(3) Scam PACs are political parasites that de-
grade the integrity of our elections and harm Amer-
ican democracy. Fraud in elections erodes public 
confidence in American institutions, and reports of 
scam PACs abusing donations for self-enrichment 
schemes can have a chilling effect on donors’ and 
voters’ willingness to politically participate. Can-
didates also suffer harm when cash they need to run 
their campaigns is diverted away from them. 
(4) This Act targets scam PACs’ fraud and 
self-dealing. The Supreme Court has acknowledged 
‘‘it goes without saying that there is a ‘substantial 
governmental interest[] in protecting the public from 
fraud.’ ’’ (Americans for Prosperity Found. v. Bonta, 
141 S. Ct. 2373, 2386 (2021)). In the context of 
elections, ‘‘the State’s interest in preserving the in-
tegrity of the electoral process is undoubtedly impor-
tant. . . . The State’s interest is particularly strong 
with respect to efforts to root out fraud, which not 
only may produce fraudulent outcomes, but has a 
systemic effect as well,’’ (John Doe No. 1 v. Reed, 
561 U.S. 186, 197 (2010)). 
(5) The Supreme Court has repeatedly upheld 
that giving and spending money in elections is pro-
tected speech. When scam PAC operators misuse do-
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nations, they are suppressing their donors’ speech. 
By making few to no political contributions with the 
dollars raised off false promises to further their do-
nors’ political views, scam PACs are stealing money, 
and theft is not protected speech. 
(6) In the interest of safeguarding constitu-
tionally protected speech, this Act does not prescribe 
sweeping regulations regarding how all political com-
mittees may spend money in elections. This Act’s 
prohibitions are narrowly tailored to only apply to a 
subset of nonconnected committees that do not have 
a majority of their disbursements spent on legiti-
mate expenditures, sparing the vast majority of com-
mittees from being subjected to any additional re-
quirements. For the committees that fail to have a 
majority of their disbursements spent on legitimate 
expenditures, their only penalty under this Act is 
being prevented from disbursing funds to any entity 
that has a financial interest or familial connection to 
the committees’ operators. This restriction is exceed-
ingly reasonable and simple to comply with to pro-
mote the governmental interest of preventing self- 
dealing. 
(7) While current PAC reporting requirements 
provide the public with information that can be use-
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ful for identifying scam PACs, the mere public avail-
ability of this disclosed information has done little to 
protect donors from scams, deter scam PACs’ oper-
ations, or curb the proliferation of fraudulent com-
mittees. Most grassroots donors who are looking to 
express their opinions by making a political con-
tribution are unable to easily interpret this disclosed 
information even if they know to look for it and 
know where to find it. Disclosures in the absence of 
meaningful fundraising and spending standards are 
insufficient to hold scam PACs accountable. 
(8) Given the finite timelines of campaign cy-
cles, prophylactic measures to combat fraud in elec-
tions are necessary alternatives to strict reliance on 
enforcement actions against fraud after an election 
is already over when the harm is very difficult to 
remedy. 
SEC. 2. PROHIBITION ON DISBURSEMENT OF FUNDS TO EN-
TITIES OWNED OR CONTROLLED BY INDIVID-
UALS WITH AUTHORITY OVER OPERATIONS 
OF POLITICAL COMMITTEES. 
(a) IN GENERAL.—Section 302 of the Federal Elec-
tion Campaign Act of 1971 (52 U.S.C. 30102) is amended 
by adding at the end the following new subsection: 
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‘‘(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 a family mem-
ber of an individual— 
‘‘(A) who is authorized to carry out executive or 
managerial authority over the operation of the com-
mittee; 
‘‘(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 com-
mittee with professional services (other than ac-
counting or legal services) relating to the commit-
tee’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 disburse-
ments 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 a majority of the funds disbursed by 
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the committee during the period were for contributions to 
an authorized committee of a candidate or a committee 
of a political party or for making independent expendi-
tures. 
‘‘(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 corpora-
tion 
or 
labor 
organization 
under 
section 
316(b)(2)(C). 
‘‘(5) In this subsection, the term ‘family member’ 
means, with respect to an individual, any of the following: 
‘‘(A) A spouse, and parents thereof. 
‘‘(B) Sons and daughters, and spouses thereof. 
‘‘(C) Parents, and spouses thereof. 
‘‘(D) Brothers and sisters, and spouses thereof. 
‘‘(E) Grandparents and grandchildren, and 
spouses thereof. 
‘‘(F) Aunts and uncles, and spouses thereof. 
‘‘(G) Cousins, and spouses thereof. 
‘‘(H) A domestic partner, and parents thereof, 
including domestic partners of any individual de-
scribed in subparagraphs (A) through (G).’’. 
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