Title IV: Shine a Light on Dark Money
We can’t overturn Citizen’s United in Congress without a constitutional amendment, but until then we can make it much more risky and exposed to spend dark money in elections. Title IV forces disclosure to an extreme degree to fight undue electoral influence and also forces disclosure of media influence. Read the fact-sheet about the bill and more about us vs. them on this issue, or read the full bill title below.
TITLE IV of The MAD Act
POLITICAL SPENDING DISCLOSURE
SEC. 4001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.—This title may be cited as the "Shine A Light on Dark Money Act".
(b) Table of Contents.—The table of contents of this title is as follows:
Sec. 4001. Short Title; Table of Contents.
Sec. 4002. Findings.
CHAPTER 1—CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN ELECTIONS
Sec. 4003. Clarification of Application of Foreign Money Ban to Certain Disbursements and Activities.
Sec. 4004. Prohibition on Contributions and Donations by Foreign Nationals in Connection with Ballot Initiatives and Referenda.
Sec. 4005. Inclusion of Constructive Agents of Foreign States as Covered Foreign Nationals.
Sec. 4006. Disbursements and Activities Subject to Foreign Money Ban.
Sec. 4007. Prohibiting Establishment of Corporation to Conceal Election Contributions and Donations by Foreign Nationals.
CHAPTER 2—REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS
Sec. 4008. Reporting of Campaign-Related Disbursements.
Sec. 4009. Reporting of Federal Judicial Nomination Disbursements.
Sec. 4010. Coordination with FinCEN.
Sec. 4011. Application of Foreign Money Ban to Disbursements for Campaign-Related Disbursements Consisting of Covered Transfers.
Sec. 4012. Disclosure of Contributions Forwarded or Directed Through Conduit Political Committees.
Sec. 4013. Sense of Congress Regarding Implementation.
Sec. 4014. Effective Date.
CHAPTER 3—OTHER ADMINISTRATIVE REFORMS
Sec. 4015. Petition for Certiorari.
Sec. 4016. Judicial Review of Actions Related to Campaign Finance Laws.
Sec. 4017. Effective Date.
CHAPTER 4—STAND BY EVERY AD
Sec. 4018. Short Title.
Sec. 4019. Stand By Every Ad.
Sec. 4020. Disclaimer Requirements for Communications Made Through Prerecorded Telephone Calls.
Sec. 4021. No Expansion of Persons Subject to Disclaimer Requirements on Internet Communications.
Sec. 4022. Effective Date.
CHAPTER 5—DISCLOSURE OF FOREIGN AND COMMERCIAL FINANCING AND CONTROL OF SOCIAL MEDIA POLITICAL CONTENT
Sec. 4023. Short Title.
Sec. 4024. Findings.
Sec. 4025. Disclosure of Sponsorship of Social Media Political Content.
Sec. 4026. Disclosure of Commercial and Capital-Markets Control of Social Media Channels.
Sec. 4027. Regulations.
Sec. 4028. Rule of Construction.
Sec. 4029. Effective Date.
Sec. 4030. Severability.
SEC. 4002. FINDINGS.
Congress finds the following:
(1) The government of the United States is supposed to derive its just powers from the consent of the governed. When institutions of government, or those who seek to influence them, operate without transparency, the resulting asymmetry of information perpetuates into an asymmetry of power, making the concept of self-governance meaningless. This title addresses one critical dimension of that asymmetry: the ability of wealthy individuals, corporations, and other entities to spend vast sums to influence Federal elections and the selection of Federal judges while concealing their identities from the public, and thereby depriving the public of the information needed to make informed decisions about whom they can trust with power.
(2) The concentration of undisclosed political spending power in the hands of a narrow set of actors compounds the broader imbalances between the people and their government that this title as a whole seeks to address. When the same anonymous networks that shape electoral outcomes also shape the composition of the Federal judiciary, they acquire disproportionate influence across multiple branches of government—influence that operates beyond the reach of public accountability. Transparency in the financing of elections and judicial nominations is a necessary condition for the informed self-governance that each subtitle of this title seeks to protect.
(3) Campaign finance disclosure is a narrowly tailored and minimally restrictive means to advance substantial government interests, including fostering an informed electorate capable of engaging in self-government and holding their elected officials accountable, detecting and deterring quid pro quo corruption, and identifying information necessary to enforce other campaign finance laws, including campaign contribution limits and the prohibition on foreign money in U.S. campaigns. To further these substantial interests, campaign finance disclosure must be timely and complete, and must disclose the true and original source of money given, transferred, and spent to influence Federal elections. Current law does not meet this objective because corporations and other entities that the Supreme Court has permitted to spend money to influence Federal elections are subject to few if any transparency requirements.
(4) As the Supreme Court recognized in its per curiam opinion in Buckley v. Valeo, 424 U.S. 1 (1976), "disclosure requirements certainly in most applications appear to be the least restrictive means of curbing the evils of campaign ignorance and corruption that Congress found to exist." Buckley, 424 U.S. at 68. In Citizens United v. FEC, the Court reiterated that "disclosure is a less restrictive alternative to more comprehensive regulations of speech." 558 U.S. 310, 369 (2010). Indeed, Citizens United was premised significantly on the Court's assumption that the new election spending it permitted would be transparent.
(5) No subsequent decision has called these holdings into question, including the Court's decision in Americans for Prosperity Foundation v. Bonta, 141 S. Ct. 2373 (2021). That case did not involve campaign finance disclosure, and the Court did not overturn its longstanding recognition of the substantial interests furthered by such disclosure.
(6) Campaign finance disclosure is also essential to enforce the Federal Election Campaign Act's prohibition on contributions by and solicitations of foreign nationals. See section 319 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121).
(7) Since the Supreme Court's 2010 decision in Citizens United v. FEC, undisclosed spending in Federal elections has grown sharply. Dark money—spending by nonprofits, shell companies, and other entities that do not disclose their donors—rose from less than $5,000,000 in 2006 to more than $300,000,000 in the 2012 election cycle, approached $1,000,000,000 in the 2020 cycle, and reached a record of approximately $1,900,000,000 in 2024, roughly double the prior cycle. Since Citizens United, dark money groups have spent at least $4,300,000,000 on Federal elections.
(8) Total outside spending on 2024 Federal elections reached a record $4,500,000,000, with more than half of that spending coming from groups that do not fully disclose the source of their funding. Shell companies and nonprofits that do not disclose their funding sources contributed $1,300,000,000 to super PACs during the 2024 election cycle alone.
(9) The problem of undisclosed spending is growing worse, not better, because the methods by which dark money enters the political system have become more sophisticated and harder to trace. Whereas dark money groups once purchased their own campaign advertisements—spending that was, at minimum, reported to the Federal Election Commission—such groups have increasingly shifted to making large contributions to super PACs and to purchasing advertisements outside the windows that trigger mandatory disclosure, rendering a growing share of political spending effectively invisible to voters and regulators alike.
(10) The scale of undisclosed spending renders current disclosure requirements inadequate to serve the interests that the Supreme Court has recognized: an informed electorate, the detection and deterrence of corruption, and the enforcement of campaign finance laws including the prohibition on foreign money in United States campaigns.
(11) Congress should close loopholes allowing spending by foreign nationals in domestic elections. For example, in 2021, the Federal Election Commission found reason to believe and conciliated a matter where an experienced political consultant knowingly and willfully violated Federal law by soliciting a contribution from a foreign national by offering to transmit a $2,000,000 contribution to a super PAC through his company and two 501(c)(4) organizations, to conceal the origin of the funds. This scheme was only unveiled after appearing in a The Telegraph UK article and video capturing the solicitation. See Conciliation Agreement, MURs 7165 & 7196 (Great America PAC, et al.), dated June 28, 2021; Factual and Legal Analysis, MURs 7165 & 7196 (Jesse Benton), dated Mar. 2, 2021.
