[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 25 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 183

105th CONGRESS

  1st Session

                                 S. 25

_______________________________________________________________________

                                 A BILL

             To reform the financing of Federal elections.

_______________________________________________________________________

                           September 25, 1997

     Committee discharged and ordered to be placed on the calendar





                                                       Calendar No. 183
105th CONGRESS
  1st Session
                                 S. 25

             To reform the financing of Federal elections.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

Mr. McCain (for himself, Mr. Feingold, Mr. Thompson, Mr. Wellstone, Mr. 
Graham, Mr. Kerrey, Mr. Dodd, Mr. Kerry, Mr. Bingaman, Mr. Glenn, Mrs. 
Murray, Mr. Kohl, Mr. Wyden, Ms. Moseley-Braun, Mr. Reid, Mr. Ford, Mr. 
Leahy, Mr. Cleland, Mr. Johnson, Mr. Durbin, Mrs. Boxer, Mr. Levin, Mr. 
  Harkin, Mr. Bryan, Mr. Moynihan, Mr. Lieberman, Ms. Mikulski, Mrs. 
Feinstein, Mr. Sarbanes, Mr. Byrd, Mr. Robb, and Mr. Dorgan) introduced 
the following bill; which was read twice and referred to the Committee 
                      on Rules and Administration

                           September 25, 1997

     Committee discharged and ordered to be placed on the calendar

_______________________________________________________________________

                                 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 ``Bipartisan 
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--SENATE ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. Senate election spending limits and benefits.
Sec. 102. Free broadcast time.
Sec. 103. Broadcast rates and preemption.
Sec. 104. Reduced postage rates.
Sec. 105. Contribution limit for eligible Senate candidates.
Sec. 106. Reporting requirement for Senate candidates.
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

                Subtitle A--Political Action Committees

Sec. 201. Ban on political action committee contributions to Federal 
                            candidates.
   Subtitle B--Provisions Relating to Soft Money of Political Party 
                               Committees

Sec. 211. Soft money of political party committee.
Sec. 212. State party grassroots funds.
Sec. 213. Reporting requirements.
     Subtitle C--Soft Money of Persons Other Than Political Parties

Sec. 221. Soft money of persons other than political parties.
                       Subtitle D--Contributions

Sec. 231. Contributions through intermediaries and conduits.
                  Subtitle E--Independent Expenditures

Sec. 241. Reporting requirements for certain independent expenditures.
                         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 
                            vote.
Sec. 307. Use of candidates' names.
Sec. 308. Prohibition of false representation to solicit contributions.
Sec. 309. Expedited procedures.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Use of contributed amounts for certain purposes.
Sec. 402. Campaign advertising.
Sec. 403. Limit on congressional use of the franking privilege.
Sec. 404. Party independent expenditures.
Sec. 405. Coordinated expenditures; independent expenditures.
Sec. 406. Express advocacy.
        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

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

         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

    (a) In General.--The Federal Election Campaign Act of 1971 is 
amended by adding at the end the following new title:

 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

``SEC. 501. DEFINITIONS.

    ``In this title:
            ``(1) Eligible senate candidate.--The term `eligible Senate 
        candidate' means a candidate who the Commission has certified 
        under section 505 as an eligible primary election Senate 
        candidate or as an eligible general election Senate candidate.
            ``(2) General election expenditure limit.--The term 
        `general election expenditure limit', with respect to an 
        eligible Senate candidate, means the limit applicable to the 
        eligible Senate candidate under section 503(d).
            ``(3) Out-of-state resident contribution limit.--The term 
        `out-of-State resident contribution limit', with respect to an 
        eligible Senate candidate, means the limit applicable to the 
        candidate under section 502(e).
            ``(4) Personal funds expenditure limit.--The term `personal 
        funds expenditure limit' means the limit stated in section 
        503(a).
            ``(5) Primary election expenditure limit.--The term 
        `primary election expenditure limit', with respect to an 
        eligible Senate candidate, means the limit applicable to the 
        eligible Senate candidate under section 503(b).
            ``(6) Runoff election expenditure limit.--The term `runoff 
        election expenditure limit', with respect to an eligible Senate 
        candidate, means the limit applicable to the eligible Senate 
        candidate under section 503(c).

``SEC. 502. ELIGIBLE SENATE CANDIDATES.

