[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1197 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1197

             To reform the financing of Federal elections.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 18, 1997

Mrs. Feinstein introduced the following bill; which was read twice and 
         referred to the Committee on Rules and Administration

_______________________________________________________________________

                                 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 Reform 
Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--BAN ON SOFT MONEY OF POLITICAL PARTY COMMITTEES

Sec. 101. Soft money of political party committees.
Sec. 102. State party grassroots funds.
Sec. 103. Reporting requirements.
             TITLE II--INDEPENDENT EXPENDITURES; SOFT MONEY

Sec. 201. Express advocacy.
Sec. 202. Reporting requirements for certain independent expenditures.
Sec. 203. Soft money of persons other than political parties.
                         TITLE III--ENFORCEMENT

Sec. 301. Filing of reports using computers and facsimile machines.
Sec. 302. Audits.
Sec. 303. Authority to seek injunction.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Increase in penalty for knowing and willful violations.
Sec. 306. Prohibition of contributions by individuals not qualified to 
                            register to vote.
Sec. 307. Use of candidates' names.
Sec. 308. Prohibition of false representation to solicit contributions.
Sec. 309. Expedited procedures.
Sec. 310. Reference of suspected violation to the attorney general.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Contribution limits; indexing.
Sec. 402. Use of contributed amounts for certain purposes.
Sec. 403. Campaign advertising.
Sec. 404. Limit on congressional use of the franking privilege.
        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

Sec. 501. Severability.
Sec. 502. Review of constitutional issues.
Sec. 503. Effective date.
Sec. 504. Regulations.

        TITLE I--BAN ON SOFT MONEY OF POLITICAL PARTY COMMITTEES

SEC. 101. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

    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. 324. SOFT MONEY OF PARTY COMMITTEES.

