DISCLOSE Act of 2023

Federal

Source: Congress.gov · 13,915 words in original text

What This Bill Does

This bill requires corporations, labor organizations, Super PACs and similar groups to disclose who is funding their political spending. It closes loopholes that allow foreign money to secretly influence U.S. elections and requires organizations to reveal their major donors when they run political advertisements. ##

Who It Affects

- Corporations (except tax-exempt charitable organizations) - Labor organizations (unions) - Limited liability companies - Tax-exempt organizations that engage in political activity - Super PACs and similar political groups - Political organizations and committees with unrestricted donation accounts - Foreign nationals and foreign governments - People and companies that pay for political advertisements - The Federal Election Commission - Congress members and courts ##

Key Provisions

- Any corporation, labor organization or similar group spending more than $10,000 on political activity must file detailed reports within 24 hours, identifying all donors who gave $10,000 or more during the election cycle, along with the amount each gave. (Sec. 201) - Organizations must disclose the names and addresses of their "beneficial owners" (people who actually control or benefit from the organization) when they file political spending reports, unless disclosure would subject people to serious threats or harassment. (Sec. 201) - Foreign nationals and foreign governments are banned from spending money on political advertisements, online communications, and activities designed to influence U.S. elections at any level, including state and local ballot measures. (Sec. 104) - Political advertisements and communications paid for by organizations must include a disclaimer stating who paid for the ad and listing the top five funders (or top two funders for audio ads), along with the dollar amounts they contributed. (Sec. 402) - It becomes a federal crime, punishable by up to 5 years in prison, to set up a corporation or company with the intent to hide foreign money flowing into U.S. elections. (Sec. 105) - Organizations must file separate reports about spending on federal court nomination campaigns using the same disclosure rules as regular political spending. (Sec. 202) - Federal courts must prioritize and expedite cases challenging the constitutionality of this law, with appeals going directly to the U.S. Court of Appeals for the District of Columbia Circuit. (Sec. 302) ##

What Changes

If this bill becomes law, organizations that spend money on elections will have to publicly identify who is funding them within 24 hours of hitting $10,000 in spending. Voters will see on political ads who the top funders are and how much they gave. Foreign nationals will face stricter bans on election spending with expanded definitions of what counts as illegal foreign money. The Federal Election Commission will conduct studies every four years on foreign money in elections through 2032. Organizations will no longer be able to hide their true owners when reporting political spending. ##

Important Definitions

- **Campaign-related disbursement**: Money spent on independent expenditures (ads directly supporting or opposing candidates), public communications about clearly identified candidates, electioneering communications (issue ads close to elections), or money transferred to other groups for these purposes. - **Covered organization**: Corporations, limited liability companies, tax-exempt organizations engaged in politics, labor unions, and political groups with unrestricted donation accounts. - **Beneficial owner**: A person who directly or indirectly controls an organization through ownership, voting rights, agreements, or who receives substantial money or benefits from it. Does not include minor children, employees acting only in job capacity, people acting as agents for others, or creditors. - **Covered transfer**: Money one political organization gives to another organization if the first organization asks for it to be used for political spending, receives it in response to a request for political spending money, discusses political spending with the recipient, or knows the recipient will make political spending of $50,000 or more in the next two years. - **Covered foreign national**: A foreign government, foreign political party, agents of those entities, or people directly controlled or funded by foreign governments or political parties. - **Foreign national**: Any non-U.S. citizen or non-green card holder, foreign government, foreign political party, foreign corporation or partnership, or agent of any of these. - **Election reporting cycle**: The 2-year period beginning with the most recent general federal election. - **Top Five Funders list**: The five largest donors who gave $10,000 or more in the past 12 months and the amounts they gave. - **Top Two Funders list**: The two largest donors who gave $10,000 or more in the past 12 months and the amounts they gave. ##

Effective Date

Most provisions take effect January 1, 2024. (Sec. 206) Rules about covering foreign nationals in state and local ballot measures begin with elections held in 2024 or later. (Sec. 103) Provisions about judicial review take effect immediately upon enactment. (Sec. 303)

