[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3760 Reported in House (RH)]





                                                 Union Calendar No. 349

104th CONGRESS

  2d Session

                               H. R. 3760

                          [Report No. 104-677]

_______________________________________________________________________

                                 A BILL

   To amend the Federal Election Campaign Act of 1971 to reform the 
    financing of Federal election campaigns, and for other purposes.

_______________________________________________________________________

                             July 16, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 349
104th CONGRESS
  2d Session
                                H. R. 3760

                          [Report No. 104-677]
   To amend the Federal Election Campaign Act of 1971 to reform the 
    financing of Federal election campaigns, and for other purposes.
_______________________________________________________________________
                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 1996

   Mr. Thomas (for himself, Mr. Gingrich, Mr. Armey, Mr. DeLay, Mr. 
Boehner, Mr. Paxon, Mr. Hoekstra, Mr. Wamp, and Mr. Ehlers) introduced 
   the following bill; which was referred to the Committee on House 
                               Oversight

                             July 16, 1996

Additional sponsors: Ms. Greene of Utah, Mr. Ballenger, Mr. Riggs, Mr. 
Livingston, Mr. Fox, Mr. Kolbe, Mr. Weldon of Pennsylvania, Mr. Walker, 
               Mr. English of Pennsylvania, and Mr. Camp

                             July 16, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on July 9, 
                                 1996]
_______________________________________________________________________
                                 A BILL


 
   To amend the Federal Election Campaign Act of 1971 to reform the 
    financing of Federal election campaigns, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Campaign Finance 
Reform Act of 1996''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

         TITLE I--RESTORING CONTROL OF ELECTIONS TO INDIVIDUALS

Sec. 101. Requiring majority of House of Representatives candidate 
                            funds to come from individuals residing in 
                            district.
Sec. 102. Reduction in allowable contribution amounts for political 
                            action committees in Federal elections to 
                            level allowed for individuals.
Sec. 103. Modification of limitations on contributions when candidates 
                            spend or contribute large amounts of 
                            personal funds.
Sec. 104. Indexing limits on contributions.
Sec. 105. Prohibition of leadership committees.
Sec. 106. Prohibiting bundling of contributions to candidates by 
                            political action committees and lobbyists.
Sec. 107. Definition of independent expenditures.
Sec. 108. Requirements for use of payroll deductions for contributions.

               TITLE II--STRENGTHENING POLITICAL PARTIES

Sec. 201. Modification of contribution limits and requirements for 
                            political parties.
Sec. 202. Allowing political parties to offset funds carried over from 
                            previous elections.
Sec. 203. Prohibiting use of non-Federal funds in Federal elections.
Sec. 204. Permitting parties to have unlimited communication with 
                            members.
Sec. 205. Promoting State and local party volunteer and grassroots 
                            activity.

                 TITLE III--DISCLOSURE AND ENFORCEMENT

Sec. 301. Timely reporting and increased disclosure.
Sec. 302. Streamlining procedures and rules of Federal Election 
                            Commission.

                      TITLE IV--GENERAL PROVISIONS

Sec. 401. Effective date.
Sec. 402. Severability.
Sec. 403. Expedited court review.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Our republican form of government is strengthened when 
        voters choose their representatives in elections that are free 
        of corruption or the appearance of corruption.
            (2) Corruption or the appearance of corruption in elections 
        may evidence itself in many ways:
                    (A) Voters who democratically elect representatives 
                must believe they are fairly represented by those they 
                elect. The current election laws have led many to 
                believe that the interests of those who actually vote 
                for their representatives are less important than those 
                who cannot vote, but who can influence an election by 
                their contributions to the candidates.
                    (B) Failure to disclose, or timely disclose, those 
                who contribute and how much they contribute 
                unnecessarily withholds information voters need to cast 
                ballots with complete confidence, thereby increasing 
                the belief of, or the appearance of, corruption.
                    (C) The diminishing role of political parties, 
                despite parties' long-standing role in advancing broad 
                national agendas, in assisting the election of party 
                candidates, and in organizing members, has relatively 
                enhanced groups that pursue narrower interests. This 
                relative shift of influence has been interpreted by 
some as corrupting the election process.
                    (D) Complicated and obsolete election laws and 
                rules discourage citizens from becoming candidates, 
                allow for coerced involuntary payments for political 
                purposes, fail to keep contribution amounts current 
                with inflation, and fail to provide reasonable 
                compensating contribution limits for candidates who run 
                against candidates who wish to exercise their 
                constitutional right of spending their own resources. 
                The current state of laws and rules is such that if 
                they do not corrupt, at the very least they unduly 
                hinder fair, honest, and competitive elections.

         TITLE I--RESTORING CONTROL OF ELECTIONS TO INDIVIDUALS

SEC. 101. REQUIRING MAJORITY OF HOUSE OF REPRESENTATIVES CANDIDATE 
              FUNDS TO COME FROM INDIVIDUALS RESIDING IN DISTRICT.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a) is amended by adding at the end the following 
new subsection:
    ``(i)(1) A candidate for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress may not accept 
contributions with respect to an election cycle from persons other than 
local individual residents totaling in excess of the total of 
contributions accepted from local individual residents (as determined 
on the basis of the most recent information included in reports 
pursuant to section 304(d).
    ``(2) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, contributions of the 
candidate's personal funds shall be subject to the following rules:
            ``(A) To the extent that the amount of the contribution 
        does not exceed the limitation on contributions made by an 
        individual under subsection (a)(1)(A), such contribution shall 
        be treated as any other contribution.
            ``(B) The portion (if any) of the contribution which 
        exceeds the limitation on contributions which may be made by an 
        individual under subsection (a)(1)(A) shall be allocated in 
        accordance with paragraph (8).
    ``(3) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, contributions from a 
political party or a political party committee shall be allocated in 
accordance with paragraph (8).
    ``(4) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, any funds remaining in the 
candidate's campaign account after the filing of the post-general 
election report under section 304(a)(2)(A)(ii) for the most recent 
general election shall be allocated in accordance with paragraph (8).
    ``(5) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, any contributions accepted 
pursuant to subsection (j) which are from persons other than local 
individual residents shall be allocated in accordance with paragraph 
(8).
    ``(6)(A) Any candidate who accepts contributions that exceed the 
limitation under this subsection, as determined on the basis of 
information included in reports pursuant to section 304(d), shall pay 
to the Commission at the time of the filing of the report which 
contains the information, for deposit in the Treasury, an amount equal 
to 3 times the amount of the excess contributions (or, in the case of a 
candidate described in subparagraph (C), an amount equal to 5 times the 
amount of the excess contributions plus a civil penalty in an amount 
determined by the Commission).
    ``(B) Any amounts paid by a candidate under this paragraph shall be 
paid from contributions subject to the limitations and prohibitions of 
this title, including the limitation under this subsection.
    ``(C) A candidate described in this subparagraph is a candidate who 
accepts contributions that exceed the limitation under this subsection 
as of the last day of the period ending on the 20th day before an 
election or any period ending after such 20th day and before or on the 
20th day after such election.
    ``(7) As used in this subsection, the term `local individual 
resident' means an individual who resides in the congressional district 
involved.
    ``(8) For purposes of this subsection, any amounts allocated in 
accordance with this paragraph shall be allocated as follows:
            ``(A) 50 percent of such amounts shall be deemed to be 
        contributions from local individual residents.
            ``(B) 50 percent of such amounts shall be deemed to be 
        contributions from persons other than local individual 
        residents.''.
    (b) Reporting Requirements.--Section 304 of such Act (2 U.S.C. 434) 
is amended by adding at the end the following new subsection:
    ``(d) Each principal campaign committee of a candidate for the 
House of Representatives shall include the following information in 
reports filed under subsection (a)(2) and subsection (a)(6)(A):
            ``(1) With respect to each report filed under such 
        subsection--
                    ``(A) the total contributions received by the 
                committee with respect to the election cycle involved 
                from local individual residents (as defined in section 
                315(i)(7)), as of the last day of the period covered by 
                the report;
                    ``(B) the total contributions received by the 
                committee with respect to the election cycle involved 
                which are not from local individual residents, as of 
                the last day of the period covered by the report; and
                    ``(C) a certification as to whether the 
                contributions reported comply with the limitation under 
                section 315(i), as of the last day of the period 
                covered by the report.
            ``(2) In the case of the first report filed under such 
        subsection which covers the period which begins 19 days before 
        an election and ends 20 days after the election--
                    ``(A) the total contributions received by the 
                committee with respect to the election cycle involved 
                from local individual residents (as defined in section 
                315(i)(7)), as of the last day of such period;
                    ``(B) the total contributions received by the 
                committee with respect to the election cycle involved 
                which are not from local individual residents, as of 
                the last day of such period; and
                    ``(C) a certification as to whether the 
                contributions reported comply with the limitation under 
                section 315(i), as of the last day of such period.''.

