[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1219 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 456

104th CONGRESS

  2d Session

                                S. 1219

_______________________________________________________________________

                                 A BILL

 To reform the financing of Federal elections, and for other purposes.

_______________________________________________________________________

                             June 25, 1996

                         Placed on the calendar





                                                       Calendar No. 456
104th CONGRESS
  2d Session
                                S. 1219

 To reform the financing of Federal elections, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            September 7 (legislative day, September 5), 1995

  Mr. McCain (for himself, Mr. Feingold, Mr. Thompson, Mr. Pell, Mr. 
Wellstone, Mr. Simon, Mr. Simpson, Mr. Bingaman, Mr. Nunn, Mr. Graham, 
  Mr. Kerry, Mr. Dodd, Mr. Kerrey, Ms. Moseley-Braun, Mrs. Kassebaum, 
    Mrs. Murray, Mr. Wyden, Mr. Kohl, and Mr. Glenn) introduced the 
 following bill; which was read twice and referred to the Committee on 
                        Rules and Administration

                             June 20, 1996

              Committee discharged; considered and amended

                             June 25, 1996

                         Placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To reform the financing of Federal elections, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senate Campaign Finance Reform Act 
of 1996''.

SEC. 2. AMENDMENT OF CAMPAIGN ACT; TABLE OF CONTENTS.

    (a) Amendment of FECA.--When used in this Act, the term ``FECA'' 
means the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.).
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Amendment of campaign Act; table of contents.
         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. Senate election spending limits and benefits.
Sec. 102. Free broadcast time.
Sec. 103. Broadcast rates and preemption.
Sec. 104. Reduced postage rates.
Sec. 105. Contribution limit for eligible Senate candidates.
Sec. 106. Reporting requirement for eligible Senate candidates.
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

  Subtitle A--Elimination of Political Action Committees From Federal 
                          Election Activities

Sec. 201. Ban on activities of political action committees in Federal 
                            elections.
   Subtitle B--Provisions Relating to Soft Money of Political Parties

Sec. 211. Soft money of political parties.
Sec. 212. State party grassroots funds.
Sec. 213. Reporting requirements.
     Subtitle C--Soft Money of Persons Other Than Political Parties

Sec. 221. Soft money of persons other than political parties.
                       Subtitle D--Contributions

Sec. 231. Contributions through intermediaries and conduits.
                  Subtitle E--Independent Expenditures

Sec. 241. Clarification of definitions relating to independent 
                            expenditures.
Sec. 242. Reporting requirements for certain independent expenditures.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Restrictions on use of campaign funds for personal purposes.
Sec. 302. Campaign advertising amendments.
Sec. 303. Filing of reports using computers and facsimile machines.
Sec. 304. Audits.
Sec. 305. Limit on congressional use of the franking privilege.
Sec. 306. Authority to seek injunction.
Sec. 307. Reporting requirements for contributions of $50 or more.
             TITLE IV--CONSTITUTIONALITY AND EFFECTIVE DATE

Sec. 401. Severability.
Sec. 402. Expedited review of constitutional issues.
Sec. 403. Effective date.
Sec. 404. Regulations.

         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

    (a) In General.--FECA is amended by adding at the end the following 
new title:

 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.

    ``(a) In General.--For purposes of this title, a candidate is an 
eligible Senate candidate if the candidate--
            ``(1) meets the primary and general election filing 
        requirements of subsections (c) and (d);
            ``(2) meets the primary and runoff election expenditure 
        limits of subsection (b);
            ``(3) meets the threshold contribution requirements of 
        subsection (e);
            ``(4) does not exceed the limitation on expenditures from 
        personal funds under section 502(a); and
            ``(5) meets the in-State contribution requirements of 
        subsection (f).
    ``(b) Primary and Runoff Expenditure Limits.--
            ``(1) In general.--The requirements of this subsection are 
        met if--
                    ``(A) the candidate or the candidate's authorized 
                committees did not make expenditures for the primary 
                election in excess of the lesser of--
                            ``(i) 67 percent of the general election 
                        expenditure limit under section 502(b); or
                            ``(ii) $2,750,000; and
                    ``(B) the candidate and the candidate's authorized 
                committees did not make expenditures for any runoff 
                election in excess of 20 percent of the general 
                election expenditure limit under section 502(b).
            ``(2) Indexing.--The $2,750,000 amount under paragraph 
        (1)(A)(ii) shall be increased as of the beginning of each 
        calendar year based on the increase in the price index 
        determined under section 315(c), except that the base period 
        shall be calendar year 1995.
    ``(c) Primary Filing Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if the candidate files with the Commission a certification 
        that--
                    ``(A) the candidate and the candidate's authorized 
                committees--
                            ``(i) will meet the primary and runoff 
                        election expenditure limits of subsection (b); 
                        and
                            ``(ii) will accept only an amount of 
                        contributions for the primary and runoff 
                        elections that does exceed those limits;
                    ``(B) the candidate and the candidate's authorized 
                committees will meet the limitation on expenditures 
                from personal funds under section 502(a); and
                    ``(C) the candidate and the candidate's authorized 
                committees will meet the general election expenditure 
                limit under section 502(b).
            ``(2) Deadline for filing certification.--The certification 
        under paragraph (1) shall be filed not later than the date the 
        candidate files as a candidate for the primary election.
    ``(d) General Election Filing Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if the candidate files a certification with the Commission 
        under penalty of perjury that--
                    ``(A) the candidate and the candidate's authorized 
                committees--
                            ``(i) met the primary and runoff election 
                        expenditure limits under subsection (b);
                            ``(ii) did not accept contributions for the 
                        primary or runoff election in excess of the 
                        primary or runoff expenditure limit under 
                        subsection (b), whichever is applicable, 
                        reduced by any amounts transferred to the 
                        current election cycle from a preceding 
                        election cycle; and
                            ``(iii) did not accept contributions for 
                        the primary or runoff election that caused the 
                        candidate to exceed the limitation on 
                        contributions from out-of-State residents under 
                        subsection (f);
                    ``(B) at least one other candidate has qualified 
                for the same general election ballot under the law of 
                the candidate's State;
                    ``(C) the candidate and the authorized committees 
                of the candidate--
                            ``(i) except as otherwise provided by this 
                        title, will not make expenditures that exceed 
                        the general election expenditure limit under 
                        section 502(b);
                            ``(ii) will not accept any contributions in 
                        violation of section 315; and
                            ``(iii) except as otherwise provided by 
                        this title, will not accept any contribution 
                        for the general election involved to the extent 
                        that the contribution--
                                    ``(I) would cause the aggregate 
                                amount of contributions to exceed the 
                                sum of the amount of the general 
                                election expenditure limit under 
                                section 502(b), reduced by any amounts 
                                transferred to the current election 
                                cycle from a previous election cycle 
                                and not taken into account under 
                                subparagraph (A)(ii); or
                                    ``(II) would cause the candidate to 
                                exceed the limitation on contributions 
                                from out-of-State residents under 
                                subsection (f); and
                    ``(D) the candidate intends to make use of the 
                benefits provided under section 503.
            ``(2) Deadline for filing certification.--The certification 
        under paragraph (1) shall be filed not later than 7 days after 
        the earlier of--
                    ``(A) the date on which the candidate qualifies for 
                the general election ballot under State law; or
                    ``(B) if under State law, a primary or runoff 
                election to qualify for the general election ballot 
                occurs after September 1, the date on which the 
                candidate wins the primary or runoff election.
    ``(e) Threshold Contribution Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if the candidate and the candidate's authorized committees 
        have received allowable contributions during the applicable 
        period in an amount at least equal to the lesser of--
                    ``(A) 10 percent of the general election 
                expenditure limit under section 502(b); or
                    ``(B) $250,000.
            ``(2) Definitions.--In this subsection:
                    ``(A) Allowable contribution.--The term `allowable 
                contribution'--
                            ``(i) means a contribution that is made as 
                        a gift of money by an individual pursuant to a 
                        written instrument identifying the individual 
                        as the contributor; but
                            ``(ii) does not include a contribution from 
                        an individual residing outside the candidate's 
                        State to the extent that acceptance of the 
                        contribution would bring a candidate out of 
                        compliance with subsection (f).
                    ``(B) Applicable period.--The term `applicable 
                period' means--
                            ``(i) the period beginning on January 1 of 
                        the calendar year preceding the calendar year 
                        of the general election involved and ending on 
                        the date on which the certification under 
                        subsection (c)(2) is filed by the candidate; or
                            ``(ii) in the case of a special election 
                        for the office of Senator, the period beginning 
                        on the date on which the vacancy in the office 
                        occurs and ending on the date of the general 
                        election.
    ``(f) Limitation on Out-of-State Contributions.--
            ``(1) Requirements.--
                    ``(A) In general.--The requirements of this 
                subsection are met if at least 60 percent of the total 
                amount of contributions accepted by the candidate and 
                the candidate's authorized committees are from 
                individuals who are legal residents of the candidate's 
                State.
                    ``(B) Special rule for small states.--In the case 
                of a candidate to which the general election 
                expenditure limit under section 502(b)(1)(B)(i) 
                applies, the requirements of this subsection are met 
                if, at the option of the candidate--
                            ``(i) at least 60 percent of the total 
                        amount of contributions accepted by the 
                        candidate and the candidate's authorized 
                        committees are from individuals who are legal 
                        residents of the candidate's State; or
                            ``(ii) at least 60 percent of the number of 
                        individuals whose names are reported to the 
                        Commission as individuals from whom the 
                        candidate and the candidate's authorized 
                        committees accept contributions are legal 
                        residents of the candidate's State.
            ``(2) Personal funds.--For purposes of paragraph (1), 
        amounts consisting of funds from sources described in section 
        502(a) shall be treated as contributions from individuals 
        residing outside the candidate's State.
            ``(3) Time for determination.--A determination whether the 
        requirements of paragraph (1) are met shall be made each time a 
        candidate is required to file a report under section 304 and 
        shall be made on an aggregate basis.
            ``(4) Reporting requirements.--In addition to information 
        required to be reported under section 304, a candidate that 
        elects to comply with the requirements of paragraph (1)(B)(ii) 
        shall include in each report required to be filed under section 
        304 the name and address of each individual that, during the 
        calendar year in which the reporting period occurs, makes 
        contributions aggregating $20 or more.

