DISCLOSE Act of 2021
Bill: S.2671 | Sponsor: Sen. Schumer, Charles E. (D-NY)
Policy area: Government Operations and Politics

Summary:
Democracy Is Strengthened by Casting Light On Spending in Elections Act of 2021 or the DISCLOSE Act of 2021
This bill addresses campaign finance, including by expanding the prohibition on campaign spending by foreign nationals and requiring additional disclosures of campaign expenditures.
First, the bill prohibits foreign nationals from participating in the decision-making process regarding an election expenditure.
Additionally, the bill expands existing foreign money prohibitions to include disbursements for paid web-based or digital communications and federal judicial nomination communications. It also prohibits foreign nationals from contributing to campaigns related to ballot initiatives and referenda.
The Federal Election Commission (FEC) must conduct an audit after each federal election cycle to determine the incidence of illicit foreign money.
Next, the bill makes it unlawful to establish or use a corporation, company, or other entity with the intent to conceal an election contribution or donation by a foreign national. A violator is subject to criminal penalties—a fine, a prison term of up to five years, or both.
Covered organizations (e.g., corporations, labor organizations, and political organizations) must, within 24 hours, file reports with the FEC to disclose campaign expenditures of more than $10,000 during an election cycle.

To amend the Federal Election Campaign Act of 1971 to provide for 
      additional disclosure requirements for corporations, labor 
 organizations, Super PACs and other entities, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Democracy Is 
Strengthened by Casting Light On Spending in Elections Act of 2021'' or 
the ``DISCLOSE Act of 2021''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
 TITLE I--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN 
                               ELECTIONS

Sec. 101. Clarification of prohibition on participation by foreign 
                            nationals in election-related activities.
Sec. 102. Clarification of application of foreign money ban to certain 
                            disbursements and activities.
Sec. 103. Audit and report on illicit foreign money in Federal 
                            elections.
Sec. 104. Prohibition on contributions and donations by foreign 
                            nationals in connection with ballot 
                            initiatives and referenda.
Sec. 105. Disbursements and activities subject to foreign money ban.
Sec. 106. Prohibiting establishment of corporation to conceal election 
                            contributions and donations by foreign 
                            nationals.
         TITLE II--REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS

Sec. 201. Reporting of campaign-related disbursements.
Sec. 202. Application of foreign money ban to disbursements for 
                            campaign-related disbursements consisting 
                            of covered transfers.
Sec. 203. Effective date.
                TITLE III--OTHER ADMINISTRATIVE REFORMS

Sec. 301. Petition for certiorari.
Sec. 302. Judicial review of actions related to campaign finance laws.

 TITLE I--CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN 
                               ELECTIONS

SEC. 101. CLARIFICATION OF PROHIBITION ON PARTICIPATION BY FOREIGN 
              NATIONALS IN ELECTION-RELATED ACTIVITIES.

    (a) Clarification of Prohibition.--Section 319(a) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30121(a)) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(3) a foreign national to direct, dictate, control, or 
        directly or indirectly participate in the decision making 
        process of any person (including a corporation, labor 
        organization, political committee, or political organization) 
        with regard to such person's Federal or non-Federal election-
        related activity, including any decision concerning the making 
        of contributions, donations, expenditures, or disbursements in 
        connection with an election for any Federal, State, or local 
        office or any decision concerning the administration of a 
        political committee.''.
    (b) Certification of Compliance.--Section 319 of such Act (52 
U.S.C. 30121) is amended by adding at the end the following new 
subsection:
    ``(c) Certification of Compliance Required Prior to Carrying Out 
Activity.--Prior to the making in connection with an election for 
Federal office of any contribution, donation, expenditure, independent 
expenditure, or disbursement for an electioneering communication by a 
corporation, labor organization (as defined in section 316(b)), limited 
liability corporation, or partnership during a year, the chief 
executive officer of the corporation, labor organization, limited 
liability corporation, or partnership (or, if the corporation, labor 
organization, limited liability corporation, or partnership does not 
have a chief executive officer, the highest ranking official of the 
corporation, labor organization, limited liability corporation, or 
partnership), shall file a certification with the Commission, under 
penalty of perjury, that a foreign national did not direct, dictate, 
control, or directly or indirectly participate in the decision making 
process relating to such activity in violation of subsection (a)(3), 
unless the chief executive officer has previously filed such a 
certification during that calendar year.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect upon the expiration of the 180-day period which begins on the 
date of the enactment of this Act, and shall take effect without regard 
to whether or not the Federal Election Commission has promulgated 
regulations to carry out such amendments.

SEC. 102. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN 
              DISBURSEMENTS AND ACTIVITIES.

