Mr. MCCAIN (for himself, Mr. FEINGOLD, Mr. THOMPSON, Mr. WELLSTONE, Mr. GRAHAM, Mr. KERREY, Mr. DODD, Mr. KERRY, Mr. BINGAMAN, Mr. GLENN, Mrs. MURRAY, Mr. KOHL, Mr. WYDEN, Ms. MOSELEY-BRAUN, Mr. REID, Mr. FORD, Mr. LEAHY, Mr. CLELAND, Mr. JOHNSON, Mr. DURBIN, Mrs. BOXER, Mr. LEVIN, Mr. HARKIN, Mr. BRYAN, Mr. MOYNIHAN, Mr. LIEBERMAN, Ms. MIKULSKI, Mrs. FEINSTEIN, Mr. SARBANES, Mr. BYRD, Mr. ROBB, and Mr. DORGAN) introduced the following bill; which was read twice and referred to the Committee on Rules and Administration September 25, 1997 Committee discharged and ordered to be placed on the calendar September 29, 1997 Modified pursuant to the order of September 23, 1997
A BILL
To reform the financing of Federal elections.
Be it enacted by the Senate and House of
Representatives of the United States of America in Congress
assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Bipartisan
Campaign Reform Act of 1997'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE
Sec. 101. Soft money of political parties.
Sec. 102. Increased contribution limits for State committees of
political parties and aggregate contribution limit for
individuals.
Sec. 103. Reporting requirements.
TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES
Sec. 201. Definitions.
Sec. 202. Civil penalty.
Sec. 203. Reporting requirements for certain independent
expenditures.
Sec. 204. Independent versus coordinated expenditures by party.
Sec. 205. Coordination with candidates.
TITLE III--DISCLOSURE
Sec. 301. Filing of reports using computers and facsimile machines;
filing by Senate candidates with Commission.
Sec. 302. Prohibition of deposit of contributions with incomplete
contributor information.
Sec. 303. Audits.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Use of candidates' names.
Sec. 306. Prohibition of false representation to solicit
contributions.
Sec. 307. Soft money of persons other than political parties.
Sec. 308. Campaign advertising.
TITLE IV--PERSONAL WEALTH OPTION
Sec. 401. Voluntary personal funds expenditure limit.
Sec. 402. Political party committee coordinated expenditures.
TITLE V--MISCELLANEOUS
Sec. 501. Codification of Beck decision.
Sec. 502. Use of contributed amounts for certain purposes.
Sec. 503. Limit on congressional use of the franking privilege.
Sec. 504. Prohibition of fundraising on Federal property.
Sec. 505. Penalties for knowing and willful violations.
Sec. 506. Strengthening foreign money ban.
Sec. 507. Prohibition of contributions by minors.
Sec. 508. Expedited procedures.
Sec. 509. Initiation of enforcement proceeding.
TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE;
REGULATIONS
Sec. 601. Severability.
Sec. 602. Review of constitutional issues.
Sec. 603. Effective date.
Sec. 604. Regulations.
TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE
SEC. 101. SOFT MONEY OF POLITICAL PARTIES.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) is amended by adding at the end the following:
`SEC. 324. SOFT MONEY OF POLITICAL PARTIES.
`(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, an agent acting on behalf of any such party
committee, 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 Secretary of the Internal Revenue Service for
determination of tax-exemption under such section).
`(e) CANDIDATES-
`(1) IN GENERAL- A candidate, individual holding Federal
office, or agent of a candidate or individual holding Federal
office shall not solicit, receive, direct, transfer, or spend
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 this Act.
`(A) STATE LAW- Paragraph (1) does not apply to the
solicitation or receipt of funds by an individual who is a
candidate for a State or local office if the solicitation
or receipt of funds is permitted under State law for any
activity other than a Federal election activity.
`(B) FUNDRAISING EVENTS- Paragraph (1) does not apply in
the case of a candidate who attends, speaks, or is a
featured guest at a fundraising event sponsored by a State,
district, or local committee of a political party.'.