``SEC. 502. LIMITATION ON EXPENDITURES.

    ``(a) Limitation on Use of Personal Funds.--
            ``(1) In general.--The aggregate amount of expenditures 
        that may be made during an election cycle by an eligible Senate 
        candidate or the candidate's authorized committees from the 
        sources described in paragraph (2) shall not exceed the lesser 
        of--
                    ``(A) 10 percent of the general election 
                expenditure limit under subsection (b); or
                    ``(B) $250,000.
            ``(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) personal loans incurred by the candidate and 
                members of the candidate's immediate family.
            ``(3) Amended declaration.--A candidate who--
                    ``(A) declares, pursuant to this title, that the 
                candidate does not intend to expend funds described in 
                paragraph (2) in excess of the amount applicable to the 
                candidate under paragraph (1); and
                    ``(B) subsequently changes the declaration or 
                expends such funds in excess of that amount,
        shall file an amended declaration with the Commission and 
        notify all other candidates for the same office not later than 
        24 hours after changing the declaration or exceeding the 
        limits, whichever occurs first, by sending a notice by 
        certified mail, return receipt requested.
    ``(b) General Election Expenditure Limit.--
            ``(1) In general.--Except as otherwise provided in this 
        title, the aggregate amount of expenditures for a general 
        election by an eligible Senate candidate and the candidate's 
        authorized committees shall not exceed the lesser of--
                    ``(A) $5,500,000; or
                    ``(B) the greater of--
                            ``(i) $950,000; or
                            ``(ii) $400,000; plus
                                    ``(I) 30 cents multiplied by the 
                                voting age population not in excess of 
                                4,000,000; and
                                    ``(II) 25 cents multiplied by the 
                                voting age population in excess of 
                                4,000,000.
            ``(2) Exception.--In the case of an eligible Senate 
        candidate in a State that has not more than 1 transmitter for a 
        commercial Very High Frequency (VHF) television station 
        licensed to operate in that State, paragraph (1)(B)(ii) shall 
        be applied by substituting--
                    ``(A) `80 cents' for `30 cents' in subclause (I); 
                and
                    ``(B) `70 cents' for `25 cents' in subclause (II).
            ``(3) Indexing.--The amount otherwise determined under 
        paragraph (1) for any calendar year shall be increased by the 
        same percentage as the percentage increase for such calendar 
        year under section 501(b)(2).
    ``(c) Payment of Taxes.--The limitation under subsection (b) shall 
not apply to any expenditure for Federal, State, or local taxes with 
respect to earnings on contributions raised.
    ``(d) Exceptions for Complying Candidates Running Against 
Noncomplying Candidates.--
            ``(1) Excessive contributions to, or personal expenditures 
        by, opposing candidate.--
                    ``(A) 10 percent excess.--
                            ``(i) In general.--If any opponent of an 
                        eligible Senate candidate is a noneligible 
                        candidate who--
                                    ``(I) has received contributions; 
                                or
                                    ``(II) has made expenditures from a 
                                source described in subsection (a);
                        in an aggregate amount equal to 110 percent of 
                        the general election expenditure limit, primary 
                        election expenditure limit, or runoff election 
                        expenditure limit applicable to the eligible 
                        Senate candidate, the general election 
                        expenditure limit, primary election expenditure 
                        limit, or runoff election expenditure limit (as 
                        the case may be) applicable to the eligible 
                        Senate candidate shall be increased by 20 
                        percent.
                            ``(ii) Fundraising in anticipation of 
                        increase.--Notwithstanding any other provision 
                        of this title, if any opponent of an eligible 
                        Senate candidate is a noneligible candidate 
                        who--
                                    ``(I) has received contributions; 
                                or
                                    ``(II) has made expenditures from a 
                                source described in subsection (a);
                        in an aggregate amount equal to 50 percent of 
                        the general election expenditure limit, primary 
                        election expenditure limit, or runoff election 
                        expenditure limit applicable to the eligible 
                        Senate candidate, the eligible Senate candidate 
                        may accept contributions in excess of the 
                        general election expenditure limit, primary 
                        election expenditure limit, or runoff election 
                        expenditure limit (as the case may be) so long 
                        as the eligible Senate candidate does not make 
                        any expenditures with such excess contributions 
                        before becoming entitled to an increase in the 
                        limit under clause (i).
                    ``(B) 50 percent excess.--If any opponent of an 
                eligible Senate candidate is a noneligible candidate 
                who--
                            ``(i) has received contributions; or
                            ``(ii) has made expenditures from a source 
                        described in subsection (a);
                in an aggregate amount equal to 150 percent of the 
                general election expenditure limit, primary election 
                expenditure limit, or runoff election expenditure limit 
                applicable to the eligible Senate candidate, the 
                general election expenditure limit, primary election 
                expenditure limit, or runoff election expenditure limit 
                (as the case may be) applicable to the eligible Senate 
                candidate shall be increased by 50 percent.
                    ``(C) 100 percent excess.--If any opponent of an 
                eligible Senate candidate is a noneligible candidate 
                who--
                            ``(i) has received contributions; or
                            ``(ii) has made expenditures from a source 
                        described in subsection (a);
                in an aggregate amount equal to 200 percent of the 
                general election expenditure limit, primary election 
                expenditure limit, or runoff election expenditure limit 
                applicable to the eligible Senate candidate, the 
                general election expenditure limit, primary election 
                expenditure limit, or runoff election expenditure limit 
                (as the case may be) applicable to the eligible Senate 
                candidate shall be increased by 100 percent.
            ``(2) Revocation of eligibility of opponent.--If the status 
        of eligible Senate candidate of any opponent of an eligible 
        Senate candidate is revoked under section 505(a), the general 
        election expenditure limit applicable to the eligible Senate 
        candidate shall be increased by 20 percent.
    ``(e) Expenditures in Response to Independent Expenditures.--If an 
eligible Senate candidate is notified by the Commission under section 
304(c)(4) that independent expenditures totaling $10,000 or more have 
been made in the same election in favor of another candidate or against 
the eligible candidate, the eligible candidate shall be permitted to 
spend an amount equal to the amount of the independent expenditures, 
and any such expenditures shall not be subject to any limit applicable 
under this title to the eligible candidate for the election.

