[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 918 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 918

             To reform the financing of Federal elections.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 17, 1997

 Mr. Kerry (for himself, Mr. Wellstone, Mr. Glenn, Mr. Biden, and Mr. 
Leahy) introduced the following bill; which was read twice and referred 
              to the Committee on Rules and Administration

_______________________________________________________________________

                                 A BILL


 
             To reform the financing of Federal elections.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Money, Clean 
Elections Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of clean money 
                            financing of Senate election campaigns.
Sec. 103. Reporting requirements for expenditures of private money 
                            candidates.
Sec. 104. Transition rule for current election cycle.
      TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES

Sec. 201. Reporting requirements for independent expenditures.
Sec. 202. Definition of independent expenditure.
Sec. 203. Limit on expenditures by political party committees.
Sec. 204. Party independent expenditures and coordinated expenditures.
                      TITLE III--VOTER INFORMATION

Sec. 301. Free broadcast time.
Sec. 302. Broadcast rates and preemption.
Sec. 303. Campaign advertisements; issue advertisements.
Sec. 304. Limit on congressional use of the franking privilege.
           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

Sec. 401. Soft money of political party committee.
Sec. 402. State party grassroots funds.
Sec. 403. Reporting requirements.
   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

Sec. 501. Appointment and terms of commissioners.
Sec. 502. Audits.
Sec. 503. Authority to seek injunction.
Sec. 504. Standard for investigation.
Sec. 505. Petition for certiorari.
Sec. 506. Expedited procedures.
Sec. 507. Filing of reports using computers and facsimile machines.
Sec. 508. Power to issue subpoena without signature of chairperson.
Sec. 509. Prohibition of contributions by individuals not qualified to 
                            vote.
                        TITLE VI--EFFECTIVE DATE

Sec. 601. Effective date.

      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

SEC. 101. FINDINGS AND DECLARATIONS.

    (a) Undermining of Democracy by Campaign Contributions From Private 
Sources.--The Senate finds and declares that the current system of 
privately financed campaigns for election to the Senate undermines 
democracy in the United States by--
            (1) violating the democratic principle of ``one person, one 
        vote'' and diminishing the meaning of the right to vote by 
        allowing monied interests to have a disproportionate and unfair 
        influence within the political process;
            (2) diminishing a Senator's accountability to constituents 
        by compelling legislators to be accountable to the major 
        contributors who finance their election campaigns;
            (3) creating a conflict of interest, perceived and real, by 
        encouraging Senators to take money from private interests that 
        are directly affected by Federal legislation;
            (4) imposing large, unwarranted costs on taxpayers through 
        legislative and regulatory outcomes shaped by unequal access to 
        lawmakers for campaign contributors;
            (5) driving up the cost of election campaigns, making it 
        difficult for qualified candidates without personal fortunes or 
        access to campaign contributions from monied individuals and 
        interest groups to mount competitive Senate election campaigns;
            (6) disadvantaging challengers, because large campaign 
        contributors tend to give their money to incumbent Senators, 
        thus causing Senate elections to be less competitive; and
            (7) burdening incumbents with a preoccupation with 
        fundraising and thus decreasing the time available to carry out 
        their public responsibilities.
    (b) Enhancement of Democracy by Providing Clean Money.--The Senate 
finds and declares that the replacement of private campaign 
contributions with clean money financing for all primary, runoff, and 
general elections to the Senate would enhance American democracy by--
            (1) helping to eliminate access to wealth as a determinant 
        of a citizen's influence within the political process and to 
        restore meaning to the principle of ``one person, one vote'';
            (2) increasing the accountability of Senators to the 
        constituents who elect them;
            (3) eliminating the inherent conflict of interest caused by 
        the private financing of the election campaigns of public 
        officials, thus restoring public confidence in the fairness of 
        the electoral and legislative processes;
            (4) reversing the escalating cost of elections and saving 
        taxpayers billions of dollars that are currently misspent due 
to legislative and regulatory agendas skewed by the influence of 
contributions;
            (5) creating a more level playing field for incumbents and 
        challengers, creating genuine opportunities for all Americans 
        to run for the Senate, and encouraging more competitive 
        elections; and
            (6) freeing Senators from the constant preoccupation with 
        raising money, and allowing them more time to carry out their 
        public responsibilities.

SEC. 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF CLEAN MONEY 
              FINANCING OF SENATE ELECTION CAMPAIGNS.

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

     ``TITLE V--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

``SEC. 501. DEFINITIONS.

    ``In this title:
            ``(1) Allowable contribution.--The term `allowable 
        contribution' means a qualifying contribution or seed money 
        contribution.
            ``(2) Clean money.--The term `clean money' means funds that 
        are made available by the Commission to a clean money candidate 
        under this title.
            ``(3) Clean money candidate.--The term `clean money 
        candidate' means a candidate for the Senate who is certified 
        under section 505 as being eligible to receive clean money.
            ``(4) Clean money qualifying period.--The term `clean money 
        qualifying period' means the period beginning on the date that 
        is 270 days before the date of the primary election and ending 
        on the date that is 30 days before the date of the general 
        election.
            ``(5) General election period.--The term `general election 
        period' means, with respect to a candidate, the period 
        beginning on the day after the date of the primary or primary 
        runoff election for the specific office that the candidate is 
        seeking, whichever is later, and ending on the earlier of--
                    ``(A) the date of the general election; or
                    ``(B) the date on which the candidate withdraws 
                from the campaign or otherwise ceases actively to seek 
                election.
            ``(6) General runoff election period.--The term `general 
        runoff election period' means, with respect to a candidate, the 
        period beginning on the day following the date of the last 
        general election for the specific office that the candidate is 
        seeking and ending on the date of the runoff election for that 
        office.
            ``(7) Immediate family.--The term `immediate family' 
        means--
                    ``(A) a candidate's spouse;
                    ``(B) a child, stepchild, parent, grandparent, 
                brother, half-brother, sister, or half-sister of the 
                candidate or the candidate's spouse; and
                    ``(C) the spouse of any person described in 
                subparagraph (B).
            ``(8) Major party candidate.--The term `major party 
        candidate' means a candidate of a political party of which a 
        candidate for Senator, for President, or for Governor in the 
        preceding 5 years received, as a candidate of that party, 25 
        percent or more of the total number of popular votes received 
        in the State by all candidates for the same office.
            ``(9) Personal funds.--The term `personal funds' means an 
        amount that is derived from--
                    ``(A) the personal funds of the candidate or a 
                member of the candidate's immediate family; and
                    ``(B) proceeds of indebtedness incurred by the 
                candidate or a member of the candidate's immediate 
                family.
            ``(10) Personal use.--
                    ``(A) In general.--The term `personal use' means 
                the use of funds to fulfill a commitment, obligation, 
                or expense of a person that would exist irrespective of 
                the candidate's election campaign or individual's 
                duties as a holder of Federal office.
                    ``(B) Inclusions.--The term `personal use' 
                includes--
                            ``(i) a home mortgage, rent, or utility 
                        payment;
                            ``(ii) a clothing purchase;
                            ``(iii) a noncampaign-related automobile 
                        expense;
                            ``(iv) a country club membership;
                            ``(v) a vacation or other noncampaign-
                        related trip;
                            ``(vi) a household food item;
                            ``(vii) a tuition payment;
                            ``(viii) admission to a sporting event, 
                        concert, theater, or other form of 
                        entertainment not associated with an election 
                        campaign; and
                            ``(ix) dues, fees, and other payments to a 
                        health club or recreational facility.
            ``(11) Primary election period.--The term `primary election 
        period' means the period beginning on the date that is 90 days 
        before the date of the primary election and ending on the date 
        of the primary election.
            ``(12) Primary runoff election period.--The term `primary 
        runoff election period' means, with respect to a candidate, the 
        period beginning on the day following the date of the last 
        primary election for the specific office that the candidate is 
        seeking and ending on the date of the runoff election for that 
        office.
            ``(13) Private money candidate.--The term `private money 
        candidate' means a candidate for the Senate other than a clean 
        money candidate.
            ``(14) Qualifying contribution.--The term `qualifying 
        contribution' means a contribution that--
                    ``(A) is in the amount of $5 exactly;
                    ``(B) is made by an individual who is registered to 
                vote in the candidate's State;
                    ``(C) is made during the clean money qualifying 
                period; and
                    ``(D) meets the requirements of section 
                502(a)(2)(D).
            ``(15) Seed money contribution.--The term `seed money 
        contribution' means a contribution (or contributions in the 
        aggregate made by any 1 person) of not more than $100.
            ``(16) Senate election fund.--The term `Senate Election 
        Fund' means the fund established by section 507(a).