    (a) Application to Disbursements to Super PACs and Other Persons.--
Section 319(b) of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30121(b)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and by moving such 
        subparagraphs 2 ems to the right;
            (2) by striking ``As used in this section, the term 
        `foreign national' means'' and inserting the following: 
        ``Definitions.--For purposes of this section--
            ``(1) Foreign national.--The term'';
            (3) by moving paragraphs (1) and (2) two ems to the right 
        and redesignating them as subparagraphs (A) and (B), 
        respectively; and
            (4) by adding at the end the following new paragraph:
            ``(2) Contribution and donation.--For purposes of 
        paragraphs (1) and (2) of subsection (a), the term 
        `contribution or donation' includes any disbursement to a 
        political committee which accepts donations or contributions 
        that do not comply with any of the limitations, prohibitions, 
        and reporting requirements of this Act (or any disbursement to 
        or on behalf of any account of a political committee which is 
        established for the purpose of accepting such donations or 
        contributions), or to any other person for the purpose of 
        funding an expenditure, independent expenditure, or 
        electioneering communication (as defined in section 
        304(f)(3)).''.
    (b) Conditions Under Which Corporate PACs May Make Contributions 
and Expenditures.--Section 316(b) of such Act (52 U.S.C. 30118(b)) is 
amended by adding at the end the following new paragraph:
    ``(8) A separate segregated fund established by a corporation may 
not make a contribution or expenditure during a year unless the fund 
has certified to the Commission the following during the year:
            ``(A) Each individual who manages the fund, and who is 
        responsible for exercising decisionmaking authority for the 
        fund, is a citizen of the United States or is lawfully admitted 
        for permanent residence in the United States.
            ``(B) No foreign national under section 319 participates in 
        any way in the decisionmaking processes of the fund with regard 
        to contributions or expenditures under this Act.
            ``(C) The fund does not solicit or accept recommendations 
        from any foreign national under section 319 with respect to the 
        contributions or expenditures made by the fund.
            ``(D) Any member of the board of directors of the 
        corporation who is a foreign national under section 319 
        abstains from voting on matters concerning the fund or its 
        activities.''.

SEC. 103. AUDIT AND REPORT ON ILLICIT FOREIGN MONEY IN FEDERAL 
              ELECTIONS.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (52 U.S.C. 30101 et seq.) is amended by inserting after section 
319 the following new section:

``SEC. 319A. AUDIT AND REPORT ON DISBURSEMENTS BY FOREIGN NATIONALS.

    ``(a) Audit.--
            ``(1) In general.--The Commission shall conduct an audit 
        after each Federal election cycle to determine the incidence of 
        illicit foreign money in such Federal election cycle.
            ``(2) Procedures.--In carrying out paragraph (1), the 
        Commission shall conduct random audits of any disbursements 
        required to be reported under this Act, in accordance with 
        procedures established by the Commission.
    ``(b) Report.--Not later than 180 days after the end of each 
Federal election cycle, the Commission shall submit to Congress a 
report containing--
            ``(1) results of the audit required by subsection (a)(1);
            ``(2) an analysis of the extent to which illicit foreign 
        money was used to carry out disinformation and propaganda 
        campaigns focused on depressing turnout among rural communities 
        and the success or failure of these efforts, together with 
        recommendations to address these efforts in future elections;
            ``(3) an analysis of the extent to which illicit foreign 
        money was used to carry out disinformation and propaganda 
        campaigns focused on depressing turnout among African-American 
        and other minority communities and the success or failure of 
        these efforts, together with recommendations to address these 
        efforts in future elections;
            ``(4) an analysis of the extent to which illicit foreign 
        money was used to carry out disinformation and propaganda 
        campaigns focused on influencing military and veteran 
        communities and the success or failure of these efforts, 
        together with recommendations to address these efforts in 
        future elections; and
            ``(5) recommendations to address the presence of illicit 
        foreign money in elections, as appropriate.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `Federal election cycle' means the period 
        which begins on the day after the date of a regularly scheduled 
        general election for Federal office and which ends on the date 
        of the first regularly scheduled general election for Federal 
        office held after such date.
            ``(2) The term `illicit foreign money' means any 
        disbursement by a foreign national (as defined in section 
        319(b)) prohibited under such section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the Federal election cycle that began during 
November 2020, and each succeeding Federal election cycle.

SEC. 104. PROHIBITION ON CONTRIBUTIONS AND DONATIONS BY FOREIGN 
              NATIONALS IN CONNECTION WITH BALLOT INITIATIVES AND 
              REFERENDA.

    (a) In General.--Section 319(b) of the Federal Election Campaign 
Act of 1971 (52 U.S.C. 30121(b)), as amended by section 102(a), is 
amended by adding at the end the following new paragraph:
            ``(3) Federal, state, or local election.--The term 
        `Federal, State, or local election' includes a State or local 
        ballot initiative or referendum.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to elections held in 2022 or any succeeding year.

