Openness in Political Expenditures Now Act or OPEN Act
This bill amends the Federal Election Campaign Act of 1971 to require a corporation that submits regular, periodic reports to its shareholders to include in each such report specified information on disbursements it has made for certain political activity (including independent expenditures and electioneering communications) during the period covered by the report. The amount of disbursements reported, however, is limited to the amount that equals or exceeds the applicable threshold for the covered political activity.
"Applicable threshold" for a disbursement is defined as: (1) $250 for an independent expenditure, (2) $10,000 for an electioneering communication or another kind of communication meeting specified criteria, and (3) the amount of the applicable limitation on contributions in effect for payment of dues or other amounts to a trade association or to a tax-exempt social welfare organization.
A Corporation reporting such expenditures shall: (1) file a statement about them with the Election Assistance Commission (EAC), and (2) post on its website (if any) a hyperlink from its homepage to this statement on the EAC website.
This bill amends the Internal Revenue Code to deny a tax exemption for a social welfare organization if: (1) its expenditures for the taxable year for covered political activity exceed the lesser of 10% of its total expenditures or $10 million, or (2) its governing instrument does not effectively prohibit its expenditures for a covered political activity from exceeding these thresholds.