(12) The opacity of current campaign finance channels creates pathways through which foreign money may enter domestic elections undetected. Without disclosure of the true and original sources of funds used for campaign-related disbursements, the prohibition on foreign national participation in United States elections cannot be meaningfully enforced.
(13) A fair and impartial judiciary is critical for our democracy and crucial to maintain the faith of the people of the United States in the justice system. As the Supreme Court held in Caperton v. A. T. Massey Coal Co., 556 U.S. 868, 884 (2009), "there is a serious risk of actual bias—based on objective and reasonable perceptions—when a person with a personal stake in a particular case had a significant and disproportionate influence in placing the judge on the case."
(14) Dark money is used to shape the composition and decision-making of the Federal judiciary. Well-funded networks of organizations that do not disclose their donors have spent hundreds of millions of dollars over the past decade to influence the nomination and confirmation of Federal judges, including through advertising campaigns supporting or opposing Supreme Court nominees, vetting and selecting potential nominees, and funding litigation designed to bring strategic cases before judges whose confirmation those same networks supported.
(15) The judiciary is not exempt from such influence. A single network of dark money organizations tied to one individual has channeled more than $250,000,000 into efforts to reshape the Federal judiciary, and one organization within that network raised a record $48,100,000 from anonymous donors in a single year. Such spending is not subject to disclosure requirements under current Federal election law, which reaches only contributions and expenditures relating to electoral politics. Spending and advocacy directed at Federal judgeships fall outside the Federal Election Campaign Act of 1971.
(16) Without disclosure, the public has no way of knowing whether the persons spending money to support or oppose judicial nominations have business before the courts whose composition they seek to influence. This opacity creates the conditions for conflicts of interest that are invisible to litigants, to the public, and potentially to the judges themselves—undermining the actual and perceived independence of the Federal judiciary.
(17) The use of anonymous money to influence both elections and judicial nominations represents a compounding of unaccountable power: the same undisclosed donors may simultaneously shape who holds elected office, who sits on the Federal bench, and what cases and arguments reach those judges. Transparency in both domains is necessary to prevent the accumulation of hidden influence across the branches of government.
(18) Public trust in government is at a historic low. According to polling, most Americans believe that corporations and wealthy individuals have too much power and influence in politics and the courts. The prevalence of dark money—funding for organizations and political activities that cannot be traced to actual donors—is a significant driver of public concern about corruption in both elections and the judicial system.
(19) Disclosure of the true sources of money spent to influence Federal elections and judicial nominations is a necessary step toward restoring the accountability of government institutions to the people they serve, and toward ensuring that the asymmetry of information and influence between the governed and those who exercise power does not continue to widen.
(20) The disclosure requirements of this title apply only to categories of organizations that are, by their legal structure, permitted to engage in political activity—including organizations described in sections 501(c)(4), 501(c)(5), and 501(c)(6) of the Internal Revenue Code of 1986, corporations, and political organizations. Organizations described in section 501(c)(3) of such Code, which are barred from campaign intervention and whose donor restrictions are independently enforceable under the Uniform Prudent Management of Institutional Funds Act and by State attorneys general, are excluded. Covered organizations are subject to no comparable framework; a donor's restriction on funds given to such an organization is a private contractual matter, not subject to government oversight or independent verification. Because money within such organizations is fungible—any unrestricted payment frees an equivalent amount for political spending—disclosure limited to donors who expressly restrict their funds from political use would be ineffective and unverifiable. Requiring disclosure of all significant funding sources to covered organizations that make campaign-related disbursements is therefore narrowly tailored to the governmental interest in electoral transparency.
(21) The governmental interest in requiring disclosure of spending on Federal judicial nominations is distinct from, and complementary to, the governmental interest in electoral disclosure. Whereas electoral disclosure serves the interest of an informed electorate, judicial nomination disclosure serves the interest of judicial integrity—ensuring that litigants, the public, and judges themselves can identify potential conflicts of interest arising from undisclosed financial support for a judge's confirmation. The Supreme Court recognized in Caperton v. A. T. Massey Coal Co., 556 U.S. 868 (2009), that due process requires recusal when a person with a personal stake in a particular case had a significant and disproportionate influence in placing the judge on the case. Effective enforcement of this constitutional principle requires that spending to influence judicial nominations be disclosed, because without such disclosure, conflicts of interest arising from anonymous spending on behalf of or in opposition to a judicial nominee cannot be identified by litigants, by the public, or by the judges themselves. The disclosure requirements of this title with respect to Federal judicial nomination communications are narrowly tailored to this interest, because they apply only to communications that promote, support, attack, or oppose a specific nomination during the period in which that nomination is pending or recently concluded.
(22) The agency test in section 1(c) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611(c)), and the parallel definitions incorporated into section 319 of the Federal Election Campaign Act of 1971 by this title, have historically been construed to require evidence of formal direction or control by a foreign principal. As a result, organizations whose principal purpose is to advance the foreign-policy interests of a particular foreign state—and which conduct regular, substantive, and ongoing coordination with the government of such state—have, in practice, been able to expend significant sums to influence Federal elections, Federal judicial nominations, and Federal policymaking without being treated as agents of a foreign principal under either statute. The disclosure and contribution-prohibition framework of this title cannot meaningfully constrain foreign influence in domestic elections if it does not reach organizations that function as constructive agents of foreign states. Closing this gap through a substance-over-form test, focused on observable programmatic conduct rather than on self-identification, is necessary to give effect to the foreign-money ban that this title is designed to enforce, and is consistent with the longstanding doctrinal recognition in Federal law that legal form must yield to economic and operational substance. See Gregory v. Helvering, 293 U.S. 465 (1935).
CHAPTER 1—CLOSING LOOPHOLES ALLOWING SPENDING BY FOREIGN NATIONALS IN ELECTIONS
SEC. 4003. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN DISBURSEMENTS AND ACTIVITIES.
Section 319(b) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121(b)) is amended—
by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs 2 ems to the right;
by striking "As used in this section, the term" and inserting the following:
"DEFINITIONS.—For purposes of this section—
"(1) FOREIGN NATIONAL.—The term"; and
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)).".
SEC. 4004. 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 4003 of this title, is amended by adding at the end the following new paragraphs:
"(3) FEDERAL, STATE, OR LOCAL ELECTION.—The term 'Federal, State, or local election' includes a State or local ballot initiative or referendum, but only in the case of—
"(A) a covered foreign national as defined in paragraph (4); or
"(B) a foreign principal described in section 1(b)(2) or 1(b)(3) of the Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 611(b)(2) or (b)(3)) or an agent of such a foreign principal under such Act.
"(4) 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 in clause (i) of subparagraph (A).".
(b) EFFECTIVE DATE.—The amendment made by this section shall apply with respect to elections held after the date of enactment of this title.
SEC. 4005. INCLUSION OF CONSTRUCTIVE AGENTS OF FOREIGN STATES AS COVERED FOREIGN NATIONALS.
(a) FINDINGS.—In addition to the findings set forth in section 4002 of this title, Congress finds the following with respect to constructive agency:
(1) The agency test in clause (ii) of section 319(b)(4)(A) of the Federal Election Campaign Act of 1971, as added by section 4004 of this title, mirrors the agency test under section 1(c) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611(c)), which has historically been construed by Federal courts and by the Department of Justice to require evidence of formal direction or control by a foreign principal.
