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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4617 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 196
116th CONGRESS
  1st Session
                                H. R. 4617

                      [Report No. 116-246, Part I]

   To amend the Federal Election Campaign Act of 1971 to clarify the 
  obligation to report acts of foreign election influence and require 
implementation of compliance and reporting systems by Federal campaigns 
        to detect and report such acts, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 8, 2019

   Ms. Lofgren (for herself, Mr. Sarbanes, Mr. Raskin, Mrs. Davis of 
 California, Mr. Butterfield, Ms. Fudge, Mr. Aguilar, Mr. Nadler, Mrs. 
   Murphy of Florida, Mr. McEachin, Mr. Malinowski, and Mr. Kilmer) 
 introduced the following bill; which was referred to the Committee on 
     House Administration, and in addition to the Committee on the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                            October 21, 2019

   Additional sponsors: Ms. Bonamici, Ms. Haaland, Ms. Escobar, Ms. 
Norton, Mr. Phillips, Ms. Wild, Ms. Lee of California, Mrs. Bustos, Mr. 
Suozzi, Mr. Veasey, Mr. Morelle, Mr. Cardenas, Mr. Cisneros, Mr. Welch, 
Mr. Langevin, Mr. Evans, Mr. Ryan, Mr. Blumenauer, Mr. Pallone, Mr. Cox 
 of California, Ms. Tlaib, Mr. Rush, Ms. Jackson Lee, Mrs. Napolitano, 
  Mr. Sean Patrick Maloney of New York, Mr. Lynch, Mr. Carbajal, Mr. 
Deutch, Mr. Cooper, Mr. Vela, Mr. Krishnamoorthi, Mr. Michael F. Doyle 
 of Pennsylvania, Mr. Casten of Illinois, Mr. Espaillat, Ms. Dean, Ms. 
  Houlahan, Mrs. Kirkpatrick, Ms. Craig, Mr. Gallego, Mr. Sablan, Mr. 
Cicilline, Mr. Crist, Mr. Neal, Mrs. McBath, Ms. Slotkin, Ms. Wasserman 
Schultz, Mr. Lujan, Mr. Panetta, Mr. Norcross, Mr. Garcia of Illinois, 
Mr. Higgins of New York, Mr. Danny K. Davis of Illinois, Mr. Meeks, Mr. 
    McGovern, Mr. Hastings, Mr. Kildee, Mr. Grijalva, Mr. Case, Ms. 
   Shalala, Mr. Rouda, Mr. Lowenthal, Mr. Kennedy, Mr. Courtney, Mr. 
 Pappas, Mr. Kind, Mr. Thompson of California, Ms. Roybal-Allard, Mr. 
    DeFazio, Ms. Scanlon, Ms. Meng, Ms. Velazquez, Mr. Ted Lieu of 
 California, Ms. Kendra S. Horn of Oklahoma, Ms. Garcia of Texas, Mr. 
Gonzalez of Texas, Mr. Quigley, Mrs. Lawrence, Mr. Costa, Miss Rice of 
New York, Mr. Price of North Carolina, Mrs. Torres of California, Mrs. 
Watson Coleman, Mr. Brown of Maryland, Ms. Spanberger, Ms. Schrier, Ms. 
 Castor of Florida, Mr. Larsen of Washington, Mr. Johnson of Georgia, 
Mr. Perlmutter, Mr. David Scott of Georgia, Mr. Correa, Mr. Swalwell of 
California, Ms. Kuster of New Hampshire, Mr. Golden, Ms. McCollum, Mr. 
  Van Drew, Ms. Pingree, Mrs. Demings, Ms. Wexton, Mrs. Fletcher, Ms. 
     Stevens, Mr. Lipinski, Mr. Peters, Mr. Soto, Mr. Yarmuth, Mr. 
   Schneider, Mr. Allred, Ms. Schakowsky, Mr. Trone, Mr. Gomez, Mrs. 
    Lowey, Mr. Moulton, Mr. O'Halleran, Mr. Foster, Ms. Brownley of 
   California, Ms. Underwood, Mrs. Axne, Ms. Clarke of New York, Ms. 
     Speier, Mr. Cohen, Mr. Kim, Mr. Bera, Mr. Brendan F. Boyle of 
  Pennsylvania, Mrs. Lee of Nevada, Mr. Smith of Washington, and Ms. 
                         Clark of Massachusetts

                            October 21, 2019

 Reported from the Committee on House Administration with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            October 21, 2019

 Committee on the Judiciary discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on October 
                                8, 2019]

_______________________________________________________________________

                                 A BILL

 
   To amend the Federal Election Campaign Act of 1971 to clarify the 
  obligation to report acts of foreign election influence and require 
implementation of compliance and reporting systems by Federal campaigns 
        to detect and report such acts, 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 ``Stopping Harmful 
Interference in Elections for a Lasting Democracy Act'' or the ``SHIELD 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

                TITLE I--ENHANCED REPORTING REQUIREMENTS

 Subtitle A--Establishing Duty to Report Foreign Election Interference

Sec. 101. Federal campaign reporting of foreign contacts.
Sec. 102. Federal campaign foreign contact reporting compliance system.
Sec. 103. Criminal penalties.
Sec. 104. Rule of construction.