SEC. 102. INCREASED CONTRIBUTION LIMITS FOR STATE COMMITTEES OF
POLITICAL PARTIES AND AGGREGATE CONTRIBUTION
LIMIT FOR INDIVIDUALS.
(a) CONTRIBUTION LIMIT FOR STATE COMMITTEES OF POLITICAL PARTIES-
Section 315(a)(1) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(a)(1)) is amended--
(1) in subparagraph (B), by striking `or' at the end;
(2) in subparagraph (C)--
(A) by inserting `(other than a committee described in
subparagraph (D))' after `committee'; and
(B) by striking the period at the end and inserting `;
or'; and
(3) by adding at the end the following:
`(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'.
(b) AGGREGATE CONTRIBUTION LIMIT FOR INDIVIDUAL- Section
315(a)(3) of the Federal Election Campaign Act of 1971 (2 U.S.C.
441a(a)(3)) is amended by striking `$25,000' and inserting `$30,000'.
SEC. 103. REPORTING REQUIREMENTS.
(a) REPORTING REQUIREMENTS- Section 304 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 203) is
amended by adding at the end the following:
`(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 324 APPLIES-
A political committee (not described in paragraph (1)) to which
section 324(b)(1) applies shall report all receipts and
disbursements made for activities described in paragraphs (2)
and (3)(A)(v) of section 324(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).'.
(b) BUILDING FUND EXCEPTION TO THE DEFINITION OF CONTRIBUTION-
Section 301(8)(B) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(8)(B)) is amended--
(1) by striking clause (viii); and
(2) by redesignating clauses (ix) through (xiv) as clauses
(viii) through (xiii), respectively.
TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES
SEC. 201. DEFINITIONS.
(a) DEFINITION OF INDEPENDENT EXPENDITURE- Section 301 of the
Federal Election Campaign Act (2 U.S.C. 431) is amended by striking
paragraph (17) and inserting the following:
`(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 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.'.
(b) DEFINITION OF EXPRESS ADVOCACY- Section 301 of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431) is amended by adding
at the end the following:
`(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 1 or more clearly identified candidates;
`(ii) referring to 1 or more clearly identified
candidates in a paid advertisement that is broadcast by
a radio broadcast station or a television broadcast
station 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 1 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 printed communication
that--
`(i) presents information in an educational manner
solely about the voting record or position on a
campaign issue of 2 or more candidates;
`(ii) that 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;
`(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
1997', `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 1 or more clearly identified candidates.'.
(c) DEFINITION OF EXPENDITURE- Section 301(9)(A) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is amended--
(1) in clause (i), by striking `and' at the end;
(2) in clause (ii), by striking the period at the end and
inserting `; and'; and
(3) by adding at the end the following:
`(iii) a payment for a communication that is express
advocacy; and
`(iv) a payment made by a person for a communication that--
`(I) refers to a clearly identified candidate;
`(II) is provided in coordination with the candidate, the
candidate's agent, or the political party of the candidate;
and
`(III) is for the purpose of influencing a Federal
election (regardless of whether the communication is
express advocacy).'.
SEC. 202. CIVIL PENALTY.
Section 309 of the Federal Election Campaign Act of 1971 (2
U.S.C. 437g) is amended--
(1) in subsection (a)--
(A) in paragraph (4)(A)--
(i) in clause (i), by striking `clause (ii)' and
inserting `clauses (ii) and (iii)'; and
(ii) by adding at the end the following:
`(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).'; and
(B) in paragraph (6)(B), by inserting `(except an action
instituted in connection with a knowing and willful
violation of section 304(c))' after `subparagraph (A)'; and
(2) in subsection (d)(1)--
(A) in subparagraph (A), by striking `Any person' and
inserting `Except as provided in subparagraph (D), any
person'; and
(B) by adding at the end the following:
`(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.'.
SEC. 203. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT
EXPENDITURES.
Section 304(c) of the Federal Election Campaign Act of 1971 (2
U.S.C. 434(c)) is amended--
(1) in paragraph (2), by striking the undesignated matter
after subparagraph (C);
(2) by redesignating paragraph (3) as paragraph (7); and
(3) by inserting after paragraph (2) (as amended by paragraph
(1)) the following:
`(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.'.