``SEC. 503. BENEFITS THAT ELIGIBLE CANDIDATES ARE ENTITLED TO RECEIVE.

    ``An eligible Senate candidate shall be entitled to receive--
            ``(1) the broadcast media rates provided under section 
        315(b) of the Communications Act of 1934;
            ``(2) the free broadcast time provided under section 315(c) 
        of the Communications Act of 1934; and
            ``(3) the reduced postage rates provided in section 3626(e) 
        of title 39, United States Code.

``SEC. 504. CERTIFICATION BY COMMISSION.

    ``(a) In General.--Not later than 48 hours after an eligible 
candidate qualifies for a general election ballot, the Commission shall 
certify the candidate's eligibility for free broadcast time under 
section 315(c) of the Communications Act of 1934. The Commission shall 
revoke the certification if the Commission determines that a candidate 
fails to continue to meet the requirements of this title.
    ``(b) Determinations by Commission.--A determination (including a 
certification under subsection (a)) made by the Commission under this 
title shall be final, except to the extent that the determination is 
subject to examination and audit by the Commission under section 505.

``SEC. 505. REVOCATION; MISUSE OF BENEFITS.

    ``(a) Revocation of Status.--
            ``(1) In general.--If the Commission determines that any 
        eligible Senate candidate--
                    ``(A) has received contributions in excess of 110 
                percent of--
                            ``(i) the applicable primary election limit 
                        under this title;
                            ``(ii) the applicable general election 
                        limit under this title; or
                            ``(iii) the limitation on contributions 
                        from out-of-State residents under section 
                        501(f); or
                    ``(B) has expended personal funds in excess of 110 
                percent of the limit under section 502(a),
        the Commission shall revoke the certification of the candidate 
        as an eligible Senate candidate and notify the candidate of the 
        revocation.
            ``(2) Payment of value of benefits.--On receipt of 
        notification of revocation of eligibility under paragraph (1), 
        a candidate--
                    ``(A) shall pay an amount equal to the value of the 
                benefits received under this title; and
                    ``(B) shall be ineligible for benefits available 
                under section 315(b) of the Communications Act of 1934 
                (47 U.S.C. 315(b)) for the duration of the election 
                cycle.
    ``(b) Misuse of Benefits.--If the Commission determines that any 
benefit made available to an eligible Senate candidate under this title 
was not used as provided for in this title or that a candidate has 
violated any of the spending limits contained in this Act, the 
Commission shall so notify the candidate, and the candidate shall pay 
an amount equal to the value of the benefit.''.
    (b) Transition Period.--Expenditures made before January 1, 1997, 
shall not be counted as expenditures for purposes of the limitations 
contained in the amendment made by subsection (a).

SEC. 102. FREE BROADCAST TIME.

    (a) In General.--Section 315 of the Communications Act of 1934 (47 
U.S.C. 315) is amended--
            (1) in the third sentence of subsection (a) by striking 
        ``within the meaning of this subsection'' and inserting 
        ``within the meaning of this subsection and subsection (c)'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Free Broadcast Time.--
            ``(1) In general.--Except as provided in paragraph (3), 
        each eligible Senate candidate who has qualified for the 
        general election ballot as a candidate of a major or minor 
        party shall be entitled to receive a total of 30 minutes of 
        free broadcast time from broadcasting stations within the 
        candidate's State or an adjacent State.
            ``(2) Time.--
                    ``(A) Prime time.--Unless a candidate elects 
                otherwise, the broadcast time made available under this 
                subsection shall be between 6:00 p.m. and 10:00 p.m. on 
                any day that falls on Monday through Friday.
                    ``(B) Length of broadcast.--Except as otherwise 
                provided in this Act, a candidate may use such time as 
                the candidate elects, but time may not be used in 
                lengths of less than 30 seconds or more than 5 minutes.
                    ``(C) Maximum required of any one station.--A 
                candidate may not request that more than 15 minutes of 
                free broadcast time be aired by any one broadcasting 
                station.
            ``(3) More than 2 candidates.--In the case of an election 
        among more than 2 candidates described in paragraph (1), only 
        60 minutes of broadcast time shall be available for all such 
        candidates, and broadcast time shall be allocated as follows:
                    ``(A) Minor party candidates.--The amount of 
                broadcast time that shall be provided to the candidate 
                of a minor party shall be equal to 60 minutes 
                multiplied by the percentage of the number of popular 
                votes received by the candidate of that party in the 
                preceding general election for the Senate in the State 
                (or if subsection (e)(4)(B) applies, the percentage 
                determined under that subsection).
                    ``(B) Major party candidates.--The amount of 
                broadcast time remaining after assignment of broadcast 
                time to minor party candidates under clause (i) shall 
                be allocated equally between the major party 
                candidates.
            ``(4) Only 1 candidate.--In the case of an election in 
        which only 1 candidate qualifies to be on the general election 
        ballot, no time shall be required to be provided by a 
        broadcasting station under this subsection.
            ``(5) Exemption.--The Federal Election Commission shall by 
        regulation exempt from the requirements of this subsection--
                    ``(A) a licensee the signal of which is broadcast 
                substantially nationwide; and
                    ``(B) a licensee that establishes that the 
                requirements of this subsection would impose a 
                significant economic hardship on the licensee.''; and
            (4) in subsection (d) (as redesignated by paragraph (2))--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(3) the term `major party' means, with respect to an 
        election for the United States Senate in a State, a political 
        party whose candidate for the United States Senate in the 
        preceding general election for the Senate in that State 
        received, as a candidate of that party, 25 percent or more of 
        the number of popular votes received by all candidates for the 
        Senate;
            ``(4) the term `minor party' means, with respect to an 
        election for the United States Senate in a State, a political 
        party--
                    ``(A) whose candidate for the United States Senate 
                in the preceding general election for the Senate in 
                that State received 5 percent or more but less than 25 
                percent of the number of popular votes received by all 
                candidates for the Senate; or
                    ``(B) whose candidate for the United States Senate 
                in the current general election for the Senate in that 
                State has obtained the signatures of at least 5 percent 
                of the State's registered voters, as determined by the 
                chief voter registration official of the State, in 
                support of a petition for an allocation of free 
                broadcast time under this subsection; and
            ``(5) the term `Senate election cycle' means, with respect 
        to an election to a seat in the United States Senate, the 6-
        year period ending on the date of the general election for that 
        seat.''.
    (b) Jurisdiction Over Challenges to Broadcast Media Rates and Free 
Broadcast Time.--
            (1) In general.--The United States Court of Federal Claims 
        shall have exclusive jurisdiction over any action challenging 
        the constitutionality of the broadcast media rates and free 
        broadcast time required to be offered to political candidates 
        under section 503 of the Federal Election Campaign Act of 1971 
        and section 315 of the Communications Act of 1934.
            (2) Remedy.--Money damages shall be the sole and exclusive 
        remedy in an action under paragraph (1), and only an individual 
        or entity that suffers actual financial injury shall have 
        standing to maintain such an action.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1997.

SEC. 103. BROADCAST RATES AND PREEMPTION.