  Subtitle B--Strengthening Oversight of Online Political Advertising

Sec. 111. Short title.
Sec. 112. Purpose.
Sec. 113. Expansion of definition of public communication.
Sec. 114. Expansion of definition of electioneering communication.
Sec. 115. Application of disclaimer statements to online 
                            communications.
Sec. 116. Political record requirements for online platforms.
Sec. 117. Preventing contributions, expenditures, independent 
                            expenditures, and disbursements for 
                            electioneering communications by foreign 
                            nationals in the form of online 
                            advertising.

 TITLE II--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN 
                               ELECTIONS

Sec. 201. Clarification of prohibition on participation by foreign 
                            nationals in election-related activities.
Sec. 202. Clarification of application of foreign money ban to certain 
                            disbursements and activities.
Sec. 203. Audit and report on illicit foreign money in Federal 
                            elections.
Sec. 204. Prohibition on contributions and donations by foreign 
                            nationals in connections with ballot 
                            initiatives and referenda.
Sec. 205. Expansion of limitations on foreign nationals participating 
                            in political advertising.

         TITLE III--DETERRING FOREIGN INTERFERENCE IN ELECTIONS

   Subtitle A--Deterrence Under Federal Election Campaign Act of 1971

Sec. 301. Restrictions on exchange of campaign information between 
                            candidates and foreign powers.
Sec. 302. Clarification of standard for determining existence of 
                            coordination between campaigns and outside 
                            interests.

                         Subtitle B--[Reserved]

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Effective dates of provisions.
Sec. 402. Severability.

                TITLE I--ENHANCED REPORTING REQUIREMENTS

 Subtitle A--Establishing Duty to Report Foreign Election Interference

SEC. 101. FEDERAL CAMPAIGN REPORTING OF FOREIGN CONTACTS.

    (a) Initial Notice.--
            (1) In general.--Section 304 of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30104) is amended by adding at 
        the end the following new subsection:
    ``(j) Disclosure of Reportable Foreign Contacts.--
            ``(1) Committee obligation to notify.--Not later than 1 
        week after a reportable foreign contact, each political 
        committee shall notify the Federal Bureau of Investigation and 
        the Commission of the reportable foreign contact and provide a 
        summary of the circumstances with respect to such reportable 
        foreign contact.
            ``(2) Individual obligation to notify.--Not later than 3 
        days after a reportable foreign contact--
                    ``(A) each candidate shall notify the treasurer or 
                other designated official of the principal campaign 
                committee of such candidate of the reportable foreign 
                contact and provide a summary of the circumstances with 
                respect to such reportable foreign contact; and
                    ``(B) each official, employee, or agent of a 
                political committee shall notify the treasurer or other 
                designated official of the committee of the reportable 
                foreign contact and provide a summary of the 
                circumstances with respect to such reportable foreign 
                contact.
            ``(3) Reportable foreign contact.--In this subsection:
                    ``(A) In general.--The term `reportable foreign 
                contact' means any direct or indirect contact or 
                communication that--
                            ``(i) is between--
                                    ``(I) a candidate, a political 
                                committee, or any official, employee, 
                                or agent of such committee; and
                                    ``(II) an individual that the 
                                person described in subclause (I) 
                                knows, has reason to know, or 
                                reasonably believes is a covered 
                                foreign national; and
                            ``(ii) the person described in clause 
                        (i)(I) knows, has reason to know, or reasonably 
                        believes involves--
                                    ``(I) an offer or other proposal 
                                for a contribution, donation, 
                                expenditure, disbursement, or 
                                solicitation described in section 319; 
                                or
                                    ``(II) coordination or 
                                collaboration with, an offer or 
                                provision of information or services to 
                                or from, or persistent and repeated 
                                contact with, a covered foreign 
                                national in connection with an 
                                election.
                    ``(B) Exception.--The term `reportable foreign 
                contact' shall not include any contact or communication 
                with a covered foreign national by an elected official 
                or an employee of an elected official solely in an 
                official capacity as such an official or employee. For 
                purposes of the previous sentence, a contact or 
                communication by an elected official or an employee of 
                an elected official shall not be considered to be made 
                solely in an official capacity if the contact or 
                communication involves a contribution, donation, 
                expenditure, disbursement, or solicitation described in 
                section 319.
                    ``(C) Covered foreign national defined.--
                            ``(i) In general.--In this paragraph, the 
                        term `covered foreign national' means--
                                    ``(I) a foreign principal (as 
                                defined in section 1(b) of the Foreign 
                                Agents Registration Act of 1938 (22 
                                U.S.C. 611(b)) that is a government of 
                                a foreign country or a foreign 
                                political party;
                                    ``(II) any person who acts as an 
                                agent, representative, employee, or 
                                servant, or any person who acts in any 
                                other capacity at the order, request, 
                                or under the direction or control, of a 
                                foreign principal described in 
                                subclause (I) or of a person any of 
                                whose activities are directly or 
                                indirectly supervised, directed, 
                                controlled, financed, or subsidized in 
                                whole or in major part by a foreign 
                                principal described in subclause (I); 
                                or
                                    ``(III) any person included in the 
                                list of specially designated nationals 
                                and blocked persons maintained by the 
                                Office of Foreign Assets Control of the 
                                Department of the Treasury pursuant to 
                                authorities relating to the imposition 
                                of sanctions relating to the conduct of 
                                a foreign principal described in 
                                subclause (I).
                            ``(ii) Clarification regarding application 
                        to citizens of the united states.--In the case 
                        of a citizen of the United States, subclause 
                        (II) of clause (i) applies only to the extent 
                        that the person involved acts within the scope 
                        of that person's status as the agent of a 
                        foreign principal described in subclause (I) of 
                        clause (i).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to reportable foreign contacts which 
        occur on or after the date of the enactment of this Act.
    (b) Information Included on Report.--
            (1) In general.--Section 304(b) of such Act (52 U.S.C. 
        30104(b)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (7);
                    (B) by striking the period at the end of paragraph 
                (8) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(9) for any reportable foreign contact (as defined in 
        subsection (j)(3))--
                    ``(A) the date, time, and location of the contact;
                    ``(B) the date and time of when a designated 
                official of the committee was notified of the contact;
                    ``(C) the identity of individuals involved; and
                    ``(D) a description of the contact, including the 
                nature of any contribution, donation, expenditure, 
                disbursement, or solicitation involved and the nature 
                of any activity described in subsection 
                (j)(3)(A)(ii)(II) involved.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to reports filed on or after the 
        expiration of the 60-day period which begins on the date of the 
        enactment of this Act.