``SEC. 502. ELIGIBILITY FOR CLEAN MONEY.

    ``(a) Primary Election Period and Primary Runoff Election Period.--
            ``(1) In general.--A candidate qualifies as a clean money 
        candidate during the primary election period and primary runoff 
        election period if the candidate files with the Commission a 
        declaration, signed by the candidate and the treasurer of the 
        candidate's principal campaign committee, that the candidate--
                    ``(A) has complied and will comply with all of the 
                requirements of this title;
                    ``(B) will not run in the general election as a 
                private money candidate; and
                    ``(C) meets the qualifying contribution requirement 
                of paragraph (2).
            ``(2) Qualifying contribution requirement.--
                    ``(A) Major party candidates.--The requirement of 
                this paragraph is met if, during the clean money 
                qualifying period, a major party candidate receives the 
                greater of--
                            ``(i) 1,000 qualifying contributions; or
                            ``(ii) a number of qualifying contributions 
                        equal to 0.25 percent of the voting age 
                        population of the candidate's State.
                    ``(B) Candidates that are not major party 
                candidates.--The requirement of this paragraph is met 
                if, during the clean money qualifying period, a 
                candidate that is not a major party candidate receives 
                a number of qualifying contributions that is at least 
                150 percent of the number of qualifying contributions 
                that a major party candidate in the same election is 
                required to receive under subparagraph (A).
                    ``(C) Receipt of qualifying contribution.--A 
                qualifying contribution shall--
                            ``(i) be accompanied by the contributor's 
                        name and home address;
                            ``(ii) be accompanied by a signed statement 
                        that the contributor understands the purpose of 
                        the qualifying contribution;
                            ``(iii) be made by a personal check or 
                        money order payable to the Senate Election Fund 
                        or by cash; and
                            ``(iv) be acknowledged by a receipt that is 
                        sent to the contributor with a copy kept by the 
                        candidate for the Commission and a copy kept by 
                        the candidate for the election authorities in 
                        the candidate's State.
                    ``(D) Deposit of qualifying contributions in senate 
                election fund.--
                            ``(i) In general.--Not later than the date 
                        that is 1 day after the date on which the 
                        candidate is certified under section 505, a 
                        candidate shall remit all qualifying 
                        contributions to the Commission for deposit in 
                        the Senate Election Fund.
                            ``(ii) Candidates that are not certified.--
                        Not later than the last day of the clean money 
                        qualifying period, a candidate who has received 
                        qualifying contributions and is not certified 
                        under section 505 shall remit all qualifying 
                        contributions to the Commission for deposit in 
                        the Senate Election Fund.
            ``(3) Time to file declaration.--A declaration under 
        paragraph (1) shall be filed by a candidate not later than the 
        date that is 30 days before the date of the primary election.
    ``(b) General Election Period.--
            ``(1) In general.--A candidate qualifies as a clean money 
        candidate during the general election period if--
                    ``(A)(i) the candidate qualified as a clean money 
                candidate during the primary election period (and 
                primary runoff election period, if applicable); or
                    ``(ii) the candidate files with the Commission a 
                declaration, signed by the candidate and the treasurer 
                of the candidate's principal committee, that the 
                candidate--
                            ``(I) has complied and will comply with all 
                        the requirements of this title; and
                            ``(II) meets the qualifying contribution 
                        requirement of subsection (a)(2);
                    ``(B) the candidate files with the Commission a 
                written agreement between the candidate and the 
                candidate's political party in which the political 
                party agrees not to make any expenditures in connection 
                with the general election of the candidate in excess of 
                the limit in section 315(d)(3)(C); and
                    ``(C) the candidate's party nominated the candidate 
                to be placed on the ballot for the general election or 
                the candidate qualified to be placed on the ballot as 
                an independent candidate, and the candidate is 
                qualified under State law to be on the ballot.
            ``(2) Time to file declaration or statement.--A declaration 
        or statement required to be filed under paragraph (1) shall be 
        filed by a candidate not later than the date that is 30 days 
        before the date of the general election.
    ``(c) General Runoff Election Period.--A candidate qualifies as a 
clean money candidate during the general runoff election period if the 
candidate qualified as a clean money candidate during the general 
election period.

``SEC. 503. REQUIREMENTS APPLICABLE TO CLEAN MONEY CANDIDATES.

