H.R. 4799: Ban Corporate PACs Act
This bill, known as the Ban Corporate PACs Act, aims to amend the Federal Election Campaign Act of 1971 by limiting the ability of corporations to create and manage political action committees (PACs). Here’s an overview of what the bill entails:
1. Definition of Nonprofit Corporations
The bill specifies that only nonprofit corporations, as defined under section 501(c) of the Internal Revenue Code, can establish and operate separate segregated funds for political purposes. This definition excludes any corporation that does not qualify for tax-exempt status under specific conditions.
2. Limitation on Solicitation of Contributions
The bill also changes who can contribute to these funds. Contributions will now only be permissible from executive and administrative personnel of the nonprofit corporation, removing the ability for corporations to solicit contributions from stockholders and their families. This adjustment aims to restrict the sources of funding for corporate PACs.
3. Changes Impacting Government Contractors
The legislation amends provisions regarding government contractors, ensuring that only nonprofit corporations can be involved in the solicitation and management of such funds related to government contracts.
4. Transition Period for Existing Funds
For any existing separate segregated funds that are not associated with a nonprofit corporation, the bill requires these funds to terminate and distribute their remaining balances within one year of the bill's enactment.
5. Effective Date
The amendments proposed by this bill would take effect immediately upon its enactment, imposing the new rules and restrictions without any delay.
Relevant Companies
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This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
2 bill sponsors
Actions
2 actions
Date | Action |
---|---|
Jul. 29, 2025 | Introduced in House |
Jul. 29, 2025 | Referred to the House Committee on House Administration. |
Corporate Lobbying
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Potentially Relevant Congressional Stock Trades
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