[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3476 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3476

             To reform the financing of Federal elections.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 1998

  Mr. Levin introduced the following bill; which was referred to the 
Committee on House Oversight, and in addition to the Committees on Ways 
     and Means, Education and the Workforce, Government Reform and 
     Oversight, and the Judiciary, 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 reform the financing of Federal elections.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Campaign Finance 
Improvement Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

Sec. 101. Soft money of political parties.
Sec. 102. Increased contribution limits for State committees of 
                            political parties and aggregate 
                            contribution limit for individuals.
Sec. 103. Reporting requirements.
           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

Sec. 201. Definitions.
Sec. 202. Civil penalty.
Sec. 203. Reporting requirements for certain independent expenditures.
Sec. 204. Independent versus coordinated expenditures by party.
Sec. 205. Coordination with candidates.
                         TITLE III--DISCLOSURE

Sec. 301. Filing of reports using computers and facsimile machines.
Sec. 302. Prohibition of deposit of contributions with incomplete 
                            contributor information.
Sec. 303. Audits.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Use of candidates' names.
Sec. 306. Prohibition of false representation to solicit contributions.
Sec. 307. Soft money of persons other than political parties.
Sec. 308. Campaign advertising.
                    TITLE IV--PERSONAL WEALTH OPTION

Sec. 401. Voluntary personal funds expenditure limit.
Sec. 402. Political party committee coordinated expenditures.
                         TITLE V--MISCELLANEOUS

Sec. 501. Codification of Beck decision.
Sec. 502. Use of contributed amounts for certain purposes.
Sec. 503. Limit on congressional use of the franking privilege.
Sec. 504. Prohibition of fundraising on Federal property.
Sec. 505. Penalties for knowing and willful violations.
Sec. 506. Strengthening foreign money ban.
Sec. 507. Prohibition of contributions by minors.
Sec. 508. Expedited procedures.
Sec. 509. Initiation of enforcement proceeding.
Sec. 510. Limitations on political activity by tax-exempt 
                            organizations.
Sec. 511. Definitions of political committee and political 
                            organization.
 TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

Sec. 601. Severability.
Sec. 602. Review of constitutional issues.
Sec. 603. Effective date.
Sec. 604. Regulations.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

SEC. 101. SOFT MONEY OF POLITICAL PARTIES.

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

``SEC. 323. SOFT MONEY OF POLITICAL PARTIES.

    ``(a) National Committees.--
            ``(1) In general.--A national committee of a political 
        party (including a national congressional campaign committee of 
        a political party) and any officers or agents of such party 
        committees, shall not solicit, receive, or direct to another 
        person a contribution, donation, or transfer of funds, or spend 
        any funds, that are not subject to the limitations, 
        prohibitions, and reporting requirements of this Act.
            ``(2) Applicability.--This subsection shall apply to an 
        entity that is directly or indirectly established, financed, 
        maintained, or controlled by a national committee of a 
        political party (including a national congressional campaign 
        committee of a political party), or an entity acting on behalf 
        of a national committee, and an officer or agent acting on 
        behalf of any such committee or entity.
    ``(b) State, District, and Local Committees.--
            ``(1) In general.--An amount that is expended or disbursed 
        by a State, district, or local committee of a political party 
        (including an entity that is directly or indirectly 
        established, financed, maintained, or controlled by a State, 
        district, or local committee of a political party and an 
        officer or agent acting on behalf of such committee or entity) 
        for Federal election activity shall be made from funds subject 
        to the limitations, prohibitions, and reporting requirements of 
        this Act.
            ``(2) Federal election activity.--
                    ``(A) In general.--The term `Federal election 
                activity' means--
                            ``(i) voter registration activity during 
                        the period that begins on the date that is 120 
                        days before the date a regularly scheduled 
                        Federal election is held and ends on the date 
                        of the election;
                            ``(ii) voter identification, get-out-the-
                        vote activity, or generic campaign activity 
                        conducted in connection with an election in 
                        which a candidate for Federal office appears on 
                        the ballot (regardless of whether a candidate 
                        for State or local office also appears on the 
                        ballot); and
                            ``(iii) a communication that refers to a 
                        clearly identified candidate for Federal office 
                        (regardless of whether a candidate for State or 
                        local office is also mentioned or identified) 
                        and is made for the purpose of influencing a 
                        Federal election (regardless of whether the 
                        communication is express advocacy).
                    ``(B) Excluded activity.--The term `Federal 
                election activity' does not include an amount expended 
                or disbursed by a State, district, or local committee 
                of a political party for--
                            ``(i) campaign activity conducted solely on 
                        behalf of a clearly identified candidate for 
                        State or local office, provided the campaign 
                        activity is not a Federal election activity 
                        described in subparagraph (A);
                            ``(ii) a contribution to a candidate for 
                        State or local office, provided the 
                        contribution is not designated or used to pay 
                        for a Federal election activity described in 
                        subparagraph (A);
                            ``(iii) the costs of a State, district, or 
                        local political convention;
                            ``(iv) the costs of grassroots campaign 
                        materials, including buttons, bumper stickers, 
                        and yard signs, that name or depict only a 
                        candidate for State or local office;
                            ``(v) the non-Federal share of a State, 
                        district, or local party committee's 
                        administrative and overhead expenses (but not 
                        including the compensation in any month of an 
                        individual who spends more than 20 percent of 
                        the individual's time on Federal election 
                        activity) as determined by a regulation 
                        promulgated by the Commission to determine the 
                        non-Federal share of a State, district, or 
                        local party committee's administrative and 
                        overhead expenses; and
                            ``(vi) the cost of constructing or 
                        purchasing an office facility or equipment for 
                        a State, district or local committee.
    ``(c) Fundraising Costs.--An amount spent by a national, State, 
district, or local committee of a political party, by an entity that is 
established, financed, maintained, or controlled by a national, State, 
district, or local committee of a political party, or by an agent or 
officer of any such committee or entity, to raise funds that are used, 
in whole or in part, to pay the costs of a Federal election activity 
shall be made from funds subject to the limitations, prohibitions, and 
reporting requirements of this Act.
    ``(d) Tax-Exempt Organizations.--A national, State, district, or 
local committee of a political party (including a national 
congressional campaign committee of a political party, an entity that 
is directly or indirectly established, financed, maintained, or 
controlled by any such national, State, district, or local committee or 
its agent, an agent acting on behalf of any such party committee, and 
an officer or agent acting on behalf of any such party committee or 
entity), shall not solicit any funds for, or make or direct any 
donations to, an organization that is described in section 501(c) of 
the Internal Revenue Code of 1986 and exempt from taxation under 
section 501(a) of such Code (or has submitted an application to the 
Secretary of the Internal Revenue Service for determination of tax-
exemption under such section).
    ``(e) Candidates.--
            ``(1) In general.--A candidate, individual holding Federal 
        office, or agent of a candidate or individual holding Federal 
        office shall not solicit, receive, direct, transfer, or spend 
        funds for a Federal election activity on behalf of such 
        candidate, individual, agent or any other person, unless the 
        funds are subject to the limitations, prohibitions, and 
        reporting requirements of this Act.
            ``(2) State law.--Paragraph (1) does not apply to the 
        solicitation or receipt of funds by an individual who is a 
        candidate for a State or local office if the solicitation or 
        receipt of funds is permitted under State law for any activity 
        other than a Federal election activity.
            ``(3) Fundraising events.--Paragraph (1) does not apply in 
        the case of a candidate who attends, speaks, or is a featured 
        guest at a fundraising event sponsored by a State, district, or 
        local committee of a political party.''.

