II 

Calendar No. 476 

111TH CONGRESS 

2D SESSION S. 3628 

To amend the Federal Election Campaign Act of 1971 to prohibit foreign 

influence in Federal elections, to prohibit government contractors from 

making expenditures with respect to such elections, and to establish 

additional disclosure requirements with respect to spending in such elections, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 21, 2010 

Mr. SCHUMER introduced the following bill; which was read the first time 

JULY 22, 2010 

Read the second time and placed on the calendar 

A BILL 

To amend the Federal Election Campaign Act of 1971 to 

prohibit foreign influence in Federal elections, to prohibit 

government contractors from making expenditures with 

respect to such elections, and to establish additional disclosure requirements with respect to spending in such 

elections, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


rfrederick on DSKD9S0YB1PROD with BILLS
2 

•S 3628 PCS

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Democracy is Strengthened by Casting Light on Spend4 ing in Elections Act’’ or the ‘‘DISCLOSE Act’’. 

5 (b) TABLE OF CONTENTS.—The table of contents of 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—REGULATION OF CERTAIN POLITICAL SPENDING 

Sec. 101. Prohibiting independent expenditures and electioneering communications by government contractors. 

Sec. 102. Application of ban on contributions and expenditures by foreign nationals to foreign-controlled domestic corporations. 

Sec. 103. Treatment of payments for coordinated communications as contributions. 

Sec. 104. Treatment of political party communications made on behalf of candidates. 

Sec. 105. Restriction on internet communications treated as public communications. 

TITLE II—PROMOTING EFFECTIVE DISCLOSURE OF CAMPAIGNRELATED ACTIVITY 

Subtitle A—Treatment of Independent Expenditures and Electioneering 

Communications Made by All Persons 

Sec. 201. Independent expenditures. 

Sec. 202. Electioneering communications. 

Sec. 203. Mandatory electronic filing by persons making independent expenditures or electioneering communications exceeding $10,000 at 

any time. 

Subtitle B—Expanded Requirements for Corporations and Other 

Organizations 

Sec. 211. Additional information required to be included in reports on disbursements by covered organizations. 

Sec. 212. Rules regarding use of general treasury funds by covered organizations for campaign-related activity. 

Sec. 213. Optional use of separate account by covered organizations for campaign-related activity. 

Sec. 214. Modification of rules relating to disclaimer statements required for 

certain communications. 

Sec. 215. Indexing of certain amounts. 

Subtitle C—Reporting Requirements for Registered Lobbyists 


rfrederick on DSKD9S0YB1PROD with BILLS
3 

•S 3628 PCS

Sec. 221. Requiring registered lobbyists to report information on independent 

expenditures and electioneering communications. 

Subtitle D—Filing by Senate Candidates With Commission 

Sec. 231. Filing by Senate candidates with Commission. 

TITLE III—DISCLOSURE BY COVERED ORGANIZATIONS OF 

INFORMATION ON CAMPAIGN-RELATED ACTIVITY 

Sec. 301. Requiring disclosure by covered organizations of information on campaign-related activity. 

TITLE IV—OTHER PROVISIONS 

Sec. 401. Judicial review. 

Sec. 402. No effect on protections against threats, harassments, and reprisals. 

Sec. 403. Severability. 

Sec. 404. Effective date. 

1 SEC. 2. FINDINGS. 

2 (a) GENERAL FINDINGS.—Congress finds and de3 clares as follows: 

4 (1) Throughout the history of the United 

5 States, the American people have been rightly con6 cerned about the power of special interests to control 

7 our democratic processes. That was true over 100 

8 years ago when Congress first enacted legislation in9 tended to restrict corporate funds from being used 

10 in Federal elections, legislation that Congress 

11 amended in 1947 to expressly include independent 

12 expenditures. The Supreme Court held such legisla13 tion to be constitutional in 1990 in Austin v. Michi14 gan Chamber of Commerce (494 U.S. 652) and 

15 again in 2003 in McConnell v. F.E.C. (540 U.S. 

16 93). 


rfrederick on DSKD9S0YB1PROD with BILLS
4 

•S 3628 PCS

1 (2) The Supreme Court’s decision in Citizens 

2 United v. Federal Election Commission on January 

3 21, 2010, invalidated legislation restricting the abil4 ity of corporations and labor unions to spend funds 

5 from their general treasury accounts to influence the 

6 outcome of elections. 

7 (b) FINDINGS RELATING TO GOVERNMENT CON8 TRACTORS.—Congress finds and declares as follows: 

9 (1) Government contracting is an activity that 

10 is particularly susceptible to improper influence, and 

11 to the appearance of improper influence. Govern12 ment contracts must be awarded based on an objec13 tive evaluation of how well bidders or potential con14 tractors meet relevant statutory criteria. 

15 (2) Independent expenditures and electioneering 

16 communications that benefit particular candidates or 

17 elected officials or disfavor their opponents can lead 

18 to apparent and actual ingratiation, access, influ19 ence, and quid pro quo arrangements. Government 

20 contracts should be awarded based on an objective 

21 application of statutory criteria, not based on other 

22 forms of inappropriate or corrupting influence. 

23 (3) Prohibiting independent expenditures and 

24 electioneering communications by persons negoti25 ating for or performing government contracts will 


rfrederick on DSKD9S0YB1PROD with BILLS
5 

•S 3628 PCS

1 prevent government officials involved in or with in2 fluence over the contracting process from influencing 

3 the contracting process based, consciously or other4 wise, on this kind of inappropriate or corrupting in5 fluence. 

6 (4) Prohibiting independent expenditures and 

7 electioneering communications by persons negoti8 ating for or performing government contracts will 

9 likewise prevent such persons from feeling pressure, 

10 whether actually exerted by government officials or 

11 not, to make expenditures and to fund communica12 tions in order to maximize their chances of receiving 

13 contracts, or to match similar expenditures and com14 munications made by their competitors. 

15 (5) Furthermore, because government contracts 

16 often involve large amounts of public money, it is 

17 critical that the public perceive that the government 

18 contracts are awarded strictly in accordance with 

19 prescribed statutory standards, and not based on 

20 other forms of inappropriate or corrupting influence. 

21 The public’s confidence in government is under22 mined when corporations that make significant ex23 penditures during Federal election campaigns later 

24 receive government funds. 


rfrederick on DSKD9S0YB1PROD with BILLS
6 

•S 3628 PCS

1 (6) Prohibiting independent expenditures and 

2 electioneering communications by persons negoti3 ating for or performing government contracts will 

4 prevent any appearance that government contracts 

5 were awarded based in whole or in part on such ex6 penditures or communications, or based on the inap7 propriate or corrupting influence such expenditures 

8 and communications can create and appear to cre9 ate. 

10 (7) In these ways, prohibiting independent ex11 penditures and electioneering communications by 

12 persons negotiating for or performing government 

13 contracts will protect the actual and perceived integ14 rity of the government contracting process. 

15 (8) Moreover, the risks of waste, fraud and 

16 abuse, all resulting in economic losses to taxpayers, 

17 are significant when would-be public contractors or 

18 applicants for public funds make expenditures in 

19 Federal election campaigns in order to affect elec20 toral outcomes. 

21 (c) FINDINGS RELATING TO FOREIGN CORPORA22 TIONS.—Congress finds and declares as follows: 

23 (1) The Supreme Court’s decision in the Citi24 zens United case has provided the means by which 

25 United States corporations controlled by foreign enVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
7 

•S 3628 PCS

1 tities can freely spend money to influence United 

2 States elections. 

3 (2) Foreign corporations commonly own U.S. 

4 corporations in whole or in part, and U.S. corporate 

5 equity and debt are also held by foreign individuals, 

6 sovereign wealth funds, and even foreign nations at 

7 levels which permit effective control over those U.S. 

8 entities. 

9 (3) As recognized in many areas of the law, for10 eign ownership interests and influences are exerted 

11 in a perceptible way even when the entity is not ma12 jority-foreign-owned. 

13 (4) The Federal Government has broad con14 stitutional power to protect American interests and 

15 sovereignty from foreign interference and intrusion. 

16 (5) Congress has a clear interest in minimizing 

17 foreign intervention, and the perception of foreign 

18 intervention, in United States elections. 

19 (d) FINDINGS RELATING TO COORDINATED EXPEND20 ITURES.—Congress finds and declares as follows: 

21 (1) It has been the consistent view of Congress 

22 and the courts that coordinated expenditures in 

23 campaigns for election are no different in nature 

24 from contributions. 


rfrederick on DSKD9S0YB1PROD with BILLS
8 

•S 3628 PCS

1 (2) Existing rules still allow donors to evade 

2 contribution limits by making campaign expendi3 tures which, while technically qualifying as inde4 pendent expenditures under law, are for all relevant 

5 purposes coordinated with candidates and political 

6 parties and thus raise the potential for corruption or 

7 the appearance of corruption. 

8 (3) Such arrangements have the potential to 

9 give rise to the reality or appearance of corruption 

10 to the same degree that direct contributions to a 

11 candidate may give rise to the reality or appearance 

12 of corruption. Moreover, expenditures which are in 

13 fact made in coordination with a candidate or polit14 ical party have the potential to lessen the public’s 

15 trust and faith in the rules and the integrity of the 

16 electoral process. 

17 (4) The government therefore has a compelling 

18 interest in making sure that expenditures that are 

19 de facto coordinated with a candidate are treated as 

20 such to prevent corruption, the appearance of cor21 ruption, or the perception that some participants are 

22 circumventing the laws and regulations which govern 

23 the financing of election campaigns. 

24 (e) FINDINGS RELATING TO DISCLOSURES AND DIS25 CLAIMERS.—Congress finds and declares as follows: 


rfrederick on DSKD9S0YB1PROD with BILLS
9 

•S 3628 PCS

1 (1) The American people have a compelling in2 terest in knowing who is funding independent ex3 penditures and electioneering communications to in4 fluence Federal elections, and the government has a 

5 compelling interest in providing the public with that 

6 information. Effective disclaimers and prompt disclo7 sure of expenditures, and the disclosure of the fund8 ing sources for these expenditures, can provide 

9 shareholders, voters, and citizens with the informa10 tion needed to evaluate the actions by special inter11 ests seeking influence over the democratic process. 

12 Transparency promotes accountability, increases the 

13 fund of information available to the public con14 cerning the support given to candidates by special 

15 interests, sheds the light of publicity on political 

16 spending, and encourages the leaders of organiza17 tions to act only upon legitimate organizational pur18 poses. 

19 (2) Protecting this compelling interest has be20 come particularly important to address the increase 

21 in special interest spending on election-related com22 munications which Congress finds will result from 

23 the Supreme Court’s decision in the Citizens United 

24 case. The current disclosure and disclaimer require25 ments were designed for a campaign finance system 


rfrederick on DSKD9S0YB1PROD with BILLS
10 

•S 3628 PCS

1 in which such expenditures were subject to prohibi2 tions that no longer apply. 

3 (3) More rigorous disclosure and disclaimer re4 quirements are necessary to protect against the eva5 sion of those current rules that were not the subject 

6 of the Citizens United case. Organizations that en7 gage in election-related communications have used a 

8 variety of methods to attempt to obscure their spon9 sorship of communications from the general public, 

10 including multiple transfers of funds between dif11 ferent individuals and organizations. Robust, en12 hanced disclosure and disclaimer requirements are 

13 necessary to ensure that the electorate is informed 

14 about who is actually paying for particular election15 related communications, and that the shareholders 

16 and members of organizations are aware of their or17 ganizations’ election-related spending. 

18 (4) Various factors, including the frequency of 

19 political campaigns that effectively begin long before 

20 election day, have also rendered the existing system 

21 of disclosure and disclaimer requirements (including 

22 the limited time periods during which some of those 

23 requirements currently apply) inadequate to protect 

24 fully the government’s compelling interests. Those 

25 interests include ensuring that the electorate is fully 


rfrederick on DSKD9S0YB1PROD with BILLS
11 

•S 3628 PCS

1 informed about the sources of election-related spend2 ing, and that shareholders, voters and citizens alike 

3 have the information they need to hold corporations 

4 and elected officials accountable. 

5 (5) The pervasive nature of campaign adver6 tising means that most Americans, even those who 

7 might not be otherwise engaged in the political proc8 ess, will come into contact with campaign adver9 tising. Moreover, the lengthy nature of most modern 

10 campaigns means that many Americans will be ex11 posed to campaign advertising for an extended pe12 riod of time prior to the actual election. Many of 

13 these Americans may lack ready access to the infor14 mation provided through the existing disclosure re15 quirements. For this reason, disclaimers on the cam16 paign advertising itself are particularly important in 

17 improving the knowledge of the American people 

18 about who is funding independent expenditures and 

19 electioneering communications to influence Federal 

20 elections. 

21 (6) Effective disclaimers enable the American 

22 people to assess advertisements as they see or hear 

23 them, making them aware of the sources of funding 

24 behind advertisements, and enabling them to use 

25 that information to help evaluate the persuasiveness 


rfrederick on DSKD9S0YB1PROD with BILLS
12 

•S 3628 PCS

1 of the advertisements. Effective disclaimers can also 

2 alert the electorate to connections between different 

3 advertisements, such as when different advertise4 ments are supported by the same funding source. It 

5 is thus particularly important that disclaimers on all 

6 advertising be presented in a manner that can be 

7 quickly and easily understood, and is likely to be ob8 served and retained, by those seeing or hearing the 

9 advertisement. 

10 (7) The current lack of accountability and 

11 transparency with respect to special interest political 

12 spending allows that spending to serve as a private 

13 benefit for the officials of special interest organiza14 tions, to the detriment of those organizations and 

15 their shareholders and members. 

16 (8) Election-related communications by not-for17 profit charitable organizations raise certain addi18 tional, particularized issues. In the past, such orga19 nizations have sometimes been established in order 

20 to permit the actual sponsors of election-related 

21 communications to obscure their identities from vot22 ers and the general public. At the same time, other 

23 such organizations are familiar, established associa24 tions of persons dedicated to a common and trans25 parent charitable, educational, or recreational purVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
13 

•S 3628 PCS

1 pose. The importance of enhanced disclosures of the 

2 sources of funding of a not-for-profit organization’s 

3 election-related communications is diminished where 

4 certain conditions are met. If an organization is 

5 long-established, the public is more likely to be fa6 miliar with the organization and its purposes, mak7 ing it less important to require disclosure of the or8 ganization’s donors in order for the public to fairly 

9 understand and evaluate its communications. Simi10 larly, national organizations with broad-based mem11 bership are likely to be better known, making en12 hanced disclosure of the organization’s donors less 

13 critical. Organizations that have a substantial mem14 bership, particularly a geographically dispersed and 

15 long-standing membership, are less likely to serve as 

16 conduits for a small number of donors who use the 

17 organization to express their own personal views in 

18 the guise of an organizational communication. Orga19 nizations that accept only limited funds from cor20 porations and do not use any corporate funds to 

21 subsidize campaign-related activities are less likely 

22 to be used to obscure corporate sources of political 

23 communications. In rare cases where all of these 

24 characteristics describe a particular non-profit orga25 nization, the existing disclosure and disclaimer reVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
14 

•S 3628 PCS

1 quirements will provide sufficient information to en2 able the public to understand who is actually speak3 ing. 

4 (f) FINDINGS RELATING TO CAMPAIGN SPENDING BY

5 LOBBYISTS.—Congress finds and declares as follows: 

6 (1) Lobbyists and lobbying organizations, and 

7 through them, their clients, influence the public deci8 sion-making process in a variety of ways. 

9 (2) In recent years, scandals involving undue 

10 lobbyist influence have lowered public trust in gov11 ernment and jeopardized the willingness of voters to 

12 take part in democratic governance. 

13 (3) One way in which lobbyists may unduly in14 fluence Federal officials is through their clients 

15 making independent expenditures or electioneering 

16 communications targeting elected officials. 

17 (4) Disclosure of such independent expenditures 

18 and electioneering communications will allow the 

19 public to examine connections between such spend20 ing and official actions, and will therefore limit the 

21 ability of lobbyists to exert an undue influence on 

22 elected officials. 


rfrederick on DSKD9S0YB1PROD with BILLS
15 

•S 3628 PCS

1 TITLE I—REGULATION OF 

2 CERTAIN POLITICAL SPENDING 

3 SEC. 101. PROHIBITING INDEPENDENT EXPENDITURES AND 

4 ELECTIONEERING COMMUNICATIONS BY 

5 GOVERNMENT CONTRACTORS. 

6 (a) PROHIBITION APPLICABLE TO GOVERNMENT

7 CONTRACTORS.— 

8 (1) PROHIBITION.— 

9 (A) IN GENERAL.—Section 317(a)(1) of 

10 the Federal Election Campaign Act of 1971 (2 

11 U.S.C. 441c(a)(1)) is amended by striking 

12 ‘‘purpose or use; or’’ and inserting the fol13 lowing: ‘‘purpose or use, to make any inde14 pendent expenditure, or to disburse any funds 

15 for an electioneering communication; or’’. 

