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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2742 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 606
106th CONGRESS
  2d Session
                                S. 2742

 To amend the Internal Revenue Code of 1986 to increase disclosure for 
 certain political organizations exempt from tax under section 527 and 
                section 501(c), and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 15, 2000

Mr. Smith of Oregon (for himself, Mr. Abraham, Mr. Ashcroft, Mr. Burns, 
Mr. Santorum, Mr. Gorton, Mrs. Hutchison, Mr. Allard, Mr. Bennett, Mr. 
Coverdell, Mr. Gregg, Mr. Helms, Mr. Thomas, Mr. Inhofe, Mr. Mack, Mr. 
   Warner, Mr. Bunning, Mr. Lott, Mr. McConnell, Mr. Crapo, and Mr. 
 Roberts) introduced the following bill; which was read the first time.

                             June 16, 2000

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to increase disclosure for 
 certain political organizations exempt from tax under section 527 and 
                section 501(c), and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Tax-Exempt 
Political Disclosure Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--SECTION 527 ORGANIZATIONS

Sec. 101. Required notification of section 527 status.
Sec. 102. Disclosures by political organizations.
Sec. 103. Return requirements relating to section 527 organizations.
   TITLE II--TAX-EXEMPT BUSINESS AND LABOR ORGANIZATIONS ENGAGING IN 
                           POLITICAL ACTIVITY

Sec. 201. Notification and disclosures of certain section 501 
                            organizations.
Sec. 202. Random audits.
Sec. 203. Nonseverability.

                   TITLE I--SECTION 527 ORGANIZATIONS

SEC. 101. REQUIRED NOTIFICATION OF SECTION 527 STATUS.