    ``(a) National Committees.--
            ``(1) All contributions, donations, transfers, and spending 
        to be subject to this act.--A national 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 a national 
        committee or its agent, an entity acting on behalf of a 
        national committee, and an officer or agent acting on behalf of 
        any such committee or entity (but not including an entity 
        regulated under subsection (b)) shall not solicit or receive 
        any contributions, donations, or transfers of funds, or spend 
        any funds, that are not subject to the limitations, 
        prohibitions, and reporting requirements of this Act.
            ``(2) Donation limit.--In addition to the amount of 
        contributions that a person may make to a national committee of 
        a political party under section 315, a person may make 
        donations of anything of value to a national 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 
        a national committee or its agent, an entity acting on behalf 
        of a national committee, and an officer or agent acting on 
        behalf of any such committee or entity (but not including an 
        entity regulated under subsection (b)) in an aggregate amount 
        not exceeding $25,000 during the 24 months preceding the date 
        of a general election for Federal office.
    ``(b) State, District, and Local Committees.--
            ``(1) In general.--Any 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 any such committee or 
        entity) during a calendar year in which a Federal election is 
        held, for any activity that might affect the outcome of a 
        Federal election, including any voter registration or get-out-
        the-vote activity, any generic campaign activity, and any 
        communication that refers to a candidate (regardless of whether 
        a candidate for State or local office is also mentioned or 
        identified) shall be made from funds subject to the 
        limitations, prohibitions, and reporting requirements of this 
        Act.
            ``(2) Activity excluded from paragraph (1).--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                an expenditure or disbursement made by a State, 
district, or local committee of a political party for--
                            ``(i) a contribution to a candidate for 
                        State or local office if the contribution is 
                        not designated or otherwise earmarked to pay 
                        for an activity described in paragraph (1);
                            ``(ii) the costs of a State, district, or 
                        local political convention;
                            ``(iii) the non-Federal share of a State, 
                        district, or local party committee's 
                        administrative and overhead expenses (but not 
                        including the compensation in any month of any 
                        individual who spends more than 20 percent of 
                        the individual's time on activity during the 
                        month that may affect the outcome of a Federal 
                        election) except that for purposes of this 
                        paragraph, the non-Federal share of a party 
                        committee's administrative and overhead 
                        expenses shall be determined by applying the 
                        ratio of the non-Federal disbursements to the 
                        total Federal expenditures and non-Federal 
                        disbursements made by the committee during the 
                        previous presidential election year to the 
                        committee's administrative and overhead 
                        expenses in the election year in question;
                            ``(iv) the costs of grassroots campaign 
                        materials, including buttons, bumper stickers, 
                        and yard signs that name or depict only a 
                        candidate for State or local office; and
                            ``(v) the cost of any campaign activity 
                        conducted solely on behalf of a clearly 
                        identified candidate for State or local office, 
                        if the candidate activity is not an activity 
                        described in paragraph (1).
                    ``(B) Fundraising costs.--Any amount spent by a 
                national, State, district, or local committee, by an 
                entity that is established, financed, maintained, or 
                controlled by a State, district, or local committee of 
                a political party, or by an agent or officer of any 
                such committee or entity to raise funds that are used, 
                in whole or in part, to pay the costs of an activity 
                described in paragraph (1) shall be made from funds 
                subject to the limitations, prohibitions, and reporting 
                requirements of this Act.
    ``(c) 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 any donations to an 
organization that is exempt from Federal taxation under section 501(c) 
of the Internal Revenue Code of 1986.
    ``(d) Candidates.--
            ``(1) In general.--A candidate, individual holding Federal 
        office, or agent of a candidate or individual holding Federal 
        office shall not--
                    ``(A) solicit, receive, transfer, or spend funds in 
                connection with an election for Federal office unless 
                the funds are subject to the limitations, prohibitions, 
                and reporting requirements of this Act;
                    ``(B) solicit, receive, or transfer funds that are 
                to be expended in connection with any election other 
                than a Federal election unless the funds--
                            ``(i) are not in excess of the amounts 
                        permitted with respect to contributions to 
                        candidates and political committees under 
                        section 315(a) (1) and (2); and
                            ``(ii) are not from sources prohibited by 
                        this Act from making contributions with respect 
                        to an election for Federal office; or
                    ``(C) solicit, receive, or transfer any funds on 
                behalf of any person that are not subject to the 
                limitations, prohibitions, and reporting requirements 
                of the Act if the funds are for use in financing any 
                campaign-related activity or any communication that 
                refers to a clearly identified candidate for Federal 
                office.
            ``(2) Exception.--Paragraph (1) does not apply to the 
        solicitation or receipt of funds by an individual who is a 
        candidate for a State or local office if the solicitation or 
        receipt of funds is permitted under State law for the 
        individual's State or local campaign committee.''.

SEC. 102. STATE PARTY GRASSROOTS FUNDS.

    (a) Individual Contributions.--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) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
            ``(C) to--
                    ``(i) a State Party Grassroots Fund established and 
                maintained by a State committee of a political party in 
                any calendar year which, in the aggregate, exceed 
                $20,000;
                    ``(ii) any other political committee established 
                and maintained by a State committee of a political 
                party in any calendar year which, in the aggregate, 
                exceed $5,000;
        except that the aggregate contributions described in this 
        subparagraph that may be made by a person to the State Party 
        Grassroots Fund and all committees of a State Committee of a 
        political party in any State in any calendar year shall not 
        exceed $20,000; or''.
    (b) Limits.--
            (1) In general.--Section 315(a) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by striking 
        paragraph (3) and inserting the following:
            ``(3) Overall limits.--
                    ``(A) Individual limit.--No individual shall make 
                contributions during any calendar year that, in the 
                aggregate, exceed $30,000.
                    ``(B) Calendar year.--No individual shall make 
                contributions during any calendar year--
                            ``(i) to all candidates and their 
                        authorized political committees that, in the 
                        aggregate, exceed $25,000; or
                            ``(ii) to all political committees 
                        established and maintained by State committees 
                        of a political party that, in the aggregate, 
                        exceed $20,000.
                    ``(C) Nonelection years.--For purposes of 
                subparagraph (B)(i), any contribution made to a 
                candidate or the candidate's authorized political 
                committees in a year other than the calendar year in 
                which the election is held with respect to which the 
                contribution is made shall be treated as being made 
                during the calendar year in which the election is 
                held.''.
    (c) Definitions.--Section 301 of the Federal Election Campaign Act 
of 1970 (2 U.S.C. 431) is amended by adding at the end the following:
            ``(20) Generic campaign activity.--The term `generic 
        campaign activity' means a campaign activity that promotes a 
        political party and does not refer to any particular Federal or 
        non-Federal candidate.
            ``(21) State Party Grassroots Fund.--The term `State Party 
        Grassroots Fund' means a separate segregated fund established 
        and maintained by a State committee of a political party solely 
        for purposes of making expenditures and other disbursements 
        described in section 325(d).''.
    (d) State Party Grassroots Funds.--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. 325. STATE PARTY GRASSROOTS FUNDS.

    ``(a) Definition.--In this section, the term `State or local 
candidate committee' means a committee established, financed, 
maintained, or controlled by a candidate for other than Federal office.
    ``(b) Transfers.--Notwithstanding section 315(a)(4), no funds may 
be transferred by a State committee of a political party from its State 
Party Grassroots Fund to any other State Party Grassroots Fund or to 
any other political committee, except a transfer may be made to a 
district or local committee of the same political party in the same 
State if the district or local committee--
            ``(1) has established a separate segregated fund for the 
        purposes described in subsection (d); and
            ``(2) uses the transferred funds solely for those purposes.
    ``(c) Amounts Received by Grassroots Funds From State and Local 
Candidate Committees.--
            ``(1) In general.--Any amount received by a State Party 
        Grassroots Fund from a State or local candidate committee for 
        expenditures described in subsection (d) that are for the 
        benefit of that candidate shall be treated as meeting the 
        requirements of 324(b)(1) and section 304(e) if--
                    ``(A) the amount is derived from funds which meet 
                the requirements of this Act with respect to any 
                limitation or prohibition as to source or dollar amount 
                specified in section 315(a) (1)(A) and (2)(A)(i); and
                    ``(B) the State or local candidate committee--
                            ``(i) maintains, in the account from which 
                        payment is made, records of the sources and 
                        amounts of funds for purposes of determining 
                        whether those requirements are met; and
                            ``(ii) certifies that the requirements were 
                        met.
            ``(2) Determination of compliance.--For purposes of 
        paragraph (1)(A), in determining whether the funds transferred 
        meet the requirements of this Act described in paragraph 
        (1)(A)--
                    ``(A) a State or local candidate committee's cash 
                on hand shall be treated as consisting of the funds 
                most recently received by the committee; and
                    ``(B) the committee must be able to demonstrate 
                that its cash on hand contains funds meeting those 
                requirements sufficient to cover the transferred funds.
            ``(3) Reporting.--Notwithstanding paragraph (1), any State 
        Party Grassroots Fund that receives a transfer described in 
        paragraph (1) from a State or local candidate committee shall 
        be required to meet the reporting requirements of this Act, and 
        shall submit to the Commission all certifications received, 
        with respect to receipt of the transfer from the candidate 
        committee.
    ``(d) Disbursements and Expenditures.--A State committee of a 
political party may make disbursements and expenditures from its State 
Party Grassroots Fund only for--
            ``(1) any generic campaign activity;
            ``(2) payments described in clauses (v), (x), and (xii) of 
        paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
        paragraph (9)(B) of section 301;
            ``(3) subject to the limitations of section 315(d), 
        payments described in clause (xii) of paragraph (8)(B), and 
        clause (ix) of paragraph (9)(B), of section 301 on behalf of 
        candidates other than for President and Vice President;
            ``(4) voter registration; and
            ``(5) development and maintenance of voter files during an 
        even-numbered calendar year.''.

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 202) 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 congressional 
        campaign committee of a political party, and any subordinate 
        committee of either, shall report all receipts and 
        disbursements during the reporting period, whether or not in 
        connection with an election for Federal office.
            ``(2) Other political committees to which section 324 
        applies.--A political committee (not described in paragraph 
        (1)) to which section 324(b)(1) applies shall report all 
        receipts and disbursements made for activities described in 
        section 324(b) (1) and (2)(iii).
            ``(3) Other political committees.--Any political committee 
        to which paragraph (1) or (2) does not apply shall report any 
        receipts or disbursements that are used in connection with a 
        Federal election.
            ``(4) 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).
    ``(5) 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) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431(8)) is amended--
            (1) by striking clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.
    (c) Reports by State Committees.--Section 304 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by subsection 
(a)) is amended by adding at the end the following:
    ``(f) Filing of State Reports.--In lieu of any report required to 
be filed by this Act, the Commission may allow a State committee of a 
political party to file with the Commission a report required to be 
filed under State law if the Commission determines such reports contain 
substantially the same information.''.
    (d) Other Reporting Requirements.--
            (1) Authorized committees.--Section 304(b)(4) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
        amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (H);
                    (B) by inserting ``and'' at the end of subparagraph 
                (I); and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) in the case of an authorized committee, 
                disbursements for the primary election, the general 
                election, and any other election in which the candidate 
                participates;''.
            (2) Names and addresses.--Section 304(b)(5)(A) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
        is amended by inserting ``, and the election to which the 
        operating expenditure relates'' after ``operating 
        expenditure''.

             TITLE II--INDEPENDENT EXPENDITURES; SOFT MONEY

SEC. 201. EXPRESS ADVOCACY.

    (a) 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) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
                            ``(iii) any payment during an election year 
                        (or in a nonelection year, during the period 
                        beginning on the date on which a vacancy for 
                        Federal office occurs and ending on the date of 
                        the special election for that office) for a 
                        communication that is made through any 
                        broadcast medium, newspaper, magazine, 
                        billboard, direct mail, or similar type of 
                        general public communication or political 
                        advertising by a national, State, district, or 
                        local committee of a political party, including 
                        a congressional campaign committee of a party, 
                        that refers to a clearly identified candidate; 
                        and
                            ``(iv) any payment for a communication that 
                        contains express advocacy.''.
    (b) Definition of Independent Expenditure.--Section 301 of the 
Federal Election Campaign Act of 1971 (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 that--
                    ``(i) contains express advocacy; and
                    ``(ii) is made without cooperation or consultation 
                with any candidate, or any authorized committee or 
                agent of such candidate, and which is not made in 
                concert with, or at the request or suggestion of, any 
                candidate, or any authorized committee or agent of such 
                candidate.''.
    (b) Definition of Express Advocacy.--Section 301 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431) (as amended by section 
102(c)) is amended by adding at the end the following:
            ``(22) Express advocacy.--
                    ``(A) In general.--The term `express advocacy' 
                includes--
                            ``(i) a communication that conveys a 
                        message that advocates the election or defeat 
                        of a clearly identified candidate for Federal 
                        office by using an expression such as `vote 
                        for,' `elect,' `support,' `vote against,' 
                        `defeat,' `reject,' `(name of candidate) for 
                        Congress', `vote pro-life,' or `vote pro-
                        choice', accompanied by a listing or picture of 
                        a clearly identified candidate described as 
                        `pro-life' or `pro-choice,' `reject the 
                        incumbent', or a similar expression;
                            ``(ii) a communication that is made through 
                        a broadcast medium, newspaper, magazine, 
                        billboard, direct mail, or similar type of 
                        general public communication or political 
                        advertising that involves aggregate 
                        disbursements of $10,000 or more, that refers 
                        to a clearly identified candidate, that a 
                        reasonable person would understand as 
                        advocating the election or defeat of the 
                        candidate, and that is made within 60 days 
                        before the date of a primary election (and is 
                        targeted to the State in which the primary is 
                        occurring), or 60 days before a general 
                        election; or
                            ``(iii) a communication that is made 
                        through a broadcast medium, newspaper, 
                        magazine, billboard, direct mail, or similar 
                        type of general public communication or 
                        political advertising that involves aggregate 
                        disbursements of $10,000 or more, that refers 
                        to a clearly identified candidate, that a 
                        reasonable person would understand as 
                        advocating the election or defeat of a 
                        candidate, that is made before the date that is 
                        30 days before the date of a primary election, 
                        or 60 days before the date of a general 
                        election, and that is made for the purpose of 
                        advocating the election or defeat of the 
                        candidate, as shown by 1 or more factors such 
                        as a statement or action by the person making 
                        the communication, the targeting or placement 
                        of the communication, or the use by the person 
                        making the communication of polling, 
                        demographic, or other similar data relating to 
                        the candidate's campaign or election.
                    ``(B) Exclusion.--The term `express advocacy' does 
                not include the publication or distribution of a 
                communication that is limited solely to providing 
                information about the voting record of elected 
                officials on legislative matters and that a reasonable 
                person would not understand as advocating the election 
                or defeat of a particular candidate.''.

SEC. 202. 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 obligates to make 
                independent expenditures aggregating $1,000 or more 
                after the 20th day, but more than 24 hours, before 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 each time that independent 
                expenditures aggregating an additional $1,000 are made 
                or obligated to be made 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 obligates to make 
                independent expenditures aggregating $10,000 or more at 
                any time up to and including the 20th day before an 
                election shall file a report describing the 
                expenditures within 48 hours after that amount of 
                independent expenditures has been made or obligated to 
                be made.
                    ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person shall file an 
                additional report each time that independent 
                expenditures aggregating an additional $10,000 are made 
                or obligated to be made 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. 203. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) (as amended by section 103(c)) is amended by adding at the end the 
following:
    ``(g) Election Activity of Persons Other Than Political Parties.--
            ``(1) In general.--A person other than a committee of a 
        political party that makes aggregate disbursements totaling in 
        excess of $10,000 for activities described in paragraph (2) 
        shall file a statement with the Commission--
                    ``(A) within 48 hours after the disbursements are 
                made; or
                    ``(B) in the case of disbursements that are made 
                within 20 days of an election, within 24 hours after 
                the disbursements are made.
            ``(2) Activity.--The activity described in this paragraph 
        is--
                    ``(A) any activity described in section 
                316(b)(2)(A) that refers to any candidate for Federal 
                office, any political party, or any Federal election; 
                and
                    ``(B) any activity described in subparagraph (B) or 
                (C) of section 316(b)(2).
            ``(3) Additional statements.--An additional statement shall 
        be filed each time additional disbursements aggregating $10,000 
        are made by a person described in paragraph (1).
            ``(4) Applicability.--This subsection does not apply to--
                    ``(A) a candidate or a candidate's authorized 
                committees; or
                    ``(B) an independent expenditure.
            ``(5) Contents.--A statement under this section shall 
        contain such information about the disbursements as the 
        Commission shall prescribe, including--
                    ``(A) the name and address of the person or entity 
                to whom the disbursement was made;
                    ``(B) the amount and purpose of the disbursement; 
                and
                    ``(C) if applicable, whether the disbursement was 
                in support of, or in opposition to, a candidate or a 
                political party, and the name of the candidate or the 
                political party.''.

                         TITLE III--ENFORCEMENT

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 at 
the end the following:
            ``(11) Filing reports.--
                    ``(A) Computer accessibility.--The Commission may 
                prescribe regulations under which persons required to 
                file designations, statements, and reports under this 
                Act--
                            ``(i) are 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 that manner if not 
                        required to do so under regulations prescribed 
                        under clause (i).
                    ``(B) Facsimile machine.--The Commission shall 
                prescribe regulations which allow persons to file 
                designations, statements, and reports required by this 
                Act through the use of facsimile machines.
                    ``(C) Verification of signature.--In prescribing 
                regulations under this paragraph, the Commission shall 
                provide methods (other than requiring a signature on 
                the document being filed) for verifying designations, 
                statements, and reports covered by the regulations. Any 
                document verified under any of the methods shall be 
                treated for all purposes (including penalties for 
                perjury) in the same manner as a document verified by 
                signature.''.

SEC. 302. 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)'' 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.
                    ``(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. 303. AUTHORITY TO SEEK INJUNCTION.

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

SEC. 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. INCREASE IN PENALTY FOR KNOWING AND WILLFUL VIOLATIONS.

    Section 309(a)(5)(B) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 437g(a)(5)(B)) is amended by striking ``the greater of 
$10,000 or an amount equal to 200 percent'' and inserting ``the greater 
of $15,000 or an amount equal to 300 percent''.

SEC. 306. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS NOT QUALIFIED TO 
              REGISTER TO VOTE.

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

SEC. 307. 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 
                        such 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. 308. 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)''; and
            (2) by adding at the end the following:
    ``(b) No person shall solicit contributions by falsely representing 
himself as a candidate or as a representative of a candidate, a 
political committee, or a political party.''.

SEC. 309. EXPEDITED PROCEDURES.

    Section 309(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)) (as amended by section 303) is amended by adding at the 
end the following:
            ``(14)(A) If the complaint in a proceeding was filed within 
        60 days immediately preceding 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 and it appears that the requirements for relief stated 
        in paragraph (13)(A) (ii), (iii), and (iv) are met, 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, immediately seek relief under paragraph 
                (13)(A).
            ``(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.''.

SEC. 310. REFERENCE OF SUSPECTED VIOLATION TO THE ATTORNEY GENERAL.

    Section 309(a)(5) of Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)) is amended by striking subparagraph (C) and inserting 
the following:
                    ``(C) Referral to the attorney general.--The 
                Commission may at any time, by an affirmative vote of 4 
                of its members, refer a possible violation of this Act 
                or chapter 95 or 96 of the Internal Revenue Code of 
                1986 to the Attorney General of the United States, 
                without regard to any limitations set forth in this 
                section.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. CONTRIBUTION LIMITS; INDEXING.

    (a) Increase in Candidate Contribution Limit.--Section 315(a)(1)(A) 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)(A)) 
is amended by striking ``$1,000'' and inserting ``$2,000''.
    (b) Indexing of Candidate Contribution Limit.--Section 315(c) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(c)) is 
amended--
            (1) in the second sentence of paragraph (1), by striking 
        ``subsection (b) and subsection (d)'' and inserting 
        ``subsections (a)(1)(A), (b), and (d)''; and
            (2) in paragraph (2)(B), by striking ``means the calendar 
        year 1974.'' and inserting ``means--
                    ``(i) for purposes of subsections (b) and (d), 
                calendar year 1974; and
                    ``(ii) for purposes of subsection (a)(1)(A), 
                calendar year 1997.''.

SEC. 402. 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 to personal use.--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
                    ``(G) dues, fees, and other payments to a health 
                club or recreational facility.''.

SEC. 403. 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 
be--
            ``(1) of sufficient type size to be clearly readable by the 
        recipient of the communication;
            ``(2) contained in a printed box set apart from the other 
        contents of the communication; and
            ``(3) consist of a reasonable degree of color contrast 
        between the background and the printed statement.
    ``(d)(1) Any broadcast or cablecast communication described in 
subsection (a)(1) or subsection (a)(2) shall include, in addition to 
the requirements of those subsections, an audio statement by the 
candidate that identifies the candidate and states that the candidate 
has approved the communication.
    ``(2) If a broadcast or cablecast communication described in 
paragraph (1) is broadcast or cablecast by means of television, the 
communication shall include, in addition to the audio statement under 
paragraph (1), a written statement which--
            ``(A) appears at the end of the communication in a clearly 
        readable manner with a reasonable degree of color contrast 
        between the background and the printed statement, for a period 
        of at least 4 seconds; and
            ``(B) is accompanied by a clearly identifiable photographic 
        or similar image of the candidate.
    ``(e) Any broadcast or cablecast communication described in 
subsection (a)(3) shall include, in addition to the requirements of 
those subsections, in a clearly spoken manner, the following statement: 
`________________ is responsible for the content of this 
advertisement.' (with the blank to be filled in with the name of the 
political committee or other person paying for the communication and 
the name of any connected organization of the payor). If broadcast or 
cablecast by means of television, the statement shall also appear in a 
clearly readable manner with a reasonable degree of color contrast 
between the background and the printed statement, for a period of at 
least 4 seconds.''.

SEC. 404. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

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

        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

SEC. 501. 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. 502. 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. 503. EFFECTIVE DATE.

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

SEC. 504. 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>