I 118TH CONGRESS 1ST SESSION H. R. 1118 To amend the Federal Election Campaign Act of 1971 to provide for addi- tional disclosure requirements for corporations, labor organizations, Super PACs and other entities, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 21, 2023 Mr. CICILLINE (for himself, Mr. MULLIN, Ms. WASSERMAN SCHULTZ, Ms. MCCOLLUM, Mr. NADLER, Mrs. BEATTY, Ms. DEAN of Pennsylvania, Mrs. WATSON COLEMAN, Mr. DOGGETT, Mr. PAYNE, Ms. BARRAGA´N, Mr. KIM of New Jersey, Mr. MFUME, Mr. COHEN, Mr. TAKANO, Mr. SCHIFF, Mr. JOHNSON of Georgia, Ms. TLAIB, Mr. CARSON, Mr. LARSON of Connecticut, Mr. AUCHINCLOSS, Mr. COSTA, Ms. BROWNLEY, Mr. GOLDEN of Maine, Mr. ALLRED, Ms. NORTON, Mr. CARBAJAL, Mr. DAVIS of Illinois, Mr. KILMER, Mr. CLEAVER, Ms. ESCOBAR, Mr. DAVID SCOTT of Georgia, Mr. SWALWELL, Mr. MOULTON, Ms. STEVENS, Mr. TONKO, Mr. CASTRO of Texas, Mr. GARAMENDI, Mr. BOYLE of Pennsyl- vania, Ms. CASTOR of Florida, Mr. VARGAS, Mr. TORRES of New York, Ms. BONAMICI, Mr. BLUMENAUER, Mr. VEASEY, Mr. DESAULNIER, Mrs. DINGELL, Mr. BERA, Ms. SA´NCHEZ, Mr. POCAN, Ms. CHU, Ms. STRICK- LAND, Ms. TOKUDA, Mr. LEVIN, Ms. ROSS, Mr. SMITH of Washington, Mr. STANTON, Mr. QUIGLEY, Ms. SCHRIER, Mr. DELUZIO, Mr. CASAR, Ms. BLUNT ROCHESTER, Mr. PHILLIPS, Ms. HOYLE of Oregon, Mrs. TRAHAN, Mr. GOTTHEIMER, Mr. CROW, Mr. LIEU, Mr. HIMES, Ms. TITUS, Mr. MCGOVERN, Mr. BISHOP of Georgia, Mr. MAGAZINER, Mr. MORELLE, Ms. PORTER, Mr. EVANS, Mr. SARBANES, Ms. SLOTKIN, Mr. BOWMAN, Mr. RASKIN, Mr. GREEN of Texas, Mr. HIGGINS of New York, Mrs. HAYES, Mr. GARCI´A of Illinois, Mr. CASTEN, Mr. HUFFMAN, Ms. WILSON of Florida, Ms. DELBENE, Ms. KUSTER, Ms. MENG, Mr. CASE, Ms. MANNING, Ms. MATSUI, Ms. SALINAS, Mr. COURTNEY, Ms. STANSBURY, Mr. RUPPERSBERGER, Mr. CARTER of Louisiana, Mr. THOMPSON of California, Mr. CA´RDENAS, Ms. DEGETTE, Ms. WILLIAMS of Georgia, Mrs. MCBATH, Ms. GARCIA of Texas, Ms. KAPTUR, Mr. TRONE, Mr. GRIJALVA, Mr. GALLEGO, Ms. SCHAKOWSKY, and Ms. JAYAPAL) introduced the following bill; which was referred to the Com- mittee on House Administration, and in addition to the Committees on Ways and Means, and the Judiciary, for a period to be subsequently de- termined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1118 IH A BILL To amend the Federal Election Campaign Act of 1971 to provide for additional disclosure requirements for cor- porations, labor organizations, Super PACs and other entities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Democracy Is Strengthened by Casting Light On Spend- 5 ing in Elections Act of 2023’’ or the ‘‘DISCLOSE Act 6 of 2023’’. 7 (b) TABLE OF CONTENTS.—The table of contents of 8 this Act is as follows: 9 Sec. 1. Short title; table of contents. Sec. 2. Findings. TITLE I—CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN ELECTIONS Sec. 101. Clarification of application of foreign money ban to certain disburse- ments and activities. Sec. 102. Study and report on illicit foreign money in Federal elections. Sec. 103. Prohibition on contributions and donations by foreign nationals in connection with ballot initiatives and referenda. Sec. 104. Disbursements and activities subject to foreign money ban. Sec. 105. Prohibiting establishment of corporation to conceal election contribu- tions and donations by foreign nationals. TITLE II—REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS Sec. 201. Reporting of campaign-related disbursements. Sec. 202. Reporting of Federal judicial nomination disbursements. Sec. 203. Coordination with FinCEN. Sec. 204. Application of foreign money ban to disbursements for campaign-re- lated disbursements consisting of covered transfers. Sec. 205. Sense of Congress regarding implementation. Sec. 206. Effective date. TITLE III—OTHER ADMINISTRATIVE REFORMS VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1118 IH Sec. 301. Petition for certiorari. Sec. 302. Judicial review of actions related to campaign finance laws. Sec. 303. Effective date. TITLE IV—STAND BY EVERY AD Sec. 401. Short title. Sec. 402. Stand by every ad. Sec. 403. Disclaimer requirements for communications made through prerecorded telephone calls. Sec. 404. No expansion of persons subject to disclaimer requirements on inter- net communications. Sec. 405. Effective date. TITLE V—SEVERABILITY Sec. 501. Severability. SEC. 2. FINDINGS. 