I 
112TH CONGRESS 
2D SESSION 
H. R. 4010 
To amend the Federal Election Campaign Act of 1971 to provide for addi-
tional disclosure requirements for corporations, labor organizations, and 
other entities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 9, 2012 
Mr. VAN HOLLEN (for himself, Mr. BRADY of Pennsylvania, Mr. HOYER, Mr. 
CLYBURN, Mr. GEORGE MILLER of California, Mr. CONYERS, Mr. 
BECERRA, Mr. WAXMAN, Mr. LEVIN, Ms. SLAUGHTER, Mr. ISRAEL, Mr. 
MARKEY, Mr. THOMPSON of California, Mr. PRICE of North Carolina, 
Mr. WELCH, Mr. DEUTCH, Mr. BISHOP of New York, Mr. PASCRELL, 
Mr. FARR, Mr. GENE GREEN of Texas, Mr. MCGOVERN, Mrs. CAPPS, 
Mr. JOHNSON of Georgia, Mr. HOLT, Mr. SARBANES, Mr. BOSWELL, Mr. 
ANDREWS, Mr. SCHIFF, Mr. NADLER, Ms. ESHOO, Ms. SCHWARTZ, Mrs. 
CHRISTENSEN, Mr. TONKO, Ms. ZOE LOFGREN of California, Ms. CAS-
TOR of Florida, Mr. LANGEVIN, Mr. LARSON of Connecticut, Mr. CARNA-
HAN, Mrs. MALONEY, Mr. STARK, Ms. TSONGAS, Ms. WASSERMAN 
SCHULTZ, Mr. YARMUTH, Ms. HAHN, Ms. MATSUI, Ms. WOOLSEY, Ms. 
SPEIER, Ms. LINDA T. SA´NCHEZ of California, Ms. LORETTA SANCHEZ 
of California, Mr. SMITH of Washington, Mr. SCOTT of Virginia, Ms. 
MCCOLLUM, Mr. GARAMENDI, Ms. LEE of California, Mr. JACKSON of 
Illinois, Ms. WATERS, Mr. CUMMINGS, Mr. CLEAVER, Mr. POLIS, Mr. 
MCNERNEY, Mr. FRANK of Massachusetts, Mr. BERMAN, Mr. DICKS, Ms. 
VELA´ZQUEZ, Mr. RUPPERSBERGER, Ms. EDDIE BERNICE JOHNSON of 
Texas, Ms. EDWARDS, Mr. LOEBSACK, Mr. LYNCH, Mr. RUSH, Mr. 
SHERMAN, Mr. GONZALEZ, Mr. LARSEN of Washington, Mr. COSTA, Mr. 
RANGEL, Ms. ROYBAL-ALLARD, Mr. FILNER, Mr. LEWIS of Georgia, Ms. 
DEGETTE, Mr. OLVER, Mr. HONDA, Mrs. NAPOLITANO, Mr. COHEN, Mr. 
ELLISON, and Ms. BASS of California) introduced the following bill; which 
was referred to the Committee on House Administration, and in addition 
to the Committee on the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
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A BILL 
To amend the Federal Election Campaign Act of 1971 to 
provide for additional disclosure requirements for cor-
porations, labor organizations, and other entities, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disclosure of Informa-
tion on Spending on Campaigns Leads to Open and Se-
cure Elections Act of 2012’’ or the ‘‘DISCLOSE 2012 
Act’’. 
SEC. 2. CAMPAIGN DISBURSEMENT REPORTING. 
(a) INFORMATION REQUIRED TO BE REPORTED.— 
(1) TREATMENT OF FUNCTIONAL EQUIVALENT 
OF EXPRESS ADVOCACY AS INDEPENDENT EXPENDI-
TURE.—Subparagraph (A) of section 301(17) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 
431(17)) is amended to read as follows: 
‘‘(A) that, when taken as a whole, ex-
pressly advocates the election or defeat of a 
clearly identified candidate, or is the functional 
equivalent of express advocacy because it can be 
interpreted by a reasonable person only as ad-
vocating the election or defeat of a candidate, 
taking into account whether the communication 
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involved mentions a candidacy, a political party, 
or a challenger to a candidate, or takes a posi-
tion on a candidate’s character, qualifications, 
or fitness for office; and’’. 
