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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5011 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5011

    To amend the Federal Election Campaign Act of 1971 to prohibit 
authorized committees of candidates for election for Federal office and 
    leadership PACs from employing immediate family members of the 
    candidates, to amend such Act to limit the rate of interest an 
   authorized committee of a candidate may pay on loans made to the 
committee by the candidate, to amend such Act to apply the prohibition 
      against the conversion of contributions to personal use to 
contributions to political committees, to amend the Lobbying Disclosure 
 Act of 1995 to require registered lobbyists to identify relatives who 
 are covered officials and disclose lobbying contacts with relatives, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2014

  Ms. Speier 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

_______________________________________________________________________

                                 A BILL

 
    To amend the Federal Election Campaign Act of 1971 to prohibit 
authorized committees of candidates for election for Federal office and 
    leadership PACs from employing immediate family members of the 
    candidates, to amend such Act to limit the rate of interest an 
   authorized committee of a candidate may pay on loans made to the 
committee by the candidate, to amend such Act to apply the prohibition 
      against the conversion of contributions to personal use to 
contributions to political committees, to amend the Lobbying Disclosure 
 Act of 1995 to require registered lobbyists to identify relatives who 
 are covered officials and disclose lobbying contacts with relatives, 
                        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 ``Making Every Representative's 
Integrity Transparent Act of 2014'' or the ``MERIT Act''.

SEC. 2. PROHIBITING CAMPAIGN COMMITTEES FROM EMPLOYING RELATIVES OF 
              CANDIDATES.

    (a) Prohibition.--Section 302 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 432) is amended by adding at the end the following 
new subsection:
    ``(j) Restrictions on Dealings With Relatives of Candidates.--
            ``(1) Prohibiting employment.--
                    ``(A) Authorized committees.--An authorized 
                committee of a candidate may not employ in a paid 
                position any individual who is a relative of the 
                candidate.
                    ``(B) Leadership pacs.--A leadership PAC (as 
                defined in section 304(i)(8)(B)) may not employ in a 
                paid position any individual who is a relative of the 
                candidate or individual holding Federal office who 
                establishes, finances, maintains, or controls the 
                leadership PAC.
            ``(2) Relative defined.--In this subsection, the term 
        `relative' means, with respect to a candidate or individual 
        holding Federal office, an aunt, brother, brother-in-law, 
        daughter, daughter-in-law, father, father-in-law, first cousin, 
        grandson, granddaughter, half-brother, half-sister, husband, 
        mother, mother-in-law, nephew, niece, sister, sister-in-law, 
        son, son-in-law, stepbrother, stepdaughter, stepfather, 
        stepmother, stepsister, stepson, uncle, or wife.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the expiration of the 90-day period which begins on 
the date of the enactment of this Act.

SEC. 3. LIMIT ON INTEREST RATE PAID BY CAMPAIGN COMMITTEES ON LOANS 
              MADE BY CANDIDATES.

    (a) Limit on Interest Rate.--Section 302 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 432), as amended by section 2, is 
further amended by adding at the end the following new subsection:
    ``(k) Limit on Interest Rate Paid on Loans Made by Candidates.--
            ``(1) Limit.--If an authorized committee of a candidate 
        accepts a loan from the candidate, the committee may not pay 
        interest on the loan at an annual rate higher than the prime 
        rate as of the date the loan is agreed to plus 2 percentage 
        points.
            ``(2) Prime rate defined.--In this subsection, the term 
        `prime rate' means the bank prime loan rate published in the 
        Federal Reserve Statistical Release on selected interest rates 
        (daily or weekly), and commonly referred to as the H.15 release 
        (or any successor publication).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to loans made on or after the date of the enactment 
of this Act.

SEC. 4. ENHANCED DISCLOSURE OF CERTAIN INFORMATION BY CAMPAIGN 
              COMMITTEES.

