Campaign Finance Transparency Act
Bill: S.5331 | Sponsor: Sen. Klobuchar, Amy (D-MN)
Policy area: Government Operations and Politics

Summary:
Campaign Finance Transparency Act
This bill revises provisions regarding the Federal Election Commission (FEC), including to (1) modify the process for the FEC to initiate an investigation, (2) extend permanently the FEC's administrative penalty authority, and (3) provide statutory authority for limitations on ex parte communications as applied to FEC members and employees.

To reform the Federal Election Commission's enforcement processes and 
  related provisions under the Federal Election Campaign Act of 1971.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Finance Transparency Act''.

SEC. 2. REVISION TO ENFORCEMENT PROCESS.

    (a) Standard for Initiating Investigations and Determining Whether 
Violations Have Occurred.--
            (1) Revision of standards.--Section 309(a) of the Federal 
        Election Campaign Act of 1971 (52 U.S.C. 30109(a)) is amended 
        by striking paragraphs (2) and (3) and inserting the following:
    ``(2)(A) The general counsel, upon receiving a complaint filed with 
the Commission under paragraph (1) or upon the basis of information 
ascertained by the Commission in the normal course of carrying out its 
supervisory responsibilities, shall make a determination as to whether 
or not there is reason to believe that a person has committed, or is 
about to commit, a violation of this Act or chapter 95 or chapter 96 of 
the Internal Revenue Code of 1986, and as to whether or not the 
Commission should either initiate an investigation of the matter or 
that the complaint should be dismissed. The general counsel shall 
promptly provide notification to the Commission of such determination 
and the reasons therefore, together with any written response submitted 
under paragraph (1) by the person alleged to have committed the 
violation. Upon the expiration of the 30-day period which begins on the 
date the general counsel provides such notification, the general 
counsel's determination shall take effect, unless during such 30-day 
period the Commission, by vote of a majority of the members of the 
Commission who are serving at the time, overrules the general counsel's 
determination. If the determination by the general counsel that the 
Commission should investigate the matter takes effect, or if the 
determination by the general counsel that the complaint should be 
dismissed is overruled as provided under the previous sentence, the 
general counsel shall initiate an investigation of the matter on behalf 
of the Commission.
    ``(B) If the Commission initiates an investigation pursuant to 
subparagraph (A), the Commission, through the Chair, shall notify the 
subject of the investigation of the alleged violation. Such 
notification shall set forth the factual basis for such alleged 
violation. The Commission shall make an investigation of such alleged 
violation, which may include a field investigation or audit, in 
accordance with the provisions of this section. The general counsel 
shall provide notification to the Commission of any intent to issue a 
subpoena or conduct any other form of discovery pursuant to the 
investigation. Upon the expiration of the 15-day period which begins on 
the date the general counsel provides such notification, the general 
counsel may issue the subpoena or conduct the discovery, unless during 
such 15-day period the Commission, by vote of a majority of the members 
of the Commission who are serving at the time, prohibits the general 
counsel from issuing the subpoena or conducting the discovery.
    ``(3)(A) Upon completion of an investigation under paragraph (2), 
the general counsel shall make a determination as to whether or not 
there is probable cause to believe that a person has committed, or is 
about to commit, a violation of this Act or chapter 95 or chapter 96 of 
the Internal Revenue Code of 1986, and shall promptly submit such 
determination to the Commission, and shall include with the 
determination a brief stating the position of the general counsel on 
the legal and factual issues of the case.
    ``(B) At the time the general counsel submits to the Commission the 
determination under subparagraph (A), the general counsel shall 
simultaneously notify the respondent of such determination and the 
reasons therefore, shall provide the respondent with an opportunity to 
submit a brief within 30 days stating the position of the respondent on 
the legal and factual issues of the case and replying to the brief of 
the general counsel. The general counsel shall promptly submit such 
brief to the Commission upon receipt.
    ``(C) Upon the expiration of the 30-day period which begins on the 
date the general counsel submits the determination to the Commission 
under subparagraph (A) (or, if the respondent submits a brief under 
subparagraph (B), upon the expiration of the 30-day period which begins 
on the date the general counsel submits the respondent's brief to the 
Commission under such subparagraph), the general counsel's 
determination shall take effect, unless during such 30-day period the 
Commission, by vote of a majority of the members of the Commission who 
are serving at the time, overrules the general counsel's determination. 
If the determination by the general counsel that there is probable 
cause to believe that a person has committed, or is about to commit, a 
violation of this Act or chapter 95 or chapter 96 of the Internal 
Revenue Code of 1986, or if the determination by the general counsel 
that there is not probable cause that a person has committed or is 
about to commit such a violation is overruled as provided under the 
previous sentence, for purposes of this subsection, the Commission 
shall be deemed to have determined that there is probable cause that 
the person has committed or is about to commit such a violation.''.
            (2) Conforming amendment relating to initial response to 
        filing of complaint.--Section 309(a)(1) of such Act (52 U.S.C. 
        30109(a)(1)) is amended--
                    (A) in the third sentence, by striking ``the 
                Commission'' and inserting ``the general counsel''; and
                    (B) by amending the fourth sentence to read as 
                follows: ``Not later than 15 days after receiving 
                notice from the general counsel under the previous 
                sentence, the person may provide the general counsel 
                with a written response that no action should be taken 
                against such person on the basis of the complaint.''.
    (b) Revision of Standard for Review of Dismissal of Complaints.--
            (1) In general.--Section 309(a)(8) of such Act (52 U.S.C. 
        30109(a)(8)) is amended to read as follows:
    ``(8)(A)(i) Any party aggrieved by an order of the Commission 
dismissing a complaint filed by such party may file a petition with the 
United States District Court for the District of Columbia. Any petition 
under this subparagraph shall be filed within 60 days after the date on 
which the party received notice of the dismissal of the complaint.
    ``(ii) In any proceeding under this subparagraph, the court shall 
determine by de novo review whether the agency's dismissal of the 
complaint is contrary to law. In any matter in which the penalty for 
the alleged violation is greater than $50,000, the court should 
disregard any claim or defense by the Commission of prosecutorial 
discretion as a basis for dismissing the complaint.
    ``(B)(i) Any party who has filed a complaint with the Commission 
and who is aggrieved by a failure of the Commission, within one year 
after the filing of the complaint, to act on such complaint, may file a 
petition with the United States District Court for the District of 
Columbia.
    ``(ii) In any proceeding under this subparagraph, the court shall 
determine by de novo review whether the agency's failure to act on the 
complaint is contrary to law.
    ``(C) In any proceeding under this paragraph the court may declare 
that the dismissal of the complaint or the failure to act is contrary 
to law, and may direct the Commission to conform with such declaration 
within 30 days, failing which the complainant may bring, in the name of 
such complainant, a civil action to remedy the violation involved in 
the original complaint.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply--
                    (A) in the case of complaints which are dismissed 
                by the Federal Election Commission, with respect to 
                complaints which are dismissed on or after the date of 
                the enactment of this Act; and
                    (B) in the case of complaints upon which the 
                Federal Election Commission failed to act, with respect 
                to complaints which were filed on or after the date of 
                the enactment of this Act.
    (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Federal Election Commission shall promulgate 
new regulations on the enforcement process under section 309 of the 
Federal Election Campaign Act of 1971 (52 U.S.C. 30109) to take into 
account the amendments made by this section.