16 (B) CONFORMING AMENDMENT.—The 

17 heading of section 317 of such Act (2 U.S.C. 

18 441c) is amended by striking ‘‘CONTRIBU19 TIONS’’ and inserting ‘‘CONTRIBUTIONS, INDE20 PENDENT EXPENDITURES, AND ELECTION21 EERING COMMUNICATIONS’’. 

22 (2) THRESHOLD FOR APPLICATION OF BAN.— 

23 Section 317 of such Act (2 U.S.C. 441c) is amend24 ed— 


rfrederick on DSKD9S0YB1PROD with BILLS
16 

•S 3628 PCS

1 (A) by redesignating subsections (b) and 

2 (c) as subsections (c) and (d); and 

3 (B) by inserting after subsection (a) the 

4 following new subsection: 

5 ‘‘(b) To the extent that subsection (a)(1) prohibits 

6 a person who enters into a contract described in such sub7 section from making any independent expenditure or dis8 bursing funds for an electioneering communication, such 

9 subsection shall apply only if the value of the contract is 

10 equal to or greater than $10,000,000.’’. 

11 (b) APPLICATION TO RECIPIENTS OF ASSISTANCE

12 UNDER TROUBLED ASSET PROGRAM.—Section 317(a) of 

13 such Act (2 U.S.C. 441c(a)) is amended— 

14 (1) by striking ‘‘or’’ at the end of paragraph 

15 (1); 

16 (2) by redesignating paragraph (2) as para17 graph (3); and 

18 (3) by inserting after paragraph (1) the fol19 lowing new paragraph: 

20 ‘‘(2) who enters into negotiations for financial 

21 assistance under title I of the Emergency Economic 

22 Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) 

23 (relating to the purchase of troubled assets by the 

24 Secretary of the Treasury), during the period— 


rfrederick on DSKD9S0YB1PROD with BILLS
17 

•S 3628 PCS

1 ‘‘(A) beginning on the later of the com2 mencement of the negotiations or the date of 

3 the enactment of the Democracy is Strength4 ened by Casting Light on Spending in Elections 

5 Act; and 

6 ‘‘(B) ending with the later of the termi7 nation of such negotiations or the repayment of 

8 such financial assistance; 

9 directly or indirectly to make any contribution of 

10 money or other things of value, or to promise ex11 pressly or impliedly to make any such contribution 

12 to any political party, committee, or candidate for 

13 public office or to any person for any political pur14 pose or use, to make any independent expenditure, 

15 or to disburse any funds for an electioneering com16 munication; or’’. 

17 (c) TECHNICAL AMENDMENT.—Section 317 of such 

18 Act (2 U.S.C. 441c) is amended by striking ‘‘section 321’’ 

19 each place it appears and inserting ‘‘section 316’’. 


rfrederick on DSKD9S0YB1PROD with BILLS
18 

•S 3628 PCS

1 SEC. 102. APPLICATION OF BAN ON CONTRIBUTIONS AND 

2 EXPENDITURES BY FOREIGN NATIONALS TO 

3 FOREIGN-CONTROLLED DOMESTIC COR4 PORATIONS. 

5 (a) APPLICATION OF BAN.—Section 319(b) of the 

6 Federal Election Campaign Act of 1971 (2 U.S.C. 

7 441e(b)) is amended— 

8 (1) by striking ‘‘or’’ at the end of paragraph 

9 (1); 

10 (2) by striking the period at the end of para11 graph (2) and inserting ‘‘; or’’; and 

12 (3) by adding at the end the following new 

13 paragraph: 

14 ‘‘(3) any corporation which is not a foreign na15 tional described in paragraph (1) and— 

16 ‘‘(A) in which a foreign national described 

17 in paragraph (1) or (2) directly or indirectly 

18 owns or controls— 

19 ‘‘(i) 5 percent or more of the voting 

20 shares, if the foreign national is a foreign 

21 country, a foreign government official, or a 

22 corporation principally owned or controlled 

23 by a foreign country or foreign government 

24 official; or 


rfrederick on DSKD9S0YB1PROD with BILLS
19 

•S 3628 PCS

1 ‘‘(ii) 20 percent or more of the voting 

2 shares, if the foreign national is not de3 scribed in clause (i); 

4 ‘‘(B) in which two or more foreign nation5 als described in paragraph (1) or (2), each of 

6 whom owns or controls at least 5 percent of the 

7 voting shares, directly or indirectly own or con8 trol 50 percent or more of the voting shares; 

9 ‘‘(C) with respect to which the majority of 

10 the members of the board of directors are for11 eign nationals described in paragraph (1) or 

12 (2); 

13 ‘‘(D) over which one or more foreign na14 tionals described in paragraph (1) or (2) has 

15 the power to direct, dictate, or control the deci16 sion-making process of the corporation with re17 spect to its interests in the United States; or 

18 ‘‘(E) over which one or more foreign na19 tionals described in paragraph (1) or (2) has 

20 the power to direct, dictate, or control the deci21 sion-making process of the corporation with re22 spect to activities in connection with a Federal, 

23 State, or local election, including— 

24 ‘‘(i) the making of a contribution, do25 nation, expenditure, independent expendiVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
20 

•S 3628 PCS

1 ture, or disbursement for an electioneering 

2 communication (within the meaning of sec3 tion 304(f)(3)); or 

4 ‘‘(ii) the administration of a political 

5 committee established or maintained by the 

6 corporation.’’. 

7 (b) CERTIFICATION OF COMPLIANCE.—Section 319 

8 of such Act (2 U.S.C. 441e) is amended by adding at the 

9 end the following new subsection: 

10 ‘‘(c) CERTIFICATION OF COMPLIANCE REQUIRED

11 PRIOR TO CARRYING OUT ACTIVITY.—Prior to the mak12 ing in connection with an election for Federal office of any 

13 contribution, donation, expenditure, independent expendi14 ture, or disbursement for an electioneering communication 

15 by a corporation during a year, the chief executive officer 

16 of the corporation (or, if the corporation does not have 

17 a chief executive officer, the highest ranking official of the 

18 corporation), shall file a certification with the Commission, 

19 under penalty of perjury, that the corporation is not pro20 hibited from carrying out such activity under subsection 

21 (b)(3), unless the chief executive officer has previously 

22 filed such a certification during the year. Nothing in this 

23 subsection shall be construed to apply to any contribution, 

24 donation, expenditure, independent expenditure, or dis25 bursement from a separate segregated fund established 


rfrederick on DSKD9S0YB1PROD with BILLS
21 

•S 3628 PCS

1 and administered by a corporation under section 

2 316(b)(2)(C).’’. 

3 (c) NO EFFECT ON CERTAIN ACTIVITIES OF DOMES4 TIC CORPORATIONS.—Section 319 of such Act (2 U.S.C. 

5 441e), as amended by subsection (b), is further amended 

6 by adding at the end the following new subsection: 

7 ‘‘(d) NO EFFECT ON CERTAIN ACTIVITIES OF DO8 MESTIC CORPORATIONS.— 

9 ‘‘(1) SEPARATE SEGREGATED FUNDS.—Nothing 

10 in this section shall be construed to prohibit any cor11 poration which is not a foreign national described in 

12 paragraph (1) of subsection (b) from establishing, 

13 administering, and soliciting contributions to a sepa14 rate segregated fund under section 316(b)(2)(C), so 

15 long as none of the amounts in the fund are pro16 vided by any foreign national described in paragraph 

17 (1) or (2) of subsection (b) and no foreign national 

18 described in paragraph (1) or (2) of subsection (b) 

19 has the power to direct, dictate, or control the estab20 lishment or administration of the fund. 

21 ‘‘(2) STATE AND LOCAL ELECTIONS.—Nothing 

22 in this section shall be construed to prohibit any cor23 poration which is not a foreign national described in 

24 paragraph (1) of subsection (b) from making a con25 tribution or donation in connection with a State or 


rfrederick on DSKD9S0YB1PROD with BILLS
22 

•S 3628 PCS

1 local election to the extent permitted under State or 

2 local law, so long as no foreign national described in 

3 paragraph (1) or (2) of subsection (b) has the power 

4 to direct, dictate, or control such contribution or do5 nation. 

6 ‘‘(3) OTHER PERMISSIBLE CORPORATE CON7 TRIBUTIONS AND EXPENDITURES.—Nothing in this 

8 section shall be construed to prohibit any corpora9 tion which is not a foreign national described in 

10 paragraph (1) of subsection (b) from carrying out 

11 any activity described in subparagraph (A) or (B) of 

12 section 316(b)(2), so long as none of the amounts 

13 used to carry out the activity are provided by any 

14 foreign national described in paragraph (1) or (2) of 

15 subsection (b) and no foreign national described in 

16 paragraph (1) or (2) of subsection (b) has the power 

17 to direct, dictate, or control such activity.’’. 

18 (d) NO EFFECT ON OTHER LAWS.—Section 319 of 

19 such Act (2 U.S.C. 441e), as amended by subsections (b) 

20 and (c), is further amended by adding at the end the fol21 lowing new subsection: 

22 ‘‘(e) NO EFFECT ON OTHER LAWS.—Nothing in this 

23 section shall be construed to affect the determination of 

24 whether a corporation is treated as a foreign national for 

25 purposes of any law other than this Act.’’. 


rfrederick on DSKD9S0YB1PROD with BILLS
23 

•S 3628 PCS

1 SEC. 103. TREATMENT OF PAYMENTS FOR COORDINATED 

2 COMMUNICATIONS AS CONTRIBUTIONS. 

3 (a) IN GENERAL.—Section 301(8)(A) of the Federal 

4 Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)) is 

5 amended— 

6 (1) by striking ‘‘or’’ at the end of clause (i); 

7 (2) by striking the period at the end of clause 

8 (ii) and inserting ‘‘; or’’; and 

9 (3) by adding at the end the following new 

10 clause: 

11 ‘‘(iii) any payment made by any person 

12 (other than a candidate, an authorized com13 mittee of a candidate, or a political committee 

14 of a political party) for a coordinated commu15 nication (as determined under section 324).’’. 

16 (b) COORDINATED COMMUNICATIONS DESCRIBED.— 

17 Section 324 of such Act (2 U.S.C. 441k) is amended to 

18 read as follows: 

19 ‘‘SEC. 324. COORDINATED COMMUNICATIONS. 

20 ‘‘(a) COORDINATED COMMUNICATIONS DEFINED.— 

21 ‘‘(1) IN GENERAL.—For purposes of this Act, 

22 the term ‘coordinated communication’ means— 

23 ‘‘(A) a covered communication which, sub24 ject to subsection (c), is made in cooperation, 

25 consultation, or concert with, or at the request 

26 or suggestion of, a candidate, an authorized 


rfrederick on DSKD9S0YB1PROD with BILLS
24 

•S 3628 PCS

1 committee of a candidate, or a political com2 mittee of a political party; or 

3 ‘‘(B) any communication that republishes, 

4 disseminates, or distributes, in whole or in part, 

5 any broadcast or any written, graphic, or other 

6 form of campaign material prepared by a can7 didate, an authorized committee of a candidate, 

8 or their agents. 

9 ‘‘(2) EXCEPTION.—The term ‘coordinated com10 munication’ does not include— 

11 ‘‘(A) a communication appearing in a news 

12 story, commentary, or editorial distributed 

13 through the facilities of any broadcasting sta14 tion, newspaper, magazine, or other periodical 

15 publication, unless such facilities are owned or 

16 controlled by any political party, political com17 mittee, or candidate; or 

18 ‘‘(B) a communication which constitutes a 

19 candidate debate or forum conducted pursuant 

20 to the regulations adopted by the Commission 

21 to carry out section 304(f)(3)(B)(iii), or which 

22 solely promotes such a debate or forum and is 

23 made by or on behalf of the person sponsoring 

24 the debate or forum. 

25 ‘‘(b) COVERED COMMUNICATION DEFINED.— 


rfrederick on DSKD9S0YB1PROD with BILLS
25 

•S 3628 PCS

1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (4), for purposes of this subsection, the term 

3 ‘covered communication’ means, for purposes of the 

4 applicable election period described in paragraph (2) 

5 and with respect to the coordinated communication 

6 involved, a public communication (as defined in sec7 tion 301(22)) that refers to the candidate described 

8 in subsection (a)(1)(A) or an opponent of such can9 didate and is publicly distributed or publicly dissemi10 nated during such period. 

11 ‘‘(2) APPLICABLE ELECTION PERIOD.—For 

12 purposes of paragraph (1), the ‘applicable election 

13 period’ with respect to a communication means— 

14 ‘‘(A) in the case of a communication which 

15 refers to a candidate for the office of President 

16 or Vice President, the period— 

17 ‘‘(i) beginning with the date that is 

18 120 days before the date of the first pri19 mary election, preference election, or nomi20 nating convention for nomination for the 

21 office of President which is held in any 

22 State; and 

23 ‘‘(ii) ending with the date of the gen24 eral election for such office; or 


rfrederick on DSKD9S0YB1PROD with BILLS
26 

•S 3628 PCS

1 ‘‘(B) in the case of a communication which 

2 refers to a candidate for any other Federal of3 fice, the period— 

4 ‘‘(i) beginning with the date that is 90 

5 days before the earliest of the primary 

6 election, preference election, or nominating 

7 convention with respect to the nomination 

8 for the office that the candidate is seeking; 

9 and 

10 ‘‘(ii) ending with the date of the gen11 eral election for such office. 

12 ‘‘(3) SPECIAL RULE FOR PUBLIC DISTRIBUTION

13 OF COMMUNICATIONS INVOLVING CONGRESSIONAL

14 CANDIDATES.—For purposes of paragraph (1), in 

15 the case of a communication involving a candidate 

16 for an office other than President or Vice President, 

17 the communication shall be considered to be publicly 

18 distributed or publicly disseminated only if the dis19 semination or distribution occurs in the jurisdiction 

20 of the office that the candidate is seeking. 

21 ‘‘(c) NO FINDING OF COORDINATION BASED SOLELY

22 ON SHARING OF INFORMATION REGARDING LEGISLATIVE

23 OR POLICY POSITION.—For purposes of subsection (a)(1), 

24 a covered communication shall not be considered to be 

25 made in cooperation, consultation, or concert with, or at 


rfrederick on DSKD9S0YB1PROD with BILLS
27 

•S 3628 PCS

1 the request or suggestion of, a candidate, an authorized 

2 committee of a candidate, or a political committee of a 

3 political party solely on the grounds that a person or an 

4 agent thereof engaged in discussions with to the candidate 

5 or committee regarding that person’s position on a legisla6 tive or policy matter (including urging the candidate or 

7 party to adopt that person’s position), so long as there 

8 is no discussion between the person and the candidate or 

9 committee regarding the candidate’s campaign plans, 

10 projects, activities, or needs. 

11 ‘‘(d) PRESERVATION OF CERTAIN SAFE HARBORS

12 AND FIREWALLS.—Nothing in this section may be con13 strued to affect section 109.21(g) or (h) of title 11, Code 

14 of Federal Regulations, as in effect on the date of the en15 actment of the Democracy is Strengthened by Casting 

16 Light on Spending in Elections Act. 

17 ‘‘(e) TREATMENT OF COORDINATION WITH POLIT18 ICAL PARTIES FOR COMMUNICATIONS REFERRING TO

19 CANDIDATES.—For purposes of this section, if a commu20 nication which refers to any clearly identified candidate 

21 or candidates of a political party or any opponent of such 

22 a candidate or candidates is determined to have been made 

23 in cooperation, consultation, or concert with or at the re24 quest or suggestion of a political committee of the political 

25 party but not in cooperation, consultation, or concert with 


rfrederick on DSKD9S0YB1PROD with BILLS
28 

•S 3628 PCS

1 or at the request or suggestion of such clearly identified 

2 candidate or candidates, the communication shall be treat3 ed as having been made in cooperation, consultation, or 

4 concert with or at the request or suggestion of the political 

5 committee of the political party but not with or at the 

6 request or suggestion of such clearly identified candidate 

7 or candidates.’’. 

8 (c) EFFECTIVE DATE.— 

9 (1) IN GENERAL.—This section and the amend10 ments made by this section shall apply with respect 

11 to payments made on or after the expiration of the 

12 30-day period which begins on the date of the enact13 ment of this Act, without regard to whether or not 

14 the Federal Election Commission has promulgated 

15 regulations to carry out such amendments. 

