SCAM PAC Act

To prohibit the disbursement of funds to entities owned or controlled by individuals with executive or managerial authority over the operations of political committees, and for other purposes. 1. Short title This Act may be cited as the Stopping Corrupt Actors from Making Political Action Committees Act SCAM PAC Act 2. Prohibition on disbursement of funds to entities owned or controlled by individuals with authority over operations of political committees (a) In general Section 302 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30102 (j) (1) Except as provided in paragraphs (3) and (4), during a reporting period covered by a report filed by a political committee under section 304, the committee may not make disbursements to an entity owned or controlled in whole or in part by an individual, or by an immediate family member of an individual— (A) who is authorized to carry out executive or managerial authority over the operation of the committee; (B) who is authorized to solicit or disburse funds for or on behalf of the committee; or (C) who is an employee of the committee (whether paid or unpaid) and who provides the committee with professional services (other than accounting or legal services) relating to the committee’s campaign or fundraising strategy. (2) A political committee may not employ or allow to volunteer on behalf of the committee an individual who owns or controls an entity that has accepted disbursements made from any political committee in violation of paragraph (1). (3) Paragraph (1) does not apply with respect to disbursements made by a political committee during the reporting period covered by a report filed by the committee under section 304 if the committee includes in the report a true and accurate certification, under penalty of perjury, that a majority of the funds disbursed by the committee during the period were for expenses other than administrative costs, fundraising costs, and salaries of employees of the committee. (4) Paragraph (1) does not apply with respect to the following: (A) An authorized committee of a candidate. (B) A committee of a political party. (C) A separate segregated fund of a corporation or labor organization under section 316(b)(2)(C). (5) In this subsection, the term immediate family member . (b) Effective date The amendment made by subsection (a) shall apply with respect to disbursements made on or after the date that is 90 days after the date of enactment of this Act.

Summary: Stopping Corrupt Actors from Making Political Action Committees Act or the SCAM PAC Act This bill generally prohibits a political committee from disbursing funds to an entity that is owned or controlled by an individual, or the immediate family member of an individual, who has authority to carry out specified activities for the committee (e.g., soliciting funds) or is employed by the committee to provide it with professional services. This prohibition does not apply to (1) a political committee that certifies that a majority of the funds disbursed by the committee were for expenses other than administrative costs, fundraising costs, and employee salaries; or (2) an authorized committee of a candidate, a committee of a political party, or a separate segregated fund of a corporation or labor organization. Further, the bill prohibits a political committee from employing these individuals or allowing them to volunteer on its behalf if the related entity accepted funds from a political committee.