    (a) In General.--Section 527 of the Internal Revenue Code of 1986 
(relating to political organizations) is amended by adding at the end 
the following new subsection:
    ``(i) Organizations Must Notify Secretary That They Are Section 527 
Organizations.--
            ``(1) In general.--Except as provided in paragraph (5), an 
        organization shall not be treated as an organization described 
        in this section--
                    ``(A) unless it has given notice to the Secretary, 
                electronically and in writing, that it is to be so 
                treated, or
                    ``(B) if the notice is given after the time 
                required under paragraph (2), the organization shall 
                not be so treated for any period before such notice is 
                given.
            ``(2) Time to give notice.--The notice required under 
        paragraph (1) shall be transmitted not later than 24 hours 
        after the date on which the organization is established.
            ``(3) Contents of notice.--The notice required under 
        paragraph (1) shall include information regarding--
                    ``(A) the name and address of the organization 
                (including any business address, if different) and its 
                electronic mailing address,
                    ``(B) the purpose of the organization,
                    ``(C) the names and addresses of its officers, 
                highly compensated employees, contact person, custodian 
                of records, and members of its Board of Directors,
                    ``(D) the name and address of, and relationship to, 
                any related entities (within the meaning of section 
                168(h)(4)), and
                    ``(E) such other information as the Secretary may 
                require to carry out the internal revenue laws.
            ``(4) Effect of failure.--In the case of an organization 
        failing to meet the requirements of paragraph (1) for any 
        period, the taxable income of such organization shall be 
        computed by taking into account any exempt function income (and 
        any deductions directly connected with the production of such 
        income).
            ``(5) Exceptions.--This subsection shall not apply to any 
        organization--
                    ``(A) to which this section applies solely by 
                reason of subsection (f)(1), or
                    ``(B) which reasonably anticipates that it will not 
                have gross receipts of $25,000 or more for any taxable 
                year.
            ``(6) Coordination with other requirements.--This 
        subsection shall not apply to any person required to report 
        under the Federal Election Campaign Act of 1971 (2 U.S.C. 431 
        et seq.) as a political committee.''.
    (b) Disclosure Requirements.--
            (1) Inspection at internal revenue service offices.--
                    (A) In general.--Section 6104(a)(1)(A) of the 
                Internal Revenue Code of 1986 (relating to public 
                inspection of applications) is amended--
                            (i) by inserting ``or a political 
                        organization is exempt from taxation under 
                        section 527 for any taxable year'' after 
                        ``taxable year'',
                            (ii) by inserting ``or notice of status 
                        filed by the organization under section 
                        527(i)'' before ``, together'',
                            (iii) by inserting ``or notice'' after 
                        ``such application'' each place it appears,
                            (iv) by inserting ``or notice'' after ``any 
                        application'',
                            (v) by inserting ``for exemption from 
                        taxation under section 501(a)'' after ``any 
                        organization'' in the last sentence, and
                            (vi) by inserting ``or 527'' after 
                        ``section 501'' in the heading.
                    (B) Conforming amendment.--The heading for section 
                6104(a) of such Code is amended by inserting ``or 
                notice of status'' before the period.
            (2) Inspection of notice on internet and in person.--
        Section 6104(a) of such Code is amended by adding at the end 
        the following new paragraph:
            ``(3) Information available on internet and in person.--
                    ``(A) In general.--The Secretary shall make 
                publicly available, on the Internet and at the offices 
                of the Internal Revenue Service--
                            ``(i) a list of all political organizations 
                        which file a notice with the Secretary under 
                        section 527(i), and
                            ``(ii) the name, address, electronic 
                        mailing address, custodian of records, and 
                        contact person for such organization.
                    ``(B) Time to make information available.--The 
                Secretary shall make available the information required 
                under subparagraph (A) not later than 5 business days 
                after the Secretary receives a notice from a political 
                organization under section 527(i).''.
            (3) Inspection by committee of congress.--Section 
        6104(a)(2) of such Code is amended by inserting ``or notice of 
        status of any political organization which is exempt from 
        taxation under section 527 for any taxable year'' after 
        ``taxable year''.
            (4) Public inspection made available by organization.--
        Section 6104(d) of such Code (relating to public inspection of 
        certain annual returns and applications for exemption) is 
        amended--
                    (A) by striking ``and Applications for Exemption'' 
                and inserting ``, Applications for Exemption, and 
                Notices of Status'' in the heading,
                    (B) by inserting ``or notice of status under 
                section 527(i)'' after ``section 501'' and by inserting 
                ``or any notice materials'' after ``materials'' in 
                paragraph (1)(A)(ii),
                    (C) by inserting or ``or such notice materials'' 
                after ``materials'' in paragraph (1)(B), and
                    (D) by adding at the end the following new 
                paragraph:
            ``(6) Notice materials.--For purposes of paragraph (1), the 
        term `notice materials' means the notice of status filed under 
        section 527(i) and any papers submitted in support of such 
        notice and any letter or other document issued by the Internal 
        Revenue Service with respect to such notice.''.
    (c) Failure To Make Public.--Section 6652(c)(1)(D) of the Internal 
Revenue Code of 1986 (relating to public inspection of applications for 
exemption) is amended--
            (1) by inserting ``or notice materials (as defined in such 
        section)'' after ``section)'', and
            (2) by inserting ``and notice of status'' after 
        ``exemption'' in the heading.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall take effect on 
        the date of the enactment of this section.
            (2) Organizations already in existence.--In the case of an 
        organization established before the date of the enactment of 
        this section, the time to file the notice under section 
        527(i)(2) of the Internal Revenue Code of 1986, as added by 
        this section, shall be 30 days after the date of the enactment 
        of this section.
            (3) Information availability.--The amendment made by 
        subsection (b)(2) shall take effect on the date that is 45 days 
        after the date of the enactment of this section.

SEC. 102. DISCLOSURES BY POLITICAL ORGANIZATIONS.