SEC. 102. FEDERAL CAMPAIGN FOREIGN CONTACT REPORTING COMPLIANCE SYSTEM.

    (a) In General.--Section 302 of the Federal Election Campaign Act 
of 1971 (52 U.S.C. 30102) is amended by adding at the end the following 
new subsection:
    ``(j) Reportable Foreign Contacts Compliance Policy.--
            ``(1) Reporting.--Each political committee shall establish 
        a policy that requires all officials, employees, and agents of 
        such committee to notify the treasurer or other appropriate 
        designated official of the committee of any reportable foreign 
        contact (as defined in section 304(j)) not later than 3 days 
        after such contact was made.
            ``(2) Retention and preservation of records.--Each 
        political committee shall establish a policy that provides for 
        the retention and preservation of records and information 
        related to reportable foreign contacts (as so defined) for a 
        period of not less than 3 years.
            ``(3) Certification.--
                    ``(A) In general.--Upon filing its statement of 
                organization under section 303(a), and with each report 
                filed under section 304(a), the treasurer of each 
                political committee (other than an authorized 
                committee) shall certify that--
                            ``(i) the committee has in place policies 
                        that meet the requirements of paragraphs (1) 
                        and (2);
                            ``(ii) the committee has designated an 
                        official to monitor compliance with such 
                        policies; and
                            ``(iii) not later than 1 week after the 
                        beginning of any formal or informal affiliation 
                        with the committee, all officials, employees, 
                        and agents of such committee will--
                                    ``(I) receive notice of such 
                                policies;
                                    ``(II) be informed of the 
                                prohibitions under section 319; and
                                    ``(III) sign a certification 
                                affirming their understanding of such 
                                policies and prohibitions.
                    ``(B) Authorized committees.--With respect to an 
                authorized committee, the candidate shall make the 
                certification required under subparagraph (A).''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply with respect to political committees which file a 
        statement of organization under section 303(a) of the Federal 
        Election Campaign Act of 1971 (52 U.S.C. 30103(a)) on or after 
        the date of the enactment of this Act.
            (2) Transition rule for existing committees.--Not later 
        than 30 days after the date of the enactment of this Act, each 
        political committee under the Federal Election Campaign Act of 
        1971 shall file a certification with the Federal Election 
        Commission that the committee is in compliance with the 
        requirements of section 302(j) of such Act (as added by 
        subsection (a)).

SEC. 103. CRIMINAL PENALTIES.

    Section 309(d)(1) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30109(d)(1)) is amended by adding at the end the following new 
subparagraphs:
    ``(E) Any person who knowingly and willfully commits a violation of 
subsection (j) or (b)(9) of section 304 or section 302(j) shall be 
fined not more than $500,000, imprisoned not more than 5 years, or 
both.
    ``(F) Any person who knowingly and willfully conceals or destroys 
any materials relating to a reportable foreign contact (as defined in 
section 304(j)) shall be fined not more than $1,000,000, imprisoned not 
more than 5 years, or both.''.

SEC. 104. RULE OF CONSTRUCTION.

    Nothing in this subtitle or the amendments made by this subtitle 
shall be construed--
            (1) to impede legitimate journalistic activities; or
            (2) to impose any additional limitation on the right to 
        express political views or to participate in public discourse 
        of any individual who--
                    (A) resides in the United States;
                    (B) 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 (8 
                U.S.C. 1101(a)(22)); and
                    (C) 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)).

  Subtitle B--Strengthening Oversight of Online Political Advertising

SEC. 111. SHORT TITLE.

    This subtitle may be cited as the ``Honest Ads Act''.

SEC. 112. PURPOSE.

    The purpose of this subtitle is to enhance the integrity of 
American democracy and national security by improving disclosure 
requirements for online political advertisements in order to uphold the 
Supreme Court's well-established standard that the electorate bears the 
right to be fully informed.

