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