Bill Summary
The "Get Foreign Money Out of U.S. Elections Act" is a proposed amendment to the Federal Election Campaign Act of 1971. This amendment aims to extend the existing ban on contributions and expenditures by foreign nationals to include domestic corporations, limited liability corporations, and partnerships that are foreign-controlled, foreign-influenced, or foreign-owned. It also requires these entities to file a certification with the Federal Election Commission stating that they are not prohibited from engaging in such activities. Additionally, the amendment clarifies that the ban on foreign money applies to disbursements to super PACs and outlines the conditions under which corporate PACs are allowed to make contributions and expenditures.
Possible Impacts
1) This legislation could affect foreign-controlled corporations by prohibiting them from making contributions or expenditures in US elections. This could limit their ability to influence the outcome of elections.
2) This legislation could affect domestic corporations that have foreign nationals owning or controlling a significant portion of their voting shares. These corporations would need to comply with the ban on contributions and expenditures by foreign nationals.
3) This legislation could affect political committees and PACs by requiring them to certify that no foreign nationals are involved in their decision-making processes and that their board of directors does not include any foreign nationals. This could restrict the influence of foreign money in US elections through these organizations.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 746 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 746
To amend the Federal Election Campaign Act of 1971 to apply the ban on
contributions and expenditures by foreign nationals under such Act to
foreign-controlled, foreign-influenced, and foreign-owned domestic
corporations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2019
Mr. Raskin (for himself and Ms. Spanberger) introduced the following
bill; which was referred to the Committee on House Administration
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A BILL
To amend the Federal Election Campaign Act of 1971 to apply the ban on
contributions and expenditures by foreign nationals under such Act to
foreign-controlled, foreign-influenced, and foreign-owned domestic
corporations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Get Foreign Money Out of U.S.
Elections Act''.
SEC. 2. APPLICATION OF BAN ON CONTRIBUTIONS AND EXPENDITURES BY FOREIGN
NATIONALS TO DOMESTIC CORPORATIONS, LIMITED LIABILITY
CORPORATIONS, AND PARTNERSHIPS THAT ARE FOREIGN-
CONTROLLED, FOREIGN-INFLUENCED, AND FOREIGN-OWNED.
(a) Application of Ban.--Section 319(b) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30121(b)) is amended--
(1) by striking ``or'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(3) any corporation, limited liability corporation, or
partnership which is not a foreign national described in
paragraph (1) and--
``(A) in which a foreign national described in
paragraph (1) or (2) directly or indirectly owns or
controls--
``(i) 5 percent or more of the voting
shares, if the foreign national is a foreign
country, a foreign government official, or a
corporation principally owned or controlled by
a foreign country or foreign government
official; or
``(ii) 20 percent or more of the voting
shares, if the foreign national is not
described in clause (i);
``(B) in which two or more foreign nationals
described in paragraph (1) or (2), each of whom owns or
controls at least 5 percent of the voting shares,
directly or indirectly own or control 50 percent or
more of the voting shares;
``(C) over which one or more foreign nationals
described in paragraph (1) or (2) has the power to
direct, dictate, or control the decisionmaking process
of the corporation, limited liability corporation, or
partnership with respect to its interests in the United
States; or
``(D) over which one or more foreign nationals
described in paragraph (1) or (2) has the power to
direct, dictate, or control the decisionmaking process
of the corporation, limited liability corporation, or
partnership with respect to activities in connection
with a Federal, State, or local election, including--
``(i) the making of a contribution,
donation, expenditure, independent expenditure,
or disbursement for an electioneering
communication (within the meaning of section
304(f)(3)); or
``(ii) the administration of a political
committee established or maintained by the
corporation.''.
(b) Certification of Compliance.--Section 319 of such Act (52
U.S.C. 30121) is amended by adding at the end the following new
subsection:
``(c) Certification of Compliance Required Prior To Carrying Out
Activity.--Prior to the making in connection with an election for
Federal office of any contribution, donation, expenditure, independent
expenditure, or disbursement for an electioneering communication by a
corporation, limited liability corporation, or partnership during a
year, the chief executive officer of the corporation, limited liability
corporation, or partnership (or, if the corporation, limited liability
corporation, or partnership does not have a chief executive officer,
the highest ranking official of the corporation, limited liability
corporation, or partnership), shall file a certification with the
Commission, under penalty of perjury, that the corporation, limited
liability corporation, or partnership is not prohibited from carrying
out such activity under subsection (b)(3), unless the chief executive
officer has previously filed such a certification during that calendar
year.''.
(c) Effective Date.--The amendments made by this section shall take
effect upon the expiration of the 180-day period which begins on the
date of the enactment of this Act, and shall take effect without regard
to whether or not the Federal Election Commission has promulgated
regulations to carry out such amendments.
SEC. 3. CLARIFICATION OF APPLICATION OF FOREIGN MONEY BAN TO CERTAIN
DISBURSEMENTS AND ACTIVITIES.
(a) Application to Disbursements to Super PACs.--Section
319(a)(1)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30121(a)(1)(A)) is amended by striking the semicolon and inserting the
following: ``, including any disbursement to a political committee
which accepts donations or contributions that do not comply with 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);''.
(b) Conditions Under Which Corporate PACs May Make Contributions
and Expenditures.--Section 316(b) of such Act (52 U.S.C. 30118(b)) is
amended by adding at the end the following new paragraph:
``(8) A separate segregated fund established by a corporation may
not make a contribution or expenditure during a year unless the fund
has certified to the Commission the following during the year:
``(A) Each individual who manages the fund, and who is
responsible for exercising decisionmaking authority for the
fund, is a citizen of the United States or is lawfully admitted
for permanent residence in the United States.
``(B) No foreign national under section 319 participates in
any way in the decisionmaking processes of the fund with regard
to contributions or expenditures under this Act.
``(C) The fund does not solicit or accept recommendations
from any foreign national under section 319 with respect to the
contributions or expenditures made by the fund.
``(D) Any member of the board of directors of the
corporation who is a foreign national under section 319
abstains from voting on matters concerning the fund or its
activities.''.
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