    ``(a) Obligation To Comply.--A clean money candidate who accepts 
benefits during the primary election period shall comply with all the 
requirements of this Act through the primary runoff election period, 
the general election period, and the general runoff election period (if 
applicable) whether the candidate continues to accept benefits or not.
    ``(b) Contributions and Expenditures.--
            ``(1) Prohibition of private contributions.--Except as 
        otherwise provided in this title, during the election cycle of 
        a clean money candidate, the candidate shall not accept 
        contributions other than clean money from any source.
            ``(2) Prohibition of expenditures from private sources.--
        Except as otherwise provided in this title, during the election 
        cycle of a clean money candidate, the candidate shall not make 
        expenditures from any amounts other than clean money amounts.
    ``(c) Use of Personal Funds.--
            ``(1) In general.--A clean money candidate shall not use 
        personal funds to make an expenditure except as provided in 
        paragraph (2).
            ``(2) Exceptions.--A seed money contribution or qualifying 
        contribution from the candidate or a member of the candidate's 
        immediate family shall not be considered to be use of personal 
        funds.
    ``(d) Debates.--
            ``(1) Number of debates.--A clean money candidate shall 
        participate in at least--
                    ``(A) 1 public debate with other clean money 
                candidates from the same party for the same office 
                during the primary election period; and
                    ``(B) 2 public debates with other clean money 
                candidates for the same office during the general 
                election period.
            ``(2) Regulation.--The Commission shall promulgate a 
        regulation as necessary to carry out paragraph (1).

``SEC. 504. SEED MONEY.

    ``(a) Seed Money Limit.--A clean money candidate may accept seed 
money contributions in an aggregate amount not exceeding--
            ``(1) $50,000; plus
            ``(2) if there is more than 1 congressional district in the 
        candidate's State, an amount that is equal to $5,000 times the 
        number of additional congressional districts.
    ``(b) Contribution Limit.--Except as provided in section 502(a)(2), 
a clean money candidate shall not accept a contribution from any person 
except a seed money contribution (as defined in section 501).
    ``(c) Records.--A clean money candidate shall maintain a record of 
the contributor's name, street address, and amount of the contribution.
    ``(d) Use of Seed Money.--
            ``(1) In general.--A clean money candidate may expend seed 
        money for any election campaign-related costs, including costs 
        to open an office, fund a grassroots campaign, or hold 
        community meetings.
            ``(2) Prohibited uses.--A clean money candidate shall not 
        expend seed money for--
                    ``(A) a television or radio broadcast; or
                    ``(B) personal use.
    ``(e) Report.--Unless a seed money contribution or expenditure made 
with a seed money contribution has been reported previously under 
section 304, a clean money candidate shall file with the Commission a 
report disclosing all seed money contributions and expenditures not 
later than 48 hours after--
            ``(1) the earliest date on which the Commission makes funds 
        available to the candidate for an election period under 
        paragraph (1) or (2) of section 506(b); or
            ``(2) the end of the clean money qualifying period,
whichever occurs first.
    ``(f) Time to Accept and Expend Seed Money Contributions.--A clean 
money candidate may accept and expend seed money contributions for an 
election during the time period beginning on the day after the date of 
the previous general election for the office to which the candidate is 
seeking election and ending on the earliest date on which the 
Commission makes funds available to the candidate for an election 
period under paragraph (1) or (2) of section 506(b).
    ``(g) Deposit of Unspent Seed Money Contributions.--A clean money 
candidate shall remit any unspent seed money to the Commission, for 
deposit in the Senate Election Fund, not later than the earliest date 
on which the Commission makes funds available to the candidate for an 
election period under paragraph (1) or (2) of section 506(b).
    ``(h) Not Considered an expenditure.--An expenditure made with seed 
money shall not be treated as an expenditure for purposes of section 
506(f)(2).

``SEC. 505. CERTIFICATION BY COMMISSION.

    ``(a) In General.--Not later than 5 days after a candidate files a 
declaration under section 502, the Commission shall--
            ``(1) determine whether the candidate meets the eligibility 
        requirements of section 502; and
            ``(2) certify whether or not the candidate is a clean money 
        candidate.
    ``(b) Revocation of Certification.--The Commission may revoke a 
certification under subsection (a) if a candidate fails to comply with 
this title.
    ``(c) Repayment of Benefits.--If certification is revoked under 
subsection (b), the candidate shall repay to the Senate Election Fund 
an amount equal to the value of benefits received under this title.

``SEC. 506. BENEFITS FOR CLEAN MONEY CANDIDATES.