16 (2) TRANSITION RULE FOR ACTIONS TAKEN

17 PRIOR TO ENACTMENT.—No person shall be consid18 ered to have made a payment for a coordinated com19 munication under section 324 of the Federal Elec20 tion Campaign Act of 1971 (as amended by sub21 section (b)) by reason of any action taken by the 

22 person prior to the date of the enactment of this 

23 Act. Nothing in the previous sentence shall be con24 strued to affect any determination under any other 

25 provision of such Act which is in effect on the date 


rfrederick on DSKD9S0YB1PROD with BILLS
29 

•S 3628 PCS

1 of the enactment of this Act regarding whether a 

2 communication is made in cooperation, consultation, 

3 or concert with, or at the request or suggestion of, 

4 a candidate, an authorized committee of a candidate, 

5 or a political committee of a political party. 

6 SEC. 104. TREATMENT OF POLITICAL PARTY COMMUNICA7 TIONS MADE ON BEHALF OF CANDIDATES. 

8 (a) TREATMENT OF PAYMENT FOR PUBLIC COMMU9 NICATION AS CONTRIBUTION IF MADE UNDER CONTROL

10 OR DIRECTION OF CANDIDATE.—Section 301(8)(A) of the 

11 Federal Election Campaign Act of 1971 (2 U.S.C. 

12 431(8)(A)), as amended by section 103(a), is amended— 

13 (1) by striking ‘‘or’’ at the end of clause (ii); 

14 (2) by striking the period at the end of clause 

15 (iii) and inserting ‘‘; or’’; and 

16 (3) by adding at the end the following new 

17 clause: 

18 ‘‘(iv) any payment by a political committee 

19 of a political party for the direct costs of a pub20 lic communication (as defined in paragraph 

21 (22)) made on behalf of a candidate for Federal 

22 office who is affiliated with such party, but only 

23 if the communication is controlled by, or made 

24 at the direction of, the candidate or an author25 ized committee of the candidate.’’. 


rfrederick on DSKD9S0YB1PROD with BILLS
30 

•S 3628 PCS

1 (b) REQUIRING CONTROL OR DIRECTION BY CAN2 DIDATE FOR TREATMENT AS COORDINATED PARTY EX3 PENDITURE.— 

4 (1) IN GENERAL.—Paragraph (4) of section 

5 315(d) of such Act (2 U.S.C. 441a(d)) is amended 

6 to read as follows: 

7 ‘‘(4) SPECIAL RULE FOR DIRECT COSTS OF COMMU8 NICATIONS.—The direct costs incurred by a political com9 mittee of a political party for a communication made in 

10 connection with the campaign of a candidate for Federal 

11 office shall not be subject to the limitations contained in 

12 paragraphs (2) and (3) unless the communication is con13 trolled by, or made at the direction of, the candidate or 

14 an authorized committee of the candidate.’’. 

15 (2) CONFORMING AMENDMENT.—Paragraph (1) 

16 of section 315(d) of such Act (2 U.S.C. 441a(d)) is 

17 amended by striking ‘‘paragraphs (2), (3), and (4)’’ 

18 and inserting ‘‘paragraphs (2) and (3)’’. 

19 (c) EFFECTIVE DATE.—This section and the amend20 ments made by this section shall apply with respect to pay21 ments made on or after the expiration of the 30-day period 

22 which begins on the date of the enactment of this Act, 

23 without regard to whether or not the Federal Election 

24 Commission has promulgated regulations to carry out 

25 such amendments. 


rfrederick on DSKD9S0YB1PROD with BILLS
31 

•S 3628 PCS

1 SEC. 105. RESTRICTION ON INTERNET COMMUNICATIONS 

2 TREATED AS PUBLIC COMMUNICATIONS. 

3 (a) IN GENERAL.—Section 301(22) of the Federal 

4 Election Campaign Act of 1971 (2 U.S.C. 431(22)) is 

5 amended by adding at the end the following new sentence: 

6 ‘‘A communication which is disseminated through the 

7 Internet shall not be treated as a form of general public 

8 political advertising under this paragraph unless the com9 munication was placed for a fee on another person’s Web 

10 site.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall take effect on the date of the enact13 ment of this Act. 

14 TITLE II—PROMOTING EFFEC15 TIVE DISCLOSURE OF CAM16 PAIGN-RELATED ACTIVITY 

17 Subtitle A—Treatment of Inde18 pendent Expenditures and Elec19 tioneering Communications 

20 Made by All Persons 

21 SEC. 201. INDEPENDENT EXPENDITURES. 

22 (a) REVISION OF DEFINITION.—Subparagraph (A) of 

23 section 301(17) of the Federal Election Campaign Act of 

24 1971 (2 U.S.C. 431(17)) is amended to read as follows: 

25 ‘‘(A) that, when taken as a whole, ex26 pressly advocates the election or defeat of a 


rfrederick on DSKD9S0YB1PROD with BILLS
32 

•S 3628 PCS

1 clearly identified candidate, or is the functional 

2 equivalent of express advocacy because it can be 

3 interpreted by a reasonable person only as ad4 vocating the election or defeat of a candidate, 

5 taking into account whether the communication 

6 involved mentions a candidacy, a political party, 

7 or a challenger to a candidate, or takes a posi8 tion on a candidate’s character, qualifications, 

9 or fitness for office; and’’. 

10 (b) UNIFORM 24-HOUR REPORTING FOR PERSONS

11 MAKING INDEPENDENT EXPENDITURES EXCEEDING

12 $10,000 AT ANY TIME.—Section 304(g) of such Act (2 

13 U.S.C. 434(g)) is amended by striking paragraphs (1) and 

14 (2) and inserting the following: 

15 ‘‘(1) INDEPENDENT EXPENDITURES EXCEED16 ING THRESHOLD AMOUNT.— 

17 ‘‘(A) INITIAL REPORT.—A person (includ18 ing a political committee) that makes or con19 tracts to make independent expenditures in an 

20 aggregate amount equal to or greater than the 

21 threshold amount described in subparagraph 

22 (C) shall electronically file a report describing 

23 the expenditures within 24 hours. 

24 ‘‘(B) ADDITIONAL REPORTS.—After a per25 son files a report under subparagraph (A), the 


rfrederick on DSKD9S0YB1PROD with BILLS
33 

•S 3628 PCS

1 person shall electronically file an additional re2 port within 24 hours after each time the person 

3 makes or contracts to make independent ex4 penditures in an aggregate amount equal to or 

5 greater than the threshold amount with respect 

6 to the same election as that to which the initial 

7 report relates. 

8 ‘‘(C) THRESHOLD AMOUNT DESCRIBED.— 

9 In this paragraph, the ‘threshold amount’ 

10 means— 

11 ‘‘(i) during the period up to and in12 cluding the 20th day before the date of an 

13 election, $10,000; or 

14 ‘‘(ii) during the period after the 20th 

15 day, but more than 24 hours, before the 

16 date of an election, $1,000. 

17 ‘‘(2) PUBLIC AVAILABILITY.—Notwithstanding 

18 any other provision of this section, the Commission 

19 shall ensure that the information required to be dis20 closed under this subsection is publicly available 

21 through the Commission website not later than 24 

22 hours after receipt in a manner that is downloadable 

23 in bulk and machine readable.’’. 

24 (c) EFFECTIVE DATE.— 


rfrederick on DSKD9S0YB1PROD with BILLS
34 

•S 3628 PCS

1 (1) IN GENERAL.—The amendment made by 

2 subsection (a) shall apply with respect to contribu3 tions and expenditures made on or after the expira4 tion of the 30-day period which begins on the date 

5 of the enactment of this Act, without regard to 

6 whether or not the Federal Election Commission has 

7 promulgated regulations to carry out such amend8 ments. 

9 (2) REPORTING REQUIREMENTS.—The amend10 ment made by subsection (b) shall apply with re11 spect to reports required to be filed after the date 

12 of the enactment of this Act. 

13 SEC. 202. ELECTIONEERING COMMUNICATIONS. 

14 (a) EXPANSION OF PERIOD COVERING GENERAL

15 ELECTION.—Section 304(f)(3)(A)(i)(II)(aa) of the Fed16 eral Election Campaign Act of 1971 (2 U.S.C. 

17 434(f)(3)(A)(i)(II)(aa)) is amended by striking ‘‘60 days’’ 

18 and inserting ‘‘120 days’’. 

19 (b) EFFECTIVE DATE; TRANSITION FOR COMMU20 NICATIONS MADE PRIOR TO ENACTMENT.—The amend21 ment made by subsection (a) shall apply with respect to 

22 communications made on or after the date of the enact23 ment of this Act, without regard to whether or not the 

24 Federal Election Commission has promulgated regulations 

25 to carry out such amendments, except that no communicaVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
35 

•S 3628 PCS

1 tion which is made prior to the date of the enactment of 

2 this Act shall be treated as an electioneering communica3 tion under section 304(f)(3)(A)(i)(II) of the Federal Elec4 tion Campaign Act of 1971 (as amended by subsection 

5 (a)) unless the communication would be treated as an elec6 tioneering communication under such section if the 

7 amendment made by subsection (a) did not apply. 

8 SEC. 203. MANDATORY ELECTRONIC FILING BY PERSONS 

9 MAKING INDEPENDENT EXPENDITURES OR 

10 ELECTIONEERING COMMUNICATIONS EX11 CEEDING $10,000 AT ANY TIME. 

12 Section 304(d)(1) of the Federal Election Campaign 

13 Act of 1971 (2 U.S.C. 434(d)(1)) is amended— 

14 (1) by striking ‘‘or (g)’’; and 

15 (2) by adding at the end the following: ‘‘Not16 withstanding any other provision of this section, any 

17 person who is required to file a statement under 

18 subsection (f) or subsection (g) shall file the state19 ment in electronic form accessible by computers, in 

20 a manner which ensures that the information pro21 vided is searchable, sortable, and downloadable.’’. 


rfrederick on DSKD9S0YB1PROD with BILLS
36 

•S 3628 PCS

1 Subtitle B—Expanded Require2 ments for Corporations and 

3 Other Organizations 

4 SEC. 211. ADDITIONAL INFORMATION REQUIRED TO BE IN5 CLUDED IN REPORTS ON DISBURSEMENTS BY 

6 COVERED ORGANIZATIONS. 

7 (a) INDEPENDENT EXPENDITURE REPORTS.—Sec8 tion 304(g) of the Federal Election Campaign Act of 1971 

9 (2 U.S.C. 434(g)) is amended by adding at the end the 

10 following new paragraph: 

11 ‘‘(5) DISCLOSURE OF ADDITIONAL INFORMA12 TION BY COVERED ORGANIZATIONS MAKING PAY13 MENTS FOR PUBLIC INDEPENDENT EXPENDI14 TURES.— 

15 ‘‘(A) ADDITIONAL INFORMATION.—If a 

16 covered organization makes or contracts to 

17 make public independent expenditures in an ag18 gregate amount equal to or exceeding $10,000 

19 in a calendar year, the report filed by the orga20 nization under this subsection shall include, in 

21 addition to the information required under 

22 paragraph (3), the following information (sub23 ject to subparagraph (B)(iv)): 

24 ‘‘(i) If any person made a donation or 

25 payment to the covered organization durVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
37 

•S 3628 PCS

1 ing the covered organization reporting pe2 riod which was provided for the purpose of 

3 being used for campaign-related activity or 

4 in response to a solicitation for funds to be 

5 used for campaign-related activity— 

6 ‘‘(I) subject to subparagraph (C), 

7 the identification of each person who 

8 made such donations or payments in 

9 an aggregate amount equal to or ex10 ceeding $600 during such period, pre11 sented in the order of the aggregate 

12 amount of donations or payments 

13 made by such persons during such pe14 riod (with the identification of the 

15 person making the largest donation or 

16 payment appearing first); and 

17 ‘‘(II) if any person identified 

18 under subclause (I) designated that 

19 the donation or payment be used for 

20 campaign-related activity with respect 

21 to a specific election or in support of 

22 a specific candidate, the name of the 

23 election or candidate involved, and if 

24 any such person designated that the 

25 donation or payment be used for a 


rfrederick on DSKD9S0YB1PROD with BILLS
38 

•S 3628 PCS

1 specific public independent expendi2 ture, a description of the expenditure. 

3 ‘‘(ii) The identification of each person 

4 who made unrestricted donor payments to 

5 the organization during the covered organi6 zation reporting period— 

7 ‘‘(I) in an aggregate amount 

8 equal to or exceeding $600 during 

9 such period, if any of the disburse10 ments made by the organization for 

11 any of the public independent expendi12 tures which are covered by the report 

13 were not made from the organization’s 

14 Campaign-Related Activity Account 

15 under section 326; or 

16 ‘‘(II) in an aggregate amount 

17 equal to or exceeding $6,000 during 

18 such period, if the disbursements 

19 made by the organization for all of 

20 the public independent expenditures 

21 which are covered by the report were 

22 made exclusively from the organiza23 tion’s Campaign-Related Activity Ac24 count under section 326 (but only if 

25 the organization has made deposits 


rfrederick on DSKD9S0YB1PROD with BILLS
39 

•S 3628 PCS

1 described in subparagraph (D) of sec2 tion 326(a)(2) into that Account dur3 ing such period in an aggregate 

4 amount equal to or greater than 

5 $10,000), 

6 presented in the order of the aggregate 

7 amount of payments made by such persons 

8 during such period (with the identification 

9 of the person making the largest payment 

10 appearing first). 

11 ‘‘(B) TREATMENT OF TRANSFERS MADE

12 TO OTHER PERSONS.— 

13 ‘‘(i) IN GENERAL.—Subject to clause 

14 (iii), for purposes of the requirement to file 

15 reports under this subsection (including 

16 the requirement under subparagraph (A) 

17 to include additional information in such 

18 reports), a covered organization which 

19 transfers amounts to another person (other 

20 than the covered organization itself) for 

21 the purpose of making a public inde22 pendent expenditure by that person or by 

23 any other person, or (in accordance with 

24 clause (ii)) which is deemed to have trans25 ferred amounts to another person (other 


rfrederick on DSKD9S0YB1PROD with BILLS
40 

•S 3628 PCS

1 than the covered organization itself) for 

2 the purpose of making a public inde3 pendent expenditure by that person or by 

4 any other person, shall be considered to 

5 have made a public independent expendi6 ture. 

7 ‘‘(ii) RULES FOR DEEMING TRANS8 FERS MADE FOR PURPOSE OF MAKING EX9 PENDITURES.—For purposes of clause (i), 

10 in determining whether a covered organiza11 tion which transfers amounts to another 

12 person shall be deemed to have transferred 

13 the amounts for the purpose of making a 

14 public independent expenditure, the fol15 lowing rules apply: 

16 ‘‘(I) The covered organization 

17 shall be deemed to have transferred 

18 the amounts for the purpose of mak19 ing a public independent expenditure 

20 if— 

21 ‘‘(aa) the covered organiza22 tion designates, requests, or sug23 gests that the amounts be used 

24 for public independent expendi25 tures and the person to whom 


rfrederick on DSKD9S0YB1PROD with BILLS
41 

•S 3628 PCS

1 the amounts were transferred 

2 agrees to do so; 

3 ‘‘(bb) the person making the 

4 public independent expenditure 

5 or another person acting on that 

6 person’s behalf expressly solicited 

7 the covered organization for a do8 nation or payment for making or 

9 paying for any public inde10 pendent expenditures; 

11 ‘‘(cc) the covered organiza12 tion and the person to whom the 

13 amounts were transferred en14 gaged in written or oral discus15 sion regarding the person either 

16 making, or paying for, any public 

17 independent expenditure, or do18 nating or transferring the 

19 amounts to another person for 

20 that purpose; 

21 ‘‘(dd) the covered organiza22 tion which transferred the funds 

23 knew or had reason to know that 

24 the person to whom the amounts 

25 were transferred intended to 


rfrederick on DSKD9S0YB1PROD with BILLS
42 

•S 3628 PCS

1 make public independent expendi2 tures; or 

3 ‘‘(ee) the covered organiza4 tion which transferred the funds 

5 or the person to whom the 

6 amounts were transferred made 

7 one or more public independent 

8 expenditures in an aggregate 

9 amount of $50,000 or more dur10 ing the 2-year period which ends 

11 on the date on which the 

12 amounts were transferred. 