    ``(a) In General.--A candidate is--
            ``(1) an eligible primary election Senate candidate if the 
        Commission certifies under section 505 that the candidate--
                    ``(A) has met the primary election filing 
                requirement of subsection (b); and
                    ``(B) has met the threshold contribution 
                requirement of subsection (d); and
            ``(2) an eligible general election Senate candidate if the 
        Commission certifies under section 505 that the candidate--
                    ``(A) has met the general election filing 
                requirement of subsection (c); and
                    ``(B) has been certified as an eligible primary 
                election Senate candidate.
    ``(b) Primary Election Filing Requirement.--
            ``(1) In general.--The requirement of this subsection is 
        met if the candidate files with the Commission a declaration 
        that--
                    ``(A) the candidate and the candidate's authorized 
                committees--
                            ``(i)(I) will not exceed the personal funds 
                        expenditure limit, primary election expenditure 
                        limit, runoff election expenditure limit, or 
                        general election expenditure limit; and
                            ``(II) will accept only amounts of 
                        contributions for the primary election, any 
                        runoff election, and the general election that 
                        do not exceed the primary election expenditure 
                        limit, runoff election expenditure limit, and 
                        general election expenditure limit (reduced by 
                        any amount transferred to the current election 
                        cycle from a preceding election); and
                            ``(ii) will not accept contributions for 
                        the primary election, any runoff election, or 
                        the general election that would cause the 
                        candidate to exceed the out-of-State resident 
                        contribution limit; and
                    ``(B) at least 1 other candidate has qualified for 
                the same primary election ballot under the law of the 
                candidate's State.
            ``(2) Deadline for filing general election declaration.--
        The declaration under paragraph (1) shall be filed not later 
        than 7 days after the earlier of--
                    ``(A) the date on which the candidate qualifies for 
                the general election ballot under State law; or
                    ``(B) if under State law, a primary or runoff 
                election to qualify for the general election ballot 
                occurs after September 1, the date on which the 
                candidate wins the primary or runoff election.
    ``(d) Threshold Contribution Requirement.--
            ``(1) In general.--The requirement of this subsection is 
        met--
                    ``(A) if the candidate and the candidate's 
                authorized committees have received allowable 
                contributions during the applicable period in an amount 
                at least equal to the lesser of--
                            ``(i) 10 percent of the general election 
                        expenditure limit; or
                            ``(ii) $250,000; and
                    ``(B) the candidate files with the Commission a 
                statement under penalty of perjury that the requirement 
                of subparagraph (A) has been met, with supporting 
                materials demonstrating that the requirement has been 
                met.
            ``(2) Definitions.--In this subsection:
                    ``(A) Allowable contribution.--
                            ``(i) In general.--The term `allowable 
                        contribution' means a contribution that is made 
                        as a gift of money by an individual pursuant to 
                        a written instrument identifying the individual 
                        as the contributor.
                            ``(ii) Exclusions.--The term `allowable 
                        contribution' does not include a contribution 
                        from--
                                    ``(I) an individual residing 
                                outside the candidate's State to the 
                                extent that acceptance of the 
                                contribution would bring a candidate 
                                out of compliance with subsection (e); 
                                or
                                    ``(II) a source described in 
                                section 503(a)(2).
                    ``(B) Applicable period.--The term `applicable 
                period' means--
                            ``(i) the period beginning on January 1 of 
                        the calendar year preceding the calendar year 
                        of a general election and ending on the date on 
                        which the declaration under subsection (b) is 
                        filed by the candidate; or
                            ``(ii) in the case of a special election 
                        for the office of United States Senator, the 
                        period beginning on the date on which the 
                        vacancy in the office occurs and ending on the 
                        date of the general election.
    ``(e) Out-of-State Resident Contribution Limit.--
            ``(1) Requirement.--
                    ``(A) In general.--The requirement of this 
                subsection is met if at least 60 percent of the total 
                amount of contributions accepted by the candidate and 
                the candidate's authorized committees are from 
                individuals who are legal residents of the candidate's 
                State.
                    ``(B) Special rule for small states.--In the case 
                of a candidate to which the general election 
                expenditure limit under section 503(d)(1)(B)(i) 
                applies, the requirement of this subsection is met if, 
                at the option of the candidate--
                            ``(i) at least 60 percent of the total 
                        amount of contributions accepted by the 
                        candidate and the candidate's 
authorized committees are from individuals who are legal residents of 
the candidate's State; or
                            ``(ii) at least 60 percent of the number of 
                        individuals whose names are reported to the 
                        Commission as individuals from whom the 
                        candidate and the candidate's authorized 
                        committees accept contributions are legal 
                        residents of the candidate's State.
            ``(2) Personal funds.--For purposes of paragraph (1), 
        amounts consisting of funds from sources described in section 
        503(a) shall be treated as contributions from individuals 
        residing outside the candidate's State.
            ``(3) Time for meeting requirement.--The aggregate amount 
        of contributions received by an eligible Senate candidate as of 
        the end of each reporting period under section 304 shall meet 
        the requirement of paragraph (1).
            ``(4) Reporting requirements.--In addition to information 
        required to be reported under section 304, a candidate that 
        elects to comply with the requirements of paragraph (1)(B)(ii) 
        shall include in each report required to be filed under section 
        304 the name and address of and the amount of contributions 
        made by each individual that, during the calendar year in which 
        the reporting period occurs, makes contributions aggregating 
        $20 or more.

``SEC. 503. EXPENDITURE LIMITS.