(2) Organizations whose principal purpose is to advance the foreign-policy interests of a particular foreign state, and which conduct regular, ongoing, and substantive coordination with the government of such state, exercise influence over Federal elections, Federal judicial nominations, and Federal policymaking comparable to that of formal agents of foreign principals, without being subject to the prohibitions of such section 319 or the registration and disclosure requirements of the Foreign Agents Registration Act of 1938.
(3) Reliance on self-identification—including legal name, mission statement, or stated purpose—as the principal indicator of foreign-state representation is insufficient, because an organization can readily alter its branding, corporate identity, or stated purpose without altering the substance of its programmatic conduct.
(4) A substance-over-form test, focused on observable conduct—including the substantive focus of an organization's programming, the regularity with which the organization hosts officials of a particular foreign state, the organization's role in arranging delegations between Federal officials and such foreign state, and the organization's receipt of strategic guidance from such state—is more reliable, more verifiable, and more resistant to evasion than a test focused on self-identification alone.
(5) Closing this gap is necessary to ensure the integrity of the foreign-money ban that this title is designed to enforce, and is consistent with the longstanding doctrinal principle in Federal law that legal form must yield to economic and operational substance. See Gregory v. Helvering, 293 U.S. 465 (1935).
(b) IN GENERAL.—Section 319(b)(4)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121(b)(4)(A)), as added by section 4004 of this title, is amended—
(1) by striking "or" at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and inserting "; or"; and
(3) by adding at the end the following:
"(iv) any organization that, during any consecutive 12-month period—
"(I) expends an aggregate of more than $100,000 on activities the principal purpose of which is to influence the foreign policy of the United States with respect to a particular foreign state, the government of a particular foreign state, or a political party of a particular foreign state;
"(II) engages in regular, ongoing, and substantive consultation, coordination, or strategic communication with one or more officials, employees, or designees of the government or a political party of such foreign state regarding such activities; and
"(III) is characterized by one or more of the following:
"(aa) a majority of the organization's program expenditures, public communications, or organized events during such period concern the policies of, or the relationship between the United States and, such foreign state, its government, or a political party thereof;
"(bb) the organization regularly invites, hosts, or features officials, former officials, employees, or designees of the government or a political party of such foreign state as keynote speakers, honored guests, or principal participants at its conferences, programs, or events;
"(cc) the organization organizes, sponsors, finances, or facilitates delegations or visits of Federal candidates, Federal officeholders, candidates for Federal judicial office, or staff of any of the foregoing, to such foreign state, or comparable in-bound programming for officials of such foreign state directed at Federal candidates, officeholders, or staff;
"(dd) the organization receives, directly or indirectly, strategic guidance, policy direction, briefing materials, or talking points from officials, employees, or designees of the government or a political party of such foreign state on a regular basis; or
"(ee) the organization holds itself out, expressly or by clear implication (including through its legal name, mission statement, public communications, branding, or programming), as a representative, advocate, or promoter in the United States of the interests of such foreign state, its government, or a political party thereof.".
(c) CLARIFICATION REGARDING APPLICATION TO CITIZENS OF THE UNITED STATES.—Section 319(b)(4)(B) of the Federal Election Campaign Act of 1971, as added by section 4004 of this title, is amended by striking "clause (ii) of subparagraph (A)" and inserting "clauses (ii) and (iv) of subparagraph (A)".
(d) RULE OF CONSTRUCTION.—Clause (iv) of section 319(b)(4)(A) of the Federal Election Campaign Act of 1971, as added by subsection (b), shall not apply to—
(1) bona fide news or journalistic activities;
(2) bona fide academic, scholastic, or scientific research;
(3) bona fide religious activities; or
(4) bona fide humanitarian or refugee assistance not conducted in coordination with a foreign government.
(e) ANTI-CIRCUMVENTION.—In applying clause (iv) of section 319(b)(4)(A) of the Federal Election Campaign Act of 1971, as added by subsection (b), the Commission shall—
(1) consider the substance of an organization's conduct and programming rather than the form of its legal identity, branding, or stated purpose;
(2) treat a change in legal name, branding, mission statement, stated purpose, or corporate structure as presumptively ineffective to defeat application of such clause if such change occurs within 24 months before or after the date on which the organization first satisfies the criteria of subclauses (I) and (II) of such clause; and
(3) consider the organization's conduct, expenditures, and programming during the 24 months preceding any such change as evidence of the substance of the organization's activities.
(f) CONFORMING AMENDMENT TO FARA.—Section 1(c) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611(c)) is amended by adding at the end the following:
"(3) any organization that satisfies the criteria of section 319(b)(4)(A)(iv) of the Federal Election Campaign Act of 1971, with respect to the activities described in such section, except that section 3(h) of this Act shall not apply to such organization with respect to such activities.".
(g) REGULATIONS.—Not later than 180 days after the date of enactment of this title, the Commission, in consultation with the Attorney General, shall promulgate regulations implementing this section, including standards and procedures for—
(1) determining whether an organization satisfies the criteria of clause (iv) of section 319(b)(4)(A) of the Federal Election Campaign Act of 1971, as added by subsection (b);
(2) applying the anti-circumvention rules under subsection (e); and
(3) coordinating enforcement under this section with the Attorney General and the FARA Unit of the Department of Justice.
(h) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to disbursements and activities conducted on or after the date that is 180 days after the date of enactment of this title.
SEC. 4006. 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)) 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 by a covered foreign national (as defined in subsection (b)(4)) 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 (as defined in subsection (b)(5)), 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 (as defined in subsection (b)(4));
"(I) a disbursement by a covered foreign national (as defined in subsection (b)(4)) 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 by a covered foreign national (as defined in subsection (b)(4)) for a Federal judicial nomination communication (as defined in section 324(g)(2));".
(b) DEFINITION OF ONLINE PLATFORM.—Section 319(b) of such Act (52 U.S.C. 30121(b)), as amended by sections 4003 and 4004 of this title, is amended by adding at the end the following new paragraph:
"(5) ONLINE PLATFORM.—
"(A) IN GENERAL.—For purposes of this Act, 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) THIRD-PARTY ADVERTISING VENDOR DEFINED.—For purposes of this subsection, 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.
"(6) NATIONAL LEGISLATIVE ISSUE OF PUBLIC IMPORTANCE.—For purposes of this Act, the term 'national legislative issue of public importance' means any issue that is the subject of—
"(A) a bill or joint resolution that has been introduced in either House of Congress during the 2-year period ending on the date of the communication;
"(B) a hearing held by any committee or subcommittee of either House of Congress during such period;
"(C) an executive order issued during such period; or
"(D) a rulemaking of general applicability proposed or finalized by a Federal agency during such period.".
(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 title.
SEC. 4007. 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:
"§ 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 adding at the end the following new item:
"612. Establishment of corporation to conceal election contributions and donations by foreign nationals.".
CHAPTER 2—REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS
SEC. 4008. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.
(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. 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 if such communication is in support of or in opposition to the identified 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 campaign-related disbursement segregated fund, for each payment made to the account by a person other than the covered organization—
"(I) the name and address of each person who made such payment to the account 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 the calendar year in which this section is enacted, 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 the calendar year in which this section is enacted.
"(F)(i) If the covered organization makes campaign-related disbursements using funds other than funds in a campaign-related disbursement segregated fund, 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 the calendar year in which this section is enacted, 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 the calendar year in which this section is enacted.
"(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. A transaction shall not be treated as in the ordinary course of any trade or business if the covered organization knew or had reason to know that the payment was made for the purpose of funding campaign-related disbursements, or if the payment substantially exceeds the fair market value of any goods, services, or other consideration provided in exchange.