SEC. 102. INCREASED CONTRIBUTION LIMITS FOR STATE COMMITTEES OF 
              POLITICAL PARTIES AND AGGREGATE CONTRIBUTION LIMIT FOR 
              INDIVIDUALS.

    (a) Contribution Limit for State Committees of Political Parties.--
Section 315(a)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(1)) is amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C)--
                    (A) by inserting ``(other than a committee 
                described in subparagraph (D))'' after ``committee''; 
                and
                    (B) by striking the period at the end and inserting 
                ``; or''; and
            (3) by adding at the end the following:
            ``(D) to a political committee established and maintained 
        by a State committee of a political party in any calendar year 
        that, in the aggregate, exceed $10,000''.
    (b) Aggregate Contribution Limit for Individual.--Section 315(a)(3) 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is 
amended by striking ``$25,000'' and inserting ``$30,000''.

SEC. 103. REPORTING REQUIREMENTS.

    (a) Reporting Requirements.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 203) is 
amended by adding at the end the following:
    ``(e) Political Committees.--
            ``(1) National and congressional political committees.--The 
        national committee of a political party, any national 
        congressional campaign committee of a political party, and any 
        subordinate committee of either, shall report all receipts and 
        disbursements during the reporting period.
            ``(2) Other political committees to which section 323 
        applies.--A political committee (not described in paragraph 
        (1)) to which section 323(b)(1) applies shall report all 
        receipts and disbursements made for activities described in 
        paragraphs (2) and (3)(A)(v) of section 323(b).
            ``(3) Itemization.--If a political committee has receipts 
        or disbursements to which this subsection applies from any 
        person aggregating in excess of $200 for any calendar year, the 
        political committee shall separately itemize its reporting for 
        such person in the same manner as required in paragraphs 
        (3)(A), (5), and (6) of subsection (b).
            ``(4) Reporting periods.--Reports required to be filed 
        under this subsection shall be filed for the same time periods 
        required for political committees under subsection (a).''.
    (b) Building Fund Exception to the Definition of Contribution.--
Section 301(8)(B) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(8)(B)) is amended--
            (1) by striking clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

SEC. 201. DEFINITIONS.

    (a) Definition of Independent Expenditure.--Section 301 of the 
Federal Election Campaign Act (2 U.S.C. 431) is amended by striking 
paragraph (17) and inserting the following:
            ``(17) Independent expenditure.--
                    ``(A) In general.--The term `independent 
                expenditure' means an expenditure by a person--
                            ``(i) for a communication that is express 
                        advocacy; and
                            ``(ii) that is not provided in coordination 
                        with a candidate or a candidate's agent or a 
                        person who is coordinating with a candidate or 
                        a candidate's agent.''.
    (b) Definition of Express Advocacy.--Section 301 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431) is amended by adding at 
the end the following:
            ``(20) Express advocacy.--
                    ``(A) In general.--The term `express advocacy' 
                means a communication that advocates the election or 
                defeat of a candidate by--
                            ``(i) containing a phrase such as `vote 
                        for', `re-elect', `support', `cast your ballot 
                        for', `(name of candidate) for Congress', 
                        `(name of candidate) in 1997', `vote against', 
                        `defeat', `reject', or a campaign slogan or 
                        words that in context can have no reasonable 
                        meaning other than to advocate the election or 
                        defeat of 1 or more clearly identified 
                        candidates;
                            ``(ii) referring to 1 or more clearly 
                        identified candidates in a paid advertisement 
                        that is broadcast by a radio broadcast station 
                        or a television broadcast station within 60 
                        calendar days preceding the date of an election 
                        of the candidate and that appears in the State 
                        in which the election is occurring, except that 
                        with respect to a candidate for the office of 
                        Vice President or President, the time period is 
                        within 60 calendar days preceding the date of a 
                        general election; or
                            ``(iii) expressing unmistakable and 
                        unambiguous support for or opposition to 1 or 
                        more clearly identified candidates when taken 
                        as a whole and with limited reference to 
                        external events, such as proximity to an 
                        election.
                    ``(B) Voting record and voting guide exception.--
                The term `express advocacy' does not include a printed 
                communication that--
                            ``(i) presents information in an 
                        educational manner solely about the voting 
                        record or position on a campaign issue of 2 or 
                        more candidates;
                            ``(ii) that is not made in coordination 
                        with a candidate, political party, or agent of 
                        the candidate or party; or a candidate's agent 
                        or a person who is coordinating with a 
                        candidate or a candidate's agent;
                            ``(iii) does not contain a phrase such as 
                        `vote for', `re-elect', `support', `cast your 
                        ballot for', `(name of candidate) for 
                        Congress', `(name of candidate) in 1997', `vote 
                        against', `defeat', or `reject', or a campaign 
                        slogan or words that in context can have no 
                        reasonable meaning other than to urge the 
                        election or defeat of 1 or more clearly 
                        identified candidates.''.
    (c) Definition of Expenditure.--Section 301(9)(A) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(iii) a payment for a communication that is express 
        advocacy; and
            ``(iv) a payment made by a person for a communication 
        that--
                    ``(I) refers to a clearly identified candidate;
                    ``(II) is provided in coordination with the 
                candidate, the candidate's agent, or the political 
                party of the candidate; and
                    ``(III) is for the purpose of influencing a Federal 
                election (regardless of whether the communication is 
                express advocacy).''.

SEC. 202. CIVIL PENALTY.

    Section 309 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
437g) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)(A)--
                            (i) in clause (i), by striking ``clause 
                        (ii)'' and inserting ``clauses (ii) and 
                        (iii)''; and
                            (ii) by adding at the end the following:
    ``(iii) If the Commission determines by an affirmative vote of 4 of 
its members that there is probable cause to believe that a person has 
made a knowing and willful violation of section 304(c), the Commission 
shall not enter into a conciliation agreement under this paragraph and 
may institute a civil action for relief under paragraph (6)(A).''; and
                    (B) in paragraph (6)(B), by inserting ``(except an 
                action instituted in connection with a knowing and 
                willful violation of section 304(c))'' after 
                ``subparagraph (A)''; and
            (2) in subsection (d)(1)--
                    (A) in subparagraph (A), by striking ``Any person'' 
                and inserting ``Except as provided in subparagraph (D), 
                any person''; and
                    (B) by adding at the end the following:
    ``(D) In the case of a knowing and willful violation of section 
304(c) that involves the reporting of an independent expenditure, the 
violation shall not be subject to this subsection.''.