    ``(a) Personal Funds Expenditure Limit.--
            ``(1) In general.--The aggregate amount of expenditures 
        that may be made during an election cycle by an eligible Senate 
        candidate or the candidate's authorized committees from the 
        sources described in paragraph (2) shall not exceed the lesser 
        of--
                    ``(A) 10 percent of the general election 
                expenditure limit; or
                    ``(B) $250,000.
            ``(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.
    ``(b) Primary Election Expenditure Limit.--The aggregate amount of 
expenditures for a primary election by an eligible primary election 
Senate candidate and the candidate's authorized committees shall not 
exceed the lesser of--
            ``(1) 67 percent of the general election expenditure limit; 
        or
            ``(2) $2,750,000.
    ``(c) Runoff Election Expenditure Limit.--The aggregate amount of 
expenditures for a runoff election by an eligible primary election 
Senate candidate and the candidate's authorized committees shall not 
exceed 20 percent of the general election expenditure limit.
    ``(d) General Election Expenditure Limit.--
            ``(1) In general.--Except as otherwise provided in this 
        title, the aggregate amount of expenditures for a general 
        election by an eligible general election Senate candidate and 
        the candidate's authorized committees shall not exceed the 
        lesser of--
                    ``(A) $5,500,000; or
                    ``(B) the greater of--
                            ``(i) $950,000; or
                            ``(ii) $400,000; plus
                                    ``(I) 30 cents multiplied by the 
                                voting age population not in excess of 
                                4,000,000; and
                                    ``(II) 25 cents multiplied by the 
                                voting age population in excess of 
                                4,000,000.
            ``(2) Exception.--In the case of an eligible Senate 
        candidate in a State that has not more than 1 transmitter for a 
        commercial Very High Frequency (VHF) television station 
        licensed to operate in that State, paragraph (1)(B)(ii) shall 
        be applied by substituting--
                    ``(A) `80 cents' for `30 cents' in subclause (I); 
                and
                    ``(B) `70 cents' for `25 cents' in subclause (II).
    ``(e) Exceptions for Complying Candidates Running Against 
Noncomplying Candidates.--
            ``(1) Fundraising in anticipation of increase.--
        Notwithstanding any other provision of this title, if any 
        opponent of an eligible Senate candidate is a noneligible 
        candidate who--
                    ``(A) has received contributions; or
                    ``(B) has made expenditures from a source described 
                in subsection (a);
        in an aggregate amount equal to 50 percent of the primary 
        election expenditure limit, runoff election expenditure limit, 
        or general election expenditure limit, the eligible Senate 
        candidate may accept contributions in excess of the primary 
        election expenditure limit, runoff election expenditure limit, 
        or general election expenditure limit (as the case may be) so 
        long as the eligible Senate candidate does not make any 
        expenditures with such excess contributions before becoming 
        entitled to an increase in the limit under paragraph (2) or 
        (3).
            ``(2) 50 percent increase.--If any opponent of an eligible 
        Senate candidate is a noneligible candidate who has made 
        expenditures in an aggregate amount equal to 105 percent of the 
        primary election expenditure limit, runoff election expenditure 
        limit, or general election expenditure limit, the primary 
        election expenditure limit, runoff election expenditure limit, 
        or general election expenditure limit (as the case may be of 
        the eligible Senate candidate) shall be increased by 50 
        percent.
            ``(3) 100 percent increase.--If any opponent of an eligible 
        Senate candidate is a noneligible candidate who has made 
        expenditures in an aggregate amount equal to 155 percent of the 
        primary election expenditure limit, runoff election expenditure 
        limit, or general election expenditure limit, the primary 
        election expenditure limit, runoff election expenditure limit, 
        or general election expenditure limit (as the case may be of 
        the eligible Senate candidate) shall be increased by 100 
        percent.
    ``(f) Expenditures in Response to Independent Expenditures.--If an 
eligible Senate candidate is notified by the Commission under section 
304(c)(4) that independent expenditures in an aggregate amount of 
$10,000 or more have been made in the same election in support of 
another candidate or against the eligible Senate candidate, the 
eligible Senate candidate shall be permitted to spend an amount equal 
to the amount of the independent expenditures, and any such 
expenditures shall not be subject to any limit applicable under this 
title to the eligible candidate for the election.
    ``(g) Indexing.--The amounts under subsections (b)(1) and (d)(1) 
shall be increased as of the beginning of each calendar year based on 
the increase in the price index determined under section 315(c), except 
that the base period shall be calendar year 1997.
    ``(h) Payment of Taxes.--The primary election expenditure limit, 
runoff election expenditure limit, and general election expenditure 
limit shall not apply to any expenditure for Federal, State, or local 
taxes with respect to earnings on contributions raised.
    ``(i) Notice of Failure To Comply With Requirements.--A candidate 
who filed a declaration under section 502 and subsequently acts in a 
manner that is inconsistent with any of the statements made in the 
declaration shall, not later than 24 hours after the first of the 
acts--
            ``(1) file with the Commission a notice describing those 
        acts; and
            ``(2) notify all other candidates for the same office by 
        sending a copy of the notice by certified mail, return receipt 
        requested.

``SEC. 504. BENEFITS FOR ELIGIBLE CANDIDATES.

    ``If an eligible Senate candidate has an opponent who has qualified 
for the ballot and who has received contributions (or expended funds 
from a source described in section 503(a)(2)) in an amount equal to 10 
percent or more of the applicable expenditure limit, the eligible 
Senate candidate shall be entitled to--
            ``(1) the broadcast media rates provided under section 
        315(b) of the Communications Act of 1934;
            ``(2) the free broadcast time provided under section 315(c) 
        of the Communications Act of 1934; and
            ``(3) the reduced postage rates provided in section 3626(e) 
        of title 39, United States Code.

``SEC. 505. CERTIFICATION BY COMMISSION.

    ``(a) In General.--The Commission shall determine whether a 
candidate has met the requirements of this title and, based on the 
determination, issue a certification stating whether the candidate is 
an eligible Senate candidate entitled to receive benefits under this 
title.
    ``(b) Certification.--
            ``(1) Primary election.--Not later than 7 business days 
        after a candidate files a declaration under section 502(b), the 
        Commission shall determine whether the candidate meets the 
        eligibility requirements of section 502(b)(1) and, if so, 
        certify that the candidate is an eligible primary election 
        Senate candidate entitled to receive benefits under this title.
            ``(2) General election.--Not later than 7 business days 
        after a candidate files a declaration under section 502(c), the 
        Commission shall determine whether the candidate meets the 
        eligibility requirement of section 502(c)(1), and, if so, 
        certify that the candidate is an eligible general election 
        Senate candidate entitled to receive benefits under this title.
    ``(c) Revocation.--
            ``(1) In general.--The Commission shall revoke a 
        certification under subsection (a), 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--
                    ``(A) violates any of the expenditure limits 
                contained in this title by making an aggregate amount 
                of expenditures that exceeds any applicable expenditure 
                limit by 5 percent or more;
                    ``(B) uses a benefit made available to a candidate 
                under this title in a manner not provided for in this 
                title; or
                    ``(C) fails to continue to meet the requirement of 
                this title.
            ``(2) No further benefits.--A candidate whose certification 
        has been revoked shall be ineligible for any further benefits 
        made available under this title for the duration of the 
        election cycle.
    ``(d) Determinations by Commission.--A determination (including a 
certification under subsection (a)) made by the Commission under this 
title shall be final, except to the extent that the determination is 
subject to examination and audit by the Commission under section 506 
and to judicial review.

``SEC. 506. MISUSE OF BENEFITS.