"(B) THREAT OF HARASSMENT OR REPRISAL.—
"(i) IN GENERAL.—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 Commission, upon petition by the covered organization, determines that there is a reasonable probability that the disclosure of such information would subject the person to serious threats, harassment, or reprisals.
"(ii) PETITION AND DETERMINATION.—A covered organization seeking an exemption under this subparagraph shall submit a petition to the Commission that identifies the person for whom the exemption is sought and provides specific evidence supporting the claim of a reasonable probability of serious threats, harassment, or reprisals. The Commission shall act on such petition not later than 30 days after receipt. If the Commission fails to act within such period, the exemption shall be deemed granted pending final determination.
"(iii) BURDEN OF PROOF.—The burden of establishing eligibility for an exemption under this subparagraph shall be on the covered organization submitting the petition, which must demonstrate the reasonable probability of serious threats, harassment, or reprisals by clear and convincing evidence.
"(iv) SCOPE AND DURATION.—An exemption granted under this subparagraph shall apply only with respect to the specific person identified in the petition and shall expire 2 years after the date on which the exemption is granted, unless renewed upon a new petition demonstrating that the conditions giving rise to the exemption continue to exist.
"(v) GENERALIZED CLAIMS INSUFFICIENT.—A petition under this subparagraph may not be granted on the basis of generalized allegations of hostility toward the covered organization or its mission. The petition must demonstrate a specific and credible threat of serious harm to the person for whom the exemption is sought.
"(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) CAMPAIGN-RELATED DISBURSEMENT SEGREGATED FUND.—The term 'campaign-related disbursement segregated fund' means 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.
"(C) 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.
"(D) 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.
"(E) 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 campaign-related disbursement segregated fund 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 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.
"(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; or
"(D) 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 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.
"(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 (adjusted for each calendar year after the calendar year in which this section is enacted in the same manner as the adjustment under section 315(c)(1)(B) applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, using the calendar year in which this section is enacted as the base period).
"(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.
"(F) LOOK-THROUGH RULE FOR TRANSFERS THROUGH TAX-EXEMPT INTERMEDIARIES.—If a covered organization transfers funds to an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, and such organization subsequently transfers funds to any person who makes campaign-related disbursements aggregating $50,000 or more (adjusted in the same manner as the amount under subparagraph (A)) during the 2-year period beginning on the date of the subsequent transfer, the original transfer shall be treated as a covered transfer for purposes of this section, unless the covered organization demonstrates that it did not know and had no reason to know that the funds would be used, directly or indirectly, for campaign-related disbursements.
"(g) NO EFFECT ON OTHER REPORTING REQUIREMENTS.—Except as provided in subsection (b)(1), 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.".
(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(b), any requirement".
(c) REGULATIONS.—Not later than 6 months after the date of the enactment of this title, the Federal Election Commission shall promulgate regulations relating the application of the exemption under section 324(a)(3)(B) of the Federal Election Campaign Act of 1971 (as added by subsection (a)). Such regulations—
shall require that the legal burden of establishing eligibility for such exemption is upon the organization required to make the report required under section 324(a)(1) of such Act (as added by subsection (a)), and
shall be consistent with the principles applied in Citizens United v. Federal Election Commission, 558 U.S. 310 (2010).
SEC. 4009. REPORTING OF FEDERAL JUDICIAL NOMINATION DISBURSEMENTS.
(a) FINDINGS.—In addition to the findings set forth in section 4002 of this title, Congress makes the following finding with respect to Federal judicial nominations:
Under current law, "social welfare" organizations and business leagues can use funds to influence elections so long as political activity is not their "primary" activity. Super PACs can accept and spend unlimited contributions from any non-foreign source. These entities can also spend unlimited amounts to influence the nomination and confirmation of Federal judges without any disclosure of their donors, because such spending falls outside the scope of the Federal Election Campaign Act of 1971.
(b) REPORTING.—Section 324 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30126), as amended by section 4008 of this title, is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:
"(g) APPLICATION TO FEDERAL JUDICIAL NOMINATIONS.—
"(1) IN GENERAL.—For purposes of this section—
"(A) a disbursement by a covered organization for a Federal judicial nomination communication shall be treated as a campaign-related disbursement; and
"(B) in the case of campaign-related disbursements which are for Federal judicial nomination communications—
"(i) the dollar amounts in paragraphs (1) and (2) of subsection (a) shall be applied separately with respect to such disbursements and other campaign-related disbursements;
"(ii) the election reporting cycle shall be the calendar year in which the disbursement for the Federal judicial nomination communication is made;
"(iii) references to a candidate in subsections (a)(2)(C), (a)(2)(D), and (a)(3)(C) shall be treated as references to a nominee for a Federal judge or justice; and
"(iv) the reference to an election in subsection (a)(2)(C) shall be treated as a reference to the nomination of such nominee.
"(2) 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;
"(ii) which promotes, supports, attacks, or opposes the nomination or Senate confirmation of an individual as a Federal judge or justice; and
"(iii) which is disseminated during the period beginning on the date on which the President publicly announces or submits to the Senate the nomination of such individual and ending 120 days after the date on which the Senate confirms or rejects the nomination, or the nomination is withdrawn.
"(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.
"(C) INTENT NOT REQUIRED.—A disbursement for an item described in subparagraph (A) shall be treated as a disbursement for a Federal judicial nomination communication regardless of the intent of the person making the disbursement.".
SEC. 4010. COORDINATION WITH FINCEN.
(a) 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 chapter.
(b) REPORT.—Not later than 6 months after the date of the enactment of this title, 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. 4011. 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(b)(2)), as amended by section 4003 of this title, 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. 4012. DISCLOSURE OF CONTRIBUTIONS FORWARDED OR DIRECTED THROUGH CONDUIT POLITICAL COMMITTEES.
(a) FINDINGS.—In addition to the findings set forth in section 4002 of this title, Congress finds that political committees that solicit, collect, and forward contributions to candidates while attributing those contributions solely to the individual contributors can conceal the committee's role in organizing and directing the contributions, obscuring from the public and from regulators the true scope of the committee's influence and creating opportunities to evade the limitations and reporting requirements of the Federal Election Campaign Act of 1971.
(b) TREATMENT OF CONTRIBUTIONS DIRECTED THROUGH CONDUIT COMMITTEES.—Section 315(a)(8) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30116(a)(8)) is amended— (1) by striking "(8) For purposes" and inserting "(8)(A) For purposes"; (2) in subparagraph (A) (as so redesignated), by striking "or otherwise directed through an intermediary or conduit to such candidate, shall be treated" and inserting "or otherwise directed through an intermediary or conduit to such candidate (including any contribution treated as so directed under subparagraph (C)), shall be treated"; and (3) by striking the second sentence and inserting the following:
"(B) The intermediary or conduit shall report the original source and the intended recipient of such contribution to the Commission and to the intended recipient. In the case of an intermediary or conduit that is a political committee, the committee shall additionally disclose, in each report required under section 304— "(i) the fact that the committee acted as an intermediary or conduit; "(ii) the aggregate amount of contributions the committee forwarded, directed, or caused to be directed to each candidate or authorized committee (without regard to the amount of any individual contribution) during the reporting period; and "(iii) the aggregate amount of such contributions directed to each candidate or authorized committee (without regard to the amount of any individual contribution) during the election cycle.
