
counter-balance to the new corporate right to expend unlimited 
funds in U.S. elections.''\28\ In his majority opinion, Justice 
Kennedy wrote, ``The First Amendment protects political speech; 
and disclosure permits citizens and shareholders to react to 
the speech of corporate entities in a proper way.''\29\
---------------------------------------------------------------------------
    \27\Simon, Donald, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010.
    \28\Potter, Trevor, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010 
(urging Congress to require complete disclosure in time for the 2010 
elections).
    \29\Citizens United v. FEC, 558 U.S._, 55 (2010).
---------------------------------------------------------------------------

               H.R. 5175 IMPROVES DISCLAIMER REQUIREMENTS

    The pervasive nature of campaign advertising means that 
most Americans, even those who might not be otherwise engaged 
in the political process, will come into contact with campaign 
advertising. Moreover, the lengthy nature of most modern 
campaigns means that many Americans will be exposed to campaign 
advertising for an extended period prior to the actual 
election. Many of these Americans may lack ready access to the 
information provided through the disclosure requirements. For 
this reason, disclaimers on the advertising itself are 
particularly important in improving the knowledge of the 
American people about who is funding independent expenditures 
and electioneering communications to influence Federal 
elections. Effective disclaimers enable the American people to 
assess advertisements as they see or hear them, making them 
aware of the sources of funding behind advertisements, and 
enabling them to use that information to help evaluate the 
persuasiveness of the advertisements. Effective disclaimers can 
also alert the electorate to connections between different 
advertisements, such as when different advertisements are 
supported by the same funding source. It is thus particularly 
important that disclaimers on all advertising be presented in a 
manner that can be quickly and easily understood, and is likely 
to be observed and retained, by those seeing or hearing the 
advertisement.
    H.R. 5175 enhances disclaimers to identify sponsors of 
advertisements in a variety of mediums--broadcast television 
advertising, radio advertising, political robo-calls, and mass 
mailings. Leaders of corporations, unions, and organizations 
are required to identify that they are behind political ads. If 
any covered organization (corporation, union, section 
501(c)(4), or (6) organization, or section 527 organization) 
makes disbursements for an independent expenditure or 
electioneering communication, the CEO or highest ranking 
official of that organization will be required to appear on 
camera to say that he or she ``approves this message,'' just 
like candidates have to do now.
    H.R. 5175 requires the CEO of a corporation or head of any 
other covered organization to personally appear in the 
organization's independent expenditure or electioneering 
communication TV ads and take responsibility for the ad by 
stating that the corporation or other organization approves the 
message. The same statement must be read by the CEO or head of 
the organization in radio advertising. This stand-by-your-ad 
provision is similar to the stand-by-your-ad requirement that 
applies to federal candidates under current law. In addition, 
the legislation requires the top funder of a TV or radio ad 
also to appear in the ad and take responsibility for it. 
Academic literature demonstrates that information about those 
behind political ads is crucial for informed voter decision-
making and that oral or audio disclaimers substantially improve 
listener comprehension.\30\
---------------------------------------------------------------------------
    \30\See, e.g., Elizabeth Garrett & Daniel A. Smith, Veiled 
Political Actors and Campaign Disclosure Laws in Direct Democracy 
(2005); Noel M. Murray, et al., Public Policy Relating to Consumer 
Comprehension of Television Commercials: A Review and Some Empirical 
Results (1993).
---------------------------------------------------------------------------
    Additionally, for independent expenditure or electioneering 
communication ads that appear on TV, a covered organization 
must also list the top 5 funders who provided the largest 
payments to the covered organization that are available to be 
used to pay for the ads. This listing helps the public, at the 
time they see the ad, to obtain information about the sponsors 
and funders of an ad, which helps them evaluate the ad to 
``make informed decisions'' because they are now able to ``give 
proper weight to different speakers and messages.''\31\
---------------------------------------------------------------------------
    \31\Citizens United, at 55.
---------------------------------------------------------------------------
    In Citizens United, the Supreme Court upheld the disclaimer 
provisions in H.R. 5175 on grounds similar to the reasons it 
cited in support of disclosure requirements. The Court noted 
that disclaimer requirements, like disclosure, ``impose no 
ceiling'' on campaign-related activities, and ``do not prevent 
anyone from speaking.''\32\ Instead, they provide the 
electorate with information, and ensure that the voters are 
fully informed about the person or group who is speaking. ``At 
the very least, the disclaimers avoid confusion by making clear 
that the ads are not funded by a candidate or political 
party.''\33\
---------------------------------------------------------------------------
    \32\Id. at 51
    \33\Id. at 53.
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            H.R. 5175 PROTECTS TAXPAYER DOLLARS FROM MISUSE

    Under current law, government contractors are barred from 
making contributions to federal candidates.\34\ Under existing 
FEC regulations, they are also barred from making expenditures 
to influence federal elections.\35\ The reason for these 
longstanding laws is that federal contractors have a direct 
contractual relationship with the federal government and a 
heightened financial interest in government contracting 
decisions. The government has a compelling interest in ensuring 
that federal contractors, including corporations, do not use 
the power of their treasuries to buy favoritism in the federal 
contracting process.
---------------------------------------------------------------------------
    \34\2 U.S.C. Sec. 441c.
    \35\11 C.F.R. Sec. 115.2(a).
---------------------------------------------------------------------------
    There should be no pay-to-play in the award of government 
contracts. Campaign contributions from and expenditures by 
companies applying for and receiving government contracts and 
TARP funds should be limited to ensure that the American people 
can have faith in the fairness of how those funds are awarded. 
Objective contracting criteria, and not special access, 
influence, or ingratiation resulting from political 
expenditures--or outright quid pro quo corruption--should 
determine how taxpayer dollars are spent. By the same token, 
contractors are in a position where they are vulnerable to 
government officials who might directly or indirectly pressure 
them to make expenditures in order to receive or keep contracts 
vital to their business. The integrity of the government 
contracting process has long been, and should continue to be, 
protected from coercion.
    A wide range of government officials, including officials 
without any official role in the contracting process, have the 
ability to influence the award of government contracts through 
their informal relationships with fellow officials and other 
means. Further, the public perceives that this wide range of 
officials, including those without any official role in the 
contracting process, have the ability to influence the award of 
government contracts. To ensure that the restriction on 
independent expenditures and electioneering communications 
achieves its objectives, the Committee believes it is necessary 
for it to extend to all political parties, committees, and 
candidates for Federal office.
    Like government contracts, financial assistance under title 
I of the Emergency Economic Stabilization Act of 2008 must be 
awarded, and must be perceived to be awarded and have been 
awarded, based on specific statutory criteria, and not based on 
other forms of inappropriate or corrupting influence. For the 
reasons explained above and in the bill's findings, the 
Committee believes it is necessary to extend the prohibition on 
independent expenditures and electioneering communications to 
recipients of funds under title I of the Emergency Economic 
Stabilization Act of 2008.
    Accordingly, the DISCLOSE Act provides that contractors who 
have contracts with a value of $7 million or more are 
prohibited from making independent expenditures or 
electioneering communications in federal elections. This 
threshold was chosen to reflect the standard generally applied 
by the Small Business Administration to determine small 
business status. The same restrictions apply to recipients of 
TARP funds until such funds have been paid back. These 
requirements build on existing law and regulations, which have 
long prohibited contributions and expenditures by government 
contractors, whether contractors are corporations or not. 
Government contractors have been permitted, and will continue 
to be permitted, to make expenditures from a federal PAC.

         H.R. 5175 PREVENTS FOREIGN INFLUENCE IN U.S. ELECTIONS

    The danger of foreign interference in American affairs, and 
the power and duty of the Congress to guard against it, have 
been recognized since the very beginning of our Nation's 
history.\36\ Over the years, foreign interests have 
demonstrated a specific desire and capacity to exert influence 
over United States elections and elections officials through 
political expenditures and electioneering. In 1966, Congress 
amended the Foreign Agents Registration Act to require complete 
public disclosure by persons acting for or in the interests of 
foreign principals--and to ban them from making political 
contributions--after hearing evidence of ``persistent efforts'' 
by foreign persons and concerns to influence American policy 
and elections.\37\ In the 1990s, a Senate Committee found 
significant evidence that political contributions were being 
made at the secret direction of the Chinese government.\38\ 
More recently, courts have also faced instances of attempts at 
foreign intrusion in federal elections.\39\ These are but a few 
examples.
---------------------------------------------------------------------------
    \36\The Federalist NO. 3 (John Jay) (``At present I mean only to 
consider it as it respects security for the preservation of peace and 
tranquility, as well as against dangers from foreign arms and 
influence, as from dangers of the like kind arising from domestic 
causes. . . . Let us therefore proceed to examine whether the people 
are not right in their opinion that a cordial Union, under an efficient 
national government, affords them the best security that can be devised 
against hostilities from abroad.'').
    \37\Foreign Agents Registration Act Amendments of 1966, Pub. L. No. 
89-486, 80 Stat. 244; S. Rep. No. 89-143 (1965).
    \38\S. Rep. No. 105-167 (1998).
    \39\See, e.g., U.S. v. Kanchanalak, 192 F.3d 1037 (D.C. Cir. 1999) 
(defendants disguised illegal contributions from foreign nationals).
---------------------------------------------------------------------------
    Well-settled law therefore already prohibits foreign 
nationals, whether citizens, businesses or governments, from 
voting in American elections and making political contributions 
and expenditures.\40\ Although the Court in Citizens United 
left open the question ``whether the Government has a 
compelling interest in preventing foreign individuals or 
associations from influencing our Nation's political 
process,''\41\ its decision has the practical effect of making 
such foreign influence possible. Current law defines foreign 
nationals to include foreign corporations--those organized 
under the law of a foreign country or with a principal place of 
business in a foreign country--but does not include domestic 
U.S. corporations that are owned or controlled by foreign 
nationals.\42\ Until Citizens United was decided, all 
corporations were barred from making campaign contributions or 
expenditures, and it was therefore unnecessary for Congress to 
address the distinct concerns raised by foreign-owned or -
controlled U.S. corporations. The effect of Citizens United, 
however, is that, while foreign nationals are banned from 
making contributions or expenditures to influence U.S. 
elections, domestic subsidiaries or affiliates controlled by 
these very same foreign corporations can make unrestrained 
expenditures to influence the outcome of elections or the 
decisions of elected officials.\43\
---------------------------------------------------------------------------
    \40\2 U.S.C. Sec. 441e.
    \41\Citizens United, 130 S. Ct. at 911.
    \42\Lynch, Elizabeth, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010 
(noting that for foreign corporations doing business in the United 
States, it is common to establish a U.S. subsidiary corporation.
    \43\Holman, Craig, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010.
---------------------------------------------------------------------------
    The risk to our political process posed by foreign 
influence is not merely theoretical. According to Internal 
Revenue Service data, as of 2005 there were roughly 62,000 
corporations with at least one 25+% foreign owner,\44\ and 
these companies' control over all corporate assets had risen 
dramatically, from just 1.3% in 1971 to roughly 13.9% in 
2005.\45\ It is now common for foreign corporations to own U.S. 
corporations in whole or in part, as in the case of Anheuser-
Busch (Belgian parent), 7-Eleven (Japanese parent), Ben & 
Jerry's (British parent), and T-Mobile USA (German parent).\46\ 
United States corporate equity and debt are also held by 
foreign individuals and sovereign wealth funds: China 
Investment Corporation (9% stake in Morgan Stanley); Abu Dhabi 
Investment Authority (4.9% stake in Citigroup); and Kingdom 
Holding, a company run by a member of the Saudi royal family 
(4.3% stake in Citigroup).\47\ United States companies are even 
owned or controlled by foreign nationals themselves: CITGO 
(owned by Petroleos de Venezuela S.A., controlled by President 
Hugo Chavez); Houston's Aramco Services Company (a wholly-owned 
subsidiary of Saudi Arabian Oil Company, the national oil 
company of Saudi Arabia); and U.S. subsidiaries of the CITIC 
Group (the state-owned investment company of the People's 
Republic of China) and OAO Gazprom (the world's largest natural 
gas company, controlled by the Russian government).\48\
---------------------------------------------------------------------------
    \44\See ``SOI Tax Stats--Foreign-Controlled Domestic 
Corporations,'' found at http://www.irs.gov/taxstats/bustaxstats/
article/0,,id=96311,00.html.
    \45\``Foreign Ownership of U.S. Companies Jumps,'' Reuters, Aug. 
27, 2008.
    \46\See Jeff May, InBev completes purchase of Anheuser-Busch, New 
Jersey Business News, November 18, 2008, available at http://
www.nj.com/business/index.ssf/2008/11/
inbev_completes_purchase_of_an.html; 7-Eleven Profile, available at 
http://www.7- eleven.com/NewsRoom/BackgroundInformation/7ElevenProfile/
tabid/164/Default.aspx; http://www.benjerry.com/company/sear/2008/
sear08_4.0.cfm; http://www.hoovers.com/company/T-Mobile_Usa_Inc/
hskkri_1.html.
    \47\Lynch, Elizabeth, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010.
    \48\Coates, John, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010; 
Lynch, Elizabeth, ``Statement before the U.S. House of Representatives' 
Committee on House Administration,'' May 11, 2010.
---------------------------------------------------------------------------
    These foreign-controlled domestic companies have a 
demonstrated desire and capacity to influence Federal elections 
and elected officials. Contributions by political action 
committees (PACs) of foreign-parent companies have risen every 
election cycle in the last decade, more than doubling from 
roughly $7.7 million in 2000 to roughly $16.9 million in 
2008.\49\ Records of lobbying disclosures by such companies 
pursuant to the Foreign Agents Registration Act reveal 
extensive, well-funded attempts to influence elected 
officials.\50\ One specific example is particularly 
illustrative: The U.S. subsidiary of a foreign-controlled 
energy company has spent over $20 million on lobbying activity 
since January 2009, increased its contributing activity through 
its PAC, made independent expenditures to defeat a state ballot 
initiative, and made corporate donations to Republican and 
Democratic governors' associations even after pledging to its 
shareholders that it would not make political expenditures.\51\ 
And now after Citizens United, these foreign-parent U.S. 
companies would be free to use their general treasuries for 
political spending--general treasuries that had total receipts 
in 2005 of approximately $3.5 trillion.\52\
---------------------------------------------------------------------------
    \49\See http://www.opensecrets.org/pacs/foreign.php. See also 
Stephanie Kirchgaessner, BAE Among Top Foreign Donors to U.S. Political 
Candidates, Financial Times, August 22, 2006 (``BAE, the British 
defence group, has emerged as one of the most powerful corporate 
contributors to candidates in the current U.S. election cycle, ranking 
number 18 in a list of the biggest corporate donors.''); U.S. Elections 
Got More Foreign Cash--PAC's of Overseas Companies Gave $2.3 Million in 
1986 Congress Campaigns, N.Y. Times, A27 (May 24, 1987); Tom Hamburger 
& Greg Gordon, U.S. Foreign Policy is Target of a World of Political 
Donors: Millions Linked to Other Countries, Minneapolis-St. Paul Star-
Trib., Mar. 16, 1997, at 21A.
    \50\The Department of Justice posts FARA records at http://
www.justice.gov/criminal/fara/links/quick-search.html.
    \51\Dan Eggen, BP is getting more political, and that may help 
weather oil-spill storm, Wash. Post, May 6, 2010, at A17; John M. 
Biers, Activists Say BP Breaking Promise On Campaign Donations, Dow 
Jones Energy Service, Nov. 7, 2006, available at http://
www.politicalaccountability.net/index.php?ht=display/ArticleDetails/i/
1209/pid/188. For state expenditure data, see http://
www.followthemoney.org.
    \52\``Foreign Ownership of U.S. Companies Jumps,'' Reuters, Aug. 
27, 2008.
---------------------------------------------------------------------------
    H.R. 5175 strengthens current law by closing this Citizens 
United loophole to ensure that foreign corporations--and 
foreign governments--are not permitted to spend unlimited sums 
through their United States subsidiaries or affiliates in an 
effort to influence American elections. H.R. 5175 does this by 
defining ``foreign nationals'' as any corporation where foreign 
nationals have the ability to direct, dictate or control the 
decision making process as it pertains to interests in the U.S.
    H.R. 5175 also extends the existing prohibition on 
contributions and expenditures by foreign nationals to include 
domestic corporations by banning campaign expenditures from: a 
corporation whose voting shares are 20 percent or more owned by 
a foreign principal;\53\ corporations where a majority of the 
board of directors are foreign nationals; and corporations in 
which a foreign national or nationals have the power to direct, 
dictate or control the decision making with respect to the 
corporation's interests in the United States. H.R. 5175 
clarifies that foreign persons are not permitted to use U.S. 
corporations to engage in activities that are and should be 
limited to U.S. citizens. In doing so, this bill simply 
reinforces what Congress has already done in numerous other 
areas of law, including purchases of stock of U.S. companies 
involved in telecommunications, airlines, defense contracting, 
maritime shipping, fishing, banking, mutual funds, nuclear 
energy, or any activity foreign control of which is deemed a 
threat to national security.\54\
---------------------------------------------------------------------------
    \53\As has been recognized in state corporations law, individuals 
who hold 20% or more of the voting shares of a company frequently 
exercise de facto control of the company. See 8 Del. C. Sec. 203(c)(4). 
Even in circumstances where such individuals do not exercise de facto 
control, they possess significant and perceptible influence over the 
company's decisions.
    \54\Coates, John, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 11, 2010.
---------------------------------------------------------------------------
    The threat of foreign government involvement in U.S. 
elections is real, and preventing the threat of foreign 
influence in U.S. elections is necessary to protect our 
democracy. In order to ensure compliance with the new rules of 
H.R. 5175, CEOs of a corporation are required to file an annual 
certification with the FEC prior to the corporation making any 
contribution or expenditure in that year with regard to a U.S. 
election, attesting that the company is not prohibited from 
making the contribution or expenditure by the new foreign 
national rules. H.R. 5175 serves a vital governmental interest 
by preventing the reality or appearance of foreign intervention 
in U.S. elections.

               H.R. 5175 TREATS ALL ORGANIZATIONS EQUALLY

    The DISCLOSE Act is fair and equitable, and not partisan, 
in its impact. It applies alike to corporations, labor unions, 
trade associations and non-profit advocacy organizations and 
does not play political favorites.
    H.R. 5175 provides prompt and honest disclosure of 
political spending by all those seeking to influence our 
elections. The vast majority of the bill deals with disclosure, 
and everyone has to disclose. Both unions and corporations are 
required to make full disclosure, and to stand by their 
advertisements. Both are required to have their lobbyists 
disclose their expenditures. The bill treats similarly-situated 
unions and corporations exactly the same across-the-board.
    The other provisions of the bill treat similarly-situated 
entities alike. For example, under the new contractor rules, if 
a union contracts with the government, it is covered by the 
exact same rules that cover corporations. Of course, unions do 
not receive TARP funds, but that should not be an argument to 
exempt TARP recipients. H.R. 5175's foreign corporation rules 
are principally focused on foreign investors and foreign 
sovereign wealth funds that dominate and control U.S. 
subsidiaries.