    ``(a) Misuse of Benefits.--If the Commission revokes the 
certification of an eligible Senate candidate, the Commission shall so 
notify the candidate, and the candidate shall pay to the provider of 
any benefit received by the candidate under this title an amount equal 
to the difference between the amount the candidate paid for such 
benefit and the amount the candidate would have paid for the benefit if 
the candidate were not an eligible Senate candidate.
    ``(b) Civil Penalties.--
            ``(1) Low amount of excess expenditures.--Any eligible 
        Senate candidate who makes expenditures that exceed a 
        limitation under this title by 2.5 percent or less shall pay to 
        the Commission an amount equal to the amount of the excess 
        expenditures.
            ``(2) Medium amount of excess expenditures.--Any eligible 
        Senate candidate who makes expenditures that exceed a 
        limitation under this title by more than 2.5 percent and less 
        than 5 percent shall pay to the Commission an amount equal to 3 
        times the amount of the excess expenditures.
            ``(3) Large amount of excess expenditures.--Any eligible 
        Senate candidate who makes expenditures that exceed a 
        limitation under this title by 5 percent or more shall pay to 
        the Commission an amount equal to 3 times the amount of the 
        excess expenditures plus a civil penalty to be imposed pursuant 
        to section 309.''.
    (b) Expenditures Made Before Effective Date.--An expenditure shall 
not be counted as an expenditure for purposes of the expenditure limits 
contained in the amendment made by subsection (a) if the expenditure is 
made before the date that is 60 days after the date of enactment of 
this Act.

SEC. 102. FREE BROADCAST TIME.

    (a) In General.--Section 315 of the Communications Act of 1934 (47 
U.S.C. 315) is amended--
            (1) in the third sentence of subsection (a) by striking 
        ``within the meaning of this subsection'' and inserting 
        ``within the meaning of this subsection and subsection (c)'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Free Broadcast Time.--
            ``(1) In general.--Except as provided in paragraph (3), 
        each eligible Senate candidate who has qualified for the 
        general election ballot as a candidate of a major or minor 
        party shall be entitled to receive a total of 30 minutes of 
        free broadcast time from broadcasting stations within the 
        candidate's State or an adjacent State.
            ``(2) Time.--
                    ``(A) Prime time.--Unless a candidate elects 
                otherwise, the broadcast time made available under this 
                subsection shall be between 6:00 p.m. and 10:00 p.m. on 
                any day that falls on Monday through Friday.
                    ``(B) Length of broadcast.--Except as otherwise 
                provided in this Act, a candidate may use such time as 
                the candidate elects, but time may not be used in 
                lengths of less than 30 seconds or more than 5 minutes.
                    ``(C) Maximum required of any one station.--A 
                candidate may not request that more than 15 minutes of 
                free broadcast time be aired by any one broadcasting 
                station.
            ``(3) More than 2 candidates.--In the case of an election 
        among more than 2 candidates described in paragraph (1), only 
        60 minutes of broadcast time shall be available for all such 
        candidates, and broadcast time shall be allocated as follows:
                    ``(A) Minor party candidates.--The amount of 
                broadcast time that shall be provided to the candidate 
                of a minor party shall be equal to 60 minutes 
                multiplied by the percentage of the number of popular 
                votes received by the candidate of that party in the 
                preceding general election for the Senate in the State 
                (or if subsection (e)(4)(B) applies, the percentage 
                determined under that subsection).
                    ``(B) Major party candidates.--The amount of 
                broadcast time remaining after assignment of broadcast 
                time to minor party candidates under clause (i) shall 
                be allocated equally between the major party 
                candidates.
            ``(4) Only 1 candidate.--In the case of an election in 
        which only 1 candidate qualifies to be on the general election 
        ballot, no time shall be required to be provided by a 
        broadcasting station under this subsection.
            ``(5) Exemption.--The Federal Election Commission shall by 
        regulation establish a procedure to exempt from the 
        requirements of this subsection--
                    ``(A) licensees the signals of which are broadcast 
                substantially nationwide; and
                    ``(B) licensees that establish that the 
                requirements of this subsection would impose a 
                significant economic hardship on the licensees.''; and
            (4) in subsection (d) (as redesignated by paragraph (2))--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(3) the term `major party' means, with respect to an 
        election for the United States Senate in a State, a political 
        party whose candidate for the United States Senate in the 
        preceding general election for the Senate in that State 
        received, as a candidate of that party, 25 percent or more of 
        the number of popular votes received by all candidates for the 
        Senate;
            ``(4) the term `minor party' means, with respect to an 
        election for the United States Senate in a State, a political 
        party--
                    ``(A) whose candidate for the United States Senate 
                in the preceding general election for the Senate in 
                that State received 5 percent or more but less than 25 
                percent of the number of popular votes received by all 
                candidates for the Senate; or
                    ``(B) whose candidate for the United States Senate 
                in the current general election for the Senate in that 
                State has obtained the signatures of at least 5 percent 
                of the State's registered voters, as determined by the 
                chief voter registration official of the State, in 
                support of a petition for an allocation of free 
                broadcast time under this subsection; and
            ``(5) the term `Senate election cycle' means, with respect 
        to an election to a seat in the United States Senate, the 6-
        year period ending on the date of the general election for that 
        seat.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date that is 60 days after the date of enactment of this 
Act.

SEC. 103. BROADCAST RATES AND PREEMPTION.