    (a) Broadcast Rates.--Section 315(b) of the Communications Act of 
1934 (47 U.S.C. 315(b)) is amended--
            (1) by striking ``(b) The charges'' and inserting the 
        following:
    ``(b) Broadcast Media Rates.--
            ``(1) In general.--The charges'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) in paragraph (1)(A) (as redesignated by paragraph 
        (2))--
                    (A) by striking ``forty-five'' and inserting 
                ``30''; and
                    (B) by striking ``lowest unit charge of the station 
                for the same class and amount of time for the same 
                period'' and inserting ``lowest charge of the station 
                for the same amount of time for the same period on the 
                same date''; and
            (4) by adding at the end the following:
            ``(2) Eligible senate candidates.--In the case of an 
        eligible Senate candidate (within the meaning of section 501(a) 
        of the Federal Election Campaign Act), the charges for the use 
        of a television broadcasting station during the 30-day period 
        and 60-day period referred to in paragraph (1)(A) shall not 
        exceed 50 percent of the lowest charge described in paragraph 
        (1)(A).''.
    (b) Preemption; Access.--Section 315 of the Communications Act of 
1934 (47 U.S.C. 315), as amended by section 102(a), is amended--
            (1) by redesignating subsections (d) and (e) (as 
        redesignated by section 102(a)(2)), as subsections (e) and (f), 
        respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Preemption.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        licensee shall not preempt the use, during any period specified 
        in subsection (b)(1)(A), of a broadcasting station by an 
        eligible Senate candidate who has purchased and paid for such 
        use pursuant to subsection (b)(2).
            ``(2) Circumstances beyond control of licensee.--If a 
        program to be broadcast by a broadcasting station is preempted 
        because of circumstances beyond the control of the broadcasting 
        station, any candidate advertising spot scheduled to be 
        broadcast during that program may also be preempted.''.
    (c) Revocation of License for Failure To Permit Access.--Section 
312(a)(7) of the Communications Act of 1934 (47 U.S.C. 312(a)(7)) is 
amended--
            (1) by striking ``or repeated'';
            (2) by inserting ``or cable system'' after ``broadcasting 
        station''; and
            (3) by striking ``his candidacy'' and inserting ``the 
        candidacy of the candidate, under the same terms, conditions, 
        and business practices as apply to the most favored advertiser 
        of the licensee''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1997.

SEC. 104. REDUCED POSTAGE RATES.

    (a) In General.--Section 3626(e) of title 39, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``and the National'' and 
                        inserting ``the National''; and
                            (ii) by inserting before the semicolon the 
                        following: ``, and, subject to paragraph (3), 
                        the principal campaign committee of an eligible 
                        Senate candidate;'';
                    (B) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (C) in subparagraph (C), by striking the period and 
                inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(D) the term `principal campaign committee' has the 
        meaning stated in section 301 of the Federal Election Campaign 
        Act of 1971; and
            ``(E) the term `eligible Senate candidate' means an 
        eligible Senate candidate (within the meaning of section 501(a) 
        of the Federal Election Campaign Act of 1971).''; and
            (2) by adding after paragraph (2) the following:
    ``(3) The rate made available under this subsection with respect to 
an eligible Senate candidate shall apply only to that number of pieces 
of mail that is equal to 2 times the number of individuals in the 
voting age population (as certified under section 315(e) of the Federal 
Election Campaign Act of 1971) of the State.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1997.

SEC. 105. CONTRIBUTION LIMIT FOR ELIGIBLE SENATE CANDIDATES.

    Section 315(a)(1) of FECA (2 U.S.C. 441a(a)(1)) is amended--
            (1) in subparagraph (A) by inserting ``except as provided 
        in subparagraph (B),'' before ``to'';
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively; and
            (3) by inserting after subparagraph (A) the following:
            ``(B) if the general election expenditure, primary election 
        expenditure limit, or runoff election expenditure limit 
        applicable to an eligible Senate candidate has been increased 
        under section 502(d), to the eligible Senate candidate and the 
        authorized political committees of the candidate with respect 
        to any election for the office of United States Senator, which, 
        in the aggregate, exceed $2,000;''.

SEC. 106. REPORTING REQUIREMENT FOR ELIGIBLE SENATE CANDIDATES.

    Section 304(b)(2) of FECA (2 U.S.C. 434(b)(2)) is amended by 
striking ``and'' at the end of subparagraph (J), by striking the period 
at the end of subparagraph (K) and inserting ``; and'', and by adding 
at the end the following new subparagraph:
                    ``(L) in the case of an eligible Senate candidate, 
                the total amount of contributions from individuals who 
                are residents of the State in which the candidate seeks 
                office.''.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

  Subtitle A--Elimination of Political Action Committees From Federal 
                          Election Activities

SEC. 201. BAN ON ACTIVITIES OF POLITICAL ACTION COMMITTEES IN FEDERAL 
              ELECTIONS.

    (a) In General.--Title III of FECA (2 U.S.C. 301 et seq.) is 
amended by adding at the end the following:

``SEC. 324. BAN ON FEDERAL ELECTION ACTIVITIES BY POLITICAL ACTION 
              COMMITTEES.

    ``Notwithstanding any other provision of this Act, no person other 
than an individual or a political committee may make a contribution to 
a candidate or candidate's authorized committee.''.
    (b) Definition of Political Committee.--(1) Section 301(4) of FECA 
(2 U.S.C. 431(4)) is amended to read as follows:
            ``(4) The term `political committee' means--
                    ``(A) the principal campaign committee of a 
                candidate;
                    ``(B) any national, State, or district committee of 
                a political party, including any subordinate committee 
                thereof;
                    ``(C) any local committee of a political party 
                that--
                            ``(i) receives contributions aggregating in 
                        excess of $5,000 during a calendar year;
                            ``(ii) makes payments exempted from the 
                        definition of contribution or expenditure under 
                        paragraph (8) or (9) aggregating in excess of 
                        $5,000 during a calendar year; or
                            ``(iii) makes contributions or expenditures 
                        aggregating in excess of $1,000 during a 
                        calendar year; and
                    ``(D) any committee jointly established by a 
                principal campaign committee and any committee 
                described in subparagraph (B) or (C) for the purpose of 
                conducting joint fundraising activities.''.
    (2) Section 316(b)(2) of FECA (2 U.S.C. 441b(b)(2)) is amended--
            (A) by inserting ``or'' after ``subject;'';
            (B) by striking ``and their families; and'' and inserting 
        ``and their families.''; and
            (C) by striking subparagraph (C).
    (c) Candidate's Committees.--(1) Section 315(a) of FECA (2 U.S.C. 
441a(a)) is amended by adding at the end the following new paragraph:
    ``(9) For the purposes of the limitations provided by paragraphs 
(1) and (2), any political committee that is established, financed, 
maintained, or controlled, directly or indirectly, by any candidate or 
Federal officeholder shall be deemed to be an authorized committee of 
such candidate or officeholder.''.
    (2) Section 302(e)(3) of FECA (2 U.S.C. 432) is amended to read as 
follows:
    ``(3) No political committee that supports, or has supported, more 
than one candidate may be designated as an authorized committee, except 
that--
            ``(A) a candidate for the office of President nominated by 
        a political party may designate the national committee of such 
        political party as the candidate's principal campaign 
        committee, if that national committee maintains separate books 
        of account with respect to its functions as a principal 
        campaign committee; and
            ``(B) a candidate may designate a political committee 
        established solely for the purpose of joint fundraising by such 
        candidates as an authorized committee.''.
    (d) Rules Applicable When Ban Not in Effect.--(1) For purposes of 
FECA, during any period beginning after the effective date in which the 
limitation under section 324 of that Act (as added by subsection (a)) 
is not in effect--
            (A) the amendments made by subsections (a), (b), and (c) 
        shall not be in effect;
            (B) it shall be unlawful for a multicandidate political 
        committee, intermediary, or conduit to make a contribution to a 
        candidate for election, or nomination for election, to Federal 
        office (or an authorized committee) to the extent that the 
        making or accepting of the contribution will cause the amount 
        of contributions received by the candidate and the candidate's 
        authorized committees from multicandidate political committees, 
        intermediaries, or conduits to exceed 20 percent of the 
        aggregate Federal election spending limits applicable to the 
        candidate for the election cycle; and
            (C) it shall be unlawful for a political committee, 
        intermediary, or conduit to make a contribution to a candidate 
        for election, or a nomination for an election, to Federal 
        office (or an authorized committee of such candidate) in excess 
        of the amount an individual is allowed to give directly to a 
        candidate or a candidate's authorized committee.
For purposes of this paragraph, the term ``intermediary or conduit'' 
has the meaning stated in section 315(a)(8) of FECA.
    (2) A candidate or authorized committee that receives a 
contribution from a multicandidate political committee in excess of the 
amount allowed under paragraph (1)(B) shall return the amount of such 
excess contribution to the contributor.

   Subtitle B--Provisions Relating to Soft Money of Political Parties

SEC. 211. SOFT MONEY OF POLITICAL PARTIES.