SEC. 102. REDUCTION IN ALLOWABLE CONTRIBUTION AMOUNTS FOR POLITICAL 
              ACTION COMMITTEES IN FEDERAL ELECTIONS TO LEVEL ALLOWED 
              FOR INDIVIDUALS.

    (a) In General.--Section 315(a) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by inserting after 
                ``Federal office'' the following: ``or to any other 
                political committee other than a political party 
                committee in any calendar year'',
                    (B) in subparagraph (A), by adding ``or'' at the 
                end,
                    (C) in subparagraph (B), by striking ``; or'' and 
                inserting a period, and
                    (D) by striking subparagraph (C); and
            (2) by amending paragraph (2) to read as follows:
    ``(2) No political party committee may make contributions--
            ``(A) to any candidate or the candidate's authorized 
        political committees with respect to any election for Federal 
        office which, in the aggregate, exceed $5,000; or
            ``(B) to any other political committee other than a 
        political party committee in any calendar year which, in the 
        aggregate, exceed $5,000.''.
    (b) Political Party Committee Defined.--The second sentence of 
section 315(a)(4) of such Act (2 U.S.C. 441a(a)(4)) is amended to read 
as follows: ``For purposes of this section, the term `political party 
committee' means a political committee which is a national, State, 
district, or local political party committee (including any subordinate 
committee thereof).''.
    (c) Conforming Amendments.--Section 311(a)(6) of such Act (2 U.S.C. 
438(a)(6)) is amended--
            (1) in subparagraph (B), by striking ``multi-candidate 
        committees'' the first place it appears and inserting 
        ``political committees which are not authorized committees of 
        candidates or political party committees'';
            (2) in subparagraph (B), by striking ``multi-candidate 
        committees'' the second place it appears and inserting ``such 
        committees''; and
            (3) in subparagraph (C), by striking ``multi-candidate 
        committees'' and inserting ``committees described in 
        subparagraph (B)''.

SEC. 103. MODIFICATION OF LIMITATIONS ON CONTRIBUTIONS WHEN CANDIDATES 
              SPEND OR CONTRIBUTE LARGE AMOUNTS OF PERSONAL FUNDS.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a), as amended by section 101(a), is further 
amended by adding at the end the following new subsection:
    ``(j)(1) Notwithstanding subsection (a), if in a general election a 
House candidate makes expenditures of personal funds (including 
contributions by the candidate to the candidate's authorized campaign 
committee) in an amount in excess of the amount of the limitation 
established under subsection (a)(1)(A) and less than or equal to 
$150,000 (as reported under section 304(a)(2)(A)), a political party 
committee may make contributions to an opponent of the House candidate 
without regard to any limitation otherwise applicable to such 
contributions under subsection (a), except that the opponent may not 
accept aggregate contributions under this paragraph in an amount 
greater than the greatest amount of personal funds expended (including 
contributions to the candidate's authorized campaign committee) by any 
House candidate (other than such opponent) with respect to the election 
(as reported in a notification submitted under section 304(a)(6)(B)).
    ``(2) If a House candidate makes expenditures of personal funds 
(including contributions by the candidate to the candidate's authorized 
campaign committee) with respect to an election in an amount greater 
than $150,000 (as reported under section 304(a)(2)(A)), the following 
rules shall apply:
            ``(A) In the case of a general election, the limitations 
        under subsections (a)(1) and (a)(2) (insofar as such 
        limitations apply to political party committees and to 
        individuals) shall not apply to contributions to the candidate 
        or to any opponent of the candidate, except that neither the 
        candidate or any opponent may accept aggregate contributions 
        under this subparagraph and paragraph (1) in an amount greater 
        than the greatest amount of personal funds (including 
        contributions to the candidate's authorized campaign committee) 
        expended by any House candidate with respect to the election 
        (as reported in a notification submitted under section 
        304(a)(6)(B)).
            ``(B) In the case of an election other than a general 
        election, the limitations under subsection (a)(1) (insofar as 
        such limitations apply to individuals) shall not apply to 
        contributions to the candidate or to any opponent of the 
        candidate, except that neither the candidate or any opponent 
        may accept aggregate contributions under this subparagraph in 
        an amount greater than the greatest amount of personal funds 
        (including contributions to the candidate's authorized campaign 
        committee) expended by any House candidate with respect to the 
        election (as reported in a notification submitted under section 
        304(a)(6)(B)).
    ``(3) In this subsection, the term `House candidate' means a 
candidate in an election for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress.''.
    (b) Notification of Expenditures of Personal Funds.--Section 
304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph:
    ``(B)(i) The principal campaign committee of a House candidate (as 
defined in section 315(j)(3)) shall submit the following notifications 
relating to expenditures of personal funds by such candidate (including 
contributions by the candidate to such committee):
            ``(I) A notification of the first such expenditure (or 
        contribution) by which the aggregate amount of personal funds 
        expended (or contributed) with respect to an election exceeds 
        the amount of the limitation established under section 
        315(a)(1)(A) for elections in the year involved.
            ``(II) A notification of each such expenditure (or 
        contribution) which, taken together with all such expenditures 
        (and contributions) in any amount not included in the most 
        recent report under this subparagraph, totals $5,000 or more.
            ``(III) A notification of the first such expenditure (or 
        contribution) by which the aggregate amount of personal funds 
        expended with respect to the election exceeds the level 
        applicable under section 315(j)(2) for elections in the year 
        involved.
    ``(ii) Each of the notifications submitted under clause (i)--
            ``(I) shall be submitted not later than 24 hours after the 
        expenditure or contribution which is the subject of the 
        notification is made;
            ``(II) shall include the name of the candidate, the office 
        sought by the candidate, and the date of the expenditure or 
        contribution and amount of the expenditure or contribution 
        involved; and
            ``(III) shall include the total amount of all such 
        expenditures and contributions made with respect to the same 
        election as of the date of expenditure or contribution which is 
        the subject of the notification.''.