              H.R. 5175 STRENGTHENS RULES ON COORDINATION

    The Citizens United decision also allows corporations and 
labor unions to make campaign-related expenditures, as long as 
that spending is independent from any candidate or party. 
Campaign expenditures by corporations and unions that are 
coordinated with a candidate or party are still restricted. 
Thus, the definition of ``coordination'' becomes the important 
line between spending by a corporation or union which is 
permissible, and that which is not.\55\
---------------------------------------------------------------------------
    \55\Simon, Donald, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010 
(testifying that ``The Court in Citizens United was clear that it 
believed the key hedge against quid pro quo corruption resulting from 
campaign-related corporate spending is the requirement that such 
spending be independent of, i.e., not coordinated with, the candidate 
who is benefitted.''
---------------------------------------------------------------------------
    H.R. 5175 strengthens and codifies existing FEC regulations 
that define the types of public communications that are subject 
to the coordination standard. The bill prevents organizations 
from coordinating their campaign-related expenditures with 
candidates and parties in violation of rules that require these 
expenditures to be independent. Current FEC rules bar outside 
spenders from coordinating with congressional candidates and 
parties about ads that refer to the candidate and are 
distributed within 90 days of a primary election or within 90 
days of the general election. For Presidential contests, 
current FEC rules prohibit coordination on ads that reference a 
presidential candidate in the period beginning 120 days before 
a state's Presidential primary election and continuing in that 
state through the general election.
    For House and Senate races, the legislation would ban 
coordination between an outside spender and the candidate on 
ads referencing a Congressional candidate in the time period 
starting 90 days before the primary and continuing through the 
general election. For presidential races, the legislation would 
ban such coordination during the period from 120 days before 
the first presidential primary through the general election. 
For the period outside the window, existing law remains in 
effect.
    Additionally, H.R. 5175 provides that any payment by a 
political party committee for the direct costs of an ad or 
other communication made on behalf of a candidate affiliated 
with the party is treated as a contribution to the candidate 
only if the communication is directed or controlled by the 
candidate. Party-paid communications that are not directed or 
controlled by the candidate are not subject to limits on the 
party's contributions or expenditures.

        H.R. 5175 IMPROVES DISCLOSURE BY LOBBYING ORGANIZATIONS

    The DISCLOSE Act incorporates new reporting requirements on 
independent expenditures and electioneering communications for 
registered lobbyists, which will improve the transparency of 
lobbying activities. All registrants under the Lobbying 
Disclosure Act must disclose the date and amount of each 
independent expenditure or electioneering communication greater 
than $1,000 and the name of each candidate referred to or 
supported or opposed following information on their periodic 
lobbying disclosure reports.
    This provision will improve disclosure of activities by 
lobbyists, who are in the business of trying to influence 
government decisions. When lobbyists or lobbying organizations 
make campaign expenditures to influence elections, they are 
often done as a part of their efforts to influence 
legislation.\56\ Requiring campaign spending by registered 
lobbyists to be reported together with their other lobbying 
activities will give the public better access to the full 
picture of how lobbyists operate to affect government outcomes. 
The comprehensive disclosure provisions of H.R. 5175 will 
provide the public with a check on the ability of lobbyists to 
exert undue influence over elected officials.
---------------------------------------------------------------------------
    \56\Simon, Donald, ``Statement before the U.S. House of 
Representatives' Committee on House Administration,'' May 6, 2010.
---------------------------------------------------------------------------

        IMPROVEMENTS MADE TO H.R. 5175 DURING COMMITTEE MARK-UP

    A number of amendments to the DISCLOSE Act were adopted 
during committee mark-up that reflects the debate within the 
Committee and an effort to adopt measures where a bipartisan 
consensus could be found. The adopted amendments strengthen the 
following sections:

Ban on contributions and expenditures by foreign nationals

    A new section was added to permit U.S. citizens employed by 
U.S. subsidiaries of foreign countries to form and make 
voluntary contributions to separate segregated funds, or 
political action committees (PACs), provided that the PACs do 
not accept any contributions from foreign nationals, and no 
foreign national has the ``power to direct, dictate or control 
the establishment or administration of the fund.'' This 
amendment protects a U.S. citizen's First Amendment rights, 
codifies existing FEC regulations, and reasonably ensures that 
foreign nationals cannot use U.S. subsidiaries as a vehicle to 
influence American elections.
    An amendment was also adopted that provides charitable and 
civic donations and PAC contributions and expenditures may be 
made without a prior certification regarding foreign national 
status. The Committee believes that certification regarding 
these payments is unnecessary.

Coordinated communications

    Technical amendments have been made to clarify the purpose 
of this section and conform the definition of ``public 
communication'' to that contained in the regulations of the 
Federal Election Commission. The amendment exempts from the 
definition of ``coordination'' any information a ``person'' 
provides to a candidate or committee regarding that person's 
position on a legislative or policy matter, so long as that 
person and the candidate or committee do not discuss a campaign 
for Federal office. Current FEC regulations on coordination 
which allow for ``safe harbors'' and ``firewalls'' were also 
preserved.

Electioneering communication

    The amendment requires all filing of independent 
expenditure and electioneering communication reports to be done 
electronically. The FEC is also required to ensure that 
independent expenditure reports are publicly available through 
the Commission website within 24 hours after receipt in a 
manner that is downloadable in bulk and machine readable.
    Another amendment was adopted that requires any independent 
expenditures or electioneering communications valued over 
$10,000 to be filed electronically in a manner that is 
searchable, sortable, and downloadable. This type of filing 
discloses information to voters more quickly, and cuts down on 
unnecessary data entry by the FEC, making it faster for covered 
organizations to comply with disclosure requirements on their 
own Web sites.

Additional information to be included in reports on disbursements by 
        covered organizations

    These amendments close a loophole that exempts the 
reporting of transfers that are commercial transactions 
occurring in the ordinary course of business, clarifies the 
rules regarding the deeming of transfers by a person or a 
covered organization made for the purpose of making public 
expenditures so that they are clearer in capturing actual 
examples of solicitation, and exempts from reporting internal 
transfers made within covered organizations such as dues 
between state and local and national organizations or 
membership dues between national branches of membership 
organizations and their state affiliates, like the Sierra Club 
or NRA.

CEO certification

    Written certification notice deadlines requiring a CEO to 
provide written confirmation after a donor and a covered 
organization have mutually agreed that a donation or transfer 
is not to be used for political activity were extended from 
seven to thirty days. The revisions also allow a CEO to appoint 
an appropriate designee to handle the certification and modify 
the requirements of the certification.

Disclaimer statements on certain communications

    A ``hardship'' exemption was added to the mandatory radio 
and television disclaimers if the communication is of such 
``short duration'' that the disclaimer statement constitutes a 
``disproportionate amount of the communication's content,'' as 
determined by regulations to be promulgated by the FEC. This 
provision addresses the criticism that the disclaimer 
requirements in the bill as introduced were too onerous and 
would dilute the ability of speakers to deliver their political 
message in short ads, and unfairly increase the cost and burden 
of political ads.
    A new provision was added to the DISCLOSE Act to require 
spoken disclosure of the top two funders during a radio ad, 
increasing accountability of radio ads.

Disclosures by covered organizations of information on campaign related 
        activity

    The bill was amended to require covered organizations who 
maintain an Internet site to post on their Internet site a 
hyperlink to the location on the Internet site of the FEC which 
contains its reports to the FEC on its public independent 
expenditures and electioneering communications. The covered 
organization will be required to post this hyperlink on their 
Internet site 24 hours after the FEC post such reports and for 
a 1-year period, which provides the public with easy access to 
corporate disclosure reports.

Government contractor threshold

    The threshold on government contractors provision was 
raised to $7 million, reflecting the standard generally applied 
by the Small Business Administration to determine small 
business status.

Disclosure for political robocalls attacking or defending candidates 
        for Federal office

    The bill was amended to establish disclosure requirements 
for political robocalls attacking or defending candidates for 
Federal office. This amendment preserves the legitimate uses of 
political robocalls. With the addition of a disclosure 
statement, voters immediately know who is responsible for the 
call, and cannot be misled into blaming a candidate for 
harassing calls that the candidate did not originate.

Protecting Internet communications

    An amendment was adopted that codified current Federal 
Election Commission regulations to guarantee that Internet 
communications will not be treated as general public political 
advertising under the Commission's regulations, unless the 
communication was placed for a fee on another person's Web 
site. This amendment will protect free speech and the free 
exchange of ideas and debate over the Internet.
    These amendments have improved H.R. 5175 by facilitating 
greater transparency and disclosure for federal elections.

                               CONCLUSION

    The DISCLOSE Act is a careful and constitutional response 
to certain of the likely consequences of the Citizens United 
decision, and it serves to promote democratic deliberation 
through transparency and accountability in our nation's 
elections. H.R. 5175 is intended to provide shareholders and 
the public with information that the Supreme Court has 
recognized is essential to hold them accountable when they 
choose to participate in electoral activity. Voters have the 
right to know who is attempting to influence their vote, and 
enactment of the DISCLOSE Act will help to assure that right.

                  Committee Consideration of H.R. 5175


                       INTRODUCTION AND REFERRAL

    On April 29, 2010, Representative Van Hollen of Maryland, 
Representative Brady of Pennsylvania, Representative Castle of 
Delaware, and Representative Jones of North Carolina, 
introduced H.R. 5175, which was referred to the Committee on 
House Administration, with an additional referral to the 
Committee on the Judiciary.

                                HEARINGS

    On February 3, 2010, the Committee on House Administration 
held a hearing entitled ``Defining the Future of Campaign 
Finance in an Age of Supreme Court Activism.'' The following 
members were present at the hearing: Chairman Robert Brady, 
Representative Zoe Lofgren, Representative Michael Capuano, 
Representative Susan Davis, Representative Artur Davis, Ranking 
Minority Member Dan Lungren, Representative Kevin McCarthy, and 
Representative Gregg Harper.

Witnesses

    1. Mr. Robert Lenhard--Of Counsel, Covington & Burling LLP
    2. Ms. Judith A. Browne-Dianis--Co-Director, Advancement 
Project
    3. Ms. Mary G. Wilson--President, League of Women Voters
    4. Ms. Ciara Torres-Spelliscy--Counsel, Brennan Center for 
Justice
    5. Ms. Allison Hayward--Assistant Professor of Law, George 
Mason University School of Law
    6. Mr. Steve Simpson--Senior Attorney, Institute for 
Justice
    On May 6, 2010, the Committee on House Administration held 
a hearing entitled ``H.R. 5175, the DISCLOSE ACT, Democracy is 
Strengthened by Casting Light on Spending in Elections.'' The 
following members were present at the hearing: Chairman Robert 
Brady, Representative Zoe Lofgren, Representative Michael 
Capuano, Representative Susan Davis, Representative Charles 
Gonzalez, Ranking Minority Member Dan Lungren, Representative 
Kevin McCarthy, and Representative Gregg Harper.

Witnesses

    1. Mr. Donald J. Simon--Partner, Sonosky, Chambers, Sachse, 
Enderson, & Perry, LLP
    2. Mr. Nick Nyhart--President & CEO, Public Campaign
    3. The Honorable Theodore B. Olson--Partner, Gibson, Dunn & 
Crutcher, LLP
    4. Mr. David Bossie--President, Citizens United
    5. Ms. Lisa Gilbert--Democracy Advocate, U.S. PIRG
    6. Mr. Craig Holman--Legislative Representative, Public 
Citizen
    On May 11, 2010, the Committee on House Administration held 
a hearing entitled ``Additional Discussion on H.R. 5175, the 
DISCLOSE ACT, Democracy is Strengthened by Casting Light on 
Spending in Elections.'' The following members were present at 
the hearing: Chairman Robert Brady, Representative Zoe Lofgren, 
Representative Michael Capuano, Ranking Minority Member Dan 
Lungren, and Representative Gregg Harper.

Witnesses

    1. The Honorable Trevor Potter--President and General 
Counsel, Campaign Legal Center
    2. Mr. John C. Coates--Professor of Law and Economics, 
Harvard Law School
    3. Ms. Elizabeth Lynch--Attorney, China Law & Policy
    4. The Honorable Michael Toner--Partner, Bryan Cave, LLP
    5. Mr. William McGinley--Attorney, Patton Boggs, LLP

                                 MARKUP

    On May 20, 2010, the Committee met to mark up H.R. 5175. 
The Committee ordered H.R. 5175 reported favorably, as amended, 
by a voice vote, with a quorum present. Chairman Brady offered 
a ``Chairman's Mark'' as an amendment in the nature of a 
substitute, which became the vehicle for perfecting amendments. 
During the markup the following seven amendments to the Brady 
substitute were agreed to by a voice vote.

Rep. Davis (of California) amendment to Brady substitute

    Representative Davis of California offered an amendment to 
the Brady substitute to require that any independent 
expenditures or electioneering communications valued over 
$10,000 will be filed electronically in a manner that is 
searchable, sortable, and downloadable, with either the 
Commission's downloadable, free filing software, FEC.gov's web-
accessible entry form, or Commission-approved third-party 
software. The amendment was agreed to by a voice vote.

Rep. McCarthy amendment #6 to the Brady substitute

    Representative McCarthy offered an amendment to the Brady 
substitute to provide that charitable and civic donations and 
PAC contributions and expenditures may be made without a prior 
certification regarding foreign national status. The amendment 
was agreed to by a voice vote.

Rep. McCarthy amendment #11A to Brady substitute

    Representative McCarthy offered an amendment to the Brady 
substitute to provide that communications disseminated over the 
Internet will not be treated as a form of general public 
political advertising subject to the Federal Election Campaign 
Act, provided that the communication was not placed for a fee 
on another person's Web site. The amendment was agreed to by a 
voice vote.

Rep. Lofgren amendment #1 to Brady substitute

    Representative Lofgren offered an amendment to the Brady 
substitute to provide technical changes regarding the 
mislabeling of Subtitle A and B as well as to clarify in 
Section 103 that sharing information regarding legislative or 
policy positions does not fall under the coordination rules as 
long as there is no discussion between the person and the 
candidate regarding the candidate's campaign as opposed to any 
federal campaign. The amendment also corrected language in 
Section 102(d) of the Act. The amendment was agreed to by a 
voice vote.

Rep. Lofgren amendment #2 to Brady substitute

    Representative Lofgren offered an amendment to the Brady 
substitute to amend Section 318 of the Federal Election 
Campaign Act of 1971, as amended, to require a disclaimer at 
the beginning of political robo-calls identifying who is 
funding the call. The amendment was agreed to by a voice vote.

Rep. Lofgren amendment #3 to Brady substitute

    Representative Lofgren offered an amendment to the Brady 
substitute to amend Section 101(b) to raise the threshold level 
at which government contractors would be banned from making 
independent expenditures and electioneering communications to 
those contractors with contracts in excess of $7 million 
dollars. The amendment was agreed to by a voice vote.

Rep. Capuano amendment #4 to Brady substitute

    Representative Capuano offered an amendment to the Brady 
substitute to require spoken disclosure of the `Top 2 Funders' 
during a radio advertisement. The amendment was agreed to by a 
voice vote.

                Section-by-Section Summary of H.R. 5175


                         (AS ORDERED REPORTED)

Section One--Short title

    Establishes the short title of ``Democracy is Strengthened 
by Casting Light on Spending in Elections Act,'' or the 
DISCLOSE Act. This section also provides a table of contents 
for the bill.

Section Two--Findings

    Among the principal findings were:
    <bullet> Throughout the history of the United States people 
have been concerned about the power of special interests to 
control our democratic processes.
    <bullet> The U.S. Supreme Court's decision in Citizens 
United v. F.E.C. reversed existing jurisprudence when it 
permitted corporations and labor unions to spend unlimited sums 
from their treasury accounts to influence elections.
    <bullet> Congress must take action to ensure the public has 
all the information necessary to make informed decisions and 
exercise its free speech and voting rights.
    <bullet> Government contracts must be awarded based on an 
objective evaluation of how well bidders or potential 
contractors meet relevant statutory criteria, and the process 
must avoid the appearance of, or actual, improper influence.
    <bullet> Independent expenditures and electioneering 
communications benefiting particular candidates or disfavoring 
opponents can lead to apparent and actual access, influence, 
and or even quid pro quo arrangements, and prohibiting 
expenditures and communications will ensure that government 
officials involved in the contracting process do not influence 
the contract process inappropriately.
    <bullet> Prohibiting independent expenditures and 
electioneering communications by persons negotiating for or 
performing government contract work will prevent such persons 
from feeling pressure to make political expenditures in order 
to maximize their chances of receiving government contracts.
    <bullet> The U.S. Supreme Court's decision in Citizens 
United v. F.E.C. has provided the means by which U.S. 
corporations controlled by foreign entities can freely spend 
money to influence elections.
    <bullet> The Federal Government has broad constitutional 
power to protect American interests and sovereignty from 
foreign interference, and Congress has a clear interest in 
minimizing foreign intervention as well as the perception of 
foreign intervention in our elections.
    <bullet> It has been the consistent view of Congress and 
the courts that coordinated expenditures in campaigns are no 
different in nature from contributions, and that independent 
campaign expenditures have the potential to give rise to the 
reality of corruption to the same degree as direct 
contributions to candidates, and thus have the potential to 
lessen the public's trust and faith in the rules and integrity 
of the election process.
    <bullet> The government has a compelling interest in making 
sure that political expenditures that are defacto coordinated 
with a candidate are treated as such to prevent corruption and 
the appearance of corruption.
    <bullet> The American people have a compelling interest in 
knowing who is funding independent expenditures and 
electioneering communication to influence elections, and the 
government has a compelling interest in providing that 
information to the public so that it may make informed voting 
decisions.
    <bullet> Effective disclaimers and prompt disclosure of 
expenditures, and the disclosing of funding sources for those 
expenditures, can provide shareholders, voters, and citizens 
with the information to evaluate the actions of special 
interests.
    <bullet> Transparency promotes accountability, increases 
the fund of information available to the public concerning 
support given to candidates by special interests, sheds the 
light of publicity on political spending, and encourages 
leaders of organizations to act only upon legitimate 
organizational purposes.
    <bullet> Ensuring effective disclosure is particularly 
important to address the anticipated increase in special 
interest spending resulting from the Supreme Court's decision 
in Citizens United v. F.E.C.
    <bullet> More rigorous disclosure and disclaimer 
requirements are necessary to protect against the evasion of 
current rules. Robust disclaimer requirements are necessary to 
ensure that the electorate is informed about who is paying for 
a particular election-related communication and shareholders 
are aware of their organizations' election-related spending.
    <bullet> In recent years, scandals involving undue lobbyist 
influence over matters of public policy and legislation have 
lowered public trust in government.
    <bullet> One way in which lobbyists may unduly influence 
Federal officials is through independent expenditures targeting 
elected officials.
    <bullet> Disclosure of independent expenditures by 
lobbyists will allow the public to examine connections between 
such spending and official actions as well as limit the ability 
of lobbyists to exert an undue influence on elected officials.

           TITLE I--REGULATION OF CERTAIN POLITICAL SPENDING

Sec. 101. Prohibiting independent expenditures and electioneering 
        communications by government contractors

    Prohibits a person (including a corporation) who has a 
contract with the United States government valued at $7,000,000 
or more from making ``campaign related expenditures'' (defined 
as independent expenditures and electioneering communications). 
This threshold reflects the standard generally applied by the 
Small Business Administration to determine small business 
status.
    Prohibits a person (including a corporation) who enters 
into negotiations for financial assistance under TARP from 
making ``campaign related expenditures'' until the negotiations 
end or the financial assistance is repaid.

