S. 25 McCain-Feingold

 


 

105th CONGRESS

1st Session

To reform the financing of Federal elections.

IN THE SENATE OF THE UNITED STATES

January 21, 1997

 

 

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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