    Title III of FECA (2 U.S.C. 301 et seq.) (as amended by section 
201) is amended by adding at the end the following:

``SEC. 325. SOFT MONEY OF POLITICAL PARTIES.

    ``(a) National Committes.--A national committee of a political 
party (including a national congressional campaign committee of a 
political party, an entity that is established, financed, maintained, 
or controlled by the national committee, a national congressional 
campaign committee of a political party, and an officer or agent of any 
such party or entity but not including an entity regulated under 
subsection (b)) shall not solicit or receive any contributions, 
donations, or transfers of funds, or spend any funds, not subject to 
the limitations, prohibitions, and reporting requirements of this Act.
    ``(b) State, District, and Local Committees.--
            ``(1) Limitation.--Any amount that is expended or disbursed 
        by a State, district, or local committee of a political party 
        (including an entity that is established, financed, maintained, 
        or controlled by a State, district, or local committee of a 
        political party and an agent or officer of any such committee 
        or entity) during a calendar year in which a Federal election 
        is held, for any activity that might affect the outcome of a 
        Federal election, including any voter registration or get-out-
        the-vote activity, any generic campaign activity, and any 
        communication that identifies a candidate (regardless of 
        whether a candidate for State or local office is also mentioned 
        or identified) shall be made from funds subject to the 
        limitations, prohibitions, and reporting requirements of this 
        Act.
            ``(2) Activity not included in paragraph (1).--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                an expenditure or disbursement made by a State, 
                district, or local committee of a political party for--
                            ``(i) a contribution to a candidate for 
                        State or local office if the contribution is 
                        not designated or otherwise earmarked to pay 
                        for an activity described in paragraph (1);
                            ``(ii) the costs of a State, district, or 
                        local political convention;
                            ``(iii) the non-Federal share of a State, 
                        district, or local party committee's 
                        administrative and overhead expenses (but not 
                        including the compensation in any month of any 
                        individual who spends more than 20 percent of 
                        the individual's time on activity during the 
                        month that may affect the outcome of a Federal 
                        election) except that for purposes of this 
                        paragraph, the non-Federal share of a party 
                        committee's administrative and overhead 
                        expenses shall be determined by applying the 
                        ratio of the non-Federal disbursements to the 
                        total Federal expenditures and non-Federal 
                        disbursements made by the committee during the 
                        previous presidential election year to the 
committee's administrative and overhead expenses in the election year 
in question;
                            ``(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; and
                            (v) the cost of any campaign activity 
                        conducted solely on behalf of a clearly 
                        identified candidate for State or local office, 
                        if the candidate activity is not an activity 
                        described in paragraph (1).
                    ``(B) Fundraising.--Any amount that is expended or 
                disbursed by a national, State, district, or local 
                committee, by an entity that is established, financed, 
                maintained, or controlled by a 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 
                an activity described in subparagraph (A) shall be made 
                from funds subject to the limitations, prohibitions, 
                and reporting requirements of this Act.
    ``(c) Tax-exempt organizations.--No national, State, district, or 
local committee of a political party shall solicit any funds for or 
make any donations to an organization that is exempt from Federal 
taxation under section 501(c) of the Internal Revenue Code of 1986.
    ``(d) Candidates.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        candidate, individual holding Federal office, or agent of a 
        candidate or individual holding Federal office may--
                    ``(A) solicit or receive funds in connection with 
                an election for Federal office unless the funds are 
                subject to the limitations, prohibitions, and reporting 
                requirements of this Act; or
                    ``(B) solicit or receive funds that are to be 
                expended in connection with any election for other than 
                a Federal election unless the funds--
                            ``(i) are not in excess of the amounts 
                        permitted with respect to contributions to 
                        candidates and political committees under 
                        section 315(a) (1) and (2); and
                            ``(ii) are not from sources prohibited by 
                        this Act from making contributions with respect 
                        to an election for Federal office.
            ``(2) Exception.--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 the 
        individual's State or local campaign committee.''.

SEC. 212. STATE PARTY GRASSROOTS FUNDS.

    (a) Individual Contributions.--Section 315(a)(1) of FECA (2 U.S.C. 
441a(a)(1)) (as amended by section 105) is amended--
            (1) in subparagraph (C) by striking ``or'' at the end;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following:
            ``(D) to--
                    ``(i) a State Party Grassroots Fund established and 
                maintained by a State committee of a political party in 
                any calendar year which, in the aggregate, exceed 
                $20,000;
                    ``(ii) any other political committee established 
                and maintained by a State committee of a political 
                party in any calendar year which, in the aggregate, 
                exceed $5,000;
        except that the aggregate contributions described in this 
        subparagraph that may be made by a person to the State Party 
        Grassroots Fund and all committees of a State Committee of a 
        political party in any State in any calendar year shall not 
        exceed $20,000; or''.
    (b) Multicandidate Committee Contributions to State Party.--Section 
315(a)(2) of FECA (2 U.S.C. 441a(a)(2)) is amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
            ``(C) to--
                    ``(i) a State Party Grassroots Fund established and 
                maintained by a State committee of a political party in 
                any calendar year which in the aggregate, exceed 
                $15,000;
                    ``(ii) to any other political committee established 
                and maintained by a State committee of a political 
                party which, in the aggregate, exceed $5,000;
        except that the aggregate contributions described in this 
        subparagraph that may be made by a multicandidate political 
        committee to the State Party Grassroots Fund and all committees 
        of a State Committee of a political party in any State in any 
        calendar year shall not exceed $15,000; or''.
    (c) Overall Limit.--
            (1) In general.--Section 315(a) of FECA (2 U.S.C. 441a(a)) 
        is amended by striking paragraph (3) and inserting the 
        following:
            ``(3) Overall limit.--
                    ``(A) Election cycle.--No individual shall make 
                contributions during any election cycle that, in the 
                aggregate, exceed $60,000.
                    ``(B) Calendar year.--No individual shall make 
                contributions during any calendar year--
                            ``(i) to all candidates and their 
                        authorized political committees that, in the 
                        aggregate, exceed $25,000; or
                            ``(ii) to all political committees 
                        established and maintained by State committees 
                        of a political party that, in the aggregate, 
                        exceed $20,000.
                    ``(C) Nonelection years.--For purposes of 
                subparagraph (B)(i), any contribution made to a 
                candidate or the candidate's authorized political 
                committees in a year other than the calendar year in 
                which the election is held with respect to which the 
                contribution is made shall be treated as being made 
                during the calendar year in which the election is 
                held.''.
            (2) Definition.--Section 301 of FECA (2 U.S.C. 431) is 
        amended by adding at the end the following:
            ``(20) Election cycle.--The term `election cycle' means--
                    ``(A) in the case of a candidate or the authorized 
                committees of a candidate, the period beginning on the 
                day after the date of the most recent general election 
                for the specific office or seat that the candidate 
                seeks and ending on the date of the next general 
                election for that office or sea; and
                    ``(B) in the case of all other persons, the period 
                beginning on the first day following the date of the 
                last general election and ending on the date of the 
                next general election.''.
    (d) State Party Grassroots Funds.--
            (1) In general.--Title III of FECA (2 U.S.C. 301 et seq.) 
        (as amended by section 211) is amended by adding at the end the 
        following:

``SEC. 326. STATE PARTY GRASSROOTS FUNDS.