    ``(a) In General.--A clean money candidate shall be entitled to--
            ``(1) a clean money amount for each election period to make 
        or obligate to make expenditures during the election period for 
        which the clean money is provided, as provided in subsection 
        (c);
            ``(2) media benefits under section 315 of the 
        Communications Act of 1934 (47 U.S.C. 315); and
            ``(3) an aggregate amount of increase in the clean money 
        amount in response to certain independent expenditures and 
        expenditures of a private money candidate under subsection (d) 
        that, in the aggregate, are in excess of 125 percent of the 
        clean money amount of the clean money candidate.
    ``(b) Payment of Clean Money Amount.--
            ``(1) Primary election.--The Commission shall make funds 
        available to a clean money candidate on the later of--
                    ``(A) the date on which the candidate is certified 
                as a clean money candidate under section 505; or
                    ``(B) the date on which the primary election period 
                begins.
            ``(2) General election.--The Commission shall make funds 
        available to a clean money candidate not later than 48 hours 
        after--
                    ``(A) certification of the primary election or 
                primary runoff election result; or
                    ``(B) the date on which the candidate is certified 
                as a clean money candidate under section 505 for the 
                general election,
        whichever occurs first.
            ``(3) Runoff election.--The Commission shall make funds 
        available to a clean money candidate not later than 48 hours 
        after the certification of the primary or general election 
        result (as applicable).
    ``(c) Clean Money Amounts.--
            ``(1) Primary election clean money amount.--
                    ``(A) Major party candidates.--The primary election 
                clean money amount with respect to a clean money 
                candidate who is a major party candidate is 67 percent 
                of the general election clean money amount with respect 
                to the clean money candidate.
                    ``(B) Candidates that are not major party 
                candidates.--The primary election clean money amount 
                with respect to a clean money candidate who is not a 
                major party candidate is 25 percent of the general 
                election clean money amount with respect to the clean 
                money candidate.
            ``(2) Primary runoff election clean money amount.--The 
        primary runoff election clean money amount with respect to a 
        clean money candidate is 25 percent of the primary election 
        clean money amount with respect to the clean money candidate.
            ``(3) General election clean money amount.--
                    ``(A) In general.--The general election clean money 
                amount with respect to a clean money candidate is the 
                lesser of--
                            ``(i) $4,400,000; or
                            ``(ii) the greater of--
                                    ``(I) $760,000; or
                                    ``(II) $320,000; plus
                                            ``(aa) 24 cents multiplied 
                                        by the voting age population 
                                        not in excess of 4,000,000; and
                                            ``(bb) 20 cents multiplied 
                                        by the voting age population in 
                                        excess of 4,000,000.
                    ``(B) 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, 
                subparagraph (A)(ii)(II) shall be applied by 
                substituting--
                            ``(i) `64 cents' for `24 cents' in item 
                        (aa); and
                            ``(ii) `56 cents' for `20 cents' in item 
                        (bb).
                    ``(C) Indexing.--The clean money amount under 
                subparagraphs (A) and (B) shall be increased as of the 
                beginning of each calendar year based on an increase in 
                the price index determined under section 315(c), except 
                that the base period shall be calendar year 1997.
            ``(4) General runoff election clean money amount.--The 
        general runoff election clean money amount with respect to a 
        clean money candidate is 25 percent of the general election 
        clean money amount with respect to the clean money candidate.
            ``(5) Unopposed candidates.--Except for a candidate 
        receiving amounts under paragraph (1)(B), a clean money 
        candidate in a primary or general election in which there is no 
        opposing candidate shall receive a clean money amount with 
        respect to that election equal to 25 percent of the full clean 
        money amount that the candidate would receive in a contested 
        election.
    ``(d) Matching Funds in Response to Independent Expenditures and 
Expenditures of Private Money Candidates.--
            ``(1) In general.--If the Commission--
                    ``(A) receives notification under--
                            ``(i) subparagraphs (A) or (B) of section 
                        304(c)(2) that a person has made or obligated 
                        to make an independent expenditure in an 
                        aggregate amount of $1,000 or more in an 
                        election period or that a person has made or 
                        obligated to make an independent expenditure in 
                        an aggregate amount of $500 or more during the 
                        20 days preceding the date of an election in 
                        support of another candidate or against a clean 
                        money candidate; or
                            ``(ii) section 304(d)(1) that a private 
                        money candidate has made or obligated to make 
                        expenditures in an aggregate amount in excess 
                        of 100 percent of the amount of clean money 
                        provided to a clean money candidate who is an 
                        opponent of the private money candidate in the 
                        same election; and
                    ``(B) determines that the aggregate amount of 
                expenditures reported under subparagraph (A) in an 
                election period is in excess of 125 percent of the 
                amount of clean money provided to a clean money 
                candidate who is an opponent of the private money 
                candidate in the same election or against whom the 
                independent expenditure is made,
        the Commission shall make available to the clean money 
        candidate, not later than 24 hours after receiving a 
        notification under subparagraph (A), an aggregate amount of 
        increase in clean money in an amount equal to the aggregate 
        amount of expenditures that is in excess of 125 percent of the 
        amount of clean money provided to the clean money candidate as 
        determined under subparagraph (B).
            ``(2) Clean money candidates opposed by more than 1 private 
        money candidate.--For purposes of paragraph (1), if a clean 
        money candidate is opposed by more than 1 private money 
        candidate in the same election, the Commission shall take into 
        account only the amount of expenditures of the private money 
        candidate that expends, in the aggregate, the greatest amount 
        (as determined each time notification is received under section 
        304(d)(1)).
            ``(3) Clean money candidates opposed by clean money 
        candidates.--If a clean money candidate is opposed by a clean 
        money candidate, the increase in clean money amounts under 
        paragraph (1) shall be made available to the clean money 
        candidate if independent expenditures are made against the 
        clean money candidate or in behalf of the opposing clean money 
        candidate in the same manner as the increase would be made 
        available for a clean money candidate who is opposed by a 
        private money candidate.
    ``(e) Limits on Matching Funds.--The aggregate amount of clean 
money that a clean money candidate receives to match independent 
expenditures and the expenditures of private money candidates under 
subsection (d) shall not exceed 200 percent of the clean money amount 
that the clean money candidate receives under subsection (c).
    ``(f) Expenditures Made With Clean Money Amounts.--
            ``(1) In general.--The clean money amount received by a 
        clean money candidate shall be used only for the purpose of 
        making or obligating to make expenditures during the election 
        period for which the clean money is provided.
            ``(2) Expenditures in excess of clean money amount.--A 
        clean money candidate shall not make expenditures or incur 
        obligations in excess of the clean money amount.
            ``(3) Prohibited uses.--The clean money amount received by 
        a clean money candidate shall not be--
                    ``(A) converted to a personal use; or
                    ``(B) used in violation of law.
            ``(4) Petty cash fund.--
                    ``(A) In general.--A candidate may establish a 
                petty cash fund, to be used to pay expenses such as the 
                costs of food, newspapers, magazines, pay telephone 
                calls and other minor necessary expenses, that 
                contains, on any day, not more than--
                            ``(i) $200; plus
                            ``(ii) if there is more than 1 
                        congressional district in the candidate's 
                        State, an amount that is equal to $20 times the 
                        number of additional congressional districts.
                    ``(B) Receipt.--An expenditure from the petty cash 
                fund in an amount greater than $25 shall be evidenced 
                by a receipt describing the item purchased, the purpose 
                and cost of the item, and the name and street address 
                of the seller.
            ``(5) Penalty.--A person that uses a clean money amount in 
        violation of this subsection shall be imprisoned not more than 
        5 years, fined not more than $15,000, or both.
    ``(g) Remitting of Clean Money Amounts.--Not later than the date 
that is 14 days after the last day of the applicable election period, a 
clean money candidate shall remit any unspent clean money amount to the 
Commission for deposit in the Senate Election Fund.

``SEC. 507. ADMINISTRATION OF CLEAN MONEY.

    ``(a) Senate Election Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        a fund to be known as the `Senate Election Fund'.
            ``(2) Deposits.--The Commission shall deposit unspent seed 
        money contributions, qualifying contributions, penalty amounts 
        received under this title, and amounts appropriated for clean 
        money financing in the Senate Election Fund.
            ``(3) Funds.--The Commission shall withdraw the clean money 
        amount for a clean money candidate from the Senate Election 
        Fund.
    ``(b) Regulations.--The Commission shall promulgate a regulation 
to--
            ``(1) effectively and efficiently monitor and enforce the 
        limits on use of private money by clean money candidates;
            ``(2) effectively and efficiently monitor use of publicly 
        financed amounts under this title; and
            ``(3) enable clean money candidates to monitor expenditures 
        and comply with the requirements of this title.

``SEC. 508. EXPENDITURES MADE FROM FUNDS OTHER THAN CLEAN MONEY.

    ``If a clean money candidate makes an expenditure using funds other 
than funds provided under this title, the Commission shall assess a 
civil penalty against the candidate in an amount that is not more than 
10 times the amount of the expenditure.