SEC. 3. OFFICIAL EXERCISING THE RESPONSIBILITIES OF THE GENERAL 
              COUNSEL.

    Section 306(f)(1) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30106(f)(1)) is amended by adding at the end the following new 
sentence: ``In the event of a vacancy in the position of the general 
counsel, the most senior attorney employed within the Office of the 
General Counsel at the time the vacancy arises shall exercise all the 
responsibilities of the general counsel until the vacancy is filled.''.

SEC. 4. PERMITTING APPEARANCE AT HEARINGS ON REQUESTS FOR ADVISORY 
              OPINIONS BY PERSONS OPPOSING THE REQUESTS.

    (a) In General.--Section 308 of such Act (52 U.S.C. 30108) is 
amended by adding at the end the following new subsection:
    ``(e) To the extent that the Commission provides an opportunity for 
a person requesting an advisory opinion under this section (or counsel 
for such person) to appear before the Commission to present testimony 
in support of the request, and the person (or counsel) accepts such 
opportunity, the Commission shall provide a reasonable opportunity for 
an interested party who submitted written comments under subsection (d) 
in response to the request (or counsel for such interested party) to 
appear before the Commission to present testimony in response to the 
request.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to requests for advisory opinions under section 308 
of the Federal Election Campaign Act of 1971 which are made on or after 
the date of the enactment of this Act.