1 Congress finds the following: 2 (1) Campaign finance disclosure is a narrowly 3 tailored and minimally restrictive means to advance 4 substantial government interests, including fostering 5 an informed electorate capable of engaging in self- 6 government and holding their elected officials ac- 7 countable, detecting and deterring quid pro quo cor- 8 ruption, and identifying information necessary to en- 9 force other campaign finance laws, including cam- 10 paign contribution limits and the prohibition on for- 11 eign money in U.S. campaigns. To further these 12 substantial interests, campaign finance disclosure 13 must be timely and complete, and must disclose the 14 true and original source of money given, transferred, 15 and spent to influence Federal elections. Current law 16 does not meet this objective because corporations 17 and other entities that the Supreme Court has per- 18 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1118 IH mitted to spend money to influence Federal elections 1 are subject to few if any transparency requirements. 2 (2) As the Supreme Court recognized in its per 3 curiam opinion in Buckley v. Valeo, 424 U.S. 1, 4 (1976), ‘‘disclosure requirements certainly in most 5 applications appear to be the least restrictive means 6 of curbing the evils of campaign ignorance and cor- 7 ruption that Congress found to exist.’’ Buckley, 424 8 U.S. at 68. In Citizens United v. FEC, the Court re- 9 iterated that ‘‘disclosure is a less restrictive alter- 10 native to more comprehensive regulations of speech.’’ 11 558 U.S. 310, 369 (2010). 12 (3) No subsequent decision has called these 13 holdings into question, including the Court’s decision 14 in Americans for Prosperity Foundation v. Bonta, 15 141 S. Ct. 2373 (2021). That case did not involve 16 campaign finance disclosure, and the Court did not 17 overturn its longstanding recognition of the substan- 18 tial interests furthered by such disclosure. 19 (4) Campaign finance disclosure is also essen- 20 tial to enforce the Federal Election Campaign Act’s 21 prohibition on contributions by and solicitations of 22 foreign nationals. See section 319 of the Federal 23 Election Campaign Act of 1971 (52 U.S.C. 30121). 24 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1118 IH (5) Congress should close loopholes allowing 1 spending by foreign nationals in domestic elections. 2 For example, in 2021, the Federal Election Commis- 3 sion, the independent Federal agency charged with 4 protecting the integrity of the Federal campaign fi- 5 nance process, found reason to believe and concil- 6 iated a matter where an experienced political con- 7 sultant knowingly and willfully violated Federal law 8 by soliciting a contribution from a foreign national 9 by offering to transmit a $2,000,000 contribution to 10 a super PAC through his company and two 11 501(c)(4) organizations, to conceal the origin of the 12 funds. This scheme was only unveiled after appear- 13 ing in a The Telegraph UK article and video cap- 14 turing the solicitation. See Conciliation Agreement, 15 MURs 7165 & 7196 (Great America PAC, et al.), 16 date June 28, 2021; Factual and Legal Analysis, 17 MURs 7165 & 7196 (Jesse Benton), dated Mar. 2, 18 2021. 19 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 1118 IH TITLE I—CLOSING LOOPHOLES 1 ALLOWING SPENDING BY 2 FOREIGN NATIONALS IN 3 ELECTIONS 4 SEC. 101. CLARIFICATION OF APPLICATION OF FOREIGN 5 MONEY BAN TO CERTAIN DISBURSEMENTS 6 AND ACTIVITIES. 7 Section 319(b) of the Federal Election Campaign Act 8 of 1971 (52 U.S.C. 30121(b)) is amended— 9 (1) by redesignating paragraphs (1) and (2) as 10 subparagraphs (A) and (B), respectively, and by 11 moving such subparagraphs 2 ems to the right; 12 (2) by striking ‘‘As used in this section, the 13 term’’ and inserting the following: ‘‘DEFINITIONS.— 14 For purposes of this section— 15 ‘‘(1) FOREIGN NATIONAL.—The term’’; 16 (3) by moving paragraphs (1) and (2) two ems 17 to the right and redesignating them as subpara- 18 graphs (A) and (B), respectively; and 19 (4) by adding at the end the following new 20 paragraph: 21 ‘‘(2) CONTRIBUTION AND DONATION.—For pur- 22 poses of paragraphs (1) and (2) of subsection (a), 23 the term ‘contribution or donation’ includes any dis- 24 bursement to a political committee which accepts do- 25 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 1118 IH nations or contributions that do not comply with any 1 of the limitations, prohibitions, and reporting re- 2 quirements of this Act (or any disbursement to or on 3 behalf of any account of a political committee which 4 is established for the purpose of accepting such do- 5 nations or contributions), or to any other person for 6 the purpose of funding an expenditure, independent 7 expenditure, or electioneering communication (as de- 8 fined in section 304(f)(3)).’’