13 ‘‘(II) The covered organization 

14 shall not be deemed to have trans15 ferred the amounts for the purpose of 

16 making a public independent expendi17 ture if— 

18 ‘‘(aa) the transfer was a 

19 commercial transaction occurring 

20 in the ordinary course of business 

21 between the covered organization 

22 and the person to whom the 

23 amounts were transferred, unless 

24 there is affirmative evidence that 

25 the amounts were transferred for 


rfrederick on DSKD9S0YB1PROD with BILLS
43 

•S 3628 PCS

1 the purpose of making a public 

2 independent expenditure; or 

3 ‘‘(bb) the covered organiza4 tion and the person to whom the 

5 amounts were transferred mutu6 ally agreed (as provided in sec7 tion 325(b)(1)) that the person 

8 will not use the amounts for cam9 paign-related activity. 

10 ‘‘(iii) SPECIAL RULE REGARDING

11 TRANSFERS AMONG AFFILIATES.— 

12 ‘‘(I) SPECIAL RULE.— 

13 ‘‘(aa) IN GENERAL.—Clause 

14 (i) and (ii) shall not apply in the 

15 case of an amount transferred by 

16 one covered organization to an17 other covered organization which 

18 is treated as a transfer between 

19 affiliates under subclause (II). 

20 ‘‘(bb) REPORTING BY

21 TRANSFEREE.—In the case of 

22 any such transfer or transfers be23 tween affiliates in an aggregate 

24 amount equal to or greater than 

25 $50,000 in a calendar year, any 


rfrederick on DSKD9S0YB1PROD with BILLS
44 

•S 3628 PCS

1 report filed under subparagraph 

2 (A) by the covered organization 

3 that receives the transferred 

4 funds shall include the informa5 tion required under that subpara6 graph relating to donations or 

7 payments made— 

8 ‘‘(AA) to the affiliate 

9 which transferred the funds 

10 where such donations or 

11 payments were made to the 

12 affiliate in the 12-month pe13 riod prior to the transfer, 

14 and 

15 ‘‘(BB) to any affiliate 

16 which transferred an aggre17 gate amount equal to or 

18 greater than $50,000 to any 

19 affiliate described in subitem 

20 (AA) in the 12-month period 

21 prior to the transfer. 

22 ‘‘(II) DESCRIPTION OF TRANS23 FERS BETWEEN AFFILIATES.—A 

24 transfer of amounts from one covered 

25 organization to another covered orgaVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
45 

•S 3628 PCS

1 nization shall be treated as a transfer 

2 between affiliates if— 

3 ‘‘(aa) one of the organiza4 tions is an affiliate of the other 

5 organization; or 

6 ‘‘(bb) each of the organiza7 tions is an affiliate of the same 

8 organization, 

9 except that the transfer shall not be 

10 treated as a transfer between affiliates 

11 if one of the organizations is estab12 lished for the purpose of disbursing 

13 funds for campaign-related activity. 

14 ‘‘(III) DETERMINATION OF AF15 FILIATE STATUS.—For purposes of 

16 subclause (II), the following covered 

17 organizations are considered to be af18 filiates of each other— 

19 ‘‘(aa) a membership organi20 zation (including trade or profes21 sional associations) and the re22 lated State and local entities of 

23 that organization or group; 

24 ‘‘(bb) a national or inter25 national labor organization and 


rfrederick on DSKD9S0YB1PROD with BILLS
46 

•S 3628 PCS

1 its local unions, or an organiza2 tion of national or international 

3 unions and its State and local 

4 central bodies. 

5 ‘‘(cc) a corporation and its 

6 wholly owned subsidiaries. 

7 ‘‘(IV) COVERAGE OF TRANSFERS

8 TO AFFILIATED SECTION 501(C)(3) OR9 GANIZATIONS.—This clause shall 

10 apply with respect to an amount 

11 transferred by a covered organization 

12 to an organization described in para13 graph (3) of section 501(c) of the In14 ternal Revenue Code of 1986 and ex15 empt from tax under section 501(a) of 

16 such Code in the same manner as this 

17 clause applies to an amount trans18 ferred by a covered organization to 

19 another covered organization. 

20 ‘‘(iv) SPECIAL THRESHOLD FOR DIS21 CLOSURE OF DONORS.—Notwithstanding 

22 clause (i) or (ii) of subparagraph (A), if a 

23 covered organization is required to include 

24 the identification of a person described in 

25 such clause in a report filed under this 


rfrederick on DSKD9S0YB1PROD with BILLS
47 

•S 3628 PCS

1 subsection because the covered organiza2 tion is deemed (in accordance with clause 

3 (ii)) to have transferred amounts for the 

4 purpose of making a public independent 

5 expenditure or because clause (iii)(I)(bb) 

6 applies to such covered organization, the 

7 organization shall include the identification 

8 of the person only if the person made do9 nations or payments (in the case of a per10 son described in clause (i)(I) of subpara11 graph (A)) or unrestricted donor payments 

12 (in the case of a person described in clause 

13 (ii) of subparagraph (A)) to the covered or14 ganization during the covered organization 

15 reporting period involved in an aggregate 

16 amount equal to or exceeding $10,000. 

17 ‘‘(C) EXCLUSION OF AMOUNTS DES18 IGNATED FOR OTHER CAMPAIGN-RELATED AC19 TIVITY.—For purposes of subparagraph (A)(i), 

20 in determining the amount of a donation or 

21 payment made by a person which was provided 

22 for the purpose of being used for campaign-re23 lated activity or in response to a solicitation for 

24 funds to be used for campaign-related activity, 


rfrederick on DSKD9S0YB1PROD with BILLS
48 

•S 3628 PCS

1 there shall be excluded any amount which was 

2 designated by the person to be used— 

3 ‘‘(i) for campaign-related activity de4 scribed in clause (i) of section 

5 325(d)(2)(A) (relating to independent ex6 penditures) with respect to a different elec7 tion, or with respect to a candidate in a 

8 different election, than an election which is 

9 the subject of any of the public inde10 pendent expenditures covered by the report 

11 involved; or 

12 ‘‘(ii) for any campaign-related activity 

13 described in clause (ii) of section 

14 325(d)(2)(A) (relating to electioneering 

15 communications). 

16 ‘‘(D) EXCLUSION OF AMOUNTS PAID FROM

17 SEPARATE SEGREGATED FUND.—In deter18 mining the amount of public independent ex19 penditures made by a covered organization for 

20 purposes of this paragraph, there shall be ex21 cluded any amounts paid from a separate seg22 regated fund established and administered by 

23 the organization under section 316(b)(2)(C). 

24 ‘‘(E) COVERED ORGANIZATION REPORTING

25 PERIOD DESCRIBED.—In this paragraph, the 


rfrederick on DSKD9S0YB1PROD with BILLS
49 

•S 3628 PCS

1 ‘covered organization reporting period’ is, with 

2 respect to a report filed by a covered organiza3 tion under this subsection— 

4 ‘‘(i) in the case of the first report filed 

5 by a covered organization under this sub6 section which includes information required 

7 under this paragraph, the shorter of— 

8 ‘‘(I) the period which begins on 

9 the effective date of the Democracy is 

10 Strengthened by Casting Light on 

11 Spending in Elections Act and ends 

12 on the last day covered by the report, 

13 or 

14 ‘‘(II) the 12-month period ending 

15 on the last day covered by the report; 

16 and 

17 ‘‘(ii) in the case of any subsequent re18 port filed by a covered organization under 

19 this subsection which includes information 

20 required under this paragraph, the period 

21 occurring since the most recent report filed 

22 by the organization which includes such in23 formation. 


rfrederick on DSKD9S0YB1PROD with BILLS
50 

•S 3628 PCS

1 ‘‘(F) COVERED ORGANIZATION DEFINED.— 

2 In this paragraph, the term ‘covered organiza3 tion’ means any of the following: 

4 ‘‘(i) Any corporation which is subject 

5 to section 316(a), other than a corporation 

6 which is an organization described in para7 graph (3) of section 501(c) of the Internal 

8 Revenue Code of 1986 and exempt from 

9 tax under section 501(a) of such Code. 

10 ‘‘(ii) Any labor organization (as de11 fined in section 316). 

12 ‘‘(iii) Any organization described in 

13 paragraph (4), (5), or (6) of section 501(c) 

14 of the Internal Revenue Code of 1986 and 

15 exempt from tax under section 501(a) of 

16 such Code, other than an exempt section 

17 501(c)(4) organization (as defined in sec18 tion 301(27)). 

19 ‘‘(iv) Any political organization under 

20 section 527 of the Internal Revenue Code 

21 of 1986, other than a political committee 

22 under this Act. 

23 ‘‘(G) OTHER DEFINITIONS.—In this para24 graph— 


rfrederick on DSKD9S0YB1PROD with BILLS
51 

•S 3628 PCS

1 ‘‘(i) the terms ‘campaign-related activ2 ity’ and ‘unrestricted donor payment’ have 

3 the meaning given such terms in section 

4 325; and 

5 ‘‘(ii) the term ‘public independent ex6 penditure’ means an independent expendi7 ture for a public communication (as de8 fined in section 301(22)).’’. 

9 (b) ELECTIONEERING COMMUNICATION REPORTS.— 

10 (1) IN GENERAL.—Section 304(f) of such Act 

11 (2 U.S.C. 434(f)) is amended— 

12 (A) by redesignating paragraphs (6) and 

13 (7) as paragraphs (7) and (8); and 

14 (B) by inserting after paragraph (5) the 

15 following new paragraph: 

16 ‘‘(6) DISCLOSURE OF ADDITIONAL INFORMA17 TION BY COVERED ORGANIZATIONS.— 

18 ‘‘(A) ADDITIONAL INFORMATION.—If a 

19 covered organization files a statement under 

20 this subsection, the statement shall include, in 

21 addition to the information required under 

22 paragraph (2), the following information (sub23 ject to subparagraph (B)(iv)): 

24 ‘‘(i) If any person made a donation or 

25 payment to the covered organization durVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
52 

•S 3628 PCS

1 ing the covered organization reporting pe2 riod which was provided for the purpose of 

3 being used for campaign-related activity or 

4 in response to a solicitation for funds to be 

5 used for campaign-related activity— 

6 ‘‘(I) subject to subparagraph (C), 

7 the identification of each person who 

8 made such donations or payments in 

9 an aggregate amount equal to or ex10 ceeding $1,000 during such period, 

11 presented in the order of the aggre12 gate amount of donations or payments 

13 made by such persons during such pe14 riod (with the identification of the 

15 person making the largest donation or 

16 payment appearing first); and 

17 ‘‘(II) if any person identified 

18 under subclause (I) designated that 

19 the donation or payment be used for 

20 campaign-related activity with respect 

21 to a specific election or in support of 

22 a specific candidate, the name of the 

23 election or candidate involved, and if 

24 any such person designated that the 

25 donation or payment be used for a 


rfrederick on DSKD9S0YB1PROD with BILLS
53 

•S 3628 PCS

1 specific electioneering communication, 

2 a description of the communication. 

3 ‘‘(ii) The identification of each person 

4 who made unrestricted donor payments to 

5 the organization during the covered organi6 zation reporting period— 

7 ‘‘(I) in an aggregate amount 

8 equal to or exceeding $1,000 during 

9 such period, if the organization made 

10 any of the disbursements which are 

11 described in subclause (II) from a 

12 source other than the organization’s 

13 Campaign-Related Activity Account 

14 under section 326; or 

15 ‘‘(II) in an aggregate amount 

16 equal to or exceeding $10,000 during 

17 such period, if the organization made 

18 from its Campaign-Related Activity 

19 Account under section 326 all of its 

20 disbursements for electioneering com21 munications during such period which 

22 are, on the basis of a reasonable belief 

23 by the organization, subject to treat24 ment as disbursements for an exempt 

25 function for purposes of section 527(f) 


rfrederick on DSKD9S0YB1PROD with BILLS
54 

•S 3628 PCS

1 of the Internal Revenue Code of 1986 

2 (but only if the organization has made 

3 deposits described in subparagraph 

4 (D) of section 326(a)(2) into that Ac5 count during such period in an aggre6 gate amount equal to or greater than 

7 $10,000), 

8 presented in the order of the aggregate 

9 amount of payments made by such persons 

10 during such period (with the identification 

11 of the person making the largest payment 

12 appearing first). 

13 ‘‘(B) TREATMENT OF TRANSFERS MADE

14 TO OTHER PERSONS.— 

15 ‘‘(i) IN GENERAL.—Subject to clause 

16 (iii), for purposes of the requirement to file 

17 statements under this subsection (including 

18 the requirement under subparagraph (A) 

19 to include additional information in such 

20 statements), a covered organization which 

21 transfers amounts to another person (other 

22 than the covered organization itself) for 

23 the purpose of making an electioneering 

24 communication by that person or by any 

25 other person, or (in accordance with clause 


rfrederick on DSKD9S0YB1PROD with BILLS
55 

•S 3628 PCS

1 (ii)) which is deemed to have transferred 

2 amounts to another person (other than the 

3 covered organization itself) for the purpose 

4 of making an electioneering communication 

5 by that person or by any other person, 

6 shall be considered to have made a dis7 bursement for an electioneering commu8 nication. 

9 ‘‘(ii) RULES FOR DEEMING TRANS10 FERS MADE FOR PURPOSE OF MAKING

11 COMMUNICATIONS.—For purposes of 

12 clause (i), in determining whether a cov13 ered organization which transfers amounts 

14 to another person shall be deemed to have 

15 transferred the amounts for the purpose of 

16 making an electioneering communication, 

17 the following rules apply: 

18 ‘‘(I) The covered organization 

19 shall be deemed to have transferred 

20 the amounts for the purpose of mak21 ing an electioneering communication 

22 if— 

23 ‘‘(aa) the covered organiza24 tion designates, requests, or sug25 gests that the amounts be used 


rfrederick on DSKD9S0YB1PROD with BILLS
56 

•S 3628 PCS

1 for electioneering communica2 tions and the person to whom the 

3 amounts were transferred agrees 

4 to do so; 

5 ‘‘(bb) the person making the 

6 electioneering communication or 

7 another person acting on that 

8 person’s behalf expressly solicited 

9 the covered organization for a do10 nation or payment for making or 

11 paying for any electioneering 

12 communications; 

13 ‘‘(cc) the covered organiza14 tion and the person to whom the 

15 amounts were transferred en16 gaged in written or oral discus17 sion regarding the person either 

18 making, or paying for, any elec19 tioneering communication, or do20 nating or transferring the 

21 amounts to another person for 

22 that purpose; 

23 ‘‘(dd) the covered organiza24 tion which transferred the funds 

25 knew or had reason to know that 


rfrederick on DSKD9S0YB1PROD with BILLS
57 

•S 3628 PCS

1 the person to whom the amounts 

2 were transferred intended to 

3 make electioneering communica4 tions; or 

5 ‘‘(ee) the covered organiza6 tion which transferred the funds 

7 or the person to whom the 

8 amounts were transferred made 

9 one or more electioneering com10 munications in an aggregate 

11 amount of $50,000 or more dur12 ing the 2-year period which ends 

13 on the date on which the 

14 amounts were transferred. 

15 ‘‘(II) The covered organization 

16 shall not be deemed to have trans17 ferred the amounts for the purpose of 

18 making an electioneering communica19 tion if— 

20 ‘‘(aa) the transfer was a 

21 commercial transaction occurring 

22 in the ordinary course of business 

23 between the covered organization 

24 and the person to whom the 

25 amounts were transferred, unless 


rfrederick on DSKD9S0YB1PROD with BILLS
58 

•S 3628 PCS

1 there is affirmative evidence that 

2 the amounts were transferred for 

3 the purpose of making an elec4 tioneering communication; or 

5 ‘‘(bb) the covered organiza6 tion and the person to whom the 

7 amounts were transferred mutu8 ally agreed (as provided in sec9 tion 325(b)(1)) that the person 

10 will not use the amounts for cam11 paign-related activity. 

12 ‘‘(iii) SPECIAL RULE REGARDING

13 TRANSFERS AMONG AFFILIATES.— 

14 ‘‘(I) SPECIAL RULE.— 

15 ‘‘(aa) IN GENERAL.—Clause 

16 (i) and (ii) shall not apply in the 

17 case of an amount transferred by 

18 one covered organization to an19 other covered organization which 

20 is treated as a transfer between 

21 affiliates under subclause (II). 

22 ‘‘(bb) REPORTING BY

23 TRANSFEREE.—In the case of 

24 any such transfer or transfers be25 tween affiliates in an aggregate 


rfrederick on DSKD9S0YB1PROD with BILLS
59 

•S 3628 PCS

1 amount equal to or greater than 

2 $50,000 in a calendar year, any 

3 report filed under subparagraph 

4 (A) by the covered organization 

5 that receives the transferred 

6 funds shall include the informa7 tion required under that subpara8 graph relating to donations or 

9 payments made— 

10 ‘‘(AA) to the affiliate 

11 which transferred the funds 

12 where such donations or 

13 payments were made to the 

14 affiliate in the 12-month pe15 riod prior to the transfer, 

16 and 

17 ‘‘(BB) to any affiliate 

18 which transferred an aggre19 gate amount equal to or 

20 greater than $50,000 to any 

21 affiliate described in subitem 

22 (AA) in the 12-month period 

23 prior to the transfer. 