    (a) Broadcast Rates.--Section 315(b) of the Communications Act of 
1934 (47 U.S.C. 315(b)) is amended--
            (1) by striking ``(b) The charges'' and inserting the 
        following:
    ``(b) Broadcast Media Rates.--
            ``(1) In general.--The charges'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and adjusting the 
        margins accordingly;
            (3) in paragraph (1)(A) (as redesignated by paragraph 
        (2))--
                    (A) by striking ``forty-five'' and inserting 
                ``30''; and
                    (B) by striking ``lowest unit charge of the station 
                for the same class and amount of time for the same 
                period'' and inserting ``lowest charge of the station 
                for the same amount of time for the same period on the 
                same date''; and
            (4) by adding at the end the following:
            ``(2) Senate candidates.--
                    ``(A) Eligible senate candidates.--In the case of 
                an eligible Senate candidate (within the meaning of 
                section 501 of the Federal Election Campaign Act), the 
                charges for the use of a television broadcasting 
                station during the 30-day period and 60-day period 
                referred to in paragraph (1)(A) shall not exceed 50 
                percent of the lowest charge described in paragraph 
                (1)(A).
                    ``(B) Noneligible senate candidates.--In the case 
                of a candidate for the United States Senate who is not 
                an eligible Senate candidate, paragraph (1)(A) shall 
                not apply.''.
    (b) Preemption; Access.--Section 315 of the Communications Act of 
1934 (47 U.S.C. 315), as amended by section 102(a), is amended--
            (1) by redesignating subsections (d) and (e) (as 
        redesignated by section 102(a)(2)), as subsections (e) and (f), 
        respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Preemption.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        licensee shall not preempt the use, during any period specified 
        in subsection (b)(1)(A), of a broadcasting station by an 
        eligible Senate candidate who has purchased and paid for such 
        use pursuant to subsection (b)(2).
            ``(2) Circumstances beyond control of licensee.--If a 
        program to be broadcast by a broadcasting station is preempted 
        because of circumstances beyond the control of the broadcasting 
        station, any candidate advertising spot scheduled to be 
        broadcast during that program may also be preempted.''.
    (c) Revocation of License for Failure To Permit Access.--Section 
312(a)(7) of the Communications Act of 1934 (47 U.S.C. 312(a)(7)) is 
amended--
            (1) by striking ``or repeated'';
            (2) by inserting ``or cable system'' after ``broadcasting 
        station''; and
            (3) by striking ``his candidacy'' and inserting ``the 
        candidacy of the candidate, under the same terms, conditions, 
        and business practices as apply to the most favored advertiser 
        of the licensee''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date that is 60 days after the date of enactment of this 
Act.

SEC. 104. REDUCED POSTAGE RATES.

    (a) In General.--Section 3626(e) of title 39, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``and the National'' and 
                        inserting ``the National''; and
                            (ii) by inserting before the semicolon the 
                        following: ``, and, subject to paragraph (3), 
                        the principal campaign committee of an eligible 
                        Senate candidate;'';
                    (B) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (C) in subparagraph (C), by striking the period and 
                inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(D) the term `principal campaign committee' has the 
        meaning given in section 301 of the Federal Election Campaign 
        Act of 1971; and
            ``(E) the term `eligible Senate candidate' has the meaning 
        given in section 501 of the Federal Election Campaign Act of 
        1971.''; and
            (2) by adding after paragraph (2) the following:
    ``(3) The rate made available under this subsection with respect to 
an eligible Senate candidate shall apply only to that number of pieces 
of mail that is equal to 2 times the number of individuals in the 
voting age population (as certified under section 315(e) of the Federal 
Election Campaign Act of 1971) of the State.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date that is 60 days after the date of enactment of this 
Act.

SEC. 105. CONTRIBUTION LIMIT FOR ELIGIBLE SENATE CANDIDATES.

    Section 315(a)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(1)) is amended--
            (1) in subparagraph (A), by inserting ``except as provided 
        in subparagraph (B),'' before ``to'';
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively; and
            (3) by inserting after subparagraph (A) the following:
            ``(B) if the general election expenditure limit, primary 
        election expenditure limit, or runoff limit election 
        expenditure limit applicable to an eligible Senate candidate 
        has been increased under section 503(d), to the eligible Senate 
        candidate and the authorized political committees of the 
        candidate with respect to any election for the office of United 
        States Senator, which, in the aggregate, exceed $2,000;''.

SEC. 106. REPORTING REQUIREMENT FOR SENATE CANDIDATES.

    (a) Contributions by In-State Residents.--Section 304(b)(2) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (J);
            (2) by striking the period at the end of subparagraph (K) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(L) in the case of an eligible Senate candidate, 
                the total amount of contributions from individuals who 
                are residents of the State in which the candidate seeks 
                office.''.
    (b) Reports by Senate Candidates.--Section 304 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 
221) is amended by adding at the end the following:
    ``(h) Senate Candidates.--
            ``(1) Expenditures of personal funds.--
                    ``(A) In general.--A candidate for the Senate who 
                during an election cycle makes expenditures from 
                sources described in section 503(a)(2) in excess of the 
                personal funds expenditure limit under 503(a) shall 
                report the expenditures to the Commission within 48 
                hours after the expenditures have been made.
                    ``(B) Additional reports.--A candidate shall file 
                an additional report within 48 hours after the date on 
                which the candidate makes expenditures for the general 
                election from sources described in section 503(a)(2) 
                that in the aggregate exceed 25 percent of the general 
                election expenditure limit.
            ``(2) Expenditures of personal funds by a senate candidate 
        who is not an eligible candidate.--
                    ``(A) In general.--A primary election Senate 
                candidate or general election Senate candidate who is 
                not certified as an eligible candidate under section 
                505 and who has received contributions or made 
                expenditures from sources described in section 
                503(a)(2) in an aggregate amount that exceeds 50 
                percent of the general election expenditure limit shall 
                file a report with the Commission within 48 hours after 
                that amount of contributions have been received or 
                expenditures have been made.
                    ``(B) Additional reports.--A primary election 
                Senate candidate or general election Senate candidate 
                shall file an additional report within 48 hours after 
                the candidate has received contributions or made 
                expenditures from sources described in section 
                503(a)(2) in an aggregate amount that exceeds 105 
                percent or 155 percent of the applicable expenditure 
                limits.
            ``(3) Notification.--Within 48 hours after a report is 
        filed under paragraph (1) or (2), the Commission shall notify 
        each eligible Senate candidate in the election of the filing.
            ``(4) Report and notification requirements within 20 days 
        of an election.--
                    ``(A) Reports.--If any act which requires the 
                filing of any report under paragraphs (1) or (2) occurs 
                after the 20th day, but more than 24 hours before an 
                election, the report shall be filed by the candidate 
                within 24 hours of the occurrence of the act.
                    ``(B) Notification.--For any such report filed 
                under this subsection, the Commission shall notify the 
                appropriate eligible Senate candidate within 24 hours 
                after the filing of such report.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

                Subtitle A--Political Action Committees

SEC. 201. BAN ON POLITICAL ACTION COMMITTEE CONTRIBUTIONS TO FEDERAL 
              CANDIDATES.