Sec. 102. Application of ban on contributions and expenditures by 
        foreign nationals to foreign-controlled domestic corporations

    Bans contributions and expenditures by any domestic 
corporation in which (1) a foreign national owns 20% or more of 
the voting shares, (2) a majority of the board of directors are 
foreign nationals, or (3) a foreign national has the power to 
direct, dictate or control the decision-making process of the 
corporation with respect to its interests in the U.S. or with 
respect to activities in connection with a federal, state, or 
local election.
    Requires a corporation's CEO, or highest ranking official, 
to file an annual certification with the FEC, certifying that 
the corporation is not foreign-controlled, prior to making 
``campaign related expenditures.''
    Sec. 102 does not limit the ability of any corporation--
other than a foreign national--to maintain a separate 
segregated fund, provided that no foreign national or nationals 
make contributions into the fund or direct, dictate, or control 
the fund.
    Provides that charitable and civic donations, and 
contributions and expenditures by a political action committee 
may be made without prior certification regarding foreign 
national status.

Sec. 103. Treatment of payments for coordinated communications as 
        contributions

    Defines a coordinated communication as (1) a ``covered 
communication'' made in cooperation, consultation, or concert 
with, or at the request or suggestion of a candidate, or a 
political committee of a political party, or (2) any 
communication that republishes, disseminates, or distributes 
campaign material prepared by a candidate or an authorized 
committee of a candidate.
    A ``covered communication'' is defined as a ``public 
communication as defined in section 301(22)'' that refers to a 
clearly defined candidate for Federal office and is distributed 
in the candidate's district during the applicable election 
period.
    For Presidential candidates, a ``covered communication'' is 
a ``public communication'' that refers to the candidate during 
the period beginning 120 days before the first primary and 
ending on the day of the general election. The applicable 
election period for a candidate for any other Federal office is 
90 days before the primary or nominating convention and ending 
with the date of the general election for such office.
    ``Covered communications'' exclude both communications that 
qualify for the ``media exemption'' and communications that 
constitute a candidate debate or forum (if made by the debate 
or forum sponsor). Coordination also may not be found based 
solely on sharing of information or policy positions, provided 
that there is no discussion regarding the candidate's campaign. 
This section also clarifies that solely sharing information 
about a legislative or policy position does not warrant 
coordination as long as there is no discussion regarding any 
campaign for Federal office between the person and candidate or 
committee; and adds language to preserve current FEC 
regulations on coordination which allow for ``safe harbors'' 
and ``firewalls.''

Sec. 104. Treatment of political party communications made on behalf of 
        candidates

    Excludes political party communications from being treated 
as contributions to candidates as long as the communications 
are not controlled by or at the direction of the candidate or 
an authorized committee of the candidate.

 TITLE II--PROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGN RELATED ACTIVITY

 SUBTITLE A--TREATMENT OF INDEPENDENT EXPENDITURES AND ELECTIONEERING 
                   COMMUNICATIONS MADE BY ALL PERSONS

Sec. 201. Independent expenditures

    Revises definition of independent expenditure to include 
express advocacy of the election or defeat of a candidate, or 
its functional equivalent.
    Expands reporting requirements to include a report be filed 
within 24 hours of any independent expenditure that is either 
(1) greater than or equal to $10,000 prior to twenty days 
before an election, or (2) greater than or equal to $1,000 
within twenty days of an election.
    Requires the Federal Election Commission to ensure that the 
independent expenditure reports be publicly available though 
the Commission's website not later than 24 hours after receipt 
in a manner that is downloadable in bulk and machine readable.

Sec. 202. Electioneering communications

    Expands the period during which communications are treated 
as electioneering communications to 120 days before the general 
election.
    Requires the electronic filing of all electioneering 
communication reports and that the Federal Election Commission 
make them publicly available through its website not later than 
24 hours after receipt in a manner that is downloadable in bulk 
and machine readable.

     SUBTITLE B--EXPANDED REQUIREMENTS FOR CORPORATIONS AND OTHER 
                             ORGANIZATIONS

Sec. 211. Additional information required to be included in reports on 
        disbursements by covered organizations

    Requires corporations, labor unions, 527 Organizations, and 
Section 501(c)(4) and (6) organizations making independent 
expenditures over $10,000 in political campaigns to report: (1) 
all donors making designated donations or payments for campaign 
related activities in the aggregate amount of $600; (2) all 
donors making unrestricted payments in an aggregated amount 
greater than or equal to $600 or in an aggregate amount greater 
than or equal to $6,000 if the disbursements were made 
exclusively from the organizations Campaign Related Activity 
Account. In addition, all reporting must include the specific 
candidate the donation was made for as for as well as the 
specific expenditure it was designated for.
    Specifies that an organization that transfers amounts to 
another ``person'' (other than the covered organization itself) 
to make an independent expenditure and electioneering 
communication is considered to have made an independent 
expenditure and electioneering communication and is thus 
subject to the reporting requirements. The transfer of funds 
for commercial transactions is not subject to these reporting 
requirements.
    Defines the following scenarios in which a person or a 
covered organization is deemed to have transferred funds to 
another person for the purpose of making independent 
expenditures: (1) if the person designates, requests or 
suggests that the amount be used for public independent 
expenditures and the person to whom the amounts were 
transferred agrees to do so or does so; (2) if the person 
making the public independent expenditure or another person 
acting on that person's behalf expressly solicited the person 
for a donation for any public independent expenditure; (3) the 
person and person to whom amounts were transferred engaged in 
substantial written or oral discussion regarding the making or 
paying for any public independent expenditure; (4) the person 
or the persons transferred knew or had reason to know of the 
covered organization's intent to make public independent 
expenditures; or (5) the person or the person to whom amounts 
were transferred made a public independent expenditure during 
the 2-year period which ends on the date on which the amounts 
were transferred.
    Adds language in Section 211 to clarify that a commercial 
transaction occurring in the ordinary course of business 
between the person and the person to whom the amounts were 
transferred shall not be deemed an independent expenditure, 
unless there is affirmative evidence that the amounts were 
transferred for the purpose of making a public independent 
expenditure.
    Specifies that donations designated for campaign activity 
related to other candidates and elections should be excluded 
when determining the amount of donations to report, and that 
any amounts paid from a separate segregated fund are also 
excluded in determining the amount of public independent 
expenditures.

Sec. 212. Rules regarding use of general treasury funds by covered 
        organizations for campaign-related activity

    Permits all covered organizations to make disbursements for 
campaign-related activity using: amounts paid or donated to the 
organization that have been designated by the donor for such 
purposes; unrestricted donor payments made to the organization; 
and/or other funds of the organization such as funds received 
from commercial activities.
    Provides that if a covered organization and a person 
mutually agree that the person's donation, payment or transfer 
is not to be used for campaign-related activity, the 
organization will transmit to that person within 30 days a 
written certification by the chief financial officer or the 
highest ranking financial official of the organization that the 
person's donation, payment or transfer will not be used for 
campaign-related activity.
    Requires that the CEO or highest ranking official or 
designee of an covered organization making disbursements for 
campaign related activity file a statement with the Federal 
Election Commission not later than 15 days after the end of the 
quarter certifying the following: (1) the campaign related 
activity was not in any way coordinated with any candidate or 
agent or authorized committee of such candidate, (2) the CEO or 
highest ranking official of the organization has reviewed and 
approved each statement, (3) the statement is complete and 
accurate, (4) the expenditure is in compliance with this Act, 
and (5) there are no funds used that were designated by a donor 
to specifically not be used for campaign-related activities.

Sec. 213. Optional use of separate account by covered organizations for 
        campaign-related activity

    Provides that all covered organizations may establish a 
Campaign-Related Activity Account to make disbursements for 
campaign-related activity.
    Prohibits covered organizations setting up Campaign-Related 
Activity Accounts from making disbursements for campaign-
related activity from any other account.
    Requires Campaign-Related Activity Accounts to be used 
exclusively for campaign-related activity.
    Restricts deposits into the Campaign-Related Activity 
Accounts to the following: those donated for campaign-related 
activity; those that are not designated for a specific 
candidate or election; those that are in response to a 
solicitation for funds; and/or those that are from the 
organizations' general treasury funds.
    Specifies that the establishment of Campaign-Related 
Activity Accounts shall not be treated as political committee.
    Requires covered organizations to reduce the amount of its 
revenues available for deposit into the Campaign-Related 
Activity Account by the donation made during the year when a 
donor notifies the organization in writing that its payment may 
not be used for campaign-related activities.

Sec. 214. Modification of rules relating to disclaimer statements 
        required for certain communications

    Requires corporations, labor unions, 527 organizations, and 
Section 501(c)(4) and (6) organizations to issue individual 
disclosure statements or organizational disclosure statements 
on all radio and television ads. The provision provides a 
specific script for the individual and organization disclosure 
statements and requires them to be transmitted through audio 
for radio ads and clearly displayed in print for six seconds on 
television ads.
    Requires all electioneering communication or public 
communication expenditures paid for in whole or in part by a 
covered organization/person to include a Significant Funder 
Disclosure statement. The provision provides a specific script 
for the individual and organization Significant Funder 
Disclosure statements and requires them to be transmitted 
through audio for radio ads and clearly displayed in print for 
six seconds on television ads.
    Requires television advertising produced by covered 
organizations to include a full screen disclosure of its Top 
Five Funders (the largest payments of any type), and their 
donations amounts. Radio advertising will require spoken 
disclosure of top 2 funders of the advertising. Also provides 
for a hardship exemption to mandatory radio and television 
disclaimers if the communication is so short that the 
disclaimer statement constitutes a ``disproportionate amount of 
the communication's content''
    Defines Significant Funder for independent expenditures and 
electioneering communications as: (1) person making payment 
greater or equal to $100,000 and who has designated such funds 
for that specific independent expenditure/electioneering 
communication, (2) person making payment greater or equal to 
$100,000 and who has designated such funds for the same 
election or in support of the same candidate, (3) person making 
the largest payment for independent expenditure/electioneering 
communication in response to a solicitation of funds to be sued 
for campaign-related activity, and (4) person who made the 
largest unrestricted donor payment.
    Requires a disclaimer at the beginning of political robo-
calls identifying who is the funder of the robo-call.

      SUBTITLE C--REPORTING REQUIREMENTS FOR REGISTERED LOBBYISTS

Sec. 221. Requiring registered lobbyists to report information on 
        independent expenditures and electioneering communications

    Requires registered lobbyists to report the amount of 
independent expenditures and electioneering communications 
greater than or equal to $1,000 along with the name of each 
candidate being supported or opposed and the amount spent 
supporting or opposing each such candidate.

   TITLE III--DISCLOSURE BY COVERED ORGANIZATIONS OF INFORMATION ON 
                       CAMPAIGN-RELATED ACTIVITY

Sec. 301. Requiring disclosure by covered organizations of information 
        on campaign-related activity

    Requires corporations, labor unions, 527 organizations, and 
Section 501(c)(4) and (6) organizations that submit regular, 
periodic reports to its shareholders, members or donors to 
include in each report the date of the independent expenditure 
or electioneering communication, the amount, the name of the 
candidate identified, the office sought by the candidate, 
whether the independent expenditure or electioneering 
communication was in support or opposition, the name of the 
recipient of transferred funds (if applicable), the source of 
the funds, and other information that may be required by the 
Federal Election Commission.
    Requires any covered organization which maintains a website 
to post a link on their website to their reports on public 
independent expenditures and electioneering communications to 
the Federal Election Commission 24 hours after the Commission 
makes such reports publicly available and for that the link 
remain on the site for a 1-year period.

                       TITLE IV--OTHER PROVISIONS

Sec. 401. Judicial review

    Requires any action for declaratory or injunctive relief 
challenging provisions within this Act on constitutional 
grounds to first be filed in the United States District Court 
for the District of Columbia and on appeal to the Court of 
Appeals for the District of Columbia Circuit. In addition this 
provision requires any compliant to be delivered to the Clerk 
of the House and the Secretary of the Senate, as directs that 
the courts expedite to the greatest extent possible the 
disposition of any action and appeal.
    Provides any Congressional Member with the ability to 
intervene in any action related to the constitutionality of 
this Act, and the ability to bring an action, subject to the 
judicial review established in the Act, for injunctive relief 
to challenge the constitutionality of any provision within the 
legislation.
    Specifies that if any provision in this Act is ruled 
unconstitutional the remainder of the Act shall not be affected 
by the holding.
    Establishes an effective date for all provisions of 30 days 
after enactment of the legislation.

             Matters Required Under the Rules of the House


                       COMMITTEE ROLL CALL VOTES

    Clause 3(b) of House rule XIII requires the results of each 
recorded vote on an amendment or motion to report, together 
with the names of those voting for and against, to be printed 
in the committee report. Chairman Brady introduced an amendment 
in the nature of a substitute to address issues that were 
raised during the course of the Committee hearings and meetings 
with various stakeholders.

Rep. Lungren amendment #2 to Brady substitute

    Representative Lungren offered an amendment to the Brady 
substitute to provide that the prohibition on expenditures by 
government contractors shall also apply to labor unions having 
representational contracts with the government. The amendment 
was not agreed to by a record vote of 3 ayes to 5 noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................        --         X        --
Rep. Capuano..............................        --         X        --
Rep. Gonzalez.............................        --        --        --
Rep. Davis (CA)...........................        --         X        --
Rep. Davis (AL)...........................        --         X        --
Rep. Lungren..............................         X        --        --
Rep. McCarthy.............................         X        --        --
Rep. Harper...............................         X        --        --
Rep. Brady................................        --         X        --
                                           -----------------------------
    Total.................................         3         5        --
------------------------------------------------------------------------

Rep. Lungren amendment #5 to Brady substitute

    Representative Lungren offered an amendment to the Brady 
substitute to require that the highest ranking official of a 
labor organization certify that no dues were received from any 
foreign national prior to the making of an independent 
expenditure or electioneering communication. The amendment was 
not agreed to by a record vote of 3 ayes to 6 noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................        --         X        --
Rep. Capuano..............................        --         X        --
Rep. Gonzalez.............................        --         X        --
Rep. Davis (CA)...........................        --         X        --
Rep. Davis (AL)...........................        --         X        --
Rep. Lungren..............................         X        --        --
Rep. McCarthy.............................         X        --        --
Rep. Harper...............................         X        --        --
Rep. Brady................................        --         X        --
                                           -----------------------------
    Total.................................         3         6        --
------------------------------------------------------------------------

Rep. Harper amendment #10 to Brady substitute

    Representative Harper offered an amendment to the Brady 
substitute to delay the Act's effective date to January 1, 
2011. The amendment was not agreed to by a record vote of 3 
ayes to 5 noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................        --         X        --
Rep. Capuano..............................        --         X        --
Rep. Gonzalez.............................        --         X        --
Rep. Davis (CA)...........................        --         X        --
Rep. Davis (AL)...........................        --        --        --
Rep. Lungren..............................         X        --        --
Rep. McCarthy.............................         X        --        --
Rep. Harper...............................         X        --        --
Rep. Brady................................        --         X        --
                                           -----------------------------
    Total.................................         3         5        --
------------------------------------------------------------------------

Rep. McCarthy amendment #7 to Brady substitute

    Representative McCarthy offered an amendment to the Brady 
substitute to provide that no funds obtained by a union through 
a government-administered payroll deduction program may be used 
for political expenditures. The amendment was not agreed to by 
a record vote of 3 ayes to 5 noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................        --         X        --
Rep. Capuano..............................        --         X        --
Rep. Gonzalez.............................        --         X        --
Rep. Davis (CA)...........................        --         X        --
Rep. Davis (AL)...........................        --        --        --
Rep. Lungren..............................         X        --        --
Rep. McCarthy.............................         X        --        --
Rep. Harper...............................         X        --        --
Rep. Brady................................        --         X        --
                                           -----------------------------
    Total.................................         3         5        --
------------------------------------------------------------------------

Rep. McCarthy amendment #9 to Brady substitute

    Representative McCarthy offered an amendment to the Brady 
substitute to lower the contribution amount at which donor 
disclosure is required to the same as the itemized level for 
political committees. The amendment was not agreed to by a 
record vote of 3 ayes to 4 noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................        --         X        --
Rep. Capuano..............................        --         X        --
Rep. Gonzalez.............................        --        --        --
Rep. Davis (CA)...........................        --         X        --
Rep. Davis (AL)...........................        --        --        --
Rep. Lungren..............................         X        --        --
Rep. McCarthy.............................         X        --        --
Rep. Harper...............................         X        --        --
Rep. Brady................................        --         X        --
                                           -----------------------------
    Total.................................         3         4        --
------------------------------------------------------------------------

Rep. Lungren amendment #13 to Brady substitute

    Representative Lungren offered an amendment to the Brady 
substitute to ban all political expenditures by labor 
organizations representing employees of government contractors. 
The amendment was not agreed to by a record vote of 3 ayes to 4 
noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................        --         X        --
Rep. Capuano..............................        --         X        --
Rep. Gonzalez.............................        --        --        --
Rep. Davis (CA)...........................        --         X        --
Rep. Davis (AL)...........................        --        --        --
Rep. Lungren..............................         X        --        --
Rep. McCarthy.............................         X        --        --
Rep. Harper...............................         X        --        --
Rep. Brady................................        --         X        --
                                           -----------------------------
    Total.................................         3         4        --
------------------------------------------------------------------------

    Following consideration of perfecting amendments, the 
Committee agreed to the Brady amendment in the nature of a 
substitute, as amended, by a record vote of 5 ayes to 3 noes.

------------------------------------------------------------------------
                  Member                      Ayes      Noes     Present
------------------------------------------------------------------------
Rep. Lofgren..............................         X        --        --
Rep. Capuano..............................         X        --        --
Rep. Gonzalez.............................        --        --        --
Rep. Davis (CA)...........................         X        --        --
Rep. Davis (AL)...........................         X        --        --
Rep. Lungren..............................        --         X        --
Rep. McCarthy.............................        --         X        --
Rep. Harper...............................        --         X        --
Rep. Brady................................         X        --        --
                                           -----------------------------
    Total.................................         5         3        --
------------------------------------------------------------------------

                        Constitutional Authority

    Clause 3(d)(1) of House rule XIII requires each committee 
report on a public bill or joint resolution to include a 
statement citing the specific constitutional power(s) granted 
to the Congress on which the Committee relies for enactment of 
the measure under consideration. The Committee states that 
Article 1, Section 4 of the U.S. Constitution grants Congress 
the authority to make laws governing the time, place and manner 
of holding Federal elections.