SEC. 203. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.

    Section 304(c) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(c)) is amended--
            (1) in paragraph (2), by striking the undesignated matter 
        after subparagraph (C);
            (2) by redesignating paragraph (3) as paragraph (7); and
            (3) by inserting after paragraph (2) (as amended by 
        paragraph (1)) the following:
    ``(d) Time for Reporting Certain Expenditures.--
            ``(1) Expenditures aggregating $1,000.--
                    ``(A) Initial report.--A person (including a 
                political committee) that makes or contracts to make 
                independent expenditures aggregating $1,000 or more 
                after the 20th day, but more than 24 hours, before the 
                date of an election shall file a report describing the 
                expenditures within 24 hours after that amount of 
                independent expenditures has been made.
                    ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person shall file an 
                additional report within 24 hours after each time the 
                person makes or contracts to make independent 
                expenditures aggregating an additional $1,000 with 
                respect to the same election as that to which the 
                initial report relates.
            ``(2) Expenditures aggregating $10,000.--
                    ``(A) Initial report.--A person (including a 
                political committee) that makes or contracts to make 
                independent expenditures aggregating $10,000 or more at 
                any time up to and including the 20th day before the 
                date of an election shall file a report describing the 
                expenditures within 48 hours after that amount of 
                independent expenditures has been made.
                    ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person shall file an 
                additional report within 48 hours after each time the 
                person makes or contracts to make independent 
                expenditures aggregating an additional $10,000 with 
                respect to the same election as that to which the 
                initial report relates.
            ``(3) Place of filing; contents.--A report under this 
        subsection--
                    ``(A) shall be filed with the Commission; and
                    ``(B) shall contain the information required by 
                subsection (b)(6)(B)(iii), including the name of each 
                candidate whom an expenditure is intended to support or 
                oppose.''.

SEC. 204. INDEPENDENT VERSUS COORDINATED EXPENDITURES BY PARTY.

    Section 315(d) of the Federal Election Campaign Act (2 U.S.C. 
441a(d)) is amended--
            (1) in paragraph (1), by striking ``and (3)'' and inserting 
        ``, (3), and (4)''; and
            (2) by adding at the end the following:
            ``(4) Independent versus coordinated expenditures by 
        party.--
                    ``(A) In general.--On or after the date on which a 
                political party nominates a candidate, a committee of 
                the political party shall not make both expenditures 
                under this subsection and independent expenditures (as 
                defined in section 301(17)) with respect to the 
                candidate during the election cycle.
                    ``(B) Certification.--Before making a coordinated 
                expenditure under this subsection with respect to a 
                candidate, a committee of a political party shall file 
                with the Commission a certification, signed by the 
                treasurer of the committee, that the committee has not 
                and shall not make any independent expenditure with 
                respect to the candidate during the same election 
                cycle.
                    ``(C) Application.--For the purposes of this 
                paragraph, all political committees established and 
                maintained by a national political party (including all 
                congressional campaign committees) and all political 
                committees established and maintained by a State 
                political party (including any subordinate committee of 
                a State committee) shall be considered to be a single 
                political committee.
                    ``(D) Transfers.--A committee of a political party 
                that submits a certification under subparagraph (B) 
                with respect to a candidate shall not, during an 
                election cycle, transfer any funds to, assign authority 
                to make coordinated expenditures under this subsection 
                to, or receive a transfer of funds from, a committee of 
                the political party that has made or intends to make an 
                independent expenditure with respect to the 
                candidate.''.

SEC. 205. COORDINATION WITH CANDIDATES.

    (a) Definition of Coordination With Candidates.--
            (1) Section 301(8).--Section 301(8) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``or'' at the end of clause 
                        (i);
                            (ii) by striking the period at the end of 
                        clause (ii) and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) anything of value provided by a 
                        person in coordination with a candidate for the 
                        purpose of influencing a Federal election, 
                        regardless of whether the value being provided 
                        is a communication that is express advocacy, in 
                        which such candidate seeks nomination or 
                        election to Federal office.''; and
                    (B) by adding at the end the following:
                    ``(C) The term `provided in coordination with a 
                candidate' includes--
                            ``(i) a payment made by a person in 
                        cooperation, consultation, or concert with, at 
                        the request or suggestion of, or pursuant to 
                        any general or particular understanding with a 
                        candidate, the candidate's authorized 
                        committee, or an agent acting on behalf of a 
                        candidate or authorized committee;
                            ``(ii) a payment made by a person for the 
                        production, dissemination, distribution, or 
                        republication, in whole or in part, of any 
                        broadcast or any written, graphic, or other 
                        form of campaign material prepared by a 
                        candidate, a candidate's authorized committee, 
                        or an agent of a candidate or authorized 
                        committee (not including a communication 
                        described in paragraph (9)(B)(i) or a 
                        communication that expressly advocates the 
                        candidate's defeat);
                            ``(iii) a payment made by a person based on 
                        information about a candidate's plans, 
                        projects, or needs provided to the person 
                        making the payment by the candidate or the 
                        candidate's agent who provides the information 
                        with the intent that the payment be made;
                            ``(iv) a payment made by a person if, in 
                        the same election cycle in which the payment is 
                        made, the person making the payment is serving 
                        or has served as a member, employee, 
                        fundraiser, or agent of the candidate's 
                        authorized committee in an executive or 
                        policymaking position;
                            ``(v) a payment made by a person if the 
                        person making the payment has served in any 
                        formal policy making or advisory position with 
                        the candidate's campaign or has participated in 
                        formal strategic or formal policymaking 
                        discussions with the candidate's campaign 
                        relating to the candidate's pursuit of 
                        nomination for election, or election, to 
                        Federal office, in the same election cycle as 
                        the election cycle in which the payment is 
                        made;
                            ``(vi) a payment made by a person if, in 
                        the same election cycle, the person making the 
                        payment retains the professional services of 
                        any person that has provided or is providing 
                        campaign-related services in the same election 
                        cycle to a candidate in connection with the 
                        candidate's pursuit of nomination for election, 
                        or election, to Federal office, including 
                        services relating to the candidate's decision 
                        to seek Federal office, and the person retained 
                        is retained to work on activities relating to 
                        that candidate's campaign;
                            ``(vii) a payment made by a person who has 
                        engaged in a coordinated activity with a 
                        candidate described in clauses (i) through (vi) 
                        for a communication that clearly refers to the 
                        candidate and is for the purpose of influencing 
                        an election (regardless of whether the 
                        communication is express advocacy);
                            ``(viii) direct participation by a person 
                        in fundraising activities with the candidate or 
                        in the solicitation or receipt of contributions 
                        on behalf of the candidate;
                            ``(ix) communication by a person with the 
                        candidate or an agent of the candidate, 
                        occurring after the declaration of candidacy 
                        (including a pollster, media consultant, 
                        vendor, advisor, or staff member), acting on 
                        behalf of the candidate, about advertising 
                        message, allocation of resources, fundraising, 
                        or other campaign matters related to the 
                        candidate's campaign, including campaign 
                        operations, staffing, tactics, or strategy; or
                            ``(x) the provision of in-kind professional 
                        services or polling data to the candidate or 
                        candidate's agent.
                    ``(D) For purposes of subparagraph (C), the term 
                `professional services' includes services in support of 
                a candidate's pursuit of nomination for election, or 
                election, to Federal office such as polling, media 
                advice, direct mail, fundraising, or campaign research.
                    ``(E) For purposes of subparagraph (C), all 
                political committees established and maintained by a 
                national political party (including all congressional 
                campaign committees) and all political committees 
                established and maintained by a State political party 
                (including any subordinate committee of a State 
                committee) shall be considered to be a single political 
                committee.''.
            (2) Section 315(a)(7).--Section 315(a)(7) (2 U.S.C. 
        441a(a)(7)) is amended by striking subparagraph (B) and 
        inserting the following:
                    ``(B) a thing of value provided in coordination 
                with a candidate, as described in section 
                301(8)(A)(iii), shall be considered to be a 
                contribution to the candidate, and in the case of a 
                limitation on expenditures, shall be treated as an 
                expenditure by the candidate.
    (b) Meaning of Contribution or Expenditure for the Purposes of 
Section 316.--Section 316(b)(2) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441b(b)) is amended by striking ``shall include'' and 
inserting ``includes a contribution or expenditure, as those terms are 
defined in section 301, and also includes''.

                         TITLE III--DISCLOSURE

SEC. 301. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES.

    Section 302(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(a)) is amended by striking paragraph (11) and inserting the 
following:
            ``(11)(A) The Commission shall promulgate a regulation 
        under which a person required to file a designation, statement, 
        or report under this Act--
                    ``(i) is required to maintain and file a 
                designation, statement, or report for any calendar year 
                in electronic form accessible by computers if the 
                person has, or has reason to expect to have, aggregate 
                contributions or expenditures in excess of a threshold 
                amount determined by the Commission; and
                    ``(ii) may maintain and file a designation, 
                statement, or report in electronic form or an 
                alternative form, including the use of a facsimile 
                machine, if not required to do so under the regulation 
                promulgated under clause (i).
            ``(B) The Commission shall make a designation, statement, 
        report, or notification that is filed electronically with the 
        Commission accessible to the public on the Internet not later 
        than 24 hours after the designation, statement, report, or 
        notification is received by the Commission.
            ``(C) In promulgating a regulation under this paragraph, 
        the Commission shall provide methods (other than requiring a 
        signature on the document being filed) for verifying 
        designations, statements, and reports covered by the 
        regulation. Any document verified under any of the methods 
        shall be treated for all purposes (including penalties for 
        perjury) in the same manner as a document verified by 
        signature.''.

SEC. 302. PROHIBITION OF DEPOSIT OF CONTRIBUTIONS WITH INCOMPLETE 
              CONTRIBUTOR INFORMATION.

    Section 302 of Federal Election Campaign Act of 1971 (2 U.S.C. 432) 
is amended by adding at the end the following:
    ``(j) Deposit of Contributions.--The treasurer of a candidate's 
authorized committee shall not deposit, except in an escrow account, or 
otherwise negotiate a contribution from a person who makes an aggregate 
amount of contributions in excess of $200 during a calendar year unless 
the treasurer verifies that the information required by this section 
with respect to the contributor is complete.''.

SEC. 303. AUDITS.

    (a) Random Audits.--Section 311(b) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 438(b)) is amended--
            (1) by inserting ``(1) In general.--'' before ``The 
        Commission''; and
            (2) by adding at the end the following:
            ``(2) Random audits.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                the Commission may conduct random audits and 
                investigations to ensure voluntary compliance with this 
                Act. The selection of any candidate for a random audit 
                or investigation shall be based on criteria adopted by 
                a vote of at least 4 members of the Commission.
                    ``(B) Limitation.--The Commission shall not conduct 
                an audit or investigation of a candidate's authorized 
                committee under subparagraph (A) until the candidate is 
                no longer a candidate for the office sought by the 
                candidate in an election cycle.
                    ``(C) Applicability.--This paragraph does not apply 
                to an authorized committee of a candidate for President 
                or Vice President subject to audit under section 9007 
                or 9038 of the Internal Revenue Code of 1986.''.
    (b) Extension of Period During Which Campaign Audits May Be 
Begun.--Section 311(b) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 438(b)) is amended by striking ``6 months'' and inserting ``12 
months''.

SEC. 304. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR MORE.

    Section 304(b)(3)(A) of the Federal Election Campaign Act at 1971 
(2 U.S.C. 434(b)(3)(A) is amended--
            (1) by striking ``$200'' and inserting ``$50''; and
            (2) by striking the semicolon and inserting ``, except that 
        in the case of a person who makes contributions aggregating at 
        least $50 but not more than $200 during the calendar year, the 
        identification need include only the name and address of the 
        person;''.

SEC. 305. USE OF CANDIDATES' NAMES.

    Section 302(e) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(e)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4)(A) The name of each authorized committee shall 
        include the name of the candidate who authorized the committee 
        under paragraph (1).
            ``(B) A political committee that is not an authorized 
        committee shall not--
                    ``(i) include the name of any candidate in its 
                name; or
                    ``(ii) except in the case of a national, State, or 
                local party committee, use the name of any candidate in 
                any activity on behalf of the committee in such a 
                context as to suggest that the committee is an 
                authorized committee of the candidate or that the use 
                of the candidate's name has been authorized by the 
                candidate.''.

SEC. 306. PROHIBITION OF FALSE REPRESENTATION TO SOLICIT CONTRIBUTIONS.

    Section 322 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441h) is amended--
            (1) by inserting after ``Sec. 322.'' the following: ``(a) 
        In General.--''; and
            (2) by adding at the end the following:
    ``(b) Solicitation of Contributions.--No person shall solicit 
contributions by falsely representing himself or herself as a candidate 
or as a representative of a candidate, a political committee, or a 
political party.''.

SEC. 307. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

    (a) In General.--Section 304 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 434) (as amended by section 103(c)) is amended by 
adding at the end the following:
    ``(g) Disbursements of Persons Other Than Political Parties.--
            ``(1) In general.--A person, other than a political 
        committee or a person described in section 501(d) of the 
        Internal Revenue Code of 1986, that makes an aggregate amount 
        of disbursements in excess of $50,000 during a calendar year 
        for activities described in paragraph (2) shall file a 
        statement with the Commission--
                    ``(A) on a monthly basis as described in subsection 
                (a)(4)(B); or
                    ``(B) in the case of disbursements that are made 
                within 20 days of an election, within 24 hours after 
                the disbursements are made.
            ``(2) Activity.--The activity described in this paragraph 
        is--
                    ``(A) Federal election activity;
                    ``(B) an activity described in section 316(b)(2)(A) 
                that expresses support for or opposition to a candidate 
                for Federal office or a political party; and
                    ``(C) an activity described in subparagraph (C) of 
                section 316(b)(2).
            ``(3) Applicability.--This subsection does not apply to--
                    ``(A) a candidate or a candidate's authorized 
                committees; or
                    ``(B) an independent expenditure.
            ``(4) Contents.--A statement under this section shall 
        contain such information about the disbursements made during 
        the reporting period as the Commission shall prescribe, 
        including--
                    ``(A) the aggregate amount of disbursements made;
                    ``(B) the name and address of the person or entity 
                to whom a disbursement is made in an aggregate amount 
                in excess of $200;
                    ``(C) the date made, amount, and purpose of the 
                disbursement; and
                    ``(D) if applicable, whether the disbursement was 
                in support of, or in opposition to, a candidate or a 
                political party, and the name of the candidate or the 
                political party.''.
    (b) Definition of Generic Campaign Activity.--Section 301 of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.), as 
amended by section 201(b), is further amended by adding at the end the 
following:
    ``(21) Generic Campaign Activity.--The term `generic campaign 
activity' means an activity that promotes a political party and does 
not promote a candidate or non-Federal candidate.''.

SEC. 308. CAMPAIGN ADVERTISING.

    Section 318 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441d) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``Whenever'' and inserting 
                        ``Whenever a political committee makes a 
                        disbursement for the purpose of financing any 
                        communication through any broadcasting station, 
                        newspaper, magazine, outdoor advertising 
                        facility, mailing, or any other type of general 
                        public political advertising, or whenever'';
                            (ii) by striking ``an expenditure'' and 
                        inserting ``a disbursement''; and
                            (iii) by striking ``direct''; and
                    (B) in paragraph (3), by inserting ``and permanent 
                street address'' after ``name''; and
            (2) by adding at the end the following:
    ``(c) Any printed communication described in subsection (a) shall--
            ``(1) be of sufficient type size to be clearly readable by 
        the recipient of the communication;
            ``(2) be contained in a printed box set apart from the 
        other contents of the communication; and
            ``(3) be printed with a reasonable degree of color contrast 
        between the background and the printed statement.
    ``(d)(1) Any broadcast or cablecast communication described in 
paragraphs (1) or (2) of subsection (a) shall include, in addition to 
the requirements of that paragraph, an audio statement by the candidate 
that identifies the candidate and states that the candidate has 
approved the communication.
    ``(2) If a broadcast or cablecast communication described in 
paragraph (1) is broadcast or cablecast by means of television, the 
communication shall include, in addition to the audio statement under 
paragraph (1), a written statement that--
            ``(A) appears at the end of the communication in a clearly 
        readable manner with a reasonable degree of color contrast 
        between the background and the printed statement, for a period 
        of at least 4 seconds; and
            ``(B) is accompanied by a clearly identifiable photographic 
        or similar image of the candidate.
    ``(e) Any broadcast or cablecast communication described in 
paragraph (3) of subsection (a) shall include, in addition to the 
requirements of that paragraph, in a clearly spoken manner, the 
following statement: `________________ is responsible for the content 
of this advertisement.' (with the blank to be filled in with the name 
of the political committee or other person paying for the communication 
and the name of any connected organization of the payor). If broadcast 
or cablecast by means of television, the statement shall also appear in 
a clearly readable manner with a reasonable degree of color contrast 
between the background and the printed statement, for a period of at 
least 4 seconds.''.

                    TITLE IV--PERSONAL WEALTH OPTION

SEC. 401. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) (as amended by section 101) is amended by adding at the 
end the following:

``SEC. 324. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.

    ``(a) Eligible House Candidate.--
            ``(1) Primary election.--
                    ``(A) Declaration.--A candidate is an eligible 
                primary election House candidate if the candidate files 
                with the Commission a declaration that the candidate 
                and the candidate's authorized committees will not make 
                expenditures in excess of the personal funds 
                expenditure limit.
                    ``(B) Time to file.--The declaration under 
                subparagraph (A) shall be filed not later than the date 
                on which the candidate files with the appropriate State 
                officer as a candidate for the primary election.
            ``(2) General election.--
                    ``(A) Declaration.--A candidate is an eligible 
                general election House candidate if the candidate files 
                with the Commission--
                            ``(i) a declaration under penalty of 
                        perjury, with supporting documentation as 
                        required by the Commission, that the candidate 
                        and the candidate's authorized committees did 
                        not exceed the personal funds expenditure limit 
                        in connection with the primary election; and
                            ``(ii) a declaration that the candidate and 
                        the candidate's authorized committees will not 
                        make expenditures in excess of the personal 
                        funds expenditure limit.
                    ``(B) Time to file.--The declaration under 
                subparagraph (A) shall be filed not later than 7 days 
                after the earlier of--
                            ``(i) the date on which the candidate 
                        qualifies for the general election ballot under 
                        State law; or
                            ``(ii) if under State law, a primary or 
                        run-off election to qualify for the 
general election ballot occurs after September 1, the date on which the 
candidate wins the primary or runoff election.
    ``(b) Personal Funds Expenditure Limit.--
            ``(1) In general.--The aggregate amount of expenditures 
        that may be made in connection with an election by an eligible 
        House candidate or the candidate's authorized committees from 
        the sources described in paragraph (2) shall not exceed 
        $50,000.
            ``(2) Sources.--A source is described in this paragraph if 
        the source is--
                    ``(A) personal funds of the candidate and members 
                of the candidate's immediate family; or
                    ``(B) proceeds of indebtedness incurred by the 
                candidate or a member of the candidate's immediate 
                family.
    ``(c) Certification by the Commission.--
            ``(1) In general.--The Commission shall determine whether a 
        candidate has met the requirements of this section and, based 
        on the determination, issue a certification stating whether the 
        candidate is an eligible House candidate.
            ``(2) Time for certification.--Not later than 7 business 
        days after a candidate files a declaration under paragraph (1) 
        or (2) of subsection (a), the Commission shall certify whether 
        the candidate is an eligible House candidate.
            ``(3) Revocation.--The Commission shall revoke a 
        certification under paragraph (1), based on information 
        submitted in such form and manner as the Commission may require 
        or on information that comes to the Commission by other means, 
        if the Commission determines that a candidate violates the 
        personal funds expenditure limit.
            ``(4) Determinations by commission.--A determination made 
        by the Commission under this subsection shall be final, except 
        to the extent that the determination is subject to examination 
        and audit by the Commission and to judicial review.
    ``(d) Penalty.--If the Commission revokes the certification of an 
eligible House candidate--
            ``(1) the Commission shall notify the candidate of the 
        revocation; and
            ``(2) the candidate and a candidate's authorized committees 
        shall pay to the Commission an amount equal to the amount of 
        expenditures made by a national committee of a political party 
        or a State committee of a political party in connection with 
        the general election campaign of the candidate under section 
        315(d).''.

SEC. 402. POLITICAL PARTY COMMITTEE COORDINATED EXPENDITURES.

    Section 315(d) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(d)) (as amended by section 204) is amended by adding at the 
end the following:
            ``(5) This subsection does not apply to expenditures made 
        in connection with the general election campaign of a candidate 
        for the House of Representatives who is not an eligible House 
        candidate (as defined in section 324(a)).''.

                         TITLE V--MISCELLANEOUS

SEC. 501. CODIFICATION OF BECK DECISION.

    Section 8 of the National Labor Relations Act (29 U.S.C. 158) is 
amended by adding at the end the following new subsection:
    ``(h) Nonunion Member Payments to Labor Organization.--
            ``(1) In general.--It shall be an unfair labor practice for 
        any labor organization which receives a payment from an 
        employee pursuant to an agreement that requires employees who 
        are not members of the organization to make payments to such 
        organization in lieu of organization dues or fees not to 
        establish and implement the objection procedure described in 
        paragraph (2).
            ``(2) Objection procedure.--The objection procedure 
        required under paragraph (1) shall meet the following 
        requirements:
                    ``(A) The labor organization shall annually provide 
                to employees who are covered by such agreement but are 
                not members of the organization--
                            ``(i) reasonable personal notice of the 
                        objection procedure, the employees eligible to 
                        invoke the procedure, and the time, place, and 
                        manner for filing an objection; and
                            ``(ii) reasonable opportunity to file an 
                        objection to paying for organization 
                        expenditures supporting political activities 
                        unrelated to collective bargaining, including 
                        but not limited to the opportunity to file such 
                        objection by mail.
                    ``(B) If an employee who is not a member of the 
                labor organization files an objection under the 
                procedure in subparagraph (A), such organization 
                shall--
                            ``(i) reduce the payments in lieu of 
                        organization dues or fees by such employee by 
                        an amount which reasonably reflects the ratio 
                        that the organization's expenditures supporting 
                        political activities unrelated to collective 
                        bargaining bears to such organization's total 
                        expenditures;
                            ``(ii) provide such employee with a 
                        reasonable explanation of the organization's 
                        calculation of such reduction, including 
                        calculating the amount of organization 
                        expenditures supporting political activities 
                        unrelated to collective bargaining.
            ``(3) Definition.--In this subsection, the term 
        `expenditures supporting political activities unrelated to 
        collective bargaining' means expenditures in connection with a 
        Federal, State, or local election or in connection with efforts 
        to influence legislation unrelated to collective bargaining.''.

SEC. 502. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) is amended by striking section 313 and inserting the 
following:

``SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

    ``(a) Permitted Uses.--A contribution accepted by a candidate, and 
any other amount received by an individual as support for activities of 
the individual as a holder of Federal office, may be used by the 
candidate or individual--
            ``(1) for expenditures in connection with the campaign for 
        Federal office of the candidate or individual;
            ``(2) for ordinary and necessary expenses incurred in 
        connection with duties of the individual as a holder of Federal 
        office;
            ``(3) for contributions to an organization described in 
        section 170(c) of the Internal Revenue Code of 1986; or
            ``(4) for transfers to a national, State, or local 
        committee of a political party.
    ``(b) Prohibited Use.--
            ``(1) In general.--A contribution or amount described in 
        subsection (a) shall not be converted by any person to personal 
        use.
            ``(2) Conversion.--For the purposes of paragraph (1), a 
        contribution or amount shall be considered to be converted to 
        personal use if the contribution or amount is used to fulfill 
        any commitment, obligation, or expense of a person that would 
        exist irrespective of the candidate's election campaign or 
        individual's duties as a holder of Federal officeholder, 
        including--
                    ``(A) a home mortgage, rent, or utility payment;
                    ``(B) a clothing purchase;
                    ``(C) a noncampaign-related automobile expense;
                    ``(D) a country club membership;
                    ``(E) a vacation or other noncampaign-related trip;
                    ``(F) a household food item;
                    ``(G) a tuition payment;
                    ``(H) admission to a sporting event, concert, 
                theater, or other form of entertainment not associated 
                with an election campaign; and
                    ``(I) dues, fees, and other payments to a health 
                club or recreational facility.''.

SEC. 503. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

    Section 3210(a)(6) of title 39, United States Code, is amended by 
striking subparagraph (A) and inserting the following:
                    ``(A) A Member of Congress shall not mail any mass 
                mailing as franked mail during a year in which there 
                will be an election for the seat held by the Member 
                during the period between January 1 of that year and 
                the date of the general election for that Office, 
                unless the Member has made a public announcement that 
                the Member will not be a candidate for reelection to 
                that year or for election to any other Federal 
                office.''.

SEC. 504. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY.

    Section 607 of title 18, United States Code, is amended by--
            (1) striking subsection (a) and inserting the following:
    ``(a) Prohibition.--
            ``(1) In general.--It shall be unlawful for any person to 
        solicit or receive a donation of money or other thing of value 
        for a political committee or a candidate for Federal, State or 
        local office from a person who is located in a room or building 
        occupied in the discharge of official duties by an officer or 
        employee of the United States. An individual who is an officer 
        or employee of the Federal Government, including the President, 
        Vice President, and Members of Congress, shall not solicit a 
        donation of money or other thing of value for a political 
        committee or candidate for Federal, State or local office, 
        while in any room or building occupied in the discharge of 
        official duties by an officer or employee of the United States, 
        from any person.
            ``(2) Penalty.--A person who violates this section shall be 
        fined not more than $5,000, imprisoned more than 3 years, or 
        both.''.
            (2) inserting in subsection (b) after ``Congress'' ``or 
        Executive Office of the President''.

SEC. 505. PENALTIES FOR KNOWING AND WILLFUL VIOLATIONS.

    (a) Increased Penalties.--Section 309(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--
            (1) in paragraphs (5)(A), (6)(A), and (6)(B), by striking 
        ``$5,000'' and inserting ``$10,000''; and
            (2) in paragraphs (5)(B) and (6)(C), by striking ``$10,000 
        or an amount equal to 200 percent'' and inserting ``$20,000 or 
        an amount equal to 300 percent''.
    (b) Equitable Remedies.--Section 309(a)(5)(A) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is amended by 
striking the period at the end and inserting ``, and may include 
equitable remedies or penalties, including disgorgement of funds to the 
Treasury or community service requirements (including requirements to 
participate in public education programs).''.
    (c) Automatic Penalty for Late Filing.--Section 309(a) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--
            (1) by adding at the end the following:
            ``(13) Penalty for late filing.--
                    ``(A) In general.--
                            ``(i) Monetary penalties.--The Commission 
                        shall establish a schedule of mandatory 
                        monetary penalties that shall be imposed by the 
                        Commission for failure to meet a time 
                        requirement for filing under section 304.
                            ``(ii) Required filing.--In addition to 
                        imposing a penalty, the Commission may require 
                        a report that has not been filed within the 
                        time requirements of section 304 to be filed by 
                        a specific date.
                            ``(iii) Procedure.--A penalty or filing 
                        requirement imposed under this paragraph shall 
                        not be subject to paragraph (1), (2), (3), (4), 
                        (5), or (12).
                    ``(B) Filing an exception.--
                            ``(i) Time to file.--A political committee 
                        shall have 30 days after the imposition of a 
                        penalty or filing requirement by the Commission 
                        under this paragraph in which to file an 
                        exception with the Commission.
                            ``(ii) Time for commission to rule.--Within 
                        30 days after receiving an exception, the 
                        Commission shall make a determination that is a 
                        final agency action subject to exclusive review 
                        by the United States Court of Appeals for the 
                        District of Columbia Circuit under section 706 
                        of title 5, United States Code, upon petition 
                        filed in that court by the political committee 
                        or treasurer that is the subject of the agency 
                        action, if the petition is filed within 30 days 
                        after the date of the Commission action for 
                        which review is sought.'';
            (2) in paragraph (5)(D)--
                    (A) by inserting after the first sentence the 
                following: ``In any case in which a penalty or filing 
requirement imposed on a political committee or treasurer under 
paragraph (13) has not been satisfied, the Commission may institute a 
civil action for enforcement under paragraph (6)(A).''; and
                    (B) by inserting before the period at the end of 
                the last sentence the following: ``or has failed to pay 
                a penalty or meet a filing requirement imposed under 
                paragraph (13)''; and
            (3) in paragraph (6)(A), by striking ``paragraph (4)(A)'' 
        and inserting ``paragraph (4)(A) or (13)''.

SEC. 506. STRENGTHENING FOREIGN MONEY BAN.

    Section 319 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441e) is amended--
            (1) by striking the heading and inserting the following: 
        ``contributions and donations by foreign nationals''; and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Prohibition.--It shall be unlawful for--
            ``(1) a foreign national, directly or indirectly, to make--
                    ``(A) a donation of money or other thing of value, 
                or to promise expressly or impliedly to make a 
                donation, in connection with a Federal, State, or local 
                election to a political committee or a candidate for 
                Federal office; or
                            ``(ii) a contribution or donation to a 
                        committee of a political party; or
                    ``(B) for a person to solicit, accept, or receive 
                such contribution or donation from a foreign 
                national.''.

SEC. 507. PROHIBITION OF CONTRIBUTIONS BY MINORS.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) (as amended by sections 101 and 401) is amended by adding 
at the end the following:

``SEC. 325. PROHIBITION OF CONTRIBUTIONS BY MINORS.

    An individual who is 17 years old or younger shall not make a 
contribution to a candidate or a contribution or donation to a 
committee of a political party.''.

SEC. 508. EXPEDITED PROCEDURES.

    (a) In General.--Section 309(a) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 437g(a)) (as amended by section 505(c)) is 
amended by adding at the end the following:
            ``(14)(A) If the complaint in a proceeding was filed within 
        60 days preceding the date of a general election, the 
        Commission may take action described in this subparagraph.
            ``(B) If the Commission determines, on the basis of facts 
        alleged in the complaint and other facts available to the 
        Commission, that there is clear and convincing evidence that a 
        violation of this Act has occurred, is occurring, or is about 
        to occur, the Commission may order expedited proceedings, 
        shortening the time periods for proceedings under paragraphs 
        (1), (2), (3), and (4) as necessary to allow the matter to be 
        resolved in sufficient time before the election to avoid harm 
        or prejudice to the interests of the parties.
            ``(C) If the Commission determines, on the basis of facts 
        alleged in the complaint and other facts available to the 
        Commission, that the complaint is clearly without merit, the 
        Commission may--
                    ``(i) order expedited proceedings, shortening the 
                time periods for proceedings under paragraphs (1), (2), 
                (3), and (4) as necessary to allow the matter to be 
                resolved in sufficient time before the election to 
                avoid harm or prejudice to the interests of the 
                parties; or
                    ``(ii) if the Commission determines that there is 
                insufficient time to conduct proceedings before the 
                election, summarily dismiss the complaint.''.
    (b) Referral to Attorney General.--Section 309(a)(5) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is amended by 
striking subparagraph (C) and inserting the following:
    ``(C) The Commission may at any time, by an affirmative vote of at 
least 4 of its members, refer a possible violation of this Act or 
chapter 95 or 96 of title 26, United States Code, to the Attorney 
General of the United States, without regard to any limitation set 
forth in this section.''.

SEC. 509. INITIATION OF ENFORCEMENT PROCEEDING.

    Section 309(a)(2) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)(2)) is amended by striking ``reason to believe that'' 
and inserting ``reason to investigate whether''.

SEC. 510. LIMITATIONS ON POLITICAL ACTIVITY BY TAX-EXEMPT 
              ORGANIZATIONS.

    (a) Tax-Exempt Organizations.--Section 501 of the Internal Revenue 
Code of 1986 (relating to exemption from tax on corporations, certain 
trusts, etc.) is amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by inserting after subsection (n) the following new 
        subsection:
    ``(o) Special Rules for Organizations Exempt Under Paragraph (3) or 
(4) of Subsection (c).--
            ``(1) In general.--An organization described in paragraph 
        (3) or (4) of subsection (c) shall be denied exemption from 
        taxation under subsection (a) if such organization--
                    ``(A) solicits or accepts a contribution (as 
                defined in section 271(b)(2)) from a committee of a 
                political party or an authorized committee of a 
                candidate (as defined in section 301 of the Federal 
                Election Campaign Act of 1971 (2 U.S.C. 431)),
                    ``(B) makes or directs a contribution to a 
                committee of a political party or an authorized 
                committee of a candidate,
                    ``(C) makes a disbursement for electioneering 
                advertising (as defined in paragraph (2)), except to 
                the extent that--
                            ``(i) the disbursement constitutes an 
                        independent expenditure (as defined in section 
                        301(17) of the Federal Election Campaign Act of 
                        1971 (2 U.S.C. 431(17)), or
                            ``(ii) the advertising is--
                                    ``(I) described in paragraph 
                                (2)(B)(i)(II),
                                    ``(II) otherwise permitted by law, 
                                and
                                    ``(III) made more than--
                                            ``(aa) 60 days before the 
                                        date of a general, special, or 
                                        runoff election in which the 
                                        identified candidates are 
                                        seeking office, or
                                            ``(bb) 30 days before the 
                                        date of a primary or preference 
                                        election or a convention or 
                                        caucus of a political party 
                                        that has authority to nominate 
                                        a candidate for the office for 
                                        which the identified candidates 
                                        are seeking election, or
                    ``(D) participates in a coordinated disbursement.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Coordinated disbursement.--
                            ``(i) In general.--The term `coordinated 
                        disbursement' means a purchase, payment, 
                        distribution, loan, advance, deposit, or gift 
                        of money or anything of value, made in 
                        connection with any broadcasting, newspaper, 
                        magazine, billboard, direct mail, phone bank, 
                        widely distributed electronic mail, or similar 
                        type of general public communication or 
                        advertising by a person (who is not a candidate 
                        or a candidate's authorized committee) in 
                        cooperation, consultation, or concert with, or 
                        at the request or suggestion of, a candidate, a 
                        member of the candidate's immediate family (as 
                        defined in section 9004(e)), the candidate's 
                        authorized committees, or a committee of a 
                        political party.
                            ``(ii) Exception.--The term `coordinated 
                        disbursement' does not include a disbursement 
                        for a bona fide newscast, news interview, news 
                        documentary (if the appearance of the candidate 
                        is incidental to the presentation of the 
                        subject or subjects covered by the news 
                        documentary), editorial, or on-the-spot 
                        coverage of bona fide news events.
                    ``(B) Electioneering advertising.--
                            ``(i) In general.--The term `electioneering 
                        advertising' means a communication--
                                    ``(I) containing a phrase such as 
                                `vote for', `re-elect', `support', 
                                `cast your ballot for', `(name of 
                                individual) for President', `(name of 
                                individual) in (calendar year)', `vote 
                                against', `defeat', `reject', or a 
                                campaign slogan or words that in 
                                context can have no reasonable meaning 
                                other than to recommend the election or 
                                defeat of 1 or more clearly identified 
                                candidates such as `(name of 
                                candidate)'s the One' or `(name of 
                                candidate'); or
                                    ``(II) referring to 1 or more 
                                clearly identified candidates in a 
                                communication that is widely 
                                disseminated to the electorate for the 
                                election in which the identified 
                                candidates are seeking office through a 
                                broadcasting station, newspaper, 
                                magazine, outdoor advertising facility, 
                                direct mailing, or any other type of 
                                general public communication.
                            ``(ii) Voting record and voting guide 
                        exception.--The term `electioneering 
                        advertising' does not include a printed 
                        communication that--
                                    ``(I) presents information in an 
                                educational manner solely about the 
                                voting record or position on a campaign 
                                issue of 2 or more individuals;
                                    ``(II) is not made in coordination 
                                with an individual, political party, or 
                                agent of the individual or party;
                                    ``(III) in the case of a voter 
                                guide based on a questionnaire, 
                                provides each individual seeking a 
                                particular seat or office an equal 
                                opportunity to respond to the 
                                questionnaire and have the individual's 
                                responses incorporated into the voter 
                                guide;
                                    ``(IV) does not present an 
                                individual with greater prominence than 
                                any other individual; and
                                    ``(V) does not contain a phrase 
                                such as `vote for', `re-elect', 
                                `support', `cast your ballot for', 
                                `(name of individual) for President', 
                                `(name of individual) in 1997', `vote 
                                against', `defeat', or `reject', or a 
                                campaign slogan or words that in 
                                context can have no reasonable meaning 
                                other than to urge the election or 
                                defeat of 1 or more clearly identified 
                                individuals.''.
    (b) Regulations.--The Federal Election Commission and the 
Commissioner of the Internal Revenue Code of 1986 shall--
            (1) promulgate regulations as necessary to enforce this 
        section; and
            (2) in the promulgation of regulations under paragraph (1), 
        provide an exception to any provision that the Commission or 
        Commissioner determines necessary to serve the public interest.

SEC. 511. DEFINITIONS OF POLITICAL COMMITTEE AND POLITICAL 
              ORGANIZATION.

    (a) Definition of Political Committee.--Section 301(4) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(4)) is amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(D) a political organization (as defined in 
                section 527(e)(1) of the Internal Revenue Code of 1986 
                and subject to section 527 of such Code) unless--
                            ``(i) the activities of the organization 
                        are for the primary purpose of influencing or 
                        attempting to influence the selection, 
                        nomination, election, or appointment of any 
                        individual or individuals to any State or local 
                        public office or office in a State or local 
                        political organization; and
                            ``(ii) the organization does not engage in 
                        any activity aimed at influencing or attempting 
                        to influence the selection, election, or 
                        appointment of any individual to any Federal 
                        office or the election of Presidential or Vice 
                        Presidential electors.''.
    (b) Definition of Political Organization.--Paragraph (e)(1) of 
section 527 of the Internal Revenue Code of 1986 (relating to political 
organizations) is amended by striking ``incorporated) organized and 
operated'' and all that follows through the period and inserting 
``incorporated)--
                    ``(A) organized and operated primarily for the 
                purpose of directly or indirectly accepting 
                contributions or making expenditures, or both, for an 
                exempt function, and
                    ``(B) that is a political committee described in 
                section 301(4) of the Federal Election Campaign Act of 
                1971 (2 U.S.C. 431(4)) except to the extent that--
                            ``(i) the activities of the organization 
                        are for the primary purpose of influencing or 
                        attempting to influence the selection, 
                        nomination, election, or appointment of any 
                        individual or individuals to any State or local 
                        public office or office in a State or local 
                        political organization; and
                            ``(ii) the organization does not engage in 
                        any activity aimed at influencing or attempting 
                        to influence the selection, election, or 
                        appointment of any individual to any Federal 
                        office or the election of Presidential or Vice 
                        Presidential electors.''.
    (c) Regulations.--The Federal Election Commission and the 
Commissioner of the Internal Revenue Code of 1986 shall--
            (1) promulgate regulations as necessary to enforce this 
        section; and
            (2) in the promulgation of regulations under paragraph (1), 
        provide an exception to any provision that the Commission or 
        Commissioner determines necessary to serve the public interest.

 TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

SEC. 601. SEVERABILITY.

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

SEC. 602. REVIEW OF CONSTITUTIONAL ISSUES.

    An appeal may be taken directly to the Supreme Court of the United 
States from any final judgment, decree, or order issued by any court 
ruling on the constitutionality of any provision of this Act or 
amendment made by this Act.

SEC. 603. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act take effect January 1, 1999.

SEC. 604. REGULATIONS.

    The Federal Election Commission shall prescribe any regulations 
required to carry out this Act and the amendments made by this Act not 
later than 270 days after the effective date of this Act.
                                 <all>