    (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:

``SEC. 324. BAN ON POLITICAL ACTION COMMITTEE CONTRIBUTIONS TO FEDERAL 
              CANDIDATES.

    ``Notwithstanding any other provision of this Act, no person other 
than an individual or a political committee may make a contribution to 
a candidate or candidate's authorized committee.''.
    (b) Definition of Political Committee.--
            (1) Section 301(4).--Section 301(4) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 431(4)) is amended to read as 
        follows:
            ``(4) The term `political committee' means--
                    ``(A) the principal campaign committee of a 
                candidate;
                    ``(B) any national, State, or district committee of 
                a political party, including any subordinate committee 
                thereof;
                    ``(C) any local committee of a political party 
                that--
                            ``(i) receives contributions aggregating in 
                        excess of $5,000 during a calendar year;
                            ``(ii) makes payments exempted from the 
                        definition of contribution or expenditure under 
                        paragraph (8) or (9) aggregating in excess of 
                        $5,000 during a calendar year; or
                            ``(iii) makes contributions or expenditures 
                        aggregating in excess of $1,000 during a 
                        calendar year; and
                    ``(D) any committee jointly established by a 
                principal campaign committee and any committee 
                described in subparagraph (B) or (C) for the purpose of 
                conducting joint fundraising activities.''.
            (2) Section 316(b)(2).--Section 316(b)(2) of the Federal 
        Election Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is 
        amended--
                    (A) by inserting ``or'' after ``subject;'';
                    (B) by striking ``and their families; and'' and 
                inserting ``and their families.''; and
                    (C) by striking subparagraph (C).
    (c) Candidate's Committees.--
            (1) Contributions to authorized committee.--Section 315(a) 
        of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)) 
        is amended by adding at the end the following:
            ``(9) For the purposes of the limitations provided by 
        paragraphs (1) and (2), any political committee that is 
        established, financed, maintained, or controlled, directly or 
        indirectly, by any candidate or Federal officeholder shall be 
        deemed to be an authorized committee of such candidate or 
        officeholder.''.
            (2) Designation of authorized committee.--Section 302(e)(3) 
        of the Federal Election Campaign Act of 1971 (2 U.S.C. 432) is 
        amended by striking paragraph (3) and inserting the following:
            ``(3) No political committee that supports, or has 
        supported, more than one candidate may be designated as an 
        authorized committee, except that--
                    ``(A) a candidate for the office of President 
                nominated by a political party may designate the 
                national committee of such political party as the 
                candidate's principal campaign committee, if that 
                national committee maintains separate books of account 
                with respect to its functions as a principal campaign 
                committee; and
                    ``(B) a candidate may designate a political 
                committee established solely for the purpose of joint 
                fundraising by such candidates as an authorized 
                committee.''.
    (d) Rules Applicable When Ban Not in Effect.--For purposes of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.), during 
any period beginning after the effective date in which the limitation 
under section 324 (as added by subsection (a)) is not in effect--
            (1) the amendments made by subsections (a), (b), and (c) 
        shall not be in effect; and
            (2)(A) it shall be unlawful for a candidate for election, 
        or nomination for election, to the Senate or an authorized 
        committee of a Senate candidate to accept a contribution from a 
        multicandidate political committee or an intermediary or 
        conduit (within the meaning of paragraph (8)), to the extent 
        that the making or accepting of the contribution would cause 
        the aggregate amount of contributions received by the candidate 
        and the candidate's authorized committees from multicandidate 
        political committees, intermediaries, and conduits to exceed 20 
        percent of the primary election expenditure limit, runoff 
        election expenditure limit, or general election expenditure 
        limit (as those terms are defined in section 501) that is 
        applicable (or, if the candidate were an eligible Senate 
        candidate (as defined in section 501), would be applicable) to 
        the candidate, and a candidate shall return to the contributor 
        the excess of any contributions received over the amount of 
        contributions allowed to be accepted under this subparagraph; 
        and
            (B) it shall be unlawful for a political committee, 
        intermediary, or conduit to make a contribution to any 
        candidate or an authorized committee of a candidate that, in 
        the aggregate, exceeds the amount that an individual is 
        permitted, under section 315(a), to make directly to the 
        candidate and candidate's authorized committees.

   Subtitle B--Provisions Relating to Soft Money of Political Party 
                               Committees

SEC. 211. SOFT MONEY OF POLITICAL PARTY COMMITTEE.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) (as amended by section 201) is amended by adding at the 
end the following:

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

    ``(a) National Committees.--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.
    ``(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. 212. 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)) (as amended by 
section 105) is amended--
            (1) in subparagraph (C) by striking ``or'' at the end;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following:
            ``(D) 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) 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) 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 
        326(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 211) is amended by adding at the end the following:

``SEC. 326. 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 325(b)(1) and section 304(d) 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. 213. REPORTING REQUIREMENTS.

    (a) Reporting Requirements.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 241) 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 325 
        applies.--A political committee (not described in paragraph 
        (1)) to which section 325(b)(1) applies shall report all 
        receipts and disbursements made for activities described in 
        section 325(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''.

     Subtitle C--Soft Money of Persons Other Than Political Parties

SEC. 221. 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 213) is amended by adding at the end the 
following:
    ``(f) 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.''.

                       Subtitle D--Contributions

SEC. 231. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS.

