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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1172 Introduced in House (IH)]

<DOC>

117th CONGRESS
  1st Session
                                H. R. 1172

To amend the Federal Election Campaign Act to clarify the treatment of 
coordinated expenditures as contributions made to candidates under such 
                      Act, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 2021

 Mr. Price of North Carolina introduced the following bill; which was 
           referred to the Committee on House Administration

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Election Campaign Act to clarify the treatment of 
coordinated expenditures as contributions made to candidates under such 
                      Act, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Super PAC-Candidate 
Coordination Act''.

SEC. 2. CLARIFICATION OF TREATMENT OF COORDINATED EXPENDITURES AS 
              CONTRIBUTIONS TO CANDIDATES.

    (a) Treatment as Contribution to Candidate.--Section 301(8)(A) of 
the Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8)(A)) is 
amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                    ``(iii) any payment made by any person (other than 
                a candidate, an authorized committee of a candidate, or 
                a political committee of a political party) for a 
                coordinated expenditure (as such term is defined in 
                section 325) which is not otherwise treated as a 
                contribution under clause (i) or clause (ii).''.
    (b) Definitions.--Title III of such Act (52 U.S.C. 30101 et seq.) 
is amended by adding at the end the following new section:

``SEC. 325. PAYMENTS FOR COORDINATED EXPENDITURES.