SEC. 113. EXPANSION OF DEFINITION OF PUBLIC COMMUNICATION.

    (a) In General.--Paragraph (22) of section 301 of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30101(22)) is amended by 
striking ``or satellite communication'' and inserting ``satellite, paid 
internet, or paid digital communication''.
    (b) Treatment of Contributions and Expenditures.--Section 301 of 
such Act (52 U.S.C. 30101) is amended--
            (1) in paragraph (8)(B)(v), by striking ``on broadcasting 
        stations, or in newspapers, magazines, or similar types of 
        general public political advertising'' and inserting ``in any 
        public communication''; and
            (2) in paragraph (9)(B)--
                    (A) by amending clause (i) to read as follows:
                            ``(i) any news story, commentary, or 
                        editorial distributed through the facilities of 
                        any broadcasting station or any print, online, 
                        or digital newspaper, magazine, blog, 
                        publication, or periodical, unless such 
                        broadcasting, print, online, or digital 
                        facilities are owned or controlled by any 
                        political party, political committee, or 
                        candidate;''; and
                    (B) in clause (iv), by striking ``on broadcasting 
                stations, or in newspapers, magazines, or similar types 
                of general public political advertising'' and inserting 
                ``in any public communication''.
    (c) Disclosure and Disclaimer Statements.--Subsection (a) of 
section 318 of such Act (52 U.S.C. 30120) is amended--
            (1) by striking ``financing any communication through any 
        broadcasting station, newspaper, magazine, outdoor advertising 
        facility, mailing, or any other type of general public 
        political advertising'' and inserting ``financing any public 
        communication''; and
            (2) by striking ``solicits any contribution through any 
        broadcasting station, newspaper, magazine, outdoor advertising 
        facility, mailing, or any other type of general public 
        political advertising'' and inserting ``solicits any 
        contribution through any public communication''.

SEC. 114. EXPANSION OF DEFINITION OF ELECTIONEERING COMMUNICATION.

    (a) Expansion to Online Communications.--
            (1) Application to qualified internet and digital 
        communications.--
                    (A) In general.--Subparagraph (A) of section 
                304(f)(3) of the Federal Election Campaign Act of 1971 
                (52 U.S.C. 30104(f)(3)(A)) is amended by striking ``or 
                satellite communication'' each place it appears in 
                clauses (i) and (ii) and inserting ``satellite, or 
                qualified internet or digital communication''.
                    (B) Qualified internet or digital communication.--
                Paragraph (3) of section 304(f) of such Act (52 U.S.C. 
                30104(f)) is amended by adding at the end the following 
                new subparagraph:
                    ``(D) Qualified internet or digital 
                communication.--The term `qualified internet or digital 
                communication' means any communication which is placed 
                or promoted for a fee on an online platform (as defined 
                in subsection (k)(3)).''.
            (2) Nonapplication of relevant electorate to online 
        communications.--Section 304(f)(3)(A)(i)(III) of such Act (52 
        U.S.C. 30104(f)(3)(A)(i)(III)) is amended by inserting ``any 
        broadcast, cable, or satellite'' before ``communication''.
            (3) News exemption.--Section 304(f)(3)(B)(i) of such Act 
        (52 U.S.C. 30104(f)(3)(B)(i)) is amended to read as follows:
                            ``(i) a communication appearing in a news 
                        story, commentary, or editorial distributed 
                        through the facilities of any broadcasting 
                        station or any online or digital newspaper, 
                        magazine, blog, publication, or periodical, 
                        unless such broadcasting, online, or digital 
                        facilities are owned or controlled by any 
                        political party, political committee, or 
                        candidate;''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to communications made on or after January 1, 2020.

SEC. 115. APPLICATION OF DISCLAIMER STATEMENTS TO ONLINE 
              COMMUNICATIONS.

