Bill > HR5129

This bill, the Ban Corporate PACs Act, amends the Federal Election Campaign Act of 1971 to limit the authority of corporations to establish and operate separate segregated funds utilized for political purposes, such as the establishment or operation of a political committee. The bill restricts this authority to only nonprofit corporations, which are defined as tax-exempt organizations under Section 501(c) of the Internal Revenue Code, excluding those that are ineligible for tax-exempt status if they establish a separate segregated fund. Additionally, the bill permits the solicitation of contributions only from a nonprofit corporation's executive and administrative personnel, and not from its shareholders or their families. The amendments made by this bill take effect upon enactment, and existing corporate separate segregated funds that do not meet the new definition of a nonprofit corporation must terminate and disburse their entire balances within one year.