    (a) Loans Made by Candidates.--Section 304(b)(3)(E) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434(b)(3)(E)) is amended by 
striking ``and the date and amount or value of such loan;'' and 
inserting the following: ``the date and amount or value of such loan, 
and in the case of a loan made to an authorized committee which is made 
by or guaranteed by the candidate, the terms and conditions of the 
loan, including the aggregate amount of the loan, the annualized 
interest rate (and, if the interest rate is variable, a description of 
how the rate may vary), the terms and conditions (if any) under which 
the interest rate may be changed from fixed to variable or from 
variable to fixed, the repayment schedule, the duration of the loan, 
any fees and penalties which may be assessed on the borrower, and the 
requirements (if any) for loan forgiveness or deferment;''.
    (b) Payments to Relatives of Candidates.--
            (1) Payments for operating expenses.--Section 304(b)(5)(A) 
        of such Act (2 U.S.C. 434(b)(5)(A)) is amended by striking the 
        semicolon at the end and inserting the following: ``, and, if 
        the person to whom the expenditure is made is a relative of the 
        candidate (as defined in section 302(j)(2)) or is a business 
        organization with respect to which a relative of the candidate 
        (as so defined) serves as an officer or director, the name and 
        address of the relative and the type of relative involved;''.
            (2) Other disbursements.--Section 304(b)(6)(A) of such Act 
        (2 U.S.C. 434(b)(6)(A)) is amended by striking the semicolon at 
        the end and inserting the following: ``, and, if the person who 
        received the disbursement is a relative of the candidate (as 
        defined in section 302(j)(2)) or is a business organization 
        with respect to which a relative of the candidate (as so 
        defined) serves as an officer or director, the name and address 
        of the relative and the type of relative involved;''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to reports filed under section 304 of the Federal 
Election Campaign Act of 1971 after the date of the enactment of this 
Act.

SEC. 5. CLARIFICATION OF RULES APPLICABLE TO USES OF CONTRIBUTIONS 
              ACCEPTED BY POLITICAL COMMITTEES.

    (a) Prohibiting Conversion to Personal Use.--Section 313(b)(2) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 439a(b)(2)) is 
amended by striking ``the candidate's election campaign or individual's 
duties as a holder of Federal office,'' and inserting the following: 
``the candidate's election campaign, the individual's duties as a 
holder of Federal office, or the political committee's political 
activities (as the case may be),''.
    (b) Clarification That Contributions May Be Used for Authorized 
Expenditures in Connection With Political Activities and for Other 
Lawful Purposes.--
            (1) In general.--Section 313(a) of such Act (2 U.S.C. 
        439a(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``accepted by a candidate'' and inserting 
                ``accepted by a candidate or a political committee'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``used by the candidate or individual'' and 
                inserting ``used by the candidate, individual, or 
                political committee''; and
                    (C) in paragraph (1), by striking the semicolon at 
                the end and inserting the following: ``, or, in the 
                case of a political committee, in connection with the 
                committee's political activities;''.
            (2) Conforming amendments.--Section 313(a) of such Act (2 
        U.S.C. 439a(a)) is amended--
                    (A) in paragraph (2), by striking ``for ordinary 
                and necessary expenses'' and inserting ``in the case of 
                a candidate or individual, for ordinary and necessary 
                expenses'';
                    (B) in paragraph (3), by striking ``for 
                contributions'' and inserting ``in the case of a 
                candidate or individual, for contributions'';
                    (C) in paragraph (4), by striking ``for transfers'' 
                and inserting ``in the case of a candidate or 
                individual, for transfers''; and
                    (D) in paragraph (5), by striking ``for donations'' 
                and inserting ``in the case of a candidate or 
                individual, for donations''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to elections occurring after December 2014.

SEC. 6. REQUIRING LOBBYISTS TO IDENTIFY RELATIVES WHO ARE COVERED 
              OFFICIALS AND DISCLOSE LOBBYING CONTACTS WITH RELATIVES.