SEC. 104. INDEXING LIMITS ON CONTRIBUTIONS.

    (a) In General.--Section 315(c) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(c)) is amended by adding at the end the 
following new paragraph:
    ``(3)(A) The amount of each limitation established under subsection 
(a) shall be adjusted as follows:
            ``(i) For calendar year 1997, each such amount shall be 
        equal to the amount described in such subsection, increased (in 
        a compounded manner) by the percentage increase in the price 
        index (as defined in subsection (c)(2)) for each year after 
        1976 and before 1998.
            ``(ii) For calendar year 1999 and each second subsequent 
        year, each such amount shall be equal to the amount for the 
        second previous year (as adjusted under this subparagraph), 
        increased (in a compounded manner) by the percentage increase 
        in the price index for the previous year and the second 
previous year.
    ``(B) In the case of any amount adjusted under this subparagraph 
which is not a multiple of $500, the amount shall be rounded to the 
nearest lowest multiple of $500.''.
    (b) Application of Indexing to Support of Candidate's Committees.--
Section 302(e)(3)(B) of such Act (2 U.S.C. 432(e)(3)(B)) is amended by 
adding at the end the following new sentence: ``The amount described in 
the previous sentence shall be adjusted (for years beginning with 1997) 
in the same manner as the amounts of limitations on contributions under 
section 315(a) are adjusted under section 315(c)(3).''.
    (c) Application of Indexing to Provisions Relating to Personal 
Funds.--
            (1) In general.--Section 315(j) of such Act (2 U.S.C. 
        441a(j)), as added by section 103(a), is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Each of the amounts provided under paragraph (1) or (2) shall 
be adjusted for each biennial period beginning after the 1998 general 
election in the same manner as the amounts of limitations on 
contributions established under subsection (a) are adjusted under 
subsection (c)(3).''.
            (2) Conforming amendment.--Section 304(a)(6)(B)(i) of such 
        Act (2 U.S.C. 434(a)(6)(B)(i)), as added by section 103(b), is 
        amended by striking ``section 315(j)(3)'' and inserting 
        ``section 315(j)(4)''.

SEC. 105. PROHIBITION OF LEADERSHIP COMMITTEES.

    (a) Leadership Committee Prohibition.--Section 302 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 432) is amended by adding at 
the end the following new subsection:
    ``(j) A candidate for Federal office or an individual holding 
Federal office may not establish, maintain, finance, or control a 
political committee, other than a principal campaign committee of the 
candidate or the individual.''.
    (b) Conforming Amendment Relating to Joint Fundraising.--Section 
302(e)(3)(A) of such Act (2 U.S.C. 432(e)(3)) is amended by striking 
``except that--'' and all that follows and inserting the following: 
``except that the candidate for the office of President nominated by a 
political party may designate the national committee of such political 
party as a principal campaign committee, but only if that national 
committee maintains separate books of account with respect to its 
function as a principal campaign committee.''.
    (c) Effective Date; Transition Rule.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to elections occurring in years beginning 
        with 1997.
            (2) Transition rule.--
                    (A) In general.--Notwithstanding section 302(j) of 
                the Federal Election Campaign Act of 1971 (as added by 
                subsection (a)), if a political committee established, 
                maintained, financed, or controlled by a candidate for 
                Federal office or an individual holding Federal office 
                (other than a principal campaign committee of the 
                candidate or individual) with respect to an election 
                occurring during 1996 has funds remaining unexpended 
                after the 1996 general election, the committee may make 
                contributions or expenditures of such funds with 
                respect to elections occurring during 1997 or 1998.
                    (B) Disbanding committees; treatment of remaining 
                funds.--Any political committee described in 
                subparagraph (A) shall be disbanded after filing any 
                post-election reports required under section 304 of the 
                Federal Election Campaign Act of 1971 with respect to 
                the 1998 general election. Any funds of such a 
                committee which remain unexpended after the 1998 
                general election and before the date on which the 
                committee disbands shall be returned to contributors or 
                available for any lawful purpose other than use by the 
                candidate or individual involved with respect to an 
                election for Federal office.

SEC. 106. PROHIBITING BUNDLING OF CONTRIBUTIONS TO CANDIDATES BY 
              POLITICAL ACTION COMMITTEES AND LOBBYISTS.

    Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b) is amended by adding at the end the following new subsection:
    ``(c)(1) No political action committee or person required to 
register under the Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et 
seq.) may act as an intermediary or conduit with respect to a 
contribution to a candidate for Federal office.
    ``(2) In this subsection, the term `political action committee' 
means any political committee which is not--
            ``(A) the principal campaign committee of a candidate; or
            ``(B) a political party committee.''.

SEC. 107. DEFINITION OF INDEPENDENT EXPENDITURES.

    Section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431) is amended by striking paragraph (17) and inserting the following:
    ``(17)(A) The term `independent expenditure' means an expenditure 
by a person for a communication expressly advocating the election or 
defeat of a clearly identified candidate which is not made with the 
cooperation or with the prior consent of, or in consultation with, or 
at the request or suggestion of, a candidate or any agent or authorized 
committee of such candidate.
    ``(B) For purposes of this paragraph--
            ``(i) `expressly advocating the election or defeat' means 
        the use in the communication of explicit words such as `vote 
        for', `reelect', `support', `cast your ballot for', `vote 
        against', `defeat', or `reject', accompanied by a reference in 
        the communication to one or more clearly identified candidates, 
        or words such as `vote' for or against a position on an issue, 
        accompanied by a listing in the communication of one or more 
        clearly identified candidates described as for or against a 
        position on that issue;
            ``(ii) `which is not made with the cooperation or with the 
        prior consent of, or in consultation with, or at the request or 
        suggestion of, a candidate or any agent or authorized committee 
        of such candidate' refers to the expenditure in question for 
        the communication made by the person; and
            ``(iii) the term `agent' means any person who has actual 
        oral or written authority, either express or implied, to make 
        or authorize the making of expenditures on behalf of a 
        candidate.
    ``(C) An expenditure by a person for a communication which does not 
contain explicit words expressly advocating the election or defeat of a 
clearly identified candidate shall not be considered an independent 
expenditure.''.

SEC. 108. REQUIREMENTS FOR USE OF PAYROLL DEDUCTIONS FOR CONTRIBUTIONS.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) is amended by adding at the end the following new section:

             ``use of payroll deductions for contributions

    ``Sec. 323. (a) Requirements for Authorization of Deduction.--
            ``(1) In general.--No amounts withheld from an individual's 
        wages or salary during a year may be used for any contribution 
        under this title unless there is in effect an authorization in 
        writing by the individual permitting the withholding of such 
        amounts for the contribution.
            ``(2) Period of authorization.--An authorization described 
        in this subsection may be in effect with respect to an 
        individual for such period as the individual may specify 
        (subject to cancellation under paragraph (3)), except that the 
        period may not be longer than 12 months.
            ``(3) Right of cancellation.--An individual with an 
        authorization in effect under this subsection may cancel or 
        revise the authorization at any time.
    ``(b) Information Provided by Withholding Entity.--
            ``(1) In general.--Each entity withholding wages or salary 
        from an individual with an authorization in effect under 
        subsection (a) shall provide the individual with a statement 
        that the individual may at any time cancel or revise the 
        authorization in accordance with subsection (a)(3).
            ``(2) Timing of notice.--The entity shall provide the 
        information described in paragraph (1) to an individual at the 
        beginning of each calendar year occurring during the period in 
        which the individual's authorization is in effect.''.

