[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1689 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1689

                    To reform Federal election law.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 1998

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

_______________________________________________________________________

                                 A BILL


 
                    To reform Federal election law.

    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 ``Grassroots 
Campaign and Common Sense Federal Election Reform Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on out-of-state contributions.
Sec. 3. Limitation on political action committees.
Sec. 4. Use of personal wealth for campaign purposes.
Sec. 5. Increase in contribution limits.
Sec. 6. Limit on soft money donations to political parties.
Sec. 7. Increased disclosure for certain communications.
Sec. 8. Use of union dues for political purposes.
Sec. 9. Prohibition of fundraising on Federal property and other 
                            criminal prohibitions.
Sec. 10. Contributions to defray legal expenses of certain officials.
Sec. 11. Increased criminal penalties for violations of foreign 
                            national provisions and contributions in 
                            the name of another.
Sec. 12. Filing of reports using computers and facsimile machines.
Sec. 13. Term limits for Federal Election Commission.

SEC. 2. RESTRICTION ON OUT-OF-STATE CONTRIBUTIONS.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 301 et seq.) is amended by adding at the end the 
following:

``SEC. 324. LIMIT ON OUT-OF-STATE CONTRIBUTIONS.

    ``A candidate for nomination to, or election to, the Senate or 
House of Representatives or the candidate's authorized committees shall 
not accept an aggregate amount of funds during an election cycle from 
individuals, separate segregated funds, and multicandidate political 
committees that do not reside or have their headquarters within the 
candidate's State in excess of an amount equal to 40 percent of the 
total amount of contributions accepted by the candidate and the 
candidate's authorized committees.''.
    (b) Definition of Election Cycle.--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) Election cycle.--The term `election cycle' means the 
        period beginning on the day after the date of the most recent 
        general election for the specific office or seat that a 
        candidate is seeking and ending on the date of the next general 
        election for that office or seat.''.

SEC. 3. LIMITATION ON POLITICAL ACTION COMMITTEES.

    (a) Prohibition of Separate Segregated Funds.--Section 316(b)(2) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is 
amended--
            (1) in subparagraph (A), by inserting ``and'' after the 
        semicolon;
            (2) in subparagraph (B), by striking ``; and'' and 
        inserting a period; and
            (3) by striking subparagraph (C).
    (b) Prohibition of Certain Disbursements by Banks, Corporations, 
and Labor Organizations.--Section 316 of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441b) is amended by adding at the end the 
following:
    ``(c) Prohibited Disbursements.--A bank, labor organization, or 
corporation referred to in subsection (a) shall not make a disbursement 
for the establishment or administration of a political committee or the 
solicitation of contributions to such committee.''
    (c) Limitation on Contributions by Multicandidate Political 
Committees.--Section 315(a)(2) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441a(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``$5,000'' and 
        inserting ``$500''; and
            (2) in subparagraph (C), by striking ``in any'' and all 
        that follows through ``$5,000''.