                  Congressional Budget Office Estimate

    Clause 3(c)(3) of House rule XIII requires the report of a 
committee on a measure which has been approved by the committee 
to include a cost estimate prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the CBA, 
if timely submitted. The Director submitted the following 
estimate:

                                                      May 24, 2010.
Hon. Robert A. Brady,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5175, the DISCLOSE 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5175--DISCLOSE Act

    Summary: H.R. 5175 would amend the Federal Election 
Campaign Act of 1971 to require that additional campaign-
spending information be reported to the Federal Election 
Commission (FEC) and that additional information be made 
available to the public. In addition, the legislation would 
extend or create new prohibitions on political spending by 
certain government contractors, recipients of funds from the 
Troubled Asset Relief Program (TARP), and companies controlled 
by foreign nationals.
    CBO estimates that implementing H.R. 5175 would cost $2 
million in fiscal year 2011 and about $10 million over the 
2011-2015 period, subject to appropriation of the necessary 
funds. Those amounts would cover additional administrative 
costs for the FEC to ensure compliance with the bill. Enacting 
H.R. 5175 could increase revenues and direct spending from the 
collection of civil and criminal penalties; therefore, pay-as-
you-go procedures would apply. However, CBO estimates that the 
net budgetary effect of any additional penalty collections 
would be negligible for each year.
    H.R. 5175 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    H.R. 5175 contains private-sector mandates, as defined in 
UMRA, on lobbyists, political organizations, and other entities 
or individuals that make political expenditures. Based on 
information from the FEC, CBO estimates that the aggregate cost 
to comply with the mandates would fall below the annual 
threshold established in UMRA for private-sector mandates ($141 
million in 2010, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5175 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government).


----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2011       2012       2013       2014       2015    2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level.................          3          2          2          2          2         11
Estimated Outlays.............................          2          2          2          2          2         10
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
5175 will be enacted near the end of fiscal year 2010, that the 
necessary funds will be provided for each year, and that 
spending will follow the historical spending patterns of the 
FEC.

                   SPENDING SUBJECT TO APPROPRIATION

    Based on information from the FEC, CBO estimates that the 
agency would spend about $1 million over the 2010-2011 period 
to reconfigure its information systems, write new and revise 
old regulations, and provide training and outreach to 
interested groups.
    In addition, the FEC would need to ensure compliance with 
the bill's provisions, analyze the new reports submitted by 
campaigns, and investigate possible violations and complaints. 
Based on information from the FEC, CBO estimates that 
conducting those activities would cost about $2 million a year.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. Enacting H.R. 5175 could increase civil and criminal 
fines collected for violations of the bill's provisions. Civil 
fines are recorded as revenues. Criminal fines are recorded as 
revenues, deposited in the Crime Victims Fund, and subsequently 
spent without further appropriation. CBO estimates that any 
additional collections would not be significant because of the 
relatively small number of cases likely to result. The net 
changes to outlays and revenues that are subject to pay-as-you-
go procedures are shown in the following table.

  CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5175, THE DISCLOSE ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON HOUSE ADMINISTRATION ON MAY 20,
                                                                          2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020   2010-2015  2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact............       0       0       0       0       0       0       0       0       0       0       0         0          0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on State, local, and tribal governments: 
H.R. 5175 contains no intergovernmental mandates as defined in 
UMRA and would not affect the budgets of state, local, or 
tribal governments.
    Estimated impact on the private sector: H.R. 5175 contains 
private-sector mandates, as defined in UMRA. Those mandates 
would expand reporting requirements for lobbyists, political 
organizations and other entities or individuals that make 
certain political expenditures, require new disclosures in 
political ads, mass mailings, and automated political calls, 
and expand the ban on contributions and other political 
expenditures by foreign nationals. Based on information from 
the FEC, CBO estimates that the aggregate cost to comply with 
the mandates would fall below the annual threshold established 
in UMRA for private-sector mandates ($141 million in 2010, 
adjusted annually for inflation).
    Estimate prepared by: Federal Costs: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Elizabeth Cove 
Delisle; Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                            Federal Mandates

    Section 423 of the CBA requires a committee report on any 
public bill or joint resolution that includes a federal mandate 
to include specific information about such mandates. The 
Committee adopts as its own the estimate of Federal mandates 
prepared by the Director of the Congressional Budget Office 
pursuant to Section 423 of the Unfunded Mandates Reform Act 
(P.L. 104-4).

                        Preemption Clarification

    Section 423 of the CBA requires a committee report on any 
public bill or joint resolution to include a committee 
statement on the extent to which the measure is intended to 
preempt state or local law. The Committee states that H.R. 5175 
is not intended to preempt any state or local law.

                           Oversight Findings

    Clause 3(c)(1) of rule XIII requires each committee report 
to contain oversight findings and recommendations required 
pursuant to clause 2(b)(1) of House rule X. Oversight findings 
are addressed elsewhere in the descriptive portions of the 
report. The Committee has general oversight responsibility for 
the Federal Election Commission.

          Statement of General Peformance Goals and Objectives

    Clause 3(c)(4) of House rule XIII requires committee 
reports to include a statement of general performance goals and 
objectives. H.R. 5175 will improve the transparency and 
integrity of the election process by increasing the disclosure 
of political spending in elections.

                         Congressional Earmarks

    Clause 9 of House rule XXI requires committee reports on 
public bills and resolutions to contain an identification of 
congressional ``earmarks,'' limited tax benefits, limited 
tariff benefits, and the names of requesting Members. The bill 
as reported contains no such items.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

FEDERAL ELECTION CAMPAIGN ACT OF 1971

           *       *       *       *       *       *       *



            TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS


                              DEFINITIONS

  Sec. 301. When used in this Act:
  (1) * * *

           *       *       *       *       *       *       *

  (8)(A) The term ``contribution'' includes--
          (i) any gift, subscription, loan, advance, or deposit 
        of money or anything of value made by any person for 
        the purpose of influencing any election for Federal 
        office; [or]
          (ii) the payment by any person of compensation for 
        the personal services of another person which are 
        rendered to a political committee without charge for 
        any purpose[.];
          (iii) any payment made by any person (other than a 
        candidate, an authorized committee of a candidate, or a 
        political committee of a political party) for a 
        coordinated communication (as determined under section 
        324); or
          (iv) any payment by a political committee of a 
        political party for the direct costs of a public 
        communication (as defined in paragraph (22)) made on 
        behalf of a candidate for Federal office who is 
        affiliated with such party, but only if the 
        communication is controlled by, or made at the 
        direction of, the candidate or an authorized committee 
        of the candidate.

           *       *       *       *       *       *       *

          (17) Independent expenditure.--The term ``independent 
        expenditure'' means an expenditure by a person--
                  [(A) expressly advocating the election or 
                defeat of a clearly identified candidate; and]
                  (A) that, when taken as a whole, expressly 
                advocates the election or defeat of a clearly 
                identified candidate, or is the functional 
                equivalent of express advocacy because it can 
                be interpreted by a reasonable person only as 
                advocating the election or defeat of a 
                candidate, taking into account whether the 
                communication involved mentions a candidacy, a 
                political party, or a challenger to a 
                candidate, or takes a position on a candidate's 
                character, qualifications, or fitness for 
                office; and

           *       *       *       *       *       *       *

          (22) Public communication.--The term ``public 
        communication'' means a communication by means of any 
        broadcast, cable, or satellite communication, 
        newspaper, magazine, outdoor advertising facility, mass 
        mailing, or telephone bank to the general public, or 
        any other form of general public political advertising. 
        A communication which is disseminated through the 
        Internet shall not be treated as a form of general 
        public political advertising under this paragraph 
        unless the communication was placed for a fee on 
        another person's Web site.

           *       *       *       *       *       *       *


                                REPORTS

  Sec. 304. (a) * * *

           *       *       *       *       *       *       *

  (d)(1) Any person who is required to file a statement under 
subsection (c) [or (g)] of this section, except statements 
required to be filed electronically pursuant to subsection 
(a)(11)(A)(i) may file the statement by facsimile device or 
electronic mail, in accordance with such regulations as the 
Commission may promulgate. Notwithstanding any other provision 
of this section, any person who is required to file a statement 
under subsection (f) or subsection (g) shall file the statement 
in electronic form accessible by computers, in a manner which 
ensures that the information provided is searchable, sortable, 
and downloadable.

           *       *       *       *       *       *       *

  (f) Disclosure of Electioneering Communications.--
          (1) Statement required.--Every person who makes a 
        disbursement for the direct costs of producing and 
        airing electioneering communications in an aggregate 
        amount in excess of $10,000 during any calendar year 
        shall, within 24 hours of each disclosure date, [file 
        with] electronically file with the Commission a 
        statement containing the information described in 
        paragraph (2). Notwithstanding any other provision of 
        this section, the Commission shall ensure that the 
        information required to be disclosed under this 
        subsection is publicly available through the Commission 
        website not later than 24 hours after receipt in a 
        manner that is downloadable in bulk and machine 
        readable.
          (2) Contents of statement.--Each statement required 
        to be filed under this subsection shall be made under 
        penalty of perjury and shall contain the following 
        information:
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) If the disbursements were paid out of a 
                segregated bank account which consists of funds 
                contributed solely by individuals who are 
                United States citizens or nationals or lawfully 
                admitted for permanent residence (as defined in 
                section 101(a)(20) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(20))) 
                directly to this account for electioneering 
                communications, the names and addresses of all 
                contributors who contributed an aggregate 
                amount of $1,000 or more to that account during 
                the period beginning on the first day of the 
                preceding calendar year and ending on the 
                disclosure date. Nothing in this subparagraph 
                is to be construed as a prohibition on the use 
                of funds in such a segregated account for a 
                purpose other than electioneering 
                communications.
                  (F) If the disbursements were paid out of 
                funds not described in subparagraph (E), the 
                names and addresses of all contributors who 
                contributed an aggregate amount of $1,000 or 
                more to the person making the disbursement 
                during the period beginning on the first day of 
                the preceding calendar year and ending on the 
                disclosure date.

           *       *       *       *       *       *       *

          (3) Electioneering communication.--For purposes of 
        this subsection--
                  (A) In general.--(i) The term 
                ``electioneering communication'' means any 
                broadcast, cable, or satellite communication 
                which--
                          (I) * * *
                          (II) is made within--
                                  (aa) [60 days] 120 days 
                                before a general, special, or 
                                runoff election for the office 
                                sought by the candidate; or

           *       *       *       *       *       *       *

          (6) Disclosure of additional information by covered 
        organizations.--
                  (A) Additional information.--If a covered 
                organization files a statement under this 
                subsection, the statement shall include, in 
                addition to the information required under 
                paragraph (2), the following information:
                          (i) If any person made a donation or 
                        payment to the covered organization 
                        during the covered organization 
                        reporting period which was provided for 
                        the purpose of being used for campaign-
                        related activity or in response to a 
                        solicitation for funds to be used for 
                        campaign-related activity--
                                  (I) subject to subparagraph 
                                (C), the identification of each 
                                person who made such donations 
                                or payments in an aggregate 
                                amount equal to or exceeding 
                                $1,000 during such period, 
                                presented in the order of the 
                                aggregate amount of donations 
                                or payments made by such 
                                persons during such period 
                                (with the identification of the 
                                person making the largest 
                                donation or payment appearing 
                                first); and
                                  (II) if any person identified 
                                under subclause (I) designated 
                                that the donation or payment be 
                                used for campaign-related 
                                activity with respect to a 
                                specific election or in support 
                                of a specific candidate, the 
                                name of the election or 
                                candidate involved, and if any 
                                such person designated that the 
                                donation or payment be used for 
                                a specific electioneering 
                                communication, a description of 
                                the communication.
                          (ii) The identification of each 
                        person who made unrestricted donor 
                        payments to the organization during the 
                        covered organization reporting period--
                                  (I) in an aggregate amount 
                                equal to or exceeding $1,000 
                                during such period, if any of 
                                the disbursements made by the 
                                organization for any of the 
                                electioneering communications 
                                which are covered by the 
                                statement were not made from 
                                the organization's Campaign-
                                Related Activity Account under 
                                section 326; or
                                  (II) in an aggregate amount 
                                equal to or exceeding $10,000 
                                during such period, if the 
                                disbursements made by the 
                                organization for all of the 
                                electioneering communications 
                                which are covered by the 
                                statement were made exclusively 
                                from the organization's 
                                Campaign-Related Activity 
                                Account under section 326 (but 
                                only if the organization has 
                                made deposits described in 
                                subparagraph (D) of section 
                                326(a)(2) into that Account 
                                during such period in an 
                                aggregate amount equal to or 
                                greater than $10,000),
                        presented in the order of the aggregate 
                        amount of payments made by such persons 
                        during such period (with the 
                        identification of the person making the 
                        largest payment appearing first).
                  (B) Treatment of transfers made to other 
                persons.--
                          (i) In general.--For purposes of the 
                        requirement to file statements under 
                        this subsection (including the 
                        requirement under subparagraph (A) to 
                        include additional information in such 
                        statements), a covered organization 
                        which transfers amounts to another 
                        person (other than the covered 
                        organization itself) for the purpose of 
                        making an electioneering communication 
                        by that person or by any other person, 
                        or (in accordance with clause (ii)) 
                        which is deemed to have transferred 
                        amounts to another person (other than 
                        the covered organization itself) for 
                        the purpose of making an electioneering 
                        communication by that person or by any 
                        other person, shall be considered to 
                        have made a disbursement for an 
                        electioneering communication.
                          (ii) Rules for deeming transfers made 
                        for purpose of making communications.--
                        For purposes of clause (i), in 
                        determining whether a covered 
                        organization or any other person who 
                        transfers amounts to another person 
                        shall be deemed to have transferred the 
                        amounts for the purpose of making an 
                        electioneering communication, the 
                        following rules apply:
                                  (I) The person shall be 
                                deemed to have transferred the 
                                amounts for the purpose of 
                                making an electioneering 
                                communication if--
                                          (aa) the person 
                                        designates, requests, 
                                        or suggests that the 
                                        amounts be used for 
                                        electioneering 
                                        communications and the 
                                        person to whom the 
                                        amounts were 
                                        transferred agrees to 
                                        do so or does so;
                                          (bb) the person 
                                        making the 
                                        electioneering 
                                        communication or 
                                        another person acting 
                                        on that person's behalf 
                                        expressly solicited the 
                                        person for a donation 
                                        or payment for making 
                                        or paying for any 
                                        electioneering 
                                        communications;
                                          (cc) the person and 
                                        the person to whom the 
                                        amounts were 
                                        transferred engaged in 
                                        substantial written or 
                                        oral discussion 
                                        regarding the person 
                                        either making, or 
                                        donating or paying for, 
                                        any electioneering 
                                        communications;
                                          (dd) the person or 
                                        the person to whom the 
                                        amounts were 
                                        transferred knew or had 
                                        reason to know of the 
                                        covered organization's 
                                        intent to make 
                                        electioneering 
                                        communications; or
                                          (ee) the person or 
                                        the person to whom the 
                                        amounts were 
                                        transferred made an 
                                        electioneering 
                                        communication during 
                                        the 2-year period which 
                                        ends on the date on 
                                        which the amounts were 
                                        transferred.
                                  (II) The person shall not be 
                                considered to have transferred 
                                the amounts for the purpose of 
                                making an electioneering 
                                communication if the transfer 
                                was a commercial transaction 
                                occurring in the ordinary 
                                course of business between the 
                                person and the person to whom 
                                the amounts were transferred, 
                                unless there is affirmative 
                                evidence that the amounts were 
                                transferred for the purpose of 
                                making an electioneering 
                                communication.
                  (C) Exclusion of amounts designated for other 
                campaign-related activity.--For purposes of 
                subparagraph (A)(i), in determining the amount 
                of a donation or payment made by a person which 
                was provided for the purpose of being used for 
                campaign-related activity or in response to a 
                solicitation for funds to be used for campaign-
                related activity, there shall be excluded any 
                amount which was designated by the person to be 
                used--
                          (i) for campaign-related activity 
                        described in clause (ii) of section 
                        325(d)(2)(A) (relating to 
                        electioneering communications) with 
                        respect to a different election, or 
                        with respect to a candidate in a 
                        different election, than an election 
                        which is the subject of any of the 
                        electioneering communications covered 
                        by the statement involved; or
                          (ii) for any campaign-related 
                        activity described in clause (i) of 
                        section 325(d)(2)(A) (relating to 
                        independent expenditures consisting of 
                        a public communication).
                  (D) Covered organization reporting period 
                described.--In this paragraph, the ``covered 
                organization reporting period'' is, with 
                respect to a statement filed by a covered 
                organization under this subsection--
                          (i) in the case of the first 
                        statement filed by a covered 
                        organization under this subsection 
                        which includes information required 
                        under this paragraph, the shorter of--
                                  (I) the period which begins 
                                on the effective date of the 
                                Democracy is Strengthened by 
                                Casting Light on Spending in 
                                Elections Act and ends on the 
                                disclosure date for the 
                                statement, or
                                  (II) the 12-month period 
                                ending on the disclosure date 
                                for the statement; and
                          (ii) in the case of any subsequent 
                        statement filed by a covered 
                        organization under this subsection 
                        which includes information required 
                        under this paragraph, the period 
                        occurring since the most recent 
                        statement filed by the organization 
                        which includes such information.
                  (E) Covered organization defined.--In this 
                paragraph, the term ``covered organization'' 
                means any of the following:
                          (i) Any corporation which is subject 
                        to section 316(a).
                          (ii) Any labor organization (as 
                        defined in section 316).
                          (iii) Any organization described in 
                        paragraph (4), (5), or (6) of section 
                        501(c) of the Internal Revenue Code of 
                        1986 and exempt from tax under section 
                        501(a) of such Code.
                          (iv) Any political organization under 
                        section 527 of the Internal Revenue 
                        Code of 1986, other than a political 
                        committee under this Act.
                  (F) Other definitions.--In this paragraph, 
                the terms ``campaign-related activity'' and 
                ``unrestricted donor payment'' have the meaning 
                given such terms in section 325.
          [(6)] (7) Coordination with other requirements.--Any 
        requirement to report under this subsection shall be in 
        addition to any other reporting requirement under this 
        Act.
          [(7)] (8) Coordination with internal revenue code.--
        Nothing in this subsection may be construed to 
        establish, modify, or otherwise affect the definition 
        of political activities or electioneering activities 
        (including the definition of participating in, 
        intervening in, or influencing or attempting to 
        influence a political campaign on behalf of or in 
        opposition to any candidate for public office) for 
        purposes of the Internal Revenue Code of 1986.
  (g) Time for Reporting Certain Expenditures.--
          [(1) Expenditures aggregating $1,000.--
                  [(A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $1,000 or more after the 20th day, but more 
                than 24 hours, before the date of an election 
                shall file a report describing the expenditures 
                within 24 hours.
                  [(B) Additional reports.--After a person 
                files a report under subparagraph (A), the 
                person shall file an additional report within 
                24 hours after each time the person makes or 
                contracts to make independent expenditures 
                aggregating an additional $1,000 with respect 
                to the same election as that to which the 
                initial report relates.
          [(2) Expenditures aggregating $10,000.--
                  [(A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $10,000 or more at any time up to and including 
                the 20th day before the date of an election 
                shall file a report describing the expenditures 
                within 48 hours.
                  [(B) Additional reports.--After a person 
                files a report under subparagraph (A), the 
                person shall file an additional report within 
                48 hours after each time the person makes or 
                contracts to make independent expenditures 
                aggregating an additional $10,000 with respect 
                to the same election as that to which the 
                initial report relates.]
          (1) Independent expenditures exceeding threshold 
        amount.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures in an aggregate 
                amount equal to or greater than the threshold 
                amount described in paragraph (2) shall 
                electronically file a report describing the 
                expenditures within 24 hours.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall electronically file an additional report 
                within 24 hours after each time the person 
                makes or contracts to make independent 
                expenditures in an aggregate amount equal to or 
                greater than the threshold amount with respect 
                to the same election as that to which the 
                initial report relates.
          (2) Threshold amount described.--In paragraph (1), 
        the ``threshold amount'' means--
                  (A) during the period up to and including the 
                20th day before the date of an election, 
                $10,000; or
                  (B) during the period after the 20th day, but 
                more than 24 hours, before the date of an 
                election, $1,000.
          (3) Public availability.--Notwithstanding any other 
        provision of this section, the Commission shall ensure 
        that the information required to be disclosed under 
        this subsection is publicly available through the 
        Commission website not later than 24 hours after 
        receipt in a manner that is downloadable in bulk and 
        machine readable.