               TITLE II--STRENGTHENING POLITICAL PARTIES

SEC. 201. MODIFICATION OF CONTRIBUTION LIMITS AND REQUIREMENTS FOR 
              POLITICAL PARTIES.

    (a) Treatment of Party Contributions Under Aggregate Individual 
Cap.--Section 315(a)(3) of the Federal Election Campaign Act (2 U.S.C. 
441a(a)(3)) is amended by adding at the end the following new sentence: 
``For purposes of this paragraph, in determining the amount of 
contributions made by an individual there shall be excluded any 
contributions made by the individual to a political party or a 
political party committee.''.
    (b) Limitation Amount for Contributions to State Political 
Parties.--Section 315(a)(1)(B) of such Act (2 U.S.C. 441a(a)(1)(B)) is 
amended by inserting after ``national'' the following: ``or State''.

SEC. 202. ALLOWING POLITICAL PARTIES TO OFFSET FUNDS CARRIED OVER FROM 
              PREVIOUS ELECTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 101 and 103(a), is further amended by 
adding at the end the following new subsection:
    ``(k)(1) Subject to paragraph (2), if, in a general election for 
Federal office, a candidate who is the incumbent uses campaign funds 
carried forward from an earlier election cycle, any political party 
committee may make contributions to the nominee of that political party 
to match the funds so carried forward by such incumbent. For purposes 
of this paragraph, funds shall be considered to have been carried 
forward if the funds represent cash on hand as reported in the 
applicable post-general election report filed under section 304(a) for 
the general election involved, plus any amount expended on or before 
the filing of the report for a later election, less legitimate 
outstanding debts relating to the previous election up to the amount 
reported.
    ``(2) The political party contributions under paragraph (1) may be 
made without regard to any limitation amount otherwise applicable to 
such contributions made under subsections (a) or (i), but a candidate 
may not accept contributions under this subsection in excess of the 
total of funds carried forward by the incumbent candidate.''.

SEC. 203. PROHIBITING USE OF NON-FEDERAL FUNDS IN FEDERAL ELECTIONS.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.), as amended by section 108, is further amended by adding 
at the end the following new section:

               ``restrictions on use of non-federal funds

    ``Sec. 324. (a) Prohibiting Use of Funds in Federal Elections.--No 
funds may be expended by a political party committee for the purpose of 
influencing an election for Federal office unless the funds are subject 
to the limitations and prohibitions of this Act, except as may be 
provided in this section.
    ``(b) Restrictions on Use of Funds for Mixed Activities.--
            ``(1) Prohibiting use by national party committees.--A 
        national committee of a political party (including any 
        subordinate committee thereof) may not use any funds which are 
        not subject to the limitations and prohibitions of this Act for 
        any mixed activity.
            ``(2) Mixed activity defined.--In this subsection, the term 
        `mixed activity' means any activity which is both for the 
        purpose of influencing an election for Federal office and for 
        any purpose unrelated to influencing an election for Federal 
        office, including voter registration, absentee ballot programs, 
        and get-out-the-vote programs, but does not include the payment 
        of any administrative or overhead costs, including salaries 
        (other than payments made to individuals for get-out-the-vote 
        activities conducted on the day of an election), rent, 
        fundraising, or communications to members of a political party.
    ``(c) Restrictions on Use of Funds for Mixed Candidate-Specific 
Activities.--
            ``(1) Requiring allocation among candidates.--A political 
        party committee may use funds which are not subject to the 
        limitations and prohibitions of this Act for mixed candidate-
        specific activities if the funds are allocated among the 
        candidates involved on the basis of the time and space 
        allocated to the candidates.
            ``(2) Mixed candidate-specific activity defined.--In this 
        subsection, the term `mixed candidate-specific activity' means 
        any activity which is both for the purpose of promoting a 
        specific candidate or candidates in an election for Federal 
        office and for the purpose of promoting a specific candidate or 
        candidates in any other election.''.

SEC. 204. PERMITTING PARTIES TO HAVE UNLIMITED COMMUNICATION WITH 
              MEMBERS.

    (a) In General.--Section 315(d) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(d)) is amended by adding at the end the 
following new paragraph:
    ``(4)(A) For purposes of applying the limitations established under 
paragraphs (2) and (3), in determining the amount of expenditures made 
by a national committee of a political party or a State committee of a 
political party (including any subordinate committee of a State 
committee), there shall be excluded any amounts expended by the 
committee for communications to the extent the communications are made 
to members of the party.
    ``(B) For purposes of subparagraph (A), an individual shall be 
considered to be a `member' of a political party if any of the 
following apply:
            ``(i) The individual is registered to vote as a member of 
        the party.
            ``(ii) There is a public record that the individual voted 
        in the primary of the party during the most recent primary 
        election.
            ``(iii) The individual has made a contribution to the party 
        and the contribution has been reported to the Commission (in 
        accordance with this Act) or to a State reporting agency.
            ``(iv) The individual has indicated in writing that the 
        individual is a member of the party.''.
    (b) Funds Available for Party Communications.--Section 324 of such 
Act, as added by section 203, is amended by adding at the end the 
following new subsection:
    ``(d) Funds for Party Communications With Members.--Subsection (a) 
shall not apply with respect to funds expended by a political party for 
communications to the extent the communications are made to members of 
the party (as determined in accordance with section 315(d)(4)), except 
that any communications which are both for the purpose of expressly 
advocating the election or defeat of a specific candidate for election 
to Federal office and for any other purpose shall be subject to 
allocation in the same manner as funds expended for mixed candidate-
specific activities under subsection (c).''.

SEC. 205. PROMOTING STATE AND LOCAL PARTY VOLUNTEER AND GRASSROOTS 
              ACTIVITY.