    (a) Required Disclosure of 527 Organizations.--Section 527 of the 
Internal Revenue Code of 1986 (relating to political organizations), as 
amended by section 101(a), is amended by adding at the end the 
following new section:
    ``(j) Required Disclosure of Expenditures and Contributions.--
            ``(1) Denial of exemption.--An organization shall not be 
        treated as an organization described in this section unless it 
        makes the required disclosures under paragraph (2).
            ``(2) Required disclosure.--A political organization which 
        accepts a contribution, or makes an expenditure, for an exempt 
        function during any calendar year shall file with the Secretary 
        either--
                    ``(A)(i) in the case of a calendar year in which a 
                regularly scheduled election is held--
                            ``(I) quarterly reports, beginning with the 
                        first quarter of the calendar year in which a 
                        contribution is accepted or expenditure is 
                        made, which shall be filed not later than the 
                        15th day after the last day of each calendar 
                        quarter, except that the report for the quarter 
                        ending on December 31 of such calendar year 
                        shall be filed not later than January 31 of the 
                        following calendar year,
                            ``(II) a pre-election report, which shall 
                        be filed not later than the 12th day before (or 
                        posted by registered or certified mail not 
                        later than the 15th day before) any election 
                        with respect to which the organization makes a 
                        contribution or expenditure, and which shall be 
                        complete as of the 20th day before the 
                        election, and
                            ``(III) a post-general election report, 
                        which shall be filed not later than the 30th 
                        day after the general election and which shall 
                        be complete as of the 20th day after such 
                        general election, and
                    ``(ii) in the case of any other calendar year, a 
                report covering the period beginning January 1 and 
ending June 30, which shall be filed no later than July 31 and a report 
covering the period beginning July 1 and ending December 31, which 
shall be filed no later than January 31 of the following calendar year, 
or
                    ``(B) monthly reports for the calendar year, 
                beginning with the first month of the calendar year in 
                which a contribution is accepted or expenditure is 
                made, which shall be filed not later than the 20th day 
                after the last day of the month and shall be complete 
as if the last day of the month, except that, in lieu of filing the 
reports otherwise due in November and December of any year in which a 
regularly scheduled general election is held, a pre-general election 
report shall be filed in accordance with subparagraph (A)(i)(II), a 
post-general election report shall be filed in accordance with 
subparagraph (A)(i)(III), and a year end report shall be filed not 
later than January 31 of the following calendar year.
            ``(3) Contents of report.--A report required under 
        paragraph (2) shall contain the following information:
                    ``(A) The amount of each expenditure made to a 
                person if the aggregate amount of expenditures to such 
                person during the calendar year equals or exceeds $500 
                and the name and address of the person (in the case of 
                an individual, including the occupation and name of the 
                employer of such individual).
                    ``(B) The name and address (in the case of an 
                individual, including the occupation and name of the 
                employer of such individual) of all contributors which 
                contributed an aggregate amount of $200 or more to the 
                organization during the calendar year and the amount of 
                the contribution.
        Any expenditure or contribution disclosed in a previous 
        reporting period is not required to be included in the current 
        reporting period.
            ``(4) Contracts to spend or contribute.--For purposes of 
        this subsection, a person shall be treated as having made an 
        expenditure or contribution if the person has contracted or is 
        otherwise obligated to make the expenditure or contribution.
            ``(5) Coordination with other requirements.--This 
        subsection shall not apply--
                    ``(A) to any person required to report under the 
                Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
                seq.) as a political committee,
                    ``(B) to any State or local committee of a 
                political party or political committee of a State or 
                local candidate,
                    ``(C) to any organization which reasonably 
                anticipates that it will not have gross receipts of 
                $25,000 or more for any taxable year,
                    ``(D) to any organization to which this section 
                applies solely by reason of subsection (f)(1), or
                    ``(E) with respect to any expenditure which is an 
                independent expenditure (as defined in section 301 of 
                such Act).
            ``(6) Election.--For purposes of this subsection, the term 
        `election' means--
                    ``(A) a general, special, primary, or runoff 
                election for a Federal office,
                    ``(B) a convention or caucus of a political party 
                which has authority to nominate a candidate for Federal 
                office,
                    ``(C) a primary election held for the selection of 
                delegates to a national nominating convention of a 
                political party, or
                    ``(D) a primary election held for the expression of 
                a preference for the nomination of individuals for 
                election to the office of President.''.
    (b) Public Disclosure of Reports.--
            (1) In general.--Section 6104(d) of the Internal Revenue 
        Code of 1986 (relating to public inspection of certain annual 
        returns and applications for exemption), as amended by section 
        101(b)(4), is amended--
                    (A) by inserting ``Reports,'' after ``Returns,'' in 
                the heading,
                    (B) in paragraph (1)(A), by striking ``and'' at the 
                end of clause (i), by inserting ``and'' at the end of 
                clause (ii), and by inserting after clause (ii) the 
                following new clause:
                            ``(iii) the reports filed under section 
                        527(j) (relating to required disclosure of 
                        expenditures and contributions) by such 
                        organization,'', and
                    (C) in paragraph (1)(B), by inserting ``, 
                reports,'' after ``return''.
            (2) Disclosure of contributors allowed.--Section 
        6104(d)(3)(A) of such Code (relating to nondisclosure of 
        contributors, etc.) is amended by inserting ``or a political 
        organization exempt from taxation under section 527'' after 
        ``509(a))''.
            (3) Disclosure by internal revenue service.--Section 
        6104(d) of such Code, as amended by section 101(b)(4), is 
        amended by adding at the end the following new paragraph:
            ``(7) Disclosure of reports by internal revenue service.--
        Any report filed by an organization under section 527(j) 
        (relating to required disclosure of expenditures and 
        contributions) shall be made available to the public at such 
        times and in such places as the Secretary may prescribe.''.
    (c) Failure To Make Public.--Section 6652(c)(1)(C) of the Internal 
Revenue Code of 1986 (relating to public inspection of annual returns) 
is amended--
            (1) by inserting ``or report required under section 
        527(j)'' after ``filing)'',
            (2) by inserting ``or report'' after ``1 return'', and
            (3) by inserting ``and reports'' after ``returns'' in the 
        heading.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply to expenditures made and contributions received after the date of 
enactment of this Act, except that such amendment shall not apply to 
expenditures made, or contributions received, after such date pursuant 
to a contract entered into on or before such date.