24 ‘‘(II) DESCRIPTION OF TRANS25 FERS BETWEEN AFFILIATES.—A 


rfrederick on DSKD9S0YB1PROD with BILLS
60 

•S 3628 PCS

1 transfer of amounts from one covered 

2 organization to another covered orga3 nization shall be treated as a transfer 

4 between affiliates if— 

5 ‘‘(aa) one of the organiza6 tions is an affiliate of the other 

7 organization; or 

8 ‘‘(bb) each of the organiza9 tions is an affiliate of the same 

10 organization, 

11 except that the transfer shall not be 

12 treated as a transfer between affiliates 

13 if one of the organizations is estab14 lished for the purpose of disbursing 

15 funds for campaign-related activity. 

16 ‘‘(III) DETERMINATION OF AF17 FILIATE STATUS.—For purposes of 

18 subclause (II), the following covered 

19 organizations are considered to be af20 filiates of each other— 

21 ‘‘(aa) a membership organi22 zation (including trade or profes23 sional associations) and the re24 lated State and local entities of 

25 that organization or group; 


rfrederick on DSKD9S0YB1PROD with BILLS
61 

•S 3628 PCS

1 ‘‘(bb) a national or inter2 national labor organization and 

3 its local unions, or an organiza4 tion of national or international 

5 unions and its State and local 

6 central bodies. 

7 ‘‘(cc) a corporation and its 

8 wholly owned subsidiaries. 

9 ‘‘(IV) COVERAGE OF TRANSFERS

10 TO AFFILIATED SECTION 501(C)(3) OR11 GANIZATIONS.—This clause shall 

12 apply with respect to an amount 

13 transferred by a covered organization 

14 to an organization described in para15 graph (3) of section 501(c) of the In16 ternal Revenue Code of 1986 and ex17 empt from tax under section 501(a) of 

18 such Code in the same manner as this 

19 clause applies to an amount trans20 ferred by a covered organization to 

21 another covered organization. 

22 ‘‘(iv) SPECIAL THRESHOLD FOR DIS23 CLOSURE OF DONORS.—Notwithstanding 

24 clause (i) or (ii) of subparagraph (A), if a 

25 covered organization is required to include 


rfrederick on DSKD9S0YB1PROD with BILLS
62 

•S 3628 PCS

1 the identification of a person described in 

2 such clause in a statement filed under this 

3 subsection because the covered organiza4 tion is deemed (in accordance with clause 

5 (ii)) to have transferred amounts for the 

6 purpose of making an electioneering com7 munication, the organization shall include 

8 the identification of the person only if the 

9 person made donations or payments (in the 

10 case of a person described in clause (i)(I) 

11 of subparagraph (A)) or unrestricted donor 

12 payments (in the case of a person de13 scribed in clause (ii) of subparagraph (A)) 

14 to the covered organization during the cov15 ered organization reporting period involved 

16 in an aggregate amount equal to or exceed17 ing $10,000. 

18 ‘‘(C) EXCLUSION OF AMOUNTS DES19 IGNATED FOR OTHER CAMPAIGN-RELATED AC20 TIVITY.—For purposes of subparagraph (A)(i), 

21 in determining the amount of a donation or 

22 payment made by a person which was provided 

23 for the purpose of being used for campaign-re24 lated activity or in response to a solicitation for 

25 funds to be used for campaign-related activity, 


rfrederick on DSKD9S0YB1PROD with BILLS
63 

•S 3628 PCS

1 there shall be excluded any amount which was 

2 designated by the person to be used— 

3 ‘‘(i) for campaign-related activity de4 scribed in clause (i) of section 

5 325(d)(2)(A) (relating to independent ex6 penditures) with respect to a different elec7 tion, or with respect to a candidate in a 

8 different election, than an election which is 

9 the subject of any of the public inde10 pendent expenditures covered by the report 

11 involved; or 

12 ‘‘(ii) for any campaign-related activity 

13 described in clause (ii) of section 

14 325(d)(2)(A) (relating to electioneering 

15 communications). 

16 ‘‘(D) COVERED ORGANIZATION REPORTING

17 PERIOD DESCRIBED.—In this paragraph, the 

18 ‘covered organization reporting period’ is, with 

19 respect to a statement filed by a covered orga20 nization under this subsection— 

21 ‘‘(i) in the case of the first statement 

22 filed by a covered organization under this 

23 subsection which includes information re24 quired under this paragraph, the shorter 

25 of— 


rfrederick on DSKD9S0YB1PROD with BILLS
64 

•S 3628 PCS

1 ‘‘(I) the period which begins on 

2 the effective date of the Democracy is 

3 Strengthened by Casting Light on 

4 Spending in Elections Act and ends 

5 on the disclosure date for the state6 ment, or 

7 ‘‘(II) the 12-month period ending 

8 on the disclosure date for the state9 ment; and 

10 ‘‘(ii) in the case of any subsequent 

11 statement filed by a covered organization 

12 under this subsection which includes infor13 mation required under this paragraph, the 

14 period occurring since the most recent 

15 statement filed by the organization which 

16 includes such information. 

17 ‘‘(E) COVERED ORGANIZATION DE18 FINED.—In this paragraph, the term ‘covered 

19 organization’ means any of the following: 

20 ‘‘(i) Any corporation which is subject 

21 to section 316(a), other than a corporation 

22 which is an organization described in para23 graph (3) of section 501(c) of the Internal 

24 Revenue Code of 1986 and exempt from 

25 tax under section 501(a) of such Code. 


rfrederick on DSKD9S0YB1PROD with BILLS
65 

•S 3628 PCS

1 ‘‘(ii) Any labor organization (as de2 fined in section 316). 

3 ‘‘(iii) Any organization described in 

4 paragraph (4), (5), or (6) of section 501(c) 

5 of the Internal Revenue Code of 1986 and 

6 exempt from tax under section 501(a) of 

7 such Code, other than an exempt section 

8 501(c)(4) organization (as defined in sec9 tion 301(27)). 

10 ‘‘(iv) Any political organization under 

11 section 527 of the Internal Revenue Code 

12 of 1986, other than a political committee 

13 under this Act. 

14 ‘‘(F) OTHER DEFINITIONS.—In this para15 graph, the terms ‘campaign-related activity’ and 

16 ‘unrestricted donor payment’ have the meaning 

17 given such terms in section 325.’’. 

18 (2) CONFORMING AMENDMENT.—Section 

19 304(f)(2) of such Act (2 U.S.C. 434(f)(2)) is 

20 amended by striking ‘‘If the disbursements’’ each 

21 place it appears in subparagraph (E) and (F) and 

22 inserting the following: ‘‘Except in the case of a 

23 statement which is required to include additional in24 formation under paragraph (6), if the disburse25 ments’’. 


rfrederick on DSKD9S0YB1PROD with BILLS
66 

•S 3628 PCS

1 (c) EXEMPTION OF CERTAIN SECTION 501(C)(4) OR2 GANIZATIONS.—Section 301 of such Act (2 U.S.C. 431) 

3 is amended by adding at the end the following: 

4 ‘‘(27) EXEMPT SECTION 501(C)(4) ORGANIZA5 TION.—The term ‘exempt section 501(c)(4) organi6 zation’ means, with respect to disbursements made 

7 by an organization during a calendar year, an orga8 nization for which the chief executive officer of the 

9 organization certifies to the Commission (prior to 

10 the first disbursement made by the organization dur11 ing the year) that each of the following applies: 

12 ‘‘(A) The organization is described in para13 graph (4) of section 501(c) of the Internal Rev14 enue Code of 1986 and exempt from tax under 

15 section 501(a) of such Code, and was so de16 scribed and so exempt during each of the 10 

17 previous calendar years. 

18 ‘‘(B) The organization has at least 

19 500,000 individuals who paid membership dues 

20 during the previous calendar year (determined 

21 as of the last day of that year). 

22 ‘‘(C) The dues-paying membership of the 

23 organization includes at least one individual 

24 from each State. For purposes of this subpara25 graph, the term ‘State’ means each of the sevVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
67 

•S 3628 PCS

1 eral States, the District of Columbia, and the 

2 Commonwealth of Puerto Rico. 

3 ‘‘(D) During the previous calendar year, 

4 the portion of funds provided to the organiza5 tion by corporations (as described in section 

6 316) or labor organizations (as defined in sec7 tion 316), other than funds provided pursuant 

8 to commercial transactions occurring in the or9 dinary course of business, did not exceed 15 

10 percent of the total amount of all funds pro11 vided to the organization from all sources. 

12 ‘‘(E) The organization does not use any of 

13 the funds provided to the organization by cor14 porations (as described in section 316) or labor 

15 organizations (as defined in section 316) for 

16 campaign-related activity (as defined in section 

17 325).’’. 

18 SEC. 212. RULES REGARDING USE OF GENERAL TREASURY 

19 FUNDS BY COVERED ORGANIZATIONS FOR 

20 CAMPAIGN-RELATED ACTIVITY. 

21 Title III of the Federal Election Campaign Act of 

22 1971 (2 U.S.C. 431 et seq.) is amended by adding at the 

23 end the following new section: 


rfrederick on DSKD9S0YB1PROD with BILLS
68 

•S 3628 PCS

1 ‘‘SEC. 325. SPECIAL RULES FOR USE OF GENERAL TREAS2 URY FUNDS BY COVERED ORGANIZATIONS 

3 FOR CAMPAIGN-RELATED ACTIVITY. 

4 ‘‘(a) USE OF FUNDS FOR CAMPAIGN-RELATED AC5 TIVITY.— 

6 ‘‘(1) IN GENERAL.—Subject to any applicable 

7 restrictions and prohibitions under this Act, a cov8 ered organization may make disbursements for cam9 paign-related activity using— 

10 ‘‘(A) amounts paid or donated to the orga11 nization which are designated by the person 

12 providing the amounts to be used for campaign13 related activity; 

14 ‘‘(B) unrestricted donor payments made to 

15 the organization; and 

16 ‘‘(C) other funds of the organization, in17 cluding amounts received pursuant to commer18 cial activities in the regular course of a covered 

19 organization’s business. 

20 ‘‘(2) NO EFFECT ON USE OF SEPARATE SEG21 REGATED FUND.—Nothing in this section shall be 

22 construed to affect the authority of a covered organi23 zation to make disbursements from a separate seg24 regated fund established and administered by the or25 ganization under section 316(b)(2)(C). 


rfrederick on DSKD9S0YB1PROD with BILLS
69 

•S 3628 PCS

1 ‘‘(b) MUTUALLY AGREED RESTRICTIONS ON USE OF

2 FUNDS FOR CAMPAIGN-RELATED ACTIVITY.— 

3 ‘‘(1) AGREEMENT AND CERTIFICATION.—If a 

4 covered organization and a person mutually agree, 

5 at the time the person makes a donation, payment, 

6 or transfer to the organization which would require 

7 the organization to disclose the person’s identifica8 tion under section 304(g)(5)(A)(ii) or section 

9 304(f)(6)(A)(ii), that the organization will not use 

10 the donation, payment, or transfer for campaign-re11 lated activity, then not later than 30 days after the 

12 organization receives the donation, payment, or 

13 transfer the organization shall transmit to the per14 son a written certification by the chief financial offi15 cer of the covered organization (or, if the organiza16 tion does not have a chief financial officer, the high17 est ranking financial official of the organization) 

18 that— 

19 ‘‘(A) the organization will not use the do20 nation, payment, or transfer for campaign-re21 lated activity; and 

22 ‘‘(B) the organization will not include any 

23 information on the person in any report filed by 

24 the organization under section 304 with respect 

25 to independent expenditures or electioneering 


rfrederick on DSKD9S0YB1PROD with BILLS
70 

•S 3628 PCS

1 communications, so that the person will not be 

2 required to appear in a significant funder state3 ment or a Top 5 Funders list under section 

4 318(e). 

5 ‘‘(2) EXCEPTION FOR PAYMENTS MADE PURSU6 ANT TO COMMERCIAL ACTIVITIES.—Paragraph (1) 

7 does not apply with respect to any payment or trans8 fer made pursuant to commercial activities in the 

9 regular course of a covered organization’s business. 

10 ‘‘(c) CERTIFICATIONS REGARDING DISBURSEMENTS

11 FOR CAMPAIGN-RELATED ACTIVITY.— 

12 ‘‘(1) CERTIFICATION BY CHIEF EXECUTIVE OF13 FICER.—If, at any time during a calendar quarter, 

14 a covered organization makes a disbursement of 

15 funds for campaign-related activity using funds de16 scribed in subsection (a)(1), the chief executive offi17 cer of the covered organization or the chief executive 

18 officer’s designee (or, if the organization does not 

19 have a chief executive officer, the highest ranking of20 ficial of the organization or the highest ranking offi21 cial’s designee) shall file a statement with the Com22 mission which contains the following certifications: 

23 ‘‘(A) None of the campaign-related activity 

24 for which the organization disbursed the funds 

25 during the quarter was made in cooperation, 


rfrederick on DSKD9S0YB1PROD with BILLS
71 

•S 3628 PCS

1 consultation, or concert with, or at the request 

2 or suggestion of, any candidate or any author3 ized committee or agent of such candidate, or 

4 political committee of a political party or agent 

5 of any political party. 

6 ‘‘(B) The chief executive officer or highest 

7 ranking official of the covered organization (as 

8 the case may be) has reviewed and approved 

9 each statement and report filed by the organi10 zation under section 304 with respect to any 

11 such disbursement made during the quarter. 

12 ‘‘(C) Each statement and report filed by 

13 the organization under section 304 with respect 

14 to any such disbursement made during the 

15 quarter is complete and accurate. 

16 ‘‘(D) All such disbursements made during 

17 the quarter are in compliance with this Act. 

18 ‘‘(E) No portion of the amounts used to 

19 make any such disbursements during the quar20 ter is attributable to funds received by the orga21 nization that were subject to a mutual agree22 ment (as provided in subsection (b)(1)) that the 

23 organization will not use the funds for cam24 paign-related activity by the person who proVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
72 

•S 3628 PCS

1 vided the funds from being used for campaign2 related activity pursuant to subsection (b). 

3 ‘‘(2) APPLICATION OF ELECTRONIC FILING

4 RULES.—Section 304(d)(1) shall apply with respect 

5 to a statement required under this subsection in the 

6 same manner as such section applies with respect to 

7 a statement under subsection (c) or (g) of section 

8 304. 

9 ‘‘(3) DEADLINE.—The chief executive officer or 

10 highest ranking official of a covered organization (as 

11 the case may be) shall file the statement required 

12 under this subsection with respect to a calendar 

13 quarter not later than 15 days after the end of the 

14 quarter. 

15 ‘‘(d) DEFINITIONS.—For purposes of this section, the 

16 following definitions apply: 

17 ‘‘(1) COVERED ORGANIZATION.—The term ‘cov18 ered organization’ means any of the following: 

19 ‘‘(A) Any corporation which is subject to 

20 section 316(a), other than a corporation which 

21 is an organization described in paragraph (3) of 

22 section 501(c) of the Internal Revenue Code of 

23 1986 and exempt from tax under section 501(a) 

24 of such Code. 


rfrederick on DSKD9S0YB1PROD with BILLS
73 

•S 3628 PCS

1 ‘‘(B) Any labor organization (as defined in 

2 section 316). 

3 ‘‘(C) Any organization described in para4 graph (4), (5), or (6) of section 501(c) of the 

5 Internal Revenue Code of 1986 and exempt 

6 from tax under section 501(a) of such Code, 

7 other than an exempt section 501(c)(4) organi8 zation (as defined in section 301(27)). 

9 ‘‘(D) Any political organization under sec10 tion 527 of the Internal Revenue Code of 1986, 

11 other than a political committee under this Act. 

