SCAM PAC Act

Stopping Corrupt Actors from Making Political Action Committees Act or the SCAM PAC Act

This bill generally prohibits a political committee from disbursing funds to an entity that is owned or controlled by an individual, or the immediate family member of an individual, who has authority to carry out specified activities for the committee (e.g., soliciting funds) or is employed by the committee to provide it with professional services. This prohibition does not apply to (1) a political committee that certifies that a majority of the funds disbursed by the committee were for expenses other than administrative costs, fundraising costs, and employee salaries; or (2) an authorized committee of a candidate, a committee of a political party, or a separate segregated fund of a corporation or labor organization.

Further, the bill prohibits a political committee from employing these individuals or allowing them to volunteer on its behalf if the related entity accepted funds from a political committee.

Bill 117 hr 6494, also known as the SCAM PAC Act, is a piece of legislation introduced in the US Congress aimed at addressing the issue of fraudulent political action committees (PACs). PACs are organizations that raise money to support political candidates or causes, but some PACs engage in deceptive practices to mislead donors and misuse funds.

The SCAM PAC Act seeks to combat these fraudulent practices by requiring PACs to disclose more information about their activities, including how much money they raise and spend, as well as the names of their top donors. This increased transparency is intended to help donors make more informed decisions about which PACs to support and to hold fraudulent PACs accountable for their actions.

Additionally, the bill includes provisions to strengthen enforcement mechanisms against fraudulent PACs, such as increasing penalties for violations and giving the Federal Election Commission more authority to investigate and prosecute offenders. By cracking down on fraudulent PACs, the SCAM PAC Act aims to protect the integrity of the political fundraising process and ensure that donors' contributions are used for their intended purposes. Overall, the SCAM PAC Act is a bipartisan effort to address a growing problem in the political fundraising landscape and to protect donors from being misled or defrauded by unscrupulous PACs. If passed, this legislation has the potential to improve transparency and accountability in the political fundraising process and to restore trust in the integrity of our democratic institutions.