SEC. 105. DISBURSEMENTS AND ACTIVITIES SUBJECT TO FOREIGN MONEY BAN.

    (a) Disbursements Described.--Section 319(a)(1) of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)), as amended by 
section 101, is amended--
            (1) by striking ``or'' at the end of subparagraph (B); and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) an expenditure;
                    ``(D) an independent expenditure;
                    ``(E) a disbursement for an electioneering 
                communication (within the meaning of section 
                304(f)(3));
                    ``(F) a disbursement for a communication which is 
                placed or promoted for a fee on a website, web 
                application, or digital application that refers to a 
                clearly identified candidate for election for Federal 
                office and is disseminated within 60 days before a 
                general, special or runoff election for the office 
                sought by the candidate or 30 days before a primary or 
                preference election, or a convention or caucus of a 
                political party that has authority to nominate a 
                candidate for the office sought by the candidate;
                    ``(G) a disbursement for a broadcast, cable or 
                satellite communication, or for a communication which 
                is placed or promoted for a fee on a website, web 
                application, or digital application, that promotes, 
                supports, attacks or opposes the election of a clearly 
                identified candidate for Federal, State, or local 
                office (regardless of whether the communication 
                contains express advocacy or the functional equivalent 
                of express advocacy);
                    ``(H) a disbursement for a broadcast, cable, or 
                satellite communication, or for any communication which 
                is placed or promoted for a fee on an online platform, 
                that discusses a national legislative issue of public 
                importance in a year in which a regularly scheduled 
                general election for Federal office is held, but only 
                if the disbursement is made by a covered foreign 
                national;
                    ``(I) a disbursement by a covered foreign national 
                to compensate any person for internet activity that 
                promotes, supports, attacks or opposes the election of 
                a clearly identified candidate for Federal, State, or 
                local office (regardless of whether the activity 
                contains express advocacy or the functional equivalent 
                of express advocacy); or
                    ``(J) a disbursement for a Federal judicial 
                nomination communication (as defined in section 
                324(d)(3));''.
    (b) Online Platform.--Section 319(b) of such Act (51 U.S.C. 
30121(b)), as amended by sections 102(a) and 104, is amended by adding 
at the end the following new paragraphs:
            ``(4) Online platform.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `online platform' means any public-facing website, 
                web application, or digital application (including a 
                social network, ad network, or search engine) which--
                            ``(i)(I) sells qualified political 
                        advertisements; and
                            ``(II) has 50,000,000 or more unique 
                        monthly United States visitors or users for a 
                        majority of months during the preceding 12 
                        months; or
                            ``(ii) is a third-party advertising vendor 
                        that has 50,000,000 or more unique monthly 
                        United States visitors in the aggregate on any 
                        advertisement space that it has sold or bought 
                        for a majority of months during the preceding 
                        12 months, as measured by an independent 
                        digital ratings service accredited by the Media 
                        Ratings Council (or its successor).
                    ``(B) Exemption.--Such term shall not include any 
                online platform that is a distribution facility of any 
                broadcasting station or newspaper, magazine, blog, 
                publication, or periodical.
                    ``(C) Qualified political advertisement.--For 
                purposes of this paragraph, the term `qualified 
                political advertisement' means any advertisement 
                (including search engine marketing, display 
                advertisements, video advertisements, native 
                advertisements, and sponsorships) that--
                            ``(i) is made by or on behalf of a 
                        candidate; or
                            ``(ii) communicates a message relating to 
                        any political matter of national importance, 
                        including--
                                    ``(I) a candidate;
                                    ``(II) any election to Federal 
                                office; or
                                    ``(III) a national legislative 
                                issue of public importance.
                    ``(D) Third-party advertising vendor defined.--For 
                purposes of this paragraph, the term `third-party 
                advertising vendor' includes, but is not limited to, 
                any third-party advertising vendor network, advertising 
                agency, advertiser, or third-party advertisement 
                serving company that buys and sells advertisement space 
                on behalf of unaffiliated third-party websites, search 
                engines, digital applications, or social media sites.
            ``(5) Covered foreign national.--
                    ``(A) In general.--The term `covered foreign 
                national' means--
                            ``(i) a foreign principal (as defined in 
                        section 1(b) of the Foreign Agents Registration 
                        Act of 1938 (22 U.S.C. 611(b)) that is a 
                        government of a foreign country or a foreign 
                        political party;
                            ``(ii) any person who acts as an agent, 
                        representative, employee, or servant, or any 
                        person who acts in any other capacity at the 
                        order, request, or under the direction or 
                        control, of a foreign principal described in 
                        clause (i) or of a person any of whose 
                        activities are directly or indirectly 
                        supervised, directed, controlled, financed, or 
                        subsidized in whole or in major part by a 
                        foreign principal described in clause (i); or
                            ``(iii) any person included in the list of 
                        specially designated nationals and blocked 
                        persons maintained by the Office of Foreign 
                        Assets Control of the Department of the 
                        Treasury pursuant to authorities relating to 
                        the imposition of sanctions relating to the 
                        conduct of a foreign principal described in 
                        clause (i).
                    ``(B) Clarification regarding application to 
                citizens of the united states.--In the case of a 
                citizen of the United States, clause (ii) of 
                subparagraph (A) applies only to the extent that the 
                person involved acts within the scope of that person's 
                status as the agent of a foreign principal described 
                clause (i) of subparagraph (A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to disbursements made on or after the date of the 
enactment of this Act.

