Honest Elections and Campaign, No Gain Act
Bill: H.R.2388 | Sponsor: Rep. Castor, Kathy (D-FL)
Policy area: Government Operations and Politics

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.

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.

    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 ``Honest Elections and Campaign, No 
Gain Act''.

SEC. 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.) is amended by inserting 
after section 303 the following new section:

``SEC. 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); or
                    ``(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' is, with respect to a 
        candidate seeking election for an office, the 2-year period 
        which begins on the day after the latest date on which an 
        individual may provide 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 such office.
    ``(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) of the Internal Revenue 
                Code of 1986.
                    ``(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' means, with respect to a candidate, an individual 
        who is related to the candidate as father, mother, son, 
        daughter, brother, sister, uncle, aunt, first cousin, nephew, 
        niece, husband, wife, father-in-law, mother-in-law, son-in-law, 
        daughter-in-law, brother-in-law, sister-in-law, stepfather, 
        stepmother, stepson, stepdaughter, stepbrother, stepsister, 
        half brother, or half sister.
    ``(d) Definition.--In this section, the term `leadership PAC' has 
the meaning given such term in section 304(i)(8)(B).''.
    (b) Conforming Amendment Relating to Permitted Uses of 
Contributions.--Section 313(a) of such Act (52 U.S.C. 30114(a)) is 
amended by striking ``A contribution'' and inserting ``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 2022 and each succeeding election for 
Federal office.

SEC. 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)) is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) 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 2022.

SEC. 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)) is 
amended--
            (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 2022.
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