SEC. 103. RETURN REQUIREMENTS RELATING TO SECTION 527 ORGANIZATIONS.

    (a) Return Requirements.--
            (1) Organizations required to file.--Section 6012(a)(6) of 
        the Internal Revenue Code of 1986 (relating to political 
organizations required to make returns of income) is amended by 
inserting ``or which has gross receipts of $25,000 or more for the 
taxable year (other than an organization to which section 527 applies 
solely by reason of subsection (f)(1) of such section)'' after 
``taxable year''.
            (2) Information required to be included on return.--Section 
        6033 of such Code (relating to returns by exempt organizations) 
        is amended by redesignating subsection (g) as subsection (h) 
        and inserting after subsection (f) the following new 
        subsection:
    ``(g) Returns Required by Political Organizations.--In the case of 
a political organization required to file a return under section 
6012(a)(6)--
            ``(1) such organization shall file a return--
                    ``(A) containing the information required, and 
                complying with the other requirements, under subsection 
                (a)(1) for organizations exempt from taxation under 
                section 501(a), and
                    ``(B) containing such other information as the 
                Secretary deems necessary to carry out the provisions 
                of this subsection, and
            ``(2) subsection (a)(2)(B) (relating to discretionary 
        exceptions) shall apply with respect to such return.''.
    (b) Public Disclosure of Returns.--
            (1) Returns made available by secretary.--
                    (A) In general.--Section 6104(b) of the Internal 
                Revenue Code of 1986 (relating to inspection of annual 
                information returns) is amended by inserting 
                ``6012(a)(6),'' before ``6033''.
                    (B) Contributor information.--Section 6104(b) of 
                such Code is amended by inserting ``or a political 
                organization exempt from taxation under section 527'' 
                after ``509(a)''.
            (2) Returns made available by organizations.--
                    (A) In general.--Paragraph (1)(A)(i) of section 
                6104(d) of such Code (relating to public inspection of 
                certain annual returns, reports, applications for 
                exemption, and notices of status) is amended by 
                inserting ``or section 6012(a)(6) (relating to returns 
                by political organizations)'' after ``organizations)''.
                    (B) Conforming amendments.--
                            (i) Section 6104(d)(1) of such Code is 
                        amended in the matter preceding subparagraph 
                        (A) by inserting ``or an organization exempt 
                        from taxation under section 527(a)'' after 
                        ``501(a)''.
                            (ii) Section 6104(d)(2) of such Code is 
                        amended by inserting ``or section 6012(a)(6)'' 
                        after ``section 6033''.
    (c) Failure To File Return.--Section 6652(c)(1) of the Internal 
Revenue Code of 1986 (relating to annual returns under section 6033) is 
amended--
            (1) by inserting ``or section 6012(c)(6) (relating to 
        returns by political organizations)'' after ``organizations)'' 
        in subparagraph (A)(i),
            (2) by inserting ``or section 6012(c)(6)'' after ``section 
        6033'' in subparagraph (A)(ii),
            (3) by inserting ``or section 6012(c)(6)'' after ``section 
        6033'' in the third sentence of subparagraph (A), and
            (4) by inserting ``or 6012(c)(6)'' after ``section 6033'' 
        in the heading.
    (d) Effective Date.--The amendments made by this section shall 
apply to returns for taxable years beginning after June 30, 2000.