SEC. 204. INDEPENDENT VERSUS COORDINATED EXPENDITURES BY PARTY.
Section 315(d) of the Federal Election Campaign Act (2 U.S.C.
441a(d)) is amended--
(1) in paragraph (1), by striking `and (3)' and inserting `,
(3), and (4)'; and
(2) by adding at the end the following:
`(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.'.
SEC. 205. COORDINATION WITH CANDIDATES.
(a) DEFINITION OF COORDINATION WITH CANDIDATES-
(1) SECTION 301(8)- Section 301(8) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
(A) in subparagraph (A)--
(i) by striking `or' at the end of clause (i);
(ii) by striking the period at the end of clause (ii)
and inserting `; or'; and
(iii) by adding at the end the following:
`(iii) anything of value provided by a person in
coordination with a candidate 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
(B) by adding at the end the following:
`(C) The term `provided in coordination with a candidate'
includes--
`(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, or an agent acting on behalf of a
candidate or authorized committee;
`(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 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 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 engaged in
a coordinated activity with a candidate described in
clauses (i) through (vi) for a communication that
clearly refers to the candidate and is for the purpose
of influencing an election (regardless of whether the
communication is express advocacy);
`(viii) direct participation by a person in
fundraising activities with the candidate or in the
solicitation or receipt of contributions on behalf of
the candidate;
`(ix) communication by a person with the candidate or
an agent of the candidate, occurring 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; or
`(x) the provision of in-kind professional services
or polling data to the candidate or candidate's agent.
`(D) For purposes of subparagraph (C), the term
`professional services' includes services in support of a
candidate's pursuit of nomination for election, or
election, to Federal office such as polling, media advice,
direct mail, fundraising, or campaign research.
`(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.'.
(2) SECTION 315(a)(7)- Section 315(a)(7) (2 U.S.C.
441a(a)(7)) is amended by striking subparagraph (B) and
inserting the following:
`(B) a thing of value provided in coordination with a
candidate, as described in section 301(8)(A)(iii), 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.
(b) MEANING OF CONTRIBUTION OR EXPENDITURE FOR THE PURPOSES OF
SECTION 316- Section 316(b)(2) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441b(b)) is amended by striking `shall include'
and inserting `includes a contribution or expenditure, as those
terms are defined in section 301, and also includes'.
TITLE III--DISCLOSURE
SEC. 301. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES;
FILING BY SENATE CANDIDATES WITH COMMISSION.
(a) USE OF COMPUTER AND FACSIMILE MACHINE- Section 302(a) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(a)) is amended
by striking paragraph (11) and inserting the following:
`(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) SENATE CANDIDATES FILE WITH COMMISSION- Title III of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is
amended--
(1) in section 302, by striking subsection (g) and inserting
the following:
`(g) FILING WITH THE COMMISSION- All designations, statements,
and reports required to be filed under this Act shall be filed with
the Commission.'; and
(2) in section 304--
(A) in subsection (a)(6)(A), by striking `the Secretary
or'; and
(B) in the matter following subsection (c)(2), by
striking `the Secretary or'.
SEC. 302. PROHIBITION OF DEPOSIT OF CONTRIBUTIONS WITH INCOMPLETE
CONTRIBUTOR INFORMATION.
Section 302 of Federal Election Campaign Act of 1971 (2 U.S.C.
432) is amended by adding at the end the following:
`(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.'.
SEC. 303. AUDITS.
(a) RANDOM AUDITS- Section 311(b) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 438(b)) is amended--
(1) by inserting `(1) IN GENERAL- ' before `The Commission';
and
(2) by adding at the end the following:
`(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 4 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.'.
(b) EXTENSION OF PERIOD DURING WHICH CAMPAIGN AUDITS MAY BE
BEGUN- Section 311(b) of the Federal Election Campaign Act of 1971
(2 U.S.C. 438(b)) is amended by striking `6 months' and inserting
`12 months'.
SEC. 304. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR MORE.
