SCAM PAC Act
Bill: H.R.6494 | Sponsor: Rep. Malinowski, Tom (D-NJ)
Policy area: Government Operations and Politics

Summary:
Stopping Corrupt Actors from Making Political Action Committees Act or the SCAM PAC Act
This bill generally prohibits a political committee from disbursing funds to an entity that is owned or controlled by an individual, or the immediate family member of an individual, who has authority to carry out specified activities for the committee (e.g., soliciting funds) or is employed by the committee to provide it with professional services. This prohibition does not apply to (1) a political committee that certifies that a majority of the funds disbursed by the committee were for expenses other than administrative costs, fundraising costs, and employee salaries; or (2) an authorized committee of a candidate, a committee of a political party, or a separate segregated fund of a corporation or labor organization.
Further, the bill prohibits a political committee from employing these individuals or allowing them to volunteer on its behalf if the related entity accepted funds from a political committee.

To prohibit the disbursement of funds to entities owned or controlled 
    by individuals with executive or managerial authority over the 
      operations of political committees, 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 ``Stopping Corrupt Actors from Making 
Political Action Committees Act'' or the ``SCAM PAC Act''.

SEC. 2. PROHIBITION ON DISBURSEMENT OF FUNDS TO ENTITIES OWNED OR 
              CONTROLLED BY INDIVIDUALS WITH AUTHORITY OVER OPERATIONS 
              OF POLITICAL COMMITTEES.

    (a) In General.--Section 302 of the Federal Election Campaign Act 
of 1971 (52 U.S.C. 30102) is amended by adding at the end the following 
new subsection:
    ``(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 
an immediate family member of an individual--
            ``(A) who is authorized to carry out executive or 
        managerial authority over the operation of the committee;
            ``(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 committee with professional 
        services (other than accounting or legal services) relating to 
        the committee'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 disbursements 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 the committee 
includes in the report a true and accurate certification, under penalty 
of perjury, that a majority of the funds disbursed by the committee 
during the period were for expenses other than administrative costs, 
fundraising costs, and salaries of employees of the committee.
    ``(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 corporation or labor 
        organization under section 316(b)(2)(C).
    ``(5) In this subsection, the term `immediate family member' means, 
with respect to an individual, a parent, parent-in law, grandparent, 
child, child-in law, grandchild, spouse, or sibling.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to disbursements made on or after the date that is 
90 days after the date of enactment of this Act.
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