[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2566 Introduced in House (IH)]
1st Session
H. R. 2566
To reform the financing of Federal elections, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 31, 1995
Mrs. Smith of Washington (for herself, Mr. Meehan, Mr. Shays, Mr.
Minge, Mrs. Roukema, Mr. Bereuter, Mr. Poshard, Mr. Cardin, Mr. Leach,
Mr. Horn, Mr. Inglis of South Carolina, and Mr. Forbes) introduced the
following bill; which was referred to the Committee on House Oversight
_______________________________________________________________________
A BILL
To reform the financing of Federal elections, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bipartisan Clean Congress Act of
1995''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND BENEFITS
Sec. 101. House of Representatives election spending limits and
benefits.
Sec. 102. Broadcast rates and preemption.
Sec. 103. Reduced postage rates.
Sec. 104. Contribution limit for eligible House of Representatives
candidates.
Sec. 105. Reporting requirements.
TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE
Subtitle A--Elimination of Political Action Committees From Federal
Election Activities
Sec. 201. Ban on activities of political action committees in Federal
elections.
Sec. 202. Aggregate limit on large contributions.
Sec. 203. Contributions by lobbyists.
Subtitle B--Provisions Relating to Soft Money of Political Parties
Sec. 211. Soft money of political parties.
Sec. 212. Reporting requirements.
Sec. 213. Building fund exception to the definition of the term
``contribution''.
Subtitle C--Soft Money of Persons Other Than Political Parties
Sec. 221. Soft money of persons other than political parties.
Subtitle D--Contributions
Sec. 231. Contributions through intermediaries and conduits.
Subtitle E--Additional Prohibitions on Contributions
Sec. 241. Allowable contributions for candidates.
Subtitle F--Independent Expenditures
Sec. 251. Provisions relating to independent expenditures.
Sec. 252. Reporting requirements for certain independent expenditures.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Restrictions on use of campaign funds for personal purposes.
Sec. 302. Campaign advertising amendments.
Sec. 303. Filing of reports using computers and facsimile machines.
Sec. 304. Audits.
Sec. 305. Change in certain reporting from a calendar year basis to an
election cycle basis.
Sec. 306. Disclosure of personal and consulting services.
Sec. 307. Use of candidates' names.
Sec. 308. Reporting requirements.
Sec. 309. Simultaneous registration of candidate and candidate's
principal campaign committee.
Sec. 310. Independent litigation authority.
Sec. 311. Insolvent political committees.
Sec. 312. Regulations relating to use of non-Federal money.
Sec. 313. Term limits for Federal Election Commission.
Sec. 314. Authority to seek injunction.
Sec. 315. Expedited procedures.
Sec. 316. Official mass mailing allowance.
Sec. 317. Provisions relating to members' official mail allowance.
Sec. 318. Intent of Congress.
Sec. 319. Severability.
Sec. 320. Expedited review of constitutional issues.
Sec. 321. Effective date.
Sec. 322. Regulations.
TITLE I--HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND BENEFITS
SEC. 101. HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND
BENEFITS.
The Federal Election Campaign Act of 1971 is amended by adding at
the end the following new title:
``TITLE V--SPENDING LIMITS AND BENEFITS FOR HOUSE OF REPRESENTATIVES
ELECTION CAMPAIGNS
``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.
``(a) In General.--For purposes of this title, a candidate is an
eligible House of Representatives candidate if the Commission has
certified, pursuant to section 504, that the candidate--
``(1) meets the election cycle filing requirements of
subsection (b); and
``(2) meets the threshold contribution requirements of
subsection (c).
``(b) Filing Requirements.--
``(1) In general.--The requirements of this subsection are
met if the candidate files with the Commission under penalty of
perjury a declaration that--
``(A) the candidate and the candidate's authorized
committees--
``(i) will not exceed the expenditure
limits under section 502(a), (b), and (c);
``(ii) will not accept contributions in
excess of the election cycle expenditure limit,
reduced by any amounts transferred to this
election cycle from a preceding election cycle;
``(iii) will not, in the event of a runoff
election, accept contributions in excess of the
runoff expenditure limit, reduced by any
amounts transferred to this election cycle from
a preceding election cycle; and
``(iv) will not accept any contributions in
violation of section 315; and
``(B) the candidate intends to make use of the
benefits provided under section 503.
``(2) Deadline for filing declaration.--The declaration
under paragraph (1) shall be filed the date the candidate files
as a candidate for the primary election. In the case of a
candidate who is not eligible to participate in a primary
election but qualifies for the general election ballot under
State law, the declaration under paragraph (1) shall be filed
not later than the date the candidate qualifies for the general
election ballot under State law.''.
``(3) Notification.--A candidate who--
``(A) files a declaration pursuant to subsection
(b)(1) of this Act; and
``(B) subsequently acts in a manner inconsistent
with any of the limitations or requirements of the
declaration filed under subsection (b)(1) shall file a
notification regarding such acts with the Commission
not later than 24 hours after the first such act
inconsistent with any of the limitations or
requirements and shall at the same time notify all
other candidates for the same office by sending a copy
of the notification filed with the Commission by
certified mail, return receipt requested.
``(c) Threshold Contribution Requirements.--
``(1) In general.--The requirements of this subsection are
met if the candidate and the candidate's authorized committees
have received allowable contributions during the applicable
period in an amount equal to 10 percent of the election cycle
expenditure limit under section 502(b), and file with the
Commission under penalty of perjury a statement with supporting
materials demonstrating that this requirement has been met.
``(2) Definitions.--For purposes of this Act--
``(A) the term `allowable contributions' means
contributions that are made as gifts of money by an
individual pursuant to a written instrument identifying
such individual as the contributor, except that such
term shall not include contributions from individuals
residing outside the candidate's State to the extent
such contributions exceed 40 percent of the amount set
forth in paragraph (1), provided that--
``(i) no more than $200 of any contribution
from an individual shall be taken in account;
``(ii) at least 50 percent of the amount
required to be raised in the candidate's State
comes from contributions from individuals
residing in the congressional district of such
candidate; and
``(iii) such term shall not include any
contribution within the meaning of section
315(a)(8), as amended by section 231; and
``(B) the term `applicable period' means--
``(i) the period beginning on January 1 of
the calendar year preceding the calendar year
of the general election involved and ending on
the date of the general election; or
``(ii) in the case of a special election
for the office of Representative in, or
Delegate or Resident Commissioner to, the
Congress, the period beginning on the date the
vacancy in such office occurs and ending on the
date of the general election.
``SEC. 502. LIMITATION ON EXPENDITURES.
``(a) Limitation on Use of Personal Funds.--
``(1) In general.--The aggregate amount of expenditures
that may be made during an election cycle by an eligible House
of Representatives candidate or such candidate's authorized
committees from the sources described in paragraph (2) shall
not exceed 10 percent of the election cycle expenditure limit
under subsection (b).
``(2) Sources.--A source is described in this subsection if
it is--
``(A) personal funds of the candidate and members
of the candidate's immediate family; or
``(B) personal loans incurred by the candidate and
members of the candidate's immediate family.
``(b) Election Cycle Expenditure Limit.--
``(1) In general.--Except as otherwise provided in this
title, the aggregate amount of expenditures for an election
cycle by an eligible House of Representatives candidate and the
candidate's authorized committees shall not exceed $600,000.
``(2) Indexing.--The amount under paragraph (1) shall be
increased as of the beginning of each calendar year based on
the increase in the price index determined under section
315(c), except that the base period shall be calendar year
1996.
``(c) Runoff Expenditure Limits.--The aggregate amount of
expenditures for a runoff election by an eligible House of
Representatives candidate and the candidate's authorized committees
shall not exceed 20 percent of the election cycle expenditure limit
under subsection (b).
``(d) Payment of Taxes.--The limitation under subsection (b) shall
not apply to any expenditure for Federal, State, or local taxes with
respect to earnings on contributions raised.
``(e) Contested Primary.--If, as determined by the Commission, an
eligible House of Representatives candidate in a contested primary wins
that primary election by a margin of 10 percent or less, the limitation
contained in subsection (b)(1) shall be increased by 30 percent for
such candidate, and such candidate shall be entitled to raise
additional contributions not to exceed this amount.
``(f) Complying Candidates Running Against Noncomplying
Candidates.--
``(1) If in the case of an election with more than one
candidate where any candidate either--
``(A) fails to be certified as an eligible
candidate by the Commission and has expended personal
funds in excess of 10 percent of the election cycle
limits contained in subsection (b) or has received
contributions or expended personal funds which in the
aggregate exceed 70 percent of the election cycle
limits contained in subsection (b), or
``(B) violates the limitations on expenditures of
this Act, any eligible House of Representatives
candidate in that election shall be permitted to raise
additional contributions up to an amount equal to 50
percent of the election cycle limit contained in
subsection (b).