. 9 SEC. 102. STUDY AND REPORT ON ILLICIT FOREIGN MONEY 10 IN FEDERAL ELECTIONS. 11 (a) STUDY.—For each 4-year election cycle (begin- 12 ning with the 4-year election cycle ending in 2020), the 13 Comptroller General shall conduct a study on the inci- 14 dence of illicit foreign money in all elections for Federal 15 office held during the preceding 4-year election cycle, in- 16 cluding what information is known about the presence of 17 such money in elections for Federal office. 18 (b) REPORT.— 19 (1) IN GENERAL.—Not later than the applicable 20 date with respect to any 4-year election cycle, the 21 Comptroller General shall submit to the appropriate 22 congressional committees a report on the study con- 23 ducted under subsection (a). 24 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 1118 IH (2) MATTERS INCLUDED.—The report sub- 1 mitted under paragraph (1) shall include a descrip- 2 tion of the extent to which illicit foreign money was 3 used to target particular groups, including rural 4 communities, African-American and other minority 5 communities, and military and veteran communities, 6 based on such targeting information as is available 7 and accessible to the Comptroller General. 8 (3) APPLICABLE DATE.—For purposes of para- 9 graph (1), the term ‘‘applicable date’’ means— 10 (A) in the case of the 4-year election cycle 11 ending in 2020, the date that is 1 year after 12 the date of the enactment of this Act; and 13 (B) in the case of any other 4-year election 14 cycle, the date that is 1 year after the date on 15 which such 4-year election cycle ends. 16 (c) DEFINITIONS.—As used in this section: 17 (1) 4-YEAR ELECTION CYCLE.—The term ‘‘4- 18 year election cycle’’ means the 4-year period ending 19 on the date of the general election for the offices of 20 President and Vice President. 21 (2) ILLICIT FOREIGN MONEY.—The term ‘‘illicit 22 foreign money’’ means any contribution, donation, 23 expenditure, or disbursement by a foreign national 24 (as defined in section 319(b) of the Federal Election 25 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 1118 IH Campaign Act of 1971 (52 U.S.C. 30121(b))) pro- 1 hibited under such section. 2 (3) ELECTION; FEDERAL OFFICE.—The terms 3 ‘‘election’’ and ‘‘Federal office’’ have the meanings 4 given such terms under section 301 of the Federal 5 Election Campaign Act of 1971 (53 U.S.C. 30101). 6 (4) APPROPRIATE CONGRESSIONAL COMMIT- 7 TEES.—The term ‘‘appropriate congressional com- 8 mittees’’ means— 9 (A) the Committee on House Administra- 10 tion of the House of Representatives; 11 (B) the Committee on Rules and Adminis- 12 tration of the Senate; 13 (C) the Committee on the Judiciary of the 14 House of Representatives; and 15 (D) the Committee on the Judiciary of the 16 Senate. 17 (d) SUNSET.—This section shall not apply to any 4- 18 year election cycle beginning after the election for the of- 19 fices of President and Vice President in 2032. 20 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 1118 IH SEC. 103. PROHIBITION ON CONTRIBUTIONS AND DONA- 1 TIONS BY FOREIGN NATIONALS IN CONNEC- 2 TION WITH BALLOT INITIATIVES AND 3 REFERENDA. 4 (a) IN GENERAL.—Section 319(b) of the Federal 5 Election Campaign Act of 1971 (52 U.S.C. 30121(b)), as 6 amended by section 101, is amended by adding at the end 7 the following new paragraphs: 8 ‘‘(3) FEDERAL, STATE, OR LOCAL ELECTION.— 9 The term ‘Federal, State, or local election’ includes 10 a State or local ballot initiative or referendum, but 11 only in the case of— 12 ‘‘(A) a covered foreign national as defined 13 in paragraph (4); or 14 ‘‘(B) a foreign principal described in sec- 15 tion 1(b)(2) or 1(b)(3) of the Foreign Agent 16 Registration Act of 1938, as amended (22 17 U.S.C. 611(b)(2) or (b)(3)) or an agent of such 18 a foreign principal under such Act. 19 ‘‘(4) COVERED FOREIGN NATIONAL.— 20 ‘‘(A) IN GENERAL.—The term ‘covered for- 21 eign national’ means— 22 ‘‘(i) a foreign principal (as defined in 23 section 1(b) of the Foreign Agents Reg- 24 istration Act of 1938 (22 U.S.C. 611(b))) 25 VerDate Sep 11 2014 23:53 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1118.IH H1118 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 1118 IH that is a government of a foreign country 1 or a foreign political party; 2 ‘‘(ii) any per [Text truncated for display. Full text available on Congress.gov.]

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.