    ``(a) Coordinated Expenditures.--
            ``(1) In general.--For purposes of section 301(8)(A)(iii), 
        the term `coordinated expenditure' means--
                    ``(A) any expenditure, or any payment for a covered 
                communication described in subsection (d), which is 
                made in cooperation, consultation, or concert with, or 
                at the request or suggestion of, a candidate, an 
                authorized committee of a candidate, a political 
                committee of a political party, or agents of the 
                candidate or committee, as defined in subsection (b); 
                or
                    ``(B) any payment for any communication which 
                republishes, disseminates, or distributes, in whole or 
                in part, any video or broadcast or any written, 
                graphic, or other form of campaign material prepared by 
                the candidate or committee or by agents of the 
                candidate or committee (including any excerpt or use of 
                any video from any such broadcast or written, graphic, 
                or other form of campaign material).
            ``(2) Exception for payments for certain communications.--A 
        payment for a communication (including a covered communication 
        described in subsection (d)) shall not be treated as a 
        coordinated expenditure under this subsection if--
                    ``(A) the communication appears in a news story, 
                commentary, or editorial distributed through the 
                facilities of any broadcasting station, newspaper, 
                magazine, or other periodical publication, unless such 
                facilities are owned or controlled by any political 
                party, political committee, or candidate; or
                    ``(B) the communication constitutes a candidate 
                debate or forum conducted pursuant to regulations 
                adopted by the Commission pursuant to 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.
    ``(b) Coordination Described.--
            ``(1) In general.--For purposes of this section, a payment 
        is made `in cooperation, consultation, or concert with, or at 
        the request or suggestion of,' a candidate, an authorized 
        committee of a candidate, a political committee of a political 
        party, or agents of the candidate or committee, if the payment, 
        or any communication for which the payment is made, is not made 
        entirely independently of the candidate, committee, or agents. 
        For purposes of the previous sentence, a payment or 
        communication not made entirely independently of the candidate 
        or committee includes any payment or communication made 
        pursuant to any general or particular understanding with, or 
        pursuant to any communication with, the candidate, committee, 
        or agents about the payment or communication.
            ``(2) No finding of coordination based solely on sharing of 
        information regarding legislative or policy position.--For 
        purposes of this section, a payment shall not be considered to 
        be made by a person in cooperation, consultation, or concert 
        with, or at the request or suggestion of, a candidate or 
        committee, solely on the grounds that the person or the 
        person's agent engaged in discussions with the candidate or 
        committee, or with any agent of the candidate or committee, 
        regarding that person's position on a legislative or policy 
        matter (including urging the candidate or committee to adopt 
        that person's position), so long as there is no communication 
        between the person and the candidate or committee, or any agent 
        of the candidate or committee, regarding the candidate's or 
        committee's campaign advertising, message, strategy, policy, 
        polling, allocation of resources, fundraising, or other 
        campaign activities.
            ``(3) No effect on party coordination standard.--Nothing in 
        this section shall be construed to affect the determination of 
        coordination between a candidate and a political committee of a 
        political party for purposes of section 315(d).
            ``(4) No safe harbor for use of firewall.--A person shall 
        be determined to have made a payment in cooperation, 
        consultation, or concert with, or at the request or suggestion 
        of, a candidate or committee, in accordance with this section 
        without regard to whether or not the person established and 
        used a firewall or similar procedures to restrict the sharing 
        of information between individuals who are employed by or who 
        are serving as agents for the person making the payment.
    ``(c) Payments by Coordinated Spenders for Covered 
Communications.--
            ``(1) Payments made in cooperation, consultation, or 
        concert with candidates.--For purposes of subsection (a)(1)(A), 
        if the person who makes a payment for a covered communication, 
        as defined in subsection (d), is a coordinated spender under 
        paragraph (2) with respect to the candidate as described in 
        subsection (d)(1), the payment for the covered communication is 
        made in cooperation, consultation, or concert with the 
        candidate.
            ``(2) Coordinated spender defined.--For purposes of this 
        subsection, the term `coordinated spender' means, with respect 
        to a candidate or an authorized committee of a candidate, a 
        person (other than a political committee of a political party) 
        for which any of the following applies:
                    ``(A) During the 4-year period ending on the date 
                on which the person makes the payment, the person was 
                directly or indirectly formed or established by or at 
                the request or suggestion of, or with the encouragement 
                of, the candidate (including an individual who later 
                becomes a candidate) or committee or agents of the 
                candidate or committee, including with the approval of 
                the candidate or committee or agents of the candidate 
                or committee.
                    ``(B) The candidate or committee or any agent of 
                the candidate or committee solicits funds, appears at a 
                fundraising event, or engages in other fundraising 
                activity on the person's behalf during the election 
                cycle involved, including by providing the person with 
                names of potential donors or other lists to be used by 
                the person in engaging in fundraising activity, 
                regardless of whether the person pays fair market value 
                for the names or lists provided. For purposes of this 
                subparagraph, the term `election cycle' means, with 
                respect to an election for Federal office, the period 
                beginning on the day after the date of the most recent 
                general election for that office (or, if the general 
                election resulted in a runoff election, the date of the 
                runoff election) and ending on the date of the next 
                general election for that office (or, if the general 
                election resulted in a runoff election, the date of the 
                runoff election).
                    ``(C) The person is established, directed, or 
                managed by the candidate or committee or by any person 
                who, during the 4-year period ending on the date on 
                which the person makes the payment, has been employed 
                or retained as a political, campaign media, or 
                fundraising adviser or consultant for the candidate or 
                committee or for any other entity directly or 
                indirectly controlled by the candidate or committee, or 
                has held a formal position with the candidate or 