"(C) For purposes of this paragraph, a contribution shall be treated as directed through an intermediary or conduit, without regard to whether the direction or designation is express or implied, oral or written, if a political committee— "(i) solicits or arranges the contribution; "(ii) receives physical custody of the contribution, or otherwise exercises direction or control over the transmission of the contribution to the candidate or authorized committee; or "(iii) forwards, delivers, or transmits the contribution to the candidate or authorized committee on behalf of the contributor.
"(D) Subparagraph (C) shall not apply to—
"(i) a contributor's authorization that a commercial payment processor, whose usual and normal business is to process payments, transmit funds from the contributor to a designated candidate or authorized committee in the commercial payment processor's ordinary course of business, where the political committee neither solicits, retains custody of, nor directs the contribution."
"(E) The requirement under subparagraph (B) to report the identity of an original source, and any itemized information relating to that source, shall apply only with respect to an original source whose contributions directed through the intermediary or conduit to a particular candidate aggregate more than $200 during the election cycle. Nothing in this subparagraph affects the treatment of a contribution as a contribution from the original source to the candidate under subparagraph (A), without regard to amount, for purposes of the limitations imposed by this section.
"(F) Nothing in this paragraph shall be construed to authorize a contribution otherwise prohibited under this Act or to relieve any person of any reporting obligation otherwise applicable under this Act.".
(c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to contributions made on or after the date of the enactment of this title.
SEC. 4013. SENSE OF CONGRESS REGARDING IMPLEMENTATION.
It is the sense of Congress that the Federal Election Commission should simplify the process for filing any disclosure required under the provisions of, and amendments made by, this chapter in order to ensure that such process is as easy and accessible as possible.
SEC. 4014. EFFECTIVE DATE.
The amendments made by this chapter shall apply with respect to disbursements made on or after the date of the enactment of this title, and shall take effect without regard to whether or not the Federal Election Commission has promulgated regulations to carry out such amendments.
CHAPTER 3—OTHER ADMINISTRATIVE REFORMS
SEC. 4015. 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. 4016. 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 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) CERTIFICATION OF CONSTITUTIONAL QUESTIONS.—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 with respect to any action of the Commission under chapter 95 or 96 of the Internal Revenue Code of 1986, the court shall certify the constitutional question to the United States District Court for the District of Columbia for determination and may stay proceedings on the underlying action pending such determination. The United States District Court for the District of Columbia shall advance on the docket and expedite to the greatest possible extent the disposition of any question certified under this subsection.
"(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.—A group of not fewer than one-fifth of the Members of either the House of Representatives (including Delegates and the Resident Commissioner to the Congress) or the Senate 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.
SEC. 4017. EFFECTIVE DATE.
The amendments made by this chapter shall take effect and apply on the date of the enactment of this title, without regard to whether or not the Federal Election Commission has promulgated regulations to carry out this chapter and the amendments made by this chapter.
CHAPTER 4—STAND BY EVERY AD
SEC. 4018. SHORT TITLE.
This chapter may be cited as the "Stand By Every Ad Act".
SEC. 4019. STAND BY EVERY AD.
(a) EXPANDED DISCLAIMER REQUIREMENTS FOR CERTAIN COMMUNICATIONS.—Section 318 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30120) is amended by adding at the end the following new subsection:
"(e) EXPANDED DISCLAIMER REQUIREMENTS FOR COMMUNICATIONS NOT AUTHORIZED BY CANDIDATES OR COMMITTEES.—
"(1) IN GENERAL.—Except as provided in paragraph (6), any communication described in paragraph (3) of subsection (a) which is transmitted in an audio or video format (including an internet or digital communication), or which is an internet or digital communication transmitted in a text or graphic format, shall include, in addition to the requirements of paragraph (3) of subsection (a), the following:
"(A) The individual disclosure statement described in paragraph (2)(A) (if the person paying for the communication is an individual) or the organizational disclosure statement described in paragraph (2)(B) (if the person paying for the communication is not an individual).
"(B) If the communication is transmitted in a video format, or is an internet or digital communication which is transmitted in a text or graphic format, and is paid for in whole or in part with a payment which is treated as a campaign-related disbursement under section 324—
"(i) the Top Five Funders list (if applicable); or
"(ii) in the case of a communication which, as determined on the basis of criteria established in regulations issued by the Commission, is of such short duration that including the Top Five Funders list in the communication would constitute a hardship to the person paying for the communication by requiring a disproportionate amount of the content of the communication to consist of the Top Five Funders list, then the Top Two Funders list shall be spoken in a clear and conspicuous manner.
(iii) in the case of a communication which, as determined on the basis of criteria established in regulations issued by the Commission, is of such short duration that including the Top Two Funders list in the communication would constitute a hardship to the person paying for the communication by requiring a disproportionate amount of the content of the communication, then the name of a website which contains the Top Five Funders list (if applicable) or, in the case of an internet or digital communication, a hyperlink to such website is to be provided, and spoken in audio format within the video content in a clear and conspicuous manner describing that the website contains the Top Five Funders list, as determined on the basis of criteria established in regulations issued by the Commission.
"(C) If the communication is transmitted in an audio format and is paid for in whole or in part with a payment which is treated as a campaign-related disbursement under section 324—
"(i) the Top Two Funders list (if applicable); or
"(ii) in the case of a communication which, as determined on the basis of criteria established in regulations issued by the Commission, is of such short duration that including the Top Two Funders list in the communication would constitute a hardship to the person paying for the communication by requiring a disproportionate amount of the content of the communication to consist of the Top Two Funders list, the name of a website which contains the Top Two Funders list (if applicable).
"(D) If the communication is transmitted in a video format and is paid for in whole or in part with a payment which is treated as a campaign-related disbursement under section 324, then, in addition to the Top Five Funders list required to be displayed under subparagraph (B), the communication shall include the Top Two Funders list (if applicable), conveyed by audio in a clear and conspicuous manner and identifying by name each person on that list. This subparagraph shall not apply to a communication described in subparagraph (B)(ii) or paragraph (6)(B)."
"(2) DISCLOSURE STATEMENTS DESCRIBED.—
"(A) INDIVIDUAL DISCLOSURE STATEMENTS.—The individual disclosure statement described in this subparagraph is the following: 'I am ________, and I approve this message.', with the blank filled in with the name of the applicable individual.
"(B) ORGANIZATIONAL DISCLOSURE STATEMENTS.—The organizational disclosure statement described in this subparagraph is the following: 'I am ________, the ________ of ________, and ________ approves this message.', with—
"(i) the first blank to be filled in with the name of the applicable individual;
"(ii) the second blank to be filled in with the title of the applicable individual; and
"(iii) the third and fourth blank each to be filled in with the name of the organization or other person paying for the communication.
"(3) METHOD OF CONVEYANCE OF STATEMENT.—
"(A) COMMUNICATIONS IN TEXT OR GRAPHIC FORMAT.—In the case of a communication to which this subsection applies which is transmitted in a text or graphic format, the disclosure statements required under paragraph (1) shall appear in letters at least as large as the majority of the text in the communication.
"(B) COMMUNICATIONS TRANSMITTED IN AUDIO FORMAT.—In the case of a communication to which this subsection applies which is transmitted in an audio format, the disclosure statements required under paragraph (1) shall be made by audio by the applicable individual in a clear and conspicuous manner.
"(C) COMMUNICATIONS TRANSMITTED IN VIDEO FORMAT.—In the case of a communication to which this subsection applies which is transmitted in a video format, the information required under paragraph (1) shall appear in writing at the end of the communication or in a crawl along the bottom of the communication in a clear and conspicuous manner, with a reasonable degree of color contrast between the background and the printed statement, for a period of at least 6 seconds.