    (a) Clear and Conspicuous Manner Requirement.--Subsection (a) of 
section 318 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30120(a)) is amended--
            (1) by striking ``shall clearly state'' each place it 
        appears in paragraphs (1), (2), and (3) and inserting ``shall 
        state in a clear and conspicuous manner''; and
            (2) by adding at the end the following flush sentence: 
        ``For purposes of this section, a communication does not make a 
        statement in a clear and conspicuous manner if it is difficult 
        to read or hear or if the placement is easily overlooked.''.
    (b) Special Rules for Qualified Internet or Digital 
Communications.--
            (1) In general.--Section 318 of such Act (52 U.S.C. 30120) 
        is amended by adding at the end the following new subsection:
    ``(e) Special Rules for Qualified Internet or Digital 
Communications.--
            ``(1) Special rules with respect to statements.--In the 
        case of any communication to which this section applies which 
        is a qualified internet or digital communication (as defined in 
        section 304(f)(3)(D)) which is disseminated through a medium in 
        which the provision of all of the information specified in this 
        section is not possible, the communication shall, in a clear 
        and conspicuous manner--
                    ``(A) state the name of the person who paid for the 
                communication; and
                    ``(B) provide a means for the recipient of the 
                communication to obtain the remainder of the 
                information required under this section with minimal 
                effort and without receiving or viewing any additional 
                material other than such required information.
            ``(2) Safe harbor for determining clear and conspicuous 
        manner.--A statement in a qualified internet or digital 
        communication (as defined in section 304(f)(3)(D)) shall be 
        considered to be made in a clear and conspicuous manner as 
        provided in subsection (a) if the communication meets the 
        following requirements:
                    ``(A) Text or graphic communications.--In the case 
                of a text or graphic communication, the statement--
                            ``(i) appears in letters at least as large 
                        as the majority of the text in the 
                        communication; and
                            ``(ii) meets the requirements of paragraphs 
                        (2) and (3) of subsection (c).
                    ``(B) Audio communications.--In the case of an 
                audio communication, the statement is spoken in a 
                clearly audible and intelligible manner at the 
                beginning or end of the communication and lasts at 
                least 3 seconds.
                    ``(C) Video communications.--In the case of a video 
                communication which also includes audio, the 
                statement--
                            ``(i) is included at either the beginning 
                        or the end of the communication; and
                            ``(ii) is made both in--
                                    ``(I) a written format that meets 
                                the requirements of subparagraph (A) 
                                and appears for at least 4 seconds; and
                                    ``(II) an audible format that meets 
                                the requirements of subparagraph (B).
                    ``(D) Other communications.--In the case of any 
                other type of communication, the statement is at least 
                as clear and conspicuous as the statement specified in 
                subparagraph (A), (B), or (C).''.
            (2) Nonapplication of certain exceptions.--The exceptions 
        provided in section 110.11(f)(1)(i) and (ii) of title 11, Code 
        of Federal Regulations, or any successor to such rules, shall 
        have no application to qualified internet or digital 
        communications (as defined in section 304(f)(3)(D) of the 
        Federal Election Campaign Act of 1971, as added by this Act).
    (c) Modification of Additional Requirements for Certain 
Communications.--Section 318(d) of such Act (52 U.S.C. 30120(d)) is 
amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``which is transmitted through 
                radio'' and inserting ``which is in an audio format''; 
                and
                    (B) by striking ``By radio'' in the heading and 
                inserting ``Audio format'';
            (2) in paragraph (1)(B)--
                    (A) by striking ``which is transmitted through 
                television'' and inserting ``which is in video 
                format''; and
                    (B) by striking ``By television'' in the heading 
                and inserting ``Video format''; and
            (3) in paragraph (2)--
                    (A) by striking ``transmitted through radio or 
                television'' and inserting ``made in audio or video 
                format''; and
                    (B) by striking ``through television'' in the 
                second sentence and inserting ``in video format''.

SEC. 116. POLITICAL RECORD REQUIREMENTS FOR ONLINE PLATFORMS.

    (a) In General.--Section 304 of the Federal Election Campaign Act 
of 1971 (52 U.S.C. 30104), as amended by section 101(a), is further 
amended by adding at the end the following new subsection:
    ``(k) Disclosure of Certain Online Advertisements.--
            ``(1) In general.--
                    ``(A) Requirements for online platforms.--An online 
                platform shall maintain, and make available for online 
                public inspection in machine readable format, a 
                complete record of any request to purchase on such 
                online platform a qualified political advertisement 
                which is made by a person whose aggregate requests to 
                purchase qualified political advertisements on such 
                online platform during the calendar year exceeds $500.
                    ``(B) Requirements for advertisers.--Any person who 
                requests to purchase a qualified political 
                advertisement on an online platform shall provide the 
                online platform with such information as is necessary 
                for the online platform to comply with the requirements 
                of subparagraph (A).
            ``(2) Contents of record.--A record maintained under 
        paragraph (1)(A) shall contain--
                    ``(A) a digital copy of the qualified political 
                advertisement;
                    ``(B) a description of the audience targeted by the 
                advertisement, the number of views generated from the 
                advertisement, and the date and time that the 
                advertisement is first displayed and last displayed; 
                and
                    ``(C) information regarding--
                            ``(i) the average rate charged for the 
                        advertisement;
                            ``(ii) the name of the candidate to which 
                        the advertisement refers and the office to 
                        which the candidate is seeking election, the 
                        election to which the advertisement refers, or 
                        the national legislative issue to which the 
                        advertisement refers (as applicable);
                            ``(iii) in the case of a request made by, 
                        or on behalf of, a candidate, the name of the 
                        candidate, the authorized committee of the 
                        candidate, and the treasurer of such committee; 
                        and
                            ``(iv) in the case of any request not 
                        described in clause (iii), the name of the 
                        person purchasing the advertisement, the name 
                        and address of a contact person for such 
                        person, and a list of the chief executive 
                        officers or members of the executive committee 
                        or of the board of directors of such person.
            ``(3) Online platform.--For purposes of this subsection, 
        the term `online platform' means any public-facing website, web 
        application, or digital application (including a social 
        network, ad network, or search engine) which--
                    ``(A) sells qualified political advertisements; and
                    ``(B) has 50,000,000 or more unique monthly United 
                States visitors or users for a majority of months 
                during the preceding 12 months.
            ``(4) Qualified political advertisement.--For purposes of 
        this subsection, the term `qualified political advertisement' 
        means any advertisement (including search engine marketing, 
        display advertisements, video advertisements, native 
        advertisements, and sponsorships) that--
                    ``(A) is made by or on behalf of a candidate; or
                    ``(B) communicates a message relating to any 
                political matter of national importance, including--
                            ``(i) a candidate;
                            ``(ii) any election to Federal office; or
                            ``(iii) a national legislative issue of 
                        public importance.
            ``(5) Time to maintain file.--The information required 
        under this subsection shall be made available as soon as 
        possible and shall be retained by the online platform for a 
        period of not less than 4 years.
            ``(6) Safe harbor for platforms making best efforts to 
        identify requests which are subject to record maintenance 
        requirements.--In accordance with rules established by the 
        Commission, if an online platform shows that the platform used 
        best efforts to determine whether or not a request to purchase 
        a qualified political advertisement was subject to the 
        requirements of this subsection, the online platform shall not 
        be considered to be in violation of such requirements.
            ``(7) Penalties.--For penalties for failure by online 
        platforms, and persons requesting to purchase a qualified 
        political advertisement on online platforms, to comply with the 
        requirements of this subsection, see section 309.''.
    (b) Rulemaking.--Not later than 120 days after the date of the 
enactment of this Act, the Federal Election Commission shall establish 
rules--
            (1) requiring common data formats for the record required 
        to be maintained under section 304(k) of the Federal Election 
        Campaign Act of 1971 (as added by subsection (a)) so that all 
        online platforms submit and maintain data online in a common, 
        machine-readable and publicly accessible format;
            (2) establishing search interface requirements relating to 
        such record, including searches by candidate name, issue, 
        purchaser, and date; and
            (3) establishing the criteria for the safe harbor exception 
        provided under paragraph (6) of section 304(k) of such Act (as 
        added by subsection (a)).
    (c) Reporting.--Not later than 2 years after the date of the 
enactment of this Act, and biannually thereafter, the Chairman of the 
Federal Election Commission shall submit a report to Congress on--
            (1) matters relating to compliance with and the enforcement 
        of the requirements of section 304(k) of the Federal Election 
        Campaign Act of 1971, as added by subsection (a);
            (2) recommendations for any modifications to such section 
        to assist in carrying out its purposes; and
            (3) identifying ways to bring transparency and 
        accountability to political advertisements distributed online 
        for free.