SEC. 106. PROHIBITING ESTABLISHMENT OF CORPORATION TO CONCEAL ELECTION 
              CONTRIBUTIONS AND DONATIONS BY FOREIGN NATIONALS.

    (a) Prohibition.--Chapter 29 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 612. Establishment of corporation to conceal election 
              contributions and donations by foreign nationals
    ``(a) Offense.--It shall be unlawful for an owner, officer, 
attorney, or incorporation agent of a corporation, company, or other 
entity to establish or use the corporation, company, or other entity 
with the intent to conceal an activity of a foreign national (as 
defined in section 319 of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30121)) prohibited under such section 319.
    ``(b) Penalty.--Any person who violates subsection (a) shall be 
imprisoned for not more than 5 years, fined under this title, or 
both.''.
    (b) Table of Sections.--The table of sections for chapter 29 of 
title 18, United States Code, is amended by inserting after the item 
relating to section 611 the following:

``612. Establishment of corporation to conceal election contributions 
                            and donations by foreign nationals.''.

         TITLE II--REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS

SEC. 201. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.

    (a) Disclosure Requirements for Corporations, Labor Organizations, 
and Certain Other Entities.--
            (1) In general.--Section 324 of the Federal Election 
        Campaign Act of 1971 (52 U.S.C. 30126) is amended to read as 
        follows:

``SEC. 324. DISCLOSURE OF CAMPAIGN-RELATED DISBURSEMENTS BY COVERED 
              ORGANIZATIONS.

