1. Short title
This Act may be cited as the “Campaign Finance Transparency Act”.
Campaign Finance Transparency Act
A BILL
To reform the Federal Election Commission’s enforcement processes and related provisions under the Federal Election Campaign Act of 1971.
2. Revision to enforcement process
Standard for initiating investigations and determining whether violations have occurred—
Revision of standards— Section 309(a) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30109(a)) is amended by striking paragraphs (2) and (3) and inserting the following:
“(2)
“(A) The general counsel, upon receiving a complaint filed with the Commission under paragraph (1) or upon the basis of information ascertained by the Commission in the normal course of carrying out its supervisory responsibilities, shall make a determination as to whether or not there is reason to believe that a person has committed, or is about to commit, a violation of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1986, and as to whether or not the Commission should either initiate an investigation of the matter or that the complaint should be dismissed. The general counsel shall promptly provide notification to the Commission of such determination and the reasons therefore, together with any written response submitted under paragraph (1) by the person alleged to have committed the violation. Upon the expiration of the 30-day period which begins on the date the general counsel provides such notification, the general counsel’s determination shall take effect, unless during such 30-day period the Commission, by vote of a majority of the members of the Commission who are serving at the time, overrules the general counsel’s determination. If the determination by the general counsel that the Commission should investigate the matter takes effect, or if the determination by the general counsel that the complaint should be dismissed is overruled as provided under the previous sentence, the general counsel shall initiate an investigation of the matter on behalf of the Commission.
“(B) If the Commission initiates an investigation pursuant to subparagraph (A), the Commission, through the Chair, shall notify the subject of the investigation of the alleged violation. Such notification shall set forth the factual basis for such alleged violation. The Commission shall make an investigation of such alleged violation, which may include a field investigation or audit, in accordance with the provisions of this section. The general counsel shall provide notification to the Commission of any intent to issue a subpoena or conduct any other form of discovery pursuant to the investigation. Upon the expiration of the 15-day period which begins on the date the general counsel provides such notification, the general counsel may issue the subpoena or conduct the discovery, unless during such 15-day period the Commission, by vote of a majority of the members of the Commission who are serving at the time, prohibits the general counsel from issuing the subpoena or conducting the discovery.
“(3)
“(A) Upon completion of an investigation under paragraph (2), the general counsel shall make a determination as to whether or not there is probable cause to believe that a person has committed, or is about to commit, a violation of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1986, and shall promptly submit such determination to the Commission, and shall include with the determination a brief stating the position of the general counsel on the legal and factual issues of the case.
“(B) At the time the general counsel submits to the Commission the determination under subparagraph (A), the general counsel shall simultaneously notify the respondent of such determination and the reasons therefore, shall provide the respondent with an opportunity to submit a brief within 30 days stating the position of the respondent on the legal and factual issues of the case and replying to the brief of the general counsel. The general counsel shall promptly submit such brief to the Commission upon receipt.
“(C) Upon the expiration of the 30-day period which begins on the date the general counsel submits the determination to the Commission under subparagraph (A) (or, if the respondent submits a brief under subparagraph (B), upon the expiration of the 30-day period which begins on the date the general counsel submits the respondent’s brief to the Commission under such subparagraph), the general counsel’s determination shall take effect, unless during such 30-day period the Commission, by vote of a majority of the members of the Commission who are serving at the time, overrules the general counsel’s determination. If the determination by the general counsel that there is probable cause to believe that a person has committed, or is about to commit, a violation of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1986, or if the determination by the general counsel that there is not probable cause that a person has committed or is about to commit such a violation is overruled as provided under the previous sentence, for purposes of this subsection, the Commission shall be deemed to have determined that there is probable cause that the person has committed or is about to commit such a violation.”
Conforming amendment relating to Initial response to filing of complaint— Section 309(a)(1) of such Act (52 U.S.C. 30109(a)(1)) is amended—
in the third sentence, by striking “the Commission” and inserting “the general counsel”; and
by amending the fourth sentence to read as follows: “Not later than 15 days after receiving notice from the general counsel under the previous sentence, the person may provide the general counsel with a written response that no action should be taken against such person on the basis of the complaint.”.
Revision of standard for review of dismissal of complaints—
In general— Section 309(a)(8) of such Act (52 U.S.C. 30109(a)(8)) is amended to read as follows:
“(8)
“(A)
“(i) Any party aggrieved by an order of the Commission dismissing a complaint filed by such party may file a petition with the United States District Court for the District of Columbia. Any petition under this subparagraph shall be filed within 60 days after the date on which the party received notice of the dismissal of the complaint.
“(ii) In any proceeding under this subparagraph, the court shall determine by de novo review whether the agency’s dismissal of the complaint is contrary to law. In any matter in which the penalty for the alleged violation is greater than $50,000, the court should disregard any claim or defense by the Commission of prosecutorial discretion as a basis for dismissing the complaint.
“(B)
“(i) Any party who has filed a complaint with the Commission and who is aggrieved by a failure of the Commission, within one year after the filing of the complaint, to act on such complaint, may file a petition with the United States District Court for the District of Columbia.
“(ii) In any proceeding under this subparagraph, the court shall determine by de novo review whether the agency’s failure to act on the complaint is contrary to law.
