[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4786 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4786

   To amend the Federal Election Campaign Act of 1971 to require the 
deposit of certain contributions and donations to be returned to donors 
             in a special account, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 1998

  Mr. Gekas 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 require the 
deposit of certain contributions and donations to be returned to donors 
             in a special account, 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. DEPOSIT OF CERTAIN CONTRIBUTIONS AND DONATIONS IN TREASURY 
              ACCOUNT.

    (a) In General.--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:

 ``treatment of certain contributions and donations to be returned to 
                                 donors

    ``Sec. 323. (a) Transfer to Commission.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, if a political committee intends to return any 
        contribution or donation given to the political committee, the 
        committee shall transfer the contribution or donation to the 
        Commission if--
                    ``(A) the contribution or donation is in an amount 
                equal to or greater than $500 (other than a 
                contribution or donation returned within 60 days of 
                receipt by the committee); or
                    ``(B) the contribution or donation was made in 
                violation of section 315, 316, 317, 319, or 320 (other 
                than a contribution or donation returned within 30 days 
                of receipt by the committee).
            ``(2) Information included with transferred contribution or 
        donation.--A political committee shall include with any 
        contribution or donation transferred under paragraph (1)--
                    ``(A) a request that the Commission return the 
                contribution or donation to the person making the 
                contribution or donation; and
                    ``(B) information regarding the circumstances 
                surrounding the making of the contribution or donation 
                and any opinion of the political committee concerning 
                whether the contribution or donation may have been made 
                in violation of this Act.
            ``(3) Establishment of escrow account.--
                    ``(A) In general.--The Commission shall establish a 
                single interest-bearing escrow account for deposit of 
                amounts transferred under paragraph (1).
                    ``(B) Disposition of amounts received.--On 
                receiving an amount from a political committee under 
                paragraph (1), the Commission shall--
                            ``(i) deposit the amount in the escrow 
                        account established under subparagraph (A); and
                            ``(ii) notify the Attorney General and the 
                        Commissioner of the Internal Revenue Service of 
                        the receipt of the amount from the political 
                        committee.
                    ``(C) Use of interest.--Interest earned on amounts 
                in the escrow account established under subparagraph 
                (A) shall be applied or used for the same purposes as 
the donation or contribution on which it is earned.
            ``(4) Treatment of returned contribution or donation as a 
        complaint.--The transfer of any contribution or donation to the 
        Commission under this section shall be treated as the filing of 
        a complaint under section 309(a).
    ``(b) Use of Amounts Placed in Escrow To Cover Fines and 
Penalties.--The Commission or the Attorney General may require any 
amount deposited in the escrow account under subsection (a)(3) to be 
applied toward the payment of any fine or penalty imposed under this 
Act or title 18, United States Code, against the person making the 
contribution or donation.
    ``(c) Return of Contribution or Donation After Deposit in Escrow.--
            ``(1) In general.--The Commission shall return a 
        contribution or donation deposited in the escrow account under 
        subsection (a)(3) to the person making the contribution or 
        donation if--
                    ``(A) within 180 days after the date the 
                contribution or donation is transferred, the Commission 
                has not made a determination under section 309(a)(2) 
                that the Commission has reason to believe whether that 
                the making of the contribution or donation was made in 
                violation of this Act; or
                    ``(B)(i) the contribution or donation will not be 
                used to cover fines, penalties, or costs pursuant to 
                subsection (b); or
                    ``(ii) if the contribution or donation will be used 
                for those purposes, that the amounts required for those 
                purposes have been withdrawn from the escrow account 
                and subtracted from the returnable contribution or 
                donation.
            ``(2) No effect on status of investigation.--The return of 
        a contribution or donation by the Commission under this 
        subsection shall not be construed as having an effect on the 
        status of an investigation by the Commission or the Attorney 
        General of the contribution or donation or the circumstances 
        surrounding the contribution or donation, or on the ability of 
        the Commission or the Attorney General to take future actions 
        with respect to the contribution or donation.''.
    (b) Amounts Used to Determine Amount of Penalty for Violation.--
Section 309(a) of such Act (2 U.S.C. 437g(a)) is amended by inserting 
after paragraph (9) the following new paragraph:
    ``(10) For purposes of determining the amount of a civil penalty 
imposed under this subsection for violations of section 323, the amount 
of the donation involved shall be treated as the amount of the 
contribution involved.''.
    (c) Donation Defined.--Section 301 of such Act (2 U.S.C. 431) is 
amended by adding at the end the following:
    ``(20) Donation.--The term `donation' means a gift, subscription, 
loan, advance, or deposit of money or anything else of value made by 
any person to a national committee of a political party or a Senatorial 
or Congressional Campaign Committee of a national political party for 
any purpose, but does not include a contribution (as defined in 
paragraph (8)).''.
    (d) Disgorgement Authority.--Section 309 of such Act (2 U.S.C. 
437g) is amended by adding at the end the following new subsection:
    ``(e) Any conciliation agreement, civil action, or criminal action 
entered into or instituted under this section may require a person to 
forfeit to the Treasury any contribution, donation, or expenditure that 
is the subject of the agreement or action for transfer to the 
Commission for deposit in accordance with section 323.''.
    (e) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall apply to contributions or donations refunded on or after 
the date of the enactment of this Act, without regard to whether the 
Federal Election Commission or Attorney General has issued regulations 
to carry out section 323 of the Federal Election Campaign Act of 1971 
(as added by subsection (a)) by such date.
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