``(2) If the candidate who has failed to be certified as an
eligible candidate or who has violated the limitations on
expenditures of this Act has received contributions or expended
personal funds which, in the aggregate, exceed 120 percent of
the election cycle limits contained in this section, any
eligible House of Representatives candidate in that election
shall be permitted to raise additional contributions up to an
amount equal to 100 percent of the election cycle limit
contained in subsection (b).
``(3) In the event a noncomplying candidate as defined in
subparagraphs (A) or (B) of paragraph (1) spends an amount
equal to 105 percent of the election cycle limit contained in
subsection (b), the election cycle limit contained in
subsection (b) for an eligible House of Representatives
candidate in such election shall be increased by 50 percent. In
the event a noncomplying candidate spends an amount equal to
155 percent of the election cycle limit contained in subsection
(b), the election cycle limit in subsection (b) for an eligible
House of Representatives candidate in such election shall be
increased by 100 percent.
``(g) Responding to Independent Expenditures.--In the event an
eligible House of Representatives candidate is notified pursuant to
section 304(c)(4) by the Commission that independent expenditures
totaling in the aggregate $25,000 or more have been made in the same
election in favor of another candidate or against such eligible
candidate, such eligible candidate shall be permitted to spend an
amount equal to the amount of such independent expenditures, without
such expenditures being subject to such eligible candidates's election
cycle expenditure limit in subsection (b), as may be modified by
subsection (c), (e), or (f).
``SEC. 503. BENEFITS ELIGIBLE CANDIDATES ENTITLED TO RECEIVE.
``For any election in which an eligible House of Representatives
candidate has at least one opponent who has qualified for the ballot
and who has raised in contributions or expended in personal funds an
amount equal to 10 percent of the election cycle limit in section
502(b), such eligible candidate shall be entitled to receive--
``(1) the broadcast media rates provided under section
315(b) of the Communications Act of 1934; and
``(2) the reduced postage rates provided in section 3626(e)
of title 30, United States Code.
``SEC. 504. CERTIFICATION BY COMMISSION.
``(a) In General.--The Commission shall determine whether a
candidate has met the requirements of this title and, based upon that
determination, shall issue a certification stating whether or not such
candidate is eligible to receive benefits under this title.
``(b) Certification.--Upon receipt of the declaration required
under section 501(b) and the statement required under section 501(c),
and such other information as the Commission may by regulation require,
the Commission shall determine if such candidate meets the eligibility
requirements in section 501 and, if so, shall certify the candidate's
eligibility for the benefits referred to in section 503. The Commission
shall revoke such certification if, based on relevant information
submitted in such form and manner as the Commission may require or
based on relevant information that otherwise comes to its attention, it
determines a candidate fails to continue to meet any of the
requirements of this title, including the limitations on expenditures
set forth in section 502(a), (b) and (c).
``(c) Determination by Commission.--All determinations (including
certifications under this section) made by the Commission under this
title shall be final, except to the extent that they are subject to
examination and audit by the Commission under section 505 and subject
to judicial review.
``SEC. 505. REPAYMENTS; ADDITIONAL CIVIL PENALTIES.
``(a) Misuse of Benefits.--If the Commission determines that any
benefit made available to an eligible House of Representatives
candidate under this title was not used as provided for in this title,
or that an eligible candidate has violated any of the spending limits
contained in this Act or otherwise revokes the certification of a
candidate as an eligible House of Representatives candidate, the
Commission shall so notify the candidate and the candidate shall pay to
the provider of such benefits received an amount equal to the value of
the benefits received under this title.
``(b) Civil Penalties.--
``(1) Low amount of excess expenditures.--Any eligible
House of Representatives candidate who makes expenditures that
exceed a limitation under this title by 2.5 percent or less
shall pay to the Commission an amount equal to the amount of
the excess expenditures.
``(2) Medium amount of excess expenditures.--Any eligible
House of Representatives candidate who makes expenditures that
exceed a limitation under this title by more than 2.5 percent
and less than 5 percent shall pay to the Commission an amount
equal to 3 times the amount of the excess expenditures.
``(3) Large amount of excess expenditures.--Any eligible
House of Representatives candidate who makes expenditures that
exceed a limitation under this title by 5 percent or more shall
pay to the Commission an amount equal to 3 times the amount of
the excess expenditures plus a civil penalty to be imposed
pursuant to the procedures of section 309 of this Act (2 U.S.C.
437(g)).''.
SEC. 102. BROADCAST RATES AND PREEMPTION.
(a) Broadcast Rates.--Section 315(b) of the Communications Act of
1934 (47 U.S.C. 315(b)) is amended--
(1) by striking ``(b) The charges'' and inserting ``(b)(1)
The charges'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) in paragraph (1)(A), as redesignated--
(A) by striking ``forty-five'' and inserting
``30''; and
(B) by striking ``lowest unit charge of the station
for the same class and amount of time for the same
period'' and inserting ``lowest charge of the station
for the same amount of time for the same period on the
same date''; and
(4) by adding at the end the following new paragraph:
``(2) In the case of an eligible House of Representatives candidate
(as described in section 501(a) of the Federal Election Campaign Act of
1971), the charges for the use of a television or radio broadcasting
station during the 30-day period and 60-day period referred to in
paragraph (1)(A) shall not exceed 50 percent of the lowest charge
described in paragraph (1)(A).''.
(b) Preemption; Access.--Section 315 of such Act (47 U.S.C. 315) is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting immediately after subsection (b) the
following subsection:
``(c)(1) Except as provided in paragraph (2), a licensee shall not
preempt the use, during any period specified in subsection (b)(1)(A),
of a broadcasting station by an eligible House of Representatives
candidate who has purchased and paid for such use pursuant to
subsection (b)(2).
``(2) If a program to be broadcast by a broadcasting station is
preempted because of circumstances beyond the control of the
broadcasting station, any candidate advertising spot scheduled to be
broadcast during that program may also be preempted.''.
(c) Revocation of License for Failure To Permit Access.--Section
312(a)(7) of the Communications Act of 1934 (47 U.S.C. 312(a)(7)) is
amended--
(1) by striking ``or repeated'';
(2) by inserting ``or cable system'' after ``broadcasting
station''; and
(3) by striking ``his candidacy'' and inserting ``the
candidacy of such person, under the same terms, conditions, and
business practices as apply to its most favored advertiser''.
(d) Jurisdiction Over Takings Challenge to Broadcast Rates.--The
United States Court of Federal Claims shall have exclusive jurisdiction
over any action challenging the constitutionality of the broadcast
media rates required to be offered to political candidates under
section 503(1) of the Federal Election Campaign Act of 1971 and section
315(b) of the Communications Act of 1934. Money damages shall be the
sole and exclusive remedy in such cases, and only individuals or
entities suffering actual financial injury shall have standing to
maintain such an action.
(e) Condition of Renewal or New License.--Section 307 of the
Communications Act of 1934 is amended by adding the following: ``The
continuation of an existing license, the renewal of an expiring
license, and the issuance of a new license shall be expressly
conditioned on the agreement by the licensee to abide by the provisions
of section 503(1) of the Federal Election Campaign Act of 1971 and
section 315(b) of this Act. The Commission shall take such action as it
deems appropriate to assure compliance with this requirement.''.
(f) Regulations.--The Commission, in consultation with the Federal
Communications Commission, shall issue regulations to modify the
requirements of this section in any cases where a licensee establishes
that such requirements would impose significant economic hardship.
(g) Effective Date.--The amendments made by this section shall
apply to the general elections occurring after December 31, 1996 (and
the election cycles relating thereto).
SEC. 103. REDUCED POSTAGE RATES.
(a) In General.--Section 3626(e) of title 39, United States Code,
is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``and the National'' and
inserting ``the National''; and
(ii) by inserting before the semicolon the
following: ``, and, subject to paragraph (3),
the principal campaign committee of an eligible
House of Representatives candidate;'';
(B) in subparagraph (B), by striking ``and'' after
the semicolon;
(C) in subparagraph (C), by striking the period and
inserting a semicolon; and
(D) by adding after subparagraph (C) the following
new subparagraphs:
``(D) the term `principal campaign committee' has the
meaning given such term in section 301 of the Federal Election
Campaign Act of 1971; and
``(E) the term `eligible House of Representatives
candidate' has the meaning given such term in section 501(a) of
the Federal Election Campaign Act of 1971.''; and
(2) by adding after paragraph (2) the following new
paragraph:
``(3) The rate made available under this subsection with respect to
an eligible House of Representatives candidate shall apply only to that
number of pieces of mail equal to 3 times the number of individuals in
the voting age population (as certified under section 315(e) of such
Act) of the congressional district.''.
(b) Effective Date.--The amendments made by this section shall
apply to the general elections occurring after December 31, 1996 (and
the election cycles relating thereto).
SEC. 104. CONTRIBUTION LIMIT FOR ELIGIBLE HOUSE OF REPRESENTATIVES
CANDIDATES.
Section 315(a)(1) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(a)(1)) is amended--
(1) by inserting ``except as provided in subparagraph
(B),'' before ``to'' in subparagraph (A);
(2) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(3) by inserting immediately after subparagraph (A) the
following new subparagraph:
``(B) to any eligible House of Representatives
candidate and the authorized political committees of
such candidate with respect to any election for the
office of Representative in, or Delegate or Resident
Commissioner to, the Congress, which, in the aggregate,
exceed $2,000, provided that such candidate is in a
general election where one or more candidates either:
``(i) fail to be certified as an eligible
candidate by the Commission and have received
contributions or expended personal funds, which
in the aggregate, are in excess of 50 percent,
or have expended personal funds in excess of 25
percent, of the election cycle limits contained
in section 502(b); or
``(ii) violate the limitations on
expenditures contained in this Act.''.
SEC. 105. REPORTING REQUIREMENTS.
(a) Any candidate for the House of Representatives who during the
election cycle expends more than the limitation under section 502(a)
during the election cycle from his personal funds, the funds of his
immediate family, and personal loans incurred by the candidate and the
candidate's immediate family shall report such expenditures to the
Commission within 48 hours after such expenditures have been made or
loans incurred. An additional report shall be filed within 48 hours of
the date such candidate makes expenditures of such personal funds
aggregating 25 percent of the election cycle limit under section
502(b).
(b) Any candidate for the House of Representatives who has failed
to be certified as an eligible candidate by the Commission and who
during the election cycle has received contributions or expended
personal funds which, in the aggregate, exceed 50 percent of the
election cycle limits contained in section 502(b), shall file a report
with the Commission within 48 hours after such contributions have been
received or such expenditures have been made. Additional reports shall
be filed within 48 hours after such candidate has received
contributions or expended personal funds which, in the aggregate,
exceed 70 percent and 120 percent of the election cycle limit.
Additional reports shall be filed within 48 hours after the candidate
spends an amount equal to 105 percent and 155 percent of the election
cycle limit contained in section 502(b).
(c) The Commission within 48 hours after any report has been filed
under subsections (a) and (b) shall notify each eligible House of
Representatives candidate in the election about each such report.
(d) If any act which requires the filing of any report under
subsection (a) or (b) occurs after the 20th day, but more than 24 hours
before an election, such report shall be filed by the candidate within
24 hours of the occurrence of such act. For any such report filed
pursuant to this subsection, the Commission shall notify the
appropriate eligible House of Representatives candidate within 24 hours
after the filing of such report.
TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE
Subtitle A--Elimination of Political Action Committees From Federal
Election Activities
SEC. 201. BAN ON ACTIVITIES OF POLITICAL ACTION COMMITTEES IN FEDERAL
ELECTIONS.
(a) In General.--Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 301 et seq.) is amended by adding at the end the
following new section:
``ban on federal election activities by political action committees
``Sec. 324. Notwithstanding any other provision of this Act, no
person other than an individual or a political committee may make
contributions, solicit or receive contributions, or make expenditures
for the purpose of influencing an election for Federal office.''.
(b) Definition of Political Committee.--(1) Section 301(4) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431(4)) is amended to
read as follows:
``(4) The term `political committee' means--
``(A) the principal campaign committee of a
candidate;
``(B) any national, State, or district committee of
a political party, including any subordinate committee
thereof;
``(C) any local committee of a political party
that--
``(i) receives contributions aggregating in
excess of $5,000 during a calendar year;
``(ii) makes payments exempted from the
definition of contribution or expenditure under
paragraph (8) or (9) aggregating in excess of
$5,000 during a calendar year; or
``(iii) makes contributions or expenditures
aggregating in excess of $1,000 during a
calendar year; and
``(D) any committee jointly established by a
principal campaign committee and any committee
described in subparagraph (B) or (C) for the purpose of
conducting joint fundraising activities.''.
(2) Section 316(b)(2) of the Federal Election Campaign Act of 1971
(2 U.S.C. 441b(b)(2)) is amended--
(A) by inserting ``or'' after ``subject;'';
(B) by striking ``and their families; and'' and inserting
``and their families.''; and
(C) by striking subparagraph (C).
(c) Prohibition of Leadership Committees.--Section 302(e) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)) is amended--
(1) by amending paragraph (3) to read as follows:
``(3) No political committee that supports or has supported more
than one candidate may be designated as an authorized committee, except
that--
``(A) a candidate for the office of President nominated by
a political party may designate the national committee of such
political party as the candidate's principal campaign
committee, but only if that national committee maintains
separate books of account with respect to its functions as a
principal campaign committee; and
``(B) a candidate may designate a political committee
established solely for the purpose of joint fundraising by such
candidates as an authorized committee.''; and
(2) by adding at the end the following new paragraph:
``(6)(A) A candidate for Federal office or any individual holding
Federal office may not directly or indirectly establish, finance,
maintain, or control any Federal or non-Federal political committee
other than a principal campaign committee of the candidate, authorized
committee, party committee, or other political committee designated in
accordance with paragraph (3). A candidate for more than one Federal
office may designate a separate principal campaign committee for each
Federal office. This paragraph shall not preclude a Federal
officeholder who is a candidate for State or local office from
establishing, financing, maintaining, or controlling a political
committee for election of the individual to such State or local office.
``(B) For one year after the effective date of this paragraph, any
political committee established before such date but which is
prohibited under subparagraph (A) may continue to make contributions.
At the end of that period such political committee shall disburse all
funds by one or more of the following means: making contributions to an
entity qualified under section 501(c)(3) of the Internal Revenue Code
of 1986 that is not established, maintained, financed, or controlled
directly or indirectly by any candidate for Federal office or any
individual holding Federal office; making a contribution to the
treasury of the United States; contributing to the national, State, or
local committees of a political party; or making contributions not to
exceed $1,000 to candidates for elective office.''.
(d) Rules Applicable When Ban Not in Effect.--For purposes of the
Federal Election Campaign Act of 1971, during any period beginning
after the effective date in which the limitation under section 324 of
that Act (as added by subsection (a)) is not in effect--
(1) the amendments made by subsections (a) and (b), shall
not be in effect;
(2) it shall be unlawful for a multicandidate political
committee to make a contribution to a candidate for election,
or nomination for election, to Federal office (or to an
authorized committee of such candidate) to the extent that the
making or accepting of the contribution will cause the amount
of contributions in aggregate received by the candidate and the
candidate's authorized committees from multicandidate political
committees to exceed an amount equal to 25 percent of the
election cycle spending limits set forth in section 502(b), as
may be modified by section 502(c), (e) and (f), regardless of
whether the candidate is an eligible House of Representatives
candidate; and
(3) notwithstanding any other provision of this Act, it
shall be unlawful for a multicandidate political committee to
make any contribution to a candidate and his authorized
political committees with respect to any election for Federal
office which, in the aggregate, exceed the amount that an
individual is allowed to contribute directly to such candidate
or to such candidate's authorized committees.
(e) Excess Contributions.--A candidate (or authorized committees of
such candidate) who receives a contribution from a multicandidate
political committee in excess of the amount allowed under subsection
(d)(1) shall return the amount of such excess contribution to the
contributor.
(f) Repeal of Multicandidate Contribution Limit.--Section
315(a)(2)(A) (2 U.S.C. 441a(a)(2)(A)) is hereby repealed: Provided,
That any of the provisions in subsections (a), (b), and (d) are in
effect.
SEC. 202. AGGREGATE LIMIT ON LARGE CONTRIBUTIONS.
(a) Title III of the Federal Election Campaign Act of 1971 (2
U.S.C. 431 et seq.) is amended by adding at the end the following new
section:
``Sec. 327. (a) For purposes of the Federal Election Campaign Act
of 1971, during any period beginning after the effective date of this
Act, it shall be unlawful for a candidate for election for the office
of Representative in, or Delegate or Resident Commissioner to, the
Congress (or the authorized committees of such candidate) to accept any
contribution from an individual in excess of $250 to the extent that
the acceptance of such contribution will cause the aggregate amount of
contributions from individuals in excess of $250 received by the
candidate and the candidate's authorized committees to exceed an amount
equal to 25 percent of the election cycle spending limits set forth in
section 502(b), as may be modified by section 502(c), (e), or (f),
regardless of whether the candidate is an eligible House of
Representatives candidate.
``(b) The restrictions of subsection (a) shall not apply to an
eligible House of Representatives candidate if such candidate is
entitled to the contribution limit provided in section 104.''.
(b) For purposes of the Federal Election Campaign Act of 1971,
during any period beginning after the effective date in which the
limitations of section 327 (as added by subsection (a)) are not in
effect, a new clause (vi) shall be inserted in section 501(b)(1) as
follows:
``(vi) will not accept any contributions
from an individual in excess of $250 to the
extent that the acceptance of such contribution
will cause the aggregate amount of
contributions from individuals in excess of
$250 received by the candidate and the
candidate's authorized committees to exceed an
amount equal to 25 percent of the election
cycle spending limits set forth in section
502(b), as may be modified by section 502(c),
(e), or (f): Provided, however, That this
clause shall not apply to an eligible House of
Representatives candidate if such candidate is
entitled to the contribution limit provided in
section 104.''.
SEC. 203. CONTRIBUTIONS BY LOBBYISTS.
Section 315(a) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(a)) is amended by adding at the end the following new
subsection:
``(9) Notwithstanding 2 U.S.C. 441a(a)(1)(A), any person
required to register under section 308 of the Federal
Regulation of Lobbying Act (2 U.S.C. 267) or the Foreign Agents
Registration Act of 1938 (22 U.S.C. 611 et seq.) or any person
whose activities are required to be reported pursuant to any
successor Federal law which requires reporting on the
activities of a person who is a lobbyist or foreign agent, or
any political committee controlled by such person, shall not
make contributions to, or solicit contributions for, any
candidate and his authorized political committees with respect
to any election for Federal office which, in the aggregate,
exceed $100.''.
Subtitle B--Provisions Relating to Soft Money of Political Parties
SEC. 211. SOFT MONEY OF POLITICAL PARTIES.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) is amended by adding at the end the following new section:
``soft money of political parties
``Sec. 325. (a) A national committee of a political party,
including the national congressional campaign committees of a political
party, and any officers or agents of such party committees, shall not
solicit or receive any contributions, donations, or transfers of funds,
or spend any funds, not subject to the limitations, prohibitions, and
reporting requirements of this Act. This subsection shall apply to any
entity that is established, financed, maintained, or controlled by a
national committee of a political party, including the national
congressional campaign committees of a political party, and any
officers or agents of such party committees.
``(b)(1) Any amount expended or disbursed by a State, district, or
local committee of a political party, during a calendar year in which a
Federal election is held, for any activity which might affect the
outcome of a Federal election, including but not limited to any voter
registration and get-out-the-vote activity, any generic campaign
activity, and any communication that identifies a Federal candidate
(regardless of whether a State or local candidate is also mentioned or
identified) shall be made from funds subject to the limitations,
prohibitions and reporting requirements of this Act.
``(2) Paragraph (1) shall not apply to expenditures or
disbursements made by a State, district or local committee of a
political party for--
``(A) a contribution to a candidate other than for Federal
office, provided that such contribution is not designated or
otherwise earmarked to pay for activities described in
paragraph (1);
``(B) the costs of a State or district/local political
convention;
``(C) the non-Federal share of a State, district or local
party committee's administrative and overhead expenses (but not
including the compensation in any month of any individual who
spends more than 20 percent of his or her time on activity
during such month which may affect the outcome of a Federal
election). For purposes of this provision, the non-Federal
share of a party committee's administrative and overhead
expenses shall be determined by applying the ratio of the non-
Federal disbursements to the total Federal expenditures and
non-Federal disbursements made by the committee during the
previous presidential election year to the committee's
administrative and overhead expenses in the election year in
question;
``(D) the costs of grassroots campaign materials, including
buttons, bumper stickers, and yard signs, which materials
solely name or depict a State or local candidate; or
``(E) the cost of any campaign activity conducted solely on
behalf of a clearly identified State or local candidate,
provided that such activity is not a get out the vote activity
or any other activity covered by paragraph (1).
``(3) Any amount spent by a national, State, district or local
committee or entity of a political party to raise funds that are used,
in whole or in part, to pay the costs of any activity covered by
paragraph (1) shall be made from funds subject to the limitations,
prohibitions, and reporting requirements of this Act. This paragraph
shall apply to any entity that is established, financed, maintained, or
controlled by a State, district or local committee of a political party
or any agent or officer of such party committee in the same manner as
it applies to that committee.
``(c) No national, State, district or local committee of a
political party shall solicit any funds for or make any donations to
any organization that is exempt from Federal taxation under section
501(c) of the Internal Revenue Code of 1986.
``(d)(1) No candidate for Federal office, individual holding
Federal office, or any agent of such candidate or officeholder, may
solicit or receive (A) any funds in connection with any Federal
election unless such funds are subject to the limitations, prohibitions
and reporting requirements of this Act; (B) any funds that are to be
expended in connection with any election for other than a Federal
election unless such funds are not in excess of the amounts permitted
with respect to contributions to Federal candidates and political
committees under section 315(a)(1) and (2), and are not from sources
prohibited from making contributions by this Act with respect to
election for Federal office. This paragraph shall not apply to the
solicitation or receipt of funds by an individual who is a candidate
for a non-Federal office if such activity is permitted under State law
for such individual's non-Federal campaign committee.
``(2)(A) No candidate for Federal office or individual holding
Federal office may directly or indirectly establish, maintain, finance
or control any organization described in section 501(c) of the Internal
Revenue Code of 1986 if such organization raises funds from the public.
``(B) No candidate for Federal office or individual holding Federal
office may raise funds for any organization described in section 501(c)
of the Internal Revenue Code of 1986 if the activities of the
organization include voter registration or get-out-the-vote campaigns.
``(C) For purposes of this paragraph, an individual shall be
treated as holding Federal office if such individual--
``(i) holds a Federal office; or
``(ii) holds a position described in level I of the
Executive Schedule under 5312 of title 5, United States
Code.''.
SEC. 212. REPORTING REQUIREMENTS.
(a) Reporting Requirements.--Section 304 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434) is amended by adding at the end the
following new subsection:
``(d) Political Committees.--(1) A political committee other than a
national committee of a political party, any congressional campaign
committee of a political party, and any subordinate committee of
either, to which section 325(b)(1) applies shall report all receipts
and disbursements.
``(2) Any political committee other than the committees of a
political party shall report any receipts or disbursements that are
used in connection with a Federal election.
``(3) If a political committee has receipts or disbursements to
which this subsection applies from any person aggregating in excess of
$200 for any calendar year, the political committee shall separately
itemize its reporting for such person in the same manner as required in
subsection (b)(3)(A), (5), or (6).
``(4) Reports required to be filed under this subsection shall be
filed for the same time periods required for political committees under
subsection (a).''.
(b) Reports by State Committees.--Section 304 of the Federal
Election Campaign Act of 1971 (2 U.S.C. 434), as amended by subsection
(a), is further amended by adding at the end the following new
subsection:
``(e) Filing of State Reports.--In lieu of any report required to
be filed by this Act, the Commission may allow a State committee of a
political party to file with the Commission a report required to be
filed under State law if the Commission determines such reports contain
substantially the same information.''.
(c) Other Reporting Requirements.--
(1) Authorized committees.--Section 304(b)(4) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is
amended--
(A) by striking ``and'' at the end of subparagraph
(H);
(B) by inserting ``and'' at the end of subparagraph
(I); and
(C) by adding at the end the following new
subparagraph:
``(J) in the case of an authorized committee,
disbursements for the primary election, the general
election, and any other election in which the candidate
participates;''.
(2) Names and addresses.--Section 304(b)(5)(A) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A))
is amended--
(A) by striking ``within the calendar year''; and
(B) by inserting ``, and the election to which the
operating expenditure relates'' after ``operating
expenditure''.
SEC. 213. BUILDING FUND EXCEPTION TO THE DEFINITION OF THE TERM
``CONTRIBUTION''.
Section 301(8)(B) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(8)(B)) is amended--
(1) by striking out clause (viii); and
(2) by redesignating clauses (ix) through (xiv) as clauses
(viii) through (xiii), respectively.
Subtitle C--Soft Money of Persons Other Than Political Parties
SEC. 221. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.
Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C.
434), as amended by section 212(a) and (c), is further amended by
adding at the end the following new subsection:
``(f) Election Activity of Persons Other Than Political Parties.--
(1)(A)(i) If any person to which section 325 does not apply makes (or
obligates to make) disbursements for activities described in section
325(b)(1) in excess of $2,000, such person shall file a statement--
``(I) within 48 hours after the disbursements (or
obligations) are made; or
``(II) in the case of disbursements (or obligations) that
are required to be made within 20 days of the election, within
24 hours after such disbursement (or obligations) are made.
``(ii) An additional statement shall be filed each time additional
disbursements aggregating $2,000 are made (or obligated to be made) by
a person described in clause (i).
``(B) This paragraph shall not apply to--
``(i) a candidate or a candidate's authorized committees;
or
``(ii) an independent expenditure (as defined in section
301(17)).
``(2) Any statement under this section shall be filed with the
Commission and shall contain such information as the Commission shall
prescribe, including whether the disbursement is in support of, or in
opposition to, 1 or more candidates or any political party.''.
Subtitle D--Contributions
SEC. 231. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS.
Section 315(a)(8) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(a)(8)) is amended to read as follows:
``(8) For the purposes of this subsection:
``(A) Contributions made by a person, either
directly or indirectly, to or on behalf of a particular
candidate, including contributions that are in any way
earmarked or otherwise directed through an intermediary
or conduit to a candidate, shall be treated as
contributions from the person to the candidate. If a
contribution is made to a candidate through an
intermediary or conduit, the intermediary or conduit
shall report the original source and the intended
recipient of the contribution to the Commission and the
intended recipient.
``(B) Contributions made directly or indirectly by
a person to or on behalf of a particular candidate
through an intermediary or conduit, including
contributions arranged to be made by an intermediary or
conduit, shall be treated as contributions from the
intermediary or conduit to the candidate if--
``(i) the contributions made through the
intermediary or conduit are in the form of a
check or other negotiable instrument made
payable to the intermediary or conduit rather
than the intended recipient; or
``(ii) the intermediary or conduit is--
``(I) a political committee, a
political party, or an officer,
employee, or agent of either;
``(II) a person whose activities
are required to be reported under
section 308 of the Federal Regulation
of Lobbying Act (2 U.S.C. 267), the
Foreign Agents Registration Act of 1938
(22 U.S.C. 611 et seq.), or a person
whose activities are required to be
reported pursuant to any successor
Federal law which requires reporting on
the activities of person who is a
lobbyist or foreign agent;
``(III) a person who is prohibited
from making contributions under section
316 or a partnership; or
``(IV) an officer, employee, or
agent of a person described in
subclause (II) or (III) acting on
behalf of such person.
``(C) The term `contributions arranged to be made'
includes--
``(i)(I) contributions delivered directly
or indirectly to a particular candidate or the
candidate's authorized committee or agent by
the person who facilitated the contribution;
and
``(II) contributions made directly or
indirectly to a particular candidate or the
candidate's authorized committee or agent that
are provided at an event sponsored by an
intermediary or conduit described in
subparagraph (B).
``(ii) The term `acting on behalf of such
person' includes the following activities by an
officer, employee, or agent of a person
described in subparagraph (B)(ii) (II) or
(III):
``(I) Soliciting the making of a
contribution to a particular candidate
in the name of such a person;
``(II) Soliciting the making of a
contribution to a particular candidate
using other than incidental resources
of such a person; and
``(III) Soliciting contributions
for a particular candidate by directing
a significant portion of the
solicitations to other officers,
employees, or agents of such a person.
``(D) This subsection shall not prohibit--
``(i) fundraising efforts for the benefit
of a candidate that are conducted by another
candidate or Federal officeholder; or
``(ii) the solicitation by an individual
using the individual's resources and acting in
the individual's own name of contributions from other persons in a
manner not described in subparagraphs (B) and (C).''.
Subtitle E--Additional Prohibitions on Contributions
SEC. 241. ALLOWABLE CONTRIBUTIONS FOR CANDIDATES.
(a) In State Requirement.--Title III of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431, et seq.) is amended by adding at
the end the following new section:
``Sec. 326. With regard to any candidate for election for the
office of Representative in, or Delegate or Resident Commissioner to,
the Congress, by the end of the election cycle not less than 60 percent
of the total dollar amount of all contributions from individuals to a
candidate or a candidate's authorized committees, not including any
expenditures, contributions or loans made by the candidate, shall come
from individuals legally residing in the candidate's State.''.
(b) Rules Applicable When In State Requirement Not in Effect.--For
purposes of the Federal Election Campaign Act of 1971, during any
period beginning after the effective date on which the requirement of
section 326 of the Act (as added by subsection (a)) is not in effect, a
new clause (v) shall be inserted in section 501(b)(1) as follows:
``(v) will comply with the requirement
that, by the end of the election cycle, not
less than 60 percent of the total dollar amount
of all contributions from individuals to a
candidate or a candidate's authorized
committees, including any expenditures,
contributions, or loans made by a candidate
shall come from individuals legally residing in
the candidate's State.''.
Subtitle F--Independent Expenditures
SEC. 251. PROVISIONS RELATING TO INDEPENDENT EXPENDITURES.
(a) Independent Expenditure Definition Amendment.--Section 301 of
the Federal Election Campaign Act of 1971 (2 U.S.C. 431) is amended by
striking out paragraphs (17) and (18) and inserting in lieu thereof the
following:
``(17)(A) The term `independent expenditure' means an expenditure
that--
``(i) contains express advocacy; and
``(ii) is made without the participation or cooperation of,
or without the consultation of, a candidate or a candidate's
representative.
``(B) The following shall not be considered an independent
expenditure:
``(i) An expenditure made by--
``(I) an authorized committee of a candidate for
Federal office, or
``(II) a political committee of a political party.
``(ii) An expenditure if there is any arrangement,
coordination, or direction with respect to the expenditure
between the candidate or the candidate's agent and the person
making the expenditure.
``(iii) An expenditure if, in the same election cycle, the
person making the expenditure is or has been--
``(I) authorized to raise or expend funds on behalf
of the candidate or the candidate's authorized
committees; or
``(II) serving as a member, employee, or agent of
the candidate's authorized committees in an executive
or policymaking position.
``(iv) An expenditure if the person making the expenditure
has advised or counseled the candidate or the candidate's
agents at any time on the candidate's plans, projects, or needs
relating to the candidate's pursuit of nomination for election,
or election, to Federal office, in the same election cycle,
including any advice relating to the candidate's decision to
seek Federal office.
``(v) An expenditure if the person making the expenditure
retains the professional services of any individual or other
person also providing services in the same election cycle to
the candidate in connection with the candidate's pursuit of
nomination for election, or election, to Federal office,
including any services relating to the candidate's decision to
seek Federal office. For purposes of this clause, the term
`professional services' shall include any services (other than
legal and accounting services solely for purposes of ensuring
compliance with any Federal law) in support of any candidate's
or candidates' pursuit of nomination for election, or election,
to Federal office.
For purposes of this subparagraph, the person making the expenditure
shall include any officer, director, employee, or agent of such person.
``(18)(A) The term `express advocacy' means, when a communication
is taken as a whole and with limited reference to external events, an
expression of support for or opposition to a specific candidate, to a
specific group of candidates, or to candidates of a particular
political party.
``(B) The term `expression of support for or opposition to'
includes a suggestion to take action with respect to an election, such
as to vote for or against, make contributions to, or participate in
campaign activity, or to refrain from taking action.''.
(b) Contribution Definition Amendment.--Section 301(8)(A) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)) is amended--
(1) in clause (i), by striking out ``or'' after the
semicolon at the end;
(2) in clause (ii), by striking out the period at the end
and inserting in lieu thereof ``; or''; and
(3) by adding at the end the following new clause:
``(iii) any payment or other transaction referred to in
paragraph (17)(A)(i) that is not an independent expenditure
under paragraph (17).''.
SEC. 252. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.
Section 304(c) of the Federal Election Campaign Act of 1971 (2
U.S.C. 434(c)) is amended--
(1) in paragraph (2), by striking the undesignated matter
after subparagraph (C);
(2) by redesignating paragraph (3) as paragraph (7); and
(3) by inserting after paragraph (2), as amended by
paragraph (1), the following new paragraphs:
``(3)(A) Any person (including a political committee)
making independent expenditures as defined in section 301(17)
and (18) with respect to a candidate in an election aggregating
$1,000 or more made after the 20th day, but more than 24 hours,
before the election shall file a report within 24 hours after
such independent expenditures are made. An additional report
shall be filed each time independent expenditures aggregating
$1,000 are made with respect to the same candidate after the
latest report filed under this subparagraph.
``(B) Any person (including a political committee) making
independent expenditures with respect to a candidate in an
election aggregating $10,000 or more made at any time up to and
including the 20th day before the election shall file a report
within 48 hours after such independent expenditures are made.
An additional report shall be filed each time independent
expenditures aggregating $10,000 are made with respect to the
same candidate after the latest report filed under this
paragraph.
``(C) A report under subparagraph (A) or (B) shall be filed
with the Commission and shall identify each candidate whom the
expenditure is actually intended to support or to oppose. Not
later than 2 business days after the Commission receives a
report, the Commission shall transmit a copy of the report to
each candidate seeking nomination or election to that office.
``(D) For purposes of this section, an independent
expenditure shall be considered to have been made upon the
making of any payment or the taking of any action to incur an
obligation for payment.
``(4) The Commission may, upon a request of a candidate or
on its own initiative, make its own determination that a
person, including a political committee, has made, or has
incurred obligations to make, independent expenditures with
respect to any candidate in any election which in the aggregate
exceed the applicable amounts under paragraph (3). The
Commission shall notify each candidate in such election of such
determination made within 2 business days after making it. Any
determination made at the request of a candidate shall be made
within 48 hours of the request.
``(5) In the event that independent expenditures totaling
in the aggregate $25,000 have been made in the same election in
favor of another candidate or against an eligible House of
Representatives candidate, the Commission shall, within 2
business days, notify the eligible candidate that such
candidate is entitled under section 502(g) to raise additional
contributions equaling the amount of such independent
expenditures. At such time as the aggregate amount the
independent expenditures referred to in the preceding sentence,
combined with the expenditures of all other candidates in such
election equals 100 percent of the election cycle limit set
forth in section 502(b), the Commission shall, within 2
business days, notify the eligible candidate that such
candidate is entitled under section 502(g) to make the
expenditures provided for in section 502(g).
``(6)(A) A person who reserves broadcast time the payment
for which would constitute an independent expenditure within
the meaning of section 301(17) of this Act (2 U.S.C. 431(17),
shall at the time of the reservation--
``(i) inform the broadcast licensee that payment
for the broadcast time will constitute an independent
expenditure;
``(ii) inform the broadcast licensee of the names
of all candidates for the office to which the proposed
broadcast relates and state whether the message to be
broadcast is intended to be made in support of or in
opposition to each such candidate; and
``(iii) provide the broadcast licensee a copy of
the report described in paragraph (3).
``(B) For purposes of this paragraph, the term `broadcast'
includes any cablecast.
``(C) A licensee who is informed as described in
subparagraph (A) shall--
``(i) notify each such candidate described in
subparagraph (A)(ii) of the proposed making of the
independent expenditure; and
``(ii) allow any such candidate (other than a
candidate for whose benefit the independent expenditure
is made) to purchase the same amount of broadcast time
immediately after the broadcast time paid for by the
independent expenditure, at the cost specified in
section 315(b) of title 47, as amended by section 102
of this Act.''.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR PERSONAL PURPOSES.
(a) Restrictions on Use of Campaign Funds.--Title III of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.), as
amended by section 211, is further amended by adding at the end the
following new section:
``restrictions on use of campaign funds for personal purposes
``Sec. 325. (a) An individual who receives contributions as a
candidate for Federal office--
``(1) shall use such contributions only for legitimate and
verifiable campaign expenses; and
``(2) shall not use such contributions for any inherently
personal purpose.
``(b) As used in this subsection--
``(1) the term `campaign expenses' means expenses
attributable solely to bona fide campaign purposes; and
``(2) the term `inherently personal purpose' means a
purpose that, by its nature, confers a personal benefit,
including a home mortgage, rent, or utility payment, clothing
purchase, noncampaign automobile expense, country club
membership, vacation, or trip of a noncampaign nature,
household food items, tuition payments, admission to a sporting
event, concert, theater, or other form of entertainment not
associated with a campaign, dues, fees, or contributions to a
health club or recreational facility, and any other inherently
personal living expense as determined under the regulations
promulgated pursuant to section 301(b) of the Bipartisan Clean
Congress Act of 1995.''.
(b) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Federal Election Commission shall promulgate
regulations consistent with this Act to implement subsection (a). Such
regulations shall apply to all contributions possessed by an individual
on the date of enactment of this Act.
SEC. 302. CAMPAIGN ADVERTISING AMENDMENTS.
Section 318 of the Federal Election Campaign Act of 1971 (2 U.S.C.
441d) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``Whenever'' and inserting
``Whenever a political committee makes a
disbursement for the purpose of financing any
communication through any broadcasting station,
newspaper, magazine, outdoor advertising
facility, mailing, phone bank or any other type
of general public political advertising, or
whenever'';
(ii) by striking ``an expenditure'' and
inserting ``a disbursement''; and
(iii) by striking ``direct''; and
(B) in paragraph (3), by inserting ``and permanent
street address'' after ``name''; and
(2) by adding at the end the following new subsections:
``(c) Any printed communication described in subsection (a) shall
be--
``(1) of sufficient type size to be clearly readable by the
recipient of the communication;
``(2) contained in a printed box set apart from the other
contents of the communication; and
``(3) consist of a reasonable degree of color contrast
between the background and the printed statement.
``(d)(1) Any broadcast or cablecast communication described in
subsection (a)(1) or subsection (a)(2) shall include, in addition to
the requirements of those subsections, an audio statement by the
candidate that identifies the candidate and states that the candidate
is responsible for the content of the advertisement.
``(2) If a broadcast or cablecast communication described in
paragraph (1) is broadcast or cablecast by means of television, the
communication shall include, in addition to the audio statement under
paragraph (1), a written statement which--
``(A) appears at the end of the communication in a clearly
readable manner with a reasonable degree of color contrast
between the background and the printed statement, for a period
of at least 4 seconds; and
``(B) is accompanied by a clearly identifiable photographic
or similar image of the candidate.
``(e) Any broadcast or cablecast communication described in
subsection (a)(3) shall include, in addition to the requirements of
those subsections, in a clearly spoken manner, the following statement:
`________________ is responsible for the content of this
advertisement.' (with the blank to be filled in with the name of the
political committee or other person paying for the communication and
the name of any connected organization of the payor). If broadcast or
cablecast by means of television, the statement shall also appear in a
clearly readable manner with a reasonable degree of color contrast
between the background and the printed statement, for a period of at
least 4 seconds.''.
SEC. 303. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES.
Section 302(g) of the Federal Election Campaign Act of 1971 (2
U.S.C. 432(g)) is amended by adding at the end the following new
paragraph:
``(6)(A) The Commission, in consultation with the Secretary
of the Senate and the Clerk of the House of Representatives,
may prescribe regulations under which persons required to file
designations, statements, and reports under this Act--
``(i) are required to maintain and file them for
any calendar year in electronic form accessible by
computers if the person has, or has reason to expect to
have, aggregate contributions or expenditures in excess
of a threshold amount determined by the Commission; and
``(ii) may maintain and file them in that manner if
not required to do so under regulations prescribed
under clause (i).
``(B) The Commission, in consultation with the Secretary of
the Senate and the Clerk of the House of Representatives, shall
prescribe regulations which allow persons to file designations,
statements, and reports required by this Act through the use of
facsimile machines.
``(C) In prescribing regulations under this paragraph, the
Commission shall provide methods (other than requiring a
signature on the document being filed) for verifying
designations, statements, and reports covered by the
regulations. Any document verified under any of the methods
shall be treated for all purposes (including penalties for
perjury) in the same manner as a document verified by
signature.
``(D) The Secretary of the Senate and the Clerk of the
House of Representatives shall ensure that any computer or
other system that they may develop and maintain to receive
designations, statements, and reports in the forms required or
permitted under this paragraph is compatible with any such
system that the Commission may develop and maintain.''.
SEC. 304. AUDITS.
(a) Random Audits.--Section 311(b) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 438(b)) is amended--
(1) by inserting ``(1)'' before ``The Commission''; and
(2) by adding at the end the following new paragraph:
``(2) Notwithstanding paragraph (1), the Commission may
conduct random audits and investigations to ensure voluntary
compliance with this Act. The subjects of such audits and
investigations shall be selected on the basis of criteria
established by vote of at least 4 members of the Commission to
ensure impartiality in the selection process. This paragraph
does not apply to an authorized committee of a candidate for
President or Vice President subject to audit under chapter 95
or 96 of the Internal Revenue Code of 1986.''.
(b) Extension of Period During Which Campaign Audits May Be
Begun.--Section 311(b) of the Federal Election Campaign Act of 1971 (2
U.S.C. 438(b)) is amended by striking out ``6 months'' and inserting in
lieu thereof ``12 months''.
SEC. 305. CHANGE IN CERTAIN REPORTING FROM A CALENDAR YEAR BASIS TO AN
ELECTION CYCLE BASIS.
Paragraphs (2), (3), (4), (6), and (7) of section 304(b) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(2)-(7)) are
amended by inserting ``(election cycle, in the case of an authorized
committee of a candidate for Federal office)'' after ``calendar year''
each place it appears.
SEC. 306. DISCLOSURE OF PERSONAL AND CONSULTING SERVICES.
(a) Reporting by Political Committees.--Section 304(b)(5)(A) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) is
amended by adding before the semicolon at the end the following: ``,
except that if a person to whom an expenditure is made by a candidate
or the candidate's authorized committees is merely providing personal
or consulting services and is in turn making expenditures to other
persons (not including its owners or employees) who provide goods or
services to the candidate or the candidate's authorized committees, the
name and address of such other person, together with the date, amount,
and purpose of such expenditure shall also be disclosed''.
(b) Recordkeeping and Reporting by Persons to Whom Expenditures are
Passed Through.--Section 302 of the Federal Election Campaign Act of
1971 (2 U.S.C. 432) is amended by adding at the end the following new
subsection:
``(j) The person described in section 304(b)(5)(A) who is providing
personal or consulting services and who is in turn making expenditures
to other persons (not including employees) for goods or services
provided to a candidate shall maintain records of and shall provide to
a political committee the information necessary to enable the political
committee to report the information described in section
304(b)(5)(A).''.
SEC. 307. USE OF CANDIDATES' NAMES.
Section 302(e)(4) of the Federal Election Campaign Act of 1971 (2
U.S.C. 432(e)(4)) is amended to read as follows:
``(4)(A) The name of each authorized committee shall
include the name of the candidate who authorized the committee
under paragraph (1).
``(B) a political committee that is not an authorized
committee shall not--
``(i) include the name of any candidate in its
name, or
``(ii) except in the case of a national, State, or
local party committee, use the name of any candidate in
any activity on behalf of such committee in such a
context as to suggest that the committee is an
authorized committee of the candidate or that the use
of the candidate's name has been authorized by the
candidate.''.
SEC. 308. REPORTING REQUIREMENTS.
(a) Option To File Monthly Reports.--Section 304(a)(2) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(a)(2)) is amended--
(1) in subparagraph (A) by striking ``and'' at the end;
(2) in subparagraph (B) by striking the period at the end
and inserting ``; and''; and
(3) by inserting the following new subparagraph at the end:
``(C) in lieu of the reports required by
subparagraphs (A) and (B), the treasurer may file
monthly reports in all calendar years, which shall be
filed no later than the 20th day after the last day of
the month and shall be complete as of the last day of
the month, except that, in lieu of filing the reports
otherwise due in November and December of any year in
which a regularly scheduled general election is held, a
pre-primary election report and a pre-general election
report shall be filed in accordance with subparagraph
(A)(i), a post-general election report shall be filed
in accordance with subparagraph (A)(ii), and a year end
report shall be filed no later than January 31 of the
following calendar year.''.
(b) Political Committees.--Section 304(a)(4) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 434(a)(4)) is amended in
subparagraph (A)(i) by inserting ``, and except that if at any time
during the election year a committee receives contributions in excess
of $100,000 or makes disbursements in excess of $100,000, monthly
reports on the 20th day of each month after the month in which that
amount of contributions is first received or that amount of
disbursements is first anticipated to be made during that year'' before
the semicolon.
(c) Incomplete or False Contributor Information.--Section 302(i) of
the Federal Election Campaign Act of 1971 (2 U.S.C. 432(i)) is
amended--
(1) by inserting ``(1)'' after ``(i)'';
(2) by striking ``submit'' and inserting ``report''; and
(3) by adding at the end the following new paragraph:
``(2) A treasurer shall be considered to have used best
efforts under this section only if--
``(A) all written solicitations include a clear and
conspicuous request for the contributor's
identification and inform the contributor of the
committee's obligation to report the identification in
a statement prescribed by the Commission;
``(B) the treasurer makes at least 1 additional
request for the contributor's identification for each
contribution received that aggregates in excess of $200
per calendar year and which does not contain all of the
information required by this Act; and
``(C) the treasurer reports all information in the
committee's possession regarding contributor
identifications.''.
(d) Waiver.--Section 304 of the Federal Election Campaign Act of
1971 (2 U.S.C. 434), is amended by adding at the end the following
subsection:
``(g) Waiver.--The Commission may relieve any category of political
committees of the obligation to file 1 or more reports required by this
section, or may change the due dates of such reports, if it determines
that such action is consistent with the purposes of this Act. The
Commission may waive requirements to file reports in accordance with
this subsection through a rule of general applicability or, in a
specific case, may waive or extend the due date of a report by
notifying all political committees affected.''.
SEC. 309. SIMULTANEOUS REGISTRATION OF CANDIDATE AND CANDIDATE'S
PRINCIPAL CAMPAIGN COMMITTEE.
Section 303(a) of the Federal Election Campaign Act of 1971 (2
U.S.C. 433(a)) is amended in the first sentence by striking ``no later
than 10 days after designation'' and inserting ``on the date of its
designation''.
SEC. 310. INDEPENDENT LITIGATION AUTHORITY.
Section 306(f) of the Federal Election Campaign Act of 1971 (2
U.S.C. 437c(f)) is amended by striking paragraph (4) and inserting the
following new paragraph:
``(4)(A) Notwithstanding the provisions of paragraph (2),
or of any other provision of law, the Commission is authorized
to appear on its own behalf in any action related to the
exercise of its statutory duties or powers in any court as
either a party or as amicus curiae, either--
``(i) by attorneys employed in its office, or
``(ii) by counsel whom it may appoint, on a
temporary basis as may be necessary for such purpose,
without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service, and whose compensation it may fix without
regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title. The compensation of
counsel so appointed on a temporary basis shall be paid
out of any funds otherwise available to pay the
compensation of employees of the Commission.
``(B) The authority granted under subparagraph (A) includes
the power to appeal from, and petition the Supreme Court for
certiorari to review, judgments or decrees entered with respect
to actions in which the Commission appears pursuant to the
authority provided in this section.''.
SEC. 311. INSOLVENT POLITICAL COMMITTEES.
Section 303(d) of the Federal Election Campaign Act of 1971 (2
U.S.C. 433(d)) is amended by adding at the end the following paragraph:
``(3) Proceedings by the Commission under paragraph (2)
constitute the sole means, to the exclusion of proceeding under
title 11, United States Code, by which a political committee
that is determined by the Commission to be insolvent may
compromise its debts, liquidate its assets, and terminate its
existence.''.
SEC. 312. REGULATIONS RELATING TO USE OF NON-FEDERAL MONEY.
Section 306 of the Federal Election Campaign Act of 1971 (2 U.S.C.
437c) is amended by adding at the end the following new subsection:
``(g) The Commission shall promulgate regulations to prohibit
devices or arrangements which have the purpose or effect of undermining
or evading the provisions of this Act restricting the use of non-
Federal money to affect Federal elections.''.
SEC. 313. TERM LIMITS FOR FEDERAL ELECTION COMMISSION.
Section 306 of the Federal Election Campaign Act of 1971 (2 U.S.C.
437c(a)(2)(A)) is amended by striking ``terms'' and inserting in lieu
thereof ``no more than one term''.
SEC. 314. AUTHORITY TO SEEK INJUNCTION.
Section 309(a) of the Federal Election Campaign Act of 1971 (2
U.S.C. 437g(a)) is amended--
(1) by adding at the end the following new paragraph:
``(13)(A) If, at any time in a proceeding described in
paragraph (1), (2), (3), or (4), the Commission believes that--
``(i) there is a substantial likelihood that a
violation of this Act is occurring or is about to
occur;
``(ii) the failure to act expeditiously will result
in irreparable harm to a party affected by the
potential violation;
``(iii) expeditious action will not cause undue
harm or prejudice to the interests of others; and
``(iv) the public interest would be best served by
the issuance of an injunction, the Commission may
initiate a civil action for a temporary restraining
order or a temporary injunction pending the outcome of
the proceedings described in paragraphs (1), (2), (3),
and (4).
``(B) An action under subparagraph (A) shall be brought in
the United States district court for the district in which the
defendant resides, transacts business, or may be found, or in
which the violation is occurring, has occurred, or is about to
occur.'';
(2) in paragraph (7), by striking ``(5) or (6)'' and
inserting ``(5), (6), or (13)''; and
(3) in paragraph (11), by striking ``(6)'' and inserting
``(6) or (13)''.
SEC. 315. EXPEDITED PROCEDURES.
Section 309(a) of Federal Election Campaign Act of 1971 (2 U.S.C.
437g(a)) is amended by adding at the end the following new paragraph:
``(14)(A) If the complaint in a proceeding was filed within
60 days immediately preceding a general election, the
Commission may take action described in this subparagraph.
``(B) If the Commission determines, on the basis of facts
alleged in the complaint and other facts available to it, that
there is clear and convincing evidence that a violation of this
Act has occurred, is occurring, or is about to occur and it
appears that the requirements for relief stated in paragraph
(13)(A) (ii), (iii), and (iv) are met, the Commission may--
``(i) order expedited proceedings, shortening the
time periods for proceedings under paragraphs (1), (2),
(3), and (4) as necessary to allow the matter to be
resolved in sufficient time before the election to
avoid harm or prejudice to the interests of the
parties; or
``(ii) if the Commission determines that there is
insufficient time to conduct proceedings before the
election, immediately seek relief under paragraph
(13)(A).
``(C) If the Commission determines, on the basis of facts
alleged in the complaint and other facts available to it, that
the complaint is clearly without merit, the Commission may--
``(i) order expedited proceedings, shortening the
time periods for proceedings under paragraphs (1), (2),
(3), and (4) as necessary to allow the matter to be
resolved in sufficient time before the election to
avoid harm or prejudice to the interests of the
parties; or
``(ii) if the Commission determines that there is
insufficient time to conduct proceedings before the
election, summarily dismiss the complaint.''.
SEC. 316. OFFICIAL MASS MAILING ALLOWANCE.
Section 311(f) of the Legislative Branch Appropriations Act, 1991
(2 U.S.C. 59e(f)) is amended to read as follows:
``(f)(1) There is established in the House of Representatives an
Official Mass Mailing Allowance for Members of the House of
Representatives.
``(2) The Official Mass Mailing Allowance of a Member of the House
of Representatives--
``(A) shall be available only for postage for any mass
mailing sent by such Member as franked mail;
``(B) shall be the sole source of funding for any such
postage; and
``(C) shall be available, in a session of Congress (subject
to paragraph (5)(A)(ii)), in an amount not to exceed the total
amount allocated to the Official Mail Allowance of such Member
in such session.
``(3) No amount may be transferred to or from the Official Mass
Mailing Allowance of a Member of the House of Representatives
(including as described in the parenthetical matter in subsection
(a)(2)(A)), except as provided in subsection (e)(3)(B).
``(4) For purposes of subsection (b), the Official Mass Mailing
Allowance of (and any mass mailing sent by) a Member of the House of
Representatives shall be treated separately from the Official Mail
Allowance of (and any other official mail sent by) such Member.
``(5)(A) Otherwise applicable provisions of law relating to mass
mailings sent by a Member of (or Member-elect to) the House of
Representatives shall continue to govern such mass mailings--
``(i) except that--
``(I) for purposes of carrying out those other
provisions of law, the term `mass mailing' shall have
the meaning given it under paragraph (8); and
``(II) a mass mailing may not be sent if it would
be postmarked during any session that begins in an
even-numbered calendar year, subject to subparagraph
(B); and
``(ii) except as otherwise provided in this subsection.
``(B) Nothing in subclause (II) of subparagraph (A)(i) shall be
considered to preclude the mailing of any mail matter--
``(i) sent after the Tuesday next after the 1st Monday in
November of such year, and any mass mailing described in
section 3210(a)(6)(B) of title 39, United States Code; or
``(ii) which relates to an emergency or disaster declared
by the President, if--
``(I) the mailing is sent within 60 days after the
emergency or disaster is declared;
``(II) the recipients of the mailing are located in
a congressional district any portion of which is within
(or adjacent to) an area included in the President's
declaration;
``(III) the mailing complies with clauses (iii) and
(iv) of paragraph (8)(C);
``(IV) the mailing complies with clauses (i) and
(ii)(II) of section 3210(a)(6)(A) of title 39, United
States Code; and
``(V) the mailing relates solely to the emergency
or disaster.
``(6) A Member of the House of Representatives shall--
``(A) before making any mass mailing, submit a sample of
the mail matter involved to the House Commission on
Congressional Mailing Standards for an advisory opinion as to
whether such proposed mailing is in compliance with applicable
provisions of law, rule, or regulation;
``(B) before making any mailing of substantially identical
mail which totals 250 pieces or less (but more than 50) in the
same session, and which in every other respect meets the
definition of a mass mailing (determined disregarding the
exclusion under subclause (II) of paragraph (8)(A)(i)), submit
a sample of the mail matter involved to such Commission; and
``(C) before making any mailing of substantially identical
mail, in the nature of a town meeting notice, which totals more
than 50 pieces in the same session, and which in every other
respect (aside from such nature and number) meets the
definition of a mass mailing, submit a sample of the mail
matter involved to such Commission.
``(7)(A) The regulations prescribed in connection with subsection
(a)(3) shall be amended to require, in addition to the information
otherwise required to be included in the quarterly report referred to
therein, a statement of--
``(i) costs charged against the Official Mass Mailing
Allowance of each Member; and
``(ii) the number of pieces of mail in any mass mailing
sent by a Member.
``(B)(i) The House Commission on Congressional Mailing Standards
shall by regulation establish procedures under which there shall be
made available to the public for review and copying any matter
submitted to the Commission under paragraph (6). Any copying under the
preceding sentence shall be at the expense of the person who requests
the copying.
``(ii) Under the regulations, mail matter shall be made available
within 2 weeks after the date on which it is requested in accordance
with applicable procedures.
``(8) For the purpose of this subsection--
``(A) the term `mass mailing' means, with respect to a
session of Congress, any mailing of newsletters or other pieces
of mail with substantially identical content (whether such mail
is deposited singly or in bulk, or at the same time or
different times), totaling more than 250 pieces in that
session, except that such term does not include--
``(i)(I) any mailing of matter in direct response
to a communication from a person to whom the matter is
mailed; or
``(II) a single follow-up to any such direct
response, if it is made before the end of the Congress
in which the direct response was made, it occurs within
6 weeks after any significant congressional action (as
defined by the House Commission on Congressional
Mailing Standards) on the subject matter involved, and
it complies with any requirements which would be
applicable to it under clause (i) or (ii)(II) of
section 3210(a)(6)(A) of title 39, United States Code,
if it were a mass mailing;
``(ii) any mailing from a Member of Congress to
other Members of Congress, or to Federal, State, or
local government officials;
``(iii) any mailing of a news release to the
communications media; or
``(iv) any mailing described in clause (iv) or (v)
of section 6(b)(1)(B) of the Legislative Branch
Appropriations Act, 1995 (39 U.S.C. 3210 note), subject to the same
restriction as specified in such clause (iv) with respect to a Member
of the Senate;
``(B) the term `franked mail' has the meaning given such
term by section 3201(4) of title 39, United States Code; and
``(C) the term `town meeting notice' means (including for
purposes of subparagraph (A)(iv)) any mailing which--
``(i) relates solely to a notice of the time and
place at which a Member of the House of Representatives
or 1 or more members of the Member's staff will be
available to meet constituents regarding legislative
issues or problems with Federal programs;
``(ii) appears on a mailing 5\1/2\" x 8" or
smaller;
``(iii) includes not more than 3 references to the
Member (excluding any reference appearing as the frank,
consisting of the signature and name at the end of the
mailing, or otherwise specified in regulations of the
House Commission on Congressional Mailing Standards);
and
``(iv) does not include any picture, sketch, or
other likeness of the Member.''.
SEC. 317. PROVISIONS RELATING TO MEMBERS' OFFICIAL MAIL ALLOWANCE.
(a) Reduction in Maximum Allocation.--Section 311(e)(2)(B)(i) of
the Legislative Branch Appropriations Act, 1991 (2 U.S.C.
59e(e)(2)(B)(i)) is amended by striking ``3'' and inserting ``0.5''.
(b) Limitation on Transfers.--Paragraph (3) of section 311(e) of
such Act is amended to read as follows:
``(3)(A) Except as provided in subparagraph (B), no amount may be
transferred to or from the Official Mail Allowance of a Member of the
House of Representatives.
``(B) A Member of the House of Representatives may transfer amounts
from the Official Mass Mailing Allowance of the Member to the Official
Mail Allowance of the Member.''.
SEC. 318. INTENT OF CONGRESS.
It is the intent of Congress that any funds realized by section 316
of the Bipartisan Clean Congress Act of 1995 shall be designated to pay
for the benefits provided in section 103.
SEC. 319. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any other person or
circumstance is held to be unconstitutional, the remainder of this Act,
the amendments made by this Act, and the application of the provisions
of such to any other person or circumstance shall not be affected
thereby.
SEC. 320. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.
(a) Direct Appeal to Supreme Court.--An appeal may be taken
directly to the Supreme Court of the United States from any
interlocutory order or final judgment, decree, or order issued by any
court ruling on the constitutionality of any provision of this Act or
amendment made by this Act.
(b) Acceptance and Expedition.--The Supreme Court shall, if it has
not previously ruled on the question addressed in the ruling below,
accept jurisdiction over, advance on the docket, and expedite the
appeal to the greatest extent possible.
SEC. 321. EFFECTIVE DATE.
Except as otherwise provided in this Act, the amendments made by,
and the provisions of, this Act shall take effect on January 1, 1997.
SEC. 322. REGULATIONS.
The Federal Election Commission shall prescribe any regulations
required to carry out this Act not later than 9 months after the
effective date of this Act.
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