    (a) Encouraging State and Local Party Activities.--
            (1) Contributions.--Section 301(8)(B) of the Federal 
        Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
                    (A) by striking ``and'' at the end of clause 
                (xiii);
                    (B) by striking the period at the end of clause 
                (xiv) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(xv) the payment by a State or local committee of a 
        political party for any of the following activities:
                    ``(I) The listing of the slate of the party's 
                candidates, including the communication of the slate to 
                the public.
                    ``(II) The mailing of materials for or on behalf of 
                specific candidates by volunteers (including labeling 
                envelopes or affixing postage or other indicia to 
                particular pieces of mail), other than the mailing of 
                materials to a commercial list.
                    ``(III) Conducting a telephone bank for or on 
                behalf of specific candidates staffed by volunteers.
                    ``(IV) The distribution of collateral materials 
                (such as pins, bumper stickers, handbills, brochures, 
                posters, party tabloids, and yard signs) for or on 
                behalf of specific candidates (whether by volunteers or 
                otherwise).''.
            (2) Expenditures.--Section 301(9)(B) of such Act (2 U.S.C. 
        431(9)(B)) is amended--
                    (A) by striking ``and'' at the end of clause (ix);
                    (B) by striking the period at the end of clause (x) 
                and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(xi) the payment by a State or local committee of a 
        political party for any of the following activities:
                    ``(I) The listing of the slate of the party's 
                candidates, including the communication of the slate to 
                the public.
                    ``(II) The mailing of materials for or on behalf of 
                specific candidates by volunteers (including labeling 
                envelopes or affixing postage or other indicia to 
                particular pieces of mail), other than the mailing of 
                materials to a commercial list.
                    ``(III) Conducting a telephone bank for or on 
                behalf of specific candidates staffed by volunteers.
                    ``(IV) The distribution of collateral materials 
                (such as pins, bumper stickers, handbills, brochures, 
                posters, party tabloids, and yard signs) for or on 
                behalf of specific candidates (whether by volunteers or 
                otherwise).''.
            (3) Conforming amendments.--(A) Section 301(8)(B)(x) of 
        such Act (2 U.S.C. 431(8)(B)(x)) is amended by striking ``in 
        connection with volunteer activities on behalf of nominees of 
        such party'' and inserting ``in connection with State or local 
        activities, other than any payment described in clause (xv)''.
            (B) Section 301(9)(B)(viii) of such Act (2 U.S.C. 
        431(9)(B)(viii)) is amended by striking ``in connection with 
        volunteer activities on behalf of nominees of such party'' and 
        inserting ``in connection with State or local activities, other 
        than any payment described in clause (xi)''.
    (b) Funds Available for Activities.--
            (1) Permitting use of non-federal funds for mixed 
        activities.--Section 324(b) of such Act, as added by section 
        203, is amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Use by state or local party committees.--A State, 
        local, or district committee of a political party (including 
        any subordinate committee thereof) may use funds which are not 
        subject to the limitations and prohibitions of this Act for 
        mixed activity if the funds are allocated in accordance with 
        the process described in subsection (g).''.
            (2) Funds available for state and local parties.--Section 
        324 of such Act, as added by section 203 and as amended by 
        section 204(b), is amended by adding at the end the following 
        new subsection:
    ``(e) Funds Available for State and Local Party Volunteer and 
Grassroots Activities.--Subsection (a) shall not apply with respect to 
payments described in section 301(8)(B)(xv) or section 301(9)(B)(xi), 
except that any payments which are both for the purpose of expressly 
advocating the election or defeat of a specific candidate for election 
to Federal office and for any other purpose shall be subject to 
allocation in the same manner as funds expended for mixed candidate-
specific activities under subsection (c).''.
            (3) Treatment of intra-party transfers.--Section 324 of 
        such Act, as added by section 203 and as amended by section 
        204(b) and paragraph (2), is amended by adding at the end the 
        following new subsection:
    ``(f) Rule of Construction Regarding Intra-Party Transfers.--
Nothing in this section shall be construed to prohibit the transfer 
between and among national, State, or local party committees (including 
any subordinate committees thereof) of funds which are not subject to 
the limitations and prohibitions of this Act.''.
            (4) Allocation procedures described.--Section 324 of such 
        Act, as added by section 203 and as amended by section 204(b) 
        and paragraphs (2) and (3), is amended by adding at the end the 
        following new subsection:
    ``(g) State and Local Party Committees; Method for Allocating 
Expenditures for Mixed Activities.--
            ``(1) General rule.--All State and local party committees 
        except those covered by paragraph (2) shall allocate their 
        expenses for mixed activities, as described in subsection 
        (b)(2), according to the ballot composition method described as 
        follows:
                    ``(A) Under this method, expenses shall be 
                allocated based on the ratio of Federal offices 
                expected on the ballot to total Federal and non-Federal 
                offices expected on the ballot in the next general 
                election to be held in the committee's State or 
                geographic area. This ratio shall be determined by the 
                number of categories of Federal offices on the ballot 
                and the number of categories of non-Federal offices on 
                the ballot, as described in subparagraph (B).
                    ``(B) In calculating a ballot composition ratio, a 
                State or local party committee shall count the Federal 
                offices of President, United States Senator, and United 
                States Representative, if expected on the ballot in the 
                next general election, as one Federal office each. The 
                committee shall count the non-Federal offices of 
                Governor, State Senator, and State Representative, if 
                expected on the ballot in the next general election, as 
                one non-Federal office each. The committee shall count 
                the total of all other partisan statewide executive 
                candidates, if expected on the ballot in the next 
                general election, as a maximum of two non-Federal 
                offices. State party committees shall also include in 
                the ratio one additional non-Federal office if any 
                partisan local candidates are expected on the ballot in 
                any regularly scheduled election during the 2 year 
                congressional election cycle. Local party committees 
                shall also include in the ratio a maximum of 2 
                additional non-Federal offices if any partisan local 
                candidates are expected on the ballot in any regularly 
                scheduled election during the 2 year congressional 
                election cycle. State and local party committees shall 
                also include in the ratio 1 additional non-Federal 
                office.
            ``(2) Exception for states that do not hold federal and 
        non-federal elections in the same year.--State and local party 
        committees in states that do not hold Federal and non-Federal 
        elections in the same year shall allocate the costs of mixed 
        activities according to the ballot composition method described 
        in paragraph (1), based on a ratio calculated for that calendar 
        year.''.

                 TITLE III--DISCLOSURE AND ENFORCEMENT

SEC. 301. TIMELY REPORTING AND INCREASED DISCLOSURE.

