[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1777 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1777

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 1997

 Mr. Meehan (for himself, Mr. Shays, Mr. Wamp, Mr. Moran of Virginia, 
   Mrs. Roukema, Mr. McHale, Mr. Horn, Mr. Barrett of Wisconsin, Mr. 
 Castle, Mr. Minge, Mr. Leach, Mr. Bilbray, Mr. Campbell, Mr. Duncan, 
Mrs. Morella, Mr. Greenwood, Mr. Franks of New Jersey, and Mr. Metcalf) 
 introduced the following bill; which was referred to the Committee on 
  House Oversight, and in addition to the Committees on Commerce, and 
   Government Reform and Oversight, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Election Campaign Act of 1971 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 ``Campaign Independence Restoration 
Act--Part II''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. House of Representatives election spending limits and 
                            benefits.
 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR HOUSE OF REPRESENTATIVES 
                           ELECTION CAMPAIGNS

        ``Sec. 501. Candidates eligible to receive benefits.
        ``Sec. 502. Limitation on expenditures.
        ``Sec. 503. Benefits eligible candidates entitled to receive.
        ``Sec. 504. Certification by Commission.
        ``Sec. 505. Repayments; additional civil penalties.''
Sec. 102. Broadcast rates and preemption.
Sec. 103. Reduced postage rates.
Sec. 104. Contribution limit for eligible House of Representatives 
                            candidates.
Sec. 105. Reporting requirements.
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

   Subtitle A--Limitations on Political Action Committees and Large 
                      Contributions of Individuals

Sec. 201. Limitations on activities of political action committees in 
                            Federal elections.
Sec. 202. Aggregate limit on large contributions.
                       Subtitle B--Contributions

Sec. 211. Contributions through intermediaries and conduits.
          Subtitle C--Additional Prohibitions on Contributions

Sec. 221. Prohibition of contributions by noncitizens and other 
                            individuals not qualified to vote.
          Subtitle D--Coordinated and Independent Expenditures

Sec. 231. Clarification of definitions relating to independent 
                            expenditures.
Sec. 232. Treatment of coordinated expenditures as contributions.
Sec. 233. Treatment of certain party expenditures and communications 
                            containing express advocacy as 
                            expenditures.
Sec. 234. Reporting requirements for certain independent expenditures.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Severability.
Sec. 302. Expedited review of constitutional issues.
Sec. 303. Effective date.
Sec. 304. Regulations.

TITLE I--HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND BENEFITS

SEC. 101. HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND 
              BENEFITS.

    The Federal Election Campaign Act of 1971 is amended by adding at 
the end the following new title:

 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR HOUSE OF REPRESENTATIVES 
                           ELECTION CAMPAIGNS

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

    ``(a) In General.--For purposes of this title, a candidate is an 
eligible House of Representatives candidate if the Commission has 
certified, pursuant to section 504, that the candidate--
            ``(1) meets the election cycle filing requirements of 
        subsection (b); and
            ``(2) meets the threshold contribution requirements of 
        subsection (c).
    ``(b) Filing Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if the candidate files with the Commission under penalty of 
        perjury a declaration that--
                    ``(A) the candidate and the candidate's authorized 
                committees--
                            ``(i) will not exceed the expenditure 
                        limits under section 502(a), (b), and (c),
                            ``(ii) will not accept contributions in 
                        excess of the election cycle expenditure limit, 
                        reduced by any amounts transferred to this 
                        election cycle from a preceding election cycle,
                            ``(iii) will not, in the event of a runoff 
                        election, accept contributions in excess of the 
                        runoff expenditure limit, reduced by any 
                        amounts transferred to this election cycle from 
                        a preceding election cycle,
                            ``(iv) will not accept any contributions in 
                        violation of section 315, and
                            ``(v) will comply with the requirement 
                        that, by the end of the election cycle, not 
                        less than 60 percent of the total dollar amount 
                        of all contributions from individuals to the 
                        candidate or the candidate's authorized 
                        committees (including any expenditures, 
                        contributions, or loans made by the candidate) 
                        shall come from individuals legally residing in 
                        the candidate's State; and
                    ``(B) the candidate intends to make use of the 
                benefits provided under section 503.
            ``(2) Deadline for filing declaration.--The declaration 
        under paragraph (1) shall be filed the date the candidate files 
        as a candidate for the primary election. In the case of a 
        candidate who is not eligible to participate in a primary 
        election but qualifies for the general election ballot under 
        State law, the declaration under paragraph (1) shall be filed 
        not later than the date the candidate qualifies for the general 
        election ballot under State law.''.
            ``(3) Notification.--A candidate who--
                    ``(A) files a declaration pursuant to subsection 
                (b)(1) of this Act; and
                    ``(B) subsequently acts in a manner inconsistent 
                with any of the limitations or requirements of the 
                declaration filed under subsection (b)(1) shall file a 
                notification regarding such acts with the Commission 
                not later than 24 hours after the first such act 
                inconsistent with any of the limitations or 
                requirements and shall at the same time notify all 
                other candidates for the same office by sending a copy 
                of the notification filed with the Commission by 
                certified mail, return receipt requested.
    ``(c) 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 equal to 10 percent of the election cycle 
        expenditure limit under section 502(b), and file with the 
        Commission under penalty of perjury a statement with supporting 
        materials demonstrating that this requirement has been met.
            ``(2) Definitions.--For purposes of this section--
                    ``(A) the term `allowable contributions' means 
                contributions that are made as gifts of money by an 
                individual pursuant to a written instrument identifying 
                such individual as the contributor, except that--
                            ``(i) such term shall not include 
                        contributions from individuals residing outside 
                        the candidate's State to the extent such 
                        contributions exceed 40 percent of the amount 
                        set forth in paragraph (1),
                            ``(ii) no more than $200 of any 
                        contribution from an individual shall be taken 
                        into account; and
                            ``(iii) such term shall not include any 
                        contribution of an intermediary or conduit 
                        within the meaning of section 301(a)(8); and
                    ``(B) 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 of the general election; or
                            ``(ii) in the case of a special election 
                        for the office of Representative in, or 
                        Delegate or Resident Commissioner to, the 
                        Congress, the period beginning on the date the 
                        vacancy in such office occurs and ending on the 
                        date of the general election.