           *       *       *       *       *       *       *

          (5) Disclosure of additional information by covered 
        organizations making payments for public independent 
        expenditures.--
                  (A) Additional information.--If a covered 
                organization makes or contracts to make public 
                independent expenditures in an aggregate amount 
                equal to or exceeding $10,000 in a calendar 
                year, the report filed by the organization 
                under this subsection shall include, in 
                addition to the information required under 
                paragraph (3), the following information:
                          (i) If any person made a donation or 
                        payment to the covered organization 
                        during the covered organization 
                        reporting period which was provided for 
                        the purpose of being used for campaign-
                        related activity or in response to a 
                        solicitation for funds to be used for 
                        campaign-related activity--
                                  (I) subject to subparagraph 
                                (C), the identification of each 
                                person who made such donations 
                                or payments in an aggregate 
                                amount equal to or exceeding 
                                $600 during such period, 
                                presented in the order of the 
                                aggregate amount of donations 
                                or payments made by such 
                                persons during such period 
                                (with the identification of the 
                                person making the largest 
                                donation or payment appearing 
                                first); and
                                  (II) if any person identified 
                                under subclause (I) designated 
                                that the donation or payment be 
                                used for campaign-related 
                                activity with respect to a 
                                specific election or in support 
                                of a specific candidate, the 
                                name of the election or 
                                candidate involved, and if any 
                                such person designated that the 
                                donation or payment be used for 
                                a specific public independent 
                                expenditure, a description of 
                                the expenditure.
                          (ii) The identification of each 
                        person who made unrestricted donor 
                        payments to the organization during the 
                        covered organization reporting period--
                                  (I) in an aggregate amount 
                                equal to or exceeding $600 
                                during such period, if any of 
                                the disbursements made by the 
                                organization for any of the 
                                public independent expenditures 
                                which are covered by the report 
                                were not made from the 
                                organization's Campaign-Related 
                                Activity Account under section 
                                326; or
                                  (II) in an aggregate amount 
                                equal to or exceeding $6,000 
                                during such period, if the 
                                disbursements made by the 
                                organization for all of the 
                                public independent expenditures 
                                which are covered by the report 
                                were made exclusively from the 
                                organization's Campaign-Related 
                                Activity Account under section 
                                326 (but only if the 
                                organization has made deposits 
                                described in subparagraph (D) 
                                of section 326(a)(2) into that 
                                Account during such period in 
                                an aggregate amount equal to or 
                                greater than $10,000),
                        presented in the order of the aggregate 
                        amount of payments made by such persons 
                        during such period (with the 
                        identification of the person making the 
                        largest payment appearing first).
                  (B) Treatment of transfers made to other 
                persons.--
                          (i) In general.--For purposes of the 
                        requirement to file reports under this 
                        subsection (including the requirement 
                        under subparagraph (A) to include 
                        additional information in such 
                        reports), a covered organization which 
                        transfers amounts to another person 
                        (other than the covered organization 
                        itself) for the purpose of making a 
                        public independent expenditure by that 
                        person or by any other person, or (in 
                        accordance with clause (ii)) which is 
                        deemed to have transferred amounts to 
                        another person (other than the covered 
                        organization itself) for the purpose of 
                        making a public independent expenditure 
                        by that person or by any other person, 
                        shall be considered to have made a 
                        public independent expenditure.
                          (ii) Rules for deeming transfers made 
                        for purpose of making expenditures.--
                        For purposes of clause (i), in 
                        determining whether a covered 
                        organization or any other person who 
                        transfers amounts to another person 
                        shall be deemed to have transferred the 
                        amounts for the purpose of making a 
                        public independent expenditure, the 
                        following rules apply:
                                  (I) The person shall be 
                                deemed to have transferred the 
                                amounts for the purpose of 
                                making a public independent 
                                expenditure if--
                                          (aa) the person 
                                        designates, requests, 
                                        or suggests that the 
                                        amounts be used for 
                                        public independent 
                                        expenditures and the 
                                        person to whom the 
                                        amounts were 
                                        transferred agrees to 
                                        do so or does so;
                                          (bb) the person 
                                        making the public 
                                        independent expenditure 
                                        or another person 
                                        acting on that person's 
                                        behalf expressly 
                                        solicited the person 
                                        for a donation or 
                                        payment for making or 
                                        paying for any public 
                                        independent 
                                        expenditures;
                                          (cc) the person and 
                                        the person to whom the 
                                        amounts were 
                                        transferred engaged in 
                                        substantial written or 
                                        oral discussion 
                                        regarding the person 
                                        either making, or 
                                        donating or paying for, 
                                        any public independent 
                                        expenditures;
                                          (dd) the person or 
                                        the person to whom the 
                                        amounts were 
                                        transferred knew or had 
                                        reason to know of the 
                                        covered organization's 
                                        intent to make public 
                                        independent 
                                        expenditures; or
                                          (ee) the person or 
                                        the person to whom the 
                                        amounts were 
                                        transferred made a 
                                        public independent 
                                        expenditure during the 
                                        2-year period which 
                                        ends on the date on 
                                        which the amounts were 
                                        transferred.
                                  (II) The person shall not be 
                                deemed to have transferred the 
                                amounts for the purpose of 
                                making a public independent 
                                expenditure if the transfer was 
                                a commercial transaction 
                                occurring in the ordinary 
                                course of business between the 
                                person and the person to whom 
                                the amounts were transferred, 
                                unless there is affirmative 
                                evidence that the amounts were 
                                transferred for the purpose of 
                                making a public independent 
                                expenditure.
                  (C) Exclusion of amounts designated for other 
                campaign-related activity.--For purposes of 
                subparagraph (A)(i), in determining the amount 
                of a donation or payment made by a person which 
                was provided for the purpose of being used for 
                campaign-related activity or in response to a 
                solicitation for funds to be used for campaign-
                related activity, there shall be excluded any 
                amount which was designated by the person to be 
                used--
                          (i) for campaign-related activity 
                        described in clause (i) of section 
                        325(d)(2)(A) (relating to independent 
                        expenditures) with respect to a 
                        different election, or with respect to 
                        a candidate in a different election, 
                        than an election which is the subject 
                        of any of the public independent 
                        expenditures covered by the report 
                        involved; or
                          (ii) for any campaign-related 
                        activity described in clause (ii) of 
                        section 325(d)(2)(A) (relating to 
                        electioneering communications).
                  (D) Exclusion of amounts paid from separate 
                segregated fund.--In determining the amount of 
                public independent expenditures made by a 
                covered organization for purposes of this 
                paragraph, there shall be excluded any amounts 
                paid from a separate segregated fund 
                established and administered by the 
                organization under section 316(b)(2)(C).
                  (E) Covered organization reporting period 
                described.--In this paragraph, the ``covered 
                organization reporting period'' is, with 
                respect to a report filed by a covered 
                organization under this subsection--
                          (i) in the case of the first report 
                        filed by a covered organization under 
                        this subsection which includes 
                        information required under this 
                        paragraph, the shorter of--
                                  (I) the period which begins 
                                on the effective date of the 
                                Democracy is Strengthened by 
                                Casting Light on Spending in 
                                Elections Act and ends on the 
                                last day covered by the report, 
                                or
                                  (II) the 12-month period 
                                ending on the last day covered 
                                by the report; and
                          (ii) in the case of any subsequent 
                        report filed by a covered organization 
                        under this subsection which includes 
                        information required under this 
                        paragraph, the period occurring since 
                        the most recent report filed by the 
                        organization which includes such 
                        information.
                  (F) Covered organization defined.--In this 
                paragraph, the term ``covered organization'' 
                means any of the following:
                          (i) Any corporation which is subject 
                        to section 316(a).
                          (ii) Any labor organization (as 
                        defined in section 316).
                          (iii) Any organization described in 
                        paragraph (4), (5), or (6) of section 
                        501(c) of the Internal Revenue Code of 
                        1986 and exempt from tax under section 
                        501(a) of such Code.
                          (iv) Any political organization under 
                        section 527 of the Internal Revenue 
                        Code of 1986, other than a political 
                        committee under this Act.
                  (G) Other definitions.--In this paragraph--
                          (i) the terms ``campaign-related 
                        activity'' and ``unrestricted donor 
                        payment'' have the meaning given such 
                        terms in section 325; and
                          (ii) the term ``public independent 
                        expenditure'' means an independent 
                        expenditure for a public communication 
                        (as defined in section 301(22)).

           *       *       *       *       *       *       *


             LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES

  Sec. 315. (a) * * *

           *       *       *       *       *       *       *

  (d)(1) Notwithstanding any other provision of law with 
respect to limitations on expenditures or limitations on 
contributions, the national committee of a political party and 
a State committee of a political party, including any 
subordinate committee of a State committee, may make 
expenditures in connection with the general election campaign 
of candidates for Federal office, subject to the limitations 
contained in [paragraphs (2), (3), and (4)] paragraphs (2) and 
(3) of this subsection.

           *       *       *       *       *       *       *

  [(4) Independent versus coordinated expenditures by party.--
          [(A) In general.--On or after the date on which a 
        political party nominates a candidate, no committee of 
        the political party may make--
                  [(i) any coordinated expenditure under this 
                subsection with respect to the candidate during 
                the election cycle at any time after it makes 
                any independent expenditure (as defined in 
                section 301(17)) with respect to the candidate 
                during the election cycle; or
                  [(ii) any independent expenditure (as defined 
                in section 301(17)) with respect to the 
                candidate during the election cycle at any time 
                after it makes any coordinated expenditure 
                under this subsection with respect to the 
                candidate during the election cycle.
          [(B) Application.--For purposes of this paragraph, 
        all political committees established and maintained by 
        a national political party (including all congressional 
        campaign committees) and all political committees 
        established and maintained by a State political party 
        (including any subordinate committee of a State 
        committee) shall be considered to be a single political 
        committee.
          [(C) Transfers.--A committee of a political party 
        that makes coordinated expenditures under this 
        subsection with respect to a candidate shall not, 
        during an election cycle, transfer any funds to, assign 
        authority to make coordinated expenditures under this 
        subsection to, or receive a transfer of funds from, a 
        committee of the political party that has made or 
        intends to make an independent expenditure with respect 
        to the candidate.]
  (4) Special Rule for Direct Costs of Communications.--The 
direct costs incurred by a political committee of a political 
party for a communication made in connection with the campaign 
of a candidate for Federal office shall not be subject to the 
limitations contained in paragraphs (2) and (3) unless the 
communication is controlled by, or made at the direction of, 
the candidate or an authorized committee of the candidate.

           *       *       *       *       *       *       *


      [CONTRIBUTIONS] CONTRIBUTIONS, INDEPENDENT EXPENDITURES, AND 
        ELECTIONEERING COMMUNICATIONS BY GOVERNMENT CONTRACTORS

  Sec. 317. (a) It shall be unlawful for any person--
          (1) who enters into any contract with the United 
        States or any department or agency thereof either for 
        the rendition of personal services or furnishing any 
        material, supplies, or equipment to the United States 
        or any department or agency thereof or for selling any 
        land or building to the United States or any department 
        or agency thereof, if payment for the performance of 
        such contract or payment for such material, supplies, 
        equipment, land, or building is to be made in whole or 
        in part from funds appropriated by the Congress, at any 
        time between the commencement of negotiations for and 
        the later of (A) the completion of performance under; 
        or (B) the termination of negotiations for, such 
        contract or furnishing of material, supplies, 
        equipment, land, or buildings, directly or indirectly 
        to make any contribution of money or other things of 
        value, or to promise expressly or impliedly to make any 
        such contribution to any political party, committee, or 
        candidate for public office or to any person for any 
        political [purpose or use; or] purpose or use, to make 
        any independent expenditure, or to disburse any funds 
        for an electioneering communication;
          (2) who enters into negotiations for financial 
        assistance under title I of the Emergency Economic 
        Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) 
        (relating to the purchase of troubled assets by the 
        Secretary of the Treasury), during the period--
                  (A) beginning on the later of the 
                commencement of the negotiations or the date of 
                the enactment of the Democracy is Strengthened 
                by Casting Light on Spending in Elections Act; 
                and
                  (B) ending with the later of the termination 
                of such negotiations or the repayment of such 
                financial assistance;
        directly or indirectly to make any contribution of 
        money or other things of value, or to promise expressly 
        or impliedly to make any such contribution to any 
        political party, committee, or candidate for public 
        office or to any person for any political purpose or 
        use, to make any independent expenditure, or to 
        disburse any funds for an electioneering communication; 
        or
          [(2)] (3) knowingly to solicit any such contribution 
        from any such person for any such purpose during any 
        such period.
  (b) To the extent that subsection (a)(1) prohibits a person 
who enters into a contract described in such subsection from 
making any independent expenditure or disbursing funds for an 
electioneering communication, such subsection shall apply only 
if the value of the contract is equal to or greater than 
$7,000,000.
  [(b)] (c) This section does not prohibit or make unlawful the 
establishment or administration of, or the solicitation of 
contributions to, any separate segregated fund by any 
corporation, labor organization, membership organization, 
cooperative, or corporation without capital stock for the 
purpose of influencing the nomination for election, or 
election, of any person to Federal office, unless the 
provisions of [section 321] section 316 prohibit or make 
unlawful the establishment or administration of, or the 
solicitation of contributions to, such fund. Each specific 
prohibition, allowance, and duty applicable to a corporation, 
labor organization, or separate segregated fund under [section 
321] section 316 applies to a corporation, labor organization, 
or separate segregated fund to which this subsection applies.
  [(c)] (d) For purposes of this section, the term ``labor 
organization'' has the meaning given it by [section 321] 
section 316(b)(1).

      PUBLICATION AND DISTRIBUTION OF STATEMENTS AND SOLICITATIONS

  Sec. 318. (a) Whenever a political committee makes a 
disbursement for the purpose of financing any communication 
through any broadcasting station, newspaper, magazine, outdoor 
advertising facility, mailing, or any other type of general 
public political advertising, or whenever any person makes a 
disbursement [for the purpose of financing communications 
expressly advocating the election or defeat of a clearly 
identified candidate] for an independent expenditure consisting 
of a public communication, or solicits any contribution through 
any broadcasting station, newspaper, magazine, outdoor 
advertising facility, mailing, or any other type of general 
public political advertising or makes a disbursement for an 
electioneering communication (as defined in section 304(f)(3)), 
such communication--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) if not authorized by a candidate, an authorized 
        political committee of a candidate, or its agents, 
        shall clearly state the name and permanent street 
        address, telephone number, or World Wide Web address of 
        the person who paid for the communication and state 
        that the communication is not authorized by any 
        candidate or candidate's committee.]
          (3) if not authorized by a candidate, an authorized 
        political committee of a candidate, or its agents, 
        shall clearly state--
                  (A) the name and permanent street address, 
                telephone number, or World Wide Web address of 
                the person who paid for the communication;
                  (B) if the communication is an independent 
                expenditure consisting of a mass mailing (as 
                defined in section 301(23)) which is paid for 
                in whole or in part with a payment which is 
                treated as a disbursement by a covered 
                organization for campaign-related activity 
                under section 325, the name and permanent 
                street address, telephone number, or World Wide 
                Web address of--
                          (I) the significant funder of the 
                        communication, if any (as determined in 
                        accordance with subsection 
                        (e)(4)(C)(i)); and
                          (ii) each person who would be 
                        included in the Top 5 Funders list 
                        which would be submitted with respect 
                        to the communication if the 
                        communication were transmitted through 
                        television, if any (as determined in 
                        accordance with subsection (e)(5)); and
                  (C) that the communication is not authorized 
                by any candidate or candidate's committee.