12 ‘‘(2) CAMPAIGN-RELATED ACTIVITY.— 

13 ‘‘(A) IN GENERAL.—The term ‘campaign14 related activity’ means— 

15 ‘‘(i) an independent expenditure con16 sisting of a public communication (as de17 fined in section 301(22)), a transfer of 

18 funds to another person (other than the 

19 transferor itself) for the purpose of making 

20 such an independent expenditure by that 

21 person or by any other person (subject to 

22 subparagraph (C)), or (in accordance with 

23 subparagraph (B) and subject to subpara24 graph (C)) a transfer of funds to another 

25 person (other than the transferor itself) 


rfrederick on DSKD9S0YB1PROD with BILLS
74 

•S 3628 PCS

1 which is deemed to have been made for the 

2 purpose of making such an independent ex3 penditure by that person or by any other 

4 person; or 

5 ‘‘(ii) an electioneering communication, 

6 a transfer of funds to another person 

7 (other than the transferor itself) for the 

8 purpose of making an electioneering com9 munication by that person or by any other 

10 person (subject to subparagraph (C)), or 

11 (in accordance with subparagraph (B) and 

12 subject to subparagraph (C)) a transfer of 

13 funds to another person (other than the 

14 transferor itself) which is deemed to have 

15 been made for the purpose of making an 

16 electioneering communication by that per17 son or by any other person. 

18 ‘‘(B) RULE FOR DEEMING TRANSFERS

19 MADE FOR PURPOSE OF CAMPAIGN-RELATED

20 ACTIVITY.—For purposes of subparagraph (A), 

21 in determining whether a transfer of funds by 

22 a covered organization to another person shall 

23 be deemed to have been made for the purpose 

24 of making an independent expenditure con25 sisting of a public communication or an elecVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
75 

•S 3628 PCS

1 tioneering communication, the following rules 

2 apply: 

3 ‘‘(i) The transfer shall be deemed to 

4 have been made for the purpose of making 

5 such an independent expenditure or an 

6 electioneering communication if— 

7 ‘‘(I) the covered organization des8 ignates, requests, or suggests that the 

9 amounts be used for such independent 

10 expenditures or electioneering commu11 nications and the person to whom the 

12 amounts were transferred agrees to do 

13 so; 

14 ‘‘(II) the person making such 

15 independent expenditures or election16 eering communications or another 

17 person acting on that person’s behalf 

18 expressly solicited the covered organi19 zation for a donation or payment for 

20 making or paying for any such inde21 pendent expenditure or electioneering 

22 communication; 

23 ‘‘(III) the covered organization 

24 and the person to whom the amounts 

25 were transferred engaged in written or 


rfrederick on DSKD9S0YB1PROD with BILLS
76 

•S 3628 PCS

1 oral discussion regarding the person 

2 either making, or paying for, such 

3 independent expenditures or election4 eering communications, or donating or 

5 transferring the amounts to another 

6 person for that purpose; 

7 ‘‘(IV) the covered organization 

8 which transferred the funds knew or 

9 had reason to know that the person to 

10 whom the amounts were transferred 

11 intended to make such independent 

12 expenditures or electioneering commu13 nications; or 

14 ‘‘(V) the covered organization 

15 which transferred the funds or the 

16 person to whom the amounts were 

17 transferred made one or more such 

18 independent expenditures or election19 eering communications in an aggre20 gate amount of $50,000 or more dur21 ing the 2-year period which ends on 

22 the date on which the amounts were 

23 transferred. 

24 ‘‘(ii) The transfer shall not be deemed 

25 to have been made for the purpose of makVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
77 

•S 3628 PCS

1 ing such an independent expenditure or an 

2 electioneering communication if— 

3 ‘‘(I) the transfer was a commer4 cial transaction occurring in the ordi5 nary course of business between the 

6 covered organization and the person 

7 to whom the amounts were trans8 ferred, unless there is affirmative evi9 dence that the amounts were trans10 ferred for the purpose of making such 

11 an independent expenditure or elec12 tioneering communication; or 

13 ‘‘(II) the covered organization 

14 and the person to whom the amounts 

15 were transferred mutually agreed (as 

16 provided in subsection (b)(1)) that the 

17 person will not use the amounts for 

18 campaign-related activity. 

19 ‘‘(C) SPECIAL RULE REGARDING TRANS20 FERS AMONG AFFILIATES.— 

21 ‘‘(i) SPECIAL RULE.— 

22 ‘‘(I) IN GENERAL.—Subpara23 graph (A) and (B) shall not apply in 

24 the case of an amount transferred by 

25 one covered organization to another 


rfrederick on DSKD9S0YB1PROD with BILLS
78 

•S 3628 PCS

1 covered organization which is treated 

2 as a transfer between affiliates under 

3 clause (ii). 

4 ‘‘(II) REPORTING BY TRANS5 FEREE.—In the case of any such 

6 transfer or transfers between affiliates 

7 in an aggregate amount equal to or 

8 greater than $50,000 in a calendar 

9 year, any report filed under subpara10 graph (A) by the covered organization 

11 that receives the transferred funds 

12 shall include the information required 

13 under that subparagraph relating to 

14 donations or payments made— 

15 ‘‘(aa) to the affiliate which 

16 transferred the funds where such 

17 donations or payments were 

18 made to the affiliate in the 12- 

19 month period prior to the trans20 fer, and 

21 ‘‘(bb) to any affiliate which 

22 transferred an aggregate amount 

23 equal to or greater than $50,000 

24 to any affiliate described in item 


rfrederick on DSKD9S0YB1PROD with BILLS
79 

•S 3628 PCS

1 (aa) in the 12-month period prior 

2 to the transfer. 

3 ‘‘(ii) DESCRIPTION OF TRANSFERS

4 BETWEEN AFFILIATES.—A transfer of 

5 amounts from one covered organization to 

6 another covered organization shall be 

7 treated as a transfer between affiliates if— 

8 ‘‘(I) one of the organizations is 

9 an affiliate of the other organization; 

10 or 

11 ‘‘(II) each of the organizations is 

12 an affiliate of the same organization, 

13 except that the transfer shall not be treat14 ed as a transfer between affiliates if one of 

15 the organizations is established for the 

16 purpose of disbursing funds for campaign17 related activity. 

18 ‘‘(iii) DETERMINATION OF AFFILIATE

19 STATUS.—For purposes of clause (ii), the 

20 following covered organizations are consid21 ered to be affiliates of each other— 

22 ‘‘(I) a membership organization 

23 (including trade or professional asso24 ciations) and the related State and 


rfrederick on DSKD9S0YB1PROD with BILLS
80 

•S 3628 PCS

1 local entities of that organization or 

2 group; 

3 ‘‘(II) a national or international 

4 labor organization and its local 

5 unions, or an organization of national 

6 or international unions and its State 

7 and local central bodies. 

8 ‘‘(III) a corporation and its whol9 ly owned subsidiaries. 

10 ‘‘(iv) COVERAGE OF TRANSFERS TO

11 AFFILIATED SECTION 501(C)(3) ORGANIZA12 TIONS.—This subparagraph shall apply 

13 with respect to an amount transferred by 

14 a covered organization to an organization 

15 described in paragraph (3) of section 

16 501(c) of the Internal Revenue Code of 

17 1986 and exempt from tax under section 

18 501(a) of such Code in the same manner 

19 as this subparagraph applies to an amount 

20 transferred by a covered organization to 

21 another covered organization. 

22 ‘‘(3) UNRESTRICTED DONOR PAYMENT.—The 

23 term ‘unrestricted donor payment’ means a payment 

24 to a covered organization which consists of a dona25 tion or payment from a person other than the covVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
81 

•S 3628 PCS

1 ered organization, except that such term does not in2 clude— 

3 ‘‘(A) any payment made pursuant to com4 mercial activities in the regular course of a cov5 ered organization’s business; or 

6 ‘‘(B) any donation or payment which is 

7 designated by the person making the donation 

8 or payment to be used for campaign-related ac9 tivity or made in response to a solicitation for 

10 funds to be used for campaign-related activ11 ity.’’. 

12 SEC. 213. OPTIONAL USE OF SEPARATE ACCOUNT BY COV13 ERED ORGANIZATIONS FOR CAMPAIGN-RE14 LATED ACTIVITY. 

15 (a) IN GENERAL.—Title III of the Federal Election 

16 Campaign Act of 1971 (2 U.S.C. 431 et seq.), as amended 

17 by section 212, is further amended by adding at the end 

18 the following new section: 

19 ‘‘SEC. 326. OPTIONAL USE OF SEPARATE ACCOUNT BY COV20 ERED ORGANIZATIONS FOR CAMPAIGN-RE21 LATED ACTIVITY. 

22 ‘‘(a) OPTIONAL USE OF SEPARATE ACCOUNT.— 

23 ‘‘(1) ESTABLISHMENT OF ACCOUNT.— 

24 ‘‘(A) IN GENERAL.—At its option, a cov25 ered organization may make disbursements for 


rfrederick on DSKD9S0YB1PROD with BILLS
82 

•S 3628 PCS

1 campaign-related activity using amounts from a 

2 bank account established and controlled by the 

3 organization to be known as the Campaign-Re4 lated Activity Account (hereafter in this section 

5 referred to as the ‘Account’), which shall be 

6 maintained separately from all other accounts 

7 of the organization and which shall consist ex8 clusively of the deposits described in paragraph 

9 (2). 

10 ‘‘(B) MANDATORY USE OF ACCOUNT

11 AFTER ESTABLISHMENT.—If a covered organi12 zation establishes an Account under this sec13 tion, it may not make disbursements for cam14 paign-related activity from any source other 

15 than amounts from the Account, other than dis16 bursements for campaign-related activity which, 

17 on the basis of a reasonable belief by the orga18 nization, would not be treated as disbursements 

19 for an exempt function for purposes of section 

20 527(f) of the Internal Revenue Code of 1986. 

21 ‘‘(C) EXCLUSIVE USE OF ACCOUNT FOR

22 CAMPAIGN-RELATED ACTIVITY.—Amounts in 

23 the Account shall be used exclusively for dis24 bursements by the covered organization for 

25 campaign-related activity. After such disburseVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
83 

•S 3628 PCS

1 ments are made, information with respect to de2 posits made to the Account shall be disclosed in 

3 accordance with section 304(g)(5) or section 

4 304(f)(6). 

5 ‘‘(2) DEPOSITS DESCRIBED.—The deposits de6 scribed in this paragraph are deposits of the fol7 lowing amounts: 

8 ‘‘(A) Amounts donated or paid to the cov9 ered organization by a person other than the 

10 organization for the purpose of being used for 

11 campaign-related activity, and for which the 

12 person providing the amounts has designated 

13 that the amounts be used for campaign-related 

14 activity with respect to a specific election or 

15 specific candidate. 

16 ‘‘(B) Amounts donated or paid to the cov17 ered organization by a person other than the 

18 organization for the purpose of being used for 

19 campaign-related activity, and for which the 

20 person providing the amounts has not des21 ignated that the amounts be used for campaign22 related activity with respect to a specific elec23 tion or specific candidate. 

24 ‘‘(C) Amounts donated or paid to the cov25 ered organization by a person other than the 


rfrederick on DSKD9S0YB1PROD with BILLS
84 

•S 3628 PCS

1 organization in response to a solicitation for 

2 funds to be used for campaign-related activity. 

3 ‘‘(D) Amounts transferred to the Account 

4 by the covered organization from other accounts 

5 of the organization, including from the organi6 zation’s general treasury funds. 

7 ‘‘(3) NO TREATMENT AS POLITICAL COM8 MITTEE.—The establishment and administration of 

9 an Account in accordance with this subsection shall 

10 not by itself be treated as the establishment or ad11 ministration of a political committee for any purpose 

12 of this Act. 

13 ‘‘(b) REDUCTION IN AMOUNTS OTHERWISE AVAIL14 ABLE FOR ACCOUNT IN RESPONSE TO DEMAND OF GEN15 ERAL DONORS.— 

16 ‘‘(1) IN GENERAL.—If a covered organization 

17 which has established an Account obtains any reve18 nues during a year which are attributable to a dona19 tion or payment from a person other than the cov20 ered organization, and if the organization and any 

21 such person have mutually agreed (as provided in 

22 section 325(b)(1)) that the organization will not use 

23 the person’s donation, payment, or transfer for cam24 paign-related activity, the organization shall reduce 

25 the amount of its revenues available for deposits to 


rfrederick on DSKD9S0YB1PROD with BILLS
85 

•S 3628 PCS

1 the Account which are described in subsection 

2 (a)(3)(D) during the year by the amount of the do3 nation or payment which is subject to the mutual 

4 agreement. 

5 ‘‘(2) EXCEPTION.—Paragraph (1) does not 

6 apply with respect to any payment made pursuant to 

7 commercial activities in the regular course of a cov8 ered organization’s business. 

9 ‘‘(c) COVERED ORGANIZATION DEFINED.—In this 

10 section, the term ‘covered organization’ means any of the 

11 following: 

12 ‘‘(1) Any corporation which is subject to section 

13 316(a), other than a corporation which is an organi14 zation described in paragraph (3) of section 501(c) 

15 of the Internal Revenue Code of 1986 and exempt 

16 from tax under section 501(a) of such Code. 

17 ‘‘(2) Any labor organization (as defined in sec18 tion 316). 

19 ‘‘(3) Any organization described in paragraph 

20 (4), (5), or (6) of section 501(c) of the Internal Rev21 enue Code of 1986 and exempt from tax under sec22 tion 501(a) of such Code, other than an exempt sec23 tion 501(c)(4) organization (as defined in section 

24 301(27)). 


rfrederick on DSKD9S0YB1PROD with BILLS
86 

•S 3628 PCS

1 ‘‘(4) Any political organization under section 

2 527 of the Internal Revenue Code of 1986, other 

3 than a political committee under this Act. 

4 ‘‘(d) CAMPAIGN-RELATED ACTIVITY DEFINED.—In 

5 this section, the term ‘campaign-related activity’ has the 

6 meaning given such term in section 325.’’. 

7 (b) CLARIFICATION OF TREATMENT AS SEPARATE

8 SEGREGATED FUND.—A Campaign-Related Activity Ac9 count (within the meaning of section 326 of the Federal 

10 Election Campaign Act of 1971, as added by subsection 

11 (a)) may be treated as a separate segregated fund for pur12 poses of section 527(f)(3) of the Internal Revenue Code 

13 of 1986. 

14 SEC. 214. MODIFICATION OF RULES RELATING TO DIS15 CLAIMER STATEMENTS REQUIRED FOR CER16 TAIN COMMUNICATIONS. 

17 (a) APPLYING REQUIREMENTS TO ALL INDE18 PENDENT EXPENDITURE COMMUNICATIONS.—Section 

19 318(a) of the Federal Election Campaign Act of 1971 (2 

20 U.S.C. 441d(a)) is amended by striking ‘‘for the purpose 

21 of financing communications expressly advocating the 

22 election or defeat of a clearly identified candidate’’ and 

23 inserting ‘‘for an independent expenditure consisting of a 

24 public communication’’. 

25 (b) STAND BY YOUR AD REQUIREMENTS.— 


rfrederick on DSKD9S0YB1PROD with BILLS
87 

•S 3628 PCS

1 (1) MAINTENANCE OF EXISTING REQUIRE2 MENTS FOR COMMUNICATIONS BY POLITICAL PAR3 TIES AND OTHER POLITICAL COMMITTEES.—Section 

4 318(d)(2) of such Act (2 U.S.C. 441d(d)(2)) is 

5 amended— 

6 (A) in the heading, by striking ‘‘OTHERS’’ 

7 and inserting ‘‘POLITICAL COMMITTEES’’; 

8 (B) by striking ‘‘subsection (a)’’ and in9 serting ‘‘subsection (a) which is paid for by a 

10 political committee (including a political com11 mittee of a political party), other than a polit12 ical committee which is described in subsection 

13 (e)(7)(B),’’; and 

14 (C) by striking ‘‘or other person’’ each 

15 place it appears. 

16 (2) SPECIAL DISCLAIMER REQUIREMENTS FOR

17 CERTAIN COMMUNICATIONS.—Section 318 of such 

18 Act (2 U.S.C. 441d) is amended by adding at the 

19 end the following new subsection: 

20 ‘‘(e) COMMUNICATIONS BY OTHERS.— 

21 ‘‘(1) IN GENERAL.—Any communication de22 scribed in paragraph (3) of subsection (a) which is 

23 transmitted through radio or television (other than 

24 a communication to which subsection (d)(2) applies 

25 because the communication is paid for by a political 


rfrederick on DSKD9S0YB1PROD with BILLS
88 

•S 3628 PCS

1 committee, including a political committee of a polit2 ical party) shall include, in addition to the require3 ments of that paragraph, the following: 

4 ‘‘(A) The individual disclosure statement 

5 described in paragraph (2) (if the person pay6 ing for the communication is an individual) or 

7 the organizational disclosure statement de8 scribed in paragraph (3) (if the person paying 

9 for the communication is not an individual). 