``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 House 
        of Representatives candidate or such candidate's authorized 
        committees from the sources described in paragraph (2) shall 
        not exceed 10 percent of the election cycle expenditure limit 
        under subsection (b).
            ``(2) Sources.--A source is described in this subsection if 
        it 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.
    ``(b) Election Cycle Expenditure Limit.--
            ``(1) In general.--Except as otherwise provided in this 
        title, the aggregate amount of expenditures for an election 
        cycle by an eligible House of Representatives candidate and the 
        candidate's authorized committees shall not exceed $600,000.
            ``(2) Indexing.--The amount under paragraph (1) 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 
        1997.
    ``(c) Runoff Expenditure Limits.--The aggregate amount of 
expenditures for a runoff election by an eligible House of 
Representatives candidate and the candidate's authorized committees 
shall not exceed 20 percent of the election cycle expenditure limit 
under subsection (b).
    ``(d) 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.
    ``(e) Contested Primary.--If, as determined by the Commission, an 
eligible House of Representatives candidate in a contested primary wins 
that primary election by a margin of 10 percent or less, the limitation 
contained in subsection (b)(1) shall be increased by 30 percent for 
such candidate, and such candidate shall be entitled to raise 
additional contributions not to exceed this amount.
    ``(f) Complying Candidates Running Against Noncomplying 
Candidates.--
            ``(1) If in the case of an election with more than one 
        candidate where any candidate either--
                    ``(A) fails to be certified as an eligible 
                candidate by the Commission and has expended personal 
                funds in excess of 10 percent of the election cycle 
                limits contained in subsection (b) or has received 
                contributions or expended personal funds which in the 
                aggregate exceed 70 percent of the election cycle 
limits contained in subsection (b), or
                    ``(B) violates the limitations on expenditures of 
                this Act, any eligible House of Representatives 
                candidate in that election shall be permitted to raise 
                additional contributions up to an amount equal to 50 
                percent of the election cycle limit contained in 
                subsection (b).
            ``(2) If the candidate who has failed to be certified as an 
        eligible candidate or who has violated the limitations on 
        expenditures of this Act has received contributions or expended 
        personal funds which, in the aggregate, exceed 120 percent of 
        the election cycle limits contained in this section, any 
        eligible House of Representatives candidate in that election 
        shall be permitted to raise additional contributions up to an 
        amount equal to 100 percent of the election cycle limit 
        contained in subsection (b).
            ``(3) In the event a noncomplying candidate as defined in 
        subparagraphs (A) or (B) of paragraph (1) spends an amount 
        equal to 105 percent of the election cycle limit contained in 
        subsection (b), the election cycle limit contained in 
        subsection (b) for an eligible House of Representatives 
        candidate in such election shall be increased by 50 percent. In 
        the event a noncomplying candidate spends an amount equal to 
        155 percent of the election cycle limit contained in subsection 
        (b), the election cycle limit in subsection (b) for an eligible 
        House of Representatives candidate in such election shall be 
        increased by 100 percent.
    ``(g) Responding to Independent Expenditures.--In the event an 
eligible House of Representatives candidate is notified pursuant to 
section 304(c)(4) by the Commission that independent expenditures 
totaling in the aggregate $25,000 or more have been made in the same 
election in favor of another candidate or against such eligible 
candidate, such eligible candidate shall be permitted to spend an 
amount equal to the amount of such independent expenditures, without 
such expenditures being subject to such eligible candidates's election 
cycle expenditure limit in subsection (b), as may be modified by 
subsection (c), (e), or (f).

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

    ``For any election in which an eligible House of Representatives 
candidate has at least one opponent who has qualified for the ballot 
and who has raised in contributions or expended in personal funds an 
amount equal to 10 percent of the election cycle limit in section 
502(b), such eligible candidate shall be entitled to receive--
            ``(1) the broadcast media rates provided under section 
        315(b) of the Communications Act of 1934; and
            ``(2) the reduced postage rates provided in section 3626(e) 
        of title 39, United States Code.

``SEC. 504. CERTIFICATION BY COMMISSION.

    ``(a) In General.--The Commission shall determine whether a 
candidate has met the requirements of this title and, based upon that 
determination, shall issue a certification stating whether or not such 
candidate is eligible to receive benefits under this title.
    ``(b) Certification.--
            ``(1) Issuance of certification.--Upon receipt of the 
        declaration required under section 501(b) and the statement 
        required under section 501(c), and such other information as 
        the Commission may by regulation require, the Commission shall 
        determine if such candidate meets the eligibility requirements 
        in section 501 and, if so, shall certify the candidate's 
        eligibility for the benefits referred to in section 503.
            ``(2) Revocation.--The Commission shall revoke such 
        certification if, based on relevant information submitted in 
        such form and manner as the Commission may require or based on 
        relevant information that otherwise comes to its attention, it 
        determines a candidate--
                    ``(A) violates any of the expenditure limits under 
                this title by making an aggregate amount of 
                expenditures that exceeds such limits by 5 percent or 
                more;
                    ``(B) uses a benefit made available to the 
                candidate under this title in a manner not provided for 
                under this title; or
                    ``(C) fails to continue to meet the requirements of 
                this title.
            ``(3) Termination of benefits.--A candidate whose 
        certification has been revoked under paragraph (2) shall be 
        ineligible for any further benefits under this title for the 
        duration of the election cycle.
    ``(c) Determination by Commission.--All determinations (including 
certifications under this section) made by the Commission under this 
title shall be final, except to the extent that they are subject to 
examination and audit by the Commission under section 505 and subject 
to judicial review.

``SEC. 505. REPAYMENTS; ADDITIONAL CIVIL PENALTIES.

    ``(a) Requiring Repayment.--If the Commission revokes the 
certification of a candidate as an eligible House of Representatives 
candidate, the Commission shall so notify the candidate and the 
candidate shall pay to the provider of such benefits received an amount 
equal to the difference between the amount the candidate paid for such 
benefits and the amount the candidate would have paid for such benefits 
if the candidate were not an eligible candidate under this title.
    ``(b) Civil Penalties.--
            ``(1) Low amount of excess expenditures.--Any eligible 
        House of Representatives candidate who makes expenditures that 
        exceed a limitation under this title by 2.5 percent or less 
        shall pay to the Commission an amount equal to the amount of 
        the excess expenditures.
            ``(2) Medium amount of excess expenditures.--Any eligible 
        House of Representatives candidate who makes expenditures that 
        exceed a limitation under this title by more than 2.5 percent 
        and less than 5 percent shall pay to the Commission an amount 
        equal to 3 times the amount of the excess expenditures.
            ``(3) Large amount of excess expenditures.--Any eligible 
        House of Representatives candidate who makes expenditures that 
        exceed a limitation under this title by 5 percent or more shall 
        pay to the Commission an amount equal to 3 times the amount of 
        the excess expenditures plus a civil penalty to be imposed 
        pursuant to the procedures of section 309.''.

SEC. 102. 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 ``(b)(1) 
        The charges'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) in paragraph (1)(A), as redesignated--
                    (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 new paragraph:
    ``(2) In the case of an eligible House of Representatives candidate 
(as described in section 501(a) of the Federal Election Campaign Act of 
1971), the charges for the use of a television or radio 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 such Act (47 U.S.C. 315) is 
amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting immediately after subsection (b) the 
        following subsection:
    ``(c)(1) 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 House of Representatives 
candidate who has purchased and paid for such use pursuant to 
subsection (b)(2).
    ``(2) 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 inserting ``or cable system'' after ``broadcasting 
        station''; and
            (2) by striking ``his candidacy'' and inserting ``the 
        candidacy of such person, under the same terms, conditions, and 
        business practices as apply to its most favored advertiser''.
    (d) Jurisdiction Over Takings Challenge to Broadcast Rates.--The 
United States Court of Federal Claims shall have exclusive jurisdiction 
over any action challenging the constitutionality of the broadcast 
media rates required to be offered to political candidates under 
section 503(1) of the Federal Election Campaign Act of 1971 and section 
315(b) of the Communications Act of 1934. Money damages shall be the 
sole and exclusive remedy in such cases, and only individuals or 
entities suffering actual financial injury shall have standing to 
maintain such an action.
    (e) Condition of Renewal or New License.--Section 307 of the 
Communications Act of 1934 (47 U.S.C. 307) is amended by adding the 
following: ``The continuation of an existing license, the renewal of an 
expiring license, and the issuance of a new license shall be expressly 
conditioned on the agreement by the licensee to abide by the provisions 
of section 503(1) of the Federal Election Campaign Act of 1971 and 
section 315(b) of this Act. The Commission shall take such action as it 
deems appropriate to assure compliance with this requirement.''.
    (f) Regulations.--The Federal Communications Commission, in 
consultation with the Federal Election Commission, shall issue 
regulations to modify the requirements of section 315 of the 
Communications Act of 1934 (as amended by subsection (a)) in any cases 
where a licensee establishes that such requirements would impose 
significant economic hardship.
    (g) Effective Date.--The amendments made by this section shall 
apply to the general elections occurring after the expiration of the 
60-day period which begins on the date of the enactment of this Act 
(and the election cycles relating thereto).

SEC. 103. REDUCED POSTAGE RATES.

    (a) In General.--Section 3626(e) of title 39, United States Code, 
is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) in paragraph (3) (as so redesignated)--
                    (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 (2), 
                        the principal campaign committee of an eligible 
                        House of Representatives 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 after subparagraph (C) the following 
                new subparagraphs:
            ``(D) the term `principal campaign committee' has the 
        meaning given such term in section 301 of the Federal Election 
        Campaign Act of 1971;
            ``(E) the term `eligible House of Representatives 
        candidate' has the meaning given such term in section 501(a) of 
        the Federal Election Campaign Act of 1971; and
            ``(F) the term `voting age population' has the meaning 
        given such term in section 315(e) of the Federal Election 
        Campaign Act of 1971.''; and
            (3) by adding after paragraph (1) the following new 
        paragraph:
    ``(2) In the case of mail sent by the principal campaign committee 
of an eligible House of Representatives candidate, paragraph (1) shall 
not apply, with respect to any election, except--
            ``(A) if the mail is sent to an individual in the voting 
        age population of the congressional district involved; and
            ``(B) with respect to any individual under subparagraph 
        (A), to the extent of not to exceed 3 pieces of mail.''.

SEC. 104. CONTRIBUTION LIMIT FOR ELIGIBLE HOUSE OF REPRESENTATIVES 
              CANDIDATES.

    Section 315(a)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(1)) is amended--
            (1) by inserting ``except as provided in subparagraph 
        (B),'' before ``to'' in subparagraph (A);
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively; and
            (3) by inserting immediately after subparagraph (A) the 
        following new subparagraph:
                    ``(B) to any eligible House of Representatives 
                candidate under title V and the authorized political 
                committees of such candidate with respect to any 
                general election for the office of Representative in, 
                or Delegate or Resident Commissioner to, the Congress, 
                which, in the aggregate, exceed $2,000, if----
                            ``(i) any other candidate in the election 
                        is a candidate who is not an eligible House of 
                        Representatives candidate under title V and for 
                        whom one of the following applies:
                                    ``(I) The candidate expends 
                                personal funds in excess of 25 percent 
                                of the applicable expenditure limit 
                                with respect to the election under 
                                section 502.
                                    ``(II) The sum of the aggregate 
                                amount of the contributions the 
                                candidate has received and the amount 
                                of personal funds the candidate has 
                                expended exceeds 50 percent of the 
                                applicable expenditure limit with 
                                respect to the election under section 
                                502; or
                            ``(ii) any other candidate in the election 
                        is an eligible House of Representatives 
                        candidate under title V who expends more than 
                        the applicable expenditure limit with respect 
                        to the election under section 502.''.

SEC. 105. REPORTING REQUIREMENTS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following new subsections:
    ``(d)(1) The principal campaign committee of any candidate for 
election as Representative in, or Delegate or Resident Commissioner to, 
the Congress shall report to the Commission if the amount of personal 
funds expended by the candidate with respect to a general election 
exceeds the limitation described in section 502(a) and if the amount of 
personal funds expended by the candidate with respect to a general 
election cycle exceeds 25 percent of the applicable expenditure limit 
with respect to the election under section 502.
    ``(2) Any report under paragraph (1) shall be submitted within 48 
hours of the date on which the amount of personal funds expended 
exceeds the amount requiring the submission of the report (or, if such 
date occurs after the 20th day, but more than 24 hours before the 
election involved, within 24 hours of such date).
    ``(3) Within 48 hours of receiving any report under this subsection 
with respect to a candidate in a general election (or within 24 hours 
in the case of a report required to be submitted to the Commission 
within 24 hours), the Commission shall notify each candidate in the 
election who is an eligible House of Representatives candidate under 
title V of the report.
    ``(4) In this subsection, the term `personal funds' means personal 
funds of a candidate, the funds of the candidate's immediate family, 
and personal loans incurred by the candidate and the candidate's 
immediate family.
    ``(e)(1) Except as provided in paragraph (4), the principal 
campaign committee of any candidate for election as Representative in, 
or Delegate or Resident Commissioner to, the Congress shall report to 
the Commission if the sum of the aggregate amount of the contributions 
the candidate has received and the amount of personal funds the 
candidate has expended with respect to a general election exceeds 50 
percent of the applicable expenditure limit with respect to the 
election under section 502, if such sum exceeds 70 percent of such 
limit, and if such sum exceeds 120 percent of such limit.
    ``(2) Any report under paragraph (1) shall be submitted within 48 
hours of the date on which the sum of the candidate's contributions and 
personal funds expended exceeds the amount requiring the submission of 
the report (or, if such date occurs after the 20th day, but more than 
24 hours before the election involved, within 24 hours of such date).
    ``(3) Within 48 hours of receiving any report under this subsection 
with respect to a candidate in a general election (or within 24 hours 
in the case of a report required to be submitted to the Commission 
within 24 hours), the Commission shall notify each candidate in the 
election who is an eligible House of Representatives candidate under 
title V of the report.
    ``(4) Paragraph (1) shall not apply to the principal campaign 
committee of any candidate who is an eligible House of Representatives 
candidate under title V.
    ``(5) In this subsection, the term `personal funds' means personal 
funds of a candidate, the funds of the candidate's immediate family, 
and personal loans incurred by the candidate and the candidate's 
immediate family.
    ``(f)(1) The principal campaign committee of any candidate for 
election as Representative in, or Delegate or Resident Commissioner to, 
the Congress shall report to the Commission if the aggregate amount of 
funds expended by the candidate with respect to a general election 
exceeds 105 percent of the applicable expenditure limit with respect to 
the election under section 502 and if such amount exceeds 155 percent 
of such limit.
    ``(2) Any report under paragraph (1) shall be submitted within 48 
hours of the date on which the amount of funds expended exceeds the 
amount requiring the submission of the report (or, if such date occurs 
after the 20th day, but more than 24 hours before the election 
involved, within 24 hours of such date).
    ``(3) Within 48 hours of receiving any report under this subsection 
with respect to a candidate in a general election (or within 24 hours 
in the case of a report required to be submitted to the Commission 
within 24 hours), the Commission shall notify each candidate in the 
election who is an eligible House of Representatives candidate under 
title V of the report.''.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

   Subtitle A--Limitations on Political Action Committees and Large 
                      Contributions of Individuals

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

    (a) Modification of Limits on Contributions by Political Action 
Committees.--
            (1) In general.--Section 315(a)(2)(A) of such Act (2 U.S.C. 
        441a(a)(2)(A)) is amended to read as follows:
            ``(A) to any candidate and the candidate's authorized 
        political committees with respect to any election for Federal 
        office--
                    ``(i) in the case of a candidate for election for 
                the office of Representative to, or Delegate or 
                Resident Commissioner in, the Congress, to the extent 
                that the acceptance of the contribution will result in 
                the aggregate amount of contributions received by the 
                candidate and the committees to exceed 25 percent of 
                the applicable limit on expenditures with respect to 
                the election cycle involved under section 502, without 
                regard to whether or not the candidate is an eligible 
                House of Representatives candidate under title V; or
                    ``(ii) which, in the aggregate, exceed the maximum 
                amount which an individual may contribute to the 
                candidate and the candidate's authorized political 
                committees with respect to the election under paragraph 
                (1)(A);''.
            (2) Return of certain excess contributions.--Section 315(f) 
        of such Act (2 U.S.C. 441a(f)) is amended--
                    (A) by striking ``(f)'' and inserting ``(f)(1)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) A candidate (or authorized committees of such candidate) who 
receives a contribution from a multicandidate political committee in 
excess of the amount allowed under subsection (a)(2)(A)(i) shall return 
the amount of such excess contribution to the contributor.''.
    (b) Prohibition of Leadership Committees.--Section 302(e) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)) is amended--
            (1) by amending paragraph (3) 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, but only 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.''; and
            (2) by adding at the end the following new paragraph:
    ``(6)(A) A candidate for Federal office or any individual holding 
Federal office may not directly or indirectly establish, finance, 
maintain, or control any Federal or non-Federal political committee 
other than a principal campaign committee of the candidate, authorized 
committee, party committee, or other political committee designated in 
accordance with paragraph (3). A candidate for more than one Federal 
office may designate a separate principal campaign committee for each 
Federal office. This paragraph shall not preclude a Federal 
officeholder who is a candidate for State or local office from 
establishing, financing, maintaining, or controlling a political 
committee for election of the individual to such State or local office.
    ``(B) For one year after the effective date of this paragraph, any 
political committee established before such date but which is 
prohibited under subparagraph (A) may continue to make contributions. 
At the end of that period such political committee shall disburse all 
funds by one or more of the following means:
            ``(i) Making contributions to an entity qualified under 
        section 501(c)(3) of the Internal Revenue Code of 1986 that is 
        not established, maintained, financed, or controlled directly 
        or indirectly by any candidate for Federal office or any 
        individual holding Federal office.
            ``(ii) Making a contribution to the treasury of the United 
        States.
            ``(iii) Making contributions to the national, State, or 
        local committees of a political party.
            ``(iv) Making contributions not to exceed $1,000 to 
        candidates for elective office.''.

SEC. 202. AGGREGATE LIMIT ON LARGE CONTRIBUTIONS.

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

     ``aggregate limit on large contributions for house candidates

    ``Sec. 323. (a) In General.--It shall be unlawful for a candidate 
for election for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress (or the authorized committees of 
such candidate) to accept any contribution from an individual in excess 
of $250 to the extent that the acceptance of such contribution will 
cause the aggregate amount of contributions from individuals in excess 
of $250 received by the candidate and the candidate's authorized 
committees to exceed an amount equal to 25 percent of the applicable 
election cycle spending limit with respect to the election under 
section 502, without regard to whether or not the candidate is an 
eligible House of Representatives candidate under title V.
    ``(b) Exception for Certain Candidates.--The restrictions of 
subsection (a) shall not apply to any candidate with respect to whom 
section 315(a)(1)(B) (as added by section 104 of the Campaign 
Independence Restoration Act Part II) applies.''.

                       Subtitle B--Contributions

SEC. 211. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS.

    Section 315(a)(8) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(8)) is amended to read as follows:
    ``(8)(A) For purposes of the limitations imposed by this section, 
all contributions made by a person, either directly or indirectly, on 
behalf of a particular candidate, including contributions which are in 
any way earmarked or otherwise directed through an intermediary or 
conduit to such candidate, shall be treated as contributions from such 
person to such candidate. The intermediary or conduit shall report the 
original source and the intended recipient of such contribution to the 
Commission and to the intended recipient.
    ``(B) Contributions that a bundler delivers to 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.
    ``(C) For purposes of this paragraph, the following definitions 
shall apply:
            ``(i) A `bundler' means any of the following intermediaries 
        or conduits which delivers contributions from others (except as 
        provided in subparagraph (D)):
                    ``(I) A political committee (other than the 
                authorized campaign committee of the candidate 
                receiving the funds).
                    ``(II) Any officer, employee or agent of a 
                political committee.
                    ``(III) A corporation, labor union, or partnership.
                    ``(IV) Any officer, employee, or agent of a 
                corporation, labor union or partnership, but only if 
                acting on behalf of such entity.
                    ``(V) A person whose activities are required to be 
                reported under the Lobbying Disclosure Act of 1995 or a 
                person whose activities are required to be reported 
                pursuant to any successor Federal law which requires 
                reporting on the activities of person who is a lobbyist 
                or foreign agent.
            ``(ii) `Acting on behalf of such entity' means--
                    ``(I) soliciting one or more contributions in the 
                name of such entity;
                    ``(II) soliciting one or more contributions using 
                other than incidental resources of such entity, and
                    ``(III) soliciting one or more contributions by 
                directing a significant portion of the solicitations to 
                other officers, employees, agents, or members of such 
                entity.
            ``(iii) `Deliver' means any method used by a bundler to 
        transmit contributions to a candidate which communicates to the 
        candidate (or to the person who receives the contributions on 
        behalf of the candidate) that the bundler had solicited or 
        collected the contributions for the candidate, including (but 
        not limited to)--
                    ``(I) personal delivery;
                    ``(II) United States mail or other similar 
                services;
                    ``(III) messenger service, or
                    ``(IV) collection of the contributions at an event 
                or reception.
    ``(D) For purposes of this paragraph, the following shall not be 
considered a `bundler':
            ``(i) A candidate or Federal office holder who conducts 
        fundraising efforts for the benefit of another candidate.
            ``(ii) An individual who, using the individual's personal 
        resources and acting in the individual's own name, solicits, 
        collects, or conveys contributions to a candidate or his agent, 
        other than any individual described in subparagraph (C)(i)(II) 
        or (C)(i)(V).''.

          Subtitle C--Additional Prohibitions on Contributions

SEC. 221. PROHIBITION OF CONTRIBUTIONS BY NONCITIZENS AND OTHER 
              INDIVIDUALS NOT QUALIFIED TO VOTE.

    (a) Prohibition.--Section 319 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441e) is amended--
            (1) in the heading, by adding ``AND INDIVIDUALS NOT 
        QUALIFIED TO REGISTER TO VOTE'' at the end; and
            (2) in subsection (a)--
                    (A) by striking ``(a)'' and inserting ``(a)(1)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) It shall be unlawful for an individual who is not 
        qualified to register to vote in a Federal election to make a 
        contribution, or to promise expressly or impliedly to make a 
        contribution, in connection with a Federal election, or for any 
        person to solicit, accept, or receive a contribution in 
        connection with a Federal election from an individual who is 
        not qualified to register to vote in a Federal election.''.
    (b) Inclusion in Definition of Identification.--Section 301(13) of 
such Act (2 U.S.C. 431(13)) is amended--
            (1) in subparagraph (A), by striking ``employer;'' and 
        inserting ``employer, together with an affirmation that the 
        individual is an individual who is not prohibited by section 
        319 from making a contribution'' after ``employer''; and
            (2) in subparagraph (B) by inserting ``and an affirmation 
        that the person is a person that is not prohibited by section 
        319 from making a contribution'' after ``such person''.

          Subtitle D--Coordinated and Independent Expenditures

SEC. 231. CLARIFICATION OF DEFINITIONS RELATING TO INDEPENDENT 
              EXPENDITURES.

    (a) Definition of ``Independent Expenditure''.--Section 301(17) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 431(17)) is amended 
to read as follows:
    ``(17)(A) The term `independent expenditure' means an expenditure 
that--
            ``(i) contains express advocacy; and
            ``(ii) is made without the participation or cooperation of, 
        or without consultation with, or without coordination with a 
        candidate or a candidate's authorized committee or agent 
        (within the meaning of section 301(8)(A)(iii).
    ``(B) The term `independent expenditure' does not include an 
expenditure or payment made in coordination with a candidate (within 
the meaning of section 301(8)(A)(iii)).''.
    (b) Definition of ``Express Advocacy''.--Section 301 of such Act (2 
U.S.C. 431) is amended by adding at the end the following:
    ``(20)(A) Subject to subparagraph (B), the term `express advocacy' 
includes--
            ``(i) a communication that conveys a message that advocates 
        the election or defeat of a clearly identified candidate for 
        Federal office by using an expression such as `vote for', 
        `elect', `support', `vote against', `defeat', `reject', `(name 
        of candidate) for Congress', `vote pro-life', or `vote pro-
        choice', accompanied by a listing or picture of a clearly 
        identified candidate described as `pro-life' or `pro-choice', 
        `reject the incumbent', or a similar expression;
            ``(ii) a communication that is made through a broadcast 
        medium, newspaper, magazine, billboard, direct mail, or similar 
        type of general public communication or political advertising 
        that refers to a clearly identified candidate, that a 
        reasonable person would understand as advocating the election 
        or defeat of the candidate, and that is made within 30 days 
        before the date of a primary election (and is targeted to the 
        State in which the primary is occurring), or 60 days before a 
        general election; or
            ``(iii) a communication that is made through a broadcast 
        medium, newspaper, magazine, billboard, direct mail, or similar 
        type of general public communication or political advertising 
        that refers to a clearly identified candidate, that a 
        reasonable person would understand as advocating the election 
        or defeat of a candidate, that is made before the date that is 
        30 days before the date of a primary election, or 60 days 
        before the date of a general election, and that is made for the 
        purpose of advocating the election or defeat of the candidate, 
        as shown by one or more factors such as a statement or action 
        by the person making the communication, the targeting or 
placement of the communication, or the use by the person making the 
communication of polling, demographic, or other similar data relating 
to the candidate's campaign or election.
    ``(B) The term `express advocacy' does not include the publication 
or distribution of a communication that is limited solely to providing 
information about the voting record of elected officials on legislative 
matters and that a reasonable person would not understand as advocating 
the election or defeat of a particular candidate.''.

SEC. 232. TREATMENT OF COORDINATED EXPENDITURES AS CONTRIBUTIONS.

    (a) In General.--Section 301(8) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(8)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``or'' at the end of clause (i);
                    (B) by striking the period at the end of clause 
                (ii) and inserting ``; or''; and
                    (C) by adding at the end the following:
                            ``(iii) a payment made for a communication 
                        or anything of value that is for the purpose of 
                        influencing an election for Federal office and 
                        that is a payment made in coordination with a 
                        candidate.''; and
            (2) by adding at the end the following:
                    ``(C) For the purposes of subparagraph (A)(iii), 
                the term `payment made in coordination with a 
                candidate' includes--
                            ``(i) a payment made by a person in 
                        cooperation, consultation, or concert with, at 
                        the request or suggestion of, or pursuant to 
                        any general or particular understanding with a 
                        candidate, the candidate's authorized 
                        committee, or an agent acting on behalf of a 
                        candidate or authorized committee;
                            ``(ii) a payment made by a person for the 
                        dissemination, distribution, or republication, 
                        in whole or in part, of any broadcast or any 
                        written, graphic, or other form of campaign 
                        material prepared by a candidate, a candidate's 
                        authorized committee, or an agent of a 
                        candidate or authorized committee (not 
                        including a communication described in 
                        subparagraph (B)(i) or a communication that 
                        expressly advocates the candidate's defeat);
                            ``(iii) a payment made based on information 
                        about a candidate's plans, projects, or needs 
                        provided to the person making the payment by 
                        the candidate or the candidate's agent who 
                        provides the information with a view toward 
                        having the payment made;
                            ``(iv) a payment made by a person if, in 
                        the same election cycle in which the payment is 
                        made, the person making the payment is serving 
                        or has served as a member, employee, 
                        fundraiser, or agent of the candidate's 
                        authorized committee in an executive or 
                        policymaking position;
                            ``(v) a payment made by a person if the 
                        person making the payment has served in any 
                        formal policy or advisory position with the 
                        candidate's campaign or has participated in 
                        strategic or policymaking discussions with the 
                        candidate's campaign relating to the 
                        candidate's pursuit of nomination for election, 
                        or election, to Federal office, in the same 
                        election cycle as the election cycle in which 
                        the payment is made; and
                            ``(vi) a payment made by a person if, in 
                        the same election cycle, the person making the 
                        payment retains the professional services of 
                        any individual or person who has provided or is 
                        providing campaign-related services in the same 
                        election cycle to a candidate in connection 
                        with the candidate's pursuit of nomination for 
                        election, or election, to Federal office, 
                        including services relating to the candidate's 
                        decision to seek Federal office, and the 
                        professional is retained to work on activities 
                        relating to that candidate's campaign.
                    ``(D) For purposes of subparagraph (C)(vi), the 
                term `professional services' includes services in 
                support of a candidate's pursuit of nomination for 
                election, or election, to Federal office such as 
                polling, media advice, direct mail, fundraising, or 
                campaign research.
    (b) Application for Purposes of Contribution Limits.--Section 
315(a)(7)(B) of such Act (2 U.S.C. 441a(a)(7)(B)) is amended to read as 
follows:
                    ``(B) Payments made in coordination with a 
                candidate, as described in section 301(8)(A)(iii), 
                shall be considered to be contributions to such 
                candidate, and in the case of limitations on 
                expenditures, shall be treated as expenditures for 
                purposes of this paragraph.''.
    (c) Application for Purposes of Contributions of Corporations and 
Labor Organizations.--Section 316(b)(2) of such Act (2 U.S.C. 441b(b)) 
is amended by striking ``shall include'' and inserting ``includes a 
contribution or expenditure, as those terms are defined in section 301, 
and also includes''.

SEC. 233. TREATMENT OF CERTAIN PARTY EXPENDITURES AND COMMUNICATIONS 
              CONTAINING EXPRESS ADVOCACY AS EXPENDITURES.

    Section 301(9)(A) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(9)(A)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
                            ``(iii) any payment during an election year 
                        (or within 60 days before a special election in 
                        a nonelection year) for a communication that is 
                        made through any broadcast medium, newspaper, 
                        magazine, billboard, direct mail, or similar 
                        type of general public communication or 
                        political advertising by a national, State, 
                        district, or local committee of a political 
                        party, including a congressional campaign 
                        committee of a party, that refers to a clearly 
                        identified candidate; and
                            ``(iv) any payment for a communication that 
                        contains express advocacy.''.

SEC. 234. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.

    Section 304(c) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(c)) is amended--
            (1) in paragraph (2), by striking the undesignated matter 
        after subparagraph (C);
            (2) by redesignating paragraph (3) as paragraph (7); and
            (3) by inserting after paragraph (2), as amended by 
        paragraph (1), the following 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. Not later than 2 business 
days after the Commission receives a report, the Commission shall 
transmit a copy of the report to each 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). The Commission shall notify each 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 $25,000 have been made in the same election in favor of 
another candidate or against an eligible House of Representatives 
candidate under title V, the Commission shall, within 2 business days, 
notify the eligible candidate that such candidate is entitled under 
section 502(g) to raise additional contributions equaling the amount of 
such independent expenditures. At such time as the aggregate amount the 
independent expenditures referred to in the preceding sentence, 
combined with the expenditures of all other candidates in such 
election, equals 100 percent of the applicable expenditure limit with 
respect to the election under section 502, the Commission shall, within 
2 business days, notify the eligible candidate that such candidate is 
entitled under section 502(g) to make the expenditures provided for in 
section 502(g).
    ``(6)(A) A person who reserves broadcast time the payment for which 
would constitute an independent expenditure within the meaning of 
section 301(17) shall at the time of the reservation--
            ``(i) inform the broadcast licensee that payment for the 
        broadcast time will constitute an independent expenditure;
            ``(ii) inform the broadcast licensee of the names of all 
        candidates for the office to which the proposed broadcast 
        relates and state whether the message to be broadcast is 
        intended to be made in support of or in opposition to each such 
        candidate; and
            ``(iii) provide the broadcast licensee a copy of the report 
        described in paragraph (3).
    ``(B) For purposes of this paragraph, the term `broadcast' includes 
any cablecast.
    ``(C) A licensee who is informed as described in subparagraph (A) 
shall--
            ``(i) notify each such candidate described in subparagraph 
        (A)(ii) of the proposed making of the independent expenditure; 
        and
            ``(ii) allow any such candidate (other than a candidate for 
        whose benefit the independent expenditure is made) to purchase 
        the same amount of broadcast time immediately after the 
        broadcast time paid for by the independent expenditure, at the 
        cost specified in section 315(b) of the Communications Act of 
        1934, as amended by section 102 of the Campaign Independence 
        Restoration Act Part II.''.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. SEVERABILITY.

    If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any other 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 other person or circumstance shall not be affected 
thereby.

SEC. 302. 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. 303. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by, 
and the provisions of, this Act shall take effect 60 days after the 
date of the enactment of this Act.

SEC. 304. 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.
                                 <all>