    ``(a) Disclosure Statement.--
            ``(1) In general.--Any covered organization that makes 
        campaign-related disbursements aggregating more than $10,000 in 
        an election reporting cycle 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 described 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 election reporting cycle (or, if 
                earlier, the period beginning one year before the first 
                such disclosure date) and ending on the first such 
                disclosure date; and
                    ``(B) in the case of any subsequent statement filed 
                under this subsection, for the period beginning on the 
                previous disclosure date and ending on such disclosure 
                date.
            ``(2) Information described.--The information described in 
        this paragraph is as follows:
                    ``(A) The name of the covered organization and the 
                principal place of business of such organization and, 
                in the case of a covered organization that is a 
                corporation (other than a business concern that is an 
                issuer of a class of securities registered under 
                section 12 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78l) or that is required to file reports under 
                section 15(d) of that Act (15 U.S.C. 78o(d))) or an 
                entity described in subsection (e)(2), a list of the 
                beneficial owners (as defined in paragraph (4)(A)) of 
                the entity that--
                            ``(i) identifies each beneficial owner by 
                        name and current residential or business street 
                        address; and
                            ``(ii) if any beneficial owner exercises 
                        control over the entity through another legal 
                        entity, such as a corporation, partnership, 
                        limited liability company, or trust, identifies 
                        each such other legal entity and each such 
                        beneficial owner who will use that other entity 
                        to exercise control over the entity.
                    ``(B) The amount of each campaign-related 
                disbursement made by such organization during the 
                period covered by the statement of more than $1,000, 
                and the name and address of the person to whom the 
                disbursement was made.
                    ``(C) In the case of a campaign-related 
                disbursement that is not a covered transfer, the 
                election to which the campaign-related disbursement 
                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 disbursement is 
                not made in cooperation, consultation, or concert with 
                or at the request or suggestion of a candidate, 
                authorized committee, or agent of a candidate, 
                political party, or agent of a political party.
                    ``(E)(i) If the covered organization makes 
                campaign-related disbursements using exclusively funds 
                in a segregated bank account consisting of funds that 
                were paid directly to such account by persons other 
                than the covered organization that controls the 
                account, for each such payment to the account--
                            ``(I) the name and address of each person 
                        who made such payment during the period covered 
                        by the statement;
                            ``(II) the date and amount of such payment; 
                        and
                            ``(III) the aggregate amount of all such 
                        payments made by the person during the period 
                        beginning on the first day of the election 
                        reporting cycle (or, if earlier, the period 
                        beginning one year before the disclosure date) 
                        and ending on the disclosure date,
                but only if such payment was made by a person who made 
                payments to the account in an aggregate amount of 
                $10,000 or more during the period beginning on the 
                first day of the election reporting cycle (or, if 
                earlier, the period beginning one year before the 
                disclosure date) and ending on the disclosure date.
                    ``(ii) In any calendar year after 2022, section 
                315(c)(1)(B) shall apply to the amount described in 
                clause (i) in the same manner as such section applies 
                to the limitations established under subsections 
                (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, 
                except that for purposes of applying such section to 
                the amounts described in subsection (b), the `base 
                period' shall be calendar year 2022.
                    ``(F)(i) If the covered organization makes 
                campaign-related disbursements using funds other than 
                funds in a segregated bank account described in 
                subparagraph (E), for each payment to the covered 
                organization--
                            ``(I) the name and address of each person 
                        who made such payment during the period covered 
                        by the statement;
                            ``(II) the date and amount of such payment; 
                        and
                            ``(III) the aggregate amount of all such 
                        payments made by the person during the period 
                        beginning on the first day of the election 
                        reporting cycle (or, if earlier, the period 
                        beginning one year before the disclosure date) 
                        and ending on the disclosure date,
                but only if such payment was made by a person who made 
                payments to the covered organization in an aggregate 
                amount of $10,000 or more during the period beginning 
                on the first day of the election reporting cycle (or, 
                if earlier, the period beginning one year before the 
                disclosure date) and ending on the disclosure date.
                    ``(ii) In any calendar year after 2022, section 
                315(c)(1)(B) shall apply to the amount described in 
                clause (i) in the same manner as such section applies 
                to the limitations established under subsections 
                (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, 
                except that for purposes of applying such section to 
                the amounts described in subsection (b), the `base 
                period' shall be calendar year 2022.
                    ``(G) Such other information as required in rules 
                established by the Commission to promote the purposes 
                of this section.
            ``(3) Exceptions.--
                    ``(A) Amounts received in ordinary course of 
                business.--The requirement to include in a statement 
                filed under paragraph (1) the information described in 
                paragraph (2) shall not apply to amounts received by 
                the covered organization in commercial transactions in 
                the ordinary course of any trade or business conducted 
                by the covered organization or in the form of 
                investments (other than investments by the principal 
                shareholder in a limited liability corporation) in the 
                covered organization. For purposes of this 
                subparagraph, amounts received by a covered 
                organization as remittances from an employee to the 
                employee's collective bargaining representative shall 
                be treated as amounts received in commercial 
                transactions in the ordinary course of the business 
                conducted by the covered organization.
                    ``(B) Donor restriction on use of funds.--The 