SEC. 117. PREVENTING CONTRIBUTIONS, EXPENDITURES, INDEPENDENT 
              EXPENDITURES, AND DISBURSEMENTS FOR ELECTIONEERING 
              COMMUNICATIONS BY FOREIGN NATIONALS IN THE FORM OF ONLINE 
              ADVERTISING.

    Section 319 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30121) is amended by adding at the end the following new subsection:
    ``(c) Responsibilities of Broadcast Stations, Providers of Cable 
and Satellite Television, and Online Platforms.--
            ``(1) Responsibilities described.--Each television or radio 
        broadcast station, provider of cable or satellite television, 
        or online platform (as defined in section 304(k)(3)) shall make 
        reasonable efforts to ensure that communications described in 
        section 318(a) and made available by such station, provider, or 
        platform are not purchased by a foreign national, directly or 
        indirectly. For purposes of the previous sentence, a station, 
        provider, or online platform shall not be considered to have 
        made reasonable efforts under this paragraph in the case of the 
        availability of a communication unless the station, provider, 
        or online platform directly inquires from the individual or 
        entity making such purchase whether the purchase is to be made 
        by a foreign national, directly or indirectly.
            ``(2) Special rules for disbursement paid with credit 
        card.--For purposes of paragraph (1), a television or radio 
        broadcast station, provider of cable or satellite television, 
        or online platform shall be considered to have made reasonable 
        efforts under such paragraph in the case of a purchase of the 
        availability of a communication which is made with a credit 
        card if--
                    ``(A) the individual or entity making such purchase 
                is required, at the time of making such purchase, to 
                disclose the credit verification value of such credit 
                card; and
                    ``(B) the billing address associated with such 
                credit card is located in the United States or, in the 
                case of a purchase made by an individual who is a 
                United States citizen living outside of the United 
                States, the individual provides the television or radio 
                broadcast station, provider of cable or satellite 
                television, or online platform with the United States 
                mailing address the individual uses for voter 
                registration purposes.''.

 TITLE II--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN 
                               ELECTIONS

SEC. 201. CLARIFICATION OF PROHIBITION ON PARTICIPATION BY FOREIGN 
              NATIONALS IN ELECTION-RELATED ACTIVITIES.

    (a) Clarification of Prohibition.--Section 319(a) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30121(a)) 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) a foreign national to direct, dictate, control, or 
        directly or indirectly participate in the decision making 
        process of any person (including a corporation, labor 
        organization, political committee, or political organization) 
        with regard to such person's Federal or non-Federal election-
        related activity, including any decision concerning the making 
        of contributions, donations, expenditures, or disbursements in 
        connection with an election for any Federal, State, or local 
        office or any decision concerning the administration of a 
        political committee.''.
    (b) Certification of Compliance.--Section 319 of such Act (52 
U.S.C. 30121), as amended by section 117, is further amended by adding 
at the end the following new subsection:
    ``(d) 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, labor organization (as defined in section 316(b)), limited 
liability corporation, or partnership during a year, the chief 
executive officer of the corporation, labor organization, limited 
liability corporation, or partnership (or, if the corporation, labor 
organization, limited liability corporation, or partnership does not 
have a chief executive officer, the highest ranking official of the 
corporation, labor organization, limited liability corporation, or 
partnership), shall file a certification with the Commission, under 
penalty of perjury, that a foreign national did not direct, dictate, 
control, or directly or indirectly participate in the decision making 
process relating to such activity in violation of subsection (a)(3), 
unless the chief executive officer has previously filed such a 
certification during that calendar year.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect upon the expiration of the 180-day period which begins on the 
date of the enactment of this Act.

