Title: Stop Secret Foreign Interference in Elections Act
Policy area: Government Operations and Politics

Summary:
Stop Secret Foreign Interference in Elections Act
This bill requires certain corporations, nonprofit organizations, political organizations, and other organizations to disclose to the Federal Election Commission specified information, such as information regarding (1) recipients of campaign-related disbursements of a certain size, and (2) funds received from foreign nationals.
The bill also requires (1) a principal officer of a such an entity to certify that, to the officer's knowledge, certain types of expenditures and disbursements were not made with funds provided by a foreign national; and (2) certain tax-exempt organizations to report the receipt of disqualified foreign contributions.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2966 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2966

  To amend the Federal Election Campaign Act of 1971 to require donor 
 disclosure for certain organizations accepting donations from foreign 
                   nationals, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2018

Mr. Whitehouse (for himself, Mr. Durbin, and Mr. Blumenthal) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Election Campaign Act of 1971 to require donor 
 disclosure for certain organizations accepting donations from foreign 
                   nationals, 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 ``Stop Secret Foreign Interference in 
Elections Act''.

SEC. 2. DONOR DISCLOSURE FOR CERTAIN ORGANIZATIONS ACCEPTING DONATIONS 
              FROM FOREIGN NATIONALS.

    (a) 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. DONOR DISCLOSURE FOR CERTAIN ORGANIZATIONS ACCEPTING 
              DONATIONS FROM FOREIGN NATIONALS.

    ``(a) Definitions.--In this section:
            ``(1) Campaign-related disbursement.--
                    ``(A) In general.--The term `campaign-related 
                disbursement' means a disbursement by a covered 501(c) 
                organization for any of the following:
                            ``(i) An independent expenditure consisting 
                        of a public communication.
                            ``(ii) An electioneering communication, as 
                        defined in section 304(f)(3).
                            ``(iii) A covered transfer.
                    ``(B) Intent not required.--A disbursement for an 
                item described in clause (i), (ii), or (iii) of 
                subparagraph (A) shall be treated as a campaign-related 
                disbursement regardless of the intent of the person 
                making the disbursement.
            ``(2) Covered 501(c) organization.--The term `covered 
        501(c) organization' means any organization that--
                    ``(A) is 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 an 
                organization described in section 501(c)(3) of such 
                Code); and
                    ``(B) has received contributions or donations in 
                excess of $2,000 during the election reporting cycle 
                from a foreign national.
            ``(3) Covered transfer.--The term `covered transfer' means 
        a transfer described in subsection (e).
            ``(4) Disclosure date.--The term `disclosure date' means--
                    ``(A) the first date during any election reporting 
                cycle by which a person--
                            ``(i) has received contributions or 
                        donations in excess of $2,000 from a foreign 
                        national; and
                            ``(ii) has made campaign-related 
                        disbursements aggregating more than $10,000; 
                        and
                    ``(B) any other date during such election reporting 
                cycle by which a covered 501(c) organization has made 
                campaign-related disbursements aggregating more than 
                $10,000 since the most recent disclosure date for such 
                election reporting cycle.
            ``(5) 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.
            ``(6) Foreign national.--The term `foreign national' has 
        the meaning given such term under section 319.
            ``(7) Payment.--The term `payment' includes any 
        contribution, donation, transfer, payment of dues, or other 
        payment.
    ``(b) Disclosure Statement.--
            ``(1) In general.--Any covered 501(c) 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 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 501(c) organization.
                    ``(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) For each payment to the covered 501(c) 
                organization by a foreign national--
                            ``(i) the name and address of the foreign 
                        national 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 foreign national during 
                        the period beginning on the first day of the 
                        election reporting cycle and ending on the 
                        disclosure date,
                but only if such payment was made by a foreign national 
                who made payments to the covered 501(c) organization in 
                an aggregate amount of $2,000 or more during the period 
                beginning on the first day of the election reporting 
                cycle and ending on the disclosure date.
                    ``(E) Such other information as required in rules 
                established by the Commission to promote the purposes 
                of this section.
            ``(3) Exceptions for amounts received from affiliates.--The 
        requirement to include in a statement submitted under paragraph 
        (1) the information described in subparagraph (D) of paragraph 
        (2) shall not apply to any amount which is described in 
        subsection (e)(2)(A)(i).
    ``(c) Coordination With 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.
    ``(d) 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.
    ``(e) Covered Transfer Defined.--
            ``(1) In general.--In this section, the term `covered 
        transfer' means any transfer or payment of funds by a covered 
        501(c) organization to another person if the covered 501(c) 
        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) Exception for certain transfers among affiliates.--
                    ``(A) Exception for certain transfers among 
                affiliates.--
                            ``(i) In general.--The term `covered 
                        transfer' does not include an amount 
                        transferred by one covered 501(c) organization 
                        to another covered 501(c) organization if such 
                        transfer is treated as a transfer between 
                        affiliates under subparagraph (B).
                            ``(ii) Special rule.--If the aggregate 
                        amount of transfers described in clause (i) 
                        exceeds $50,000 in any election reporting 
                        cycle--
                                    ``(I) the covered 501(c) 
                                organization which makes such transfers 
                                shall provide to the covered 501(c) 
                                organization receiving such transfers 
                                the information required under 
                                subsection (b)(2)(D) (applied by 
                                substituting `the period beginning on 
                                the first day of the election reporting 
                                cycle and ending on the date of the 
                                most recent transfer described in 
                                subsection (e)(2)(A)(i)' for `the 
                                period covered by the statement' in 
                                clause (i) thereof); and
                                    ``(II) the covered 501(c) 
                                organization receiving such transfers 
                                shall report the information described 
                                in subclause (I) on any statement filed 
                                under subsection (a)(1) as if any 
                                contribution, donation, or transfer to 
                                which such information relates was made 
                                directly to the covered 501(c) 
                                organization receiving the transfer.
                    ``(B) Description of transfers between 
                affiliates.--A transfer of amounts from one covered 
                501(c) organization to another covered 501(c) 
                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.
                    ``(C) Determination of affiliate status.--For 
                purposes of this paragraph, the following organizations 
                shall be considered to be affiliated with each other:
                            ``(i) A membership organization, including 
                        a trade or professional association, and the 
                        related State and local entities of that 
                        organization.
                            ``(ii) A national or international labor 
                        organization and its State or local unions, or 
                        an organization of national or international 
                        unions and its State and local entities.
                    ``(D) Coverage of transfers to affiliated section 
                501(c)(3) organizations.--This paragraph shall apply 
                with respect to an amount transferred by a covered 
                501(c) 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 501(c) 
                organization to another covered 501(c) organization.''.
    (b) 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(c), any requirement''.
    (c) 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 added by 
        this subsection.
            (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.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to disbursements made on or after January 1, 2019, 
and shall take effect without regard to whether or not the Federal 
Election Commission has promulgated regulations to carry out such 
amendments.