``SEC. 509. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Senate Election 
Fund such sums as are necessary to carry out this title.''.

SEC. 103. REPORTING REQUIREMENTS FOR EXPENDITURES OF PRIVATE MONEY 
              CANDIDATES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following:
    ``(d) Private Money Candidates.--
            ``(1) Expenditures in excess of clean money amounts.--Not 
        later than 48 hours after making or obligating to make an 
        expenditure, a private money candidate (as defined in section 
        501) that makes or obligates to make expenditures during an 
        election period (as defined by section 501), in an aggregate 
        amount in excess of 100 percent of the amount of clean money 
        provided to a clean money candidate (as defined in section 
        501), who is an opponent of the private money candidate shall 
        file with the Commission a report stating the amount of each 
        expenditure (in increments of an aggregate amount of $1,000) 
        made or obligated to be made.
            ``(2) Place of filing; Notification.--
                    ``(A) Place of filing.--A report under this 
                subsection shall be filed with the Commission.
                    ``(B) Notification of clean money candidates.--Not 
                later than 24 hours after receipt of a report under 
                this subsection, the Commission shall notify each clean 
                money candidate seeking nomination for election to, or 
                election to, the office in question, of the receipt of 
                the report.
            ``(3) Determinations by the commission.--
                    ``(A) In general.--The Commission may, on a request 
                of a candidate or on its own initiative, make a 
                determination that a private money candidate has made, 
                or has obligated to make, expenditures in excess of the 
                applicable amount in paragraph (1).
                    ``(B) Notification.--In the case of such a 
                determination, the Commission shall notify each clean 
                money candidate seeking nomination for election to, or 
                election to, the office in question, of the making of 
                the determination not later than 24 hours after making 
                the determination.
                    ``(C) Time to comply with request for 
                determination.--A determination made at the request of 
                a candidate shall be made not later than 48 hours after 
                the date of the request.''.

SEC. 104. TRANSITION RULE FOR CURRENT ELECTION CYCLE.

    (a) In General.--During the election cycle in effect on the date of 
enactment of this Act, a candidate may be certified as a clean money 
candidate (as defined in section 501 of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431)), notwithstanding the acceptance of 
contributions or making of expenditures from private funds before the 
date of enactment that would, absent this section, disqualify the 
candidate as a clean money candidate.
    (b) Private Funds.--A candidate may be certified as a clean money 
candidate only if any private funds accepted and not expended before 
the date of enactment of this Act are--
            (1) returned to the contributor; or
            (2) submitted to the Federal Election Commission for 
        deposit in the Senate Election Fund (as defined in section 501 
        of the Federal Election Campaign Act of 1971 (2 U.S.C. 431)).

      TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES

SEC. 201. REPORTING REQUIREMENTS FOR INDEPENDENT EXPENDITURES.

    (a) Independent Expenditures.--Section 304(c) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434(c)) is amended--
            (1) by striking ``(c)(1) Every person'' and inserting the 
        following:
    ``(c) Independent Expenditures.--
            ``(1) In general.--
                    ``(A) Required filing.--Except as provided in 
                paragraph (2), every person'';
            (2) in paragraph (2), by redesignating subparagraphs (A), 
        (B), and (C) as clauses (i), (ii), and (iii), respectively, and 
        adjusting the margins accordingly;
            (3) by redesignating paragraphs (2) and (3) as 
        subparagraphs (B) and (C), respectively, and adjusting the 
        margins accordingly;
            (4) by adding at the end the following:
            ``(2) Senate elections with a clean money candidate.--
                    ``(A) Independent expenditures more than 20 days 
                before an election.--
                            ``(i) In general.--Not later than 48 hours 
                        after making or obligating to make an 
                        independent expenditure, more than 20 days 
                        before the date of an election, in support of 
                        an opponent of or in opposition to a clean 
                        money candidate (as defined in section 501), a 
                        person that makes independent expenditures in 
                        an aggregate amount in excess of $1,000 during 
                        an election period (as defined in section 501) 
                        shall file with the Commission a statement 
                        containing the information described in clause 
                        (ii).
                            ``(ii) Contents of statement.--A statement 
                        under subparagraph (A) shall include a 
                        certification, under penalty of perjury, that 
                        contains the information required by subsection 
                        (b)(6)(B)(iii).
                            ``(iii) Additional statements.--An 
                        additional statement shall be filed for each 
                        aggregate of independent expenditures that 
                        exceeds $1,000.
                    ``(B) Independent expenditures during the 20 days 
                preceding an election.--Not later than 24 hours after 
                making or obligating to make an independent expenditure 
                in support of an opponent of or in opposition to a 
                clean money candidate in an aggregate amount in excess 
                of $500, during the 20 days preceding the date of an 
                election, a person that makes or obligates to make the 
                independent expenditure shall file with the Commission 
                a statement stating the amount of each independent 
                expenditure made or obligated to be made.
                    ``(C) Place of filing; notification.--
                            ``(i) Place of filing.--A report or 
                        statement under this paragraph shall be filed 
                        with the Commission.
                            ``(ii) Notification of clean money 
                        candidates.--Not later than 24 hours after 
                        receipt of a statement under this paragraph, 
                        the Commission shall notify each clean money 
                        candidate seeking nomination for election to, 
                        or election to, the office in question of the 
                        receipt of a statement.
                    ``(D) Determination by the commission.--
                            ``(i) In general.--The Commission may, on 
                        request of a candidate or on its own 
                        initiative, make a determination that a person 
                        has made or obligated to make independent 
                        expenditures with respect to a candidate that 
                        in the aggregate exceed the applicable amount 
                        under subparagraph (A).
                            ``(ii) Notification.--Not later than 24 
                        hours after making a determination under clause 
                        (i), the Commission shall notify each clean 
                        money candidate in the election of the making 
                        of the determination.
                            ``(iii) Time to comply with request for 
                        determination.--A determination made at the 
                        request of a candidate shall be made not later 
                        than 48 hours after the date of the request.''.

SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE.

