Bill > HR5941

This bill, the Ban Corporate PACs Act, aims to limit the authority of corporations to establish and operate separate segregated funds for political purposes, including political committees, to only nonprofit corporations. The bill amends the Federal Election Campaign Act to define "nonprofit corporation" as a corporation described in section 501(c) of the Internal Revenue Code and exempt from taxation under section 501(a), excluding corporations that are ineligible for such tax-exempt status if they establish a separate segregated fund. The bill also prohibits corporations from soliciting contributions for such funds from stockholders and their families, allowing solicitation only from executive and administrative personnel. Additionally, the amendments apply the same restrictions to government contractors. The bill takes effect immediately and requires existing funds that do not meet the nonprofit corporation definition to terminate and disburse their balances within one year of the bill's enactment.