(2) EXPANSION
OF
PERIOD
DURING
WHICH 
COMMUNICATIONS
ARE
TREATED
AS
ELECTION-
EERING COMMUNICATIONS.—Section 304(f)(3)(A)(i) 
of such Act (2 U.S.C. 434(f)(3)(A)(i)) is amended— 
(A) by redesignating subclause (III) as 
subclause (IV); and 
(B) by striking subclause (II) and insert-
ing the following: 
‘‘(II) in the case of a communica-
tion which refers to a candidate for an 
office other than the President or Vice 
President, is made during the period 
beginning on January 1 of the cal-
endar year in which a general or run-
off election is held and ending on the 
date of the general or runoff election 
(or in the case of a special election, 
during the period beginning on the 
date on which the announcement with 
respect to such election is made and 
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ending on the date of the special elec-
tion); 
‘‘(III) in the case of a commu-
nication which refers to a candidate 
for the office of President or Vice 
President, is made in any State dur-
ing the period beginning 120 days be-
fore the first primary or preference 
election or a convention or caucus of 
a political party which has the author-
ity to nominate a candidate for the of-
fice of President or Vice President is 
held in any State and ending on the 
date of the general election; and’’. 
(3) EFFECTIVE DATE; TRANSITION FOR ELEC-
TIONEERING COMMUNICATIONS MADE PRIOR TO EN-
ACTMENT.—The amendment made by paragraph (2) 
shall apply with respect to communications made on 
or after July 1, 2012, except that no communication 
which is made prior to such date shall be treated as 
an electioneering communication under section 
304(f)(3)(A)(i) (II) or (III) of the Federal Election 
Campaign Act of 1971 (as amended by paragraph 
(2)) unless the communication would be treated as 
an electioneering communication under such section 
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if the amendment made by paragraph (2) did not 
apply. 
(b) DISCLOSURE REQUIREMENTS
FOR CORPORA-
TIONS, LABOR ORGANIZATIONS, AND CERTAIN OTHER 
ENTITIES.— 
(1) IN GENERAL.—Section 324 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441k) is 
amended to read as follows: 
‘‘SEC. 324. DISCLOSURE OF CAMPAIGN-RELATED DISBURSE-
MENTS BY COVERED ORGANIZATIONS. 
‘‘(a) DISCLOSURE STATEMENT.— 
‘‘(1) IN GENERAL.—Any covered organization 
that makes campaign-related disbursements aggre-
gating more than $10,000 in a calendar year shall, 
not later than 24 hours after each disclosure date, 
file a statement with the Commission made under 
penalty of perjury that contains the information de-
scribed in paragraph (2)— 
‘‘(A) in the case of the first statement filed 
under this subsection, for the period beginning 
on the first day of the preceding calendar year 
and ending on the first such disclosure date; 
and 
‘‘(B) in the case of any subsequent state-
ment filed under this subsection, for the period 
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beginning on the previous disclosure date and 
ending on such disclosure date. 
‘‘(2) INFORMATION DESCRIBED.—The informa-
tion described in this paragraph is as follows: 
‘‘(A) The name of the covered organization 
and the principal place of business of such or-
ganization. 
‘‘(B) The amount of each campaign-related 
disbursement made by such organization during 
the period covered by the statement of more 
than $1,000. 
‘‘(C) In the case of a campaign-related dis-
bursement that is not a covered transfer, the 
election to which the campaign-related disburse-
ment pertains and if the disbursement is made 
for a public communication, the name of any 
candidate identified in such communication and 
whether such communication is in support of or 
in opposition to a candidate. 