    ``(a) Definition.--In this section, the term `State or local 
candidate committee' means a committee established, financed, 
maintained, or controlled by a candidate for other than Federal office.
    ``(b) Transfers.--Notwithstanding section 315(a)(4), no funds may 
be transferred by a State committee of a political party from its State 
Party Grassroots Fund to any other State Party Grassroots Fund or to 
any other political committee, except a transfer may be made to a 
district or local committee of the same political party in the same 
State if the district or local committee--
            ``(1) has established a separate segregated fund for the 
        purposes described in section 325(b)(1); and
            ``(2) uses the transferred funds solely for those purposes.
    ``(c) Amounts Received by Grassroots Funds From State and Local 
Candidate Committees.--
            ``(1) In general.--Any amount received by a State Party 
        Grassroots Fund from a State or local candidate committee for 
        expenditures described in section 325(b)(1) that are for the 
        benefit of that candidate shall be treated as meeting the 
        requirements of 325(b)(1) and section 304(d) if--
                    ``(A) the amount is derived from funds which meet 
                the requirements of this Act with respect to any 
                limitation or prohibition as to source or dollar amount 
                specified in section 315(a) (1)(A) and (2)(A); and
                    ``(B) the State or local candidate committee--
                            ``(i) maintains, in the account from which 
                        payment is made, records of the sources and 
                        amounts of funds for purposes of determining 
                        whether those requirements are met; and
                            ``(ii) certifies that the requirements were 
                        met.
            ``(2) Determination of compliance.--For purposes of 
        paragraph (1)(A), in determining whether the funds transferred 
        meet the requirements of this Act described in paragraph 
        (1)(A)--
                    ``(A) a State or local candidate committee's cash 
                on hand shall be treated as consisting of the funds 
                most recently received by the committee; and
                    ``(B) the committee must be able to demonstrate 
                that its cash on hand contains funds meeting those 
                requirements sufficient to cover the transferred funds.
            ``(3) Reporting.--Notwithstanding paragraph (1), any State 
        Party Grassroots Fund that receives a transfer described in 
        paragraph (1) from a State or local candidate committee shall 
        be required to meet the reporting requirements of this Act, and 
        shall submit to the Commission all certifications received, 
        with respect to receipt of the transfer from the candidate 
        committee.''.
            (2) Definition.--Section 301 of FECA (2 U.S.C. 431) (as 
        amended by subsection (c)(2)) is amended by adding at the end 
        the following:
            ``(21) State party grassroots fund.--The term `State Party 
        Grassroots Fund' means a separate segregated fund established 
        and maintained by a State committee of a political party solely 
        for the purpose of making expenditures and other disbursements 
        described in section 325(a).''.

SEC. 213. REPORTING REQUIREMENTS.

    (a) Reporting Requirements.--Section 304 of FECA (2 U.S.C. 434) is 
amended by adding at the end the following new subsection:
    ``(d) Political Committees.--(1) The national committee of a 
political party, any congressional campaign committee of a political 
party, and any subordinate committee of either, shall report all 
receipts and disbursements during the reporting period, whether or not 
in connection with an election for Federal office.
    ``(2) A political committee (not described in paragraph (1)) to 
which section 325(b)(1) applies shall report all receipts and 
disbursements.
    ``(3) Any political committee shall include in its report under 
paragraph (1) or (2) the amount of any contribution received by a 
national committee which is to be transferred to a State committee for 
use directly (or primarily to support) activities described in section 
325(b)(2) and shall itemize such amounts to the extent required by 
subsection (b)(3)(A).
    ``(4) Any political committee to which paragraph (1) or (2) does 
not apply shall report any receipts or disbursements that are used in 
connection with a Federal election.
    ``(5) If a political committee has receipts or disbursements to 
which this subsection applies from any person aggregating in excess of 
$200 for any calendar year, the political committee shall separately 
itemize its reporting for such person in the same manner as required in 
subsection (b) (3)(A), (5), or (6).
    ``(6) Reports required to be filed under this subsection shall be 
filed for the same time periods required for political committees under 
subsection (a).''.
    (b) Report of Exempt Contributions.--Section 301(8) of FECA (2 
U.S.C. 431(8)) is amended by inserting at the end the following:
                    ``(C) The exclusion provided in subparagraph 
                (B)(viii) shall not apply for purposes of any 
                requirement to report contributions under this Act, and 
                all such contributions aggregating in excess of $200 
                shall be reported.''.
    (c) Reports by State Committees.--Section 304 of FECA (2 U.S.C. 
434), as amended by subsection (a), is amended by adding at the end the 
following new subsection:
    ``(e) Filing of State Reports.--In lieu of any report required to 
be filed by this Act, the Commission may allow a State committee of a 
political party to file with the Commission a report required to be 
filed under State law if the Commission determines such reports contain 
substantially the same information.''.
    (d) Other Reporting Requirements.--
            (1) Authorized committees.--Section 304(b)(4) of FECA (2 
        U.S.C. 434(b)(4)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (H);
                    (B) by inserting ``and'' at the end of subparagraph 
                (I); and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) in the case of an authorized committee, 
                disbursements for the primary election, the general 
                election, and any other election in which the candidate 
                participates;''.
            (2) Names and addresses.--Section 304(b)(5)(A) of FECA (2 
        U.S.C. 434(b)(5)(A)) is amended--
                    (A) by striking ``within the calendar year''; and
                    (B) by inserting ``, and the election to which the 
                operating expenditure relates'' after ``operating 
                expenditure''.

     Subtitle C--Soft Money of Persons Other Than Political Parties

SEC. 221. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) (as amended by section 215) is amended by adding at the end the 
following:
    ``(f) Election Activity of Persons Other Than Political Parties.--
            ``(1) In general.--A person other than a committee of a 
        political party that makes aggregate disbursements totaling in 
        excess of $10,000 for activities described in paragraph (2) 
        shall file a statement with the Commission--
                    ``(A) within 48 hours after the disbursements are 
                made; 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) any activity described in section 
                441(b)(2)(A) that refers to any candidate for Federal 
                office, any political party, or any Federal election; 
                and
                    ``(B) any activity described in section 441b(b)(2) 
                (B) or (C).
            ``(3) Additional statements.--An additional statement shall 
        be filed each time additional disbursements aggregating $10,000 
        are made by a person described in paragraph (1).
            ``(4) Applicability.--This subsection does not apply to--
                    ``(A) a candidate or a candidate's authorized 
                committees; or
                    ``(B) an independent expenditure.
            ``(5) Contents.--A statement under this section shall 
        contain such information about the disbursements as the 
        Commission shall prescribe, including--
                    ``(A) the name and address of the person or entity 
                to whom the disbursement was made;
                    ``(B) the amount and purpose of the disbursement; 
                and
                    ``(C) 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.''.

                       Subtitle D--Contributions

SEC. 231. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS.

    Section 315(a)(8) of FECA (2 U.S.C. 441a(a)(8)) is amended by 
striking paragraph (8) and inserting the following:
            ``(8) Intermediaries and conduits.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Acting on behalf of the entity.--The 
                        term `acting on behalf of the entity' means 
                        soliciting one or more contributions--
                                    ``(I) in the name of an entity;
                                    ``(II) using other than incidental 
                                resources of an entity; or
                                    ``(III) by directing a significant 
                                portion of the solicitations to other 
                                officers, employees, agents, or members 
                                of an entity or their spouses, or by 
                                soliciting a significant portion of the 
                                other officers, employees, agents, or 
                                members of an entity or their spouses.
                            ``(ii) Bundler.--The term `bundler' means 
                        an intermediary or conduit that is any of the 
                        following persons or entities:
                                    ``(I) A political committee (other 
                                than the authorized campaign committee 
                                of the candidate that receives 
                                contributions as described in 
                                subparagraph (B) or (C)).
                                    ``(II) Any officer, employee or 
                                agent of a political committee 
                                described in subclause (I).
                                    ``(III) An entity.
                                    ``(IV) Any officer, employee, or 
                                agent of an entity who is acting on 
                                behalf of the entity.
                                    ``(V) A person required to be 
                                listed as a lobbyist on a registration 
                                or other report filed pursuant to the 
                                Lobbying Disclosure Act of 1995 (2 
                                U.S.C. 1601 et seq.) or any successor 
                                law that requires reporting on the 
                                activities of a person who is a 
                                lobbyist or foreign agent.
                            ``(iii) Deliver.--The term `deliver' means 
                        to deliver contributions to a candidate by any 
                        method of delivery used or suggested by a 
                        bundler that communicates to the candidate (or 
                        to the person who receives the contributions on 
                        behalf of the candidate) that the bundler 
                        collected the contributions for the candidate, 
                        including such methods as--
                                    ``(I) personal delivery;
                                    ``(II) United States mail or 
                                similar services;
                                    ``(III) messenger service; and
                                    ``(IV) collection at an event or 
                                reception.
                            ``(iv) Entity.--The term `entity' means a 
                        corporation, labor organization, or 
                        partnership.
                    ``(B) Treatment as contributions from persons by 
                whom made.--
                            ``(i) In general.--For purposes of the 
                        limitations imposed by this section, all 
                        contributions made by a person, either directly 
                        or indirectly, on behalf of a candidate, 
                        including contributions that are in any way 
                        earmarked or otherwise directed through an 
                        intermediary or conduit to the candidate, shall 
                        be treated as contributions from the person to 
                        the candidate.
                            ``(ii) Reporting.--The intermediary or 
                        conduit through which a contribution is made 
                        shall report the name of the original 
                        contributor and the intended recipient of the 
                        contribution to the Commission and to the 
                        intended recipient.
                    ``(C) Treatment as contributions from the 
                bundler.--Contributions that a bundler delivers to a 
                candidate, agent of the candidate, or the candidate's 
                authorized committee shall be treated as contributions 
                from the bundler to the candidate as well as from the 
                original contributor.
                    ``(D) No limitation on or prohibition of certain 
                activities.--This subsection does not--
                            ``(i) limit fundraising efforts for the 
                        benefit of a candidate that are conducted by 
                        another candidate or Federal officeholder; or
                            ``(ii) prohibit any individual described in 
                        subparagraph (A)(ii)(IV) from soliciting, 
                        collecting, or delivering a contribution to a 
                        candidate, agent of the candidate, or the 
                        candidate's authorized committee if the 
                        individual is not acting on behalf of the 
                        entity.''.