"(4) APPLICABLE INDIVIDUAL DEFINED.—The term 'applicable individual' means, with respect to a communication to which this subsection applies—
"(A) if the communication is paid for by an individual, the individual involved;
"(B) if the communication is paid for by a corporation, the chief executive officer of the corporation (or, if the corporation does not have a chief executive officer, the highest ranking official of the corporation);
"(C) if the communication is paid for by a labor organization, the highest ranking officer of the labor organization; and
"(D) if the communication is paid for by any other person, the highest ranking official of such person.
"(5) TOP FIVE FUNDERS LIST AND TOP TWO FUNDERS LIST DEFINED.—
"(A) TOP FIVE FUNDERS LIST.—The term 'Top Five Funders list' means, with respect to a communication which is paid for in whole or in part with a campaign-related disbursement (as defined in section 324), a list of the 5 persons who, during the 12-month period ending on the date of the disbursement, provided the largest payments of any type in an aggregate amount equal to or exceeding $10,000 to the person who is paying for the communication and the amount of the payments each such person provided. If 2 or more people provided the fifth largest of such payments, the person paying for the communication shall select 1 of those persons to be included on the Top Five Funders list.
"(B) TOP TWO FUNDERS LIST.—The term 'Top Two Funders list' means, with respect to a communication which is paid for in whole or in part with a campaign-related disbursement (as defined in section 324), a list of the persons who, during the 12-month period ending on the date of the disbursement, provided the largest and the second largest payments of any type in an aggregate amount equal to or exceeding $10,000 to the person who is paying for the communication and the amount of the payments each such person provided. If 2 or more persons provided the second largest of such payments, the person paying for the communication shall select 1 of those persons to be included on the Top Two Funders list.
"(C) EXCLUSION OF CERTAIN PAYMENTS.—For purposes of subparagraphs (A) and (B), in determining the amount of payments made by a person to a person paying for a communication, there shall be excluded any amounts provided in the ordinary course of any trade or business conducted by the person paying for the communication or in the form of investments in the person paying for the communication.
"(6) SPECIAL RULES FOR CERTAIN COMMUNICATIONS.—
"(A) EXCEPTION FOR COMMUNICATIONS PAID FOR BY POLITICAL PARTIES.—This subsection does not apply to any communication to which subsection (d)(2) applies.
"(B) TREATMENT OF VIDEO COMMUNICATIONS LASTING 10 SECONDS OR LESS.—In the case of a communication to which this subsection applies which is transmitted in a video format, or is an internet or digital communication which is transmitted in a text or graphic format, the communication shall meet the following requirements:
"(i) The communication shall include the individual disclosure statement described in paragraph (2)(A) (if the person paying for the communication is an individual) or the organizational disclosure statement described in paragraph (2)(B) (if the person paying for the communication is not an individual).
"(ii) The statement described in clause (i) shall appear in writing at the end of the communication, or in a crawl along the bottom of the communication, in a clear and conspicuous manner, with a reasonable degree of color contrast between the background and the printed statement, for a period of at least 4 seconds.
"(iii) The communication shall include, in a clear and conspicuous manner, a website address with a landing page which will provide all of the information described in paragraph (1) with respect to the communication. Such address shall appear for the full duration of the communication.
"(iv) To the extent that the format in which the communication is made permits the use of a hyperlink, the communication shall include a hyperlink to the website address described in clause (iii).".
(b) APPLICATION OF EXPANDED REQUIREMENTS TO PUBLIC COMMUNICATIONS CONSISTING OF CAMPAIGN-RELATED DISBURSEMENTS.—
(1) IN GENERAL.—Section 318(a) of such Act (52 U.S.C. 30120(a)) is amended by striking "for the purpose of financing communications expressly advocating the election or defeat of a clearly identified candidate" and inserting "for a campaign-related disbursement, as defined in section 324, consisting of a public communication".
(2) CLARIFICATION OF EXEMPTION FROM INCLUSION OF CANDIDATE DISCLAIMER STATEMENT IN FEDERAL JUDICIAL NOMINATION COMMUNICATIONS.—Section 318(a)(3) of such Act (52 U.S.C. 30120(a)(3)) is amended by striking "shall clearly state" and inserting "shall (except in the case of a Federal judicial nomination communication, as defined in section 324(g)(2)) clearly state".
(c) EXCEPTION FOR COMMUNICATIONS PAID FOR BY POLITICAL PARTIES AND CERTAIN POLITICAL COMMITTEES.—Section 318(d)(2) of such Act (52 U.S.C. 30120(d)(2)) is amended—
(1) the heading, by striking "Others" and inserting "Certain political committees";
(2) by striking "Any communication" and inserting "(A) Any communication";
(3) by inserting "which (except to the extent provided in subparagraph (B)) is paid for by a political committee (including a political committee of a political party) and" after "subsection (a)";
(4) by striking "or other person" each place it appears; and
(5) by adding at the end the following new subparagraph:
"(B)(i) This paragraph does not apply to a communication paid for in whole or in part during a calendar year with a campaign-related disbursement, but only if the covered organization making the campaign-related disbursement made campaign-related disbursements (as defined in section 324) aggregating more than $10,000 during such calendar year.
"(ii) For purposes of clause (i), in determining the amount of campaign-related disbursements made by a covered organization during a year, there shall be excluded any amounts received by the covered organization in the ordinary course of any trade or business conducted by the covered organization or in the form of investments in the covered organization.".
(d) MODIFICATION OF ADDITIONAL REQUIREMENTS FOR CERTAIN COMMUNICATIONS.—Section 318(d) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30120(d)) is amended—
(1) paragraph (1)(A)—
(A) by striking "which is transmitted through radio" and inserting "which is in an audio format"; and
(B) by striking "By radio" in the heading and inserting "Audio format";
(2) paragraph (1)(B)—
(A) by striking "which is transmitted through television" and inserting "which is in video format"; and
(B) by striking "By television" in the heading and inserting "Video format"; and
(3) paragraph (2)—
(A) by striking "transmitted through radio or television" and inserting "made in audio or video format"; and
(B) by striking "through television" in the second sentence and inserting "in video format".
(e) RULE OF CONSTRUCTION; RELATIONSHIP TO TITLE II.—The disclaimer and disclosure requirements of this title are in addition to, and are not satisfied by compliance with, the AI-content disclosure and depiction requirements of Title II of this Act.
SEC. 4020. DISCLAIMER REQUIREMENTS FOR COMMUNICATIONS MADE THROUGH PRERECORDED TELEPHONE CALLS.
(a) APPLICATION OF REQUIREMENTS.—
(1) IN GENERAL.—Section 318(a) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30120(a)) is amended by striking "mailing" each place it appears and inserting "mailing, telephone call consisting in substantial part of a prerecorded audio message".
(2) APPLICATION TO COMMUNICATIONS SUBJECT TO EXPANDED DISCLAIMER REQUIREMENTS.—Section 318(e)(1) of such Act (52 U.S.C. 30120(e)(1)), as added by section 4019 of this title, is amended in the matter preceding subparagraph (A) by striking "which is transmitted in an audio or video format" and inserting "which is transmitted in an audio or video format or which consists of a telephone call consisting in substantial part of a prerecorded audio message".
(b) TREATMENT AS COMMUNICATION TRANSMITTED IN AUDIO FORMAT.—
(1) COMMUNICATIONS BY CANDIDATES OR AUTHORIZED PERSONS.—Section 318(d) of such Act (52 U.S.C. 30120(d)) is amended by adding at the end the following new paragraph:
"(3) PRERECORDED TELEPHONE CALLS.—Any communication described in paragraph (1), (2), or (3) of subsection (a) (other than a communication which is subject to subsection (e)) which is a telephone call consisting in substantial part of a prerecorded audio message shall include, in addition to the requirements of such paragraph, the audio statement required under subparagraph (A) of paragraph (1) or the audio statement required under paragraph (2) (whichever is applicable), except that the statement shall be made at the beginning of the telephone call.".