    Section 315(a)(8) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(8)) is amended by striking paragraph (8) and inserting 
the following:
            ``(8) Intermediaries and conduits.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Acting on behalf of the entity.--The 
                        term `acting on behalf of the entity' means 
                        soliciting one or more contributions--
                                    ``(I) in the name of an entity;
                                    ``(II) using other than incidental 
                                resources of an entity; or
                                    ``(III) by directing a significant 
                                portion of the solicitations to other 
                                officers, employees, agents, or members 
                                of an entity or their spouses, or by 
                                soliciting a significant portion of the 
                                other officers, employees, agents, or 
                                members of an entity or their spouses.
                            ``(ii) Bundler.--The term `bundler' means 
                        an intermediary or conduit that delivers 
                        contributions made by other persons, and that 
                        is any of the following persons:
                                    ``(I) A political committee (other 
                                than the authorized campaign committee 
                                of the candidate receiving the funds) 
                                or an officer, employee or agent of a 
                                political committee.
                                    ``(II) A corporation, labor 
                                organization, or partnership or an 
                                officer, employee, or agent of a 
                                corporation, labor organization, or 
                                partnership, acting on behalf of the 
                                corporation, labor organization, or 
                                partnership.
                                    ``(III) A person required to be 
                                listed as a lobbyist on a registration 
                                or other report filed pursuant to the 
                                Lobbying Disclosure Act of 1995 (2 
                                U.S.C. 1601 et seq.) or any successor 
                                law that requires reporting on the 
                                activities of a person who is a 
                                lobbyist or foreign agent.
                            ``(iii) Deliver.--The term `deliver' means 
                        to deliver contributions to a candidate by any 
                        method used or suggested by a bundler that 
                        communicates to the candidate (or to the person 
                        who receives the contributions on behalf of the 
                        candidate) that the bundler collected the 
                        contributions for the candidate, including such 
                        methods as--
                                    ``(I) personal delivery;
                                    ``(II) United States mail or 
                                similar services;
                                    ``(III) messenger service; and
                                    ``(IV) collection at an event or 
                                reception.
                    ``(B) Treatment as contributions from persons by 
                whom made.--
                            ``(i) In general.--For purposes of the 
                        limitations imposed by this section, all 
                        contributions made by a person, either directly 
                        or indirectly, on behalf of a candidate, 
                        including contributions that are in any way 
                        earmarked or otherwise directed through an 
                        intermediary or conduit to the candidate, shall 
                        be treated as contributions from the person to 
                        the candidate.
                            ``(ii) Reporting.--The intermediary or 
                        conduit through which a contribution is made 
                        shall report the name of the original 
                        contributor and the intended recipient of the 
                        contribution to the Commission and to the 
                        intended recipient.
                    ``(C) Treatment as contributions from the 
                bundler.--Contributions that a bundler delivers to a 
                candidate, agent of the candidate, or the candidate's 
                authorized committee shall be treated as contributions 
                from the bundler to the candidate as well as from the 
                original contributor.
                    ``(D) No limitation on or prohibition of certain 
                activities.--This subsection does not--
                            ``(i) limit fundraising efforts for the 
                        benefit of a candidate that are conducted by 
                        another candidate or Federal officeholder; or
                            ``(ii) prohibit an officer, employee, or 
                        agent of a corporation, labor organization, or 
                        partnership from soliciting, collecting, or 
                        delivering a contribution to a candidate, agent 
                        of the candidate, or the candidate's authorized 
                        committee if the officer, employee, or agent 
                        does so by use of the personal resources of the 
                        officer, employee, or agent and is not acting 
                        on behalf of the corporation, labor 
                        organization, or partnership.''.

                  Subtitle E--Independent Expenditures

SEC. 241. 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 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 filing the 
                report shall file an additional report each time that 
                independent expenditures aggregating an additional 
                $1,000 are 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 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.
                    ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person filing the 
                report shall file an additional report each time that 
                independent expenditures aggregating an additional 
                $10,000 are made with respect to the same election as 
                that to which the initial report relates.
            ``(3) Place of filing; contents; transmittal.--
                    ``(A) Place of filing; contents.--A report under 
                this subsection--
                            ``(i) shall be filed with the Commission; 
                        and
                            ``(ii) 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.
                    ``(B) Transmittal to candidates.--In the case of an 
                election for United States Senator, not later than 2 
                business days after receipt of a report under this 
                subsection, the Commission shall transmit a copy of the 
                report to each eligible candidate seeking nomination 
                for election to, or election to, the office in 
                question.
            ``(4) Obligation to make expenditure.--For purposes of this 
        subsection, an expenditure shall be treated as being made on 
        the making of any payment or the taking of any action to incur 
        an obligation for payment.
            ``(5) Determinations by the commission.--
                    ``(A) In general.--The Commission may, upon a 
                request of a candidate or on its own initiative, make 
                its own determination that a person, including a 
                political committee, has made, or has incurred 
obligations to make, independent expenditures with respect to any 
candidate in any Federal election that in the aggregate exceed the 
applicable amounts under paragraph (1) or (2).
                    ``(B) Notification.--In the case of independent 
                expenditures made in connection with an election in 
                which an eligible Senate candidate is on the ballot, 
                the Commission shall notify each candidate in the 
                election of the making of the determination within 2 
                business days after making the determination.
                    ``(C) Time to comply with request for 
                determination.--A determination made at the request of 
                a candidate shall be made within 2 business days after 
                the date of the request.
            ``(6) Notification of an allowable increase in independent 
        expenditure limit.--When independent expenditures totaling in 
        the aggregate $10,000 have been made in the same election in 
        support of an opposing candidate or against an eligible Senate 
        candidate, the Commission shall, within 2 business days, notify 
        the eligible Senate candidate that the eligible Senate 
        candidate is entitled under section 503(e) to an increase in 
        the applicable expenditure limit in an amount equal to the 
        amount of the independent expenditures.''.

