[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2147 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2147

To amend the Federal Election Campaign Act of 1971 to prohibit the use 
   of soft money by political parties and to require annual written 
  authorization for the use of amounts withheld from an individual's 
   wages or salary for political activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 1997

Mrs. Linda Smith of Washington (for herself, Mr. Sanford, and Mr. Wamp) 
 introduced the following bill; which was referred to the Committee on 
                            House Oversight

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Election Campaign Act of 1971 to prohibit the use 
   of soft money by political parties and to require annual written 
  authorization for the use of amounts withheld from an individual's 
   wages or salary for political activities, 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 ``Anti-Money Laundering and Paycheck 
Accountability Act''.

SEC. 2. BAN ON NON-FEDERAL FUNDS OF POLITICAL PARTIES.

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

          ``ban on use non-federal funds of political parties

    ``Sec. 323. (a) Ban Described.--
            ``(1) In general.--Except as otherwise provided in this 
        section, no funds may be solicited, contributed, or expended by 
        any political party committee for purposes of any activity 
        influencing an election for Federal office (without regard to 
        whether the activity involved also influences any other 
        election) unless the funds are subject to the limitations, 
        prohibitions, and reporting requirements of this Act.
            ``(2) Examples of activities covered.--For purposes of 
        paragraph (1), the following activities shall be considered to 
        be examples of activities influencing an election for Federal 
        office:
                    ``(A) Voter registration.
                    ``(B) Absentee ballot programs.
                    ``(C) Get-out-the-vote programs.
                    ``(D) Generic campaign activity.
                    ``(E) The making or disseminating of any 
                communication which identifies (by name, likeness, or 
                representation) any candidate for election for Federal 
                office.
    ``(b) Funds Available for Party Communications With Members.--
            ``(1) In general.--Subsection (a) shall not apply with 
        respect to funds solicited, contributed, or expended by a 
        political party committee for communications to the extent the 
        communications are made to members of the party, except that 
        funds used for any communications which are both for the 
        purpose of expressly advocating the election or defeat of a 
        specific candidate for election to Federal office and for any 
        other purpose shall be allocated among the candidates involved 
        on the basis of the time and space allocated to the candidates.
            ``(2) Party members described.--For purposes of paragraph 
        (1), an individual shall be considered to be a `member' of a 
        political party if any of the following apply:
                    ``(A) The individual is registered to vote as a 
                member of the party.
                    ``(B) There is a public record that the individual 
                voted in the primary of the party during the most 
                recent primary election.
                    ``(C) The individual has made a contribution to the 
                party and the contribution has been reported to the 
                Commission (in accordance with this Act) or to a State 
                reporting agency.
                    ``(D) The individual has indicated in writing that 
                the individual is a member of the party.
    ``(c) Funds Available for State and Local Party Volunteer and 
Grassroots Activities.--
            ``(1) In general.--Subsection (a) shall not apply with 
        respect to funds solicited, contributed, or expended by a 
        political party committee for activities described in paragraph 
        (2), except that any payments which are both for the purpose of 
        expressly advocating the election or defeat of a specific 
        candidate for election to Federal office and for any other 
        purpose shall be allocated among the candidates involved on the 
        basis of the time and space allocated to the candidates for 
        such activities.
            ``(2) Activities described.--The activities described in 
        this paragraph are as follows:
                    ``(A) The listing of the slate of the party's 
                candidates, including the communication of the slate to 
                the public.
                    ``(B) The mailing of materials for or on behalf of 
                specific candidates by volunteers (including labeling 
                envelopes or affixing postage or other indicia to 
                particular pieces of mail), other than the mailing of 
                materials to a commercial list.
                    ``(C) Conducting a telephone bank for or on behalf 
                of specific candidates staffed by volunteers.
                    ``(D) The distribution of collateral materials 
                (such as pins, bumper stickers, handbills, brochures, 
                posters, party tabloids, and yard signs) for or on 
                behalf of specific candidates (whether by volunteers or 
                otherwise).
    ``(d) Limit on Amount Contributed for Exempted Party-Building 
Activities.--No person may make contributions to a political party 
committee for activities described in subsection (b) or subsection (c) 
with respect to an election in an aggregate amount in excess of 
$25,000. Any amounts contributed by an individual for such activities 
shall be included in determining whether the individual has made 
contributions in excess of the aggregate annual limit on contributions 
provided in section 315(a)(3).
    ``(e) Political Party Committee Defined.--For purposes of this 
section, the term `political party committee' means a political 
committee which is a national, State, district, or local political 
party committee (including any subordinate committee thereof).''.

SEC. 3. REQUIRING ANNUAL WRITTEN AUTHORIZATION FOR USE OF PAYROLL 
              DEDUCTIONS FOR POLITICAL ACTIVITIES.