    (a) Deadline for Filing.--
            (1) Requiring reports for all contributions made within 20 
        days of election; requiring reports to be made within 24 
        hours.--Section 304(a)(6)(A) of the Federal Election Campaign 
        Act of 1971 (2 U.S.C. 434(a)(6)(A)) is amended--
                    (A) by striking ``after the 20th day, but more than 
                48 hours before any election'' and inserting ``during 
                the period which begins on the 20th day before an 
                election and ends at the time the polls close for such 
                election''; and
                    (B) by striking ``48 hours'' the second place it 
                appears and inserting the following: ``24 hours (or, if 
                earlier, by midnight of the day on which the 
                contribution is deposited)''.
            (2) Requiring actual delivery by deadline.--
                    (A) In general.--Section 304(a)(6) of such Act (2 
                U.S.C. 434(a)(6)), as amended by section 103(b), is 
                further amended by adding at the end the following new 
                subparagraph:
    ``(D) Notwithstanding paragraph (5), the time at which a 
notification or report under this paragraph is received by the 
Secretary, the Commission, or any other recipient to whom the 
notification is required to be sent shall be considered the time of 
filing of the notification or report with the recipient.''.
                    (B) Conforming amendment.--Section 304(a)(5) of 
                such Act (2 U.S.C. 434(a)(5)) is amended by striking 
                ``paragraph (2)(A)(i) or (4)(A)(ii)'' and inserting 
                ``paragraphs (2)(A)(i), (4)(A)(ii), or (6))''.
    (b) Increasing Electronic Disclosure.--Section 304(a)(6) of such 
Act (2 U.S.C. 434(a)(6)), as amended by section 103(b) and subsection 
(a)(2)(A), is further amended by adding at the end the following new 
subparagraph:
    ``(E)(i) The Commission shall make the information contained in the 
reports submitted under this paragraph available on the Internet and 
publicly available at the offices of the Commission as soon as 
practicable (but in no case later than 24 hours) after the information 
is received by the Commission.
    ``(ii) In this subparagraph, the term `Internet' means the 
international computer network of both Federal and non-Federal 
interoperable packet-switched data networks.''.
    (c) Change in Certain Reporting From a Calendar Year Basis to an 
Election Cycle Basis.--Section 304(b) of such Act (2 U.S.C. 434(b)) is 
amended by inserting ``(or election cycle, in the case of an authorized 
committee of a candidate for Federal office)'' after ``calendar year'' 
each place it appears in paragraphs (2), (3), (4), (6), and (7).
    (d) Clarification of Permissible Use of Facsimile Machines to File 
Reports.--Section 304(a)(11)(A) of such Act (2 U.S.C. 434(a)(11)) is 
amended by striking ``method,'' and inserting ``method (including by 
facsimile device in the case of any report required to be filed within 
24 hours after the transaction reported has occurred),''.
    (e) Requiring Receipt of Independent Expenditure Reports Within 24 
Hours.--
            (1) In general.--Section 304(c)(2) of such Act (2 U.S.C. 
        434(c)(2)) is amended in the matter following subparagraph 
        (C)--
                    (A) by striking ``shall be reported'' and inserting 
                ``shall be filed''; and
                    (B) by adding at the end the following new 
                sentence: ``Notwithstanding subsection (a)(5), the time 
                at which the statement under this subsection is 
                received by the Secretary, the Commission, or any other 
                recipient to whom the notification is required to be 
                sent shall be considered the time of filing of the 
                statement with the recipient.''.
            (2) Conforming amendment.--Section 304(a)(5) of such Act (2 
        U.S.C. 434(a)(5)), as amended by subsection (a)(2)(B), is 
        further amended by striking ``or (6)'' and inserting ``or (6), 
        or subsection (c)(2)''.
    (f) Requiring Record Keeping and Report of Secondary Payments by 
Campaign Committees.--
            (1) Reporting.--Section 304(b)(5)(A) of such Act (2 U.S.C. 
        434(b)(5)(A)) is amended by striking the semicolon at the end 
        and inserting the following: ``, and, if such person in turn 
        makes expenditures which aggregate $500 or more in an election 
        cycle to other persons (not including employees) who provide 
        goods or services to the candidate or the candidate's 
        authorized committees, the name and address of such other 
        persons, together with the date, amount, and purpose of such 
        expenditures;''.
            (2) Record keeping.--Section 302 of such Act (2 U.S.C. 
        432), as amended by section 105(a), is further amended by 
        adding at the end the following new subsection:
    ``(k) A person described in section 304(b)(5)(A) who makes 
expenditures which aggregate $500 or more in an election cycle to other 
persons (not including employees) who provide goods or services to a 
candidate or a candidate's authorized committees shall provide to a 
political committee the information necessary to enable the committee 
to report the information described in such section.''.
            (3) No effect on other reports.--Nothing in the amendments 
        made by this subsection may be construed to affect the terms of 
        any other recordkeeping or reporting requirements applicable to 
        candidates or political committees under title III of the 
        Federal Election Campaign Act of 1971.
    (g) Including Report on Cumulative Contributions and Expenditures 
in Post Election Reports.--Section 304(a)(7) of such Act (2 U.S.C. 
434(a)(7)) is amended--
            (1) by striking ``(7)'' and inserting ``(7)(A)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) In the case of any report required to be filed by this 
subsection which is the first report required to be filed after the 
date of an election, the report shall include a statement of the total 
contributions received and expenditures made as of the date of the 
election.''.
    (h) Including Information on Aggregate Contributions in Report on 
Itemized Contributions.--Section 304(b)(3) of such Act (2 U.S.C. 
434(b)(3)) is amended--
            (1) in subparagraph (A), by inserting after ``such 
        contribution'' the following: ``and the total amount of all 
        such contributions made by such person with respect to the 
        election involved''; and
            (2) in subparagraph (B), by inserting after ``such 
        contribution'' the following: ``and the total amount of all 
        such contributions made by such committee with respect to the 
        election involved''.

SEC. 302. STREAMLINING PROCEDURES AND RULES OF FEDERAL ELECTION 
              COMMISSION.

    (a) Standards for Commission Regulation and Judicial 
Interpretation.--Section 307 of the Federal Election Campaign Act of 
1971 (2 U.S.C. 437d) is amended by adding at the end the following new 
subsection:
    ``(f)(1) When developing prescribed forms and making, amending, or 
repealing rules pursuant to the authority granted to the Commission by 
subsection (a)(8), the Commission shall act in a manner that will have 
the least restrictive effect on the rights of free speech and 
association so protected by the First Article of Amendment to the 
Constitution of the United States.
    ``(2) When the Commission's actions under paragraph (1) are 
challenged, a reviewing court shall hold unlawful and set aside any 
actions of the Commission that do not conform with the principles set 
forth in paragraph (1).''.
    (b) Written Responses to Questions.--
            (1) In general.--Title III of such Act (2 U.S.C. 431 et 
        seq.) is amended by inserting after section 308 the following 
        new section:

