This bill changes the Federal Election Campaign Act to stop certain domestic business entities with foreign owners or foreign control from making contributions, donations, expenditures, independent expenditures, or disbursements in U.S. elections. It adds new ownership and control tests that make an entity treated like a foreign national when foreign persons outside the United States: directly or indirectly own 50% or more of the entity; or own 1% or more individually (or 5% or more in the aggregate for multiple foreign persons); or have the power to direct the entity's decisionmaking about U.S. interests or election activities.
The bill requires the top executive of any business entity that makes a contribution or related spending to file, under penalty of perjury, a certification with the Federal Election Commission within 7 days saying the entity was not a foreign national when it made the payment. Beneficial ownership must be determined under applicable State law, except for certain registered companies that use the Securities Exchange Act definition. Businesses must give copies of that certification to recipients on request.
The bill makes it unlawful for a person who receives money from a business entity to use or pass along that money for covered political spending unless the business provided the required certification. There is an exception if the certification accompanies the funds and the recipient tracks and segregates the money. The bill defines "business entity" to include for-profit corporations, LLCs, partnerships, and similar for-profit entities. The new rules would take effect 180 days after enactment.
Section 3 clarifies that the ban covers disbursements connected to State and local ballot initiatives, referenda, and recall elections, and includes disbursements to political committees that accept donations that do not comply with federal limits or reporting. It also adds rules for corporate separate segregated funds (corporate PACs): the fund must certify managers are U.S. citizens or lawful permanent residents; no foreign national may participate in decisionmaking or solicit recommendations from foreign nationals; and foreign-national board members must abstain from PAC matters.
No publicly available information.
Supporters, including the Senators who introduced the measure, write the bill to extend the existing ban on contributions by foreign nationals to cover domestic businesses that are foreign-controlled, foreign-influenced, or foreign-owned. The text shows supporters want to close ownership and control loopholes, require written certifications, and stop uncertified funds from being used for political spending.
No publicly available information.