SEC. 5. PERMANENT EXTENSION OF ADMINISTRATIVE PENALTY AUTHORITY.

    Section 309(a)(4)(C)(v) of the Federal Election Campaign Act of 
1971 (52 U.S.C. 30109(a)(4)(C)(v)) is amended by striking ``, and that 
end on or before December 31, 2023''.

SEC. 6. RESTRICTIONS ON EX PARTE COMMUNICATIONS.

    Section 306(e) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30106(e)) is amended--
            (1) by striking ``(e) The Commission'' and inserting 
        ``(e)(1) The Commission''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Members and employees of the Commission shall be subject to 
limitations on ex parte communications, as provided in the regulations 
promulgated by the Commission regarding such communications which are 
in effect on the date of the enactment of this paragraph.''.

SEC. 7. CLARIFYING AUTHORITY OF FEC ATTORNEYS TO REPRESENT FEC IN 
              SUPREME COURT.

    (a) Clarifying Authority.--Section 306(f)(4) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30106(f)(4)) is amended by 
striking ``any action instituted under this Act, either (A) by 
attorneys'' and inserting ``any action instituted under this Act, 
including an action before the Supreme Court of the United States, 
either (A) by the general counsel of the Commission and other 
attorneys''.
    (b) Effective Date.--The amendment made by paragraph (1) shall 
apply with respect to actions instituted before, on, or after the date 
of the enactment of this Act.

SEC. 8. REQUIRING FORMS TO PERMIT USE OF ACCENT MARKS.

    (a) Requirement.--Section 311(a)(1) of the Federal Election 
Campaign Act of 1971 (52 U.S.C. 30111(a)(1)) is amended by striking the 
semicolon at the end and inserting the following: ``, and shall ensure 
that all such forms (including forms in an electronic format) permit 
the person using the form to include an accent mark as part of the 
person's identification;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the expiration of the 90-day period which begins on 
the date of the enactment of this Act.

SEC. 9. EXTENSION OF THE STATUTES OF LIMITATIONS FOR OFFENSES UNDER THE 
              FEDERAL ELECTION CAMPAIGN ACT OF 1971.

    (a) Civil Offenses.--Section 309(a) of the Federal Election 
Campaign Act of 1971 (52 U.S.C. 30109(a)) is amended by inserting after 
paragraph (9) the following new paragraph:
    ``(10) No person shall be subject to a civil penalty under this 
subsection with respect to a violation of this Act unless a complaint 
is filed with the Commission with respect to the violation under 
paragraph (1), or the Commission responds to information with respect 
to the violation which is ascertained in the normal course of carrying 
out its supervisory responsibilities under paragraph (2), not later 
than 10 years after the date on which the violation occurred.''.
    (b) Criminal Offenses.--Section 406(a) of such Act (52 U.S.C. 
30145(a)) is amended by striking ``5 years'' and inserting ``10 
years''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to violations occurring on or after the date of 
enactment of this Act.

SEC. 10. EFFECTIVE DATE; TRANSITION.

    (a) In General.--Except as otherwise provided, this Act and the 
amendments made by this Act shall take effect and apply on the date of 
the enactment of this Act, without regard to whether or not the Federal 
Election Commission has promulgated regulations to carry out this Act 
and the amendments made by this Act.
    (b) Transition.--
            (1) No effect on existing cases or proceedings.--Nothing in 
        this Act or in any amendment made by this Act shall affect any 
        of the powers exercised by the Federal Election Commission 
        prior to the date of the enactment of this Act, including any 
        investigation initiated by the Commission prior to such date or 
        any proceeding (including any enforcement action) pending as of 
        such date.
            (2) Treatment of certain complaints.--If, as of the date of 
        the enactment of this Act, the general counsel of the Federal 
        Election Commission has not made any recommendation to the 
        Commission under section 309(a) of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30109) with respect to a 
        complaint filed prior to the date of the enactment of this Act, 
        this Act and the amendments made by this Act shall apply with 
        respect to the complaint in the same manner as this Act and the 
        amendments made by this Act apply with respect to a complaint 
        filed on or after the date of the enactment of this Act.
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