                 ``other written responses to questions

    ``Sec. 308A. (a) Permitting Responses.--In addition to issuing 
advisory opinions under section 308, the Commission shall issue written 
responses pursuant to this section with respect to a written request 
concerning the application of this Act, chapter 95 or chapter 96 of the 
Internal Revenue Code of 1986, a rule or regulation prescribed by the 
Commission, or an advisory opinion issued by the Commission under 
section 308, with respect to a specific transaction or activity by the 
person, if the Commission finds the application of the Act, chapter, 
rule, regulation, or advisory opinion to the transaction or activity to 
be clear and unambiguous.
    ``(b) Procedure for Response.--
            ``(1) Analysis by staff.--The staff of the Commission shall 
        analyze each request submitted under this section. If the staff 
        believes that the standard described in subsection (a) is met 
        with respect to the request, the staff shall circulate a 
        statement to that effect together with a draft response to the 
        request to the members of the Commission.
            ``(2) Issuance of response.--Upon the expiration of the 3-
        day period beginning on the date the statement and draft 
        response is circulated (excluding weekends or holidays), the 
        Commission shall issue the response, unless during such period 
        any member of the Commission objects to issuing the response.
    ``(c) Effect of Response.--
            ``(1) Safe harbor.--Notwithstanding any other provisions of 
        law, any person who relies upon any provision or finding of a 
        written response issued under this section and who acts in good 
        faith in accordance with the provisions and findings of such 
        response shall not, as a result of any such act, be subject to 
        any sanction provided by this Act or by chapter 95 or chapter 
        96 of the Internal Revenue Code of 1986.
            ``(2) No reliance by other parties.--Any written response 
        issued by the Commission under this section may only be relied 
        upon by the person involved in the specific transaction or 
        activity with respect to which such response is issued, and may 
        not be applied by the Commission with respect to any other 
        person or used by the Commission for enforcement or regulatory 
        purposes.
    ``(d) Publication of Requests and Responses.--The Commission shall 
make public any request for a written response made, and the responses 
issued, under this section. In carrying out this subsection, the 
Commission may not make public the identity of any person submitting a 
request for a written response unless the person specifically 
authorizes to Commission to do so.
    ``(e) Compilation of Index.--The Commission shall compile, publish, 
and regularly update a complete and detailed index of the responses 
issued under this section through which responses may be found on the 
basis of the subjects included in the responses.''.
            (2) Conforming amendment.--Section 307(a)(7) of such Act (2 
        U.S.C. 437d(a)(7)) is amended by striking ``of this Act'' and 
        inserting ``and other written responses under section 308A''.
    (c) Opportunity for Oral Arguments Before Commission.--Section 
309(a)(3) of such Act (2 U.S.C. 437g(a)(3)) is amended--
            (1) by striking ``(3)'' and inserting ``(3)(A)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) If a respondent submits a brief under subparagraph (A), the 
respondent may submit (at the time of submitting the brief) a request 
to present an oral argument in support of the respondent's brief before 
the Commission. If at least 2 members of the Commission approve of the 
request, the respondent shall be permitted to appear before the 
Commission in open session and make an oral presentation in support of 
the brief and respond to questions of members of the Commission. Such 
appearance shall take place at a time specified by the Commission 
during the 30-day period which begins on the date the request is 
approved, and the Commission may limit the length of the respondent's 
appearance to such period of time as the Commission considers 
appropriate. Any information provided by the respondent during the 
appearance shall be considered by the Commission before proceeding 
under paragraph (4).''.
    (d) Index of Advisory Opinions.--
            (1) In general.--Section 308 of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 437f) is amended by adding at 
        the end the following new subsection:
    ``(e) The Commission shall compile, publish, and regularly update a 
complete and detailed index of the advisory opinions issued under this 
section through which opinions may be found on the basis of the 
subjects included in the opinions.''.
            (2) Effective date.--The Federal Election Commission shall 
        first publish the index of advisory opinions described in 
        section 308(e) of the Federal Election Campaign Act of 1971 (as 
        added by paragraph (1)) not later than 60 days after the date 
        of the enactment of this Act.
    (e) Standard for Initiation of Actions.--Section 309(a)(2) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(2)) is amended 
by striking ``it has reason to believe'' and all that follows through 
``of 1954,'' and inserting the following: ``it has a reason to 
investigate a possible violation of this Act or of chapter 95 or 
chapter 96 of the Internal Revenue Code of 1986 that has occurred or is 
about to occur (based on the same criteria applicable under this 
paragraph prior to the enactment of the Campaign Finance Reform Act of 
1996),''.
    (f) Application of Aggregate Contribution Limit on Calendar Year 
Basis During Non-Election Years.--Section 315(a)(3) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is amended by 
striking the second sentence.
    (g) Repeal Report by Secretary of Commerce on District-Specific 
Voting Age Population.--Section 315(e) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(e)) is amended by striking ``States, of each 
State, and of each congressional district'' and inserting ``States and 
of each State''.
    (h) Commercially Reasonable Loans Not To Be Treated as 
Contributions by Lender.--Section 301(8)(B)(vii) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)(vii)) is amended--
            (1) by striking ``or a depository'' and inserting ``a 
        depository''; and
            (2) by inserting after ``Administration,'' the following: 
        ``or any other commercial lender,''.
    (i) Abolition of Ex Officio Membership of Clerk of House of 
Representatives on Commission.--Section 306(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 437c(a)) is amended--
            (1) in paragraph (1), by striking ``and the Clerk'' and all 
        that follows through ``designees'' and inserting ``or the 
        designee of the Secretary''; and
            (2) in paragraphs (3), (4), and (5), by striking ``and the 
        Clerk of the House of Representatives'' each place it appears.
    (j) Granting Commission Authority To Waive Reporting 
Requirements.--Section 304 of such Act (2 U.S.C. 434), as amended by 
section 101(b), is further amended by adding at the end the following 
new subsection:
    ``(e) The Commission may by unanimous vote relieve any person or 
category of persons of the obligation to file any of the reports 
required by this section, or may change the due dates of any of the 
reports required by this section, if it determines that such action is 
consistent with the purposes of this title. The Commission may waive 
requirements to file reports or change due dates in accordance with 
this subsection through a rule of general applicability or, in a 
specific case, by notifying all the political committees involved.''.
    (k) Permitting Corporations To Communicate With All Employees.--
            (1) In general.--Section 316(b) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by striking 
        ``executive or administrative personnel'' each place it appears 
        in paragraphs (2)(A), (2)(B), (4)(A)(i), (4)(D), and (5) and 
        inserting ``officers or employees''.
            (2) Conforming amendment.--Section 316(b) of such Act is 
        amended by striking paragraph (7).
    (l) Permitting Unlimited Solicitations by Corporations or Labor 
Organizations; Protecting Confidentiality of Contributions Not Greater 
Than $100.--Section 316(b) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441b(b)(3)), as amended by subsection (k)(2), is amended--
            (1) in paragraph (4)(A), by striking ``(B), (C),'' and 
        inserting ``(C)'';
            (2) in paragraph (4)(A)(ii), by striking the period at the 
        end and inserting the following: ``, its officers or employees 
        and their families, employees who are not members and their 
        families, and officers, employees, or stockholders of a 
        corporation (and their families) in which the labor 
        organization represents members working for the corporation.'';
            (3) in paragraph (4), by striking subparagraph (B); and
            (4) by adding at the end the following new paragraph:
    ``(7)(A) Any corporation or labor organization (or separate 
segregated fund established by such a corporation or such a labor 
organization) making solicitations of contributions shall make such 
solicitations in a manner that ensures that the corporation, 
organization, or fund cannot determine who makes a contribution of $100 
or less as a result of such solicitation and who does not make such a 
contribution.
    ``(B) Subparagraph (A) shall not apply with respect to any 
solicitation of contributions of a corporation from its 
stockholders.''.
    (m) Greater Protection Against Force and Reprisals.--Section 
316(b)(3) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b(b)(3)), is amended--
            (1) by redesignating subparagraphs (A) through (C) as 
        subparagraphs (B) through (D); and
            (2) by inserting before subparagraph (B) (as so 
        redesignated) the following new subparagraph:
            ``(A) for such a fund to cause another person to make a 
        contribution or expenditure by physical force, job 
        discrimination, financial reprisals, or the threat of force, 
        job discrimination, or financial reprisal;''.
    (n) Requiring Complainant To Provide Notice to Respondents.--
Section 309(a)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)(1)) is amended by striking the third sentence and 
inserting the following: ``The complaint shall include the names and 
addresses of persons alleged to have committed such a violation. Within 
5 days after receipt of the complaint, the Commission shall provide 
written notice of the complaint together with a copy of the complaint 
to each person described in the previous sentence, except that if the 
Commission determines that it is not necessary for a person described 
in the previous sentence to receive a copy of the complaint, the 
Commission shall provide the person with written notice that the 
complaint has been filed, together with written instructions on how to 
obtain a copy of the complaint without charge from the Commission.''.
    (o) Standard Form for Complaints; Stronger Disclaimer Language.--
            (1) Standard form.--Section 309(a)(1) of the Federal 
        Election Campaign Act of 1971 (2 U.S.C. 437g(a)(1)) is amended 
        by inserting after ``shall be notarized,'' the following: 
        ``shall be in a standard form prescribed by the Commission, 
        shall not include (but may refer to) extraneous materials,''.
            (2) Disclaimer language.--Section 309(a)(1) of such Act (2 
        U.S.C. 437g(a)(1)) is amended--
                    (A) by striking ``(a)(1)'' and inserting 
                ``(a)(1)(A)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B) The written notice of a complaint provided by the Commission 
under subparagraph (A) to a person alleged to have committed a 
violation referred to in the complaint shall include a cover letter (in 
a form prescribed by the Commission) and the following statement: `The 
enclosed complaint has been filed against you with the Federal Election 
Commission. The Commission has not verified or given official sanction 
to the complaint. The Commission will make no decision to pursue the 
complaint for a period of at least 15 days from your receipt of this 
complaint. You may, if you wish, submit a written statement to the 
Commission explaining why the Commission should take no action against 
you based on this complaint. If the Commission should decide to 
investigate, you will be notified and be given further opportunity to 
respond.'''.
    (p) Banning Acceptance of Cash Contributions Greater Than $100.--
Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 101, 103(a)(1), and 202, is further 
amended by adding at the end the following new subsection:
    ``(l) No candidate or political committee may accept any 
contributions of currency of the United States or currency of any 
foreign country from any person which, in the aggregate, exceed 
$100.''.
    (q) Appointment and Service of Staff Director and General Counsel 
of Commission.--
            (1) Appointment; length of term of service.--
                    (A) In general.--The first sentence of section 
                306(f)(1) of the Federal Election Campaign Act of 1971 
                (2 U.S.C. 437c(f)(1)) is amended by striking ``by the 
                Commission'' and inserting the following: ``by an 
                affirmative vote of not less than 4 members of the 
                Commission and may not serve for a term of more than 4 
                consecutive years without reappointment in accordance 
                with this paragraph''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply with respect to any 
                individual serving as the staff director or general 
                counsel of the Federal Election Commission on or after 
                January 1, 1997, without regard to whether or not the 
                individual served as staff director or general counsel 
                prior to such date.
            (2) Treatment of individuals filling vacancies; termination 
        of authority upon expiration of term.--Section 306(f)(1) of 
such Act (2 U.S.C. 437c(f)(1)) is amended by inserting after the first 
sentence the following new sentences: ``An individual appointed as a 
staff director or general counsel to fill a vacancy occurring other 
than by the expiration of a term of office shall be appointed only for 
the unexpired term of the individual he or she succeeds. An individual 
serving as staff director or general counsel may not serve in any 
capacity on behalf of the Commission after the expiration of the 
individual's term unless reappointed in accordance with this 
paragraph.''.
            (3) Appointment of additional staff.--
                    (A) In general.--The last sentence of section 
                306(f)(1) of such Act (2 U.S.C. 437c(f)(1)) is amended 
                by inserting ``not less than 4 members of'' after 
                ``approval of''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply with respect to personnel 
                appointed on or after January 1, 1997.
    (r) Encouraging Citizen Grassroots Activity on Behalf of Federal 
Candidates.--
            (1) Exemption of individual contributions under $100.--
        Section 301(8)(B) of the Federal Election Campaign Act of 1971 
        (2 U.S.C. 431(8)(B)), as amended by section 205(a), is further 
        amended--
                    (A) by striking ``and'' at the end of clause (xiv);
                    (B) by striking the period at the end of clause 
                (xv) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(xvi) any payment of funds on behalf of a candidate 
        (whether in cash or in kind, but not including a direct payment 
        of cash to a candidate or a political committee of the 
        candidate) by an individual from the individual's personal 
        funds which in the aggregate does not exceed $100, if the funds 
        are used for activities carried out by the individual or a 
        member of the individual's family.''.
            (2) Exemption of individual expenditures under $100.--
        Section 301(9)(B) of the Federal Election Campaign Act of 1971 
        (2 U.S.C. 431(9)(B)), as amended by section 205(b), is 
        amended--
                    (A) by striking ``and'' at the end of clause (x);
                    (B) by striking the period at the end of clause 
                (xi) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(xii) any payment of funds on behalf of a candidate 
        (whether in cash or in kind, but not including a direct payment 
        of cash to a candidate or a political committee of the 
        candidate) by an individual from the individual's personal 
        funds which in the aggregate does not exceed $100, if the funds 
        are used for activities carried out by the individual or a 
        member of the individual's family.''.
    (s) Permitting Partnerships To Solicit Contributions and Pay 
Administrative Costs of Political Committees in Same Manner as 
Corporations and Labor Unions.--
            (1) Treatment of contributions.--Section 301(8)(B) of the 
        Federal Election Campaign Act (2 U.S.C. 431(8)(B)), as amended 
        by section 205(a) and subsection (r)(1), is amended--
                    (A) by striking ``and'' at the end of clause (xv);
                    (B) by striking the period at the end of clause 
                (xvi) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(xvii) any payment made or obligation incurred by a 
        partnership in the establishment and maintenance of a political 
        committee, the administration of such a political committee, or 
        the solicitation of contributions to such committee.''.
            (2) Treatment of expenditures.--Section 301(9)(B) of such 
        Act (2 U.S.C. 431(9)(B)), as amended by section 205(b) and 
        subsection (r)(2), is amended--
                    (A) by striking ``and'' at the end of clause (xi);
                    (B) by striking the period at the end of clause 
                (xii) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(xiii) any payment made or obligation incurred by a 
        partnership in the establishment and maintenance of a political 
        committee, the administration of such a political committee, or 
        the solicitation of contributions to such committee.''.

