S. 2515 — Ban Corporate PACs Act

This section limits authority to establish or operate separate segregated funds (SSFs, i.e., corporate PACs that fund federal election activities through voluntary contributions) under the Federal Election Campaign Act of 1971 to nonprofit corporations (defined as 501(c) organizations exempt from tax under IRC §501(a), excluding those that would become ineligible for exemption by establishing an SSF), replacing prior allowance for any corporation. It further revises SSF solicitation rules to permit contacts only with executive or administrative personnel (from stockholders, their families, and executive or administrative personnel) by (1) striking stockholder references in §316(b)(4)(A)(i), (4)(B), (4)(D), and (5); and (2) limiting such solicitations explicitly to nonprofit corporations. The section also applies the prohibition on SSFs for government contractors to nonprofit corporations only (from any corporation).

This section (1) makes the amendments in this Act effective on the date of enactment; (2) requires separate segregated funds (SSFs)—established and operating under FECA §316(b)(2)(C) (i.e., corporate or labor organization PACs funded by voluntary contributions from executives, members, and their families)—that are not affiliated with a nonprofit corporation, as defined in new FECA §316(b)(8), to terminate and disburse their entire balances within one year of enactment. (Thus, SSFs of for-profit corporations and labor organizations must wind down, while those of qualifying nonprofits may continue.)