H.R. 4799 — Ban Corporate PACs Act

This section limits authority to establish or operate separate segregated funds (SSFs)—i.e., corporate political action committees funded by voluntary individual contributions—to nonprofit corporations (from any corporation), defining nonprofit corporation as an organization described in IRC §501(c) and exempt from tax under §501(a) (excluding any that would be ineligible for such exemption upon establishing an SSF). The section further revises solicitation rules for such SSFs by (1) permitting nonprofit corporations to solicit only executive or administrative personnel (striking stockholders and their families); and (2) applying the prohibition on government contractors establishing SSFs only to nonprofit corporations (from any corporation).

This section makes the amendments in this Act effective upon the date of enactment and requires separate segregated funds (SSFs)—corporate or labor organization political action committees (PACs) established under current law (52 U.S.C. 30118(b)(2)(C)) as of enactment, excluding those of nonprofit corporations as newly defined—that are not affiliated with a nonprofit corporation to terminate and disburse their entire balance within one year of enactment. (Thus, for-profit corporate SSFs must cease operations and spend remaining funds by that deadline.)