SEC. 4. USE OF PERSONAL WEALTH FOR CAMPAIGN PURPOSES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following:
    ``(i)(1)(A) Not later than 15 days after the date a candidate 
qualifies for a ballot, under State law, the candidate shall file with 
the Commission a declaration stating whether or not the candidate 
intends to expend personal funds in connection with the candidate's 
election for office, in an aggregate amount equal to or greater than--
            ``(i) in the case of a candidate for the Senate, $250,000, 
        ; and
            ``(ii) in the case of a candidate for the House of 
        Representatives, $100,000.
    ``(B) In this subsection, the term `personal funds' means--
            ``(i) funds of the candidate or funds from obligations 
        incurred by the candidate in connection with the candidate's 
        campaign; and
            ``(ii) funds of the candidate's spouse, a child, stepchild, 
        parent, grandparent, brother, sister, half-brother, or half-
        sister of the candidate and the spouse of any such person, and 
        a child, stepchild, parent, grandparent, brother, half-brother, 
        sister, or half-sister of the candidate's spouse and the spouse 
        of such person.
    ``(C) The statement required by this subsection shall be in such 
form, and shall contain such information, as the Commission may, by 
regulation, require.
    ``(2) Notwithstanding any other provision of law, in any election 
in which a candidate declares an intention to expend more personal 
funds than the limits described in paragraph (1)(A), expends personal 
funds in excess of such limits, or fails to file the declaration 
required by this subsection--
            ``(A) subsection (h) shall apply to other eligible 
        candidates in the same election without regard to the $17,500 
        limit; and
            ``(B) the limitations on contributions in subsection (a) 
        for other eligible candidates in the same election shall be 
        increased for such election as follows:
                    ``(i) The limitations under subsection (a)(1)(A) 
                shall be increased to an amount equal to 1,000 percent 
                of such limitation; and
                    ``(ii) The limitations under subsection (a)(3) 
                shall be increased to an amount equal to 150 percent of 
                such limitation, but only to the extent that 
                contributions above such limitation are made to 
                candidates affected by the increased levels provided in 
                clause (i).
    ``(3) For purposes of this paragraph, an eligible candidate is a 
candidate who is not required to file a declaration under paragraph (1) 
or notice under paragraph (5).
    ``(4) If the limitations described in paragraph (2) are increased 
under paragraph (2) for a convention or a primary election, as they 
relate to an individual candidate, and such individual candidate is not 
a candidate in any subsequent election in such campaign, including the 
general election, the provisions of paragraph (2) shall no longer 
apply.
    ``(5) Any candidate who--
            ``(A) declares under paragraph (1) that the candidate does 
        not intend to expend personal funds in an aggregate amount in 
        excess of the limit described in paragraph (1)(A); and
            ``(B) subsequently does expend personal funds in excess of 
        such limit or intends to expend personal funds in excess of 
        such limits,
such candidate shall notify and file an amended declaration with the 
Commission and shall notify all other candidates for such office within 
24 hours after changing such declaration or exceeding such limits, 
whichever first occurs, by sending such notice by certified mail, 
return receipt requested. A candidate that violates this paragraph 
shall be subject to a civil penalty in an amount equal to 2 times the 
amount of funds expended in excess of the limits.
    ``(6) Any candidate who incurs personal loans in connection with 
his campaign under this Act shall not repay, either directly or 
indirectly, such loans from any contributions made to such candidate or 
any authorized committee of such candidate after the date of such 
election.
    ``(7) Notwithstanding any other provision of law, no candidate 
shall make expenditures from personal funds in connection with a 
general, special, or runoff election for office after the later of--
            ``(A) the date that is 90 days before the date of the 
        election; or
            ``(B) the day after the primary election for such office, 
        whichever date occurs later.
The provisions of this paragraph shall apply to all candidates 
regardless of whether such candidate has reached the limits provided in 
paragraph (1) of this subsection. A candidate that violates this 
paragraph shall be subject to a civil penalty in an amount equal to 3 
times the amount of funds expended.
    ``(8) The Commission shall take such action as it deems necessary 
under the enforcement provisions of this Act to assure compliance with 
the provisions of this subsection.''.

SEC. 5. INCREASE IN CONTRIBUTION LIMITS.

    (a) Increase in Limits.--Section 315(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$5,000''; and
                    (B) in subparagraph (B), by striking ``$20,000'' 
                and inserting ``$50,000''; and
            (2) in paragraph (3), by striking ``$25,000'' and inserting 
        ``$50,000''.
    (b) Indexing.--Section 315(c) of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking the second and third sentences;
                    (B) by inserting before ``At the beginning'' the 
                following: ``(A)''; and
                    (C) by adding at the end the following:
    ``(B) Each limitation established by subparagraphs (A) and (B) of 
paragraph (1) and paragraph (3) of subsection (a) or subsection (b) or 
(d) shall be increased by the percent difference determined under 
subparagraph (A).
    ``(C) Each amount increased under subparagraph (B) shall remain in 
effect for the calendar year in which the amount is increased.''; 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), calendar 
                year 1998.''.

SEC. 6. LIMIT ON SOFT MONEY DONATIONS TO POLITICAL PARTIES.