10 ‘‘(B) If the communication is an election11 eering communication or an independent ex12 penditure consisting of a public communication 

13 and is paid for in whole or in part with a pay14 ment which is treated as a disbursement by a 

15 covered organization for campaign-related activ16 ity under section 325, the significant funder 

17 disclosure statement described in paragraph (4) 

18 (if applicable), unless, on the basis of criteria 

19 established in regulations promulgated by the 

20 Commission, the communication is of such 

21 short duration that including the statement in 

22 the communication would constitute a hardship 

23 to the person paying for the communication by 

24 requiring a disproportionate amount of the 


rfrederick on DSKD9S0YB1PROD with BILLS
89 

•S 3628 PCS

1 communication’s content to consist of the state2 ment. 

3 ‘‘(C) If the communication is an election4 eering communication or an independent ex5 penditure consisting of a public communication 

6 and is paid for in whole or in part with a pay7 ment which is treated as a disbursement by a 

8 covered organization for campaign-related activ9 ity under section 325, the Top Five Funders 

10 list described in paragraph (5) (if applicable), 

11 unless, on the basis of criteria established in 

12 regulations promulgated by the Commission, 

13 the communication is of such short duration 

14 that including the Top Five Funders list in the 

15 communication would constitute a hardship to 

16 the person paying for the communication by re17 quiring a disproportionate amount of the com18 munication’s content to consist of the Top Five 

19 Funders list. 

20 ‘‘(2) INDIVIDUAL DISCLOSURE STATEMENT DE21 SCRIBED.—The individual disclosure statement de22 scribed in this paragraph is the following: ‘I am 

23 lllllll, and I approve this message.’, with 

24 the blank filled in with the name of the applicable 

25 individual. 


rfrederick on DSKD9S0YB1PROD with BILLS
90 

•S 3628 PCS

1 ‘‘(3) ORGANIZATIONAL DISCLOSURE STATE2 MENT DESCRIBED.—The organizational disclosure 

3 statement described in this paragraph is the fol4 lowing: ‘I am lllllll, the lllllll 

5 of lllllll, and lllllll approves 

6 this message.’, with— 

7 ‘‘(A) the first blank to be filled in with the 

8 name of the applicable individual; 

9 ‘‘(B) the second blank to be filled in with 

10 the title of the applicable individual; and 

11 ‘‘(C) the third and fourth blank each to be 

12 filled in with the name of the organization or 

13 other person paying for the communication. 

14 ‘‘(4) SIGNIFICANT FUNDER DISCLOSURE STATE15 MENT DESCRIBED.— 

16 ‘‘(A) STATEMENT IF SIGNIFICANT FUNDER

17 IS AN INDIVIDUAL.—If the significant funder of 

18 a communication paid for in whole or in part 

19 with a payment which is treated as a disburse20 ment by a covered organization for campaign21 related activity under section 325 is an indi22 vidual, the significant funder disclosure state23 ment described in this paragraph is the fol24 lowing: ‘I am lllllll. I helped to pay 

25 for this message, and I approve it.’, with the 


rfrederick on DSKD9S0YB1PROD with BILLS
91 

•S 3628 PCS

1 blank filled in with the name of the applicable 

2 individual. 

3 ‘‘(B) STATEMENT IF SIGNIFICANT FUNDER

4 IS NOT AN INDIVIDUAL.—If the significant 

5 funder of a communication paid for in whole or 

6 in part with a payment which is treated as a 

7 disbursement by a covered organization for 

8 campaign-related activity under section 325 is 

9 not an individual, the significant funder disclo10 sure statement described in this paragraph is 

11 the following: ‘I am lllllll, the 

12 lllllll of lllllll. 

13 lllllll helped to pay for this mes14 sage, and lllllll approves it.’, with— 

15 ‘‘(i) the first blank to be filled in with 

16 the name of the applicable individual; 

17 ‘‘(ii) the second blank to be filled in 

18 with the title of the applicable individual; 

19 and 

20 ‘‘(iii) the third, fourth, and fifth blank 

21 each to be filled in with the name of the 

22 significant funder of the communication. 

23 ‘‘(C) SIGNIFICANT FUNDER DEFINED.— 

24 ‘‘(i) INDEPENDENT EXPENDITURES.— 

25 For purposes of this paragraph, the ‘sigVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
92 

•S 3628 PCS

1 nificant funder’ with respect to an inde2 pendent expenditure consisting of a public 

3 communication paid for in whole or in part 

4 with a payment which is treated as a dis5 bursement by a covered organization for 

6 campaign-related activity under section 

7 325 shall be determined as follows: 

8 ‘‘(I) If any report filed by any or9 ganization with respect to the inde10 pendent expenditure under section 

11 304 during the 12-month period 

12 which ends on the date of the dis13 bursement includes information on 

14 any person who made a payment to 

15 the organization in an amount equal 

16 to or exceeding $100,000 which was 

17 designated by the person to be used 

18 for campaign-related activity con19 sisting of that specific independent ex20 penditure (as required to be included 

21 in the report under section 

22 304(g)(5)(A)(i)), the person who is 

23 identified among all such reports as 

24 making the largest such payment. 


rfrederick on DSKD9S0YB1PROD with BILLS
93 

•S 3628 PCS

1 ‘‘(II) If any report filed by any 

2 organization with respect to the inde3 pendent expenditure under section 

4 304 during the 12-month period 

5 which ends on the date of the dis6 bursement includes information on 

7 any person who made a payment to 

8 the organization in an amount equal 

9 to or exceeding $100,000 which was 

10 designated by the person to be used 

11 for campaign-related activity with re12 spect to the same election or in sup13 port of the same candidate (as re14 quired to be included in the report 

15 under section 304(g)(5)(A)(i)) but 

16 subclause (I) does not apply, the per17 son who is identified among all such 

18 reports as making the largest such 

19 payment. 

20 ‘‘(III) If any report filed by any 

21 organization with respect to the inde22 pendent expenditure under section 

23 304 during the 12-month period 

24 which ends on the date of the dis25 bursement includes information on 


rfrederick on DSKD9S0YB1PROD with BILLS
94 

•S 3628 PCS

1 any person who made a payment to 

2 the organization in an amount equal 

3 to or exceeding $10,000 which was 

4 provided for the purpose of being used 

5 for campaign-related activity or in re6 sponse to a solicitation for funds to be 

7 used for campaign-related activity (as 

8 required to be included in the report 

9 under section 304(g)(5)(A)(i)) but 

10 subclause (I) or subclause (II) does 

11 not apply, the person who is identified 

12 among all such reports as making the 

13 largest such payment. 

14 ‘‘(IV) If none of the reports filed 

15 by any organization with respect to 

16 the independent expenditure under 

17 section 304 during the 12-month pe18 riod which ends on the date of the dis19 bursement includes information on 

20 any person (other than the organiza21 tion) who made a payment to the or22 ganization in an amount equal to or 

23 exceeding $10,000 which was provided 

24 for the purpose of being used for cam25 paign-related activity or in response to 


rfrederick on DSKD9S0YB1PROD with BILLS
95 

•S 3628 PCS

1 a solicitation for funds to be used for 

2 campaign-related activity, but any of 

3 such reports includes information on 

4 any person who made an unrestricted 

5 donor payment to the organization (as 

6 required to be included in the report 

7 under section 304(g)(5)(A)(ii)) in an 

8 amount equal to or exceeding 

9 $10,000, the person who is identified 

10 among all such reports as making the 

11 largest such unrestricted donor pay12 ment. 

13 ‘‘(ii) ELECTIONEERING COMMUNICA14 TIONS.—For purposes of this paragraph, 

15 the ‘significant funder’ with respect to an 

16 electioneering communication paid for in 

17 whole or in part with a payment which is 

18 treated as a disbursement by a covered or19 ganization for campaign-related activity 

20 under section 325, shall be determined as 

21 follows: 

22 ‘‘(I) If any report filed by any or23 ganization with respect to the elec24 tioneering communication under sec25 tion 304 during the 12-month period 


rfrederick on DSKD9S0YB1PROD with BILLS
96 

•S 3628 PCS

1 which ends on the date of the dis2 bursement includes information on 

3 any person who made a payment to 

4 the organization in an amount equal 

5 to or exceeding $100,000 which was 

6 designated by the person to be used 

7 for campaign-related activity con8 sisting of that specific electioneering 

9 communication (as required to be in10 cluded in the report under section 

11 304(f)(6)(A)(i)), the person who is 

12 identified among all such reports as 

13 making the largest such payment. 

14 ‘‘(II) If any report filed by any 

15 organization with respect to the elec16 tioneering communication under sec17 tion 304 during the 12-month period 

18 which ends on the date of the dis19 bursement includes information on 

20 any person who made a payment to 

21 the organization in an amount equal 

22 to or exceeding $100,000 which was 

23 designated by the person to be used 

24 for campaign-related activity with re25 spect to the same election or in supVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
97 

•S 3628 PCS

1 port of the same candidate (as re2 quired to be included in the report 

3 under section 304(f)(6)(A)(i)) but 

4 subclause (I) does not apply, the per5 son who is identified among all such 

6 reports as making the largest such 

7 payment. 

8 ‘‘(III) If any report filed by any 

9 organization with respect to the elec10 tioneering communication under sec11 tion 304 during the 12-month period 

12 which ends on the date of the dis13 bursement includes information on 

14 any person who made a payment to 

15 the organization in an amount equal 

16 to or exceeding $10,000 which was 

17 provided for the purpose of being used 

18 for campaign-related activity or in re19 sponse to a solicitation for funds to be 

20 used for campaign-related activity (as 

21 required to be included in the report 

22 under section 304(f)(6)(A)(i)) but 

23 subclause (I) or subclause (II) does 

24 not apply, the person who is identified 


rfrederick on DSKD9S0YB1PROD with BILLS
98 

•S 3628 PCS

1 among all such reports as making the 

2 largest such payment. 

3 ‘‘(IV) If none of the reports filed 

4 by any organization with respect to 

5 the electioneering communication 

6 under section 304 during the 12- 

7 month period which ends on the date 

8 of the disbursement includes informa9 tion on any person who made a pay10 ment to the organization in an 

11 amount equal to or exceeding $10,000 

12 which was provided for the purpose of 

13 being used for campaign-related activ14 ity or in response to a solicitation for 

15 funds to be used for campaign-related 

16 activity, but any of such reports in17 cludes information on any person who 

18 made an unrestricted donor payment 

19 to the organization (as required to be 

20 included in the report under section 

21 304(f)(6)(A)(ii)) in an amount equal 

22 to or exceeding $10,000, the person 

23 who is identified among all such re24 ports as making the largest such un25 restricted donor payment. 


rfrederick on DSKD9S0YB1PROD with BILLS
99 

•S 3628 PCS

1 ‘‘(5) TOP 5 FUNDERS LIST DESCRIBED.—With 

2 respect to a communication paid for in whole or in 

3 part with a payment which is treated as a disburse4 ment by a covered organization for campaign-related 

5 activity under section 325, the Top 5 Funders list 

6 described in this paragraph is— 

7 ‘‘(A) in the case of a disbursement for an 

8 independent expenditure consisting of a public 

9 communication, a list of the 5 persons who pro10 vided the largest payments of any type in an 

11 aggregate amount equal to or exceeding 

12 $10,000 which are required under section 

13 304(g)(5)(A) to be included in the reports filed 

14 by any organization with respect to that inde15 pendent expenditure under section 304 during 

16 the 12-month period which ends on the date of 

17 the disbursement, together with the amount of 

18 the payments each such person provided; or 

19 ‘‘(B) in the case of a disbursement for an 

20 electioneering communication, a list of the 5 

21 persons who provided the largest payments of 

22 any type in an aggregate amount equal to or 

23 exceeding $10,000 which are required under 

24 section 304(f)(6)(A) to be included in the re25 ports filed by any organization with respect to 


rfrederick on DSKD9S0YB1PROD with BILLS
100 

•S 3628 PCS

1 that electioneering communication under section 

2 304 during the 12-month period which ends on 

3 the date of the disbursement, together with the 

4 amount of the payments each such person pro5 vided. 

6 ‘‘(6) METHOD OF CONVEYANCE OF STATE7 MENT.— 

8 ‘‘(A) COMMUNICATIONS TRANSMITTED

9 THROUGH RADIO.—In the case of a communica10 tion to which this subsection applies which is 

11 transmitted through radio, the disclosure state12 ments required under paragraph (1) shall be 

13 made by audio by the applicable individual in a 

14 clearly spoken manner. 

15 ‘‘(B) COMMUNICATIONS TRANSMITTED

16 THROUGH TELEVISION.—In the case of a com17 munication to which this subsection applies 

18 which is transmitted through television, the in19 formation required under paragraph (1)— 

20 ‘‘(i) shall appear in writing at the end 

21 of the communication in a clearly readable 

22 manner, with a reasonable degree of color 

23 contrast between the background and the 

24 printed statement, for a period of at least 

25 6 seconds; and 


rfrederick on DSKD9S0YB1PROD with BILLS
101 

•S 3628 PCS

1 ‘‘(ii) except in the case of a Top 5 

2 Funders list described in paragraph (5), 

3 shall also be conveyed by an unobscured, 

4 full-screen view of the applicable indi5 vidual, or by the applicable individual mak6 ing the statement in voice-over accom7 panied by a clearly identifiable photograph 

8 or similar image of the individual. 

9 ‘‘(7) APPLICABLE INDIVIDUAL DEFINED.—In 

10 this subsection, the term ‘applicable individual’ 

11 means, with respect to a communication to which 

12 this paragraph applies— 

13 ‘‘(A) if the communication is paid for by 

14 an individual or if the significant funder of the 

15 communication under paragraph (4) is an indi16 vidual, the individual involved; 

17 ‘‘(B) if the communication is paid for by a 

18 corporation or if the significant funder of the 

19 communication under paragraph (4) is a cor20 poration, the chief executive officer of the cor21 poration (or, if the corporation does not have a 

22 chief executive officer, the highest ranking offi23 cial of the corporation); 

24 ‘‘(C) if the communication is paid for by a 

25 labor organization or if the significant funder of 


rfrederick on DSKD9S0YB1PROD with BILLS
102 

•S 3628 PCS

1 the communication under paragraph (4) is a 

2 labor organization, the highest ranking officer 

3 of the labor organization; or 

4 ‘‘(D) if the communication is paid for by 

5 any other person or if the significant funder of 

6 the communication under paragraph (4) is any 

7 other person, the highest ranking official of 

8 such person. 

9 ‘‘(8) COVERED ORGANIZATION DEFINED.—In 

10 this subsection, the term ‘covered organization’ 

11 means any of the following: 

12 ‘‘(A) Any corporation which is subject to 

13 section 316(a), other than a corporation which 

14 is an organization described in paragraph (3) of 

15 section 501(c) of the Internal Revenue Code of 

16 1986 and exempt from tax under section 501(a) 

17 of such Code. 

18 ‘‘(B) Any labor organization (as defined in 

19 section 316). 

20 ‘‘(C) Any organization described in para21 graph (4), (5), or (6) of section 501(c) of the 

22 Internal Revenue Code of 1986 and exempt 

23 from tax under section 501(a) of such Code, 

24 other than an exempt section 501(c)(4) organi25 zation (as defined in section 301(27)). 


rfrederick on DSKD9S0YB1PROD with BILLS
103 

•S 3628 PCS

1 ‘‘(D) Any political organization under sec2 tion 527 of the Internal Revenue Code of 1986, 

3 other than a political committee under this Act. 

4 ‘‘(9) OTHER DEFINITIONS.—In this subsection, 

5 the terms ‘campaign-related activity’ and ‘unre6 stricted donor payment’ have the meaning given 

7 such terms in section 325.’’. 

8 (3) APPLICATION TO CERTAIN MASS MAIL9 INGS.—Section 318(a)(3) of such Act (2 U.S.C. 

10 441d(a)(3)) is amended to read as follows: 

11 ‘‘(3) if not authorized by a candidate, an au12 thorized political committee of a candidate, or its 

13 agents, shall clearly state— 

14 ‘‘(A) the name and permanent street ad15 dress, telephone number, or World Wide Web 

16 address of the person who paid for the commu17 nication; 

18 ‘‘(B) if the communication is an inde19 pendent expenditure consisting of a mass mail20 ing (as defined in section 301(23)) which is 

21 paid for in whole or in part with a payment 

22 which is treated as a disbursement by a covered 

23 organization for campaign-related activity under 

24 section 325, or which is paid for in whole or in 

25 part by a political committee described in subVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
104 

•S 3628 PCS

1 section (e)(7)(B), the name and permanent 

2 street address, telephone number, or World 

3 Wide Web address of— 

4 ‘‘(i) the significant funder of the com5 munication, if any (as determined in ac6 cordance with subsection (e)(4)(C)(i) or 

7 (e)(7)(A)(i); and 

8 ‘‘(ii) each person who would be in9 cluded in the Top 5 Funders list which 

10 would be submitted with respect to the 

11 communication if the communication were 

12 transmitted through television, if any (as 

13 determined in accordance with subsection 

14 (e)(5) or (e)(7)(A)(ii)); and 

15 ‘‘(C) that the communication is not au16 thorized by any candidate or candidate’s com17 mittee.’’. 