                  Subtitle E--Independent Expenditures

SEC. 241. CLARIFICATION OF DEFINITIONS RELATING TO INDEPENDENT 
              EXPENDITURES.

    (a) Independent Expenditure Definition Amendment.--Section 301 of 
FECA (2 U.S.C. 431) is amended by striking paragraphs (17) and (18) and 
inserting the following:
            ``(17) Independent expenditure.--
                    ``(A) In general.--The term `independent 
                expenditure' means an expenditure that--
                            ``(i) contains express advocacy; and
                            ``(ii) is made without the participation or 
                        cooperation of, or without the consultation of, 
                        a candidate or a candidate's representative.
                    ``(B) Items excluded.--The following shall not be 
                considered to be an independent expenditure:
                            ``(i) An expenditure made by--
                                    ``(I) an authorized committee of a 
                                candidate for Federal office; or
                                    ``(II) a political committee of a 
                                political party.
                            ``(ii) An expenditure if there is any 
                        arrangement, coordination, or direction with 
                        respect to the expenditure between the 
                        candidate or the candidate's agent and the 
                        person making the expenditure.
                            ``(iii) An expenditure if, in the same 
                        election cycle, the person making the 
                        expenditure is or has been--
                                    ``(I) authorized to raise or expend 
                                funds on behalf of the candidate or the 
                                candidate's authorized committees; or
                                    ``(II) serving as a member, 
                                employee, or agent of the candidate's 
                                authorized committees in an executive 
                                or policymaking position.
                            ``(iv) An expenditure if the person making 
                        the expenditure has played a significant role 
                        in advising or counseling the candidate or the 
                        candidate's agents at any time on the 
                        candidate's plans, projects, or needs relating 
                        to the candidate's pursuit of nomination for 
                        election, or election, to Federal office, in 
                        the same election cycle, including any advice 
                        relating to the candidate's decision to seek 
                        Federal office.
                            ``(v) An expenditure if the person making 
                        the expenditure retains the professional 
                        services of any individual or other person also 
                        providing services in the same election cycle 
                        to the candidate in connection with the 
                        candidate's pursuit of nomination for election, 
                        or election, to Federal office, including any 
                        services relating to the candidate's decision 
                        to seek Federal office. For purposes of this 
                        clause, the term `professional services' shall 
                        include any services (other than legal and 
                        accounting services solely for purposes of 
                        ensuring compliance with any Federal law) in 
                        support of any candidate's or candidates' 
                        pursuit of nomination for election, or 
                        election, to Federal office.
                    ``(C) Persons included.--For purposes of 
                subparagraph (B), the person making the expenditure 
                shall include any officer, director, employee, or agent 
                of the person.
            ``(18) Express advocacy.--
                    ``(A) In general.--The term `express advocacy' 
                means a communication that, taken as a whole and with 
                limited reference to external events, makes an 
                expression of support for or opposition to a specific 
                candidate, to a specific group of candidates, or to 
                candidates of a particular political party.
                    ``(B) Expression of support for or opposition to.--
                In subparagraph (A), the term `expression of support 
                for or opposition to' includes a suggestion to take 
                action with respect to an election, such as to vote for 
                or against, make contributions to, or participate in 
                campaign activity, or to refrain from taking action.
                    ``(C) Voting records.--The term `express advocacy' 
                does not include the publication and distribution of a 
                communication that is limited to providing information 
                about votes by elected officials on legislative matters 
                and that does not expressly advocate the election or 
                defeat of a clearly identified candidate.''.
    (b) Contribution Definition Amendment.--Section 301(8)(A) of FECA 
(2 U.S.C. 431(8)(A)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(iii) any payment or other transaction referred to in 
        paragraph (17)(A)(i) that is not an independent expenditure 
        under paragraph (17).''.

SEC. 242. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.

    Section 304(c) of FECA of 1971 (2 U.S.C. 434(c)) is amended--
            (1) in paragraph (2), by striking the undesignated matter 
        after subparagraph (C);
            (2) by redesignating paragraph (3) as paragraph (7); and
            (3) by inserting after paragraph (2), as amended by 
        paragraph (1), the following new paragraphs:
            ``(3)(A) Any person (including a political committee) 
        making independent expenditures as defined in section 301 (17) 
        and (18) with respect to a candidate in an election aggregating 
        $1,000 or more made after the 20th day, but more than 24 hours, 
        before the election shall file a report within 24 hours after 
        such independent expenditures are made. An additional report 
        shall be filed each time independent expenditures aggregating 
        $1,000 are made with respect to the same candidate after the 
        latest report filed under this subparagraph.
            ``(B) Any person (including a political committee) making 
        independent expenditures with respect to a candidate in an 
        election aggregating $10,000 or more made at any time up to and 
        including the 20th day before the election shall file a report 
        within 48 hours after such independent expenditures are made. 
        An additional report shall be filed each time independent 
        expenditures aggregating $10,000 are made with respect to the 
        same candidate after the latest report filed under this 
        paragraph.
            ``(C) A report under subparagraph (A) or (B) shall be filed 
        with the Commission and shall identify each candidate whom the 
        expenditure is actually intended to support or to oppose. In 
        the case of an election for United States Senator, the 
        Commission shall, within 2 business days of receipt of a 
        report, transmit a copy of the report to each eligible Senate 
        candidate seeking nomination or election to that office.
            ``(D) For purposes of this section, an independent 
        expenditure shall be considered to have been made upon the 
        making of any payment or the taking of any action to incur an 
        obligation for payment.
            ``(4) The Commission may, upon a request of a candidate or 
        on its own initiative, make its own determination that a 
        person, including a political committee, has made, or has 
        incurred obligations to make, independent expenditures with 
        respect to any candidate in any election which in the aggregate 
        exceed the applicable amounts under paragraph (3). In the case 
        of an election for United States Senator, the Commission shall 
        notify each eligible Senate candidate in such election of such 
        determination made within 2 business days after making it. Any 
        determination made at the request of a candidate shall be made 
        within 48 hours of the request.
            ``(5) In the event that independent expenditures totaling 
        in the aggregate $10,000 have been made in the same election in 
        favor of another candidate or against an eligible Senate 
        candidate, the Commission shall, within 2 business days, notify 
        the eligible candidate that such candidate is entitled to an 
        increase under section 502(e) in the candidate's applicable 
        election limit in an amount equal to the amount of such 
        independent expenditures.''.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR PERSONAL PURPOSES.

    (a) Restrictions on Use of Campaign Funds.--Title III of FECA (2 
U.S.C. 431 et seq.) (as amended by section 201) is amended by adding at 
the end the following new section:

``SEC. 325. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR PERSONAL 
              PURPOSES.