    (a) In General.--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 made by a person 
                other than a candidate or candidate's authorized 
                committee--
                            ``(i) that is made for a communication that 
                        contains express advocacy; and
                            ``(ii) is made without the participation or 
                        cooperation of and without coordination with a 
                        candidate (within the meaning of section 
                        301(8)(A)(iii)).
                    ``(B) Express advocacy.--The term `express 
                advocacy' means a communication that is made through a 
                broadcast medium, newspaper, magazine, billboard, 
                direct mail, or similar type of general public 
                communication or political advertising and that--
                            ``(i) advocates the election or defeat of a 
                        clearly identified candidate, including any 
                        communication that--
                                    ``(I) contains a phrase such as 
                                `vote for', `re-elect', `support', 
                                `cast your ballot for', `(name of 
                                candidate) for Congress', `(name of 
                                candidate) in 1997', `vote against', 
                                `defeat', `reject'; or
                                    ``(II) contains campaign slogans or 
                                individual words that in context can 
                                have no reasonable meaning other than 
                                to recommend the election or defeat of 
                                1 or more clearly identified 
                                candidates; or
                            ``(ii)(I) involves aggregate disbursements 
                        of $5,000 or more;
                            ``(II) refers to a clearly identified 
                        candidate; and
                            ``(III) is made not more than 60 days 
                        before the date of a general election.''.
    (b) Definition Applicable When Provision Not in Effect.--For 
purposes of the Federal Election Campaign Act of 1971, during any 
period beginning after the effective date of this Act in which the 
definition, or any part of the definition, under section 301(17)(B) of 
that Act (as added by subsection (a)) is not in effect, the definition 
of `express advocacy' shall mean, in addition to the part of the 
definition that is in effect, a communication that clearly identifies a 
candidate and--
            (1) taken as a whole and with limited reference to external 
        events, such as proximity to an election, expresses 
        unmistakable support for or opposition to 1 or more clearly 
        identified candidates; or
            (2) is made for the clear purpose of advocating the 
        election or defeat of the candidate, as shown by the existence 
        of each of the following factors:
                    (A) A statement or action by the person making the 
                communication.
                    (B) The targeting or placement of the 
                communication.
                    (C) The use by the person making the communication 
                of polling, demographic, or other similar data relating 
                to the candidate's campaign for election.

SEC. 203. LIMIT ON EXPENDITURES BY POLITICAL PARTY COMMITTEES.

    Section 315(d)(3) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(d)(3)) is amended--
            (1) in subparagraph (A)(ii)--
                    (A) by inserting ``except an election in which 1 or 
                more of the candidates is a clean money candidate (as 
                defined in section 501)'' after ``Senator''; and
                    (B) by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(C) in the case of an election to the office of Senator 
        in which 1 or more candidates is a clean money candidate (as 
        defined in section 501), 10 percent of the amount of clean 
        money that a clean money candidate is eligible to receive for 
        the general election period.''.

SEC. 204. PARTY INDEPENDENT EXPENDITURES AND COORDINATED EXPENDITURES.

    (a) Determination To Make Coordinated Expenditures.--Section 315(d) 
of the Federal Election Campaign Act of 1971 (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)(A) Before a committee of a political party makes a 
        coordinated expenditure in connection with a general election 
        campaign for Federal office in excess of $5,000, the committee 
        shall file with the Commission a certification, signed by the 
        treasurer, that the committee has not made and will not make 
        any independent expenditures in connection with that campaign 
        for Federal office. A party committee that determines to make a 
coordinated expenditure shall not make any transfer 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.
            ``(B) 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 this 
                subsection 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.
            ``(C) For purposes of this paragraph, all political 
        committees established and maintained by a national political 
        party (including all congressional campaign committees) and all 
        political committees established by State political parties 
        shall be considered to be a single political committee.
            ``(D) For purposes of subparagraph (A), 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.''.
    (b) Definitions.--
            (1) Amendment of definition of contribution.--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 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; and
                            ``(vi) a payment made by a person if the 
                        person making the payment retains the 
                        professional services of an 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 payment is for 
                        services of which the purpose is to influence 
                        that candidate's election.
                    ``(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) Definition of contribution in section 315(a)(7).--
        Section 315(a)(7) of the Federal Election Campaign Act of 1971 
        (2 U.S.C. 441a(a)(7)) is amended by striking paragraph (B) and 
        inserting the following:
            ``(B)(i) Except as provided in clause (ii), a payment made 
        in coordination with a candidate (as described in section 
        301(8)(A)(iii)) shall be considered to be a contribution to the 
        candidate, and, for the purposes of any provision of this Act 
        that imposes a limitation on the making of expenditures by a 
        candidate, shall be treated as an expenditure by the candidate 
        for purposes of this paragraph.
            ``(ii) In the case of a clean money candidate (as defined 
        in section 501), a payment made in coordination with a 
        candidate by a committee of a political party shall not be 
        treated as a contribution to the candidate for purposes of 
        section 503(b)(1) or an expenditure made by the candidate for 
        purposes of section 503(b)(2).''.
    (c) 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)(2)) is amended by striking ``shall include'' and 
inserting ``includes a contribution or expenditure (as those terms are 
defined in section 301) and also includes''.

                      TITLE III--VOTER INFORMATION

SEC. 301. FREE BROADCAST TIME.

    Section 315 of the Communications Act of 1934 (47 U.S.C. 315) is 
amended--
            (1) in subsection (a), in the third sentence, by striking 
        ``within the meaning of this subsection'' and inserting 
        ``within the meaning of this subsection or 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) Amount of time.--A clean money candidate shall be 
        entitled to receive--
                    ``(A) 30 minutes of free broadcast time during each 
                of the primary election period and the primary runoff 
                election period; and
                    ``(B) 60 minutes of free broadcast time during the 
                general election period.
            ``(2) Time during which the broadcast is aired.--The 
        broadcast time under paragraph (1) shall be--
                    ``(A) with respect to a television broadcast, the 
                time between 6:00 p.m. and 10:00 p.m. on any day that 
                falls on Monday through Friday; and
                    ``(B) with respect to a radio broadcast, the time 
                between 7:00 a.m. and 9:30 a.m. or between 4:30 p.m. 
                and 7:00 p.m. on any day that falls on Monday through 
                Friday.
            ``(3) Maximum required of any station.--The amount of free 
        broadcast time that any 1 station is required to make available 
        to any 1 clean money candidate during each of the primary 
        election period, primary runoff election period, and general 
        election period shall not exceed 15 minutes.
            ``(4) Content of broadcast.--A broadcast under this 
        subsection shall be more than 30 seconds and less than 5 
        minutes in length.''; and
            (4) in subsection (d) (as redesignated by paragraph (1))--
                    (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 by redesignating 
                that paragraph as paragraph (4);
                    (C) by inserting after paragraph (1) the following:
            ``(2) the term `clean money candidate' has the meaning 
        given in section 501 of the Federal Election Campaign Act of 
        1971;
            ``(3) the term `general election period' has the meaning 
        given in section 501 of the Federal Election Campaign Act of 
        1971;''; and
                    (D) by adding at the end the following:
            ``(5) the term `primary election period' has the meaning 
        given in section 501 of the Federal Election Campaign Act of 
        1971;
            ``(6) the term `private money candidate' has the meaning 
        given in section 501 of the Federal Election Campaign Act of 
        1971; and
            ``(7) the term `primary runoff election period' has the 
        meaning given in section 501 of the Federal Election Campaign 
        Act of 1971.''.

