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Prohibiting Payments to Entities Controlled by Political Committee Insiders, Combating Scam PACs

This new law aims to protect political donors from fraud by prohibiting political committees from disbursing funds to entities owned or controlled by individuals with executive or managerial authority over the committee, or their family members. This measure seeks to prevent the misuse of funds intended for candidate and party support, thereby increasing trust in the electoral process. Citizens can be more confident that their donations will go towards intended political purposes rather than personal enrichment of organizers.
Key points
Disbursement Ban: Political committees are prohibited from making payments to entities owned or controlled by their operators or their family members, unless the majority of funds are spent on legitimate political expenditures.
Donor Protection: The Act targets "scam PACs" – committees that solicit contributions promising to support candidates but primarily use funds for personal compensation and fundraising costs.
Increased Integrity: The goal is to enhance the integrity of campaign finance and restore public confidence in democratic institutions.
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Additional Information
Print number: 118_HR_6893
Sponsor: Rep. Porter, Katie [D-CA-47]
Process start date: 2023-12-22