(2) COMMUNICATIONS SUBJECT TO EXPANDED DISCLAIMER REQUIREMENTS.—Section 318(e)(3) of such Act (52 U.S.C. 30120(e)(3)), as added by section 4019 of this title, is amended by adding at the end the following new subparagraph:
"(D) PRERECORDED TELEPHONE CALLS.—In the case of a communication to which this subsection applies which is a telephone call consisting in substantial part of a prerecorded audio message, the communication shall be considered to be transmitted in an audio format.".
SEC. 4021. NO EXPANSION OF PERSONS SUBJECT TO DISCLAIMER REQUIREMENTS ON INTERNET COMMUNICATIONS.
Nothing in this chapter or the amendments made by this chapter may be construed to require any person who is not required under section 318 of the Federal Election Campaign Act of 1971 to include a disclaimer on communications made by the person through the internet to include any disclaimer on any such communications.
SEC. 4022. EFFECTIVE DATE.
The amendments made by this chapter shall apply with respect to communications made on or after the date of the enactment of this title, and shall take effect without regard to whether or not the Federal Election Commission has promulgated regulations to carry out such amendments.
CHAPTER 5—DISCLOSURE OF FOREIGN AND COMMERCIAL FINANCING AND CONTROL OF SOCIAL MEDIA POLITICAL CONTENT
SEC. 4023. SHORT TITLE.
This chapter may be cited as the "Social Media Political Transparency Act".
SEC. 4024. FINDINGS.
In addition to the findings set forth in section 4002 of this title, Congress finds the following:
(1) An increasing share of political communication directed at the electorate of the United States is conducted through social media channels, accounts, and creators rather than through traditional broadcast, cable, satellite, or print media. Spending to influence Federal elections and Federal judicial nominations increasingly flows to the placement, promotion, and sponsorship of content on such channels and to the acquisition and control of the channels themselves.
(2) The disclosure framework established by sections 318 and 324 of the Federal Election Campaign Act of 1971 reaches communications that are placed or promoted for a fee, but does not reliably reach two distinct mechanisms by which undisclosed and foreign money now influences the political speech reaching United States audiences: first, the sponsorship of ostensibly independent or organic political content by undisclosed or foreign sources; and second, the acquisition of social media channels by commercial and capital-markets entities that thereafter direct the political content of those channels while the true source of control remains opaque to the public.
(3) A social media channel with a substantial United States audience is capable of shaping electoral and judicial-nomination outcomes to a degree comparable to paid advertising, yet content disseminated through such a channel may avoid disclosure entirely where it is not placed or promoted for a fee. The acquisition of such a channel by a for-profit firm, private equity or other investment fund, holding company, or comparable capital-markets entity, followed by the entity's direction of the channel's political content, can transfer control over a significant instrument of political influence without any public disclosure of who exercises that control or who finances it.
(4) Where the acquiring or controlling entity is, or is financed or directed by, a covered foreign national as defined in section 319(b)(4) of the Federal Election Campaign Act of 1971, the acquisition and control of such a channel presents the same dangers to the integrity of United States elections that the foreign-money ban is designed to prevent, in a form that current disclosure requirements do not capture.
(5) Paid promotion of positions on national legislative issues of public importance, and on the positions of Federal officeholders and candidates with respect to such issues, can shape electoral and judicial-nomination outcomes as powerfully as content that names a candidate, yet may escape disclosure where it does not refer to a clearly identified candidate. Anchoring disclosure to national legislative issues that are the subject of identifiable legislative or executive action, rather than to undefined ideologies or viewpoints, provides the public with information about who finances such speech while leaving the content of the speech, and the right of any person to engage in it, entirely unregulated.
(6) The control that a commercial or capital-markets acquirer obtains over a social media channel is frequently established in the acquisition or financing agreement itself, through rights to approve, veto, condition, or otherwise shape the channel's content. Disclosure of the existence of such contractual rights provides the public with information necessary to understand who is positioned to influence the political content reaching United States audiences, without limiting any person's ability to acquire, finance, or operate a channel or to determine the content disseminated through it.
(7) Disclosure of the financing and control of social media political content is a narrowly tailored and minimally restrictive means of advancing the substantial governmental interests in an informed electorate, the deterrence of corruption, the enforcement of the prohibition on foreign money in United States elections, and the integrity of the Federal judiciary. Consistent with the principles applied in Citizens United v. Federal Election Commission, 558 U.S. 310 (2010), this chapter regulates neither the content of speech nor the eligibility of any person to own, acquire, or operate a social media channel, and instead requires only the disclosure of the true sources of financing and the true holders of control.
SEC. 4025. DISCLOSURE OF SPONSORSHIP OF SOCIAL MEDIA POLITICAL CONTENT.
(a) IN GENERAL.—Section 324 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30126), as amended by sections 4008 and 4009 of this title, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:
"(h) APPLICATION TO SPONSORED SOCIAL MEDIA POLITICAL CONTENT.—
"(1) IN GENERAL.—For purposes of this section—
"(A) a disbursement by a covered organization to sponsor social media political content shall be treated as a campaign-related disbursement; and
"(B) a payment, transfer of value, or other consideration provided to the operator of a covered social media channel for the purpose of, or in exchange for, the dissemination of social media political content shall be treated, with respect to the person providing it, as a payment described in subsection (a)(2)(F).
"(2) COVERED SOCIAL MEDIA CHANNEL.—The term 'covered social media channel' means any account, channel, page, profile, or comparable presence on a public-facing website, web application, or digital application (including a social network or a video-sharing service), other than a distribution facility of a broadcasting station or of a newspaper, magazine, blog, publication, or periodical, that has 50,000,000 or more unique monthly United States users for a majority of months during the preceding 12-month period, if the account, channel, page, profile, or presence, during any consecutive 12-month period—
"(A) has 100,000 or more followers, subscribers, or comparable connections who are users located in the United States; or
"(B) disseminates social media political content that is placed or promoted for a fee.
"(3) SOCIAL MEDIA POLITICAL CONTENT.—The term 'social media political content' means any content disseminated through a covered social media channel that—
"(A) promotes, supports, attacks, or opposes the election of a clearly identified candidate for Federal office, regardless of whether the content contains express advocacy or its functional equivalent;
"(B) is a Federal judicial nomination communication (as defined in subsection (g)(2)), determined without regard to the form-of-advertising requirement in subparagraph (A)(i) of that subsection;
"(C) promotes, supports, attacks, or opposes a clearly identified national legislative issue of public importance (as defined in section 319(b)(6)); or
"(D) promotes, supports, attacks, or opposes the position of a clearly identified candidate for Federal office, or of a clearly identified Federal officeholder, with respect to a national legislative issue of public importance (as defined in section 319(b)(6)).
"(4) SPONSORSHIP DEFINED.—Content is 'sponsored' if it is disseminated in exchange for, at the direction of a person providing, or with the material financial support of a person providing, a payment, transfer of value, or other consideration, whether or not that relationship is disclosed within the content itself.
"(5) TREATMENT OF INDIVIDUAL OPERATORS.—
"(A) IN GENERAL.—An individual who operates a covered social media channel and disseminates sponsored social media political content through that channel shall be treated as a covered organization for purposes of this subsection, but solely with respect to such sponsored content and the payments, transfers of value, or other consideration received in connection with it.