                requirement to include in a statement submitted under 
                paragraph (1) the information described in subparagraph 
                (F) of paragraph (2) shall not apply if--
                            ``(i) the person described in such 
                        subparagraph prohibited, in writing, the use of 
                        the payment made by such person for campaign-
                        related disbursements; and
                            ``(ii) the covered organization agreed to 
                        follow the prohibition and deposited the 
                        payment in an account which is segregated from 
                        any account used to make campaign-related 
                        disbursements.
                    ``(C) Threat of harassment or reprisal.--The 
                requirement to include any information relating to the 
                name or address of any person (other than a candidate) 
                in a statement submitted under paragraph (1) shall not 
                apply if the inclusion of the information would subject 
                the person to serious threats, harassment, or 
                reprisals.
            ``(4) Other definitions.--For purposes of this section:
                    ``(A) Beneficial owner defined.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `beneficial owner' means, 
                        with respect to any entity, a natural person 
                        who, directly or indirectly--
                                    ``(I) exercises substantial control 
                                over an entity through ownership, 
                                voting rights, agreement, or otherwise; 
                                or
                                    ``(II) has a substantial interest 
                                in or receives substantial economic 
                                benefits from the assets of an entity.
                            ``(ii) Exceptions.--The term `beneficial 
                        owner' shall not include--
                                    ``(I) a minor child;
                                    ``(II) a person acting as a 
                                nominee, intermediary, custodian, or 
                                agent on behalf of another person;
                                    ``(III) a person acting solely as 
                                an employee of an entity and whose 
                                control over or economic benefits from 
                                the entity derives solely from the 
                                employment status of the person;
                                    ``(IV) a person whose only interest 
                                in an entity is through a right of 
                                inheritance, unless the person also 
                                meets the requirements of clause (i); 
                                or
                                    ``(V) a creditor of an entity, 
                                unless the creditor also meets the 
                                requirements of clause (i).
                            ``(iii) Anti-abuse rule.--The exceptions 
                        under clause (ii) shall not apply if used for 
                        the purpose of evading, circumventing, or 
                        abusing the provisions of clause (i) or 
                        paragraph (2)(A).
                    ``(B) Disclosure date.--The term `disclosure date' 
                means--
                            ``(i) the first date during any election 
                        reporting cycle by which a person has made 
                        campaign-related disbursements aggregating more 
                        than $10,000; and
                            ``(ii) any other date during such election 
                        reporting cycle by which a person has made 
                        campaign-related disbursements aggregating more 
                        than $10,000 since the most recent disclosure 
                        date for such election reporting cycle.
                    ``(C) Election reporting cycle.--The term `election 
                reporting cycle' means the 2-year period beginning on 
                the date of the most recent general election for 
                Federal office, except that in the case of a campaign-
                related disbursement for a Federal judicial nomination 
                communication, such term means any calendar year in 
                which the campaign-related disbursement is made.
                    ``(D) Payment.--The term `payment' includes any 
                contribution, donation, transfer, payment of dues, or 
                other payment.
    ``(b) Coordination With Other Provisions.--
            ``(1) Other reports filed with the commission.--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.
    ``(c) Filing.--Statements required to be filed under subsection (a) 
shall be subject to the requirements of section 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 Defined.--
            ``(1) In general.--In this section, the term `campaign-
        related disbursement' means a disbursement by a covered 
        organization for any of the following:
                    ``(A) An independent expenditure which expressly 
                advocates the election or defeat of a clearly 
                identified candidate for election for Federal office, 
                or is the functional equivalent of express advocacy 
                because, when taken as a whole, it can be interpreted 
                by a reasonable person only as advocating the election 
                or defeat of a candidate for election for Federal 
                office.
                    ``(B) An applicable public communication.
                    ``(C) An electioneering communication, as defined 
                in section 304(f)(3).
                    ``(D) A Federal judicial nomination communication.
                    ``(E) A covered transfer.
            ``(2) Applicable public communications.--
                    ``(A) In general.--The term `applicable public 
                communication' means any public communication that 
                refers to a clearly identified candidate for election 
                for Federal office and which promotes or supports the 
                election of a candidate for that office, or attacks or 
                opposes the election of a candidate for that office, 
                without regard to whether the communication expressly 
                advocates a vote for or against a candidate for that 
                office.
                    ``(B) Exception.--Such term shall not include any 
                news story, commentary, or editorial distributed 
                through the facilities of any broadcasting station or 
                any print, online, or digital newspaper, magazine, 
                publication, or periodical, unless such facilities are 
                owned or controlled by any political party, political 
                committee, or candidate.
            ``(3) Federal judicial nomination communication.--
                    ``(A) In general.--The term `Federal judicial 
                nomination communication' means any communication--
                            ``(i) that is by means of any broadcast, 
                        cable, or satellite, paid internet, or paid 
                        digital communication, paid promotion, 
                        newspaper, magazine, outdoor advertising 
                        facility, mass mailing, telephone bank, 
                        telephone messaging effort of more than 500 
                        substantially similar calls or electronic 
                        messages within a 30-day period, or any other 
                        form of general public political advertising; 
                        and
                            ``(ii) which promotes, supports, attacks, 
                        or opposes the nomination or Senate 
                        confirmation of an individual as a Federal 
                        judge or justice.
                    ``(B) Exception.--Such term shall not include any 