‘‘(D) A certification by the chief executive 
officer or person who is the head of the covered 
organization that the campaign-related dis-
bursement is not made in cooperation, consulta-
tion, or concert with or at the request or sug-
gestion of a candidate, authorized committee, or 
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agent of a candidate, political party, or agent of 
a political party. 
‘‘(E) If the covered organization makes 
campaign-related disbursements using exclu-
sively funds in a segregated bank account con-
sisting of funds that were contributed, donated, 
transferred, or paid directly to such account by 
persons other than the covered organization 
that controls the account, for each contribution, 
donation, transfer, payment of dues, or other 
payment to the account— 
‘‘(i) the name and address of each 
person who made such contribution, dona-
tion, transfer, payment of dues, or other 
payment during the period covered by the 
statement; 
‘‘(ii) the date and amount of such 
contribution, donation, transfer, payment 
of dues, or other payment; and 
‘‘(iii) the aggregate amount of all such 
contributions, donations, transfers, pay-
ments of dues, and other payments made 
by the person during the period beginning 
on the first day of the preceding calendar 
year and ending on the disclosure date; 
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but only if such contribution, donation, trans-
fer, payment of dues, or other payment was 
made by a person who made contributions, do-
nations, transfers, payments of dues, or pay-
ments to the account in an aggregate amount 
of $10,000 or more during the period beginning 
on the first day of the preceding calendar year 
and ending on the disclosure date. 
‘‘(F) Subject to paragraph (4), if the cov-
ered organization makes campaign-related dis-
bursements using funds other than funds in a 
segregated bank account described in subpara-
graph (E), for each contribution, donation, 
transfer, or payment of dues to the covered or-
ganization— 
‘‘(i) the name and address of each 
person who made such contribution, dona-
tion, transfer, or payment of dues during 
the period covered by the statement; 
‘‘(ii) the date and amount of such 
contribution, donation, transfer, or pay-
ment of dues; and 
‘‘(iii) the aggregate amount of all such 
contributions, donations, transfers, and 
payments of dues made by the person dur-
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ing the period beginning on the first day of 
the preceding calendar year and ending on 
the disclosure date; 
but only if such contribution, donation, trans-
fer, or payment of dues was made by a person 
who made contributions, donations, transfers, 
or payments of dues to the covered organization 
in an aggregate amount of $10,000 or more 
during the period beginning on the first day of 
the preceding calendar year and ending on the 
disclosure date. 
‘‘(3) EXCEPTIONS.— 
‘‘(A) AMOUNTS
RECEIVED
IN
ORDINARY 
COURSE OF BUSINESS.—The requirement to in-
clude in a statement filed under paragraph (1) 
the information described in paragraph (2) 
shall not apply to amounts received by the cov-
ered organization in the ordinary course of any 
trade or business conducted by the covered or-
ganization or in the form of investments in the 
covered organization. 
‘‘(B) DONOR
RESTRICTION
ON
USE
OF 
FUNDS.—The requirement to include in a state-
ment submitted under paragraph (1) the infor-
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mation described in subparagraph (F) of para-
graph (2) shall not apply if— 
‘‘(i) the person described in such sub-
paragraph prohibited, in writing, the use of 
the contribution, donation, transfer, pay-
ment of dues, or other payment made by 
such person for campaign-related disburse-
ments; and 
‘‘(ii) the covered organization agreed 
to follow the prohibition and deposited the 
contribution, donation, transfer, payment 
of dues, or other payment in an account 
which is segregated from any account used 
to make campaign-related disbursements. 
‘‘(4) DISCLOSURE DATE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘disclosure date’ 
means— 
‘‘(i) the first date during any calendar 
year by which a person has made cam-
paign-related disbursements aggregating 
more than $10,000; and 
‘‘(ii) each date following the date de-
scribed in clause (i) during such calendar 
year by which a person has made cam-
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paign-related disbursements aggregating 
more than $10,000. 