                committee (including a position as an employee of the 
                office of the candidate at any time the candidate held 
                any Federal, State, or local public office during the 
                4-year period).
                    ``(D) The person has retained the professional 
                services of any person who, during the 2-year period 
                ending on the date on which the person makes the 
                payment, has provided or is providing professional 
                services relating to the campaign to the candidate or 
                committee, without regard to whether the person 
                providing the professional services used a firewall. 
                For purposes of this subparagraph, the term 
                `professional services' includes any services in 
                support of the candidate's or committee's campaign 
                activities, including advertising, message, strategy, 
                policy, polling, allocation of resources, fundraising, 
                and campaign operations, but does not include 
                accounting or legal services.
                    ``(E) The person is established, directed, or 
                managed by a member of the immediate family of the 
                candidate, or the person or any officer or agent of the 
                person has had more than incidental discussions about 
                the candidate's campaign with a member of the immediate 
                family of the candidate. For purposes of this 
                subparagraph, the term `immediate family' has the 
                meaning given such term in section 9004(e) of the 
                Internal Revenue Code of 1986.
    ``(d) Covered Communication Defined.--
            ``(1) In general.--For purposes of this section, the term 
        `covered communication' means, with respect to a candidate or 
        an authorized committee of a candidate, a public communication 
        (as defined in section 301(22)) which--
                    ``(A) expressly advocates the election of the 
                candidate or the defeat of an opponent of the candidate 
                (or contains the functional equivalent of express 
                advocacy);
                    ``(B) promotes or supports the election of the 
                candidate, or attacks or opposes the election of an 
                opponent of the candidate (regardless of whether the 
                communication expressly advocates the election or 
                defeat of a candidate or contains the functional 
                equivalent of express advocacy); or
                    ``(C) refers to the candidate or an opponent of the 
                candidate but is not described in subparagraph (A) or 
                subparagraph (B), but only if the communication is 
                disseminated during the applicable election period.
            ``(2) Applicable election period.--In paragraph (1)(C), the 
        `applicable election period' with respect to a communication 
        means--
                    ``(A) in the case of a communication which refers 
                to a candidate in a general, special, or runoff 
                election, the 120-day period which ends on the date of 
                the election; or
                    ``(B) in the case of a communication which refers 
                to a candidate in a primary or preference election, or 
                convention or caucus of a political party that has 
                authority to nominate a candidate, the 60-day period 
                which ends on the date of the election or convention or 
                caucus.
            ``(3) Special rules for communications involving 
        congressional candidates.--For purposes of this subsection, a 
        public communication shall not be considered to be a covered 
        communication with respect to a candidate for election for an 
        office other than the office of President or Vice President 
        unless it is publicly disseminated or distributed in the 
        jurisdiction of the office the candidate is seeking.
    ``(e) Penalty.--
            ``(1) Determination of amount.--Any person who knowingly 
        and willfully commits a violation of this Act by making a 
        contribution which consists of a payment for a coordinated 
        expenditure shall be fined an amount equal to the greater of--
                    ``(A) in the case of a person who makes a 
                contribution which consists of a payment for a 
                coordinated expenditure in an amount exceeding the 
                applicable contribution limit under this Act, 300 
                percent of the amount by which the amount of the 
                payment made by the person exceeds such applicable 
                contribution limit; or
                    ``(B) in the case of a person who is prohibited 
                under this Act from making a contribution in any 
                amount, 300 percent of the amount of the payment made 
                by the person for the coordinated expenditure.
            ``(2) Joint and several liability.--Any director, manager, 
        or officer of a person who is subject to a penalty under 
        paragraph (1) shall be jointly and severally liable for any 
        amount of such penalty that is not paid by the person prior to 
        the expiration of the 1-year period which begins on the date 
        the Commission imposes the penalty or the 1-year period which 
        begins on the date of the final judgment following any judicial 
        review of the Commission's action, whichever is later.''.
    (c) Effective Date.--
            (1) Repeal of existing regulations on coordination.--
        Effective upon the expiration of the 90-day period which begins 
        on the date of the enactment of this Act--
                    (A) the regulations on coordinated communications 
                adopted by the Federal Election Commission which are in 
                effect on the date of the enactment of this Act (as set 
                forth in 11 CFR Part 109, Subpart C, under the heading 
                ``Coordination'') are repealed; and
                    (B) the Federal Election Commission shall 
                promulgate new regulations on coordinated 
                communications which reflect the amendments made by 
                this Act.
            (2) Effective date.--The amendments made by this section 
        shall apply with respect to payments made on or after the 
        expiration of the 120-day period which begins on the date of 
        the enactment of this Act, without regard to whether or not the 
        Federal Election Commission has promulgated regulations in 
        accordance with paragraph (1)(B) as of the expiration of such 
        period.

SEC. 3. CLARIFICATION OF BAN ON FUNDRAISING FOR SUPER PACS BY FEDERAL 
              CANDIDATES AND OFFICEHOLDERS.

    (a) In General.--Section 323(e)(1) of the Federal Election Campaign 
Act of 1971 (52 U.S.C. 30125(e)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) solicit, receive, direct, or transfer funds 
                to or on behalf of any political committee which 
                accepts donations or contributions that do not comply 
                with the limitations, prohibitions, and reporting 
                requirements of this Act (or to or on behalf of any 
                account of a political committee which is established 
                for the purpose of accepting such donations or 
                contributions), or to or on behalf of any political 
                organization under section 527 of the Internal Revenue 
                Code of 1986 which accepts such donations or 
                contributions (other than a committee of a State or 
                local political party or a candidate for election for 
                State or local office).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to elections occurring after January 1, 2022.
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