Honest Elections and Campaign, No Gain Act

To amend the Federal Election Campaign Act of 1971 to require authorized committees and leadership PACs of candidates for election for Federal office to disburse funds remaining unexpended after the date of the election involved, and for other purposes. 1. Short title This Act may be cited as the Honest Elections and Campaign, No Gain Act 2. Requiring authorized committees of candidates to disburse funds remaining unexpended after date of election (a) Requiring disbursement Title III of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 et seq. 303A. Disbursement of funds remaining unexpended after date of election (a) Requiring disbursement (1) In general Each authorized committee or leadership PAC of a candidate shall, in accordance with subsection (b) and prior to the expiration of the applicable disbursement period, disburse any funds of the committee or PAC before the earliest of— (A) the last day of the applicable disbursement period; (B) the date on which the candidate first makes a lobbying contact or is employed or retained to make a lobbying contact that would require registration under section 4 of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1603 (C) the date on which the candidate becomes an agent of a foreign principal that would require registration under section 2 of the Foreign Agents Registration Act of 1938, as amended ( 22 U.S.C. 612 (2) Exception for candidates in next election Paragraph (1) does not apply to the committee or PAC of a candidate who, prior to the first day of the applicable disbursement period, provides the appropriate State election official with the information and fees (if any) required under State law for the individual to qualify as a candidate for the next election for the office sought by the candidate or the next election for another Federal office. (3) Applicable disbursement period In this subsection, the applicable disbursement period (b) Rules for disbursement of funds (1) Payment of obligations In carrying out subsection (a), an authorized committee or leadership PAC shall first disburse funds to pay obligations incurred in connection with the operation of the committee. (2) Other permitted disbursements If, after disbursing all of the funds necessary to pay obligations under paragraph (1), funds of a committee or PAC remain unexpended, the committee or PAC may only disburse the funds for any of the following purposes, in such manner and combination as the committee or PAC considers appropriate: (A) To return to any person a contribution the person made to the committee or PAC. (B) To make a contribution to an organization described in section 170(c) (C) To make a transfer without limitation to a national, State, or local committee of a political party. (c) Restrictions on disbursement to relatives (1) Restriction In disbursing funds pursuant to the requirements of this section, an authorized committee or leadership PAC may not disburse funds to a relative of the candidate unless the funds are disbursed to pay an obligation of the committee as described in paragraph (1) of subsection (b) which is reported by the committee or PAC as a disbursement under section 304(b)(5) or which would be so reported if the amount of the disbursement were in excess of $200. (2) Relative defined In this subsection, the term relative (d) Definition In this section, the term leadership PAC . (b) Conforming amendment relating to permitted uses of contributions Section 313(a) of such Act ( 52 U.S.C. 30114(a) A contribution Subject to section 303A, a contribution (c) Effective date The amendments made by this section shall apply with respect to the regularly scheduled general election for Federal office held in November 2024 and each succeeding election for Federal office. 3. Requiring former candidates serving as registered lobbyists to certify compliance with disbursement requirements (a) Certification of compliance Section 4(b) of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1603(b) (1) by striking and (2) by striking the period at the end of paragraph (7) and inserting ; and (3) by inserting after paragraph (7) the following new paragraph: (8) in the case of an individual who was a candidate for election for Federal office, a certification (under penalty of perjury) that each authorized committee and leadership PAC (as defined in section 304(i)(8)(B) of the Federal Election Campaign Act of 1971) of the individual is in compliance with section 303A of the Federal Election Campaign Act of 1971 (relating to the disbursement of funds of the committee or leadership PAC which remain unexpended after the date of the election). . (b) Effective date The amendment made by subsection (a) shall apply with respect to registration statements filed under section 4(a) of the Lobbying Disclosure Act on or after the date of the regularly scheduled general election for Federal office held in November 2024. 4. Requiring former candidates serving as foreign agents to certify compliance with disbursement requirements (a) Certification of compliance Section 2(a) of the Foreign Agents Registration Act of 1938, as amended ( 22 U.S.C. 612(a) (1) by redesignating paragraphs (10) and (11) as paragraphs (11) and (12); and (2) by inserting after paragraph (9) the following new paragraph: (10) In the case of an individual who was a candidate for election for Federal office, a certification (under penalty of perjury) that each authorized committee and leadership PAC (as defined in section 304(i)(8)(B) of the Federal Election Campaign Act of 1971) of the individual is in compliance with section 303A of the Federal Election Campaign Act of 1971 (relating to the disbursement of funds of the committee or leadership PAC which remain unexpended after the date of the election). . (b) Effective date The amendment made by subsection (a) shall apply with respect to registration statements filed under section 2 of the Foreign Agents Registration Act of 1938, as amended on or after the date of the regularly scheduled general election for Federal office held in November 2024.

Summary: Honest Elections and Campaign, No Gain Act This bill establishes certain requirements for disbursing unused funds after a federal election. The bill also requires former candidates serving as registered lobbyists or foreign agents to comply with disbursement requirements. Specifically, the bill requires each authorized committee or leadership political action committee (PAC) of a candidate to disburse all unused funds within a specified time period beginning after an election or before the candidate registers as a lobbyist or foreign agent, unless the candidate files to run for office again before the disbursement period begins. A committee or PAC disbursing unspent funds shall first pay any obligations incurred. If funds are left over, the committee or PAC may only disburse the funds in one or more of the following ways: (1) returning funds to donors; (2) making contributions to nonprofit organizations; and (3) transferring funds without limitation to a national, state, or local committee of a political party. The bill generally prohibits disbursements to relatives of the candidate. A former candidate must, in order to register as a lobbyist or foreign agent, comply with the disbursement requirements outlined by this bill.