“(C) In any proceeding under this paragraph the court may declare that the dismissal of the complaint or the failure to act is contrary to law, and may direct the Commission to conform with such declaration within 30 days, failing which the complainant may bring, in the name of such complainant, a civil action to remedy the violation involved in the original complaint.”
Effective date— The amendments made by paragraph (1) shall apply—
in the case of complaints which are dismissed by the Federal Election Commission, with respect to complaints which are dismissed on or after the date of the enactment of this Act; and
in the case of complaints upon which the Federal Election Commission failed to act, with respect to complaints which were filed on or after the date of the enactment of this Act.
Regulations— Not later than 180 days after the date of the enactment of this Act, the Federal Election Commission shall promulgate new regulations on the enforcement process under section 309 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30109) to take into account the amendments made by this section.
3. Official exercising the responsibilities of the general counsel
Section 306(f)(1) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30106(f)(1)) is amended by adding at the end the following new sentence: “In the event of a vacancy in the position of the general counsel, the most senior attorney employed within the Office of the General Counsel at the time the vacancy arises shall exercise all the responsibilities of the general counsel until the vacancy is filled.”.
4. Permitting appearance at hearings on requests for advisory opinions by persons opposing the requests
In general— Section 308 of such Act (52 U.S.C. 30108) is amended by adding at the end the following new subsection:
“(e) To the extent that the Commission provides an opportunity for a person requesting an advisory opinion under this section (or counsel for such person) to appear before the Commission to present testimony in support of the request, and the person (or counsel) accepts such opportunity, the Commission shall provide a reasonable opportunity for an interested party who submitted written comments under subsection (d) in response to the request (or counsel for such interested party) to appear before the Commission to present testimony in response to the request.”
Effective date— The amendment made by subsection (a) shall apply with respect to requests for advisory opinions under section 308 of the Federal Election Campaign Act of 1971 which are made on or after the date of the enactment of this Act.
5. Permanent extension of administrative penalty authority
Section 309(a)(4)(C)(v) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30109(a)(4)(C)(v)) is amended by striking “, and that end on or before December 31, 2023”.
6. Restrictions on ex parte communications
Section 306(e) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30106(e)) is amended—
by striking “(e) The Commission” and inserting “(e)(1) The Commission”; and
by adding at the end the following new paragraph:
“(2) Members and employees of the Commission shall be subject to limitations on ex parte communications, as provided in the regulations promulgated by the Commission regarding such communications which are in effect on the date of the enactment of this paragraph.”
7. Clarifying authority of FEC attorneys to represent FEC in Supreme Court
Clarifying authority— Section 306(f)(4) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30106(f)(4)) is amended by striking “any action instituted under this Act, either (A) by attorneys” and inserting “any action instituted under this Act, including an action before the Supreme Court of the United States, either (A) by the general counsel of the Commission and other attorneys”.
Effective date— The amendment made by paragraph (1) shall apply with respect to actions instituted before, on, or after the date of the enactment of this Act.
8. Requiring forms to permit use of accent marks
Requirement— Section 311(a)(1) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30111(a)(1)) is amended by striking the semicolon at the end and inserting the following: “, and shall ensure that all such forms (including forms in an electronic format) permit the person using the form to include an accent mark as part of the person’s identification;”.
Effective date— The amendment made by subsection (a) shall take effect upon the expiration of the 90-day period which begins on the date of the enactment of this Act.
9. Extension of the statutes of limitations for offenses under the Federal Election Campaign Act of 1971
Civil offenses— Section 309(a) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30109(a)) is amended by inserting after paragraph (9) the following new paragraph:
“(10) No person shall be subject to a civil penalty under this subsection with respect to a violation of this Act unless a complaint is filed with the Commission with respect to the violation under paragraph (1), or the Commission responds to information with respect to the violation which is ascertained in the normal course of carrying out its supervisory responsibilities under paragraph (2), not later than 10 years after the date on which the violation occurred.”
Criminal offenses— Section 406(a) of such Act (52 U.S.C. 30145(a)) is amended by striking “5 years” and inserting “10 years”.
Effective date— The amendments made by this section shall apply with respect to violations occurring on or after the date of enactment of this Act.
10. Effective date; transition
In General— Except as otherwise provided, this Act and the amendments made by this Act shall take effect and apply on the date of the enactment of this Act, without regard to whether or not the Federal Election Commission has promulgated regulations to carry out this Act and the amendments made by this Act.
Transition—
No effect on existing cases or proceedings— Nothing in this Act or in any amendment made by this Act shall affect any of the powers exercised by the Federal Election Commission prior to the date of the enactment of this Act, including any investigation initiated by the Commission prior to such date or any proceeding (including any enforcement action) pending as of such date.
Treatment of certain complaints— If, as of the date of the enactment of this Act, the general counsel of the Federal Election Commission has not made any recommendation to the Commission under section 309(a) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30109) with respect to a complaint filed prior to the date of the enactment of this Act, this Act and the amendments made by this Act shall apply with respect to the complaint in the same manner as this Act and the amendments made by this Act apply with respect to a complaint filed on or after the date of the enactment of this Act.