SEC. 3. DUE DILIGENCE REQUIREMENTS.

    (a) Certification.--
            (1) In general.--Title III of the Federal Election Campaign 
        Act of 1971 (52 U.S.C. 30101 et seq.) is amended by adding at 
        the end the following new section:

``SEC. 325. CERTIFICATIONS.

    ``(a) Requirement To File Certification.--
            ``(1) In general.--Each covered organization that makes a 
        report under section 304 with respect to an independent 
        expenditure or a disbursement for the direct costs of producing 
        an electioneering communication shall include with such report 
        a certification described in subsection (b).
            ``(2) Covered 501(c) organizations.--Each covered 501(c) 
        organization (within the meaning of section 324) that makes a 
        report under section 324 with respect to a campaign-related 
        disbursement shall include with such report a certification 
        described in subsection (b).
    ``(b) Certification.--
            ``(1) In general.--A certification is described in this 
        subsection if the certification is made by the principal 
        executive officer or officers and the principal financial 
        officer or officers of such covered organization, or persons 
        performing similar functions, stating that--
                    ``(A) the signing officer has reviewed the report;
                    ``(B) the organization has met the due diligence 
                requirements under paragraph (2); and
                    ``(C) based on the officer's knowledge, none of the 
                funds used to make any expenditure or disbursement 
                described in the report or statement were provided by a 
                foreign national (as defined in section 319).
            ``(2) Due diligence requirement.--
                    ``(A) In general.--The due diligence requirement 
                under this paragraph shall be met if the organization 
                affirmatively verifies that each contribution or 
                donation received by the organization during the 2-year 
                period ending on the date of the expenditure or 
                disbursement described in subsection (a) was not a 
                contribution or donation that was made, directly or 
                indirectly, by a foreign national (within the meaning 
                of section 319).
                    ``(B) Use of segregated account.--In the case of an 
                organization with a separate segregated account from 
                which the expenditure or disbursement described in 
                subsection (a) was made, subparagraph (A) shall be 
                applied only with respect to contributions and 
                donations made to such account.
    ``(c) Covered Organization Defined.--In this subsection, 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.''.
            (2) Effective date.--The amendment made by subsection (a) 
        shall apply to reports required to be filed after the date of 
        the enactment of this Act.
    (b) Reporting of Suspicious Donations.--
            (1) Covered 501(c)  organizations.--
                    (A) In general.--Section 501 of the Internal 
                Revenue Code of 1986 is amended by adding at the end 
                the following new subsection:
    ``(s) Requirement To Report Certain Contributions.--
            ``(1) In general.--No organization described in subsection 
        (c) (other than an organization described in paragraph (3) 
        thereof) shall be exempt from tax under subsection (a) unless 
        such organization reports any disqualified foreign 
        contribution, not later than 15 days after receiving such 
        contribution, to the entities listed in paragraph (3).
            ``(2) Disqualified foreign contribution.--For purposes of 
        this subsection, the term `disqualified foreign contribution' 
        means any donation or contribution received from foreign 
        national (within the meaning of section 319 of the Federal 
        Election Campaign Act of 1971) and which is made or received 
        for a purpose described in section 319(a) of such Act.
            ``(3) Entities.--The entities described in this paragraph 
        are the following:
                    ``(A) The Internal Revenue Service.
                    ``(B) The Federal Election Commission.
                    ``(C) The Financial Crimes Enforcement Network of 
                the Department of Treasury.
                    ``(D) The Department of Justice.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to contributions made after the 
                date of the enactment of this Act.
            (2) Corporate entities.--
                    (A) In general.--Each corporation and each limited 
                liability corporation that is not otherwise treated as 
                a corporation under the Federal Election Campaign Act 
                of 1971 shall report any disqualified foreign 
                contribution (as defined in section 501(s) of the 
                Internal Revenue Code of 1986), not later than 15 days 
                after receiving such contribution, to the following 
                entities:
                            (i) The Federal Election Commission.
                            (ii) The Financial Crimes Enforcement 
                        Network of the Department of Treasury.
                            (iii) The Department of Justice.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                any entity that is an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986.
                    (C) Criminal penalty.--Any person who fails to make 
                a report under subparagraph (A) shall be guilty of a 
                misdemeanor and, upon conviction thereof, shall be 
                fined not more than $100,000, or imprisoned not more 
                than 1 year, or both, together with the costs of 
                prosecution.
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