           *       *       *       *       *       *       *

  (d) Additional Requirements.--
          (1) * * *
          (2) Communications by [others] political 
        committees.--Any communication described in paragraph 
        (3) of [subsection (a)] subsection (a) which is paid 
        for by a political committee (including a political 
        committee of a political party), other than a political 
        committee which makes only electioneering 
        communications or independent expenditures consisting 
        of public communications, which is transmitted through 
        radio or television shall include, in addition to the 
        requirements of that paragraph, in a clearly spoken 
        manner, the following audio statement: ``_____ is 
        responsible for the content of this advertising.'' 
        (with the blank to be filled in with the name of the 
        political committee [or other person] paying for the 
        communication and the name of any connected 
        organization of the payor). If transmitted through 
        television, the statement shall be conveyed by an 
        unobscured, full-screen view of a representative of the 
        political committee [or other person] making the 
        statement, or by a representative of such political 
        committee [or other person] in voice-over, and shall 
        also appear 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.
  (e) Communications by Others.--
          (1) In general.--Any communication described in 
        paragraph (3) of subsection (a) which is transmitted 
        through radio or television (other than a communication 
        to which subsection (d)(2) applies because the 
        communication is paid for by a political committee, 
        including a political committee of a political party, 
        other than a political committee which makes only 
        electioneering communications or independent 
        expenditures consisting of public communications) shall 
        include, in addition to the requirements of that 
        paragraph, the following:
                  (A) The individual disclosure statement 
                described in paragraph (2) (if the person 
                paying for the communication is an individual) 
                or the organizational disclosure statement 
                described in paragraph (3) (if the person 
                paying for the communication is not an 
                individual).
                  (B) If the communication is an electioneering 
                communication or an independent expenditure 
                consisting of a public communication and is 
                paid for in whole or in part with a payment 
                which is treated as a disbursement by a covered 
                organization for campaign-related activity 
                under section 325, the significant funder 
                disclosure statement described in paragraph (4) 
                (if applicable), unless, on the basis of 
                criteria established in regulations promulgated 
                by the Commission, the communication is of such 
                short duration that including the statement in 
                the communication would constitute a hardship 
                to the person paying for the communication by 
                requiring a disproportionate amount of the 
                communication's content to consist of the 
                statement.
                  (C) If the communication is an electioneering 
                communication or an independent expenditure 
                consisting of a public communication and is 
                paid for in whole or in part with a payment 
                which is treated as a disbursement by a covered 
                organization for campaign-related activity 
                under section 325, the Top Five Funders list 
                described in paragraph (5) (if applicable), 
                unless, on the basis of criteria established in 
                regulations promulgated by the Commission, the 
                communication 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 
                communication's content to consist of the Top 
                Five Funders list.
          (2) Individual disclosure statement described.--The 
        individual disclosure statement described in this 
        paragraph is the following: ``I am _______, and I 
        approve this message.'', with the blank filled in with 
        the name of the applicable individual.
          (3) Organizational disclosure statement described.--
        The organizational disclosure statement described in 
        this paragraph is the following: ``I am _______, the 
        _______ of _______, and _______ approves this 
        message.'', with--
                  (A) the first blank to be filled in with the 
                name of the applicable individual;
                  (B) the second blank to be filled in with the 
                title of the applicable individual; and
                  (C) the third and fourth blank each to be 
                filled in with the name of the organization or 
                other person paying for the communication.
          (4) Significant funder disclosure statement 
        described.--
                  (A) Statement if significant funder is an 
                individual.--If the significant funder of a 
                communication paid for in whole or in part with 
                a payment which is treated as a disbursement by 
                a covered organization for campaign-related 
                activity under section 325 is an individual, 
                the significant funder disclosure statement 
                described in this paragraph is the following: 
                ``I am _______. I helped to pay for this 
                message, and I approve it.'', with the blank 
                filled in with the name of the applicable 
                individual.
                  (B) Statement if significant funder is not an 
                individual.--If the significant funder of a 
                communication paid for in whole or in part with 
                a payment which is treated as a disbursement by 
                a covered organization for campaign-related 
                activity under section 325 is not an 
                individual, the significant funder disclosure 
                statement described in this paragraph is the 
                following: ``I am _______, the _______ of 
                _______. _______ helped to pay for this 
                message, and _______ approves it.'', 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, fourth, and fifth 
                        blank each to be filled in with the 
                        name of the significant funder of the 
                        communication.
                  (C) Significant funder defined.--
                          (i) Independent expenditures.--For 
                        purposes of this paragraph, the 
                        ``significant funder'' with respect to 
                        an independent expenditure consisting 
                        of a public communication paid for in 
                        whole or in part with a payment which 
                        is treated as a disbursement by a 
                        covered organization for campaign-
                        related activity under section 325 
                        shall be determined as follows:
                                  (I) If any report filed by 
                                any organization with respect 
                                to the independent expenditure 
                                under section 304 includes 
                                information on any person who 
                                made a payment to the 
                                organization in an amount equal 
                                to or exceeding $100,000 which 
                                was designated by the person to 
                                be used for campaign-related 
                                activity consisting of that 
                                specific independent 
                                expenditure (as required to be 
                                included in the report under 
                                section 304(g)(5)(A)(i)), the 
                                person who is identified among 
                                all such reports as making the 
                                largest such payment.
                                  (II) If any report filed by 
                                any organization with respect 
                                to the independent expenditure 
                                under section 304 includes 
                                information on any person who 
                                made a payment to the 
                                organization in an amount equal 
                                to or exceeding $100,000 which 
                                was designated by the person to 
                                be used for campaign-related 
                                activity with respect to the 
                                same election or in support of 
                                the same candidate (as required 
                                to be included in the report 
                                under section 304(g)(5)(A)(i)) 
                                but subclause (I) does not 
                                apply, the person who is 
                                identified among all such 
                                reports as making the largest 
                                such payment.
                                  (III) If any report filed by 
                                any organization with respect 
                                to the independent expenditure 
                                under section 304 includes 
                                information on any person who 
                                made a payment to the 
                                organization which was provided 
                                for the purpose of being used 
                                for campaign-related activity 
                                or in response to a 
                                solicitation for funds to be 
                                used for campaign-related 
                                activity (as required to be 
                                included in the report under 
                                section 304(g)(5)(A)(i)) but 
                                subclause (I) or subclause (II) 
                                does not apply, the person who 
                                is identified among all such 
                                reports as making the largest 
                                such payment.
                                  (IV) If none of the reports 
                                filed by any organization with 
                                respect to the independent 
                                expenditure under section 304 
                                includes information on any 
                                person (other than the 
                                organization) who made a 
                                payment to the organization 
                                which was provided for the 
                                purpose of being used for 
                                campaign-related activity or in 
                                response to a solicitation for 
                                funds to be used for campaign-
                                related activity, but any of 
                                such reports includes 
                                information on any person who 
                                made an unrestricted donor 
                                payment to the organization (as 
                                required to be included in the 
                                report under section 
                                304(g)(5)(A)(ii)), the person 
                                who is identified among all 
                                such reports as making the 
                                largest such unrestricted donor 
                                payment.
                          (ii) Electioneering communications.--
                        For purposes of this paragraph, the 
                        ``significant funder'' with respect to 
                        an electioneering communication paid 
                        for in whole or in part with a payment 
                        which is treated as a disbursement by a 
                        covered organization for campaign-
                        related activity under section 325, 
                        shall be determined as follows:
                                  (I) If any report filed by 
                                any organization with respect 
                                to the electioneering 
                                communication under section 304 
                                includes information on any 
                                person who made a payment to 
                                the organization in an amount 
                                equal to or exceeding $100,000 
                                which was designated by the 
                                person to be used for campaign-
                                related activity consisting of 
                                that specific electioneering 
                                communication (as required to 
                                be included in the report under 
                                section 304(f)(6)(A)(i)), the 
                                person who is identified among 
                                all such reports as making the 
                                largest such payment.
                                  (II) If any report filed by 
                                any organization with respect 
                                to the electioneering 
                                communication under section 304 
                                includes information on any 
                                person who made a payment to 
                                the organization in an amount 
                                equal to or exceeding $100,000 
                                which was designated by the 
                                person to be used for campaign-
                                related activity with respect 
                                to the same election or in 
                                support of the same candidate 
                                (as required to be included in 
                                the report under section 
                                304(f)(6)(A)(i)) but subclause 
                                (I) does not apply, the person 
                                who is identified among all 
                                such reports as making the 
                                largest such payment.
                                  (III) If any report filed by 
                                any organization with respect 
                                to the electioneering 
                                communication under section 304 
                                includes information on any 
                                person who made a payment to 
                                the organization which was 
                                provided for the purpose of 
                                being used for campaign-related 
                                activity or in response to a 
                                solicitation for funds to be 
                                used for campaign-related 
                                activity (as required to be 
                                included in the report under 
                                section 304(f)(6)(A)(i)) but 
                                subclause (I) or subclause (II) 
                                does not apply, the person who 
                                is identified among all such 
                                reports as making the largest 
                                such payment.
                                  (IV) If none of the reports 
                                filed by any organization with 
                                respect to the electioneering 
                                communication under section 304 
                                includes information on any 
                                person who made a payment to 
                                the organization which was 
                                provided for the purpose of 
                                being used for campaign-related 
                                activity or in response to a 
                                solicitation for funds to be 
                                used for campaign-related 
                                activity, but any of such 
                                reports includes information on 
                                any person who made an 
                                unrestricted donor payment to 
                                the organization (as required 
                                to be included in the report 
                                under section 
                                304(f)(6)(A)(ii)), the person 
                                who is identified among all 
                                such reports as making the 
                                largest such unrestricted donor 
                                payment.
          (5) Top 5 funders list described.--With respect to a 
        communication paid for in whole or in part with a 
        payment which is treated as a disbursement by a covered 
        organization for campaign-related activity under 
        section 325, the Top 5 Funders list described in this 
        paragraph is--
                  (A) in the case of a disbursement for an 
                independent expenditure consisting of a public 
                communication, a list of the 5 persons (or, in 
                the case of a communication transmitted through 
                radio, the 2 persons) who provided the largest 
                payments of any type which are required under 
                section 304(g)(5)(A) to be included in the 
                reports filed by any organization with respect 
                to that independent expenditure under section 
                304, together with the amount of the payments 
                each such person provided; or
                  (B) in the case of a disbursement for an 
                electioneering communication, a list of the 5 
                persons (or, in the case of a communication 
                transmitted through radio, the 2 persons) who 
                provided the largest payments of any type which 
                are required under section 304(f)(6)(A) to be 
                included in the reports filed by any 
                organization with respect to that 
                electioneering communication under section 304, 
                together with the amount of the payments each 
                such person provided.
          (6) Method of conveyance of statement.--
                  (A) Communications transmitted through 
                radio.--In the case of a communication to which 
                this subsection applies which is transmitted 
                through radio, the disclosure statements 
                required under paragraph (1) shall be made by 
                audio by the applicable individual in a clearly 
                spoken manner.
                  (B) Communications transmitted through 
                television.--In the case of a communication to 
                which this subsection applies which is 
                transmitted through television, the information 
                required under paragraph (1)--
                          (i) 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 6 seconds; and
                          (ii) except in the case of a Top 5 
                        Funders list described in paragraph 
                        (5), shall also be conveyed by an 
                        unobscured, full-screen view of the 
                        applicable individual, or by the 
                        applicable individual making the 
                        statement in voice-over accompanied by 
                        a clearly identifiable photograph or 
                        similar image of the individual.
          (7) Applicable individual defined.--In this 
        subsection, the term ``applicable individual'' means, 
        with respect to a communication to which this paragraph 
        applies--
                  (A) if the communication is paid for by an 
                individual or if the significant funder of the 
                communication under paragraph (4) is an 
                individual, the individual involved;
                  (B) if the communication is paid for by a 
                corporation or if the significant funder of the 
                communication under paragraph (4) is 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 or if the significant funder 
                of the communication under paragraph (4) is a 
                labor organization, the highest ranking officer 
                of the labor organization; or
                  (D) if the communication is paid for by any 
                other person or if the significant funder of 
                the communication under paragraph (4) is any 
                other person, the highest ranking official of 
                such person.
          (8) Covered organization defined.--In this 
        subsection, the term ``covered organization'' means any 
        of the following:
                  (A) Any corporation which is subject to 
                section 316(a).
                  (B) Any labor organization (as defined in 
                section 316).
                  (C) Any organization described in paragraph 
                (4), (5), or (6) of section 501(c) of the 
                Internal Revenue Code of 1986 and exempt from 
                tax under section 501(a) of such Code.
                  (D) Any political organization under section 
                527 of the Internal Revenue Code of 1986, other 
                than a political committee under this Act.
          (9) Other definitions.--In this subsection, the terms 
        ``campaign-related activity'' and ``unrestricted donor 
        payment'' have the meaning given such terms in section 
        325.
  (f) Special Rules for Political Robocalls.--
          (1) Requiring communications to include certain 
        disclaimer statements.--Any communication consisting of 
        a political robocall which would be subject to the 
        requirements of subsection (e) if the communication 
        were transmitted through radio or television shall 
        include the following:
                  (A) The individual disclosure statement 
                described in subsection (e)(2) (if the person 
                paying for the communication is an individual) 
                or the organizational disclosure statement 
                described in subsection (e)(3) (if the person 
                paying for the communication is not an 
                individual).
                  (B) If the communication is an electioneering 
                communication or an independent expenditure 
                consisting of a public communication and is 
                paid for in whole or in part with a payment 
                which is treated as a disbursement by a covered 
                organization for campaign-related activity 
                under section 325, the significant funder 
                disclosure statement described in subsection 
                (e)(4) (if applicable).
          (2) Timing of certain statement.--The statement 
        required to be included under paragraph (1)(A) shall be 
        made at the beginning of the political robocall.
          (3) Political robocall defined.--In this subsection, 
        the term ``political robocall'' means any outbound 
        telephone call--
                  (A) in which a person is not available to 
                speak with the person answering the call, and 
                the call instead plays a recorded message; and
                  (B) which promotes, supports, attacks, or 
                opposes a candidate for election for Federal 
                office.

            CONTRIBUTIONS AND DONATIONS BY FOREIGN NATIONALS

  Sec. 319. (a) * * *
  (b) As used in this section, the term ``foreign national'' 
means--
          (1) a foreign principal, as such term is defined by 
        section 1(b) of the Foreign Agents Registration Act of 
        1938 (22 U.S.C. 611(b)), except that the term ``foreign 
        national'' shall not include any individual who is a 
        citizen of the United States; [or]
          (2) an individual who is not a citizen of the United 
        States or a national of the United States (as defined 
        in section 101(a)(22) of the Immigration and 
        Nationality Act) and who is not lawfully admitted for 
        permanent residence, as defined by section 101(a)(20) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(20))[.]; or
          (3) any corporation which is not a foreign national 
        described in paragraph (1) and--
                  (A) in which a foreign national described in 
                paragraph (1) or (2) directly or indirectly 
                owns 20 percent or more of the voting shares;
                  (B) with respect to which the majority of the 
                members of the board of directors are foreign 
                nationals described in paragraph (1) or (2);
                  (C) over which one or more foreign nationals 
                described in paragraph (1) or (2) has the power 
                to direct, dictate, or control the decision-
                making process of the corporation with respect 
                to its interests in the United States; or
                  (D) over which one or more foreign nationals 
                described in paragraph (1) or (2) has the power 
                to direct, dictate, or control the decision-
                making process of the corporation with respect 
                to activities in connection with a Federal, 
                State, or local election, including--
                          (i) the making of a contribution, 
                        donation, expenditure, independent 
                        expenditure, or disbursement for an 
                        electioneering communication (within 
                        the meaning of section 304(f)(3)); or
                          (ii) the administration of a 
                        political committee established or 
                        maintained by the corporation.
  (c) Certification of Compliance Required Prior to Carrying 
Out Activity.--Prior to the making in connection with an 
election for Federal office of any contribution, donation, 
expenditure, independent expenditure, or disbursement for an 
electioneering communication by a corporation during a year, 
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), shall file a 
certification with the Commission, under penalty of perjury, 
that the corporation is not prohibited from carrying out such 
activity under subsection (b)(3), unless the chief executive 
officer has previously filed such a certification during the 
year. Nothing in this subsection shall be construed to apply to 
any contribution, donation, expenditure, independent 
expenditure, or disbursement from a separate segregated fund 
established and administered by a corporation under section 
316(b)(2)(C).
  (d) No Effect on Separate Segregate Funds of Domestic 
Corporations.--Nothing in this section shall be construed to 
prohibit any corporation which is not a foreign national 
described in paragraph (1) of subsection (b) from establishing, 
administering, and soliciting contributions to a separate 
segregated fund under section 316(b)(2)(C), so long as none of 
the amounts in the fund are provided by any foreign national 
described in paragraph (1) or (2) of subsection (b) and no 
foreign national described in paragraph (1) or (2) of 
subsection (b) has the power to direct, dictate, or control the 
establishment or administration of the fund.
  (e) No Effect on Other Laws.--Nothing in this section shall 
be construed to affect the determination of whether a 
corporation is treated as a foreign national for purposes of 
any law other than this Act.

           *       *       *       *       *       *       *


                [PROHIBITION OF CONTRIBUTIONS BY MINORS

  [Sec. 324. An individual who is 17 years old or younger shall 
not make a contribution to a candidate or a contribution or 
donation to a committee of a political party.]

SEC. 324. COORDINATED COMMUNICATIONS.

  (a) Coordinated Communications Defined.--For purposes of this 
Act, the term ``coordinated communication'' means--
          (1) a covered communication which, subject to 
        subsection (c), 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; or
          (2) any communication that republishes, disseminates, 
        or distributes, in whole or in part, any broadcast or 
        any written, graphic, or other form of campaign 
        material prepared by a candidate, an authorized 
        committee of a candidate, or their agents.
  (b) Covered Communication Defined.--
          (1) In general.--Except as provided in paragraph (4), 
        for purposes of this subsection, the term ``covered 
        communication'' means, for purposes of the applicable 
        election period described in paragraph (2), a public 
        communication (as defined in section 301(22)) that 
        refers to a clearly identified candidate for Federal 
        office and is publicly distributed or publicly 
        disseminated during such period.
          (2) Applicable election period.--For purposes of 
        paragraph (1), the ``applicable election period'' with 
        respect to a communication means--
                  (A) in the case of a communication which 
                refers to a candidate for the office of 
                President or Vice President, the period--
                          (i) beginning with the date that is 
                        120 days before the date of the first 
                        primary election, preference election, 
                        or nominating convention for nomination 
                        for the office of President which is 
                        held in any State; and
                          (ii) ending with the date of the 
                        general election for such office; or
                  (B) in the case of a communication which 
                refers to a candidate for any other Federal 
                office, the period--
                          (i) beginning with the date that is 
                        90 days before the earliest of the 
                        primary election, preference election, 
                        or nominating convention with respect 
                        to the nomination for the office that 
                        the candidate is seeking; and
                          (ii) ending with the date of the 
                        general election for such office.
          (3) Special rule for public distribution of 
        communications involving congressional candidates.--For 
        purposes of paragraph (1), in the case of a 
        communication involving a candidate for an office other 
        than President or Vice President, the communication 
        shall be considered to be publicly distributed or 
        publicly disseminated only if the dissemination or 
        distribution occurs in the jurisdiction of the office 
        that the candidate is seeking.
          (4) Exception.--The term ``covered communication'' 
        does not include--
                  (A) a communication appearing 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) a communication which constitutes a 
                candidate debate or forum conducted pursuant to 
                the regulations adopted by the Commission to 
                carry out section 304(f)(3)(B)(iii), or which 
                solely promotes such a debate or forum and is 
                made by or on behalf of the person sponsoring 
                the debate or forum.
  (c) No Finding of Coordination Based Solely on Sharing of 
Information Regarding Legislative or Policy Position.--For 
purposes of subsection (a)(1), a covered communication may not 
be considered to be 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 solely on the grounds that a 
person provided information to the candidate or committee 
regarding that person's position on a legislative or policy 
matter (including urging the candidate or party to adopt that 
person's position), so long as there is no discussion between 
the person and the candidate or committee regarding the 
candidate's campaign for election for Federal office.
  (d) Preservation of Certain Safe Harbors and Firewalls.--
Nothing in this section may be construed to affect 11 CFR 
109.21(g) or (h), as in effect on the date of the enactment of 
the Democracy is Strengthened by Casting Light on Spending in 
Elections Act.
  (e) Treatment of Coordination With Political Parties for 
Communications Referring to Candidates.--For purposes of this 
section, if a communication which refers to any clearly 
identified candidate or candidates of a political party or any 
opponent of such a candidate or candidates is determined to 
have been made in cooperation, consultation, or concert with or 
at the request or suggestion of a political committee of the 
political party but not in cooperation, consultation, or 
concert with or at the request or suggestion of such clearly 
identified candidate or candidates, the communication shall be 
treated as having been made in cooperation, consultation, or 
concert with or at the request or suggestion of the political 
committee of the political party but not with or at the request 
or suggestion of such clearly identified candidate or 
candidates.

SEC. 325. SPECIAL RULES FOR USE OF GENERAL TREASURY FUNDS BY COVERED 
                    ORGANIZATIONS FOR CAMPAIGN-RELATED ACTIVITY.