SEC. 302. 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 redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and adjusting the 
        margins accordingly;
            (2) by striking ``The charges'' and inserting the 
        following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        charges''; and
            (3) by adding at the end the following:
            ``(2) Clean money candidates.--In the case of a clean money 
        candidate, the charges for the use of a television broadcasting 
        station shall not exceed 50 percent of the lowest charge 
        described in paragraph (1)(A) during--
                    ``(A) the 30 days preceding the date of a primary 
                or primary runoff election in which the candidate is 
                opposed; and
                    ``(B) the 60 days preceding the date of a general 
                or special election in which the candidate is opposed.
            ``(3) Rate cards.--A licensee shall provide to a Senate 
        candidate a rate card that discloses--
                    ``(A) the rate charged under this subsection; and
                    ``(B) the method that the licensee uses to 
                determine the rate charged under this subsection.''.
    (b) Preemption.--Section 315 of the Communications Act of 1934 (47 
U.S.C. 315) (as amended by section 301) is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(d) Preemption.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        licensee shall not preempt the use of a broadcasting station by 
        a legally qualified candidate for the United States Senate who 
        has purchased and paid for such use.
            ``(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.''.

SEC. 303. CAMPAIGN ADVERTISEMENTS; ISSUE ADVERTISEMENTS.

    (a) Contents of Campaign Advertisements.--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.
    ``(f) Any broadcast or cablecast communication described in 
subsection (a)(1), made by or on behalf of a private money candidate 
(as defined in section 501), shall include, in addition to the 
requirements of this subsection, in a clearly spoken manner, the 
following statement: `This candidate has chosen not to participate in 
the Clean Money, Clean Elections Act and is receiving campaign 
contributions from private sources'.''.
    (b) Reporting Requirements for Issue Advertisements.--Section 304 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as amended 
by section 103) is amended by adding at the end the following:
    ``(e) Issue Advertisements.--
            ``(1) In general.--A person that makes or obligates to make 
        a disbursement to purchase an issue advertisement shall file a 
        report with the Commission not later than 48 hours after making 
        or obligating to make the disbursement, containing the 
        following information--
                    ``(A) the amount of the disbursement;
                    ``(B) the information required under subsection 
                (b)(3)(A) for each person that makes a contribution, in 
                an aggregate amount of $5,000 or greater in a calendar 
                year, to the person who makes the disbursement;
                    ``(C) the name and address of the person making the 
                disbursement; and
                    ``(D) the purpose of the issue advertisement.
            ``(2) Definition of issue advertisement.--In this 
        subsection, the term `issue advertisement' means a 
        communication through a broadcasting station, newspaper, 
        magazine, outdoor advertising facility, mailing, or any other 
        type of general public political advertising--
                    ``(A) the purchase of which is not an independent 
                expenditure or a contribution;
                    ``(B) that contains the name or likeness of a 
                Senate candidate;
                    ``(C) that is communicated during an election year; 
                and
                    ``(D) that recommends a position on a political 
                issue.''.

SEC. 304. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

    Section 3210(a)(6) of title 39, United States Code, is amended by 
striking subparagraph (A) and inserting the following:
                    ``(A)(i) Except as provided in clause (ii), 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 in that year or for 
                election to any other Federal office.
                    ``(ii) A Member of Congress may mail a mass mailing 
                as franked mail if--
                            ``(I) the purpose of the mailing is to 
                        communicate information about a public meeting; 
                        and
                            ``(II) the content of the mailed matter 
                        includes only the candidate's name, and the 
                        date, time, and place of the public meeting.''.

           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

SEC. 401. SOFT MONEY OF POLITICAL PARTY COMMITTEE.

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

``SEC. 324. SOFT MONEY OF PARTY COMMITTEES.

    ``(a) National Committees.--A national committee of a political 
party (including a national congressional campaign committee of a 
political party 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.--A State, district, or local committee of 
        a political party shall not expend or disburse any amount 
        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) 
        unless the amount is 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 activities 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.--A national, State, 
                district, or local committee of a political party shall 
                not expend any amount to raise funds that are used, in 
                whole or in part, to pay the costs of an activity 
                described in paragraph (1) unless the amount is 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) shall not 
solicit any funds for or make any donations to an organization that is 
exempt from Federal taxation under section 501(a) of the Internal 
Revenue Code of 1986 and that is described in section 501(c) of such 
Code.
    ``(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 this 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.
    ``(e) Definition of Committee.--In this section, the term 
`committee of a political party' includes an entity that is directly or 
indirectly established, financed, maintained, or controlled by a 
committee or its agent, an entity acting on behalf of a committee, and 
an officer or agent acting on behalf of any such committee or 
entity.''.

SEC. 402. STATE PARTY GRASSROOTS FUNDS.

    (a) Individual Contributions.--Section 315(a)(1) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) is amended--
            (1) in subparagraph (B) by striking ``or'' at the end;
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
            ``(C) to--
                    ``(i) a State Party Grassroots Fund established and 
                maintained by a State committee of a political party in 
                any calendar year which, in the aggregate, exceed 
                $20,000;
                    ``(ii) any other political committee established 
                and maintained by a State committee of a political 
                party in any calendar year which, in the aggregate, 
                exceed $5,000;
        except that the aggregate contributions described in this 
        subparagraph that may be made by a person to the State Party 
        Grassroots Fund and all committees of a State Committee of a 
        political party in any State in any calendar year shall not 
        exceed $20,000; or''.
    (b) Limits.--
            (1) In general.--Section 315(a) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by striking 
        paragraph (3) and inserting the following:
            ``(3) Overall limits.--
                    ``(A) Individual limit.--No individual shall make 
                contributions during any calendar year that, in the 
                aggregate, exceed $25,000.
                    ``(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 401) is amended by adding at the end the following:

``SEC. 325. STATE PARTY GRASSROOTS FUNDS.