SEC. 202. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN 
              DISBURSEMENTS AND ACTIVITIES.

    (a) Application to Disbursements to Super PACs.--Section 
319(a)(1)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30121(a)(1)(A)) is amended by striking the semicolon and inserting the 
following: ``, including any disbursement to a political committee 
which accepts donations or contributions that do not comply with the 
limitations, prohibitions, and reporting requirements of this Act (or 
any disbursement to or on behalf of any account of a political 
committee which is established for the purpose of accepting such 
donations or contributions);''.
    (b) Conditions Under Which Corporate PACs May Make Contributions 
and Expenditures.--Section 316(b) of such Act (52 U.S.C. 30118(b)) is 
amended by adding at the end the following new paragraph:
    ``(8) A separate segregated fund established by a corporation may 
not make a contribution or expenditure during a year unless the fund 
has certified to the Commission the following during the year:
            ``(A) Each individual who manages the fund, and who is 
        responsible for exercising decisionmaking authority for the 
        fund, is a citizen of the United States or is lawfully admitted 
        for permanent residence in the United States.
            ``(B) No foreign national under section 319 participates in 
        any way in the decisionmaking processes of the fund with regard 
        to contributions or expenditures under this Act.
            ``(C) The fund does not solicit or accept recommendations 
        from any foreign national under section 319 with respect to the 
        contributions or expenditures made by the fund.
            ``(D) Any member of the board of directors of the 
        corporation who is a foreign national under section 319 
        abstains from voting on matters concerning the fund or its 
        activities.''.

SEC. 203. AUDIT AND REPORT ON ILLICIT FOREIGN MONEY IN FEDERAL 
              ELECTIONS.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (52 U.S.C. 30101 et seq.) is amended by inserting after section 
319 the following new section:

``SEC. 319A. AUDIT AND REPORT ON DISBURSEMENTS BY FOREIGN NATIONALS.

    ``(a) Audit.--
            ``(1) In general.--The Commission shall conduct an audit 
        after each Federal election cycle to determine the incidence of 
        illicit foreign money in such Federal election cycle.
            ``(2) Procedures.--In carrying out paragraph (1), the 
        Commission shall conduct random audits of any disbursements 
        required to be reported under this Act, in accordance with 
        procedures established by the Commission.
    ``(b) Report.--Not later than 180 days after the end of each 
Federal election cycle, the Commission shall submit to Congress a 
report containing--
            ``(1) results of the audit required by subsection (a)(1); 
        and
            ``(2) recommendations to address the presence of illicit 
        foreign money in elections, as appropriate.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `Federal election cycle' means the period 
        which begins on the day after the date of a regularly scheduled 
        general election for Federal office and which ends on the date 
        of the first regularly scheduled general election for Federal 
        office held after such date.
            ``(2) The term `illicit foreign money' means any 
        disbursement by a foreign national (as defined in section 
        319(b)) prohibited under such section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the Federal election cycle that began during 
November 2018, and each succeeding Federal election cycle.

SEC. 204. PROHIBITION ON CONTRIBUTIONS AND DONATIONS BY FOREIGN 
              NATIONALS IN CONNECTIONS WITH BALLOT INITIATIVES AND 
              REFERENDA.

    (a) In General.--Section 319(a)(1)(A) of the Federal Election 
Campaign Act of 1971 (52 U.S.C. 30121(a)(1)(A)) is amended by striking 
``election'' and inserting the following: ``election, including a State 
or local ballot initiative or referendum''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to elections held in 2020 or any succeeding year.

SEC. 205. EXPANSION OF LIMITATIONS ON FOREIGN NATIONALS PARTICIPATING 
              IN POLITICAL ADVERTISING.