    (a) Soft Money of National Political Party Committees.--Title III 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as 
amended by section 2) is amended by adding at the end the following:

``SEC. 325. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

    ``A national committee of a political party, any subordinate 
committee of a national committee, a Senatorial or Congressional 
Campaign Committee of a national political party, or an entity that is 
directly or indirectly established, financed, maintained, or controlled 
by a national committee or a Senatorial or Congressional Campaign 
Committee of a national political party or that is an entity acting on 
behalf of a national committee or a Senatorial or Congressional 
Campaign Committee of a national political party shall not accept 
donations from any person during a calendar year in an aggregate amount 
that exceeds $100,000.''.

SEC. 7. INCREASED DISCLOSURE FOR CERTAIN COMMUNICATIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following:
    ``(d) Disclosure of Certain Communications.--
            ``(1) In general.--A person shall file a report under 
        paragraph (2) if the person expends an aggregate amount of 
        funds during a calendar year for communications described in 
        paragraph (3) in excess of--
                    ``(A) $25,000 with respect to a candidate; or
                    ``(B) $100,000 with respect to all candidates.
            ``(2) Report.--
                    ``(A) Time to file.--A report under this paragraph 
                shall be filed in accordance with subsection (a)(2).
                    ``(B) Contents of report.--A report filed under 
                this paragraph shall contain the same information 
                required for an independent expenditure under 
                subsection (c).
            ``(3) Communication described.--A communication described 
        in this paragraph is any communication that--
                    ``(A) is broadcast to the general public through 
                radio or television;
                    ``(B) mentions or refers to by name, 
                representation, or likeness any candidate for election 
                to Federal office;
                    ``(C) the payment for which is not a disbursement 
                described in clause (i) or (iii) of section 301(9)(B); 
                and
                    ``(D) the payment for which is not an independent 
                expenditure.''.

SEC. 8. USE OF UNION DUES FOR POLITICAL PURPOSES.

    Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b) (as amended by section 3) is amended by adding at the end the 
following:
    ``(d)(1) Except with the separate, prior, written, voluntary 
authorization of each individual, it shall be unlawful for any labor 
organization described in this section to collect from or assess its 
members or nonmembers any dues, initiation fee, or other payment, if 
any part of such dues, fee, or payment will be used for political 
activities.
    ``(2) An authorization described in paragraph (1) shall remain in 
effect until revoked and may be revoked at any time.
    ``(3) In this subsection, the term `political activities' includes 
communications or other activities which involve carrying on 
propaganda, attempting to influence legislation, or participating or 
intervening in any political campaign or political party.''.

SEC. 9. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY AND OTHER 
              CRIMINAL PROHIBITIONS.

    (a) Definition of Donation.--Section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431) (as amended by section 2) is 
amended by adding at the end the following:
    ``(21) 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)).''.
    (b) Prohibition of Fundraising on Federal Property.--Section 607 of 
title 18, United States Code, is amended--
            (1) in subsection (a), by inserting ``or donation within 
        the meaning of section 301(20)'' after ``section 301(8)''; and
            (2) in subsection (b)--
                    (A) by inserting ``or donations'' after 
                ``contributions'' each place it appears;
                    (B) by inserting ``or donation'' after 
                ``contribution''; and
                    (C) by inserting ``donator'' after ``contributor''.
    (c) Amendment of Title 18 To Include Prohibition of Donations.--
Chapter 29 of title 18, United States Code, is amended--
            (1) in section 602(a)(4), by inserting ``or donation within 
        the meaning of section 301(20)'' after ``section 301(8)''; and
            (2) in section 603(a)--
                    (A) by inserting ``or donation within the meaning 
                of section 301(20)'' after ``section 301(8)''; and
                    (B) by inserting ``or donation'' after 
                ``contribution'' the second and third time it appears.
    (d) Effective Date.--The amendments made by this section shall 
apply to violations occurring on or after the date of enactment of this 
Act.

SEC. 10. CONTRIBUTIONS TO DEFRAY LEGAL EXPENSES OF CERTAIN OFFICIALS.