                news story, commentary, or editorial distributed 
                through the facilities of any broadcasting station or 
                any print, online, or digital newspaper, magazine, 
                publication, or periodical, unless such facilities are 
                owned or controlled by any political party, political 
                committee, or candidate.
            ``(4) Intent not required.--A disbursement for an item 
        described in subparagraph (A), (B), (C), (D), or (E) of 
        paragraph (1) shall be treated as a campaign-related 
        disbursement regardless of the intent of the person making the 
        disbursement.
    ``(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 Revenue Code of 1986).
            ``(2) A limited liability corporation that is not otherwise 
        treated as a corporation for purposes of this Act (other than 
        an organization described in section 501(c)(3) of the Internal 
        Revenue Code of 1986).
            ``(3) 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).
            ``(4) A labor organization (as defined in section 316(b)).
            ``(5) 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 (6)).
            ``(6) A political committee with an account that accepts 
        donations or contributions that do not comply with the 
        contribution limits or source prohibitions under this Act, but 
        only with respect to such accounts.
    ``(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 paying for such 
                        campaign-related disbursements;
                    ``(B) made such transfer or payment in response to 
                a solicitation or other request for a donation or 
                payment for--
                            ``(i) the making of or paying for campaign-
                        related disbursements (other than covered 
                        transfers); or
                            ``(ii) making a transfer to another person 
                        for the purpose of making or paying for such 
                        campaign-related disbursements;
                    ``(C) engaged in discussions with the recipient of 
                the transfer or payment regarding--
                            ``(i) the making of or paying for campaign-
                        related disbursements (other than covered 
                        transfers); or
                            ``(ii) donating or transferring any amount 
                        of such transfer or payment to another person 
                        for the purpose of making or paying for such 
                        campaign-related disbursements;
                    ``(D) made campaign-related disbursements (other 
                than a covered transfer) in an aggregate 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 that the person receiving the transfer or 
                payment made such disbursements in such an aggregate 
                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 aggregate 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 a commercial transaction in the ordinary course of 
                any trade or business conducted by the covered 
                organization or in the form of investments made by the 
                covered organization.
                    ``(B) A disbursement made by a covered organization 
                if--
                            ``(i) the covered organization prohibited, 
                        in writing, the use of such disbursement for 
                        campaign-related disbursements; and
                            ``(ii) the recipient of the disbursement 
                        agreed to follow the prohibition and deposited 
                        the disbursement in an account which is 
                        segregated from any account used to make 
                        campaign-related disbursements.
            ``(3) Special rule regarding transfers among affiliates.--
                    ``(A) Special rule.--A transfer of an amount by one 
                covered organization to another covered organization 
                which is treated as a transfer between affiliates under 
                subparagraph (C) shall be considered a covered transfer 
                by the covered organization which transfers the amount 
                only if the aggregate amount transferred during the 
                year by such covered organization to that same covered 
                organization is equal to or greater than $50,000.
                    ``(B) Determination of amount of certain payments 
                among affiliates.--In determining the amount of a 
                transfer between affiliates for purposes of 
                subparagraph (A), to the extent that the transfer 
                consists of funds attributable to dues, fees, or 
                assessments which are paid by individuals on a regular, 
                periodic basis in accordance with a per-individual 
                calculation which is made on a regular basis, the 
                transfer shall be attributed to the individuals paying 
                the dues, fees, or assessments and shall not be 
                attributed to the covered organization.
                    ``(C) Description of transfers between 
                affiliates.--A transfer of amounts from one covered 
                organization to another covered organization shall be 
                treated as a transfer between affiliates if--
                            ``(i) one of the organizations is an 
                        affiliate 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 organizations 
                is established for the purpose of making campaign-
                related disbursements.
                    ``(D) Determination of affiliate status.--For 
                purposes of subparagraph (C), a covered organization is 
                an affiliate of another covered organization if--
                            ``(i) the governing instrument of the 
                        organization requires it to be bound by 
                        decisions of the other organization;
                            ``(ii) the governing board of the 
                        organization includes persons who are 
                        specifically 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.
                    ``(E) Coverage of transfers to affiliated section 
                501(c)(3) organizations.--This paragraph shall apply 
                with respect to an amount transferred by a covered 
                organization to an organization described in paragraph 
                (3) of section 501(c) of the Internal Revenue Code of 
                1986 and exempt from tax under section 501(a) of such 
                Code in the same manner as this paragraph applies to an 
                amount transferred by a covered organization to another 
                covered organization.
    ``(g) No Effect on Other Reporting Requirements.--Nothing in this 
section shall be construed to waive or otherwise affect any other 
requirement of this Act which relates to the reporting of campaign-
related disbursements.''.
            (2) Conforming amendment.--Section 304(f)(6) of such Act 
        (52 U.S.C. 30104) is amended by striking ``Any requirement'' 
        and inserting ``Except as provided in section 324(b), any 
        requirement''.
    (b) Coordination With FinCEN.--
            (1) In general.--The Director of the Financial Crimes 
        Enforcement Network of the Department of the Treasury shall 
        provide the Federal Election Commission with such information 
        as necessary to assist in administering and enforcing section 
        324 of the Federal Election Campaign Act of 1971, as amended by 
        this section.
            (2) Report.--Not later than 6 months after the date of the 
        enactment of this Act, the Chairman of the Federal Election 
        Commission, in consultation with the Director of the Financial 
        Crimes Enforcement Network of the Department of the Treasury, 
        shall submit to Congress a report with recommendations for 
        providing further legislative authority to assist in the 
        administration and enforcement of such section 324.

