Ban Corporate PACs Act

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.

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.

Section 316(b) of such Act (52 U.S.C. 30118(b)) is amended—

(1) in paragraph (4)(A)(i), by striking its stockholders and their families and;

(2) in paragraph (4)(B)—

(A) by striking a corporation the first place it appears and inserting a nonprofit corporation;

(B) by striking any stockholder, executive or administrative personnel, and inserting any executive or administrative personnel; and

(C) by striking stockholders, executive or administrative personnel, and inserting executive or administrative personnel;

(3) in paragraph (4)(D)—

(A) by striking stockholders and;

(B) by striking such stockholders or personnel and inserting such personnel; and

(C) by striking such stockholders and personnel and inserting such personnel; and

(4) in paragraph (5), by striking stockholders and.

Section 317(b) of such Act (52 U.S.C. 30119(b)) is amended—

(1) by striking any corporation and inserting any nonprofit corporation; and

(2) by striking a corporation and inserting a nonprofit corporation.

The amendments made by this Act shall take effect on the date of the enactment of this Act.

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.