18 (4) APPLICATION TO POLITICAL ROBOCALLS.— 

19 Section 318 of such Act (2 U.S.C. 441d), as amend20 ed by paragraph (2), is further amended by adding 

21 at the end the following new subsection: 

22 ‘‘(f) SPECIAL RULES FOR POLITICAL ROBOCALLS.— 

23 ‘‘(1) REQUIRING COMMUNICATIONS TO INCLUDE

24 CERTAIN DISCLAIMER STATEMENTS.—Any commu25 nication consisting of a political robocall which 


rfrederick on DSKD9S0YB1PROD with BILLS
105 

•S 3628 PCS

1 would be subject to the requirements of subsection 

2 (e) if the communication were transmitted through 

3 radio or television shall include the following: 

4 ‘‘(A) The individual disclosure statement 

5 described in subsection (e)(2) (if the person 

6 paying for the communication is an individual) 

7 or the organizational disclosure statement de8 scribed in subsection (e)(3) (if the person pay9 ing for the communication is not an individual). 

10 ‘‘(B) If the communication is an election11 eering communication or an independent ex12 penditure consisting of a public communication 

13 and is paid for in whole or in part with a pay14 ment which is treated as a disbursement by a 

15 covered organization for campaign-related activ16 ity under section 325, or which is paid for in 

17 whole or in part by a political committee de18 scribed in subsection (e)(7)(B), the significant 

19 funder disclosure statement described in sub20 section (e)(4) or (e)(7) (if applicable). 

21 ‘‘(2) TIMING OF CERTAIN STATEMENT.—The 

22 statements required to be included under paragraph 

23 (1) shall be made at the beginning of the political 

24 robocall, unless, on the basis of criteria established 

25 in regulations promulgated by the Commission, the 


rfrederick on DSKD9S0YB1PROD with BILLS
106 

•S 3628 PCS

1 communication is of such short duration that includ2 ing the statement in the communication would con3 stitute a hardship to the person paying for the com4 munication by requiring a disproportionate amount 

5 of the communication’s content to consist of the 

6 statement. 

7 ‘‘(3) POLITICAL ROBOCALL DEFINED.—In this 

8 subsection, the term ‘political robocall’ means any 

9 outbound telephone call— 

10 ‘‘(A) in which a person is not available to 

11 speak with the person answering the call, and 

12 the call instead plays a recorded message; and 

13 ‘‘(B) which promotes, supports, attacks, or 

14 opposes a candidate for election for Federal of15 fice.’’. 

16 SEC. 215. INDEXING OF CERTAIN AMOUNTS. 

17 Title III of the Federal Election Campaign Act of 

18 1971, as amended by section 213, is amended by adding 

19 at the end the following new section: 

20 ‘‘SEC. 327. INDEXING OF CERTAIN AMOUNTS. 

21 ‘‘(a) INDEXING.—In any calendar year after 2010— 

22 ‘‘(1) each of the amounts referred to in sub23 section (b) shall be increased by the percent dif24 ference determined under subparagraph (A) of sec25 tion 315(c)(1), except that for purposes of this paraVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
107 

•S 3628 PCS

1 graph, such percent difference shall be determined 

2 as if the base year referred to in such subparagraph 

3 were 2009; 

4 ‘‘(2) each amount so increased shall remain in 

5 effect for the calendar year; and 

6 ‘‘(3) if any amount after adjustment under 

7 paragraph (1) is not a multiple of $100, such 

8 amount shall be rounded to the nearest multiple of 

9 $100. 

10 ‘‘(b) AMOUNTS DESCRIBED.—The amounts referred 

11 to in this subsection are as follows: 

12 ‘‘(1) The amount referred to in section 

13 304(g)(5)(A)(i)(I). 

14 ‘‘(2) The amount referred to in section 

15 304(g)(5)(A)(ii)(I). 

16 ‘‘(3) Each of the amounts referred to in section 

17 304(g)(5)(A)(ii)(II). 

18 ‘‘(4) The amount referred to in section 

19 304(g)(5)(B)(ii)(I)(ee). 

20 ‘‘(5) Each amount referred to in section 

21 304(g)(5)(B)(iii)(I)(bb). 

22 ‘‘(6) The amount referred to in section 

23 304(f)(6)(A)(i)(I). 

24 ‘‘(7) The amount referred to in section 

25 304(f)(6)(A)(ii)(I). 


rfrederick on DSKD9S0YB1PROD with BILLS
108 

•S 3628 PCS

1 ‘‘(8) Each of the amounts referred to in section 

2 304(f)(6)(A)(ii)(II). 

3 ‘‘(9) The amount referred to in section 

4 304(f)(6)(B)(ii)(I)(ee). 

5 ‘‘(10) Each amount referred to in section 

6 304(f)(6)(B)(iii)(I)(bb). 

7 ‘‘(11) The amount referred to in section 317(b). 

8 ‘‘(12) Each of the amounts referred to in sec9 tion 318(e)(4)(C). 

10 ‘‘(13) The amount referred to in section 

11 325(d)(2)(B)(i)(V). 

12 ‘‘(14) Each amount referred to in section 

13 325(d)(2)(C)(i)(II).’’. 

14 Subtitle C—Reporting Require15 ments for Registered Lobbyists 

16 SEC. 221. REQUIRING REGISTERED LOBBYISTS TO REPORT 

17 INFORMATION ON INDEPENDENT EXPENDI18 TURES AND ELECTIONEERING COMMUNICA19 TIONS. 

20 (a) IN GENERAL.—Section 5(d)(1) of the Lobbying 

21 Disclosure Act of 1995 (2 U.S.C. 1604(d)(1)) is amend22 ed— 

23 (1) by striking ‘‘and’’ at the end of subpara24 graph (F); 


rfrederick on DSKD9S0YB1PROD with BILLS
109 

•S 3628 PCS

1 (2) by redesignating subparagraph (G) as sub2 paragraph (I); and 

3 (3) by inserting after subparagraph (F) the fol4 lowing new subparagraphs: 

5 ‘‘(G) the amount of any independent ex6 penditure (as defined in section 301(17) of the 

7 Federal Election Campaign Act of 1971 (2 

8 U.S.C. 431(17)) equal to or greater than 

9 $1,000 made by such person or organization, 

10 and for each such expenditure the name of each 

11 candidate being supported or opposed and the 

12 amount spent supporting or opposing each such 

13 candidate; 

14 ‘‘(H) the amount of any electioneering 

15 communication (as defined in section 304(f)(3) 

16 of such Act (2 U.S.C. 434(f)(3)) equal to or 

17 greater than $1,000 made by such person or or18 ganization, and for each such communication 

19 the name of the candidate referred to in the 

20 communication; and’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply with respect to reports for semi23 annual periods described in section 5(d)(1) of the Lob24 bying Disclosure Act of 1995 that begin after the date 

25 of the enactment of this Act. 


rfrederick on DSKD9S0YB1PROD with BILLS
110 

•S 3628 PCS

1 Subtitle D—Filing by Senate 

2 Candidates With Commission 

3 SEC. 231. FILING BY SENATE CANDIDATES WITH COMMIS4 SION. 

5 Section 302(g) of the Federal Election Campaign Act 

6 of 1971 (2 U.S.C. 432(g)) is amended to read as follows: 

7 ‘‘(g) FILING WITH THE COMMISSION.—All des8 ignations, statements, and reports required to be 

9 filed under this Act shall be filed with the Commis10 sion.’’. 

11 TITLE III—DISCLOSURE BY COV12 ERED ORGANIZATIONS OF IN13 FORMATION ON CAMPAIGN14 RELATED ACTIVITY 

15 SEC. 301. REQUIRING DISCLOSURE BY COVERED ORGANI16 ZATIONS OF INFORMATION ON CAMPAIGN17 RELATED ACTIVITY. 

18 Title III of the Federal Election Campaign Act of 

19 1971 (2 U.S.C. 431 et seq.), as amended by section 215, 

20 is amended by adding at the end the following new section: 


rfrederick on DSKD9S0YB1PROD with BILLS
111 

•S 3628 PCS

1 ‘‘SEC. 328. DISCLOSURES BY COVERED ORGANIZATIONS TO 

2 SHAREHOLDERS, MEMBERS, AND DONORS OF 

3 INFORMATION ON DISBURSEMENTS FOR 

4 CAMPAIGN-RELATED ACTIVITY. 

5 ‘‘(a) INCLUDING INFORMATION IN REGULAR PERI6 ODIC REPORTS.— 

7 ‘‘(1) IN GENERAL.—A covered organization 

8 which submits regular, periodic reports to its share9 holders, members, or donors on its finances or ac10 tivities shall include in each such report, in a clear 

11 and conspicuous manner, the information described 

12 in paragraph (2) with respect to the disbursements 

13 made by the organization for campaign-related activ14 ity during the period covered by the report. 

15 ‘‘(2) INFORMATION DESCRIBED.—The informa16 tion described in this paragraph is, for each dis17 bursement for campaign-related activity— 

18 ‘‘(A) the date of the independent expendi19 ture or electioneering communication involved; 

20 ‘‘(B) the amount of the independent ex21 penditure or electioneering communication in22 volved; 

23 ‘‘(C) the name of the candidate identified 

24 in the independent expenditure or electioneering 

25 communication involved and the office sought 

26 by the candidate; 


rfrederick on DSKD9S0YB1PROD with BILLS
112 

•S 3628 PCS

1 ‘‘(D) in the case of a transfer of funds to 

2 another person, the information required by 

3 subparagraphs (A) through (C), as well as the 

4 name of the recipient of the funds and the date 

5 and amount of the funds transferred; 

6 ‘‘(E) the source of such funds; and 

7 ‘‘(F) such other information as the Com8 mission determines is appropriate to further the 

9 purposes of this subsection. 

10 ‘‘(b) POSTING OF OR HYPERLINK TO INFORMATION

11 INCLUDED IN REPORTS FILED WITH COMMISSION.— 

12 ‘‘(1) REQUIRING POSTING OF OR HYPERLINK

13 TO CERTAIN INFORMATION.—If a covered organiza14 tion maintains an Internet site, the organization 

15 shall— 

16 ‘‘(A) post on such Internet site, in a ma17 chine readable, searchable, sortable, and 

18 downloadable manner and through a direct link 

19 from the homepage of the organization, the in20 formation described in paragraph (2); or 

21 ‘‘(B) post on such Internet site a hyperlink 

22 from its homepage to the location on the Inter23 net site of the Commission which contains the 

24 information described in paragraph (2). 


rfrederick on DSKD9S0YB1PROD with BILLS
113 

•S 3628 PCS

1 ‘‘(2) INFORMATION DESCRIBED.—The following 

2 information is described in this paragraph: 

3 ‘‘(A) The information the organization is 

4 required to report under section 304(g)(5)(A) 

5 with respect to public independent expenditures. 

6 ‘‘(B) The information the organization is 

7 required to include in a statement of disburse8 ments for electioneering communications under 

9 section 304(f)(6). 

10 ‘‘(3) DEADLINE; DURATION OF POSTING.—The 

11 covered organization shall post the information or 

12 the hyperlink described in paragraph (1) not later 

13 than 24 hours after the Commission posts the infor14 mation described in paragraph (2) on the Internet 

15 site of the Commission, and shall ensure that the in16 formation or the hyperlink remains on the Internet 

17 site of the covered organization until the expiration 

18 of the 1-year period which begins on the date of the 

19 election with respect to which the public independent 

20 expenditures or electioneering communications are 

21 made. 

22 ‘‘(c) COVERED ORGANIZATION DEFINED.—In this 

23 section, the term ‘covered organization’ means any of the 

24 following: 


rfrederick on DSKD9S0YB1PROD with BILLS
114 

•S 3628 PCS

1 ‘‘(1) Any corporation which is subject to section 

2 316(a), other than a corporation which is an organi3 zation described in paragraph (3) of section 501(c) 

4 of the Internal Revenue Code of 1986 and exempt 

5 from tax under section 501(a) of such Code. 

6 ‘‘(2) Any labor organization (as defined in sec7 tion 316). 

8 ‘‘(3) Any organization described in paragraph 

9 (4), (5), or (6) of section 501(c) of the Internal Rev10 enue Code of 1986 and exempt from tax under sec11 tion 501(a) of such Code, other than an exempt sec12 tion 501(c)(4) organization (as defined in section 

13 301(27)). 

14 ‘‘(4) Any political organization under section 

15 527 of the Internal Revenue Code of 1986, other 

16 than a political committee under this Act.’’. 

17 TITLE IV—OTHER PROVISIONS 

18 SEC. 401. JUDICIAL REVIEW. 

19 (a) SPECIAL RULES FOR ACTIONS BROUGHT ON

20 CONSTITUTIONAL GROUNDS.—If any action is brought for 

21 declaratory or injunctive relief to challenge the constitu22 tionality of any provision of this Act or any amendment 

23 made by this Act, the following rules shall apply: 

24 (1) The action shall be filed in the United 

25 States District Court for the District of Columbia, 


rfrederick on DSKD9S0YB1PROD with BILLS
115 

•S 3628 PCS

1 and an appeal from a decision of the District Court 

2 may be taken to the Court of Appeals for the Dis3 trict of Columbia Circuit. 

4 (2) A copy of the complaint shall be delivered 

5 promptly to the Clerk of the House of Representa6 tives and the Secretary of the Senate. 

7 (b) INTERVENTION BY MEMBERS OF CONGRESS.—In 

8 any action in which the constitutionality of any provision 

9 of this Act or any amendment made by this Act is raised, 

10 any member of the House of Representatives (including 

11 a Delegate or Resident Commissioner to the Congress) or 

12 Senate who satisfies the requirements for standing under 

13 article III of the Constitution shall have the right to inter14 vene either in support of or opposition to the position of 

15 a party to the case regarding the constitutionality of the 

16 provision or amendment. To avoid duplication of efforts 

17 and reduce the burdens placed on the parties to the action, 

18 the court in any such action may make such orders as 

19 it considers necessary, including orders to require interve20 nors taking similar positions to file joint papers or to be 

21 represented by a single attorney at oral argument. 

22 (c) CHALLENGE BY MEMBERS OF CONGRESS.—Any 

23 Member of the House of Representatives (including a Del24 egate or Resident Commissioner to the Congress) or Sen25 ate may bring an action, subject to the special rules deVerDate Mar 15 2010 01:52 Jul 23, 2010 Jkt 089200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\S3628.PCS S3628

rfrederick on DSKD9S0YB1PROD with BILLS
116 

•S 3628 PCS

1 scribed in subsection (a), for declaratory or injunctive re2 lief to challenge the constitutionality of any provision of 

3 this Act or any amendment made by this Act. 

4 SEC. 402. NO EFFECT ON PROTECTIONS AGAINST THREATS, 

5 HARASSMENTS, AND REPRISALS. 

6 Nothing in this Act or in any amendment made by 

7 this Act shall be construed to affect any provision of law 

8 or any rule or regulation which waives a requirement to 

9 disclose information relating to any person in any case in 

10 which there is a reasonable probability that the disclosure 

11 of the information would subject the person to threats, 

12 harassments, or reprisals. 

13 SEC. 403. SEVERABILITY. 

14 If any provision of this Act or amendment made by 

15 this Act, or the application of a provision or amendment 

16 to any person or circumstance, is held to be unconstitu17 tional, the remainder of this Act and amendments made 

18 by this Act, and the application of the provisions and 

19 amendment to any person or circumstance, shall not be 

20 affected by the holding. 

21 SEC. 404. EFFECTIVE DATE. 

22 Except as otherwise provided, this Act and the 

23 amendments made by this Act shall take effect upon the 

24 expiration of the 30-day period which begins on the date 

25 of the enactment of this Act, and shall take effect without 


rfrederick on DSKD9S0YB1PROD with BILLS
117 

•S 3628 PCS

1 regard to whether or not the Federal Election Commission 

2 has promulgated regulations to carry out such amend3 ments. 


rfrederick on DSKD9S0YB1PROD with BILLS
Calendar No. 476 

111TH CONGRESS 

2D SESSION S. 3628 

A BILL 

To amend the Federal Election Campaign Act of 

elections, and for other purposes. requirements with respect to spending in such elections, and to establish additional disclosure from making expenditures with respect to such elections, to prohibit government contractors 1971 to prohibit foreign influence in Federal 

JULY 22, 2010 

Read the second time and placed on the calendar 


rfrederick on DSKD9S0YB1PROD with BILLS