‘‘(B) DISCLOSURE
DATE
FOR
CERTAIN 
TRANSFERS.—In the case of a statement filed 
with respect to a campaign-related disburse-
ment which is a covered transfer described in 
subsection (f)(1)(E), the term ‘disclosure date’ 
means the date on which the covered organiza-
tion making such transfer knew or should have 
known that the recipient of such transfer made 
campaign-related disbursements in an aggre-
gate amount of $50,000 or more during the 2- 
year period beginning on the date of the trans-
fer. 
‘‘(b) COORDINATION WITH OTHER PROVISIONS.— 
‘‘(1) OTHER REPORTS FILED WITH THE COM-
MISSION.—Information included in a statement filed 
under this section may be excluded from statements 
and reports filed under section 304. 
‘‘(2) TREATMENT AS SEPARATE SEGREGATED 
FUND.—A segregated bank account referred to in 
subsection (a)(2)(E) may be treated as a separate 
segregated fund for purposes of section 527(f)(3) of 
the Internal Revenue Code of 1986. 
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‘‘(c) FILING.—Statements required to be filed under 
subsection (a) shall be subject to the requirements of sec-
tion 304(d) to the same extent and in the same manner 
as if such reports had been required under subsection (c) 
or (g) of section 304. 
‘‘(d) 
CAMPAIGN-RELATED
DISBURSEMENT
DE-
FINED.—In this section, the term ‘campaign-related dis-
bursement’ means a disbursement by a covered organiza-
tion for any of the following: 
‘‘(1) An independent expenditure consisting of a 
public communication, as defined in section 301(22). 
‘‘(2) An electioneering communication, as de-
fined in section 304(f)(3). 
‘‘(3) A covered transfer. 
‘‘(e) COVERED ORGANIZATION DEFINED.—In this 
section, the term ‘covered organization’ means any of the 
following: 
‘‘(1) A corporation (other than an organization 
described in section 501(c)(3) of the Internal Rev-
enue Code of 1986). 
‘‘(2) An organization described in section 
501(c) of such Code and exempt from taxation 
under section 501(a) of such Code (other than an 
organization described in section 501(c)(3) of such 
Code). 
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‘‘(3) A labor organization (as defined in section 
316(b)). 
‘‘(4) Any political organization under section 
527 of the Internal Revenue Code of 1986, other 
than a political committee under this Act (except as 
provided in paragraph (5)). 
‘‘(5) A political committee with an account es-
tablished for the purpose of accepting donations or 
contributions that do not comply with the contribu-
tion limits or source prohibitions under this Act, but 
only with respect to the accounts established for 
such purpose. 
‘‘(f) COVERED TRANSFER DEFINED.— 
‘‘(1) IN GENERAL.—In this section, the term 
‘covered transfer’ means any transfer or payment of 
funds by a covered organization to another person if 
the covered organization— 
‘‘(A) designates, requests, or suggests that 
the amounts be used for— 
‘‘(i) campaign-related disbursements 
(other than covered transfers); or 
‘‘(ii) making a transfer to another 
person for the purpose of making or pay-
ing for such campaign-related disburse-
ments; 
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‘‘(B) made such transfer or payment in re-
sponse to a solicitation or other request for a 
donation or payment for— 
‘‘(i) the making of or paying for cam-
paign-related disbursements (other than 
covered transfers); or 
‘‘(ii) making a transfer to another 
person for the purpose of making or pay-
ing for such campaign-related disburse-
ments; 
‘‘(C) engaged in discussions with the re-
cipient of the transfer or payment regarding— 
‘‘(i) the making of or paying for cam-
paign-related disbursements (other than 
covered transfers); or 
‘‘(ii) donating or transferring any 
amount of such transfer or payment to an-
other person for the purpose of making or 
paying for such campaign-related disburse-
ments; 
‘‘(D) made campaign-related disburse-
ments (other than a covered transfer) in an ag-
gregate amount of $50,000 or more during the 
2-year period ending on the date of the transfer 
or payment, or knew or had reason to know 
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that the person receiving the transfer or pay-
ment made such disbursements in such an ag-
gregate amount during that 2-year period; or 
‘‘(E) knew or had reason to know that the 
person receiving the transfer or payment would 
make campaign-related disbursements in an ag-
gregate amount of $50,000 or more during the 
2-year period beginning on the date of the 
transfer or payment. 