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall take effect January 1, 1997.

SEC. 402. SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
the application thereof to any person or circumstance, is held invalid, 
the validity of the remainder of the Act and the application of such 
provision to other persons and circumstances shall not be affected 
thereby.

SEC. 403. EXPEDITED COURT REVIEW.

    (a) Right To Bring Action.--The Federal Election Commission, a 
political committee under title III of the Federal Election Campaign 
Act of 1971, or any individual eligible to vote in any election for the 
office of President of the United States may institute an action in an 
appropriate district court of the United States (including an action 
for declaratory judgment) as may be appropriate to construe the 
constitutionality of any provision of this Act or any amendment made by 
this Act.
    (b) Hearing by Three-Judge Court.--Upon the institution of an 
action described in subsection (a), a district court of three judges 
shall immediately be convened to decide the action pursuant to section 
2284 of title 28, United States Code. Such action shall be advanced on 
the docket and expedited to the greatest extent possible.
    (c) Appeal of Initial Decision to Supreme Court.--An appeal may be 
taken directly to the Supreme Court of the United States from any 
interlocutory order or final judgment, decree, or order issued by the 
court of 3 judges convened pursuant to subsection (b) in an action 
described in subsection (a). Such appeal shall be brought not later 
than 20 days after the issuance by the court of the judgment, decree, 
or order.
    (d) Expedited Review by Supreme Court.--The Supreme Court shall 
accept jurisdiction over, advance on the docket, and expedite to the 
greatest extent possible an appeal taken pursuant to subsection (c).