"(B) PROTECTION FOR UNSPONSORED CONTENT.—No individual shall be subject to any requirement of this section by reason of disseminating social media political content that is not sponsored, without regard to the number of followers, subscribers, or comparable connections of the individual's channel or the reach of such content. The ownership and operation by an individual of the individual's own covered social media channel shall not, by itself, give rise to any obligation under this section.
"(6) EXCEPTION.—This subsection shall not apply to content that constitutes a bona fide news story, commentary, or editorial, except where the covered social media channel is owned or controlled by a candidate, political committee, political party, or covered foreign national (as defined in section 319(b)(4)), or where the application of this exception is sought for the purpose of evading the requirements of this section.".
(b) FOREIGN SPONSORSHIP.—Section 319(a)(1) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)), as amended by section 4006 of this title, is amended—
(1) by striking "or" at the end of subparagraph (I);
(2) by striking the semicolon at the end of subparagraph (J) and inserting "; or"; and
(3) by adding at the end the following:
"(K) a disbursement by a covered foreign national (as defined in subsection (b)(4)) to sponsor social media political content (as defined in section 324(h)), or any payment, transfer of value, or other consideration provided by a covered foreign national to the operator of a covered social media channel (as defined in section 324(h)(2)) for the purpose of, or in exchange for, the dissemination of social media political content; or".
SEC. 4026. DISCLOSURE OF COMMERCIAL AND CAPITAL-MARKETS CONTROL OF SOCIAL MEDIA CHANNELS.
(a) IN GENERAL.—Section 324 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30126), as amended by sections 4008, 4009, and 4025 of this title, is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) (as added by section 4025) the following new subsection:
"(i) DISCLOSURE OF CONTROL OF SOCIAL MEDIA CHANNELS ENGAGED IN POLITICAL CONTENT.—
"(1) CONTROL DISCLOSURE STATEMENT.—A covered commercial entity that acquires or holds control of a covered social media channel (as defined in subsection (h)(2)) which disseminates social media political content (as defined in subsection (h)(3)) shall, not later than 30 days after the later of the date on which it acquires such control or the date on which the channel first disseminates such content while under its control, and annually thereafter for so long as such control continues, file a statement with the Commission, made under penalty of perjury, that contains—
"(A) the name and principal place of business of the covered commercial entity;
"(B) the identity of the covered social media channel and the online platform (as defined in section 319(b)(5)) on which it is maintained;
"(C) the date on which control was acquired and a description of the means by which control is exercised, including any right described in paragraph (3)(B) and the agreement in which such right arises;
"(D) a list of the beneficial owners of the covered commercial entity, identified in the manner described in subsection (a)(2)(A); and
"(E) for each person who, during the period covered by the statement, provided payments to the covered commercial entity in an aggregate amount of $10,000 or more, the information described in subsection (a)(2)(F), but only with respect to payments connected, directly or indirectly, to the acquisition, operation, or control of the channel.
"(2) COVERED COMMERCIAL ENTITY.—The term 'covered commercial entity' means a covered organization (as defined in subsection (e)) that is—
"(A) a corporation, limited liability company, partnership, or other business entity operated for profit;
"(B) a private equity fund, hedge fund, venture capital fund, investment company, holding company, or other pooled investment or capital-markets entity, or any general partner, managing member, or investment adviser of any of the foregoing; or
"(C) any entity controlled by, or under common control with, an entity described in subparagraph (A) or (B).
"(3) CONTROL.—
"(A) IN GENERAL.—A person holds 'control' of a covered social media channel if the person, directly or indirectly and whether through ownership, contract, voting rights, editorial authority, or otherwise, has the power to direct or cause the direction of the content disseminated through the channel or of the management and policies of the operator of the channel. Possession of editorial authority over political content disseminated through the channel shall be sufficient to establish control for purposes of this subsection.
"(B) CONTRACTUAL CONTROL.—Control includes any right, whether or not exercised, arising under an acquisition agreement, financing agreement, management agreement, licensing arrangement, or any other contract or understanding, to direct, approve, disapprove, veto, edit, condition, or otherwise shape the political or issue-related content disseminated through the channel. The existence of any such right is a fact subject to disclosure under paragraph (1).
"(C) ACQUISITION PURSUANT TO AGREEMENT.—Where a covered commercial entity acquires a covered social media channel pursuant to an agreement that contains a term described in subparagraph (B), the entity shall be treated as holding control of the channel as of the effective date of the agreement, without regard to whether the right has been exercised.
"(4) FOREIGN CONTROL.—If a covered social media channel that disseminates social media political content is controlled, directly or indirectly, by a covered foreign national (as defined in section 319(b)(4)), the disclosure required under paragraph (1) shall additionally identify the covered foreign national and describe the nature of its control. Nothing in this paragraph affects the application of section 319 to any disbursement or activity of such covered foreign national.
"(5) ANTI-CIRCUMVENTION.—In administering this subsection, the Commission shall consider the substance of a control relationship rather than its form, and shall treat the interposition of an intermediary entity, nominee, management agreement, licensing arrangement, or comparable device as ineffective to defeat the disclosure requirement of this subsection where the covered commercial entity in substance directs or is able to direct the political content of the channel.".
(b) THREAT OF HARASSMENT OR REPRISAL.—The exemption under section 324(a)(3)(B) of the Federal Election Campaign Act of 1971, and the regulations promulgated under section 4008(c) of this title, shall apply to information required to be disclosed under subsections (h) and (i) of such section 324 (as added by this chapter) in the same manner as they apply to information required under subsection (a) of such section.
SEC. 4027. REGULATIONS.
Not later than 180 days after the date of the enactment of this title, the Federal Election Commission, in consultation with the Attorney General, shall promulgate regulations to carry out this chapter, including standards for—
(1) determining the number of followers, subscribers, or comparable connections located in the United States for purposes of section 324(h)(2)(A) of the Federal Election Campaign Act of 1971;
(2) determining when a person holds control of a covered social media channel for purposes of section 324(i)(3) of such Act;
(3) applying the anti-circumvention rule under section 324(i)(5) of such Act; and
(4) coordinating enforcement under this chapter with section 319 of such Act and with the FARA Unit of the Department of Justice.
SEC. 4028. RULE OF CONSTRUCTION.
Nothing in this chapter or the amendments made by this chapter shall be construed—
(1) to require disclosure of, or to regulate, the content of any communication, except to the extent of requiring disclosure of the source of financing for, or the holder of control of a channel disseminating, social media political content;
(2) to prohibit or restrict any person from acquiring, owning, or operating a social media channel;
(3) to impose any disclosure obligation on an individual by reason of the individual's ownership or operation of the individual's own social media channel, or by reason of the dissemination of social media political content that is not sponsored, regardless of the reach of the channel or such content; or
(4) to require any person who is not otherwise required under section 318 or section 324 of the Federal Election Campaign Act of 1971 to include a disclaimer on a communication made through the internet to include any such disclaimer.
SEC. 4029. EFFECTIVE DATE.
The amendments made by this chapter shall apply with respect to disbursements made, sponsored content disseminated, and control acquired or held on or after the date that is 180 days after the date of the enactment of this title, and, except with respect to the disclosure of control under section 324(i) of the Federal Election Campaign Act of 1971, shall take effect without regard to whether or not the Federal Election Commission has promulgated regulations to carry out such amendments.
SEC. 4030. SEVERABILITY.
If any provision of this title, or the application of such provision to any person or circumstance, is held to be unconstitutional, the remainder of this title, and the application of such provision to other persons and circumstances, shall not be affected thereby.
Note: LLMs were used to standardize the language in this document and formalize the text appropriate for formal introduction.