  (a) Use of Funds for Campaign-Related Activity.--
          (1) In general.--Subject to any applicable 
        restrictions and prohibitions under this Act, a covered 
        organization may make disbursements for campaign-
        related activity using--
                  (A) amounts paid or donated to the 
                organization which are designated by the person 
                providing the amounts to be used for campaign-
                related activity;
                  (B) unrestricted donor payments made to the 
                organization; and
                  (C) other funds of the organization, 
                including amounts received pursuant to 
                commercial activities in the regular course of 
                a covered organization's business.
          (2) No effect on use of separate segregated fund.--
        Nothing in this section shall be construed to affect 
        the authority of a covered organization to make 
        disbursements from a separate segregated fund 
        established and administered by the organization under 
        section 316(b)(2)(C).
  (b) Mutually Agreed Restrictions on Use of Funds for 
Campaign-Related Activity.--
          (1) Agreement and certification.--If a covered 
        organization and a person mutually agree, at the time 
        the person makes a donation, payment, or transfer to 
        the organization which would require the organization 
        to disclose the person's identification under section 
        304(g)(5)(A)(ii) or section 304(f)(6)(A)(ii), that the 
        organization will not use the donation, payment, or 
        transfer for campaign-related activity, then not later 
        than 30 days after the organization receives the 
        donation, payment, or transfer the organization shall 
        transmit to the person a written certification by the 
        chief financial officer of the covered organization 
        (or, if the organization does not have a chief 
        financial officer, the highest ranking financial 
        official of the organization) that--
                  (A) the organization will not use the 
                donation, payment, or transfer for campaign-
                related activity; and
                  (B) the organization will not include any 
                information on the person in any report filed 
                by the organization under section 304 with 
                respect to independent expenditures or 
                electioneering communications, so that the 
                person will not be required to appear in a 
                significant funder statement or a Top 5 Funders 
                list under section 318(e).
          (2) Exception for payments made pursuant to 
        commercial activities.--Paragraph (1) does not apply 
        with respect to any payment or transfer made pursuant 
        to commercial activities in the regular course of a 
        covered organization's business.
  (c) Certifications Regarding Disbursements for Campaign-
Related Activity.--
          (1) Certification by chief executive officer.--If, at 
        any time during a calendar quarter, a covered 
        organization makes a disbursement of funds for 
        campaign-related activity using funds described in 
        subsection (a)(1), the chief executive officer of the 
        covered organization or the chief executive officer's 
        designee (or, if the organization does not have a chief 
        executive officer, the highest ranking official of the 
        organization or the highest ranking official's 
        designee) shall file a statement with the Commission 
        which contains the following certifications:
                  (A) None of the campaign-related activity for 
                which the organization disbursed the funds 
                during the quarter was made in cooperation, 
                consultation, or concert with, or at the 
                request or suggestion of, any candidate or any 
                authorized committee or agent of such 
                candidate, or political committee of a 
                political party or agent of any political 
                party.
                  (B) The chief executive officer or highest 
                ranking official of the covered organization 
                (as the case may be) has reviewed and approved 
                each statement and report filed by the 
                organization under section 304 with respect to 
                any such disbursement made during the quarter.
                  (C) Each statement and report filed by the 
                organization under section 304 with respect to 
                any such disbursement made during the quarter 
                is complete and accurate.
                  (D) All such disbursements made during the 
                quarter are in compliance with this Act.
                  (E) No portion of the amounts used to make 
                any such disbursements during the quarter is 
                attributable to funds received by the 
                organization that were restricted by the person 
                who provided the funds from being used for 
                campaign-related activity pursuant to 
                subsection (b).
          (2) Application of electronic filing rules.--Section 
        304(d)(1) shall apply with respect to a statement 
        required under this subsection in the same manner as 
        such section applies with respect to a statement under 
        subsection (c) or (g) of section 304.
          (3) Deadline.--The chief executive officer or highest 
        ranking official of a covered organization (as the case 
        may be) shall file the statement required under this 
        subsection with respect to a calendar quarter not later 
        than 15 days after the end of the quarter.
  (d) Definitions.--For purposes of this section, the following 
definitions apply:
          (1) Covered organization.--The term ``covered 
        organization'' means any of the following:
                  (A) Any corporation which is subject to 
                section 316(a).
                  (B) Any labor organization (as defined in 
                section 316).
                  (C) Any organization described in paragraph 
                (4), (5), or (6) of section 501(c) of the 
                Internal Revenue Code of 1986 and exempt from 
                tax under section 501(a) of such Code.
                  (D) Any political organization under section 
                527 of the Internal Revenue Code of 1986, other 
                than a political committee under this Act.
          (2) Campaign-related activity.--
                  (A) In general.--The term ``campaign-related 
                activity'' means--
                          (i) an independent expenditure 
                        consisting of a public communication 
                        (as defined in section 301(22)), a 
                        transfer of funds to another person 
                        (other than the transferor itself) for 
                        the purpose of making such an 
                        independent expenditure by that person 
                        or by any other person, or (in 
                        accordance with subparagraph (B)) a 
                        transfer of funds to another person 
                        (other than the transferor itself) 
                        which is deemed to have been made for 
                        the purpose of making such an 
                        independent expenditure by that person 
                        or by any other person; or
                          (ii) an electioneering communication, 
                        a transfer of funds to another person 
                        (other than the transferor itself) for 
                        the purpose of making an electioneering 
                        communication by that person or by any 
                        other person, or (in accordance with 
                        subparagraph (B)) a transfer of funds 
                        to another person (other than the 
                        transferor itself)which is deemed to 
                        have been made for the purpose of 
                        making an electioneering communication 
                        by that person or by any other person.
                  (B) Rule for deeming transfers made for 
                purpose of campaign-related activity.--For 
                purposes of subparagraph (A), in determining 
                whether a transfer of funds by one person to 
                another person shall be deemed to have been 
                made for the purpose of making an independent 
                expenditure consisting of a public 
                communication or an electioneering 
                communication, the following rules apply:
                          (i) The transfer shall be deemed to 
                        have been made for the purpose of 
                        making such an independent expenditure 
                        or an electioneering communication if--
                                  (I) the person designates, 
                                requests, or suggests that the 
                                amounts be used for such 
                                independent expenditures or 
                                electioneering communications 
                                and the person to whom the 
                                amounts were transferred agrees 
                                to do so or does so;
                                  (II) the person making such 
                                independent expenditures or 
                                electioneering communications 
                                or another person acting on 
                                that person's behalf expressly 
                                solicited the person for a 
                                donation or payment for making 
                                or paying for any such 
                                independent expenditure or 
                                electioneering communication;
                                  (III) the person and the 
                                person to whom the amounts were 
                                transferred engaged in 
                                substantial written or oral 
                                discussion regarding the person 
                                either making, or donating or 
                                paying for, such independent 
                                expenditures or electioneering 
                                communications;
                                  (IV) the person or the person 
                                to whom the amounts were 
                                transferred knew or had reason 
                                to know of the covered 
                                organization's intent to 
                                disburse funds for such 
                                independent expenditures or 
                                electioneering communications; 
                                or
                                  (V) the person or the person 
                                to whom the amounts were 
                                transferred made such an 
                                independent expenditure or 
                                electioneering communication 
                                during the 2-year period which 
                                ends on the date on which the 
                                amounts were transferred.
                          (ii) The transfer shall not be deemed 
                        to have been made for the purpose of 
                        making such an independent expenditure 
                        or an electioneering communication if 
                        the transfer was a commercial 
                        transaction occurring in the ordinary 
                        course of business between the person 
                        and the person to whom the amounts were 
                        transferred, unless there is 
                        affirmative evidence that the amounts 
                        were transferred for the purpose of 
                        making such an independent expenditure 
                        or electioneering communication.
          (3) Unrestricted donor payment.--The term 
        ``unrestricted donor payment'' means a payment to a 
        covered organization which consists of a donation or 
        payment from a person other than the covered 
        organization, except that such term does not include--
                  (A) any payment made pursuant to commercial 
                activities in the regular course of a covered 
                organization's business; or
                  (B) any donation or payment which is 
                designated by the person making the donation or 
                payment to be used for campaign-related 
                activity or made in response to a solicitation 
                for funds to be used for campaign-related 
                activity.

SEC. 326. OPTIONAL USE OF SEPARATE ACCOUNT BY COVERED ORGANIZATIONS FOR 
                    CAMPAIGN-RELATED ACTIVITY.

  (a) Optional Use of Separate Account.--
          (1) Establishment of account.--
                  (A) In general.--At its option, a covered 
                organization may make disbursements for 
                campaign-related activity using amounts from a 
                bank account established and controlled by the 
                organization to be known as the Campaign-
                Related Activity Account (hereafter in this 
                section referred to as the ``Account''), which 
                shall be maintained separately from all other 
                accounts of the organization and which shall 
                consist exclusively of the deposits described 
                in paragraph (2).
                  (B) Mandatory use of account after 
                establishment.--If a covered organization 
                establishes an Account under this section, it 
                may not make disbursements for campaign-related 
                activity from any source other than amounts 
                from the Account.
                  (C) Exclusive use of account for campaign-
                related activity.--Amounts in the Account shall 
                be used exclusively for disbursements by the 
                covered organization for campaign-related 
                activity. After such disbursements are made, 
                information with respect to deposits made to 
                the Account shall be disclosed in accordance 
                with section 304(g)(5) or section 304(f)(6).
          (2) Deposits described.--The deposits described in 
        this paragraph are deposits of the following amounts:
                  (A) Amounts donated or paid to the covered 
                organization by a person other than the 
                organization for the purpose of being used for 
                campaign-related activity, and for which the 
                person providing the amounts has designated 
                that the amounts be used for campaign-related 
                activity with respect to a specific election or 
                specific candidate.
                  (B) Amounts donated or paid to the covered 
                organization by a person other than the 
                organization for the purpose of being used for 
                campaign-related activity, and for which the 
                person providing the amounts has not designated 
                that the amounts be used for campaign-related 
                activity with respect to a specific election or 
                specific candidate.
                  (C) Amounts donated or paid to the covered 
                organization by a person other than the 
                organization in response to a solicitation for 
                funds to be used for campaign-related activity.
                  (D) Amounts transferred to the Account by the 
                covered organization from other accounts of the 
                organization, including from the organization's 
                general treasury funds.
          (3) No treatment as political committee.--The 
        establishment and administration of an Account in 
        accordance with this subsection shall not by itself be 
        treated as the establishment or administration of a 
        political committee for any purpose of this Act.
  (b) Reduction in Amounts Otherwise Available for Account in 
Response to Demand of General Donors.--
          (1) In general.--If a covered organization which has 
        established an Account obtains any revenues during a 
        year which are attributable to a donation or payment 
        from a person other than the covered organization, and 
        if any person who makes such a donation or payment to 
        the organization notifies the organization in writing 
        (at the time of making the donation or payment) that 
        the organization may not use the donation or payment 
        for campaign-related activity, the organization shall 
        reduce the amount of its revenues available for 
        deposits to the Account which are described in 
        subsection (a)(3)(D) during the year by the amount of 
        the donation or payment.
          (2) Exception.--Paragraph (1) does not apply with 
        respect to any payment made pursuant to commercial 
        activities in the regular course of a covered 
        organization's business.
  (c) Covered Organization Defined.--In this section, the term 
``covered organization'' means any of the following:
          (1) Any corporation which is subject to section 
        316(a).
          (2) Any labor organization (as defined in section 
        316).
          (3) Any organization described in paragraph (4), (5), 
        or (6) of section 501(c) of the Internal Revenue Code 
        of 1986 and exempt from tax under section 501(a) of 
        such Code.
          (4) Any political organization under section 527 of 
        the Internal Revenue Code of 1986, other than a 
        political committee under this Act.
  (d) Campaign-Related Activity Defined.--In this section, the 
term ``campaign-related activity'' has the meaning given such 
term in section 325.

SEC. 327. DISCLOSURES BY COVERED ORGANIZATIONS TO SHAREHOLDERS, 
                    MEMBERS, AND DONORS OF INFORMATION ON DISBURSEMENTS 
                    FOR CAMPAIGN-RELATED ACTIVITY.

  (a) Including Information in Regular Periodic Reports.--
          (1) In general.--A covered organization which submits 
        regular, periodic reports to its shareholders, members, 
        or donors on its finances or activities shall include 
        in each such report the information described in 
        paragraph (2) with respect to the disbursements made by 
        the organization for campaign-related activity during 
        the period covered by the report.
          (2) Information described.--The information described 
        in this paragraph is, for each disbursement for 
        campaign-related activity--
                  (A) the date of the independent expenditure 
                or electioneering communication involved;
                  (B) the amount of the independent expenditure 
                or electioneering communication involved;
                  (C) the name of the candidate identified in 
                the independent expenditure or electioneering 
                communication involved, the office sought by 
                the candidate, and (if applicable) whether the 
                independent expenditure or electioneering 
                communication involved was in support of or in 
                opposition to the candidate;
                  (D) in the case of a transfer of funds to 
                another person, the information required by 
                subparagraphs (A) through (C), as well as the 
                name of the recipient of the funds and the date 
                and amount of the funds transferred;
                  (E) the source of such funds; and
                  (F) such other information as the Commission 
                determines is appropriate to further the 
                purposes of this subsection.
  (b) Hyperlink to Information Included in Reports Filed With 
Commission.--
          (1) Requiring posting of hyperlink.--If a covered 
        organization maintains an Internet site, the 
        organization shall post on such Internet site a 
        hyperlink from its homepage to the location on the 
        Internet site of the Commission which contains the 
        following information:
                  (A) The information the organization is 
                required to report under section 304(g)(5)(A) 
                with respect to public independent 
                expenditures.
                  (B) The information the organization is 
                required to include in a statement of 
                disbursements for electioneering communications 
                under section 304(f)(6).
          (2) Deadline; duration of posting.--The covered 
        organization shall post the hyperlink described in 
        paragraph (1) not later than 24 hours after the 
        Commission posts the information described in such 
        paragraph on the Internet site of the Commission, and 
        shall ensure that the hyperlink remains on the Internet 
        site of the covered organization until the expiration 
        of the 1-year period which begins on the date of the 
        election with respect to which the public independent 
        expenditures or electioneering communications are made.
  (c) Covered Organization Defined.--In this section, the term 
``covered organization'' means any of the following:
          (1) Any corporation which is subject to section 
        316(a).
          (2) Any labor organization (as defined in section 
        316).
          (3) Any organization described in paragraph (4), (5), 
        or (6) of section 501(c) of the Internal Revenue Code 
        of 1986 and exempt from tax under section 501(a) of 
        such Code.
          (4) Any political organization under section 527 of 
        the Internal Revenue Code of 1986, other than a 
        political committee under this Act.

           *       *       *       *       *       *       *

                              ----------                              


LOBBYING DISCLOSURE ACT OF 1995

           *       *       *       *       *       *       *



SEC. 5. REPORTS BY REGISTERED LOBBYISTS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Semiannual Reports on Certain Contributions.--
          (1) In general.--Not later than 30 days after the end 
        of the semiannual period beginning on the first day of 
        January and July of each year, or on the first business 
        day after such 30th day if the 30th day is not a 
        business day, each person or organization who is 
        registered or is required to register under paragraph 
        (1) or (2) of section 4(a), and each employee who is or 
        is required to be listed as a lobbyist under section 
        4(b)(6) or subsection (b)(2)(C) of this section, shall 
        file a report with the Secretary of the Senate and the 
        Clerk of the House of Representatives containing--
                  (A) * * *

           *       *       *       *       *       *       *

                  (F) the name of each Presidential library 
                foundation, and each Presidential inaugural 
                committee, to whom contributions equal to or 
                exceeding $200 were made by the person or 
                organization, or a political committee 
                established or controlled by the person or 
                organization, within the semiannual period, and 
                the date and amount of each such contribution 
                within the semiannual period; [and]
                  (G) the amount of any independent expenditure 
                (as defined in section 301(17) of the Federal 
                Election Campaign Act of 1971 (2 U.S.C. 
                431(17)) equal to or greater than $1,000 made 
                by such person or organization, and for each 
                such expenditure the name of each candidate 
                being supported or opposed and the amount spent 
                supporting or opposing each such candidate;
                  (H) the amount of any electioneering 
                communication (as defined in section 304(f)(3) 
                of such Act (2 U.S.C. 434(f)(3)) equal to or 
                greater than $1,000 made by such person or 
                organization, and for each such communication 
                the name of the candidate referred to in the 
                communication and whether the communication 
                involved was in support of or in opposition to 
                the candidate; and
                  [(G)] (I) a certification by the person or 
                organization filing the report that the person 
                or organization--
                          (i) * * *

           *       *       *       *       *       *       *


  MINORITY VIEWS OF REPRESENTATIVES DAN LUNGREN, KEVIN McCARTHY, AND 
                              GREGG HARPER

          We find no basis for the proposition that, in the 
        context of political speech, the Government may impose 
        restrictions on certain disfavored speakers.

                              INTRODUCTION

    This bill is nothing less--and nothing more--than an 
attempt to change the laws of campaign finance to silence the 
critics of one party in order to give it an advantage over the 
other. Worse still, the bill is specifically intended to 
curtail speech before its provisions can be challenged or even 
understood. The haste of efforts to enact it, the proliferation 
of errors or miscalculations in its drafting, and the utterly 
partisan nature of its design betray that this bill is not 
about good government--it is about protecting the majority's 
candidates from criticism in the 2010 election.
    After a three-month drafting process, Democrats insisted on 
rushing this bill from introduction (April 29) to hearings (May 
6 and 11) to markup (May 20). It appears floor consideration 
will be equally rushed, perhaps occurring May 27 or 28 (no 
doubt under the kind of highly restrictive rule that has become 
the norm in this Congress). This is despite the bill's 
complexity--it began as an 84-page revision to a system that 
already regulates 33 types of contributions and speech and 71 
different types of speakers, and has only grown. It is despite 
opposition manifested in letters to the committee from (1) 
eight former FEC commissioners, (2) a group of more than 85 
organizations from a wide range of industries and interests, 
(3) the Chamber of Commerce, (4) the American Society of 
Association Executives, (5) the Organization for International 
Investment, and (6) the Center for Competitive Politics. And it 
is despite the absence of meaningful bipartisan collaboration 
or support.

                            THE RUSH TO PASS

    Immediately after the Supreme Court issued its decision in 
Citizens United v. Federal Election Commission on January 21, 
2010, Democrats assigned the chair of their House campaign 
committee to lead the effort to pass a campaign finance bill 
(working in collaboration with the former chair of their Senate 
campaign committee). The sponsors have made clear from the 
beginning that: (1) they intend for this bill to affect the 
2010 elections, and (2) they expect and desire that this bill 
will deter political speech.
    In Citizens United, the Court held that political speech 
could not be banned based on the corporate form of the speaker. 
The practical effect of the ruling is that organizations such 
as corporations, labor unions, trade associations and nonprofit 
advocacy groups receiving corporate funds may use their general 
treasuries (as opposed to their connected PACs) to directly 
advocate for and against federal candidates. (Contrary to some 
reports, the decision did not allow corporations to make direct 
contributions to candidates.)
    Despite the breathless rhetoric that began the moment the 
Court announced its decision, there is no evidence before this 
Committee (or anywhere else that we can find) showing a change 
in political spending practices caused by Citizens United. The 
frantic rush to legislate is not a response to actual facts. It 
is, instead, an effort to use the Citizens United case as a 
smokescreen to cover up a historically unprecedented twisting 
of the campaign finance laws for partisan advantage.
    It is no wonder, then, that the bill's advocates prefer to 
talk about almost anything except what the bill actually says 
and what it actually will do. Indeed, over the course of two 
hearings this Committee heard from only one witness--the 
general counsel of Democracy 21--who claimed any involvement in 
the drafting of the bill, and even he was unable to accurately 
answer questions about its effect. Of the eight amendments 
adopted by the Committee, four--including the 87-page 
substitute to the 84-page introduced bill--were to correct 
drafting errors apparently unnoticed in the three months from 
the Citizens United decision to the bill's introduction.
    Among the errors implicitly acknowledged by the sponsors 
were a reversal of the Federal Election Commission's 
painstakingly crafted rule to allow free political speech on 
the Internet, a ban on PACs connected to companies employing 
over 5 million Americans and generating 6% of GDP, and a 
requirement that CEOs file a certification under penalty of 
perjury with the FEC before making any ``contribution, 
donation, [or] expenditure.'' Because the word ``donation'' is 
not defined either in the Federal Election Campaign Act or the 
bill, that certification requirement apparently would have 
included charitable or civic donations as well as donations for 
state or local political activity where they are legal under 
state law.
    Fortunately the majority accepted amendments from 
Representative McCarthy to correct some of these obvious 
errors. But the question remains what other consequences--
intended or otherwise--have not yet been identified to be 
corrected. That question is particularly relevant because the 
substitute amendment was not provided to us until 22 hours 
before the beginning of the markup, hardly leaving time for a 
thorough review of its implications.