    (a) Disbursements Described.--Section 319(a)(1) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (B); and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) an expenditure;
                    ``(D) an independent expenditure;
                    ``(E) a disbursement for an electioneering 
                communication (within the meaning of section 
                304(f)(3));
                    ``(F) a disbursement for a communication which is 
                placed or promoted for a fee on a website, web 
                application, or digital application that refers to a 
                clearly identified candidate for election for Federal 
                office and is disseminated within 60 days before a 
                general, special or runoff election for the office 
                sought by the candidate or 30 days before a primary or 
                preference election, or a convention or caucus of a 
                political party that has authority to nominate a 
                candidate for the office sought by the candidate;
                    ``(G) a disbursement for a broadcast, cable or 
                satellite communication, or for a communication which 
                is placed or promoted for a fee on a website, web 
                application, or digital application, that promotes, 
                supports, attacks or opposes the election of a clearly 
                identified candidate for Federal, State, or local 
                office (regardless of whether the communication 
                contains express advocacy or the functional equivalent 
                of express advocacy);
                    ``(H) a disbursement for a broadcast, cable, or 
                satellite communication, or for any communication which 
                is placed or promoted for a fee on an online platform 
                (as defined in section 304(k)(3)), that discusses a 
                national legislative issue of public importance in a 
                year in which a regularly scheduled general election 
                for Federal office is held, but only if the 
                disbursement is made by a covered foreign national 
                described in section 304(j)(3)(C); or
                    ``(I) a disbursement by a covered foreign national 
                described in section 304(j)(3)(C) to compensate any 
                person for internet activity that promotes, supports, 
                attacks or opposes the election of a clearly identified 
                candidate for Federal, State, or local office 
                (regardless of whether the activity communication 
                contains express advocacy or the functional equivalent 
                of express advocacy);''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to disbursements made on or after the date of the 
enactment of this Act.

         TITLE III--DETERRING FOREIGN INTERFERENCE IN ELECTIONS

   Subtitle A--Deterrence Under Federal Election Campaign Act of 1971

SEC. 301. RESTRICTIONS ON EXCHANGE OF CAMPAIGN INFORMATION BETWEEN 
              CANDIDATES AND FOREIGN POWERS.

    Section 319 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30121), as amended by section 117 and section 201(b), is further 
amended by adding at the end the following new subsection:
    ``(e) Restrictions on Exchange of Information Between Candidates 
and Foreign Powers.--
            ``(1) Treatment of offer to share nonpublic campaign 
        material as solicitation of contribution from foreign 
        national.--If a candidate or an individual affiliated with the 
        campaign of a candidate, or if a political committee or an 
        individual affiliated with a political committee, provides or 
        offers to provide nonpublic campaign material to a covered 
        foreign national or to another person whom the candidate, 
        committee, or individual knows or has reason to know will 
        provide the material to a covered foreign national, the 
        candidate, committee, or individual (as the case may be) shall 
        be considered for purposes of this section to have solicited a 
        contribution or donation described in subsection (a)(1)(A) from 
        a foreign national.
            ``(2) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) The term `candidate' means an individual who 
                seeks nomination for, or election to, any Federal, 
                State, or local public office.
                    ``(B) The term `covered foreign national' has the 
                meaning given such term in section 304(j)(3)(C).
                    ``(C) The term `individual affiliated with a 
                campaign' means, with respect to a candidate, an 
                employee of any organization legally authorized under 
                Federal, State, or local law to support the candidate's 
                campaign for nomination for, or election to, any 
                Federal, State, or local public office, as well as any 
                independent contractor of such an organization and any 
                individual who performs services on behalf of the 
                organization, whether paid or unpaid.
                    ``(D) The term `individual affiliated with a 
                political committee' means, with respect to a political 
                committee, an employee of the committee as well as any 
                independent contractor of the committee and any 
                individual who performs services on behalf of the 
                committee, whether paid or unpaid.
                    ``(E) The term `nonpublic campaign material' means, 
                with respect to a candidate or a political committee, 
                campaign material that is produced by the candidate or 
                the committee or produced at the candidate or 
                committee's expense or request which is not distributed 
                or made available to the general public or otherwise in 
                the public domain, including polling and focus group 
                data and opposition research, except that such term 
                does not include material produced for purposes of 
                consultations relating solely to the candidate's or 
                committee's position on a legislative or policy 
                matter.''.

SEC. 302. CLARIFICATION OF STANDARD FOR DETERMINING EXISTENCE OF 
              COORDINATION BETWEEN CAMPAIGNS AND OUTSIDE INTERESTS.

    Section 315(a) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30116(a)) is amended by adding at the end the following new 
paragraph:
    ``(10) For purposes of paragraph (7), an expenditure or 
disbursement may be considered to have been made in cooperation, 
consultation, or concert with, or coordinated with, a person without 
regard to whether or not the cooperation, consultation, or coordination 
is carried out pursuant to agreement or formal collaboration.''.

                         Subtitle B--[Reserved]

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. EFFECTIVE DATES OF PROVISIONS.

    Each provision of this Act and each amendment made by a provision 
of this Act shall take effect on the effective date provided under this 
Act for such provision or such amendment without regard to whether or 
not the Federal Election Commission, the Attorney General, or any other 
person has promulgated regulations to carry out such provision or such 
amendment.

SEC. 402. SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
the application of a provision of this Act or an amendment made by this 
Act to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act, and the application of the provisions to any 
person or circumstance, shall not be affected by the holding.
                                                 Union Calendar No. 196

116th CONGRESS

  1st Session

                               H. R. 4617

                      [Report No. 116-246, Part I]

_______________________________________________________________________

                                 A BILL

   To amend the Federal Election Campaign Act of 1971 to clarify the 
  obligation to report acts of foreign election influence and require 
implementation of compliance and reporting systems by Federal campaigns 
        to detect and report such acts, and for other purposes.

_______________________________________________________________________

                            October 21, 2019

 Reported from the Committee on House Administration with an amendment

                            October 21, 2019

 Committee on the Judiciary discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
```