   TITLE II--TAX-EXEMPT BUSINESS AND LABOR ORGANIZATIONS ENGAGING IN 
                           POLITICAL ACTIVITY

SEC. 201. NOTIFICATION AND DISCLOSURES OF CERTAIN SECTION 501 
              ORGANIZATIONS.

    (a) Notification; Annual Report.--Part I of subchapter F of chapter 
1 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 506. ADDITIONAL DISCLOSURE REQUIREMENTS FOR CERTAIN 
              ORGANIZATIONS DESCRIBED IN PARAGRAPH (5) OR (6) OF 
              SECTION 501(C).

    ``(a) Required Disclosures.--
            ``(1) In general.--An organization described in paragraph 
        (2) shall not be treated as an organization described in 
        section 501(c) for any taxable year if such organization does 
        not meet the requirements under subsections (b) and (c) for any 
        portion of such taxable year.
            ``(2) Organization.--An organization is described in this 
        paragraph if--
                    ``(A) such organization is--
                            ``(i) a labor organization described in 
                        section 501(c)(5), or
                            ``(ii) a business league, chamber of 
                        commerce, or board of trade described in 
                        section 501(c)(6), and
                    ``(B) such organization makes, or is reasonably 
                anticipated to make, directly or indirectly, an 
                aggregate amount of expenditures in excess of $25,000 
                for any calendar year for communications to the general 
                public which--
                            ``(i) mention--
                                    ``(I) an election for Federal 
                                office,
                                    ``(II) a candidate for Federal 
                                office,
                                    ``(III) an individual holding 
                                Federal office, or
                                    ``(IV) a political party, or
                            ``(ii) contain the likeness of such 
                        candidate or individual.
            ``(3) Affiliated organizations.--
                    ``(A) In general.--For purposes this section, if an 
                organization described in paragraph (2)(A) is a member 
                of an affiliated group, the contributions and 
                expenditures of each member of such group shall be 
                treated as contributions and expenditures of the 
                organization. The Secretary shall prescribe such 
                regulations as necessary to ensure that such 
                contributions and expenditures are not taken into 
                account more than once with respect to such 
                organization.
                    ``(B) Special rule.--Notwithstanding subparagraph 
                (A), contributions and expenditures of a member of an 
                affiliated group which is higher in the chain of 
                includible members of the group than the organization 
                described in paragraph (2)(A) shall not be treated as 
                contributions or expenditures of such organization. 
                This subparagraph shall not apply to contributions and 
                expenditures between members of the affiliated group.
                    ``(C) Affiliated group.--For purposes of 
                subparagraph (A), persons shall be treated as members 
                of the same affiliated group if--
                            ``(i) such persons are treated as one 
                        employer under subsection (a) or (b) of section 
                        52,
                            ``(ii) such persons are related entities 
                        under section 168(h)(4), or
                            ``(iii) such persons are related in such 
                        other manner as may be prescribed in 
                        regulations as the Secretary determines 
                        necessary to prevent avoidance of the 
                        requirements of this section.
                If an organization establishes or maintains a separate 
                segregated fund which is not a political committee 
                under section 301(4) of the Federal Election Campaign 
                Act of 1971 (2 U.S.C. 431(4)), such organization and 
                fund shall be treated as a member of the same 
                affiliated group.
    ``(b) Required Notice.--
            ``(1) In general.--An organization described in subsection 
        (a)(2) shall file a notice with the Secretary, in such manner 
        as the Secretary requires, that such organization is so 
        described.
            ``(2) Time to give notice.--The notice required under 
        paragraph (1) shall be transmitted not later than 24 hours 
        after the date such organization first makes, or reasonably 
        expects to make, an aggregate amount of expenditures described 
        in subsection (a)(2)(B).
            ``(3) Contents of notice.--The notice required under 
        paragraph (1) shall include information regarding--
                    ``(A) the name and address of the organization 
                (including any business address, if different) and its 
                electronic mailing address,
                    ``(B) the purpose of the organization,
                    ``(C) the names and addresses of its officers, 
                highly compensated employees, contact person, custodian 
                of records, and members of its Board of Directors,
                    ``(D) the name and address of, and relationship to, 
                any related entities (within the meaning of section 
                168(h)(4)), and
                    ``(E) such other information as the Secretary may 
                require to carry out the internal revenue laws.
    ``(c) Required Reports.--An organization described in subsection 
(a)(2) shall file with the Secretary--
            ``(1)(A) in the case of a calendar year in which a 
        regularly scheduled election is held--
                    ``(i) quarterly reports, beginning with the first 
                quarter of the calendar year in which an amount of 
                expenditures described in subsection (a)(2)(B) is made, 
                which shall be filed not later than the 15th day after 
                the last day of each calendar quarter, except that the 
                report for the quarter ending on December 31 of such 
                calendar year shall be filed not later than January 31 
                of the following calendar year,
                    ``(ii) a pre-election report, which shall be filed 
                not later than the 12th day before (or posted by 
                registered or certified mail not later than the 15th 
                day before) any election with respect to which the 
                organization makes an expenditure, and which shall be 
                complete as of the 20th day before the election, and
                    ``(iii) a post-general election report, which shall 
                be filed not later than the 30th day after the general 
                election and which shall be complete as of the 20th day 
                after such general election, and
            ``(B) in the case of any other calendar year, a report 
        covering the period beginning January 1 and ending June 30, 
which shall be filed no later than July 31 and a report covering the 
period beginning July 1 and ending December 31, which shall be filed no 
later than January 31 of the following calendar year, or