    (a) Contributions To Defray Legal Expenses.--
            (1) Prohibition on making of contributions.--It shall be 
        unlawful for any person to make a contribution to a candidate 
        for nomination to, or election to, a Federal office (as defined 
        in section 301(3) of the Federal Election Campaign Act of 1971 
        (2 U.S.C. 431(3))), an individual who is a holder of a Federal 
        office, or any head of an Executive department, or any entity 
        established on behalf of any such individual, to defray legal 
        expenses of such individual--
                    (A) to the extent it would result in the aggregate 
                amount of such contributions from such person to or on 
                behalf of such individual to exceed $10,000 for any 
                calendar year; or
                    (B) if the person is--
                            (i) a foreign national (as defined in 
                        section 319(b) of the Federal Election Campaign 
                        Act of 1971 (2 U.S.C. 441e(b))); or
                            (ii) a person prohibited from contributing 
                        to the campaign of a candidate under section 
                        316 of the Federal Election Campaign Act of 
                        1971 (2 U.S.C. 441b).
            (2) Prohibition on acceptance of contributions.--No person 
        shall accept a contribution if the contribution would violate 
        paragraph (1).
            (3) Penalty.--A person that knowingly and willfully commits 
        a violation of paragraph (1) or (2) shall be fined an amount 
        not to exceed the greater of $25,000 or 300 percent of the 
        contribution involved in such violation, imprisoned for not 
        more than 1 year, or both.
            (4) Construction of prohibition.--Nothing in this section 
        shall be construed to permit the making of a contribution that 
        is otherwise prohibited by law.
    (b) Reporting Requirements.--A candidate for nomination to, or 
election to, a Federal office, an individual who is a holder of a 
Federal office, or any head of an Executive department, or any entity 
established on behalf of any such individual, that accepts 
contributions to defray legal expenses of such individual shall file a 
quarterly report with the Federal Election Commission including the 
following information:
            (1) The name and address of each contributor who makes a 
        contribution in excess of $25.
            (2) The amount of each contribution.
            (3) The name and address of each individual or entity 
        receiving disbursements from the fund.
            (4) A brief description of the nature and amount of each 
        disbursement.
            (5) The name and address of any provider of pro bono 
        services to the fund.
            (6) The fair market value of any pro bono services provided 
        to the fund.

SEC. 11. INCREASED CRIMINAL PENALTIES FOR VIOLATIONS OF FOREIGN 
              NATIONAL PROVISIONS AND CONTRIBUTIONS IN THE NAME OF 
              ANOTHER.

    Section 309(d)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(d)(1)) is amended by adding at the end the following:
    ``(D) In the case of a person who knowingly and willfully violates 
section 319 or 320, the person shall be fined an amount not to exceed 
$10,000, imprisoned for not more than 10 years, or both.''.

SEC. 12. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES.

    Section 304(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) Filing Reports Using Computers and Facsimile Machines.--
            ``(A) Software.--The Commission shall--
                    ``(i) develop software for use to file a 
                designation, statement, or report under this Act; and
                    ``(ii) provide a copy of the software at no cost to 
                a person required to file a designation, statement, or 
                report under this Act.
            ``(B) Computers.--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 the 
                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 a regulation promulgated under clause (i).
            ``(C) Facsimile machine.--The Commission shall promulgate a 
        regulation which allows a person to file a designation, 
        statement, or report required by this Act through the use of a 
        facsimile machine.
            ``(D) Verification of signature.--In promulgating a 
        regulation under this paragraph, the Commission shall provide 
        methods (other than requiring a signature on the document being 
        filed) for verifying a designation, statement, or report 
        covered by the regulation. A 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. 13. TERM LIMITS FOR FEDERAL ELECTION COMMISSION.

    (a) In General.--Section 306(a)(2)(A) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 437c(a)(2)(A)) is amended in the matter 
preceding clause (i) by striking ``terms of 6 years'' and inserting 
``no more than 1 term of 8 years''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to appointments made after the date of enactment of this Act and 
to Commissioners serving a term on the date of enactment of this 
section except that such Commissioner shall continue to serve until the 
expiration of such term.
                                 <all>