                         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)(A) 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) 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) 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) Selection of subjects.--The aggregate amount 
                of contributions received by an eligible Senate 
                candidate as of the end of each reporting period under 
                section 304 shall meet the requirement of paragraph 
                (1).
                    ``(C) Limitation.--The Commission shall not conduct 
                an audit or investigation of a candidate's authorized 
                committee under paragraph (1) until the candidate is no 
                longer a candidate for the office sought by the 
                candidate in an election cycle.
                    ``(D) 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)(A) 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) 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 
              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 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 new paragraph:
            ``(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.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. 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.

    ``Amounts received by a candidate as contributions, and any other 
amounts received by an individual as support for his or her activities 
as a holder of Federal office, may be used by such candidate or 
individual for expenditures in connection with his or her campaign for 
Federal office, for any ordinary and necessary expenses incurred in 
connection with his or her duties as a holder of Federal office, for 
contributions to any organization described in section 170(c) of title 
26, or for transfers to any national, State or local committee of any 
political party. No such amounts may be converted by any person to any 
personal use. For the purposes of this section, such amounts are 
converted to personal use if they are used to fulfill any commitment, 
obligation, or expense of any person that would exist irrespective of 
the candidate's campaign or individual's responsibilities as a Federal 
officeholder, including but not limited to, a home mortgage, rent, or 
utility payment; clothing purchase; noncampaign automobile expense; 
country club membership; vacation, or trip of a noncampaign nature; 
household food items; tuition payment; admission to a sporting event, 
concert, theater, or other form of entertainment not associated with a 
campaign; and dues, fees, or contributions to a health club or 
recreational facility.''.

SEC. 402. 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. 403. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

    (a) In General.--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.''.
    (b) Application of Savings.--It is the intent of Congress that any 
savings realized by virtue of the amendment made by subsection (a) 
shall be designated to pay for the benefits of section 104 (relating to 
reduced postage rates for eligible Senate candidates) provided under 
section 104.

SEC. 404. PARTY INDEPENDENT EXPENDITURES.

    Section 315(d) of the Federal Election Campaign Act of 1997 (2 
U.S.C. 441a(d)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``coordinated'' after ``make''; 
                and
                    (B) by striking ``(2) and (3)'' and inserting 
                ``(2), (3), and (4)''; and
            (2) by adding at the end the following:
            ``(4) Before a committee of a political party may make 
        coordinated expenditures in connection with a general election 
        campaign for Federal office in excess of $5,000 pursuant to 
        this subsection, the committee shall file with the Commission a 
        certification, signed by the treasurer, that the committee has 
not and will not make any independent expenditures in connection with 
that campaign for Federal office. A party committee that determines to 
make coordinated expenditures pursuant to this subsection shall not 
make any transfers of funds in the same election cycle to, or receive 
any transfer of funds in the same election cycle from, any other party 
committee that determines to make independent expenditures in 
connection with the same campaign for Federal office.
            ``(5)(A) A committee of a political party shall be 
        considered to be in coordination with a candidate of the party 
        if the committee--
                    ``(i) makes a payment for a communication or 
                anything of value in coordination with the candidate, 
                as described in section 301(8)(A)(iii);
                    ``(ii) makes a coordinated expenditure under 
                section 315(d) on behalf of the candidate;
                    ``(iii) participates in joint fundraising with the 
                candidate or in any way solicits or receives a 
                contribution on behalf of the candidate;
                    ``(iv) communicates with the candidate or an agent 
                of the candidate (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
                    ``(v) provides in-kind services, polling data, or 
                anything of value to the candidate.
            ``(6) For purposes of paragraphs (4) and (5), all political 
        committees established and maintained by a national political 
        party (including all congressional campaign committees) and all 
        political committees established by State political parties 
        shall be considered to be a single political committee.
            ``(7) For purposes of paragraph (5), any coordination 
        between a committee of a political party and a candidate of the 
        party after the candidate has filed a statement of candidacy 
        constitutes coordination for the period beginning with the 
        filing of the statement of candidacy and ending at the end of 
        the election cycle.''.

SEC. 405. COORDINATED EXPENDITURES; INDEPENDENT EXPENDITURES.

    (a) Definition of Coordinated Expenditure.--
            (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) a payment made for a communication 
                        or anything of value that is for the purpose of 
                        influencing an election for Federal office and 
                        that is a payment made in coordination with a 
                        candidate.''; and
                    (B) by adding at the end the following:
                    ``(C) For the purposes of subparagraph (A)(iii), 
                the term `payment made 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 
                        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 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 a view toward 
                        having the payment 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 or advisory position with the 
                        candidate's campaign or has participated in 
                        strategic or 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 individual or person who 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 
                        professional is retained to work on activities 
                        relating to that candidate's campaign.
                    ``(D) For purposes of subparagraph (C)(vi), 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.
            (2) Section 315(a)(7).--Section 315(a)(7) (2 U.S.C. 
        441a(a)(7)) is amended by striking paragraph (B), and inserting 
        the following:
                    ``(B) Payments made in coordination with a 
                candidate, as described in section 301(8)(A)(iii), 
                shall be considered to be contributions to such 
                candidate, and in the case of limitations on 
                expenditures, shall be treated as expenditures for 
                purposes of this paragraph.
    (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''.
    (c) 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 the participation or 
                cooperation of, or without consultation with, or 
                without coordination with a candidate or a candidate's 
                authorized committee or agent (within the meaning of 
                section 301(8)(A)(iii)).
                    ``(B) Exclusion.--The term `independent 
                expenditure' does not include an expenditure or payment 
                made in coordination with a candidate (within the 
                meaning of section 301(8)(A)(iii)).''.

SEC. 406. 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 Express Advocacy.--Section 301 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431) (as amended by section 
212(d)) is amended by adding at the end the following:
            ``(20) 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 30 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.''.

        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.