            ``(2) monthly reports for the calendar year, beginning with 
        the first month of the calendar year in which an amount of 
        expenditures described in subsection (a)(2)(B) is made, which 
        shall be filed not later than the 20th day after the last day 
of the month and shall be complete as if the last day of the month, 
except that, in lieu of filing the reports otherwise due in November 
and December of any year in which a regularly scheduled general 
election is held, a pre-general election report shall be filed in 
accordance with paragraph (1)(A)(ii), a post-general election report 
shall be filed in accordance with paragraph (1)(A)(iii), and a year end 
report shall be filed not later than January 31 of the following 
calendar year.
    ``(d) Contents of Report.--
            ``(1) In general.--The report required under subsection (c) 
        shall contain itemized information and the amount of any item 
        contained in the report, including--
                    ``(A) any direct or indirect expenditure in an 
                aggregate amount of $500 or more for the calendar year 
                made in connection with a communication to any person 
                which--
                            ``(i) mentions--
                                    ``(I) a Federal election,
                                    ``(II) a candidate for Federal 
                                office,
                                    ``(III) an individual holding 
                                Federal office, or
                                    ``(IV) a political party, or
                            ``(ii) contains the likeness of such 
                        candidate or individual,
                    ``(B) the name and address of any person (in the 
                case of an individual, including the occupation and 
                name of the employer of such individual) to whom 
                expenditures described in subparagraph (A) are made in 
                an aggregate amount of $500 or more during the calendar 
                year,
                    ``(C) the name, occupation, annual salary, and the 
                name of the employer of an individual who is employed 
                by an organization described in subsection (a)(2) or 
                any member of the affiliated group of organizations 
                with respect to such organization (within the meaning 
                of subsection (a)(3)), if such individual spends more 
                than 20 percent of their paid working hours during any 
                month in connection with a communication described in 
                subparagraph (A),
                    ``(D) the name and address of any person (in the 
                case of an individual, including the occupation and 
                name of the employer of such individual) which makes an 
                aggregate amount of contributions to such organization 
                or any such affiliated organization in an amount of 
                $200 or more for the calendar year, and
                    ``(E) the aggregate amount of membership dues or 
                fees received by such organization for the reporting 
                period.
        Any expenditure, contribution, or other amount disclosed in a 
        previous reporting period is not required to be included in the 
        current reporting period.
            ``(2) Itemization.--For purposes of paragraph (1), 
        information required to be reported shall be reported in such 
        detail and manner to allow a determination of the nature and 
        purpose of such item, including--
                    ``(A) the identity of the candidate, individual 
                holding Federal office, or political party mentioned in 
                a communication or the identity of such candidate or 
                individual the likeness of whom appears in the 
                communication,
                    ``(B) the purposes of such communication, and
                    ``(C) which organization or such related 
                organization made such expenditure.
    ``(f) Definitions.--For purposes of this section--
            ``(1) Contribution.--The term `contribution' shall have the 
        meaning given such term in section 271(b)(3), except such term 
        shall not include any amount received as a membership due or 
        fee.
            ``(2) Expenditure.--The term `expenditure' shall have the 
        same meaning given such term in section 271(b)(4).
    ``(g) Contract to Use Funds.--For purposes of this section, an 
organization shall be treated as having made or received any 
contribution or expenditure if the organization has otherwise obligated 
to make or receive such contribution or expenditure.
    ``(h) Coordination With Other Requirements.--This section shall 
apply to any person in addition to any report required under the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.).''.
    (b) Availability of Notice by IRS.--Section 6104(a) of the Internal 
Revenue Code of 1986, as amended by section 101(b)(2), is amended by 
adding at the end the following new paragraph:
            ``(4) Notice information available in person.--
                    ``(A) In general.--The Secretary shall make 
                publicly available at the offices of the Internal 
                Revenue Service--
                            ``(i) a list of all organizations which 
                        file a notice with the Secretary under section 
                        506(b), and
                            ``(ii) the name, address, electronic 
                        mailing list, custodian of records, and contact 
                        person for such organization.
                    ``(B) Time to make information available.--The 
                Secretary shall make available the information required 
                under subparagraph (A) not later than 10 business days 
                after the Secretary receives notice from an 
                organization under section 506(b).''.
    (c) Availability of Reports.--
            (1) By the organization.--Section 6104(d)(1)(A)(iii) of the 
        Internal Revenue Code of 1986, as added by section 102(b)(1), 
        is amended by inserting ``or section 506(c)'' after 
        ``contributions)''.
            (2) Disclosure of contributors allowed.--Section 
        6104(d)(3)(A) of such Code, as amended by section 102(b)(2), is 
        amended by inserting ``or an organization described in section 
        506(a)(2)'' after ``527''.
            (3) By the irs.--Section 6104(d) of such Code, as amended 
        by section 102(b)(3), is amended by adding at the end the 
        following new paragraph:
            ``(8) Certain reports available in person and on 
        internet.--
                    ``(A) In general.--The Secretary shall make 
                publicly available, on the Internet and at the offices 
                of the Internal Revenue Service, any report filed by an 
                organization under section 506(c).
                    ``(B) Time to make information available.--The 
                Secretary shall make available the information required 
                under subparagraph (A) not later than 10 business days 
                after the Secretary receives such information from an 
                organization under section 506(c).''.
    (d) Regulations.--The Secretary of the Treasury shall promulgate 
such regulations as the Secretary determines necessary to carry out the 
provisions of this section.
    (e) Conforming Amendment.--The table of sections for part I of 
subchapter F of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

