I 

117TH CONGRESS 

1ST SESSION H. R. 2692 

To amend the Federal Election Campaign Act of 1971 to limit the authority 

of corporations to establish and operate separate segregated funds utilized for political purposes, including the establishment or operation 

of a political committee, to nonprofit corporations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2021 

Mr. HARDER of California (for himself and Mr. GOLDEN) introduced the 

following bill; which was referred to the Committee on House Administration 

A BILL 

To amend the Federal Election Campaign Act of 1971 to 

limit the authority of corporations to establish and operate separate segregated funds utilized for political purposes, including the establishment or operation of a political committee, to nonprofit corporations, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Ban Corporate PACs 

5 Act’’. 


kjohnson on DSK79L0C42PROD with BILLS
2 

•HR 2692 IH

1 SEC. 2. LIMITING AUTHORITY OF CORPORATIONS TO ES2 TABLISH OR OPERATE SEPARATE SEG3 REGATED FUNDS FOR POLITICAL PURPOSES 

4 TO NONPROFIT CORPORATIONS. 

5 (a) LIMITATION.— 

6 (1) IN GENERAL.—Section 316(b)(2)(C) of the 

7 Federal Election Campaign Act of 1971 (52 U.S.C. 

8 30118(b)(2)(C)) is amended by striking ‘‘a corpora9 tion’’ and inserting ‘‘a nonprofit corporation’’. 

10 (2) DEFINITION.—Section 316(b) of such Act 

11 (52 U.S.C. 30118(b)) is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(8) For purposes of this section, the term ‘nonprofit 

14 corporation’ means a corporation described in section 

15 501(c) of the Internal Revenue Code of 1986 and exempt 

16 from taxation under section 501(a) of such Code, other 

17 than a corporation which is ineligible to be exempt from 

18 taxation under section 501(a) of such Code if it establishes 

19 a separate segregated fund under this subsection.’’. 

20 (b) PERMITTING SOLICITATION OF CONTRIBUTIONS

21 ONLY FROM EXECUTIVE AND ADMINISTRATIVE PER22 SONNEL.—Section 316(b) of such Act (52 U.S.C. 

23 30118(b)) is amended— 

24 (1) in paragraph (4)(A)(i), by striking ‘‘its 

25 stockholders and their families and’’; 

26 (2) in paragraph (4)(B)— 


kjohnson on DSK79L0C42PROD with BILLS
3 

•HR 2692 IH

1 (A) by striking ‘‘a corporation’’ the first 

2 place it appears and inserting ‘‘a nonprofit cor3 poration’’; 

4 (B) by striking ‘‘any stockholder, executive 

5 or administrative personnel,’’ and inserting 

6 ‘‘any executive or administrative personnel’’; 

7 and 

8 (C) by striking ‘‘stockholders, executive or 

9 administrative personnel,’’ and inserting ‘‘exec10 utive or administrative personnel’’; 

11 (3) in paragraph (4)(D)— 

12 (A) by striking ‘‘stockholders and’’; 

13 (B) by striking ‘‘such stockholders or per14 sonnel’’ and inserting ‘‘such personnel’’; and 

15 (C) by striking ‘‘such stockholders and 

16 personnel’’ and inserting ‘‘such personnel’’; and 

17 (4) in paragraph (5), by striking ‘‘stockholders 

18 and’’. 

19 (c) TREATMENT OF GOVERNMENT CONTRACTORS.— 

20 Section 317(b) of such Act (52 U.S.C. 30119(b)) is 

21 amended— 

22 (1) by striking ‘‘any corporation’’ and inserting 

23 ‘‘any nonprofit corporation’’; and 

24 (2) by striking ‘‘a corporation’’ and inserting ‘‘a 

25 nonprofit corporation’’. 


kjohnson on DSK79L0C42PROD with BILLS
4 

•HR 2692 IH

1 SEC. 3. EFFECTIVE DATE; TRANSITION FOR EXISTING 

2 FUNDS AND COMMITTEES. 

3 (a) EFFECTIVE DATE.—The amendments made by 

4 this Act shall take effect on the date of the enactment 

5 of this Act. 

6 (b) TRANSITION FOR EXISTING FUNDS AND COMMIT7 TEES.—In the case of a separate segregate fund estab8 lished and operating under section 316(b)(2)(C) of the 

9 Federal Election Campaign Act of 1971 (52 U.S.C. 

10 30118(b)(2)(C)) as of the date of the enactment of this 

11 Act which is not a fund of a nonprofit corporation as de12 fined in section 316(b)(8) of such Act (as added by section 

13 2(a)(2)), the fund shall terminate and disburse its entire 

14 balance not later than 1 year after the date of the enact15 ment of this Act. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS