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106th Congress                                            Rept. 106-297
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
             BIPARTISAN CAMPAIGN FINANCE REFORM ACT OF 1999

                                _______
                                

                 August 5, 1999.--Ordered to be printed

                                _______


 Mr. Thomas, from the Committee on House Administration, submitted the 
                               following

                             ADVERSE REPORT

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 417]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on House Administration, to whom was referred 
the bill (H.R. 417) to amend the Federal Election Campaign Act 
of 1971 to reform the financing of campaigns for elections for 
Federal office, and for other purposes, having considered the 
same, report unfavorably thereon without recommendation.

                     Discussion of the Legislation


                              introduction

    The Committee on House Administration has unfavorably 
reported H.R. 417, the ``Bipartisan Campaign Finance Reform 
Act''. Unfortunately the legislation should be characterized 
neither as bipartisan nor as reform. True reform would be 
reform that has a realistic chance of being enacted and taking 
effect. This legislation has serious constitutional flaws which 
would in all probability prevent all or part of it from going 
into effect, even in the unlikely event it is enacted. The 
legislation imposes unconstitutionally vague and overbroad 
restrictions on the right of Americans to participate in the 
political process. It would vastly expand the power of federal 
bureaucrats to regulate the speech of ordinary Americans, 
particularly when they wish to be critical of their elected 
representatives in government.
    The legislation is partisan in its impact on the political 
process, imposing little restriction on labor unions, a group 
that overwhelmingly favors one political party, while sharply 
regulating political party organizations. Because of its 
partisan bias, the bill has little chance of achieving the 
broad support necessary for enactment.
    The authors of the legislation implicitly recognize its 
constitutional flaws by including a severability clause that 
gives the courts the opportunity to pick and choose which 
portions of the legislation they will permit to take effect. 
Allowing the Courts, rather than Congress to write legislation 
is a serious abdication of Congress's Constitutional duty to 
ensure free and fair elections for federal office.

                    shays-meehan is unconstitutional

An unconstitutional expansion of ``express advocacy'' communications

    Shays/Meehan unconstitutionally limits free speech with a 
vague definition of express advocacy. It defines express 
advocacy as language that a reasonable person would consider 
advocacy, leaving a subjective judgement to be made by 
regulators. Even the allegedly ``exempt'' voter guides must not 
contain this vaguely defined express advocacy. Such vagueness 
unconstitutionally chills free speech, as numerous court 
rulings, starting with Buckley v. Valeo [424 U.S. 1 (1976)] 
have made abundantly clear. As Laura Murphy, Legislative 
Director for the American Civil Liberties Union testified 
before the Committee, under Shays-Meehan, few non-profit groups 
will risk their tax status or incur costly legal expenses to 
engage in speech that might be interpreted by FEC regulators to 
have some effect on the outcome of an election.
    The Supreme Court in the Buckley decision strongly 
emphasized that a vague, unclear limit on free speech could not 
withstand constitutional scrutiny. As the court stated:

          [W]hether words intended and designed to fall short 
        of invitation would miss the mark is a question, both 
        of intent and of effect. No speaker, in 
suchcircumstances, safely could assume that anything he might say upon 
the general subject would not be understood by some as an invitation. 
In short, the supposedly clear-cut distinction between discussion, 
laudation, general advocacy, and solicitation puts the speaker in these 
circumstances wholly at the mercy of the varied understanding of his 
hearers and consequently of whatever inference may be drawn as to his 
intent and meaning.
          Such a distinction offers no security for fee 
        discussion. In these conditions it blankets with 
        uncertainty whatever may be said. It compels the 
        speaker to hedge and trim. 323 U.S. 516, 535 (1945).

    Section 206 of H.R. 417 would generally prohibit both non-
profit and for-profit corporations and labor unions from making 
expenditures for public communications, at any time during the 
year, that are deemed ``for the purpose of influencing a 
federal election,'' if the sponsoring organization has any of 
ten broad categories of links to a member of Congress or other 
candidate, including the mere sharing of vendors. Under Section 
206, this prohibition would apply regardless of whether the 
public communication constitutes express advocacy.
    In Buckley v. Valeo, the Supreme Court distinguished 
between communications that expressly advocate the election or 
defeat of a clearly identified candidate and those 
communications that advocate a position on an issue. The Court 
found that the latter type of communication, ``issue 
advocacy,'' is constitutionally protected First Amendment 
speech and that only speech containing express words of 
advocacy of election or defeat, ``express advocacy,'' could be 
subject to regulation [424 U.S. at 40-44]. According to the 
Court, express advocacy communications include certain words of 
advocacy of election or defeat, such as, ``vote for,'' 
``elect,'' ``support,'' ``cast your ballot for,'' ``Smith for 
Congress,'' ``vote against,'' ``defeat,'' or ``reject.'' [424 
U.S. at 44 n. 52]. Moreover, in the 1986 decision, Federal 
Election Commission v. Massachusetts Citizens for Life, Inc. 
(MCFL) [479 U.S. 238, 249-250 (1986)], the Supreme Court 
further articulated the First Amendment protections of issue 
advocacy communications and held that only express advocacy 
communications could be constitutionally regulated. In light of 
Supreme Court precedent, a prohibition on public communications 
regardless of whether they constitute express advocacy is an 
unconstitutionally broad regulation that encompasses First 
Amendment protected issue advocacy.
    Section 201 would redefine ``express advocacy'' in such a 
manner that even if a non-profit or for-profit corporation or 
labor union avoids both direct and indirect coordination with 
candidates, the group would still be prohibited from making 
expenditures for broadcast communications that even mention the 
name or contain the likeness of a candidate within 60 days 
before the general election, unless certain currently 
permissible restrictive criteria are met. For example, such 
communication expenditures could only be made if not funded by 
several currently permissible funding sources.
    By imposing such restrictions, in light of Supreme Court 
precedent in Buckley v. Valeo and Federal Election Commission 
v. Massachusetts Citizens for Life, H.R. 417 would regulate 
issue advocacy speech, which the Supreme Court has expressly 
held to be constitutionally protected under the First 
Amendment.
    Supporters of Shays-Meehan repeatedly attempt to 
characterize the act of citizens engaging in Constitutionally 
permissible speech as ``sham'', ``phony'', un-American, even 
criminal. The Supreme Court did not create a loophole in the 
Buckley decision; they specifically endorsed the right of 
citizens to participate in an open democracy. James Bopp, 
General Counsel for the James Madison Center for Free Speech 
testified that the Buckley decision authorizes issue advocacy. 
He stated that the Supreme Court's position in Buckley was that 
`` * * * as long as persons and groups eschew expenditures that 
in express terms advocate the election or defeat of a clearly 
identified candidate, they are free to spend as much as they 
want to promote the candidate and his views. They are free. 
They are authorized. It is constitutionally protected. It is a 
good thing to talk about the issues.''

An unconstitutional presumption of coordination between candidate and 
        speakers

    Section 206 would generally prohibit both non-profit and 
for-profit corporations and labor unions from making 
expenditures for public communications, at any time during the 
year, that are deemed ``for the purpose of influencing a 
federal election,'' if the sponsoring organization has any of 
ten broad categories of links to a member of Congress or other 
candidate.
    According to the Supreme Court in the 1996 decision, 
Colorado Republican Federal Campaign Committee v. Federal 
Election Commission [518 U.S. 604 (1996)], coordination may not 
be presumed on the basis of some other type of relationship 
between the candidate and the speaker. In Colorado, the Court 
expressly rejected the Federal Election Commission's argument 
that an expenditure by a political party may be presumed to be 
coordinated with the federal candidate nominated by that party. 
According to the Court, the constitutional test is whether the 
specific expenditure was actually the subject of the 
communication between those conducting the expenditure and the 
candidate. Ergo, if the Supreme Court has held that 
coordination cannot be constitutionally presumed between a 
political party and a candidate, then clearly coordination 
cannot be constitutionally presumed between a corporation or 
labor organization engaging in a public communication and a 
candidate.
    Further, the coordination definitions contained in Shays 
are unconstitutionally vague and over broad. Roger Pilon of the 
CATO institute testified that the definitions were 
``inscrutable'' and noted their ``sheer complexity''. The 
absence of clear standards for what constitutes coordination 
results in a chilling effect on the core political speech of 
advocacy groups, citizens and candidates for fear that FEC 
regulators will be allowed to arbitrarily decide that the ads 
constitute coordination with a candidate.

An unconstitutional prohibition on first amendment rights of minors

    Section 507 would impose a prohibition on minors, age 17 or 
younger, from making any contributions to candidates or to 
political parties. As the Supreme Court held inBuckley v. 
Valeo, limitations on contributions can pass constitutional muster if 
they are reasonable and only marginally infringe on First Amendment 
rights in order to stem actual or apparent corruption resulting from 
quid pro quo relationships between contributors and candidates [424 
U.S. at 20-38]. Moreover, the Supreme Court has held that minors do 
enjoy First Amendment rights to free speech, albeit less than those 
afforded to those 18 and older [Healy v. James, 400 U.S. 169 (1972)]. 
Indeed, in Tinker v. Des Moines Independent Community School District, 
the Supreme Court ruled that teachers as well as students do not 
relinquish their First Amendment rights to free expression upon 
entering the school [393 U.S. 503, 506 (1969)].
    As a result of Supreme Court precedent, therefore, a 
complete prohibition on contributions to candidates and 
political parties by minors is arguably unconstitutional.

An unconstitutional federalization of state and local elections

    Shays-Meehan unconstitutionally federalizes state and local 
elections, not only for parties, but for state and local 
candidates as well. Every state and local party would be 
subject to the so-called ban on soft money. State and local 
candidates may not accept contributions designated or 
contributed, according to the bill, for the purpose of funding 
federal election activity. This is vague yet sweeping language. 
The bill further unconstitutionally limits parties by banning 
soft money used by parties on pure issue ads that do not 
mention candidates.

                       shays-meehan is unbalanced

    Shays-Meehan is unconstitutional unbalanced reform that 
limits parties and independent groups but not unions. It bans 
party soft money for election year registration and get-out-the 
vote activities, while allowing union money to be spent on the 
same activities. While it falsely claims to ban all soft money 
it leaves open several loopholes: for unions, for party office 
buildings, for state and local parties, for some party overhead 
and staff that spend up to 20% of their time on federal 
activity, for party voter registration in non-election years, 
and for federal candidates to raise soft money at fundraising 
events around the country.
    Roger Pilon of the Cato Institute and James Miller of 
Citizens for a Sound Economy both testified before the 
Committee that Shays-Meehan will result in an increase in the 
advantage that incumbents have over challengers. The bill will 
make it difficult for challengers to raise money and will make 
elections less competitive, the consequence of which is a less 
healthy democracy.
    Additionally, the restrictions on candidates' and issue 
groups' ability to speak under the year round restrictions on 
issue advocacy and 120 days-an-election-year black out periods 
do not apply to the media. the institutional media will 
continue to be able to mention candidates' names and attempt to 
influence elections at any time they choose. The result will be 
that the media will have a greater ability to influence the 
outcomes of elections than candidates or their constituents. As 
Laura Murphy, Legislative Director for the American Civil 
Liberties Union testified, `` * * * why should these kinds of 
restrictions apply to issue advocacy groups when we would never 
dare apply them to the media? Isn't speech, speech?''

       shays-meehan will lead to serious, unforeseen Consequences

    The bill will lead to greatly expanded bureaucracy at the 
Federal Election Commission (FEC). New ambiguous definitions of 
express advocacy and coordination will lead to larger FEC 
caseload and numerous Court challenges.
    Even more troubling is the bill's severability clause. The 
Federal Election Campaign Act (FECA), passed by Congress in 
1974 with a severability clause, was subsequently altered by 
the courts, which changed the language and interpretation of 
the FECA. The most important decision was (Buckley v. Valeo 
(1976). The Court in Buckley held that expenditure limitations, 
limitations on independent expenditures by individuals and 
groups, and limitations expenditure of personal funds by a 
candidate were ``constitutionally infirm.'' These sections of 
the original Act were struck down. In part, this has led to the 
current system that no one intended to develop as it has. Yet 
Shays-Meehan repeats this mistake specifically incorporating a 
severability clause. No less an authority on campaign finance 
practices than our colleague, Representative Martin Frost, 
stated that ``a non-severability provision * * * would prevent 
the gradual erosion of the reform regime as has happened during 
the past two decades.'' (The New Democrat May/June 1997)

                       Summary of the Legislation


                     section-by-section description

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE


Section 101. Restricting soft money of political parties

    (a) Prohibits national committees of political parties from 
soliciting, receiving, or directing a contribution, donation, 
or transfer of funds, or spending any funds, that are not 
subject to the contribution limitations, source prohibitions 
and reporting requirements of the Federal Election Campaign Act 
(FECA).
    (b) Requires that any funds spent by State, district, and 
local political parties for federal election activity be 
subject to FECA limits.
    (c) Defines federal election activity as: voter 
registration activity within 120 days of a federal election; 
voter identification, get-out-the-vote activity, or generic 
campaign activity conducted in connection with an election in 
which a candidate for federal office appears on the ballot 
(regardless of whether a candidate for state or local office 
also appears on the ballot); and a communication that refers to 
a clearly identified candidate for federal office (regardless 
of whether a candidate for state or local office is also 
mentioned or identified) and is made for the purpose of 
influencing a federal election (regardless of whether the 
communication is express advocacy).
    (d) Excludes from federal election activity an amount 
expended or disbursed by a state, district, or local committee 
of a political party for: campaign activity conducted solely on 
behalf of a clearly identified candidate for state or local 
office; a contribution to a candidate for state or local 
office, provided the contribution is not designated or used for 
a federal election activity; the costs of a state, district, or 
local political convention; the costs of grassroots campaign 
materials, i.e., buttons, bumper stickers, signs, etc.) that 
name only a candidate for state or local office; the non-
federal share of a state, district, or local party committee's 
administrative and overhead expenses subject to FEC guidelines; 
and the cost of constructing or purchasing an office facility 
or equipment for a state, district or local committee.
    (e) Subjects amounts spent by a political party committee, 
or by an agent or officer thereof, to raise funds that are used 
to pay the costs of a federal election activity, to the 
limitations, prohibitions, and reporting requirements of the 
FECA.
    (f) Prohibits a national, state, district, or local 
political party committee from soliciting funds for, or making 
or directing donations to, a non-profit organization.
    (g) Prohibits a candidate or federal office holder, or 
agent thereof, or an entity directly or indirectly established, 
financed, maintained or controlled by or acting on behalf of 
one or more federal candidates, from soliciting, receiving, 
directing, transferring, or spending funds for a federal 
election activity on behalf of such candidate, individual, 
agent or any other person, unless the funds are subject to the 
limitations, prohibitions, and reporting requirements of the 
FECA. (Exempts the solicitation or receipt of funds by a 
candidate for a state or local office if the funds are 
permitted under state law in connection with a state election, 
other than a federal election activity. Also exempts candidates 
who attend, speak, or are featured guests at fundraising events 
sponsored by a state, district, or local political party 
committee.)

Section 102. Increasing contribution limits for political party state 
        committees and aggregate contribution limit for individuals

    (a) Increases limits on individual contributions to state 
committees of political parties from $5,000 to $10,000 per 
year.
    (b) Increases aggregate individual contribution limits from 
$25,000 to $30,000 per year.

Section 103. Changing reporting requirements

    (a) Requires the national committee of a political party, 
any national congressional campaign committee of a political 
party, any subordinate committee of either, to report all 
receipts and disbursements during the reporting period.
    (b) Requires state party committees to report all receipts 
and disbursements for federal election activities.
    (c) Require a political committee to separately itemize its 
reporting of receipts or disbursements from any person 
aggregating in excess of $200 for a calendar year.
    (d) Repeals the ``building fund'' exemption to the 
definition of ``contribution.''

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES


Section 201. Definitions

    (a) Defines independent expenditure as expenditure by a 
person for a communication that is express advocacy and that is 
not coordinated.
    (b) Defines express advocacy as a communication that 
advocates the election or defeat of a candidate by: containing 
a phrase such as ``vote for,'' ``re-elect,'' ``support,'' 
``defeat,'' ``reject,'' or words that in context can have no 
reasonable meaning other than to advocate the election or 
defeat of one or more clearly identified candidates; referring 
to one or more clearly identified candidates in a paid radio or 
TV advertisement that is broadcast within 60 days preceding the 
date of an election of the candidate (only applies to general 
election in the presidential or vice presidential race); or 
expressing unmistakable and unambiguous support for or 
opposition to one or more clearly identified candidates.
    (c) Exempts from express advocacy; a printed communication 
that is a voting record or guide that: presents information in 
an educational manner solely about the voting record or 
position on a campaign issue of one or more candidates; is not 
coordinated; does not contain a phrase such as ``vote for,'' 
``re-elect,'' ``support,'' ``defeat,'' or ``reject,'' or words 
that in context can have no reasonable meaning other than to 
urge the election or defeat of one or more clearly identified 
candidates.
    (d) Defines expenditure to include payments by a political 
committee for a communication that refers to a clearly 
identified candidate, for the purpose of influencing a federal 
election (regardless of whether it is express advocacy).

Section 202. Determining express advocacy without regard to background 
        music

    (a) Excludes instrumental musical background of 
advertisements from being taken into account in determining 
whether the ad contains express advocacy.

Section 203. Civil penalty

    (a) Prohibits conciliation agreements in cases in which FEC 
has found probable cause of knowing and willful violations of 
independent expenditure disclosure rules.

Section 204. Adding reporting requirements for certain independent 
        expenditures

    (a) Requires anyone who makes an independent expenditure of 
$1,000 or more within 20 days of an election to file an FEC 
report within 24 hours, with additional reports required within 
24 hours of additional expenditures of $1,000 or more.
    (b) Requires anyone who makes independent expenditures 
aggregating $10,000 or more at any time up to and including the 
20th day before the date of an election to file a report 
describing the expenditure within 48 hours, with additional 
reports must be filed for every additional expenditure of 
$10,000 within 48 hours.
    (c) Requires the reports must be filed with the FEC and 
contain the name of each candidate whom an expenditure is 
intended to support or oppose.

Section 205. Independent versus coordinated expenditures by party

    (a) Prohibits a political party committee from making both 
coordinated expenditures and independent expenditures on behalf 
of a nominated candidate.
    (b) Requires a party committee, before making a coordinated 
expenditure, to file a certification that the committee has not 
and will not make any independent expenditure with respect to 
the candidate during the same election cycle.
    (c) Considers all political committees established by a 
national party and by a state party to be a single political 
committee for purposes of this section.

Section 206. Creating rules regarding coordination with candidates

    (a) Defines contribution to include anything of value 
provided in coordination with a candidate for the purpose of 
influencing a federal election whether or not it is express 
advocacy.
    (b) Defines coordinated activity as anything of value 
provided in coordination with a candidate (or party or agent) 
to influence a federal election, regardless of whether it 
contains express advocacy, including payments: in cooperation 
or consultation with, or at request or suggestion of, a 
candidate, party, or agent; using candidate-prepared materials; 
based on information provided by candidate's campaign for 
purposes of expenditure; by a spender who during that election 
cycle has raised funds or acted in an official position for a 
candidate; by a spender who has used the same consultants as an 
affected candidate during election cycle, directly or through 
party; for communications about campaign plans, directly or 
through party; for in-kind professional services, directly or 
through party, other than for voter guide mailings; and in 
coordination with a candidate to influence election regardless 
of whether the communication contains express advocacy (but 
exempts lobbying contacts from consideration as coordination 
with candidates).

                         TITLE III--DISCLOSURE


Section 301. Filing of reports using computers and FAX machines

    (a) Requires FEC to promulgate regulations that require 
campaign committees (meeting a minimum expenditure threshold) 
to file electronically with the FEC.
    (b) Requires FEC to post reports on the Internet within 24 
hour of receipt.

Section 302. Prohibiting contribution deposit with incomplete 
        information

    (a) Requires campaign committees to verify that contributor 
information is complete before depositing any check of $200 or 
more.

Section 303. Allowing random audits

    (a) Authorizes the FEC to conduct random audits and 
investigations of congressional campaigns, within 12 months 
after the election.

Section 304. Changing reporting requirements for contributions of $50 
        or more

    (a) Decreases the threshold for contributor disclosure from 
$200 to $50 (only for name and address).

Section 305. Setting rules for use of candidates' names

    (a) Requires a candidate's name in the name of an 
authorized committee.
    (b) Prohibits an unauthorized political committee from 
including the name of any candidate in its name.
    (c) Prohibits the name of any candidate from being used in 
any activity on behalf of the committee in such a context as to 
suggest that the use of his/her name have been authorized (not 
applicable to a national, state, or local party committee).

Section 306. Prohibiting false representation to solicit contributions

    (a) Prohibits a person from soliciting contributions by 
falsely representing him/herself as a candidate or as a 
representative of a candidate, a political committee, or a 
political party.

Section 307. Requiring reports of soft money by persons other than 
        political parties

    (a) Requires unions, corporations, and other groups or 
entities--other than party committees or religious 
organizations--to file monthly statements on all exempt 
activities (but only internal communications referring to 
federal candidates), once $50,000 has been spent in a calendar 
year on federal election activities.
    (b) Requires disbursement made within 20 days of an 
election to be reported within 24 hours, statements to include 
the total disbursement, the name and address of the person or 
entity to whom the disbursement was made if the amount is in 
excess of $200, whether the disbursement was in support of, or 
in opposition to, a candidate or a political party, and the 
name of the candidate or the political party.
    (c) Defines generic campaign activity as that which 
promotes a political party and does not promote a candidate or 
non-federal candidate.

Section 308. Augmenting disclaimers on campaign advertising

    (a) Requires any campaign communication to include a 
statement about who is responsible for the content of the 
advertisement, with minimum requirements for the size, length, 
or visibility of such disclaimer.

                    TITLE IV--PERSONAL WEALTH OPTION


Section 401. Setting a voluntary limit on spending from candidate's 
        personal funds

    (a) Defines ``eligible'' House or Senate candidate as one 
who files a declaration that the candidate will not spend or 
make loans of more than $50,000 from personal (including 
immediate family) wealth per election.

Section 402. Adding a condition for political party coordinated 
        expenditures

    (a) Prohibits party committees from making coordinated 
expenditures on behalf of a candidate who is not an eligible 
House or Senate candidate.

                         TITLE V--MISCELLANEOUS


Section 501. Codifying the Beck decision

    (a) Requires unions to annually give reasonable notice to 
dues-paying non-members of rights to disallow political use of 
their funds and to inform them of procedures to file such 
objections.
    (b) Requires a labor organization, upon the filing of an 
objection, to reduce the payments the individual makes by a 
reasonable proportion that reflects its expenditures supporting 
political activities unrelated to collective bargaining.
    (c) Defines ``expenditures supporting political 
activities'' as expenditures in connection with a federal, 
state, or local election or in connection with efforts to 
influence legislation unrelated to collective bargaining.

Section 502. Specifying permissible uses of contributed funds

    (a) Codifies regulations on permissible uses of contributed 
funds and specifies the prohibition on the use of campaign 
funds for personal purposes.

Section 503. Limiting congressional use of the franking privilege

    (a) Prohibits franked mass mailings during the 180 days 
preceding a general election and 90 days preceding a primary 
election.

Section 504. Strengthening the prohibition of fundraising on federal 
        property

    (a) Prohibits and penalizes officers and employees of the 
federal government, from soliciting a campaign donation, 
including soft money, while in any room or building occupied in 
the discharge of official duties by an officer or employee of 
the U.S.; imposes a fine of up to $5,000 and up to three years 
in prison for violations.

Section 505. Penalties for violations

    (a) Increases civil penalties for violations of election 
laws.
    (b) Adds automatic, scheduled penalties for late filing.
    (c) Provides for equitable remedies in conciliation 
agreements.

Section 506. Strengthening the foreign money ban

    (a) Prohibits a foreign national, directly or indirectly, 
from making a donation, including soft money, in connection 
with a federal, state, or local election to a political 
committee, a candidate for federal office, or a committee of 
political party.
    (b) Prohibits the solicitation, acceptance, or receipt of a 
contribution or donation from a foreign national.
    (c) Prohibits plea of ``willful blindness'' as a defense 
against charge of violating foreign national fundraising ban, 
if recipient should have known that contribution was from 
foreign national.

Section 507. Prohibiting contributions by minors

    (a) Prohibits individuals 17 years old or younger from 
making campaign contributions.

Section 508. Expediting enforcement procedures

    (a) Allows FEC to order expedited procedures in cases where 
there is clear and convincing evidence that a violation has 
occurred, is occurring, or is about to occur.
    (b) Allows FEC to refer possible violations to the Attorney 
General at any time.

Section 509. Initiating enforcement procedures

    (a) Changes standard for initiating enforcement proceedings 
from ``reason to believe'' to ``reason to investigate.''

Section 510. Protecting equal participation of eligible voters in 
        campaigns and elections

    (a) Ensures that nothing in this act may be construed to 
prohibit any eligible voter from contributing or spending money 
with regard to federal elections, including through a separated 
segregated fund through his or her union or employer.

Section 511. Increasing penalty for violation of foreign contribution 
        ban

    (a) Increases penalties for violating foreign national ban 
of up to 10 years in prison, up to $1 million in fines, or 
both.

Section 512. Expediting court review of certain alleged violations

    (a) Allows candidates to institute civil actions for 
suspected violations in last 90 days of election, with 
expedited court review procedures.

Section 513. Conspiracy to violate presidential campaign spending 
        limits

    (a) Prohibits presidential candidates who are receiving 
public funds from conspiring to evade spending limits by 
additional fundraising from private sources.
    (b) Imposes fines of up to $1 million, up to 3 years in 
prison, or both, for candidates found guilty of such 
conspiracy.

Section 514. Depositing certain contributions and donations to be 
        returned in Treasury escrow account

    (a) Provides that contributions over $500 that a committee 
intends to return (after 90 days of receipt) be placed in an 
FEC escrow account, pending investigation of possible 
violations.
    (b) Provides that money in the account would be used toward 
fines, penalties, and investigation costs.
    (c) Provides that contributions in an escrow account would 
be returned to donors if no reason to believe a violation 
occurred is found within 180 days of deposit.

Section 515. Establishing an FEC clearinghouse of information on 
        political activities

    (a) Establishes a clearinghouse of public information 
within the FEC to provide the public with information regarding 
political and lobbying activities of foreign principals and 
agents.

Section 516. Enforcing spending on presidential and vice presidential 
        candidates who receive public funding

    (a) Requires presidential candidates receiving public 
financing to certify that they will not solicit soft money for 
their federal election activities.

      TITLE VI--INDEPENDENT COMMISSION ON CAMPAIGN FINANCE REFORM


Section 601. Establishing and stating the purpose of commission

    (a) Establishes a commission to study the laws relating to 
the financing of political activity and to report and recommend 
legislation to reform those laws.

Section 602. Specifying membership of commission

    (a) Specifies that Commission shall consist of 12 members, 
appointed by the President within 15 days, who are not Members 
of Congress and who are specially qualified to serve by reason 
of education, training or experience. The Speaker, the Senate 
Majority Leader, the House Minority Leader and the Senate 
Minority Leader will each have 3 appointments, one of which 
must be a ``political independent.'' No more than 4 members of 
the Commission may be of the same political party.
    (b) Authorizes President to designate one member of 
Commission as chair.
    (c) Sets term of members as the life of the Commission.
    (d) Specifies that any vacancies shall be filled in the 
same manner in which the original appointment was made.

Section 603. Powers of the commission

    (a) Directs Commission to hold hearings, take testimony and 
receive evidence. Requires that a substantial number of the 
Commission's meetings must be open, with significant 
opportunities for testimony from the general public.
    (b) Specifies that 7 members of the Commission shall 
constitute a quorum, but 9 members must approve the recommended 
legislation.

Section 604. Administrative provisions

    (a) Sets the pay rate for members of the Commission.
    (b) Requires the Commissioners to appoint a staff director 
and provides for additional staff and consultants.

Section 605. Requiring final report and recommended legislation

    (a) Requires the Commission to report and recommend 
legislation no later than 180 days after the adjournment of the 
106th Congress.
    (b) Requires the Commission to consider the following goals 
with regard to its recommendations: encouraging fair and open 
elections that provide voters with meaningful information about 
candidates and issues; eliminating the disproportionate 
influence of special interest financing of federal elections; 
and creating a more equitable electoral system for challengers 
and incumbents.

Section 606. Expediting congressional consideration of legislation

    (a) Requires the recommended legislation to proceed to the 
floor under the same process outlined in the Defense Base 
Closure and Realignment Act of 1990.
    (b) Limits debate to 10 hours in the House and in the 
Senate.

Section 607. Terminating the commission

    (a) Disbands the Commission 90 days after the date that it 
issues its report.

Section 608. Authorizing appropriations

    (a) Authorizes appropriations of such sums necessary to 
establish and run the Commission.

TITLE VII--PROHIBITING USE OF WHITE HOUSE MEALS AND ACCOMMODATIONS FOR 
                         POLITICAL FUNDRAISING


Section 701. Prohibiting use of meals and accommodations for political 
        fundrising

    (a) Prohibits any person from providing or from offering to 
provide meals or accommodations at the White House in exchange 
for money for anything of value.

  TITLE VIII--SENSE OF THE CONGRESS REGARDING FUNDRAISING ON FEDERAL 
                                PROPERTY


Section 801. Sense of the Congress regarding applicability of 
        controlling legal authority to fundraising on federal 
        government property

    (a) Establishes that it is the sense of the Congress that 
federal law prohibits the use of federal government property to 
raise campaign funds.

TITLE IX--PROHIBITING SOLICITATION TO OBTAIN ACCESS TO CERTAIN FEDERAL 
                          GOVERNMENT PROPERTY


Section 901. Prohibiting solicitation or acceptance to obtain access to 
        certain federal government property

    (a) Prohibits solicitation or receipt of anything of value 
in consideration of providing anyone with access to Air Force 
One, Marine One, Air Force Two, Marine Two, the White House or 
the Vice President's residence.

     TITLE X--REIMBURSEMENT OF USE OF AIR FORCE ONE FOR POLITICAL 
                              FUNDRAISING


Section 1001. Requiring national parties to reimburse at cost for use 
        of Air Force One for political fundraising

    (a) Requires national parties to reimburse federal 
government at fair market charter rate for the cost of an 
individual traveling on Air Force One for any travel that 
includes a fundraising event.

         TITLE XI--PROHIBITING THE USE OF WALKING AROUND MONEY


Section 1101. Prohibiting campaigns from providing currency to 
        individuals for purposes of encouraging turnout on date of 
        election

    (a) Prohibits political committees or their agents from 
providing currency directly to any individual for purposes of 
encouraging the individual to appear at the polling place for 
the election.

            TITLE XII--ENHANCING ENFORCEMENT OF CAMPAIGN LAW


Section 1201. Enhancing enforcement of campaign finance law

    (a) Increases criminal penalties for knowing and willful 
violations of contribution and expenditure limits to mandatory 
prison term of one to 10 years.
    (b) Allows Justice Department to bring criminal actions at 
any time, without waiting for FEC referral.

 TITLE XIII--BAN ON COORDINATED SOFT MONEY ACTIVITIES BY PRESIDENTIAL 
                               CANDIDATES


Section 1301. Banning coordination of soft money for issue advocacy by 
        presidential candidates receiving public financing

    (a) Prohibits presidential candidates who receive public 
funding from coordinating with any political party on the 
subject of issue advertisements, regardless of whether or not 
the advertisements include express advocacy.

    TITLE XIV--POSTING NAMES OF CERTAIN AIR FORCE ONE PASSENGERS ON 
                                INTERNET


Section 1401. Requiring that names of passengers on Air Force One and 
        Air Force Two be made available through the Internet

    (a) Requires President to post on the Internet the name of 
any non-government passenger on Air Force One or Two within 30 
days after the flight. If the President determines that such 
disclosure is not in the national security interests, he must 
submit the information to the chair and ranking member of the 
House Permanent Select Committee on Intelligence and Senate 
Select Committee on Intelligence.

  TITLE XV--EXPULSION PROCEEDINGS FOR HOUSE MEMBERS RECEIVING FOREIGN 
                             CONTRIBUTIONS


Section 1501. Permitting consideration of privileged motion to expel 
        House member accepting illegal foreign contribution

    (a) Establishes procedures to consider as a privileged 
motion expulsion procedures for House members found guilty of 
accepting foreign contributions.

TITLE XVI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS


Section 1601. Severability

    (a) Provides that if any part or amendment to the FECA is 
declared unconstitutional, the remainder of the Act and these 
amendments will be unaffected.

Section 1602. Review of constitutional issues

    (a) Provides that appeals regarding rulings on the 
constitutionality of any provision of this Act may be taken 
directly to the Supreme Court.

Section 1603. Effective date

    (a) 90 days after enactment.

Section 1604. Regulations

    (a) Requires the FEC, within 45 days of enactment, to 
develop regulations necessary to carry out this Act.

               Committee Consideration of the Legislation


                       introduction and referral

    On January 19, 1999, Mr. Shays (for himself, Mr. Meehan, 
Mr. Wamp, Mr. Levin, Mrs. Roukema, Mr. Dingell, Mr. Franks of 
New Jersey, Mrs. Maloney of New York, Mr. Leach, Mr. Farr of 
California, Mr. Houghton, Mr. Bonior, Mr. Greenwood, Mr. 
Gephardt, Mrs. Morella, Mr. Allen, Mr. Castle, Mr. Hoyer, Mr. 
Bilbray, Ms. DeLauro, Mr. Boehlert, Mr. Lewis of Georgia, Mr. 
Ramstad, Mr. Frank of Massachusetts, Mr. Metcalf, Mr. George 
Miller of California, Mr. Gilchrest, Ms. Rivers, Mr. Sanford, 
Mrs. Capps, Mr. Porter, Mr. Dooley of California, Mrs. Kelly, 
Mr. Cardin, Mr. Walsh, Mr. Gejdenson, Mr. Forbes, Mr. Barrett 
of Wisconsin, Mr. Horn, Mr. Tierney, Mr. Gallegly, Mr. Minge, 
Mr. Gillmor, Mr. Price of North Carolina, Mr. Gilman, Mr. Kind, 
Mr. LoBiondo, Mr. Nadler, Mr. Frelinghuysen, Mr. Mascara, Mr. 
Sherman, Mr. Stark, Mr. Brady of Pennsylvania, Mr. Baldacci, 
Mr. Moran of Virginia, Mr. Smith of Washington, Mr. Luther, Mr. 
Maloney of Connecticut, Mr. Waxman, Mr. Pomeroy, Mr. Clement, 
Mr. Lantos, Mr. Pallone, Mr. Hinchey, Mr. Blumenauer, Mr. 
Vento, Mr. Wexler, Mr. McGovern, Mr. Markey, Mr. Rothman, Mr. 
Pascrell, Mr. Kanjorski, Mr. Ackerman, Mr. Davis of Florida, 
Mr. Holt, Mr. Green of Texas, Mr. Kleczka, Ms. Kilpatrick, Ms. 
Roybal-Allard, Mrs. Tauscher, Ms. Pelosi, Mr. Spratt, Mr. 
Hoeffel, Mr. Moore, Mr. Borski, Ms. Baldwin, Mr. Sawyer, Mr. 
Udall of New Mexico, Ms. Carson, Ms. McCarthy of Missouri, Mr. 
Hall of Ohio, Ms. Lofgren, Mrs. McCarthy of New York, Mr. 
Snyder, Mr. Baird, Mr. Gonzalez, and Mrs. Johnson of 
Connecticut) introduced the following bill; which was referred 
to the Committee on House Administration, and in addition to 
the Committees on Education and the Workforce, Government 
Reform, the Judiciary, Ways and Means, and Rules, for a period 
to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the 
jurisdiction of the committee concerned

                                hearings

    The Committee on House Administration held four days of a 
hearing on Campaign Reform over two months in 1999.
    On June 17, 1999, the Committee held the first day of the 
hearing on Campaign Reform. Members present: Mr. Boehner, Mr. 
Ehlers, Mr. Mica, Mr. Ewing, Mr. Hoyer, and Mr. Davis. 
Witnesses: Mr. Gilchrest testified on H.R. 593 and H.R. 594. 
Mr. Calvert testified on H.R. 1880. Mr. Sabo testified on H.R. 
1171.
    On June 29, 1999, the Committee held the second day of the 
hearing on Campaign Reform. Members present: Mr. Thomas, Mr. 
Boehner, Mr. Ney, Mr. Mica, Mr. Ewing, Mr. Hoyer, Mr. Fattah, 
and Mr. Davis. Witnesses: Mr. Shays testified on H.R. 417, Mr. 
Hutchinson testified on H.R. 1867, Mr. Regula testified on H.R. 
1641, Ms. Mink testified on H.R. 399 and H.R. 400, Mr. Gillmor 
testified on H.R. 1778 (sharing time with Mr. Tanner), and Mr. 
Andrews testified on H.R. 331.
    On July 13, 1999, the Committee held the third day of the 
hearing on Campaign Reform. Members present: Mr. Boehner, Mr. 
Ney, Mr. Ewing, Mr. Hoyer, and Mr. Davis. Witnesses: Mr. Dreier 
submitted written testimony on H.R. 32, Mr. Doolittle testified 
on H.R. 1922, Mr. Burton testified on H.R. 1747, Mr. Bereuter 
testified on H.R. 69, Mr. Pitts testified on H.R. 223, Mr. 
Goodling testified on H.R. 2467, Mr. Price testified on H.R. 
227, Mr. Paul testified on H.R. 2026 and H.R. 2027, and Mr. 
Watkins testified on H.R. 696.
    On July 22, 1999, the Committee held the fourth day of the 
hearing on Campaign Reform. Members present: Mr. Thomas, Mr. 
Boehner, Mr. Ehlers, Mr. Hoyer, Mr. Fattah, and Mr. Davis. 
Witnesses, Roger Pilon, Director, Center for Constitutional 
Studies, CATO Institute; Laura Murphy, Legislative Director, 
American Civil Liberties Union; Don Simon, Acting President, 
Common Cause; Jim Miller, author of ``Monopoly Politics,'' 
Former Director, OMB; Burt Neuborne, Director, Brennan Center 
for Law and Justice; James Bopp, James Madison Center for Free 
Speech; Bob Dahl, Fair Government Foundation; Paul Sullivan, 
Americans Back in Charge Foundation; David O'Steen, Executive 
Director, National Right to Life Committee; Cheryl Perrin, 
Executive Director, Campaign for America; Amy Kauffman, 
Research Fellow, Hudson Institute; and Kathleen Hall Jamieson, 
Dean, the Annenberg School of Communication.

                                 Markup

    On Monday August 2, 1999 the Committee met to mark up H.R. 
2668, H.R. 417, H.R. 1867, and H.R. 1922. The Committee 
unfavorably reported H.R. 417 by recorded vote (6-3) a quorum 
being present. During the markup no amendments were offered.

             Matters Required Under the Rules of the House


                         Committee Record Votes

    Clause 3(b) of House rule XII requires the results of each 
record vote on an amendment or motion to report, together with 
the names of those voting for and against, to be printed in the 
committee report. The only recorded vote requested during 
consideration of H.R. 417 occurred on the vote to report the 
bill unfavorably to the House.

------------------------------------------------------------------------
            Member                   Yes           No          Present
------------------------------------------------------------------------
Mr. Thomas....................            X   ............
Mr. Boehner...................            X   ............
Mr. Ehlers....................            X   ............
Mr. Ney.......................            X   ............
Mr. Mica......................            X   ............
Mr. Ewing.....................            X   ............
Mr. Hoyer.....................  ............            X
Mr. Fattah....................  ............            X
Mr. Davis.....................  ............            X
                               -----------------------------------------
    Total.....................            6             3   ............
------------------------------------------------------------------------

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

          Oversight Findings of Committee on Government Reform

    The Committee states, with respect to clause 3(c)(4) of 
rule XII of the Rules of the House of Representatives, that the 
Committee on Government Reform and Oversight did not submit 
findings or recommendations based on investigations under 
clause 4(c)(2) of rule X of the Rules of the House of 
Representatives.

                        Constitutional Authority

    In compliance with clause 3(d)(1) of rule XIII, the 
Committee states that Article 1, Section 4 of the U.S. 
Constitution grants Congress the authority to make laws 
governing the time, place and manner of holding Federal 
elections.

                            Federal Mandates

    The Committee states, with respect to section 423 of the 
Congressional Budget Act of 1974, that the bill does not 
include any significant Federal mandate.

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 417 is not 
intended to preempt any state or local law.

            Statement on Budget Authority and Related Items

    The bill does not provide new budget authority.

                        Committee Cost Estimate

    Clause 3(c)(2) of rule XII requires each committee report 
that accompanies a measure providing new budget authority, new 
spending authority, or changing revenues or tax expenditures to 
contain a cost estimate, as required by section 308(a)(1) of 
the Congressional Budget Act of 1974, as amended and, when 
practicable with respect to estimates of new budget authority, 
a comparison of the total estimated funding level for the 
relevant program (or programs) to the appropriate levels under 
current law.
    Clause 3(d)(2) of rule XIII requires committees to include 
their own cost estimates in certain committee reports, which 
include, when practicable, a comparison of the total estimated 
funding level for the relevant program (or programs) with the 
appropriate levels under current law.
    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional adopts as its own the cost 
estimate prepared by the Director of the Congressional Budget 
Office, pursuant to section 403 of the Congressional Budget Act 
of 1974.

               congressional budget office cost Estimate

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974:

                                                    August 4, 1999.
Hon. William M. Thomas,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 417, the 
Bipartisan Campaign Finance reform Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are John R. 
Righter and Mary Maginniss (for federal costs) and John Harris 
(for the private-sector impact).
            Sincerely,
                                          Dan L. Crippen, Director.
    Enclosure.

    H.R. 417 would make numerous amendments to the Federal 
Election Campaign Act of 1971, including:
          (1) raising both the total amount that individuals 
        can contribute each year and the amount that can 
        contribute to state committees of political parties;
          (2) prohibiting national committees of political 
        parties from soliciting, receiving, directing, 
        transferring, or spending so-called ``soft money'';
          (3) requiring the Federal Election Commission (FEC) 
        to issue regulations requiring political committees to 
        file certain information electronically;
          (4) adding new disclosure requirements;
          (5) establishing a clearinghouse for information on 
        political activities within the FEC;
          (6) increasing the amount of penalties and fines for 
        violations of election laws;
          (7) requiring political committees to temporarily 
        deposit with the treasury certain contributions to be 
        returned to the donor pending investigation by the FEC 
        of possible violations;
          (8) limiting the Congressional use of the franking 
        privilege; and
          (9) establishing an independent commission on 
        campaign finance reform.
    Subject to the availability of the appropriated funds, CBO 
estimates that implementing H.R. 417 would cost the federal 
government less than $5 million in fiscal year 2000, less than 
$4 million in fiscal year 2001, and less than $3 million each 
year thereafter. Those amounts include administrative and 
compliance costs for the FEC, as well as costs to establish the 
independent commission campaign finance reform and the effects 
of limiting Congressional use of the franking privilege.
    Enacting the bill also would increase collections of fines 
and penalties, but CBO estimate that the increase in 
governmental receipts would not be significant. Because the 
bill would affect receipts, pay-as-you-go procedures would 
apply.
    H.R. 417 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments. The bill would 
create new private-sector mandates for national and state-level 
committees of political parties, federal office holders, and 
other political organizations and individuals. CBO has not yet 
completed an estimate of the costs of these mandates, but will 
provide such an estimate at a later date.
    Estimated cost to the Federal Government: Most of the costs 
of the bill would be discretionary spending incurred by the 
FEC. Enacting the bill also would increase collections of fines 
and penalties, but CBO estimates that the increase in 
governmental receipts would not be significant. The costs of 
this legislation fall within budget function 800 (general 
spending).

Discretionary spending

    Implementing H.R. 417 would increase costs for the FEC and 
would necessitate new discretionary spending to establish an 
independent commission on campaign finance reform. The costs of 
congressional franking could decline under H.R. 417, but CBO 
estimates that any such reduction would not be significant.

Federal Election Commission

    H.R. 417 would require the FEC to issue regulations 
requiring political committees with a minimum level of 
aggregate expenditures to file their reports electronically. 
The FEC would be required to process and post the information 
on its Internet site within 24 hours of receiving the 
information. In addition, the bill would make several changes 
to how the FEC administers and investigates violations of the 
Federal Election Campaign Act and would require additional 
disclosures of contributions and disbursements. The bill would 
also establish a clearinghouse for information on political 
activities within the FEC.
    Based on the information from the FEC, and subject to the 
availability of appropriated funds, CBO estimates that the 
commission would spend about 1 million in fiscal year 2000 to 
reconfigure its information systems to handle the increase 
workload form accepting and processing daily reports, to write 
new regulations implementing the bill's provisions, and to 
permit and mail materials informing candidates and committees 
of the new requirements.
    In addition, the FEC would have to monitor political 
parties' compliance with the bill's provisions, as well as 
comply with the bill's changes in issuing opinions and 
investigating possible violations. CBO estimates that 
implementing H.R. 417 would increase compliance costs by no 
more than $3 million a year. CBO estimates that the annual 
costs for FEC to operate the clearinghouse for information on 
political activities would be negligible.

Independent commission campaign finance reform

    H.R. 417 also would establish a commission to study the 
laws relating to the financing of elections and to recommend 
legislation to reform those laws. The commission would be 
composed of 12 members and would have the authority to hire and 
fire staff. The bill would require the commission to submit its 
report and recommendations within 180 days following the 
completion of the 106th Congress. Based on the cost of similar 
commissions. CBO estimates that the commission would cost 
around $1 million over fiscal years 2000 and 2001.

Limiting congressional use of the franking privilege

    H.R. 417 would prohibit a Member of Congress from sending 
mass mailings (500 or more pieces of mail identical in content) 
during the 90 days prior to a primary or during the 180 days 
prior to a general election unless the Member does not plan to 
run for any federal office. The prohibition is currently 90 
days prior to an election. Because the provision would not 
limit the total pieces of mail a Member would be allowed to 
send each year or otherwise reduce a Member's allocation for 
postage, CBO expects that limiting the time available for 
sending mass mailing would not have a significant budgetary 
impact.

Governmental receipts

    Enacting H.R. 417 would increase collections of fines and 
penalties for violation of campaign finance laws. Also, the 
bill would require that the campaigns deposit certain 
contributions with the Treasure, which could then be applied 
toward any fines or penalties. CBO estimates that the 
additional collections of penalties and fines would not be 
significant.

Escrow fund

    H.R. 417 would require political committees to deposit in 
an escrow fund at the Treasury any contribution or donation 
they receive that is equal to or greater than $500 and that the 
committee has not returned within 90 days of receipt. The 
contribution would be held pending an investigation by the FEC. 
Depending on the results of that investigation, the 
contribution could be returned--with interest--to the donor, 
applied toward any fines, penalties, or cost associated with 
the investigation, or some combination of the two. The FEC 
would have 180 days to complete its investigation. Deposits to 
or withdrawals from that escrow fund would not be considered 
budgetary transaction. However the bill specifies that some of 
the amounts deposited into the escrow fund could be used to 
offset costs of FEC investigation. Any such use of escrow funds 
would affect direct spending but CBO expects that the amounts 
involved would be less then $500,000 a year.
    Pay-as-you-go consideration: The Balanced Budget and 
Emergency Deficit Control Act specifies pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. These procedures would apply to H.R. 417 because it 
could affect both direct spending and receipts, but CBO 
estimates that the annual amount of such changes would not be 
significant.
    Estimates impact on state, local, and tribal government: 
H.R. 417 contains no intergovernmental mandates as defines in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimates impact on the private sector: The bill would 
increase new private-sector mandates for national and state-
level committees of political parties, federal office-holders, 
and other political organizations and individuals. CBO has not 
yet completed an estimate of the costs of these mandates, but 
will provide an estimate at a later date.
    Estimate prepared by: Federal Costs: John R. Righter and 
Mary Maginniss. Impact on the Private Sector: John Harris.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                FEDERAL ELECTION CAMPAIGN ACT OF 1971

           *       *       *       *       *       *       *



            TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS


                              definitions

      Sec. 301. When used in this Act:
      (1) * * *

           *       *       *       *       *       *       *

      (8)(A) The term ``contribution'' includes--
          (i) any gift, subscription, loan, advance, or deposit 
        of money or anything of value made by any person for 
        the purpose of influencing any election for Federal 
        office; [or]
          (ii) the payment by any person of compensation for 
        the personal services of another person which are 
        rendered to a political committee without charge for 
        any purpose[.]; or
                          (iii) coordinated activity (as 
                        defined in subparagraph (C)).
      (B) The term ``contribution'' does not include--
          (i) * * *

           *       *       *       *       *       *       *

          [(viii) any gift, subscription, loan, advance, or 
        deposit of money or anything of value to a national or 
        a State committee of a political party specifically 
        designated to defray any cost for construction or 
        purchase of any office facility not acquired for the 
        purpose of influencing the election of any candidate in 
        any particular election for Federal office;]
          [(ix)] (viii) any legal or accounting services 
        rendered to or on behalf of--
                  (I) * * *

           *       *       *       *       *       *       *

          [(x)] (ix) the payment by a State or local committee 
        of a political party of the costs of campaign materials 
        (such as pins, bumper stickers, handbills, brochures, 
        posters, party tabloids, and yard signs) used by such 
        committee in connection with volunteer activities on 
        behalf of nominees of such party: Provided, That--
                  (1) * * *

           *       *       *       *       *       *       *

          [(xi)] (x) the payment by a candidate, for nomination 
        or election to any public office (including State or 
        local office), or authorized committee of a candidate, 
        of the costs of campaign materials which include 
        information on or reference to any other candidate and 
        which are used in connection with volunteer activities 
        (including pins, bumper stickers, handbills, brochures, 
        posters, and yard signs, but not including the use of 
        broadcasting, newspapers, magazines, billboards, direct 
        mail, or similar types of general public communication 
        or political advertising): Provided, That such payments 
        are made from contributions subject to the limitations 
        and prohibitions of this Act;
          [(xii)] (xi) the payment by a State or local 
        committee of a political party of the costs of voter 
        registration and get-out-the-vote activities conducted 
        by such committee on behalf of nominees of such party 
        for President and Vice President: Provided, That--
                  (1) * * *

           *       *       *       *       *       *       *

          [(xiii)] (xii) payments made by a candidate or the 
        authorized committee of a candidate as a condition of 
        ballot access and payments received by any political 
        party committee as a condition of ballot access; and
          [(xiv) (xiii) any honorarium (within the meaning of 
        section 323 of this Act).
                  (C) ``Coordinated activity'' means anything 
                of value provided by a person in coordination 
                with a candidate, an agent of the candidate, or 
                the political party of the candidate or its 
                agent for the purpose of influencing a Federal 
                election (regardless of whether the value being 
                provided is a communication that is express 
                advocacy) in which such candidate seeks 
                nomination or election to Federal office, and 
                includes any of the following:
                          (i) A payment made by a person in 
                        cooperation, consultation, or concert 
                        with, at the request or suggestion of, 
                        or pursuant to any general or 
                        particular understanding with a 
                        candidate, the candidate's authorized 
                        committee, the political party of the 
                        candidate, or an agent acting on behalf 
                        of a candidate, authorized committee, 
                        or the political party of the 
                        candidate.
                          (ii) A payment made by a person for 
                        the production, dissemination, 
                        distribution, or republication, in 
                        whole or in part, of any broadcast or 
                        any written, graphic, or other form of 
                        campaign material prepared by a 
                        candidate, a candidate's authorized 
                        committee, or an agent of a candidate 
                        or authorized committee (not including 
                        a communication described in paragraph 
                        (9)(B)(i) or a communication that 
                        expressly advocates the candidate's 
                        defeat).
                          (iii) A payment made by a person 
                        based on information about a 
                        candidate's plans, projects, or needs 
                        provided to the person making the 
                        payment by the candidate or the 
                        candidate's agent who provides the 
                        information with the intent that the 
                        payment be made.
                          (iv) A payment made by a person if, 
                        in the same election cycle in which the 
                        payment is made, the person making the 
                        payment is serving or has served as a 
                        member, employee, fundraiser, or agent 
                        of the candidate's authorized committee 
                        in an executive or policymaking 
                        position.
                          (v) A payment made by a person if the 
                        person making the payment has served in 
                        any formal policy making or advisory 
                        position with the candidate's campaign 
                        or has participated in formal strategic 
                        or formal policymaking discussions 
                        (other than any discussion treated as a 
                        lobbying contact under the Lobbying 
                        Disclosure Act of 1995 in the case of a 
                        candidate holding Federal office or as 
                        a similar lobbying activity in the case 
                        of a candidate holding State or other 
                        elective office) with the candidate's 
                        campaign relating to the candidate's 
                        pursuit of nomination for election, or 
                        election, to Federal office, in the 
                        same election cycle as the election 
                        cycle in which the payment is made.
                          (vi) A payment made by a person if, 
                        in the same election cycle, the person 
                        making the payment retains the 
                        professional services of any person 
                        that has provided or is providing 
                        campaign-related services in the same 
                        election cycle to a candidate 
                        (including services provided through a 
                        political committee of the candidate's 
                        political party) in connection with the 
                        candidate's pursuit of nomination for 
                        election, or election, to Federal 
                        office, including services relating to 
                        the candidate's decision to seek 
                        Federal office, and the person retained 
                        is retained to work on activities 
                        relating to that candidate's campaign.
                          (vii) A payment made by a person who 
                        has directly participated in 
                        fundraising activities with the 
                        candidate or in the solicitation or 
                        receipt of contributions on behalf of 
                        the candidate.
                          (viii) A payment made by a person who 
                        has communicated with the candidate or 
                        an agent of the candidate (including a 
                        communication through a political 
                        committee of the candidate's political 
                        party) after the declaration of 
                        candidacy (including a pollster, media 
                        consultant, vendor, advisor, or staff 
                        member acting on behalf of the 
                        candidate), about advertising message, 
                        allocation of resources, fundraising, 
                        or other campaign matters related to 
                        the candidate's campaign, including 
                        campaign operations, staffing, tactics, 
                        or strategy.
                          (ix) The provision of in-kind 
                        professional services or polling data 
                        (including services or data provided 
                        through a political committee of the 
                        candidate's political party) to the 
                        candidate or candidate's agent.
                          (x) A payment made by a person who 
                        has engaged in a coordinated activity 
                        with a candidate described in clauses 
                        (i) through (ix) for a communication 
                        that clearly refers to the candidate or 
                        the candidate's opponent and is for the 
                        purpose of influencing that 
                        candidates's election (regardless of 
                        whether the communication is express 
                        advocacy).
                  (D) For purposes of subparagraph (C), the 
                term ``professional services'' means polling, 
                media advice, fundraising, campaign research or 
                direct mail (except for mailhouse services 
                solely for the distribution of voter guides as 
                defined in section 431(20)(B)) services in 
                support of a candidate's pursuit of nomination 
                for election, or election, to Federal office.
                  (E) For purposes of subparagraph (C), all 
                political committees established and maintained 
                by a national political party (including all 
                congressional campaign committees) and all 
                political committees established and maintained 
                by a State political party (including any 
                subordinate committee of a State committee) 
                shall be considered to be a single political 
                committee.
      (9)(A) The term ``expenditure'' includes--
          (i) any purchase, payment, distribution, loan, 
        advance, deposit, or gift of money or anything of 
        value, made by any person for the purpose of 
        influencing any election for Federal office; [and]
          (ii) a written contract, promise, or agreement to 
        make an expenditure[.]; and
          (iii) a payment made by a political committee for a 
        communication that--
                  (I) refers to a clearly identified candidate; 
                and
                  (II) is for the purpose of influencing a 
                Federal election (regardless of whether the 
                communication is express advocacy).

           *       *       *       *       *       *       *

    [(17) The term ``independent expenditure'' means an 
expenditure by a person expressly advocating the election or 
defeat of a clearly identified candidate which is made without 
cooperation or consultation with any candidate, or any 
authorized committee or agent of such candidate, and which is 
not made in concert with, or at the request or suggestion of, 
any candidate, or any authorized committee or agent of such 
candidate.]
          (17) Independent expenditure.--
                  (A) In general.--The term ``independent 
                expenditure'' means an expenditure by a 
                person--
                          (i) for a communication that is 
                        express advocacy; and
                          (ii) that is not coordinated activity 
                        or is not provided in coordination with 
                        a candidate or a candidate's agent or a 
                        person who is coordinating with a 
                        candidate or a candidate's agent.

           *       *       *       *       *       *       *

          (20) Express advocacy.--
                  (A) In general.--The term ``express 
                advocacy'' means a communication that advocates 
                the election or defeat of a candidate by--
                          (i) containing a phrase such as 
                        ``vote for'', ``re-elect'', 
                        ``support'', ``cast your ballot for'', 
                        ``(name of candidate) for Congress'', 
                        ``(name of candidate) in 1997'', ``vote 
                        against'', ``defeat'', ``reject'', or a 
                        campaign slogan or words that in 
                        context can have no reasonable meaning 
                        other than to advocate the election or 
                        defeat of one or more clearly 
                        identified candidates;
                          (ii) referring to one or more clearly 
                        identified candidates in a paid 
                        advertisement that is transmitted 
                        through radio or television within 60 
                        calendar days preceding the date of an 
                        election of the candidate and that 
                        appears in the State in which the 
                        election is occurring, except that with 
                        respect to a candidate for the office 
                        of Vice President or President, the 
                        time period is within 60 calendar days 
                        preceding the date of a general 
                        election; or
                          (iii) expressing unmistakable and 
                        unambiguous support for or opposition 
                        to one or more clearly identified 
                        candidates when taken as a whole and 
                        with limited reference to external 
                        events, such as proximity to an 
                        election.
                  (B) Voting record and voting guide 
                exception.--The term ``express advocacy'' does 
                not include a communication which is in printed 
                form or posted on the Internet that--
                          (i) presents information solely about 
                        the voting record or position on a 
                        campaign issue of one or more 
                        candidates (including any statement by 
                        the sponsor of the voting record or 
                        voting guide of its agreement or 
                        disagreement with the record or 
                        position of a candidate), so long as 
                        the voting record or voting guide when 
                        taken as a whole does not express 
                        unmistakable and unambiguous support 
                        for or opposition to one or more 
                        clearly identified candidates;
                          (ii) is not coordinated activity or 
                        is not made in coordination with a 
                        candidate, political party, or agent of 
                        the candidate or party, or a 
                        candidate's agent or a person who is 
                        coordinating with a candidate or a 
                        candidate's agent, except that nothing 
                        in this clause may be construed to 
                        prevent the sponsor of the voting guide 
                        from directing questions in writing to 
                        a candidate about the candidate's 
                        position on issues for purposes of 
                        preparing a voter guide or to prevent 
                        the candidate from responding in 
                        writing to such questions; and
                          (iii) does not contain a phrase such 
                        as ``vote for'', ``re-elect'', 
                        ``support'', ``cast your ballot for'', 
                        ``(name of candidate) for Congress'', 
                        ``(name of candidate) in (year)'', 
                        ``vote against'', ``defeat'', or 
                        ``reject'', or a campaign slogan or 
                        words that in context can have no 
                        reasonable meaning other than to urge 
                        the election or defeat of one or more 
                        clearly identified candidates.
                  (C) Background music.--In determining whether 
                any communication by television or radio 
                broadcast constitutes express advocacy for 
                purposes of this Act, there shall not be taken 
                into account any background music not including 
                lyrics used in such broadcast.
          (21) Generic campaign activity.--The term ``generic 
        campaign activity'' means an activity that promotes a 
        political party and does not promote a candidate or 
        non-Federal candidate.

                  organization of political committees

      Sec. 302. (a) * * *

           *       *       *       *       *       *       *

      (e)(1) * * *

           *       *       *       *       *       *       *

  [(4) The name of each authorized committee shall include the 
name of the candidate who authorized such committee under 
paragraph (1). In the case of any political committee which is 
not an authorized committee, such political committee shall not 
include the name of any candidate in its name.]
  (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 the 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.

           *       *       *       *       *       *       *

  (j) Deposit of Contributions.--The treasurer of a candidate's 
authorized committee shall not deposit, except in an escrow 
account, or otherwise negotiate a contribution from a person 
who makes an aggregate amount of contributions in excess of 
$200 during a calendar year unless the treasurer verifies that 
the information required by this section with respect to the 
contributor is complete.

           *       *       *       *       *       *       *


                                reports

      Sec. 304. (a)(1) * * *

           *       *       *       *       *       *       *

  [(11)(A) The Commission shall permit reports required by this 
Act to be filed and preserved by means of computer disk or any 
other appropriate electronic format or method, as determined by 
the Commission.
  [(B) In carrying out subparagraph (A) with respect to filing 
of reports, the Commission shall provide for one or more 
methods (other than requiring a signature on the report being 
filed) for verifying reports filed by means of computer disk or 
other electronic format or method. Any verification under the 
preceding sentence shall be treated for all purposes (including 
penalties for perjury) in the same manner as a verification by 
signature.
  [(C) As used in this paragraph, the term ``report'' means, 
with respect to the Commission, a report, designation, or 
statement required by this Act to be filed with the 
Commission.]
  (11)(A) The Commission shall promulgate a regulation under 
which a person required to file a designation, statement, or 
report under this Act--
          (i) is required to maintain and file a designation, 
        statement, or report 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 a designation, statement, 
        or report in electronic form or an alternative form, 
        including the use of a facsimile machine, if not 
        required to do so under the regulation promulgated 
        under clause (i).
  (B) The Commission shall make a designation, statement, 
report, or notification that is filed electronically with the 
Commission accessible to the public on the Internet not later 
than 24 hours after the designation, statement, report, or 
notification is received by the Commission.
  (C) In promulgating a regulation 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 
regulation. 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.
    (b) Each report under this section shall disclose--
          (1) * * *

           *       *       *       *       *       *       *

          (3) the identification of each--
                  (A) person (other than a political committee) 
                who makes a contribution to the reporting 
                committee during the reporting period, whose 
                contribution or contributions have an aggregate 
                amount or value in excess of [$200] $50 within 
                the calendar year, or in any lesser amount if 
                the reporting committee should so elect, 
                together with the date and amount of any such 
                contribution[;], except that in the case of a 
                person who makes contributions aggregating at 
                least $50 but not more than $200 during the 
                calendar year, the identification need include 
                only the name and address of the person;

           *       *       *       *       *       *       *

    (c)(1) Every person (other than a political committee) who 
makes independent expenditures in an aggregate amount or value 
in excess of $250 during a calendar year shall file a statement 
containing the information required under subsection (b)(3)(A) 
for all contributions received by such person.
    (2) Statements required to be filed by this subsection 
shall be filed in accordance with subsection (a)(2), and shall 
include--
          (A) * * *

           *       *       *       *       *       *       *

          (C) the identification of each person who made a 
        contribution in excess of $200 to the person filing 
        such statement which was made for the purpose of 
        furthering an independent expenditure.
[Any independent expenditure (including those described in 
subsection (b)(6)(B)(iii) aggregating $1,000 or more made after 
the 20th day, but more than 24 hours, before any election shall 
be reported within 24 hours after such independent expenditure 
is made. Such statement shall be filed with the Secretary or 
the Commission and the Secretary of State and shall contain the 
information required by subsection (b)(6)(B)(iii) indicating 
whether the independent expenditure is in support of, or in 
opposition to, the candidate involved.]
  (d) Time for Reporting Certain Expenditures.--
          (1) Expenditures aggregating $1,000.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $1,000 or more after the 20th day, but more 
                than 24 hours, before the date of an election 
                shall file a report describing the expenditures 
                within 24 hours after that amount of 
                independent expenditures has been made.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall file an additional report within 24 hours 
                after each time the person makes or contracts 
                to make independent expenditures aggregating an 
                additional $1,000 with respect to the same 
                election as that to which the initial report 
                relates.
          (2) Expenditures aggregating $10,000.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $10,000 or more at any time up to and including 
                the 20th day before the date of an election 
                shall file a report describing the expenditures 
                within 48 hours after that amount of 
                independent expenditures has been made.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall file an additional report within 48 hours 
                after each time the person makes or contracts 
                to make independent expenditures aggregating an 
                additional $10,000 with respect to the same 
                election as that to which the initial report 
                relates.
          (3) Place of filing; contents.--A report under this 
        subsection--
                  (A) shall be filed with the Commission; and
                  (B) shall contain the information required by 
                subsection (b)(6)(B)(iii), including the name 
                of each candidate whom an expenditure is 
                intended to support or oppose.
  (e) Political Committees.--
          (1) National and congressional political 
        committees.--The national committee of a political 
        party, any national congressional campaign committee of 
        a political party, and any subordinate committee of 
        either, shall report all receipts and disbursements 
        during the reporting period.
          (2) Other political committees to which section 323 
        applies.--In addition to any other reporting 
        requirements applicable under this Act, a political 
        committee (not described in paragraph (1)) to which 
        section 323(b)(1) applies shall report all receipts and 
        disbursements made for activities described in 
        paragraphs (2)(A) and (2)(B)(v) of section 323(b).
          (3) Itemization.--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 paragraphs (3)(A), (5), and 
        (6) of subsection (b).
          (4) Reporting periods.--Reports required to be filed 
        under this subsection shall be filed for the same time 
        periods required for political committees under 
        subsection (a).
    [(3)] (f) The Commission shall be responsible for 
expeditiously preparing indices which set forth, on a 
candidate-by-candidate basis, all independent expenditures 
separately, including those reported under subsection 
(b)(6)(B)(iii), made by or for each candidate, as reported 
under this subsection, and for periodically publishing such 
indices on a timely pre-election basis.
  (g) Disbursements of Persons Other Than Political Parties.--
          (1) In general.--A person, other than a political 
        committee of a political party or a person described in 
        section 501(d) of the Internal Revenue Code of 1986, 
        that makes an aggregate amount of disbursements in 
        excess of $50,000 during a calendar year for activities 
        described in paragraph (2) shall file a statement with 
        the Commission--
                  (A) on a monthly basis as described in 
                subsection (a)(4)(B); or
                  (B) in the case of disbursements that are 
                made within 20 days of an election, within 24 
                hours after the disbursements are made.
          (2) Activity.--The activity described in this 
        paragraph is--
                  (A) Federal election activity;
                  (B) an activity described in section 
                316(b)(2)(A) that expresses support for or 
                opposition to a candidate for Federal office or 
                a political party; and
                  (C) an activity described in subparagraph (B) 
                or (C) of section 316(b)(2).
          (3) Applicability.--This subsection does not apply 
        to--
                  (A) a candidate or a candidate's authorized 
                committees; or
                  (B) an independent expenditure.
          (4) Contents.--A statement under this section shall 
        contain such information about the disbursements made 
        during the reporting period as the Commission shall 
        prescribe, including--
                  (A) the aggregate amount of disbursements 
                made;
                  (B) the name and address of the person or 
                entity to whom a disbursement is made in an 
                aggregate amount in excess of $200;
                  (C) the date made, amount, and purpose of the 
                disbursement; and
                  (D) if applicable, whether the disbursement 
                was in support of, or in opposition to, a 
                candidate or a political party, and the name of 
                the candidate or the political party.

           *       *       *       *       *       *       *


                              enforcement

    Sec. 309. (a)(1) * * *
    (2) If the Commission, upon receiving a complaint under 
paragraph (1) or on the basis of information ascertained in the 
normal course of carrying out its supervisory responsibilities, 
determines, by an affirmative vote of 4 of its members, that it 
has [reason to believe that] reason to investigate whether a 
person has committed, or is about to commit, a violation of 
this Act of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1954, the Commission shall, through its chairman or 
vice chairman, notify the person of the alleged violation. Such 
notification shall set forth the factual basis for such alleged 
violation. The Commission shall make an investigation of such 
alleged violation, which may include a field investigation or 
audit, in accordance with the provisions of this section.

           *       *       *       *       *       *       *

    (4)(A)(i) Except as provided in [clause (ii)] clauses (ii) 
and (iii), if the Commission determines, by an affirmative vote 
of 4 of its members, that there is probable cause to believe 
that any person has committed, or is about to commit, a 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954, the Commission shall attempt, 
for a period of at least 30 days, to correct or prevent such 
violation by informal methods of conference, conciliation, and 
persuasion, and to enter into a conciliation agreement with any 
person involved. Such attempt by the Commission to correct or 
prevent such violation may continue for a period of not more 
than 90 days. The Commission may not enter into a conciliation 
agreement under this clause except pursuant to an affirmative 
vote of 4 of its members. A conciliation agreement, unless 
violated, is a complete bar to any further action by the 
Commission, including the bringing of a civil proceeding under 
paragraph (6)(A).

           *       *       *       *       *       *       *

  (iii) If the Commission determines by an affirmative vote of 
4 of its members that there is probable cause to believe that a 
person has made a knowing and willful violation of section 
304(c), the Commission shall not enter into a conciliation 
agreement under this paragraph and may institute a civil action 
for relief under paragraph (6)(A).
    (5)(A) If the Commission believes that a violation of this 
Act or of chapter 95 or chapter 96 of the Internal Revenue Code 
of 1954 has been committed, a conciliation agreement entered 
into by the Commission under paragraph (4)(A) may include a 
requirement that the person involved in such conciliation 
agreement shall pay a civil penalty which does not exceed the 
greater of [$5,000] $10,000 or an amount equal to any 
contribution or expenditure involved in such violation[.], and 
may include equitable remedies or penalties, including 
disgorgement of funds to the Treasury or community service 
requirements (including requirements to participate in public 
education programs).
    (B) If the Commission believes that a knowing and willful 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954 has been committed, a 
conciliation agreement entered into by the Commission under 
paragraph (4)(A) may require that the person involved in such 
conciliation agreement shall pay a civil penalty which does not 
exceed the greater of [$10,000 or an amount equal to 200 
percent] $20,000 or an amount equal to 300 percent of any 
contribution or expenditure involved in such violation.
    [(C) If the Commission by an affirmative vote of 4 of its 
members, determined that there is probable cause to believe 
that a knowing and willful violation of this Act which is 
subject to subsection (d), or a knowing and willful violation 
of chapter 95 or chapter 96 of the Internal Revenue Code of 
1954, has occurred or is about to occur, it may refer such 
apparent violation to the Attorney General of the United States 
without regard to any limitations set forth in paragraph 
(4)(A).]
  (C) The Commission may at any time, by an affirmative vote of 
at least 4 of its members, refer a possible violation of this 
Act or chapter 95 or 96 of the Internal Revenue Code of 1986, 
to the Attorney General of the United States, without regard to 
any limitation set forth in this section.
    (D) In any case in which a person has entered into a 
conciliation agreement with the Commission under paragraph 
(4)(A), the Commission may institute a civil action for relief 
under paragraph (6)(A) if it believes that the person has 
violated any provision of such conciliation agreement. In any 
case in which a penalty or filing requirement imposed on a 
political committee or treasurer under paragraph (13) has not 
been satisfied, the Commission may institute a civil action for 
enforcement under paragraph (6)(A). For the Commission to 
obtain relief in any civil action, the Commission need only 
establish that the person has violated, in whole or in part, 
any requirement of such conciliation agreement or has failed to 
pay a penalty or meet a filing requirement imposed under 
paragraph (13).
    (6)(A) If the Commission is unable to correct or prevent 
any violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954, by the methods specified in 
paragraph (4)(A), the Commission may, upon an affirmative vote 
of 4 of its members, insitute a civil action for relief, 
including a permanent or temporary injunction, restraining 
order, or any other appropriate order (including an order for a 
civil penalty which does not exceed the greater of [$5,000] 
$10,000 or an amount equal to any contribution or expenditure 
involved in such violation) in the district court of the United 
States for the district in which the person against whom such 
action is brought is found, resides, or transacts business.
    (B) In any civil action instituted by the Commission under 
subparagraph (A) (except an action instituted in connection 
with a knowing and willful violation of section 304(c)), the 
court may grant a permanent or temporary injunction, 
restraining order, or other order, including a civil penalty 
which does not exceed the greater of [$5,000] $10,000 or an 
amount equal to any contribution or expenditure involved in 
such violation, upon a proper showing that the person involved 
has committed, or is about to commit (if the relief sought is a 
permanent or temporary injunction or a restraining order), a 
violation of this Act or chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954.
    (C) In any civil action for relief instituted by the 
Commission under subparagraph (A), if the court determines that 
the Commission has established that the person involved in such 
civil action has committed a knowing and willful violation of 
this Act or of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1954, the court may impose a civil penalty which does 
not exceed the greater of [$10,000 or an amount equal to 200 
percent] $20,000 or an amount equal to 300 percent of any 
contribution or expenditure involved in such violation.

           *       *       *       *       *       *       *

  (10) For purposes of determining the amount of a civil 
penalty imposed under this subsection for violations of section 
326, the amount of the donation involved shall be treated as 
the amount of the contribution involved.

           *       *       *       *       *       *       *

  (13) Penalty for Late Filing.--
          (A) In general.--
                  (i) Monetary penalties.--The Commission shall 
                establish a schedule of mandatory monetary 
                penalties that shall be imposed by the 
                Commission for failure to meet a time 
                requirement for filing under section 304.
                  (ii) Required filing.--In addition to 
                imposing a penalty, the Commission may require 
                a report that has not been filed within the 
                time requirements of section 304 to be filed by 
                a specific date.
                  (iii) Procedure.--A penalty or filing 
                requirement imposed under this paragraph shall 
                not be subject to paragraph (1), (2), (3), (4), 
                (5), or (12).
          (B) Filing an exception.--
                  (i) Time to file.--A political committee 
                shall have 30 days after the imposition of a 
                penalty or filing requirement by the Commission 
                under this paragraph in which to file an 
                exception with the Commission.
                  (ii) Time for commission to rule.--Within 30 
                days after receiving an exception, the 
                Commission shall make a determination that is a 
                final agency action subject to exclusive review 
                by the United States Court of Appeals for the 
                District of Columbia Circuit under section 706 
                of title 5, United States Code, upon petition 
                filed in that court by the political committee 
                or treasurer that is the subject of the agency 
                action, if the petition is filed within 30 days 
                after the date of the Commission action for 
                which review is sought.
  (14)(A) If the complaint in a proceeding was filed within 60 
days preceding the date of 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 the 
Commission, that there is clear and convincing evidence that a 
violation of this Act has occurred, is occurring, or is about 
to occur, the Commission may 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.
  (C) If the Commission determines, on the basis of facts 
alleged in the complaint and other facts available to the 
Commission, 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.

           *       *       *       *       *       *       *

  (d) Notwithstanding any other provision of this section, if a 
candidate (or the candidate's authorized committee) believes 
that a violation described in paragraph (2) has been committed 
with respect to an election during the 90-day period preceding 
the date of the election, the candidate or committee may 
institute a civil action on behalf of the Commission for relief 
(including injunctive relief) against the alleged violator in 
the same manner and under the same terms and conditions as an 
action instituted by the Commission under subsection (a)(6), 
except that the court involved shall issue a decision regarding 
the action as soon as practicable after the action is 
instituted and to the greatest extent possible issue the 
decision prior to the date of the election involved.
  (2) A violation described in this paragraph is a violation of 
this Act or of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1986 relating to--
          (A) whether a contribution is in excess of an 
        applicable limit or is otherwise prohibited under this 
        Act; or
          (B) whether an expenditure is an independent 
        expenditure under section 301(17).
    [(d)] (e)(1)(A) [Any person] Except as provided in 
subparagraph (D), any person who knowingly and willfully 
commits a violation of any provision of this Act which involves 
the making, receiving, or reporting of any contribution or 
expenditure aggregating $2,000 or more during a calendar year 
[shall be fined, or imprisoned for not more than one year, or 
both] shall be imprisoned for not fewer than 1 year and not 
more than 10 years. [The amount of this fine shall not exceed 
the greater of $25,000 or 300 percent of any contribution or 
expenditure involved in such violation.]

           *       *       *       *       *       *       *

  (D) In the case of a knowing and willful violation of section 
304(c) that involves the reporting of an independent 
expenditure, the violation shall not be subject to this 
subsection.

           *       *       *       *       *       *       *

  (4) In addition to the authority to bring cases referred 
pursuant to subsection (a)(5), the Attorney General may at any 
time bring a criminal action for a violation of this Act or of 
chapter 95 or chapter 96 of the Internal Revenue Code of 1986.
  (e) Any conciliation agreement, civil action, or criminal 
action entered into or instituted under this section may 
require a person to forfeit to the Treasury any contribution, 
donation, or expenditure that is the subject of the agreement 
or action for transfer to the Commission for deposit in 
accordance with section 326.

           *       *       *       *       *       *       *


                       administrative provisions

    Sec. 311. (a) * * *
    (b) * * *
          (1) In general.--The Commission may conduct audits 
        and field investigations of any political committee 
        required to file a report under section 304 of this 
        Act. All audits and field investigations concerning the 
        verification for, and receipt and use of, any payments 
        received by a candidate or committee under chapter 95 
        or chapter 96 of the Internal Revenue Code of 1954 
        shall be given priority. Prior to conducting any audit 
        under this subsection, the Commission shall perform an 
        internal review of reports filed by selected committees 
        to determine if the reports filed by a particular 
        committee meet the threshold requirements for 
        substantial compliance with the Act. Such thresholds 
        for compliance shall be established by the Commission. 
        The Commission may, upon an affirmative vote of 4 of 
        its members, conduct an audit and field investigation 
        of any committee which does not meet the threshold 
        requirements established by the Commission. Such audit 
        shall be commenced within 30 days of such vote, except 
        that any audit of an authorized committee of a 
        candidate, under the provisions of this subsection, 
        shall be commenced within [6] 12 months of the election 
        for which such committee is authorized.
          (2) Random audits.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the Commission may conduct random audits 
                and investigations to ensure voluntary 
                compliance with this Act. The selection of any 
                candidate for a random audit or investigation 
                shall be based on criteria adopted by a vote of 
                at least four members of the Commission.
                  (B) Limitation.--The Commission shall not 
                conduct an audit or investigation of a 
                candidate's authorized committee under 
                subparagraph (A) until the candidate is no 
                longer a candidate for the office sought by the 
                candidate in an election cycle.
                  (C) Applicability.--This paragraph does not 
                apply to an authorized committee of a candidate 
                for President or Vice President subject to 
                audit under section 9007 or 9038 of the 
                Internal Revenue Code of 1986.

           *       *       *       *       *       *       *


            [use of contributed amounts for certain purposes

    [Sec. 313. Amounts received by a candidate as contributions 
that are in excess of any amount necessary to defray his 
expenditures, and any other amounts contributed to an 
individual for the purpose of supporting his or her activities 
as a holder of Federal office, may be used by such candidate or 
individual, as the case may be, to defray any ordinary and 
necessary expenses incurred in connection with his or her 
duties as a holder of Federal office, may be contributed to any 
organization described in section 170(c) of the Internal 
Revenue Code of 1954, or may be used for any other lawful 
purpose, including transfers without limitation to any 
national, State, or local committee of any political party; 
except that, with respect to any individual who is not a 
Senator or Representative in, or Delegate or Resident 
Commissioner to, the Congress on the date of the enactment of 
the Federal Election Campaign Act Amendments of 1979, no such 
amounts may be converted by any person to any personal use, 
other than to defray any ordinary and necessary expenses 
incurred in connection with his or her duties as a holder of 
Federal office.]


            use of contributed amounts for certain purposes


  Sec. 313. (a) Permitted Uses.--A contribution accepted by a 
candidate, and any other amount received by an individual as 
support for activities of the individual as a holder of Federal 
office, may be used by the candidate or individual--
          (1) for expenditures in connection with the campaign 
        for Federal office of the candidate or individual;
          (2) for ordinary and necessary expenses incurred in 
        connection with duties of the individual as a holder of 
        Federal office;
          (3) for contributions to an organization described in 
        section 170(c) of the Internal Revenue Code of 1986; or
          (4) for transfers to a national, State, or local 
        committee of a political party.
  (b) Prohibited Use.--
          (1) In general.--A contribution or amount described 
        in subsection (a) shall not be converted by any person 
        to personal use.
          (2) Conversion.--For the purposes of paragraph (1), a 
        contribution or amount shall be considered to be 
        converted to personal use if the contribution or amount 
        is used to fulfill any commitment, obligation, or 
        expense of a person that would exist irrespective of 
        the candidate's election campaign or individual's 
        duties as a holder of Federal officeholder, including--
                  (A) a home mortgage, rent, or utility 
                payment;
                  (B) a clothing purchase;
                  (C) a noncampaign-related automobile expense;
                  (D) a country club membership;
                  (E) a vacation or other noncampaign-related 
                trip;
                  (F) a household food item;
                  (G) a tuition payment;
                  (H) admission to a sporting event, concert, 
                theater, or other form of entertainment not 
                associated with an election campaign; and
                  (I) dues, fees, and other payments to a 
                health club or recreational facility.

           *       *       *       *       *       *       *


             limitations on contributions and expenditures

    Sec. 315. (a)(1) No person shall make contributions--
          (A) to any candidate and his authorized political 
        committees with respect to any election for Federal 
        office which, in the aggregate, exceed $1,000;
          (B) to the political committees established and 
        maintained by a national political party, which are not 
        the authorized political committees of any candidate, 
        in any calendar year which, in the aggregate, exceed 
        $20,000; [or]
          (C) to any other political committee (other than a 
        committee described in subparagraph (D)) in any 
        calendar year which, in the aggregate, exceed 
        $5,000[.]; or
          (D) to a political committee established and 
        maintained by a State committee of a political party in 
        any calendar year that, in the aggregate, exceed 
        $10,000.

           *       *       *       *       *       *       *

    (3) No individual shall make contributions aggregating more 
than [$25,000] $30,000 in any calendar year. For purposes of 
this paragraph, any contribution made to a candidate in a year 
other than the calendar year in which the election is held with 
respect to which such contribution is made, is considered to be 
made during the calendar year in which such election is held.

           *       *       *       *       *       *       *

    (7) For purposes of this subsection--
          (A) contributions to a named candidate made to any 
        political committee authorized by such candidate to 
        accept contributions on his behalf shall be considered 
        to be contributions made to such candidate;
          [(B)(i) expenditures made by any person in 
        cooperation, consultation, or concert, with, or at the 
        request or suggestion of, a candidate, his authorized 
        political committees, or their agents shall be 
        considered to be a contribution to such candidate;
          [(ii) the financing by any person of the 
        dissemination, distribution, or republication, in whole 
        or in part, of any broadcast or any written, graphic, 
        or other form of campaign materials prepared by the 
        candidate, his campaign committees, or their authorized 
        agents shall be considered to be an expenditure for 
        purposes of this paragraph; and]
          (B) a coordinated activity, as described in section 
        301(8)(C), shall be considered to be a contribution to 
        the candidate, and in the case of a limitation on 
        expenditures, shall be treated as an expenditure by the 
        candidate.

           *       *       *       *       *       *       *

    (d)(1) Notwithstanding any other provision of law with 
respect to limitations on expenditures or limitations on 
contributions, the national committee of a political party and 
a State committee of a political party, including any 
subordinate committee of a State committee, may make 
expenditures in connection with the general election campaign 
of candidates for Federal office, subject to the limitations 
contained in paragraphs (2) [and (3)], (3), and (4) of this 
subsection.

           *       *       *       *       *       *       *

  (4) Independent Versus Coordinated Expenditures by Party.--
          (A) In general.--On or after the date on which a 
        political party nominates a candidate, a committee of 
        the political party shall not make both expenditures 
        under this subsection and independent expenditures (as 
        defined in section 301(17)) with respect to the 
        candidate during the election cycle.
          (B) Certification.--Before making a coordinated 
        expenditure under this subsection with respect to a 
        candidate, a committee of a political party shall file 
        with the Commission a certification, signed by the 
        treasurer of the committee, that the committee has not 
        and shall not make any independent expenditure with 
        respect to the candidate during the same election 
        cycle.
          (C) Application.--For the purposes of this paragraph, 
        all political committees established and maintained by 
        a national political party (including all congressional 
        campaign committees) and all political committees 
        established and maintained by a State political party 
        (including any subordinate committee of a State 
        committee) shall be considered to be a single political 
        committee.
          (D) Transfers.--A committee of a political party that 
        submits a certification under subparagraph (B) with 
        respect to a candidate shall not, during an election 
        cycle, transfer any funds to, assign authority to make 
        coordinated expenditures under this subsection to, or 
        receive a transfer of funds from, a committee of the 
        political party that has made or intends to make an 
        independent expenditure with respect to the candidate.
  (5) This subsection does not apply to expenditures made in 
connection with the general election campaign of a candidate 
for Senator or Representative in or Delegate or Resident 
Commissioner to the Congress who is not an eligible 
Congressional candidate (as defined in section 324(a)).

           *       *       *       *       *       *       *


contributions or expenditures by national banks, corporations, or labor 
                             organizations

    Sec. 316. (a) * * *
    (b)(1) * * *
    (2) For purposes of this section and section 12(h) of the 
Public Utility Holding Company Act (15 U.S.C. 79l(h)), the term 
``contribution or expenditure'' [shall include] includes a 
contribution or expenditure, as those terms are defined in 
section 301, and also includes any direct or indirect payment, 
distribution, loan, advance, deposit, or gift of money, or any 
services, or anything of value (except a loan of money by a 
national or State bank made in accordance with the applicable 
banking laws and regulations and in the ordinary course of 
business) to any candidate, campaign committee, or political 
party or organization, in connection with any election to any 
of the offices referred to in this section, but shall not 
include (A) communications by a corporation to its stockholders 
and executive or administrative personnel and their families or 
by a labor organization to its members and their families on 
any subject; (B) nonpartisan registration and get-out-the-vote 
campaigns by a corporation aimed at its stockholders and 
executive or administrative personnel and their families, or by 
a labor organization aimed at its members and their families; 
and (C) the establishment, administration, and solicitation of 
contributions to a separate segregated fund to be utilized for 
political purposes by a corporation, labor organization, 
membership organization, cooperative, or corporation without 
capital stock.

           *       *       *       *       *       *       *


      publication and distribution of statements and solicitations

    Sec. 318. (a) [Whenever] Whenever a political committee 
makes a disbursement for the purpose of financing any 
communication through any broadcasting station, newspaper, 
magazine, outdoor advertising facility, mailing, or any other 
type of general public political advertising, or whenever any 
person makes [an expenditure] a disbursement for the purpose of 
financing communications expressly advocating the election or 
defeat of a clearly identified candidate, or solicits any 
contribution through any broadcasting station, newspaper, 
magazine, outdoor advertising facility, [direct] mailing, or 
any other type of general public political advertising, such 
communication--
          (1) * * *

           *       *       *       *       *       *       *

          (3) if not authorized by a candidate, an authorized 
        political committee of a candidate, or its agents, 
        shall clearly state the name and permanent street 
        address of the person who paid for the communication 
        and state that the communication is not authorized by 
        any candidate or candidate's committee.

           *       *       *       *       *       *       *

  (c) Any printed communication described in subsection (a) 
shall--
          (1) be of sufficient type size to be clearly readable 
        by the recipient of the communication;
          (2) be contained in a printed box set apart from the 
        other contents of the communication; and
          (3) be printed with a reasonable degree of color 
        contrast between the background and the printed 
        statement.
  (d)(1) Any communication described in paragraphs (1) or (2) 
of subsection (a) which is transmitted through radio or 
television shall include, in addition to the requirements of 
that paragraph, an audio statement by the candidate that 
identifies the candidate and states that the candidate has 
approved the communication.
  (2) If a communication described in paragraph (1) is 
transmitted through television, the communication shall 
include, in addition to the audio statement under paragraph 
(1), a written statement that--
          (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 communication described in paragraph (3) of 
subsection (a) which is transmitted through radio or television 
shall include, in addition to the requirements of that 
paragraph, 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 transmitted through 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.

                  [contributions by foreign nationals]


            contributions and donations by foreign nationals


    Sec. 319. [(a) It shall be unlawful for a foreign national 
directly or through any other person to make any contribution 
of money or other thing of value, or to promise expressly or 
impliedly to make any such contribution, in connection with an 
election to any political office or in connection with any 
primary election, convention, or caucus held to select 
candidates for any political office; or for any person to 
solicit, accept, or receive any such contribution from a 
foreign national.]
  (a) Prohibition.--It shall be unlawful for--
          (1) a foreign national, directly or indirectly, to 
        make--
                  (A) a donation of money or other thing of 
                value, or to promise expressly or impliedly to 
                make a donation, in connection with a Federal, 
                State, or local election, or
                  (B) a contribution or donation to a committee 
                of a political party; or
          (2) a person to solicit, accept, or receive such a 
        contribution or donation from a foreign national.
  (b) Prohibiting Use of Willful Blindness Defense.--It shall 
not be a defense to a violation of subsection (a) that the 
defendant did not know that the contribution originated from a 
foreign national if the defendant should have known that the 
contribution originated from a foreign national, except that 
the trier of fact may not find that the defendant should have 
known that the contribution originated from a foreign national 
solely because of the name of the contributor.
  (c) Penalty.--
          (1) In general.--Except as provided in paragraph (2), 
        notwithstanding any other provision of this title any 
        person who violates subsection (a) shall be sentenced 
        to a term of imprisonment which may not be more than 10 
        years, fined in an amount not to exceed $1,000,000, or 
        both.
          (2) Exception.--Paragraph (1) shall not apply with 
        respect to any violation of subsection (a) arising from 
        a contribution or donation made by an individual who is 
        lawfully admitted for permanent residence (as defined 
        in section 101(a)(22) of the Immigration and 
        Nationality Act).
    [(b)] (d) As used in this section, the term ``foreign 
national'' means--
          (1) a foreign principal, as such term is defined by 
        section 1(b) of the Foreign Agents Registration Act of 
        1938 (22 U.S.C. 611(b)), except that the term ``foreign 
        national'' shall not include any individual who is a 
        citizen of the United States; or
          (2) an individual who is not a citizen of the United 
        States and who is not lawfully admitted for permanent 
        residence, as defined by section 101(a)(20) of the 
        Immigration and Nationality Act (8 U.S.C. 1101(a)(20)).

           *       *       *       *       *       *       *


           fraudulent misrepresentation of campaign authority

    Sec. 322. (a) No person who is a candidate for Federal 
office or an employee or agent of such a candidate shall--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Solicitation of Contributions.--No person shall solicit 
contributions by falsely representing himself or herself as a 
candidate or as a representative of a candidate, a political 
committee, or a political party.

           *       *       *       *       *       *       *



                    soft money of political parties


  Sec. 323. (a) National Committees.--
          (1) In general.--A national committee of a political 
        party (including a national congressional campaign 
        committee of a political party) and any officers or 
        agents of such party committees, shall not solicit, 
        receive, or direct to another person a contribution, 
        donation, or transfer of funds, or spend any funds, 
        that are not subject to the limitations, prohibitions, 
        and reporting requirements of this Act.
          (2) Applicability.--This subsection shall apply to an 
        entity that is directly or indirectly established, 
        financed, maintained, or controlled by a national 
        committee of a political party (including a national 
        congressional campaign committee of a political party), 
        or an entity acting on behalf of a national committee, 
        and an officer or agent acting on behalf of any such 
        committee or entity.
  (b) State, District, and Local Committees.--
          (1) In general.--An amount that is expended or 
        disbursed by a State, district, or local committee of a 
        political party (including an entity that is directly 
        or indirectly established, financed, maintained, or 
        controlled by a State, district, or local committee of 
        a political party and an officer or agent acting on 
        behalf of such committee or entity) for Federal 
        election activity shall be made from funds subject to 
        the limitations, prohibitions, and reporting 
        requirements of this Act.
          (2) Federal election activity.--
                  (A) In general.--The term ``Federal election 
                activity'' means--
                          (i) voter registration activity 
                        during the period that begins on the 
                        date that is 120 days before the date a 
                        regularly scheduled Federal election is 
                        held and ends on the date of the 
                        election;
                          (ii) voter identification, get-out-
                        the-vote activity, or generic campaign 
                        activity conducted in connection with 
                        an election in which a candidate for 
                        Federal office appears on the ballot 
                        (regardless of whether a candidate for 
                        State or local office also appears on 
                        the ballot); and
                          (iii) a communication that refers to 
                        a clearly identified candidate for 
                        Federal office (regardless of whether a 
                        candidate for State or local office is 
                        also mentioned or identified) and is 
                        made for the purpose of influencing a 
                        Federal election (regardless of whether 
                        the communication is express advocacy).
                  (B) Excluded activity.--The term ``Federal 
                election activity'' does not include an amount 
                expended or disbursed by a State, district, or 
                local committee of a political party for--
                          (i) campaign activity conducted 
                        solely on behalf of a clearly 
                        identified candidate for State or local 
                        office, provided the campaign activity 
                        is not a Federal election activity 
                        described in subparagraph (A);
                          (ii) a contribution to a candidate 
                        for State or local office, provided the 
                        contribution is not designated or used 
                        to pay for a Federal election activity 
                        described in subparagraph (A);
                          (iii) the costs of a State, district, 
                        or local political convention;
                          (iv) the costs of grassroots campaign 
                        materials, including buttons, bumper 
                        stickers, and yard signs, that name or 
                        depict only a candidate for State or 
                        local office;
                          (v) 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 an individual who spends 
                        more than 20 percent of the 
                        individual's time on Federal election 
                        activity) as determined by a regulation 
                        promulgated by the Commission to 
                        determine the non-Federal share of a 
                        State, district, or local party 
                        committee's administrative and overhead 
                        expenses; and
                          (vi) the cost of constructing or 
                        purchasing an office facility or 
                        equipment for a State, district or 
                        local committee.
  (c) Fundraising Costs.--An amount spent by a national, State, 
district, or local committee of a political party, by an entity 
that is established, financed, maintained, or controlled by a 
national, State, district, or local committee of a political 
party, or by an agent or officer of any such committee or 
entity, to raise funds that are used, in whole or in part, to 
pay the costs of a Federal election activity shall be made from 
funds subject to the limitations, prohibitions, and reporting 
requirements of this Act.
  (d) Tax-Exempt Organizations.--A national, State, district, 
or local committee of a political party (including a national 
congressional campaign committee of a political party), an 
entity that is directly or indirectly established, financed, 
maintained, or controlled by any such national, State, 
district, or local committee or its agent, and an officer or 
agent acting on behalf of any such party committee or entity, 
shall not solicit any funds for, or make or direct any 
donations to, an organization that is described in section 
501(c) of the Internal Revenue Code of 1986 and exempt from 
taxation under section 501(a) of such Code (or has submitted an 
application to the Commissioner of the Internal Revenue Service 
for determination of tax-exemption under such section).
  (e) Candidates.--
          (1) In general.--A candidate, individual holding 
        Federal office, agent of a candidate or individual 
        holding Federal office, or an entity directly or 
        indirectly established, financed, maintained or 
        controlled by or acting on behalf of one or more 
        candidates or individuals holding Federal office, shall 
        not--
                  (A) solicit, receive, direct, transfer, or 
                spend funds in connection with an election for 
                Federal office, including funds for any Federal 
                election activity, unless the funds are subject 
                to the limitations, prohibitions, and reporting 
                requirements of this Act; or
                  (B) solicit, receive, direct, transfer, or 
                spend funds in connection with any election 
                other than an election for Federal office or 
                disburse funds in connection with such an 
                election unless the funds--
                          (i) are not in excess of the amounts 
                        permitted with respect to contributions 
                        to candidates and political committees 
                        under paragraphs (1) and (2) of section 
                        315(a); and
                          (ii) are not from sources prohibited 
                        by this Act from making contributions 
                        with respect to an election for Federal 
                        office.
          (2) State law.--Paragraph (1) does not apply to the 
        solicitation, receipt, or spending of funds by an 
        individual who is a candidate for a State or local 
        office in connection with such election for State or 
        local office if the solicitation, receipt, or spending 
        of funds is permitted under State law for any activity 
        other than a Federal election activity.
          (3) Fundraising events.--Notwithstanding paragraph 
        (1), a candidate may attend, speak, or be a featured 
        guest at a fundraising event for a State, district, or 
        local committee of a political party.''.


               voluntary personal funds expenditure limit


  Sec. 324. (a) Eligible Congressional Candidate.--
          (1) Primary election.--
                  (A) Declaration.--A candidate for election 
                for Senator or Representative in or Delegate or 
                Resident Commissioner to the Congress is an 
                eligible primary election Congressional 
                candidate if the candidate files with the 
                Commission a declaration that the candidate and 
                the candidate's authorized committees will not 
                make expenditures in excess of the personal 
                funds expenditure limit.
                  (B) Time to file.--The declaration under 
                subparagraph (A) shall be filed not later than 
                the date on which the candidate files with the 
                appropriate State officer as a candidate for 
                the primary election.
          (2) General election.--
                  (A) Declaration.--A candidate for election 
                for Senator or Representative in or Delegate or 
                Resident Commissioner to the Congress is an 
                eligible general election Congressional 
                candidate if the candidate files with the 
                Commission--
                          (i) a declaration under penalty of 
                        perjury, with supporting documentation 
                        as required by the Commission, that the 
                        candidate and the candidate's 
                        authorized committees did not exceed 
                        the personal funds expenditure limit in 
                        connection with the primary election; 
                        and
                          (ii) a declaration that the candidate 
                        and the candidate's authorized 
                        committees will not make expenditures 
                        in excess of the personal funds 
                        expenditure limit.
                  (B) Time to file.--The declaration under 
                subparagraph (A) shall be filed not later than 
                7 days after the earlier of--
                          (i) the date on which the candidate 
                        qualifies for the general election 
                        ballot under State law; or
                          (ii) if under State law, a primary or 
                        run-off election to qualify for the 
                        general election ballot occurs after 
                        September 1, the date on which the 
                        candidate wins the primary or runoff 
                        election.
  (b) Personal Funds Expenditure Limit.--
          (1) In general.--The aggregate amount of expenditures 
        that may be made in connection with an election by an 
        eligible Congressional candidate or the candidate's 
        authorized committees from the sources described in 
        paragraph (2) shall not exceed $50,000.
          (2) Sources.--A source is described in this paragraph 
        if the source is--
                  (A) personal funds of the candidate and 
                members of the candidate's immediate family; or
                  (B) proceeds of indebtedness incurred by the 
                candidate or a member of the candidate's 
                immediate family.
  (c) Certification by the Commission.--
          (1) In general.--The Commission shall determine 
        whether a candidate has met the requirements of this 
        section and, based on the determination, issue a 
        certification stating whether the candidate is an 
        eligible Congressional candidate.
          (2) Time for certification.--Not later than 7 
        business days after a candidate files a declaration 
        under paragraph (1) or (2) of subsection (a), the 
        Commission shall certify whether the candidate is an 
        eligible Congressional candidate.
          (3) Revocation.--The Commission shall revoke a 
        certification under paragraph (1), based on information 
        submitted in such form and manner as the Commission may 
        require or on information that comes to the Commission 
        by other means, if the Commission determines that a 
        candidate violates the personal funds expenditure 
        limit.
          (4) Determinations by commission.--A determination 
        made by the Commission under this subsection shall be 
        final, except to the extent that the determination is 
        subject to examination and audit by the Commission and 
        to judicial review.
  (d) Penalty.--If the Commission revokes the certification of 
an eligible Congressional candidate--
          (1) the Commission shall notify the candidate of the 
        revocation; and
          (2) the candidate and a candidate's authorized 
        committees shall pay to the Commission an amount equal 
        to the amount of expenditures made by a national 
        committee of a political party or a State committee of 
        a political party in connection with the general 
        election campaign of the candidate under section 
        315(d).


                 prohibition of contributions by minors


  Sec. 325. An individual who is 17 years old or younger shall 
not make a contribution to a candidate or a contribution or 
donation to a committee of a political party.


  protecting equal participation of eligible voters in campaigns and 
                               elections


  Sec. 326. (a) In General.--Nothing in this Act may be 
construed to prohibit any individual eligible to vote in an 
election for Federal office from making contributions or 
expenditures in support of a candidate for such an election 
(including voluntary contributions or expenditures made through 
a separate segregated fund established by the individual's 
employer or labor organization) or otherwise participating in 
any campaign for such an election in the same manner and to the 
same extent as any other individual eligible to vote in an 
election for such office.
  (b) No Effect on Geographic Restrictions on Contributions.--
Subsection (a) may not be construed to affect any restriction 
under this title regarding the portion of contributions 
accepted by a candidate from persons residing in a particular 
geographic area.


  treatment of certain contributions and donations to be returned to 
                                 donors


  Sec. 327. (a) Transfer to Commission.--
          (1) In general.--Notwithstanding any other provision 
        of this Act, if a political committee intends to return 
        any contribution or donation given to the political 
        committee, the committee shall transfer the 
        contribution or donation to the Commission if--
                  (A) the contribution or donation is in an 
                amount equal to or greater than $500 (other 
                than a contribution or donation returned within 
                60 days of receipt by the committee); or
                  (B) the contribution or donation was made in 
                violation of section 315, 316, 317, 319, 320, 
                or 325 (other than a contribution or donation 
                returned within 30 days of receipt by the 
                committee).
          (2) Information included with transferred 
        contribution or donation.--A political committee shall 
        include with any contribution or donation transferred 
        under paragraph (1)--
                  (A) a request that the Commission return the 
                contribution or donation to the person making 
                the contribution or donation; and
                  (B) information regarding the circumstances 
                surrounding the making of the contribution or 
                donation and any opinion of the political 
                committee concerning whether the contribution 
                or donation may have been made in violation of 
                this Act.
          (3) Establishment of escrow account.--
                  (A) In general.--The Commission shall 
                establish a single interest-bearing escrow 
                account for deposit of amounts transferred 
                under paragraph (1).
                  (B) Disposition of amounts received.--On 
                receiving an amount from a political committee 
                under paragraph (1), the Commission shall--
                          (i) deposit the amount in the escrow 
                        account established under subparagraph 
                        (A); and
                          (ii) notify the Attorney General and 
                        the Commissioner of the Internal 
                        Revenue Service of the receipt of the 
                        amount from the political committee.
                  (C) Use of interest.--Interest earned on 
                amounts in the escrow account established under 
                subparagraph (A) shall be applied or used for 
                the same purposes as the donation or 
                contribution on which it is earned.
          (4) Treatment of returned contribution or donation as 
        a complaint.--The transfer of any contribution or 
        donation to the Commission under this section shall be 
        treated as the filing of a complaint under section 
        309(a).
  (b) Use of Amounts Placed in Escrow To Cover Fines and 
Penalties.--The Commission or the Attorney General may require 
any amount deposited in the escrow account under subsection 
(a)(3) to be applied toward the payment of any fine or penalty 
imposed under this Act or title 18, United States Code, against 
the person making the contribution or donation.
  (c) Return of Contribution or Donation After Deposit in 
Escrow.--
          (1) In general.--The Commission shall return a 
        contribution or donation deposited in the escrow 
        account under subsection (a)(3) to the person making 
        the contribution or donation if--
                  (A) within 180 days after the date the 
                contribution or donation is transferred, the 
                Commission has not made a determination under 
                section 309(a)(2) that the Commission has 
                reason to investigate whether that the making 
                of the contribution or donation was made in 
                violation of this Act; or
                  (B)(i) the contribution or donation will not 
                be used to cover fines, penalties, or costs 
                pursuant to subsection (b); or
                  (ii) if the contribution or donation will be 
                used for those purposes, that the amounts 
                required for those purposes have been withdrawn 
                from the escrow account and subtracted from the 
                returnable contribution or donation.
          (2) No effect on status of investigation.--The return 
        of a contribution or donation by the Commission under 
        this subsection shall not be construed as having an 
        effect on the status of an investigation by the 
        Commission or the Attorney General of the contribution 
        or donation or the circumstances surrounding the 
        contribution or donation, or on the ability of the 
        Commission or the Attorney General to take future 
        actions with respect to the contribution or donation.


    reimbursement by political parties for use of air force one for 
                         political fundraising


  Sec. 328. (a) In General.--If the President, Vice President, 
or the head of any executive department (as defined in section 
101 of title 5, United States Code) uses Air Force One for 
transportation for any travel which includes a fundraising 
event for the benefit of any political committee of a national 
political party, such political committee shall reimburse the 
Federal Government for the fair market value of the 
transportation of the individual involved, based on the cost of 
an equivalent commercial chartered flight.
  (b) Air Force One Defined.--In subsection (a), the term ``Air 
Force One'' means the airplane operated by the Air Force which 
has been specially configured to carry out the mission of 
transporting the President.


      prohibiting use of currency to promote election day turnout


  Sec. 329. It shall be unlawful for any political committee to 
provide currency to any individual (directly or through an 
agent of the committee) for purposes of encouraging the 
individual to appear at the polling place for the election.
                              ----------                              


             SECTION 8 OF THE NATIONAL LABOR RELATIONS ACT

  Sec. 8. (a) * * *

           *       *       *       *       *       *       *

  (h) Nonunion Member Payments to Labor Organization.--
          (1) In general.--It shall be an unfair labor practice 
        for any labor organization which receives a payment 
        from an employee pursuant to an agreement that requires 
        employees who are not members of the organization to 
        make payments to such organization in lieu of 
        organization dues or fees not to establish and 
        implement the objection procedure described in 
        paragraph (2).
          (2) Objection procedure.--The objection procedure 
        required under paragraph (1) shall meet the following 
        requirements:
                  (A) The labor organization shall annually 
                provide to employees who are covered by such 
                agreement but are not members of the 
                organization--
                          (i) reasonable personal notice of the 
                        objection procedure, a list of the 
                        employees eligible to invoke the 
                        procedure, and the time, place, and 
                        manner for filing an objection; and
                          (ii) reasonable opportunity to file 
                        an objection to paying for organization 
                        expenditures supporting political 
                        activities unrelated to collective 
                        bargaining, including but not limited 
                        to the opportunity to file such 
                        objection by mail.
                  (B) If an employee who is not a member of the 
                labor organization files an objection under the 
                procedure in subparagraph (A), such 
                organization shall--
                          (i) reduce the payments in lieu of 
                        organization dues or fees by such 
                        employee by an amount which reasonably 
                        reflects the ratio that the 
                        organization's expenditures supporting 
                        political activities unrelated to 
                        collective bargaining bears to such 
                        organization's total expenditures; and
                          (ii) provide such employee with a 
                        reasonable explanation of the 
                        organization's calculation of such 
                        reduction, including calculating the 
                        amount of organization expenditures 
                        supporting political activities 
                        unrelated to collective bargaining.
          (3) Definition.--In this subsection, the term 
        ``expenditures supporting political activities 
        unrelated to collective bargaining'' means expenditures 
        in connection with a Federal, State, or local election 
        or in connection with efforts to influence legislation 
        unrelated to collective bargaining.
                              ----------                              


              SECTION 3210 OF TITLE 39, UNITED STATES CODE

Sec. 3210. Franked mail transmitted by the Vice President, Members of 
                    Congress, and congressional officials

  (a)(1) * * *

           *       *       *       *       *       *       *

  (6)[(A) It is the intent of Congress that a Member of, or 
Member-elect to, Congress may not mail any mass mailing as 
franked mail--
          [(i) if the mass mailing is postmarked fewer than 60 
        days (or, in the case of a Member of the House, fewer 
        than 90 days) immediately before the date of any 
        primary election or general election (whether regular, 
        special, or runoff) in which the Member is a candidate 
        for reelection; or
          [(ii) in the case of a Member of, or Member-elect to, 
        the House who is a candidate for any other public 
        office, if the mass mailing--
                  [(I) is prepared for delivery within any 
                portion of the jurisdiction of or the area 
                covered by the public office which is outside 
                the area constituting the congressional 
                district from which the Member or Member-elect 
                was elected; or
                  [(II) is postmarked fewer than 90 days 
                immediately before the date of any primary 
                election or general election (whether regular, 
                special, or runoff) in which the Member or 
                Member-elect is a candidate for any other 
                public office.]
                  (A) A Member of Congress shall not mail any 
                mass mailing as franked mail during the 180-day 
                period which ends on the date of the general 
                election for the office held by the Member or 
                during the 90-day period which ends on the date 
                of any primary election for that office, unless 
                the Member has made a public announcement that 
                the Member will not be a candidate for 
                reelection during that year or for election to 
                any other Federal office.

           *       *       *       *       *       *       *

                              ----------                              


                     TITLE 18, UNITED STATES CODE

           *       *       *       *       *       *       *



                             PART I--CRIMES

           *       *       *       *       *       *       *


         CHAPTER 11--BRIBERY, GRAFT, AND CONFLICTS OF INTEREST

Sec.
201. Bribery of public officials and witnesses.
     * * * * * * *
226. Acceptance or solicitation to obtain access to certain Federal 
          Government property.

           *       *       *       *       *       *       *


Sec. 226. Acceptance or solicitation to obtain access to certain 
                    Federal Government property

  Whoever solicits or receives anything of value in 
consideration of providing a person with access to Air Force 
One, Marine One, Air Force Two, Marine Two, the White House, or 
the Vice President's residence, shall be fined under this 
title, or imprisoned not more than one year, or both.

           *       *       *       *       *       *       *


             CHAPTER 29--ELECTIONS AND POLITICAL ACTIVITIES

Sec.
592. Troops at polls.
     * * * * * * *
611. Voting by aliens.
612. Prohibiting use of meals and accommodations at White House for 
          political fundraising.

           *       *       *       *       *       *       *


Sec. 607. Place of solicitation

  [(a) It shall be unlawful for any person to solicit or 
receive any contribution within the meaning of section 301(8) 
of the Federal Election Campaign Act of 1971 in any room or 
building occupied in the discharge of official duties by any 
person mentioned in section 603, or in any navy yard, fort, or 
arsenal. Any person who violates this section shall be fined 
under this title or imprisoned not more than three years, or 
both.]
  (a) Prohibition.--
          (1) In general.--It shall be unlawful for any person 
        to solicit or receive a donation of money or other 
        thing of value in connection with a Federal, State, or 
        local election from a person who is located in a room 
        or building occupied in the discharge of official 
        duties by an officer or employee of the United States. 
        An individual who is an officer or employee of the 
        Federal Government, including the President, Vice 
        President, and Members of Congress, shall not solicit a 
        donation of money or other thing of value in connection 
        with a Federal, State, or local election while in any 
        room or building occupied in the discharge of official 
        duties by an officer or employee of the United States, 
        from any person.
          (2) Penalty.--A person who violates this section 
        shall be fined not more than $5,000, imprisoned more 
        than 3 years, or both.
  (b) The prohibition in subsection (a) shall not apply to the 
receipt of contributions by persons on the staff of a Senator 
or Representative in, or Delegate or Resident Commissioner to, 
the Congress or Executive Office of the President, provided, 
that such contributions have not been solicited in any manner 
which directs the contributor to mail or deliver a contribution 
to any room, building, or other facility referred to in 
subsection (a), and provided that such contributions are 
transferred within seven days of receipt to a political 
committee within the meaning of section 302(e) of the Federal 
Election Campaign Act of 1971.

           *       *       *       *       *       *       *


Sec. 612. Prohibiting use of meals and accommodations at White House 
                    for political fundraising

  (a) It shall be unlawful for any person to provide or offer 
to provide any meals or accommodations at the White House in 
exchange for any money or other thing of value, or as a reward 
for the provision of any money or other thing of value, in 
support of any political party or the campaign for electoral 
office of any candidate.
  (b) Any person who violates this section shall be fined under 
this title or imprisoned not more than three years, or both.
  (c) For purposes of this section, any official residence or 
retreat of the President (including private residential areas 
and the grounds of such a residence or retreat) shall be 
treated as part of the White House.

           *       *       *       *       *       *       *

                              ----------                              


           SECTION 9003 OF THE INTERNAL REVENUE CODE OF 1986

SEC. 9003. CONDITION FOR ELIGIBILITY FOR PAYMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Illegal Solicitation of Soft Money.--No candidate for 
election to the office of President or Vice President may 
receive amounts from the Presidential Election Campaign Fund 
under this chapter or chapter 96 unless the candidate certifies 
that the candidate shall not solicit any funds for the purposes 
of influencing such election, including any funds used for an 
independent expenditure under the Federal Election Campaign Act 
of 1971, unless the funds are subject to the limitations, 
prohibitions, and reporting requirements of the Federal 
Election Campaign Act of 1971.
  (f) Ban on Coordination of Soft Money for Issue Advocacy.--
          (1) In general.--No candidate for election to the 
        office of President or Vice President who is certified 
        to receive amounts from the Presidential Election 
        Campaign Fund under this chapter or chapter 96 may 
        coordinate the expenditure of any funds for issue 
        advocacy with any political party unless the funds are 
        subject to the limitations, prohibitions, and reporting 
        requirements of the Federal Election Campaign Act of 
        1971.
          (2) Issue advocacy defined.--In this section, the 
        term ``issue advocacy'' means any activity carried out 
        for the purpose of influencing the consideration or 
        outcome of any Federal legislation or the issuance or 
        outcome of any Federal regulations, or educating 
        individuals about candidates for election for Federal 
        office or any Federal legislation, law, or regulations 
        (without regard to whether the activity is carried out 
        for the purpose of influencing any election for Federal 
        office).
  (g) Prohibiting Conspiracy to Violate Limits.--
          (1) Violation of limits described.--If a candidate 
        for election to the office of President or Vice 
        President who receives amounts from the Presidential 
        Election Campaign Fund under chapter 95 or 96 of the 
        Internal Revenue Code of 1986, or the agent of such a 
        candidate, seeks to avoid the spending limits 
        applicable to the candidate under such chapter or under 
        the Federal Election Campaign Act of 1971 by 
        soliciting, receiving, transferring, or directing funds 
        from any source other than such Fund for the direct or 
        indirect benefit of such candidate's campaign, such 
        candidate or agent shall be fined not more than 
        $1,000,000, or imprisoned for a term of not more than 3 
        years, or both.
          (2) Conspiracy to violate limits defined.--If two or 
        more persons conspire to violate paragraph (1), and one 
        or more of such persons do any act to effect the object 
        of the conspiracy, each shall be fined not more than 
        $1,000,000, or imprisoned for a term of not more than 3 
        years, or both.

           *       *       *       *       *       *       *


                       views of committee members

    Clause 3(a) of rule XIII requires each committee to afford 
a two day opportunity for members of the committee to file 
supplemental, minority, or additional views and to include the 
views in its report. The Committee on House Administration 
Minority members have submitted dissenting views.

                             MINORITY VIEWS

    The ``Bipartisan Campaign Finance Reform Act'' (H.R. 417) 
sponsored by Reps. Christopher Shays and Martin Meehan is a 
serious, comprehensive proposal that would address two of the 
most serious ills infecting American political campaigns today: 
unregulated soft money contributions and undisclosed issue 
advocacy. There simply is too much special-interest money from 
too few sources flowing into the party committees in the form 
of soft money, and onto the airwaves in the form of thinly 
disguised political advertisements paid for with unlimited 
dollars from unknown sources. Increased reliance on soft money 
contributions shows no signs of abating, and is of particular 
concern.
    While the Committee Majority chose to report the bill with 
an unfavorable recommendation, we believe that the Committee 
process was a tactic designed to delay bringing this bipartisan 
bill to the House floor for consideration. We note that Rep. 
Fattah offered the Chairman's FEC reform bill H.R. 2668 as an 
amendment to the Shays-Meehan bill during the Committee's 
consideration, which was opposed by the Committee Majority. 
While we believe that H.R. 2668 is an excellent complement to 
H.R. 419, we do not believe that the limited housekeeping 
reforms of H.R. 2668 approximate campaign finance reform. We 
support H.R. 417 and note that a nearly identical bill offered 
by Reps. Shays and Meehan overwhelmingly passed the House last 
year by a vote of 252 to 179. That vote took place only after a 
discharge petition prompted the House Republican leadership to 
permit a vote on this issue. A discharge petition was initiated 
again this year, but did not gain the necessary signatures to 
force a floor vote.

                               soft money

    H.R. 417 is the only bill reported by the Committee that 
contains a comprehensive ban on unregulated soft money. The 
very nature of so-called ``soft'' money--unlimited 
contributions from corporations and unions that otherwise are 
prohibited from making direct campaign contributions--
illustrates the problem. Soft money includes money from 
corporations and unions that is not supposed to be influencing 
federal elections at all. Yet, it has gradually come to be the 
dominant source of campaign dollars. The Shays-Meehan bill 
addresses public concerns over soft money by prohibiting soft 
money contributions to national political parties and 
curtailing soft money activities conducted by state and local 
parties.
    Soft money contributions to political parties exist solely 
because of a loophole opened by the Federal Election 
Commission. With each passing election cycle, soft money 
contributions to state and national parties have increased in 
volume until a trickle has turned into a torrent. Between 1994 
and 1996 alone, the total amount of soft money contributed to 
national parties increased from 101.6 million to 263.5 million. 
This increase has led to more direct and blatant attempts by 
contributors to purchase access and influence in the political 
process, and has drivenan ever-increasing dollars race between 
the party committees. In fact, the amounts of money sought and the 
increasingly constant appeals for soft dollars have led many leaders in 
the business world to join the call for reforming the soft money 
system.
    H.R. 417 would prohibit all soft money contributions to the 
national political parties from corporations, labor unions, and 
wealthy individuals. It would also halt backdoor soft money 
contributions to state parties, while at the same time 
recognizing the importance of the state parties and allowing 
larger ``hard'' dollar contributions. According to a letter 
circulated by the Brennan Center for Justice, and signed by 125 
constitutional scholars nationwide, the constitutionality of 
the comprehensive soft money ban in H.R. 417 is simply not in 
question. We support the comprehensive soft money ban that is 
contained only in H.R. 417, and not the competing campaign 
finance proposals.

                             issue advocacy

    The Shays-Meehan bill also would provide a reasonable 
solution to the problem of unlimited and undisclosed 
advertising that fails to qualify as ``express advocacy'' under 
federal election law, even though it clearly is designed to 
influence the outcome of an election. As the result of a series 
of court decisions since 1993, the term ``express advocacy'' 
currently refers only to those communications that include the 
so-called ``magic words,'' such as ``Vote for Candidate X'' or 
``Defeat Candidate Y.'' There are three consequences when 
advertising does not meet this express advocacy standard. 
First, it may be paid for with unlimited amounts of money from 
any source, including corporations or unions. Second, neither 
the amount spent nor the source of the funding need be 
disclosed to the public. And third, the advertising need not 
carry a truthful disclaimer to inform the voter who actually 
paid for the communication.
    Since 1996, so-called ``issue'' advertising abuses have 
exploded. The Annenberg Public Policy Center estimates that 
between $275 million and $340 million was spent on ``issue'' 
advertising in the months prior to the 1998 election. However, 
no one can be certain of the correct figure since no disclosure 
is required. Both political parties, as well as a variety of 
interest groups and unknown groups whose origin and purpose 
remains a mystery, have used the express advocacy loophole in 
recent elections to run ads that clearly are designed to 
advocate candidates. Nonetheless, since these ads stop just 
short of using the magic words, their sponsors are not subject 
to public disclosure, the ads need carry no disclaimer and they 
may be paid for with unlimited dollars from any source.
    In her testimony before the Committee on July 22, Kathleen 
Hall Jamison outlined the problem that unlimited and 
undisclosed issue advertising creates for voters. Express 
advocacy ``is not a bright line that a reasonable person can 
differentiate when in practice something that vilifies an 
individual but doesn't contain the express words of advocacy 
and closes with an appeal to call appears within a week or two 
of an election. Reasonably, that message in that context is 
interpreted by human beings as express advocacy, even as 
Buckley calls it something else. Secondly * * * messages are 
not identifiable for most audiences until they are sourced. And 
as a result of that, we rarely interpret messages without 
interpreting the credibility of the source who is bringing us 
the message. If one assumes that pseudonymous groups are able 
to communicate to the electorate, one effectively takes away 
the ability of the electorate to judge the legitimacy of the 
message that is being offered.''
    H.R. 417 would modify the statutory definition of ``express 
advocacy'' to provide a clear distinction between advertising 
seeking to persuade voters on issues and ``sham'' advertising--
that is, advertising that clearly is intended to promote the 
election or defeat of a federal candidate. The Shays-Meehan 
proposal defines any advertisement that features a clearly 
identified federal candidate in the 60 days before the election 
as an ``express advocacy'' advertisement. This simply means 
that the advertising must, like all candidate ads, be paid for 
with hard dollars and be subject to public disclosure.
    The solution to this explosion of unsourced, undisclosed 
political advertising is passage of the moderate, bright line 
60-day proposal in H.R. 417. Passage of the 60-day Shays-Meehan 
proposal would not limit the speech of any group or individual. 
In fact, it would not require any group or individual spending 
less than $1,000 to do anything at all. And for those groups 
and individuals interested in promoting the election or defeat 
of the candidates of their choice, it would simply require that 
they play by the same rules that govern the candidates 
themselves. These modest burdens placed on groups and 
individuals wishing to engage in express advocacy will not 
limit their ability to speak, and the disclosure and disclaimer 
requirements will cast sunlight on political spending by 
interest groups.

                            other provisions

    In addition, Shays-Meehan would accomplish several other 
necessary but less crucial fixes to the campaign finance laws. 
Notably, it forces wealthy candidates to choose between 
spending in excess of $50,000 of their own funds or receiving 
financial assistance from the party. It also takes steps to 
ensure that public disclosure keeps pace with the age of the 
Internet by requiring all committees to file electronically and 
requiring that last-minute contributions be filed and placed 
online more quickly. Finally, H.R. 417 creates a Commission to 
further study the issue of campaign finance reform so that in 
the future when the campaign finance law again needs to be 
altered to keep up with unforeseen changes and to further 
ensure the integrity of the electoral process, that change may 
be accomplished more quickly and with bipartisan support such 
as that exhibited in the House on the Shays-Meehan proposal 
last year.

                               conclusion

    The Majority's refused to even consider voting H.R. 417 out 
of the Committee without recommendation, despite the fact that 
this same courtesy was granted to H.R. 1867, which is very 
similar to Shays-Meehan in substance. This distinction reflects 
a fundamental difference in the parties' approaches to campaign 
finance reform. The Democrats believe that the time has come to 
curb the ever-increasing amounts of money being used simply to 
enrich broadcasters and political consultants. At the same 
time, there is a growing view among the public that there is 
too much money in politics and that wealthy special interests 
have too much influence. Along with a bi-partisan group of our 
colleagues, leaders of the business world, and 125 
constitutional scholars we urge the passage of a soft money ban 
and the enactment of the Shays-Meehan bill.

                                   Steny H. Hoyer.
                                   Chaka Fattah.
                                   Jim Davis.