                              ``Sec. 506. Additional disclosure 
                                        requirements for certain 
                                        organizations described in 
                                        paragraph (5) or (6) of section 
                                        501(c).''.
    (f) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall take effect on 
        the date which is 60 days after the date of the enactment of 
        this section.
            (2) Organizations already in existence.--In the case of an 
        organization established before the date of enactment of this 
        section, the time to file the notice required under section 
        506(b) of the Internal Revenue Code of 1986, as added by 
        subsection (a), shall be the later of--
                    (A) 30 days after the date of the enactment of this 
                section, or
                    (B) the date required under such section.
            (3) Subsection (a).--The amendment made by subsection (a) 
        shall apply to amounts disbursed or received after the date of 
        enactment of this section, except that such amendment shall not 
        apply to amounts disbursed or received after such date pursuant 
        to a contract entered into on or before such date.

SEC. 202. RANDOM AUDITS.

    The Secretary of the Treasury may conduct random audits and 
investigations of any organization to ensure compliance with this Act 
and the amendments made by this Act.

SEC. 203. NONSEVERABILITY.

    If any provision of or amendment made by this title, or the 
application of any provision or amendment made by this title to any 
person, is held to be invalid, all provisions of and any amendments 
made by this title shall be invalid.
                                                       Calendar No. 606

106th CONGRESS

  2d Session

                                S. 2742

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to increase disclosure for 
 certain political organizations exempt from tax under section 527 and 
                section 501(c), and for other purposes.

_______________________________________________________________________

                             June 16, 2000

            Read the second time and placed on the calendar
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