Section 304(b)(3)(A) of the Federal Election Campaign Act at 1971
(2 U.S.C. 434(b)(3)(A) is amended--
(1) by striking `$200' and inserting `$50'; and
(2) by striking the semicolon and inserting `, 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;'.
SEC. 305. USE OF CANDIDATES' NAMES.
Section 302(e) of the Federal Election Campaign Act of 1971 (2
U.S.C. 432(e)) is amended by striking paragraph (4) and inserting
the following:
`(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.'.
SEC. 306. PROHIBITION OF FALSE REPRESENTATION TO SOLICIT
CONTRIBUTIONS.
Section 322 of the Federal Election Campaign Act of 1971 (2
U.S.C. 441h) is amended--
(1) by inserting after `SEC. 322.' the following: `(a) IN
GENERAL- '; and
(2) by adding at the end the following:
`(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.'.
SEC. 307. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.
(a) IN GENERAL- Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434) (as amended by section 103(c)) is amended by
adding at the end the following:
`(g) DISBURSEMENTS OF PERSONS OTHER THAN POLITICAL PARTIES-
`(1) IN GENERAL- A person, other than a political committee
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 (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.'.
(b) DEFINITION OF GENERIC CAMPAIGN ACTIVITY- Section 301 of the
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as
amended by section 201(b)) is amended by adding at the end the
following:
`(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.'.
SEC. 308. CAMPAIGN ADVERTISING.
Section 318 of the Federal Election Campaign Act of 1971 (2
U.S.C. 441d) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking `Whenever' and inserting `Whenever a
political committee makes a disbursement for the
purpose of financing any communication through any
broadcasting station, newspaper, magazine, outdoor
advertising facility, mailing, or any other type of
general public political advertising, or whenever';
(ii) by striking `an expenditure' and inserting `a
disbursement'; and
(iii) by striking `direct'; and
(B) in paragraph (3), by inserting `and permanent street
address' after `name'; and
(2) by adding at the end the following:
`(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 broadcast or cablecast communication described in
paragraphs (1) or (2) of subsection (a) 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 broadcast or cablecast communication described in
paragraph (1) is broadcast or cablecast by means of television, the
communication shall include, in addition to the audio statement
under paragraph (1), a written statement 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 broadcast or cablecast communication described in
paragraph (3) of subsection (a) shall include, in addition to the
requirements of that paragraph, in a clearly spoken manner, the
following statement: ` [Bold->] XXXXXXXX [<-Bold] is responsible
for the content of this advertisement.' (with the blank to be
filled in with the name of the political committee or other person
paying for the communication and the name of any connected
organization of the payor). If broadcast or cablecast by means of
television, the statement shall also appear in a clearly readable
manner with a reasonable degree of color contrast between the
background and the printed statement, for a period of at least 4
seconds.'.
TITLE IV--PERSONAL WEALTH OPTION
SEC. 401. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) (as amended by section 101) is amended by adding at
the end the following:
`SEC. 325. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.
`(a) ELIGIBLE SENATE CANDIDATE-
`(1) PRIMARY ELECTION-
`(A) DECLARATION- A candidate is an eligible primary
election Senate 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 is an eligible general
election Senate 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
Senate 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 Senate 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 Senate 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 Senate 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).'.
SEC. 402. POLITICAL PARTY COMMITTEE COORDINATED EXPENDITURES.
Section 315(d) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(d)) (as amended by section 204) is amended by adding at
the end the following:
`(5) This subsection does not apply to expenditures made in
connection with the general election campaign of a candidate
for the Senate who is not an eligible Senate candidate (as
defined in section 325(a)).'.
TITLE V--MISCELLANEOUS
SEC. 501. CODIFICATION OF BECK DECISION.
Section 8 of the National Labor Relations Act (29 U.S.C. 158) is
amended by adding at the end the following new subsection:
`(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, 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;
`(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.'.
SEC. 502. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) is amended by striking section 313 and inserting the
following:
`SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.
`(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.'.
SEC. 503. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.
Section 3210(a)(6) of title 39, United States Code, is amended by
striking subparagraph (A) and inserting the following:
`(A) A Member of Congress shall not mail any mass mailing
as franked mail during a year in which there will be an
election for the seat held by the Member during the period
between January 1 of that year and the date of the general
election for that Office, unless the Member has made a
public announcement that the Member will not be a candidate
for reelection to that year or for election to any other
Federal office.'.