‘‘(2) EXCLUSIONS.—The term ‘covered transfer’ 
does not include any of the following: 
‘‘(A) A disbursement made by a covered 
organization in the ordinary course of any trade 
or business conducted by the covered organiza-
tion or in the form of investments made by the 
covered organization. 
‘‘(B) A disbursement made by a covered 
organization if— 
‘‘(i) the covered organization prohib-
ited, in writing, the use of such disburse-
ment for campaign-related disbursements; 
and 
‘‘(ii) the recipient of the disbursement 
agreed to follow the prohibition and depos-
ited the disbursement in an account which 
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is segregated from any account used to 
make campaign-related disbursements. 
‘‘(3) EXCEPTION
FOR
CERTAIN
TRANSFERS 
AMONG AFFILIATES.— 
‘‘(A) EXCEPTION
FOR
CERTAIN
TRANS-
FERS AMONG AFFILIATES.—The term ‘covered 
transfer’ does not include an amount trans-
ferred by one covered organization to another 
covered organization which is treated as a 
transfer between affiliates under subparagraph 
(B) if the aggregate amount transferred during 
the year by such covered organization to that 
same covered organization is equal to or less 
than $50,000. 
‘‘(B) DESCRIPTION
OF
TRANSFERS
BE-
TWEEN
AFFILIATES.—A transfer of amounts 
from one covered organization to another cov-
ered organization shall be treated as a transfer 
between affiliates if— 
‘‘(i) one of the organizations is an af-
filiate of the other organization; or 
‘‘(ii) each of the organizations is an 
affiliate of the same organization; 
except that the transfer shall not be treated as 
a transfer between affiliates if one of the orga-
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nizations is established for the purpose of mak-
ing campaign-related disbursements. 
‘‘(C) DETERMINATION OF AFFILIATE STA-
TUS.—For purposes of subparagraph (B), a 
covered organization is an affiliate of another 
covered organization if— 
‘‘(i) the governing instrument of the 
organization requires it to be bound by de-
cisions of the other organization; 
‘‘(ii) the governing board of the orga-
nization includes persons who are specifi-
cally designated representatives of the 
other organization or are members of the 
governing board, officers, or paid executive 
staff members of the other organization, or 
whose service on the governing board is 
contingent upon the approval of the other 
organization; or 
‘‘(iii) the organization is chartered by 
the other organization. 
‘‘(D) COVERAGE
OF
TRANSFERS
TO
AF-
FILIATED
SECTION
501(c)(3) 
ORGANIZA-
TIONS.—This paragraph shall apply with re-
spect to an amount transferred by a covered or-
ganization to an organization described in para-
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graph (3) of section 501(c) of the Internal Rev-
enue Code of 1986 and exempt from tax under 
section 501(a) of such Code in the same man-
ner as this paragraph applies to an amount 
transferred by a covered organization to an-
other covered organization.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
304(f)(6) of such Act (2 U.S.C. 434) is amended by 
striking ‘‘Any requirement’’ and inserting ‘‘Except 
as provided in section 324(b), any requirement’’. 
SEC. 3. STAND BY YOUR AD. 
(a) DISCLAIMER REQUIREMENTS FOR CAMPAIGN-RE-
LATED DISBURSEMENTS.—Section 318(a) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441d(a)) is 
amended by striking ‘‘for the purpose of financing commu-
nications expressly advocating the election or defeat of a 
clearly identified candidate’’ and inserting ‘‘for a cam-
paign-related disbursement, as defined in section 324, con-
sisting of a public communication’’. 
(b) STAND BY YOUR AD REQUIREMENTS.— 
(1) MAINTENANCE OF REQUIREMENTS FOR PO-
LITICAL PARTIES AND CERTAIN POLITICAL COMMIT-
TEES.—Section 318(d)(2) of such Act (2 U.S.C. 
441d(d)(2)) is amended— 
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