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

``requiring annual written authorization for use of payroll deductions 
                        for political activities

    ``Sec. 324. (a) Requirements for Authorization of Deduction.--
            ``(1) In general.--No amounts withheld from an individual's 
        wages or salary during a year may be used by any person 
        receiving the withheld amounts for any political activity 
        unless there is in effect an authorization in writing by the 
        individual permitting the withholding of such amounts for such 
        activities.
            ``(2) Period of authorization.--An authorization described 
        in this subsection may be in effect with respect to an 
        individual for such period as the individual may specify 
        (subject to cancellation under paragraph (3)), except that the 
        period may not be longer than 12 months.
            ``(3) Right of cancellation.--An individual with an 
        authorization in effect under this subsection may cancel or 
        revise the authorization at any time, and any such cancellation 
        or revision shall apply to amounts used after the date of the 
        cancellation or revision.
            ``(4) Political activity defined.--In this section, the 
        term `political activity' means--
                    ``(A) attempting to influence legislation;
                    ``(B) participating or intervening in (including 
                the publishing or distributing of statements) any 
                political campaign on behalf of (or in opposition to) 
                any candidate for public office; or
                    ``(C) influencing or attempting to influence the 
                selection, nomination, election, or appointment of any 
                individual to any Federal, State, or local public 
                office or to any office in a political party, 
                committee, association or fund.
    ``(b) Information Provided by Withholding Entity.--
            ``(1) In general.--Each entity withholding wages or salary 
        from an individual with an authorization in effect under 
        subsection (a) shall provide the individual with a statement 
        that the individual may at any time cancel or revise the 
        authorization in accordance with subsection (a)(3).
            ``(2) Timing of notice.--The entity shall provide the 
        information described in paragraph (1) to an individual at the 
        beginning of each calendar year occurring during the period in 
        which the individual's authorization is in effect.''.

SEC. 4. PROHIBITION OF LEADERSHIP COMMITTEES.

    (a) Leadership Committee Prohibition.--Section 302 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 432) is amended by adding at 
the end the following new subsection:
    ``(j) A candidate for Federal office or an individual holding 
Federal office may not establish, maintain, finance, or control a 
political committee, other than a principal campaign committee of the 
candidate or the individual.''.
    (b) Conforming Amendment Relating to Joint Fundraising.--Section 
302(e)(3)(A) of such Act (2 U.S.C. 432(e)(3)) is amended by striking 
``except that--'' and all that follows and inserting the following: 
``except that the candidate for the office of President nominated by a 
political party may designate the national committee of such political 
party as a principal campaign committee, but only if that national 
committee maintains separate books of account with respect to its 
function as a principal campaign committee.''.
    (c) Effective Date; Transition Rule.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to elections occurring in years beginning 
        with 1999.
            (2) Transition rule.--
                    (A) In general.--Notwithstanding section 302(j) of 
                the Federal Election Campaign Act of 1971 (as added by 
                subsection (a)), if a political committee established, 
                maintained, financed, or controlled by a candidate for 
                Federal office or an individual holding Federal office 
                (other than a principal campaign committee of the 
                candidate or individual) with respect to an election 
                occurring during 1998 has funds remaining unexpended 
                after the 1998 general election, the committee may make 
                contributions or expenditures of such funds with 
                respect to elections occurring during 1999 or 2000.
                    (B) Disbanding committees; treatment of remaining 
                funds.--Any political committee described in 
                subparagraph (A) shall be disbanded after filing any 
                post-election reports required under section 304 of the 
                Federal Election Campaign Act of 1971 with respect to 
                the 2000 general election. Any funds of such a 
                committee which remain unexpended after the 2000 
                general election and before the date on which the 
                committee disbands shall be returned to contributors or 
                available for any lawful purpose other than use by the 
                candidate or individual involved with respect to an 
                election for Federal office.

SEC. 5. REQUIRING REPORTING WITHIN 24 HOURS OF ALL CONTRIBUTIONS 
              RECEIVED WITHIN 20 DAYS OF ELECTION.

    (a) In General.--Section 304(a)(6)(A) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434(a)(6)(A)) is amended to read as 
follows:
    ``(6)(A) Each political committee shall notify the Secretary or the 
Commission, and the Secretary of State, as appropriate, in writing, of 
any contribution received by the committee during the period which 
begins on the 20th day before an election and ends at the time the 
polls close for such election. This notification shall be made within 
24 hours (or, if earlier, by midnight of the day on which the 
contribution is deposited) after the receipt of such contribution and 
shall include the name of the candidate and the office sought by the 
candidate, the identification of the contributor, and the date of 
receipt and amount of the contribution.''.
    (b) Availability of Information on Internet.--Section 304(a)(6) of 
such Act (2 U.S.C. 434(a)(6)) is amended by adding at the end the 
following new subparagraph:
    ``(C)(i) The Commission shall make the information contained in the 
reports submitted under this paragraph available on the Internet and 
publicly available at the offices of the Commission as soon as 
practicable (but in no case later than 24 hours) after the information 
is received by the Commission.
    ``(ii) In this subparagraph, the term `Internet' means the 
international computer network of both Federal and non-Federal 
interoperable packet-switched data networks.''.

SEC. 6. EFFECTIVE DATE.

    Except where otherwise provided, the amendments made by this Act 
shall apply with respect to elections occurring after December 1998.
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