PROHIBITION OF CORPORATE AND LABOR DISBURSEMENTS FOR ELECTIONEERING COMMUNICATIONS.

SEC. 203. PROHIBITION OF CORPORATE AND LABOR DISBURSEMENTS FOR ELECTIONEERING COMMUNICATIONS. (a) In General.—Section 316(b)(2) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by inserting “or for any applicable electioneering communication” before “, but shall not include”. (b) Applicable Electioneering Communication.—Section 316 of such Act is amended by adding at the end the following: “(c) Rules Relating to Electioneering Communications.— “(1) Applicable electioneering communication.—For purposes of this section, the term ‘applicable electioneering communication’ means an electioneering communication (within the meaning of section 304(f)(3)) which is made by any entity described in subsection (a) of this section or by any other person using funds donated by an entity described in subsection (a) of this section. “(2) Exception.—Notwithstanding paragraph (1), the term ‘applicable electioneering communication’ does not include a communication by a section 501(c)(4) organization or a political organization (as defined in section 527(e)(1) of the Internal Revenue Code of 1986) made under section 304(f)(2)(E) or (F) of this Act if the communication is paid for exclusively by funds provided directly by individuals who are United States citizens or nationals or lawfully admitted for permanent residence (as defined in section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(20))). For purposes of the preceding sentence, the term ‘provided directly by individuals’ does not include funds the source of which is an entity described in subsection (a) of this section. “(3) Special operating rules.— “(A) Definition under paragraph (1).—An electioneering communication shall be treated as made by an entity described in subsection (a) if an entity described in subsection (a) directly or indirectly disburses any amount for any of the costs of the communication. “(B) Exception under paragraph (2).—A section 501(c)(4) organization that derives amounts from business activities or receives funds from any entity described in subsection (a) shall be considered to have paid for any communication out of such amounts unless such organization paid for the communication out of a segregated account 116 STAT. 92 to which only individuals can contribute, as described in section 304(f)(2)(E). “(4) Definitions and rules.—For purposes of this subsection— “(A) the term ‘section 501(c)(4) organization’ means “(i) an organization described in section 501(c)(4) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; or “(ii) an organization which has submitted an application to the Internal Revenue Service for determination of its status as an organization described in clause (i); and “(B) a person shall be treated as having made a disbursement if the person has executed a contract to make the disbursement. “(5) Coordination with internal revenue code.—Nothing in this subsection shall be construed to authorize an organization exempt from taxation under section 501(a) of the Internal Revenue Code of 1986 to carry out any activity which is prohibited under such Code.”.