    (a) Identification of Relatives Who Are Covered Officials in 
Registration Statements.--
            (1) In general.--Section 4(b)(6) of the Lobbying Disclosure 
        Act of 1995 (2 U.S.C. 1603(b)(6)) is amended to read as 
        follows:
            ``(6) for each employee of the registrant who has acted or 
        whom the registrant expects to act as a lobbyist on behalf of 
        the client--
                    ``(A) the name of the employee;
                    ``(B) the position in which the employee served if 
                such employee has served as a covered executive branch 
                official or a covered legislative branch official in 
                the 20 years before the date on which the employee 
                first acted as a lobbyist on behalf of the client; and
                    ``(C) the name of each relative of the employee who 
                serves currently or who served previously as a covered 
                executive branch official or a covered legislative 
                branch official and, in the case of an official who is 
                or was a Member of Congress, the Congressional Bioguide 
                Identifier assigned to the Member by the Clerk of the 
                House of Representatives or the Secretary of the 
                Senate, as the case may be.''.
            (2) Updates to registration for lobbyists who become 
        relatives of covered officials after registration.--Section 4 
        of such Act (2 U.S.C. 1603) is amended by adding at the end the 
        following new subsection:
    ``(e) Updates to Registration for Employees Who Become Relatives of 
Covered Officials.--If, after a registrant registers under this 
section, an employee of the registrant who is identified in the 
registration under subsection (b)(6) becomes the relative of a covered 
legislative branch official or a covered executive branch official, the 
registrant shall update the registration to include the information 
described in subparagraph (B) of such subsection with respect to the 
employee and the official not later than 90 days after the employee 
becomes the relative of the official.''.
            (3) Effective date; transition rule for current 
        registrants.--
                    (A) Effective date.--The amendments made by this 
                subsection shall apply with respect to registrations 
                made under section 4 of the Lobbying Disclosure Act of 
                1995 after the date of the enactment of this Act.
                    (B) Transition rule.--A registrant who registered 
                under section 4 of the Lobbying Disclosure Act of 1995 
                prior to the date of the enactment of this Act shall 
                include the information described in section 4(b)(6)(C) 
                of such Act (as added by paragraph (1)) in the next 
                quarterly report on lobbying activities which the 
                registrant files under section 5(a) of such Act after 
                the date of the enactment of this Act.
    (b) Inclusion of Lobbying Contacts With Relatives in Quarterly 
Reports on Lobbying Activities.--
            (1) In general.--Section 5(b)(2) of such Act (2 U.S.C. 
        1604(b)(2)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (C);
                    (B) by striking the semicolon at the end of 
                subparagraph (D) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(E) if, on behalf of the client, any lobbyist 
                employed by the registrant contacted a relative who is 
                a covered legislative branch official or covered 
                executive branch official, a statement identifying the 
                lobbyist, the official (and, if the official is a 
                Member of Congress, the Congressional Bioguide 
                Identifier assigned to the Member by the Clerk of the 
                House of Representatives or the Secretary of the 
                Senate, as the case may be), the subject matter of the 
                contact, and the type of relative involved;''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to reports filed under section 5 of 
        the Lobbying Disclosure Act of 1995 with respect to quarterly 
        periods which begin on or after the date of the enactment of 
        this Act.
    (c) Relative Defined.--Section 3 of such Act (2 U.S.C. 1602) is 
amended--
            (1) by redesignating paragraph (16) as paragraph (17); and
            (2) by inserting after paragraph (15) the following new 
        paragraph:
            ``(16) Relative.--The term `relative' means, with respect 
        to a lobbyist or employee of a registrant, an aunt, brother, 
        brother-in-law, daughter, daughter-in-law, father, father-in-
        law, first cousin, grandson, granddaughter, half-brother, half-
        sister, husband, mother, mother-in-law, nephew, niece, sister, 
        sister-in-law, son, son-in-law, stepbrother, stepdaughter, 
        stepfather, stepmother, stepsister, stepson, uncle, or wife.''.
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