Ban Corporate PACs Act

Bill: 117-s-3528
Sponsor: full_name: Sen. Kelly, Mark [D-AZ]
Introduced: 2022-01-20
Policy area: Government Operations and Politics
Subjects: Corporate finance and management

Elections, voting, political campaign regulation

Public contracts and procurement

Tax-exempt organizations
Latest action: action_date: 2022-01-20
text: Read twice and referred to the Committee on Rules and Administration.

Summaries:
action_date: 2022-01-20
action_desc: Introduced in Senate
text: <p><b>Ban Corporate PACs Act </b></p> <p>This bill prohibits for-profit corporations from establishing or operating a separate segregated political fund (commonly known as a political action committee or PAC). Existing funds must terminate not later than one year after the date of enactment of this bill.</p>

tv_txt: II 117th CONGRESS 2d Session S. 3528 IN THE SENATE OF THE UNITED STATES January 20, 2022 Mr. Kelly (for himself and Mr. Ossoff ) introduced the following bill; which was read twice and referred to the Committee on Rules and Administration A BILL To amend the Federal Election Campaign Act of 1971 to limit the authority of corporations to establish and operate separate segregated funds utilized for political purposes, including the establishment or operation of a political committee, to nonprofit corporations, and for other purposes.

1. Short title This Act may be cited as the Ban Corporate PACs Act . 2. Limiting authority of corporations to establish or operate separate segregated funds for political purposes to nonprofit corporations (a) Limitation (1) In general Section 316(b)(2)(C) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30118(b)(2)(C) ) is amended by striking a corporation and inserting a nonprofit corporation . (2) Definition Section 316(b) of such Act ( 52 U.S.C. 30118(b) ) is amended by adding at the end the following new paragraph: (8) For purposes of this section, the term nonprofit corporation means a corporation described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code, other than a corporation which is ineligible to be exempt from taxation under section 501(a) of such Code if it establishes a separate segregated fund under this subsection. . (b) Permitting solicitation of contributions only from executive and administrative personnel Section 316(b) of such Act ( 52 U.S.C. 30118(b) ) is amended— (1) in paragraph (4)(A)(i), by striking its stockholders and their families and ; (2) in paragraph (4)(B)— (A) by striking a corporation the first place it appears and inserting a nonprofit corporation ; (B) by striking any stockholder, executive or administrative personnel, and inserting any executive or administrative personnel ; and (C) by striking stockholders, executive or administrative personnel, and inserting executive or administrative personnel ; (3) in paragraph (4)(D)— (A) by striking stockholders and ; (B) by striking such stockholders or personnel and inserting such personnel ; and (C) by striking such stockholders and personnel and inserting such personnel ; and (4) in paragraph (5), by striking stockholders and . (c) Treatment of government contractors Section 317(b) of such Act ( 52 U.S.C. 30119(b) ) is amended— (1) by striking any corporation and inserting any nonprofit corporation ; and (2) by striking a corporation and inserting a nonprofit corporation . 3. Effective date; transition for existing funds and committees (a) Effective date The amendments made by this Act shall take effect on the date of the enactment of this Act. (b) Transition for existing funds and committees In the case of a separate segregate fund established and operating under section 316(b)(2)(C) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30118(b)(2)(C) ) as of the date of the enactment of this Act which is not a fund of a nonprofit corporation as defined in section 316(b)(8) of such Act (as added by section 2(a)(2)), the fund shall terminate and disburse its entire balance not later than 1 year after the date of the enactment of this Act.