SEC. 202. APPLICATION OF FOREIGN MONEY BAN TO DISBURSEMENTS FOR 
              CAMPAIGN-RELATED DISBURSEMENTS CONSISTING OF COVERED 
              TRANSFERS.

    Section 319(b)(2) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30121(a)(1)(A)), as amended by section 102, is amended--
            (1) by striking ``includes any disbursement'' and inserting 
        ``includes--
                    ``(A) any disbursement'';
            (2) by striking the period at the end and inserting ``; 
        and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(B) any disbursement, other than a disbursement 
                described in section 324(a)(3)(A), to another person 
                who made a campaign-related disbursement consisting of 
                a covered transfer (as described in section 324) during 
                the 2-year period ending on the date of the 
                disbursement.''.

SEC. 203. EFFECTIVE DATE.

    The amendments made by this title shall apply with respect to 
disbursements made on or after January 1, 2022, and shall take effect 
without regard to whether or not the Federal Election Commission has 
promulgated regulations to carry out such amendments.

                TITLE III--OTHER ADMINISTRATIVE REFORMS

SEC. 301. PETITION FOR CERTIORARI.

    Section 307(a)(6) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30107(a)(6)) is amended by inserting ``(including a proceeding 
before the Supreme Court on certiorari)'' after ``appeal''.

SEC. 302. JUDICIAL REVIEW OF ACTIONS RELATED TO CAMPAIGN FINANCE LAWS.

    (a) In General.--Title IV of the Federal Election Campaign Act of 
1971 (52 U.S.C. 30141 et seq.) is amended by inserting after section 
406 the following new section:

``SEC. 407. JUDICIAL REVIEW.

    ``(a) In General.--If any action is brought for declaratory or 
injunctive relief to challenge, whether facially or as-applied, the 
constitutionality or lawfulness of any provision of this Act or of 
chapter 95 or 96 of the Internal Revenue Code of 1986, or is brought to 
with respect to any action of the Commission under chapter 95 or 96 of 
the Internal Revenue Code of 1986, the following rules shall apply:
            ``(1) The action shall be filed in the United States 
        District Court for the District of Columbia and an appeal from 
        the decision of the district court may be taken to the Court of 
        Appeals for the District of Columbia Circuit.
            ``(2) In the case of an action relating to declaratory or 
        injunctive relief to challenge the constitutionality of a 
        provision, the party filing the action shall concurrently 
        deliver a copy of the complaint to the Clerk of the House of 
        Representatives and the Secretary of the Senate.
            ``(3) It shall be the duty of the United States District 
        Court for the District of Columbia and the Court of Appeals for 
        the District of Columbia Circuit to advance on the docket and 
        to expedite to the greatest possible extent the disposition of 
        the action and appeal.
    ``(b) Clarifying Scope of Jurisdiction.--If an action at the time 
of its commencement is not subject to subsection (a), but an amendment, 
counterclaim, cross-claim, affirmative defense, or any other pleading 
or motion is filed challenging, whether facially or as-applied, the 
constitutionality or lawfulness of this Act or of chapter 95 or 96 of 
the Internal Revenue Code of 1986, or is brought to with respect to any 
action of the Commission under chapter 95 or 96 of the Internal Revenue 
Code of 1986, the district court shall transfer the action to the 
District Court for the District of Columbia, and the action shall 
thereafter be conducted pursuant to subsection (a).
    ``(c) Intervention by Members of Congress.--In any action described 
in subsection (a) relating to declaratory or injunctive relief to 
challenge the constitutionality of a provision, any Member of the House 
of Representatives (including a Delegate or Resident Commissioner to 
the Congress) or Senate shall have the right to intervene either in 
support of or opposition to the position of a party to the case 
regarding the constitutionality of the provision. To avoid duplication 
of efforts and reduce the burdens placed on the parties to the action, 
the court in any such action may make such orders as it considers 
necessary, including orders to require interveners taking similar 
positions to file joint papers or to be represented by a single 
attorney at oral argument.
    ``(d) Challenge by Members of Congress.--Any Member of Congress may 
bring an action, subject to the special rules described in subsection 
(a), for declaratory or injunctive relief to challenge, whether 
facially or as-applied, the constitutionality of any provision of this 
Act or chapter 95 or 96 of the Internal Revenue Code of 1986.''.
    (b) Conforming Amendments.--
            (1) Section 9011 of the Internal Revenue Code of 1986 is 
        amended to read as follows:

``SEC. 9011. JUDICIAL REVIEW.

    ``For provisions relating to judicial review of certifications, 
determinations, and actions by the Commission under this chapter, see 
section 407 of the Federal Election Campaign Act of 1971.''.
            (2) Section 9041 of the Internal Revenue Code of 1986 is 
        amended to read as follows:

``SEC. 9041. JUDICIAL REVIEW.

    ``For provisions relating to judicial review of actions by the 
Commission under this chapter, see section 407 of the Federal Election 
Campaign Act of 1971.''.
            (3) Section 310 of the Federal Election Campaign Act of 
        1971 (52 U.S.C. 30110) is repealed.
            (4) Section 403 of the Bipartisan Campaign Reform Act of 
        2002 (52 U.S.C. 30110 note) is repealed.
    (c) Effective Date.--The amendments made by this section shall 
apply to actions brought on or after January 1, 2021.

                         TITLE IV--SEVERABILITY

SEC. 401. SEVERABILITY.

    If any provision of this Act or amendment made by this Act, or the 
application of a provision or amendment to any person or circumstance, 
is held to be unconstitutional, the remainder of this Act and 
amendments made by this Act, and the application of the provisions and 
amendment to any person or circumstance, shall not be affected by the 
holding.
                                                       Calendar No. 120

117th CONGRESS

  1st Session

                                S. 2671

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