                        THE RUSH TO TAKE EFFECT

    The bill becomes effective 30 days after its enactment, 
whether or not the Federal Election Commission has promulgated 
regulations. It is, of course, not possible either practically 
or consistent with the Administrative Procedure Act for 
regulations to be issued that quickly. This demonstrates a 
specific intent by the sponsors not only to rush the bill into 
effect to influence the outcome of the 2010 election, but to 
ignore the constitutional ramifications of imposing vague and 
complex restriction on political speech without any 
administrative clarification or instruction.
    For example, Section 102 of the bill defines as a foreign 
national any corporation in which another foreign national 
``directly or indirectly owns 20 percent or more of the voting 
shares.'' The phrase ``directly or indirectly'' is not defined, 
leaving it to those who wish to express views on issues and 
candidates to determine whether it means corporations must look 
through institutional owners such as mutual funds and trusts to 
determine whether their ultimate owners are foreign nationals 
with ``indirect'' interests. This analysis of multiple levels 
of ownership would be highly burdensome or even impossible, and 
the mere possibility that it is required likely would be enough 
to prevent speech. That, of course, appears to be precisely the 
sponsors' intent.
    Even aside from institutional owners, companies would have 
to determine whether 20% or more of their shares are owned by 
foreign nationals as defined in the legislation. For a 
publicly-traded company this task would not only be difficult 
and expensive, but subject to constant change. The lack of any 
regulations or explanation on how to comply will mean the most 
likely outcome is, again, a decision not to speak for fear of 
violating a vague law. What chief executive will sign a 
certification under penalty of perjury when his counsel cannot 
advise what standard the certification will be judged against?
    This problem extends beyond corporations trying to identify 
the nationality of their shareholders. The bill also defines as 
foreign nationals any corporation whose board of directors has 
a majority of foreign nationals. Many political committees of 
candidates and parties are incorporated entities. Under the 
standard set out in this bill, the chief executive of those 
committees will have to sign a certification under penalty of 
perjury that they do not have a majority of foreign nationals 
serving on the board of directors. To do this prudently, 
incorporated entities such as the Democratic National Committee 
and the Democratic Congressional Campaign Committee will have 
to ask each of their directors to verify their nationality--at 
least in the absence of a clarifying regulation from the FEC.
    Sections 103 and 104 of the bill re-write rules governing 
coordinated activity--rules the FEC has been struggling to 
write consistent with the statute and the Constitution since 
BCRA passed in 2002. Again, the bill creates ambiguous 
standards for candidates and party committees and leaves no 
opportunity for clarification from the FEC.
    There will be no opportunity for the FEC to issue 
regulations explaining the bill's wide-ranging and complex new 
disclosure requirements, nor to create forms that filers can 
use to comply with them. There will be no opportunity for the 
FEC to explain when the new advertising disclaimers are an 
unreasonable burden--leaving the speakers to guess and risk 
sanctions if they are wrong.
    There is, of course, only one reason to rush this bill 
through the House and Senate and then rush it into effect--to 
alter the outcome of the 2010 election. The sponsors have been 
clear that is what they intend.\1\
---------------------------------------------------------------------------
    \1\See, e.g., ``New Rules Proposed on Campaign Donors,'' The Wall 
Street Journal, Feb. 12, 2010 (``[Sen. Schumer] said he hoped the 
proposed legislation would discourage companies and unions from 
spending freely on political advertisements. The disclosure 
requirements `will make them think twice,' before attempting to 
influence election outcomes, he said, adding, `The deterrent effect 
should not be underestimated.''') and ``Castle, Jones Back Van Hollen 
Bill,'' Politico, April 28, 2010 (``Van Hollen has said he's hopeful 
the bill could be implemented in time to affect newly legal ad spending 
in 2010 congressional races.'').
---------------------------------------------------------------------------
    Representative Harper offered an amendment to make the bill 
effective on January 1, 2011. This would give the FEC time to 
issue regulations and the courts time for at least an initial 
review of the bill's constitutionality in a preliminary 
injunction proceeding. It would also prevent the bill from 
being a tool to affect the outcome of the 2010 election. The 
majority rejected this amendment on a party-line vote.
    If the intent to change election outcomes were not clear 
enough already, Section 401 makes it even clearer. Here the 
bill writes rules for judicial review that are different from 
both the Federal Election Campaign Act and the Bipartisan 
Campaign Reform Act, both of which are amended in this bill. 
The result is not only the longest possible process for 
judicial review, but the possibility of lengthy collateral 
litigation to decide which of the three processes should apply. 
So, in addition to the bill being rushed into effect, the 
opportunity for a court to review its compliance with the 
Constitution is delayed. This represents the maximum possible 
effort to leave unconstitutional provisions in effect as long 
as possible.
    Because the judicial review provision is in the 
jurisdiction of another committee, we were not able to seek to 
amend it. Had we had the opportunity, we would have done so.

                    THE RUSH TO BAN SPEECH DIRECTLY

    The sponsors of this bill like to describe it in gauzy, 
general terms as being about ``disclosure,'' and even went so 
far as to bestow that misleading label on it. However, the 
title of Section 101 begins ``Prohibiting independent 
expenditures and electioneering communications'' and the title 
of Section 102 begins ``Application of the ban on contributions 
and expenditures.'' The bill explicitly and forthrightly bans 
certain entities from political speech, and it does so in a way 
that clearly is designed for partisan bias.
    In its first substantive section, the bill bans independent 
expenditures and electioneering communications (which we will 
call ``political spending'' or ``political expenditures'') by 
companies holding a government contract worth $50,000 or more 
(an amount revised to $7,000,000 in the Committee markup). The 
bill claims in its findings that this will prevent government 
officials from influencing the contracting process based on 
political spending, and will prevent contractors from feeling 
pressure to make political expenditures.
    What the bill ignores is that those arguments apply with 
equal or even greater force to unions representing government 
employees. Those unions negotiate directly with the government 
on the terms and conditions of employment, and their own 
revenues depend on having government employees pay them for 
this service. As such, union representatives have exactly the 
same incentives to influence contract decisions by government 
officials and exactly the same risks of being subjected to 
pressure to make political expenditures.
    Despite this symmetry of potential for corruption or its 
appearance, the bill singles out corporate government 
contractors and ignores unions. Preventing quid pro quo 
corruption is the only remaining governmental interest 
sufficient to justify limitations on political speech. By 
ignoring this interest with respect to some speakers (unions) 
while emphasizing it with respect to others (business 
corporations), the majority undermines the constitutional basis 
of Congress' authority to act.
    Representative Lungren offered an amendment to provide that 
the prohibition on political spending by government contractors 
would also apply to unions representing government employees. 
The amendment was rejected on a party-line vote. Representative 
Lungren offered another amendment to provide that labor unions 
representing employees of government contractors would be 
covered by the ban in the same way as the contractors 
themselves. That amendment also was rejected on a party-line 
vote.
    Other recipients of government funds are subject to the 
same possibility of corruption as contractors. This concern is 
shown by the bill's ban on political spending by TARP 
recipients, and applies with equal force to recipients of 
government grants. Grantees may also make political 
expenditures to influence the grant-award process or feel 
pressured to make expenditures in return for receiving grants. 
Recognizing this, Representative Harper offered an amendment to 
prohibit organizational recipients of federal funds (such as 
ACORN) from making political expenditures. The amendment was 
rejected.
    The second substantive section of the bill bans political 
spending by an expanded range of foreign nationals. Proponents 
of the bill use the example of foreign sovereign wealth funds 
to justify expanding the existing limits on foreign activity in 
American elections. Recognizing this concern, Representative 
Lungren offered an amendment to replace the bill's language on 
foreign nationals with a simpler, more enforceable two-part 
section. The first part would codify the existing FEC 
regulation prohibiting foreign nationals making decision on 
spending to influence American elections. The second would ban 
political spending by entities majority-owned by a foreign 
government or political party. The amendment was rejected. 
Because the description of sovereign wealth funds in the 
amendment was questioned, he then proposed adopting the first 
part of the amendment, codifying the current FEC regulatory 
prohibition. That amendment was rejected on a party-line vote.
    While the bill prohibits political spending by corporations 
based on the nationality of their owners or directors, it 
includes no similar provisions to ensure that the massive 
political spending by labor unions is untainted by foreign 
influence. To correct this disparity, Representative Lungren 
proposed an amendment to require that union chief executives 
make a certification similar to that required of corporate 
chief executives attesting that no dues in the union treasury 
funding the political spending were received from foreign 
nationals. This amendment was rejected on a party-line vote. 
The majority opposed the amendment based on the burden it would 
impose on unions to verify the citizenship status of the 
members whose funds would be used for political expenditures--
yet the majority refused to recognize the burden on 
corporations of verifying the citizenship status of 
shareholders to determine whether the foreign nationals exceed 
the bill's 20% threshold.
    Because of the potential for conflicts when government 
officials and funds are used to collect money to be used for 
political spending, Representative McCarthy offered an 
amendment stating that funds obtained by a union through a 
government-administered payroll deduction program may not be 
used for political expenditures.\2\ The majority rejected this 
amendment on a party-line vote.
---------------------------------------------------------------------------
    \2\The United States Court of Appeals upheld a similar provision 
against a federal constitutional challenge in Toledo Area AFL-CIO 
Council v. Pizza, 154 F.3d 307 (6th Cir., 1998).
---------------------------------------------------------------------------
    The Committee's consideration of the bill showed a clear 
pattern. The underlying language bans speech by a specific 
class of organizations, corporations. When we sought to at 
least make the bans even-handed by applying them to unions, the 
majority rejected the efforts again and again. The majority's 
refusal to make the bill apply evenly to all speakers sets it 
on a collision course with the clear holding of the Supreme 
Court just four months ago: ``We find no basis for the 
proposition that, in the context of political speech, the 
Government may impose restrictions on certain disfavored 
speakers.''\3\
---------------------------------------------------------------------------
    \3\Citizens United v. Federal Election Comm'n, 558 U.S._, No. 08-
205, slip op. at 25 (Jan. 21, 2010).
---------------------------------------------------------------------------

                   THE RUSH TO BAN SPEECH INDIRECTLY

    The bill's sponsors appear to believe that by making 
disclosure its most prominent--and even eponymous--purpose they 
can perform an act of legerdemain and convince people that its 
purpose really is disclosure. No one should be fooled.
    Under current law, most organizations that engage in the 
political process already are subject to extensive reporting 
and disclosure requirements. Political committees--including 
candidate committees, party committees, PACs, and others--must 
report regularly to the FEC on their receipt and disbursement 
of funds. They must itemize contributions from donors giving 
more than $200 per year. In most cases they must file 
electronically, and as the election becomes closer their 
reports become more frequent. Groups organized under section 
527 of the IRS code, if they are not already covered in the 
category above, must file as though they were political 
committees.
    In addition to these entities that must report all of their 
activity regularly to the FEC, anyone making an expenditure for 
an independent expenditure (over $250) or an electioneering 
communication (over $10,000) must report that expenditure to 
the FEC. In sum, there is no shortage of reporting and 
disclosure required under current law.
    With political committees and 527s covered by existing law 
and 501(c)(3) charitable organizations banned from political 
activity, the remaining targets of this bill's disclosure 
requirements are 501(c)(4) social welfare organizations and 
501(c)(6) trade associations. While these organizations are 
permitted to make political expenditures under the tax code and 
retain their tax-exempt status, such expenditures may not be 
their primary activity. As such, 501(c) organizations by 
definition are engaged in extensive non-political activities 
that form their primary activity and establish their identity 
(shown, for example, by the clearly identified interests of 
501(c)(4) organizations such as the Sierra Club and the 
National Rifle Association). The sponsors have not explained 
why this identity is not enough information for voters, and 
must be supplemented by delving into the organizations' sources 
of funds--especially when donations identified for use in 
political spending already must be disclosed.
    This very effort to force disclosure of sources of funds 
raises serious constitutional concerns. The Supreme Court found 
in NAACP v. Alabama that the government could not compel these 
organizations to reveal their donors publicly; the only 
exception to this rule has been where the donation is given 
specifically for use in a political expenditure. The bill turns 
this presumption on its head--the new rule is that donations 
above a certain amount must be disclosed unless they are 
specifically excluded from use for political expenditures.
    In an effort to avoid this constitutional limitation, the 
bill's authors create a new category or political entity with 
reporting obligations: the ``Campaign Related Activity 
Account'' (``CRAA''). Depending on a convoluted set of 
circumstances, the threshold above which disclosure is required 
may be $6,000 or $10,000 if an organization established a CRAA 
and $600 or $1,000 if it does not. In an effort to partially 
mitigate the new compliance burden of this system and slightly 
reduce the legal thicket one must navigate to comply with the 
campaign finance law, Representative McCarthy offered an 
amendment to set the disclosure threshold for organizations 
with a CRAA at the same level as the current threshold for 
itemized disclosure by political committees. This amendment was 
rejected on a party-line vote.
    The most likely effect of this bill's disclosure regime is 
not to provide the public with useful information, but to 
impose still-higher compliance costs and deter political 
speech. Indeed, from the statements of the sponsors it appears 
that is precisely the intent. We commend attention to the 
detailed critique of this regime in the letter from eight 
former FEC commissioners that is part of the markup record. We 
also condemn the use of a salutary goal--disclosure of money 
spent to influence politics--to conceal an effort that is 
actually designed to stifle political speech for partisan gain.
    The bill includes another attempt to stifle speech that 
masquerades as adding information for the public. The new 
``stand by your ad'' requirement for organizations making 
political expenditures gives every appearance of being designed 
to restrict speech. The rule is modeled on one in BCRA for 
candidates. In a 2007 article, Bob Bauer (then a campaign 
finance lawyer for Democrats including candidate Barack Obama, 
now the White House Counsel) said of the BCRA rule, ``this 
requirement makes sense only if its true use is clearly 
identified: to regulate the content of ads.''\4\ Bauer argues 
that the disclosure provides no benefit to the audience, which 
assumes the ad is approved by the candidate who paid for it. 
Likewise, existing law will require the sponsors subject to 
this bill's ``stand by your ad'' rule to disclose that they 
paid for the ad, so there is no added disclosure benefit to the 
viewer.
---------------------------------------------------------------------------
    \4\``Disclosure in an Expanded Regulatory System,'' 6 Election Law 
Journal 38, 45-46 (2007).
---------------------------------------------------------------------------
    On the other hand, the disclosures required in this bill 
are exceptionally onerous. The head of an organization paying 
for an ad must identify himself or herself by name and title 
and state the name of the organization twice. If there is a 
``significant funder'' that person must also identify himself 
or herself by name and title and state the name of their 
organization three times. The result can be--in addition to the 
currently required disclosure of who paid for the ad--two 
names, two titles, and no fewer than five recitations of 
organizational names. One could reasonably expect this to 
consume more than half of a 30-second ad, and our experiments 
show that indeed it does.
    In the substitute amendment offered by the majority there 
is a feeble attempt to mitigate this burden on speech by 
calling on the FEC to promulgate regulations to determine when 
the disclaimer constitutes a hardship by consuming a 
disproportionate amount of the ad's content. This is another 
example of the bill's politically-motivated sleight-of-hand--
the disclaimer rule becomes effective 30 days after enactment, 
but this hardships exemption is not effective until the FEC 
issues regulations. Thus the exemption is likely to be 
nonexistent during the 2010 elections.
    In his testimony before this Committee, former United 
States Solicitor General Theodore B. Olson said, ``When we are 
going to restrict the ability of individuals in this country to 
speak and make it a crime if they get it wrong, we have a very 
solemn obligation to make it very, very clear.'' This statement 
emphasizes the critical importance of campaign finance laws 
that are clear and easily understood--a standard this bill 
badly fails to meet. The Supreme Court has said ``political 
speech . . . is central to the meaning and purpose of the First 
Amendment.''\5\ When legislating in the area, Congress must not 
be so vague or impose rules so burdensome that it infringes 
this core constitutional right.
---------------------------------------------------------------------------
    \5\Citizens United v. Federal Election Comm'n, 558 U.S.__, No. 08-
205, slip op. at 12 (Jan. 21, 2010).
---------------------------------------------------------------------------

                     THE RUSH TO COMPLICATE SPEECH

    At the Committee's February 3 hearing on Citizens United 
decision, members from both parties supported the idea of 
increasing or eliminating the limit on political party spending 
done in coordination with candidates. The members noted that 
the funds spent would still be ``hard money'' subject to the 
source and amount limitations in the Federal Election Campaign 
Act and that lifting the limit would give candidates a ready 
and non-corrupting source of support if they were targeted by 
an attack. Making this change is a simple revision to the 
statute. The bill's authors turned it into eight pages of text 
redefining terms and creating new rules and exceptions and 
doing, frankly, we know not what else.
    In the first hearing on this bill on May 6, Representative 
Lungren asked a witness who had stated he was involved in 
drafting the bill whether the new definition of ``coordinated 
communication'' meant that a candidate could be liable for 
accepting an excessive contribution based on activity the 
candidate knew nothing about, if someone republished the 
candidate's campaign material without the candidate's 
knowledge. The witness hemmed, hawed, and ultimately insisted 
the language in the bill is the same as that in existing law. 
It is true that words appear in existing law, but they appear 
in a section that states republication of campaign material is 
an expenditure. This is significantly different from stating 
that it is--alone, with nothing else--a coordinated 
communication and therefore a contribution. In the face of this 
testimony, we can only conclude that even the bill's authors do 
not understand it.
    Representative Lungren offered an amendment to do exactly 
and only what the members from both parties discussed at the 
February 3 hearing--remove the limit on expenditures made by a 
party in coordination with a candidate. The amendment was 
rejected.

                               CONCLUSION

    This bill is both a smokescreen to adopt still more 
restrictions on political speech in the name of ``reform'' and 
an attempt to use Citizens United as a smokescreen to stifle 
criticism of Democrats in order to help their candidates retain 
office in the 2010 election.
    More than half of the majority's witnesses at hearings on 
this bill said the real solution is not disclosure but taxpayer 
financing of congressional campaigns. At the markup of the bill 
Representative Capuano proposed an amendment to do just that, 
based on a bill whose cost is estimated at nearly $1 billion 
annually to fund campaigns for Congress.
    The bill itself shows a consistent pattern of restricting 
corporate speech and allowing unions to proceed unhindered. For 
instance, the $600 disclosure threshold in the bill appears to 
be just above the annual dues of most union members--meaning 
unions will have no additional disclosure obligations. That is 
in addition to being exempt outright from the bill's bans on 
political spending. The bill's sponsors said repeatedly that 
they intend the bill to affect the 2010 elections and they 
intend it to limit political speech.
    Perhaps the Chicago Tribune summarized H.R. 5175 best: 
``Though DISCLOSE has some tolerable provisions, it is on the 
whole a vast and unconstitutional infringement on a key 
American freedom.'' This is a deeply flawed bill. It deserves 
vigorous and forthright opposition and prompt defeat.

                                   Daniel E. Lungren.
                                   Kevin McCarthy.
                                   Gregg Harper.

                                  <all>

```