    ``(a) Definitions.--In this section:
            ``(1) Campaign expense.--The term `campaign expense' means 
        an expense that is attributable solely to a bona fide campaign 
        purpose.
            ``(2) Inherently personal purposes.--The term `inherently 
        personal purpose' means a purpose that, by its nature, confers 
        a personal benefit, including a home mortgage, rent, or utility 
        payment, clothing purchase, noncampaign automobile expense, 
        country club membership, vacation, or trip of a noncampaign 
        nature, household food items, tuition payment, admission to a 
        sporting event, concert, theatre or other form of entertainment 
        not associated with a campaign, dues, fees, or contributions to 
        a health club or recreational facility, and any other 
        inherently personal living expense as determined under the 
        regulations promulgated pursuant to section 301(b) of the 
        Senate Campaign Finance Reform Act of 1996.
    ``(b) Permitted and Prohibited Uses.--An individual who receives 
contributions as a candidate for Federal office--
            ``(1) shall use the contributions only for legitimate and 
        verifiable campaign expenses; and
            ``(2) shall not use the contributions for any inherently 
        personal purpose.''.
    (b) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Federal Election Commission shall promulgate 
regulations consistent with this Act to implement subsection (a). Such 
regulations shall apply to all contributions possessed by an individual 
on the date of enactment of this Act.

SEC. 302. CAMPAIGN ADVERTISING AMENDMENTS.

    Section 318 of FECA (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 new subsections:
    ``(c) Any printed communication described in subsection (a) shall 
be--
            ``(1) of sufficient type size to be clearly readable by the 
        recipient of the communication;
            ``(2) contained in a printed box set apart from the other 
        contents of the communication; and
            ``(3) consist of a reasonable degree of color contrast 
        between the background and the printed statement.
    ``(d)(1) Any broadcast or cablecast communication described in 
subsection (a)(1) or subsection (a)(2) shall include, in addition to 
the requirements of those subsections, an audio statement by the 
candidate that identifies the candidate and states that the candidate 
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 which--
            ``(A) appears at the end of the communication in a clearly 
        readable manner with a reasonable degree of color contrast 
        between the background and the printed statement, for a period 
        of at least 4 seconds; and
            ``(B) is accompanied by a clearly identifiable photographic 
        or similar image of the candidate.
    ``(e) Any broadcast or cablecast communication described in 
subsection (a)(3) shall include, in addition to the requirements of 
those subsections, in a clearly spoken manner, the following statement: 
`________________ is responsible for the content of this 
advertisement.' (with the blank to be filled in with the name of the 
political committee or other person paying for the communication and 
the name of any connected organization of the payor). If broadcast or 
cablecast by means of television, the statement shall also appear in a 
clearly readable manner with a reasonable degree of color contrast 
between the background and the printed statement, for a period of at 
least 4 seconds.''.

SEC. 303. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES.

    Section 302(g) of FECA (2 U.S.C. 432(g)) is amended by adding at 
the end the following new paragraph:
            ``(6)(A) The Commission, in consultation with the Secretary 
        of the Senate and the Clerk of the House of Representatives, 
        may prescribe regulations under which persons required to file 
        designations, statements, and reports under this Act--
                    ``(i) are required to maintain and file them for 
                any calendar year in electronic form accessible by 
                computers if the person has, or has reason to expect to 
                have, aggregate contributions or expenditures in excess 
                of a threshold amount determined by the Commission; and
                    ``(ii) may maintain and file them in that manner if 
                not required to do so under regulations prescribed 
                under clause (i).
            ``(B) The Commission, in consultation with the Secretary of 
        the Senate and the Clerk of the House of Representatives, shall 
        prescribe regulations which allow persons to file designations, 
        statements, and reports required by this Act through the use of 
facsimile machines.
            ``(C) In prescribing regulations under this paragraph, the 
        Commission shall provide methods (other than requiring a 
        signature on the document being filed) for verifying 
        designations, statements, and reports covered by the 
        regulations. Any document verified under any of the methods 
        shall be treated for all purposes (including penalties for 
        perjury) in the same manner as a document verified by 
        signature.
            ``(D) The Secretary of the Senate and the Clerk of the 
        House of Representatives shall ensure that any computer or 
        other system that they may develop and maintain to receive 
        designations, statements, and reports in the forms required or 
        permitted under this paragraph is compatible with any such 
        system that the Commission may develop and maintain.''.

SEC. 304. AUDITS.

    (a) Random Audits.--Section 311(b) of FECA (2 U.S.C. 438(b)) is 
amended--
            (1) by inserting ``(1)'' before ``The Commission''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Notwithstanding paragraph (1), the Commission may after all 
elections are completed conduct random audits and investigations to 
ensure voluntary compliance with this Act. The subjects of such audits 
and investigations shall be selected on the basis of criteria 
established by vote of at least 4 members of the Commission to ensure 
impartiality in the selection process. This paragraph does not apply to 
an authorized committee of a candidate for President or Vice President 
subject to audit under title VI or to an authorized committee of an 
eligible Senate candidate or an eligible House candidate subject to 
audit under section 522(a).''.
    (b) Extension of Period During Which Campaign Audits May Be 
Begun.--Section 311(b) of FECA (2 U.S.C. 438(b)) is amended by striking 
``6 months'' and inserting ``12 months''.

SEC. 305. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

    (a) In General.--Section 3210(a)(6)(A) of title 39, United States 
Code, is amended to read as follows:
                    ``(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.''.
    (b) Application of Savings.--It is the intent of Congress that any 
savings realized by virtue of the amendment made by subsection (a) 
shall be designated to pay for the benefits of section 104 (relating to 
reduced postage rates for eligible Senate candidates) provided under 
section 104.

SEC. 306. AUTHORITY TO SEEK INJUNCTION.

    Section 309(a) of FECA (2 U.S.C. 437g(a)) is amended--
            (1) by adding at the end the following new paragraph:
    ``(13)(A) If, at any time in a proceeding described in paragraph 
(1), (2), (3), or (4), the Commission believes that--
            ``(i) there is a substantial likelihood that a violation of 
        this Act is occurring or is about to occur;
            ``(ii) the failure to act expeditiously will result in 
        irreparable harm to a party affected by the potential 
        violation;
            ``(iii) expeditious action will not cause undue harm or 
        prejudice to the interests of others; and
            ``(iv) the public interest would be best served by the 
        issuance of an injunction,
the Commission may initiate a civil action for a temporary restraining 
order or a temporary injunction pending the outcome of the proceedings 
described in paragraphs (1), (2), (3), and (4).
    ``(B) An action under subparagraph (A) shall be brought in the 
United States district court for the district in which the defendant 
resides, transacts business, or may be found, or in which the violation 
is occurring, has occurred, or is about to occur.'';
            (2) in paragraph (7), by striking ``(5) or (6)'' and 
        inserting ``(5), (6), or (13)''; and
            (3) in paragraph (11), by striking ``(6)'' and inserting 
        ``(6) or (13)''.

SEC. 307. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR MORE.

    Section 304(b)(2)(A) is amended by inserting ``, including the name 
and address of each person who makes contributions aggregating at least 
$50 but not more than $200 during the calendar year'' after ``political 
committees''.

             TITLE IV--CONSTITUTIONALITY AND EFFECTIVE DATE

SEC. 401. SEVERABILITY.

    If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remainder of this Act, 
the amendments made by this Act, and the application of the provisions 
of such to any person or circumstance shall not be affected thereby.

SEC. 402. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.

    (a) Direct Appeal to Supreme Court.--An appeal may be taken 
directly to the Supreme Court of the United States from any 
interlocutory order or final judgment, decree, or order issued by any 
court ruling on the constitutionality of any provision of this Act or 
amendment made by this Act.
    (b) Acceptance and Expedition.--The Supreme Court shall, if it has 
not previously ruled on the question addressed in the ruling below, 
accept jurisdiction over, advance on the docket, and expedite the 
appeal to the greatest extent possible.

SEC. 403. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by, 
and the provisions of, this Act shall take effect on January 1, 1997.

SEC. 404. REGULATIONS.

    The Federal Election Commission shall prescribe any regulations 
required to carry out this Act not later than 9 months after the 
effective date of this Act.