Ban Corporate PACs Act
Bill: H.R.2692 | Sponsor: Rep. Harder, Josh (D-CA)
Policy area: Government Operations and Politics

Summary:
Ban Corporate PACs Act
This bill prohibits for-profit corporations from establishing or operating a separate segregated political fund (commonly known as a political action committee or PAC). Existing funds must terminate not later than one year after the date of enactment of this bill.

To amend the Federal Election Campaign Act of 1971 to limit the 
authority of corporations to establish and operate separate segregated 
 funds utilized for political purposes, including the establishment or 
operation of a political committee, to nonprofit corporations, and for 
                            other purposes.

    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 ``Ban Corporate PACs Act''.

SEC. 2. LIMITING AUTHORITY OF CORPORATIONS TO ESTABLISH OR OPERATE 
              SEPARATE SEGREGATED FUNDS FOR POLITICAL PURPOSES TO 
              NONPROFIT CORPORATIONS.

    (a) Limitation.--
            (1) In general.--Section 316(b)(2)(C) of the Federal 
        Election Campaign Act of 1971 (52 U.S.C. 30118(b)(2)(C)) is 
        amended by striking ``a corporation'' and inserting ``a 
        nonprofit corporation''.
            (2) Definition.--Section 316(b) of such Act (52 U.S.C. 
        30118(b)) is amended by adding at the end the following new 
        paragraph:
    ``(8) For purposes of this section, the term `nonprofit 
corporation' means a corporation described in section 501(c) of the 
Internal Revenue Code of 1986 and exempt from taxation under section 
501(a) of such Code, other than a corporation which is ineligible to be 
exempt from taxation under section 501(a) of such Code if it 
establishes a separate segregated fund under this subsection.''.
    (b) Permitting Solicitation of Contributions Only From Executive 
and Administrative Personnel.--Section 316(b) of such Act (52 U.S.C. 
30118(b)) is amended--
            (1) in paragraph (4)(A)(i), by striking ``its stockholders 
        and their families and'';
            (2) in paragraph (4)(B)--
                    (A) by striking ``a corporation'' the first place 
                it appears and inserting ``a nonprofit corporation'';
                    (B) by striking ``any stockholder, executive or 
                administrative personnel,'' and inserting ``any 
                executive or administrative personnel''; and
                    (C) by striking ``stockholders, executive or 
                administrative personnel,'' and inserting ``executive 
                or administrative personnel'';
            (3) in paragraph (4)(D)--
                    (A) by striking ``stockholders and'';
                    (B) by striking ``such stockholders or personnel'' 
                and inserting ``such personnel''; and
                    (C) by striking ``such stockholders and personnel'' 
                and inserting ``such personnel''; and
            (4) in paragraph (5), by striking ``stockholders and''.
    (c) Treatment of Government Contractors.--Section 317(b) of such 
Act (52 U.S.C. 30119(b)) is amended--
            (1) by striking ``any corporation'' and inserting ``any 
        nonprofit corporation''; and
            (2) by striking ``a corporation'' and inserting ``a 
        nonprofit corporation''.

SEC. 3. EFFECTIVE DATE; TRANSITION FOR EXISTING FUNDS AND COMMITTEES.

    (a) Effective Date.--The amendments made by this Act shall take 
effect on the date of the enactment of this Act.
    (b) Transition for Existing Funds and Committees.--In the case of a 
separate segregate fund established and operating under section 
316(b)(2)(C) of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30118(b)(2)(C)) as of the date of the enactment of this Act which is 
not a fund of a nonprofit corporation as defined in section 316(b)(8) 
of such Act (as added by section 2(a)(2)), the fund shall terminate and 
disburse its entire balance not later than 1 year after the date of the 
enactment of this Act.
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