SEC. 504. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY.
Section 607 of title 18, United States Code, is amended by--
(1) striking subsection (a) and inserting the following:
`(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
for a political committee or a candidate for Federal, State or
local office 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 for a political
committee or candidate for Federal, State or local office,
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.'.
(2) inserting in subsection (b) after `Congress' `or
Executive Office of the President'.
SEC. 505. PENALTIES FOR KNOWING AND WILLFUL VIOLATIONS.
(a) INCREASED PENALTIES- Section 309(a) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--
(1) in paragraphs (5)(A), (6)(A), and (6)(B), by striking
`$5,000' and inserting `$10,000'; and
(2) in paragraphs (5)(B) and (6)(C), by striking `$10,000 or
an amount equal to 200 percent' and inserting `$20,000 or an
amount equal to 300 percent'.
(b) EQUITABLE REMEDIES- Section 309(a)(5)(A) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is amended by
striking the period at the end and inserting `, 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).'.
(c) AUTOMATIC PENALTY FOR LATE FILING- Section 309(a) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--
(1) by adding at the end the following:
`(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.';
(2) in paragraph (5)(D)--
(A) by inserting after the first sentence the following:
`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).'; and
(B) by inserting before the period at the end of the last
sentence the following: `or has failed to pay a penalty or
meet a filing requirement imposed under paragraph (13)'; and
(3) in paragraph (6)(A), by striking `paragraph (4)(A)' and
inserting `paragraph (4)(A) or (13)'.
SEC. 506. STRENGTHENING FOREIGN MONEY BAN.
Section 319 of the Federal Election Campaign Act of 1971 (2
U.S.C. 441e) is amended--
(1) by striking the heading and inserting the following:
`CONTRIBUTIONS AND DONATIONS BY FOREIGN NATIONALS'; and
(2) by striking subsection (a) and inserting the following:
`(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 to a
political committee or a candidate for Federal office; or
`(ii) a contribution or donation to a committee of a
political party; or
`(B) for a person to solicit, accept, or receive such
contribution or donation from a foreign national.'.
SEC. 507. PROHIBITION OF CONTRIBUTIONS BY MINORS.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) (as amended by section 401) is amended by adding at
the end the following:
`SEC. 326. PROHIBITION OF CONTRIBUTIONS BY MINORS.
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.'.
SEC. 508. EXPEDITED PROCEDURES.
(a) IN GENERAL- Section 309(a) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 437g(a)) (as amended by section 505(c)) is
amended by adding at the end the following:
`(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.'.
(b) REFERRAL TO ATTORNEY GENERAL- Section 309(a)(5) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is
amended by striking subparagraph (C) and inserting the following:
`(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 title 26, United States Code, to the Attorney
General of the United States, without regard to any limitation set
forth in this section.'.
SEC. 509. INITIATION OF ENFORCEMENT PROCEEDING.
Section 309(a)(2) of the Federal Election Campaign Act of 1971 (2
U.S.C. 437g(a)(2)) is amended by striking `reason to believe that'
and inserting `reason to investigate whether'.
TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE;
REGULATIONS
SEC. 601. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or
the application of a provision or amendment to any person or
circumstance, is held to be unconstitutional, the remainder of this
Act and amendments made by this Act, and the application of the
provisions and amendment to any person or circumstance, shall not
be affected by the holding.
SEC. 602. REVIEW OF CONSTITUTIONAL ISSUES.
An appeal may be taken directly to the Supreme Court of the
United States from any final judgment, decree, or order issued by
any court ruling on the constitutionality of any provision of this
Act or amendment made by this Act.
SEC. 603. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act take effect on the date that is 60 days
after the date of enactment of this Act or January 1, 1998,
whichever occurs first.
SEC. 604. REGULATIONS.
The Federal Election Commission shall prescribe any regulations
required to carry out this Act and the amendments made by this Act
not later than 270 days after the effective
date of this Act.
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