    ``(a) In General.--A State committee of a political party shall 
only make disbursements and expenditures from the committee's State 
Party Grassroots Fund that are described in subsection (d).
    ``(b) Transfers.--
            ``(1) In general.--Notwithstanding section 315(a)(4), a 
        State committee of a political party shall not transfer any 
        funds from the committee's State Party Grassroots Fund to any 
        other State Party Grassroots Fund or to any other political 
        committee, except as provided in paragraph (2).
            ``(2) Exception.--A committee of a political party may 
        transfer funds from the committee's State Party Grassroots Fund 
        to a district or local committee of the same political party in 
        the same State if the district or local committee--
                    ``(A) has established a separate segregated fund 
                for the purposes described in subsection (d); and
                    ``(B) uses the transferred funds solely for those 
                purposes.
    ``(c) Amounts Received by Grassroots Funds From State and Local 
Candidate Committees.--
            ``(1) In general.--Any amount received by a State Party 
        Grassroots Fund from a State or local candidate committee for 
        expenditures described in subsection (d) that are for the 
        benefit of that candidate shall be treated as meeting the 
        requirements of 324(b)(1) and section 304(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), (ix), and (xi) 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.
    ``(e) 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.''.

SEC. 403. REPORTING REQUIREMENTS.

    (a) Reporting Requirements.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 303(b)) is 
amended by adding at the end the following:
    ``(f) Political Committees.--
            ``(1) National and congressional political committees.--The 
        national committee of a political party, any congressional 
        campaign committee of a political party, and any subordinate 
        committee of either, shall report all receipts and 
disbursements during the reporting period, whether or not in connection 
with an election for Federal office.
            ``(2) Other political committees to which section 324 
        applies.--A political committee to which section 324(b)(1) 
        applies shall report all receipts and disbursements made for 
        activities described in section 324(b) (1) and (2)(A)(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 
        the 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 
        as reports are 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:
    ``(g) 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 that 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:
                    ``(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 striking ``operating expense'' and inserting 
        ``operating expenditure, and the election to which the 
        operating expenditure relates''.

   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

SEC. 501. APPOINTMENT AND TERMS OF COMMISSIONERS.

    (a) In General.--Section 306(a) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 437c(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) There is established'' and 
                inserting ``(1)(A) There is established'';
                    (B) by striking the second sentence and inserting 
                the following:
    ``(B) Composition of commission.--The Commission is composed of 6 
members appointed by the President, by and with the advice and consent 
of the Senate, and 1 member appointed by the President from among 
persons recommended by the Commission as provided in subparagraph 
(D).'';
                    (C) by striking ``No more than'' and inserting the 
                following:
    ``(C) Party affiliation.--Not more than''; and
                    (D) by adding at the end the following:
    ``(D) Nomination by commission of additional member.--
            ``(i) In general.--The members of the Commission shall 
        recommend to the President, by a vote of 4 members, 3 persons 
        for the appointment to the Commission.
            ``(ii) Vacancy.--On vacancy of the position of the member 
        appointed under this subparagraph, a member shall be appointed 
        to fill the vacancy in the same manner as provided in clause 
        (i).'';
            (2) in paragraph (2)(A) by striking ``terms of 6 years'' 
        and inserting ``not more than 1 term of 6 years;''; and
            (3) in paragraphs (3) and (4), by striking ``(other than 
        the Secretary of the Senate and the Clerk of the House of 
        Representatives)''.
    (b) Transition Rule.--Not later than 90 days after the date of 
enactment of this Act, the Commission shall recommend persons for 
appointment under section 306(a)(1)(D) of the Federal Election Campaign 
Act of 1971, as added by section 501(a)(1)(D) of this Act.

SEC. 502. AUDITS.

    (a) Random Audit.--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), 
                after every primary, general, and runoff election, the 
                Commission may conduct random audits and investigations 
                to ensure voluntary compliance with this Act.
                    ``(B) Selection of subjects.--The subjects of 
                audits and investigations under this paragraph shall be 
                selected on the basis of impartial criteria established 
                by a vote of at least 4 members of the Commission.
                    ``(C) Exclusion.--This paragraph does not apply to 
                an authorized committee of a candidate for President or 
                Vice President subject to audit under chapter 95 or 96 
                of the Internal Revenue Code of 1986.''.

SEC. 503. AUTHORITY TO SEEK INJUNCTION.

    Section 309(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)) is amended--
            (1) by adding at the end the following:
    ``(13) Authority to seek injunction.--
            ``(A) In general.--If, at any time in a proceeding 
        described in paragraph (1), (2), (3), or (4), the Commission 
        believes that--
                    ``(i) there is a substantial likelihood that a 
                violation of this Act is occurring or is about to 
                occur;
                    ``(ii) the failure to act expeditiously will result 
                in irreparable harm to a party affected by the 
                potential violation;
                    ``(iii) expeditious action will not cause undue 
                harm or prejudice to the interests of others; and
                    ``(iv) the public interest would be best served by 
                the issuance of an injunction;
        the Commission may initiate a civil action for a temporary 
        restraining order or preliminary injunction pending the outcome 
        of proceedings under paragraphs (1), (2), (3), and (4).
            ``(B) Venue.--An action under subparagraph (A) shall be 
        brought in the United States district court for the district in 
        which the defendant resides, transacts business, or may be 
        found, or in which the violation is occurring, has occurred, or 
        is about to occur.'';
            (2) in paragraph (7), by striking ``(5) or (6)'' and 
        inserting ``(5), (6), or (13)''; and
            (3) in paragraph (11), by striking ``(6)'' and inserting 
        ``(6) or (13)''.

SEC. 504. STANDARD FOR INVESTIGATION.

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

SEC. 505. PETITION FOR CERTIORARI.

    Section 307(a)(6) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437d(a)) is amended by inserting ``(including a proceeding 
before the Supreme Court on certiorari)'' after ``appeal''.

SEC. 506. EXPEDITED PROCEDURES.

    Section 309(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)) (as amended by section 503) is amended by adding at the 
end the following:
            ``(14) Expedited procedure.--
                    ``(A) 60 days before a general election.--If the 
                complaint in a proceeding was filed within 60 days 
                before the date of a general election, the Commission 
                may take action described in this subparagraph.
                    ``(B) Resolution before an election.--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 clauses (ii), (iii), 
                and (iv) of paragraph (13)(A) 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) Meritless complaints.--If the Commission 
                determines, on the basis of facts alleged in the 
                complaint and other facts available to the Commission, 
                that the complaint is clearly without merit, the 
                Commission may--
                            ``(i) order expedited proceedings, 
                        shortening the time periods for proceedings 
                        under paragraphs (1), (2), (3), and (4) as 
                        necessary to allow the matter to be resolved in 
                        sufficient time before the election to avoid 
                        harm or prejudice to the interests of the 
                        parties; or
                            ``(ii) if the Commission determines that 
                        there is insufficient time to conduct 
                        proceedings before the election, summarily 
                        dismiss the complaint.''.

SEC. 507. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES.

    Section 302(g) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(g)) is amended by adding at the end the following:
            ``(5) Filing of reports using computers and facsimile 
        machines.--
                    ``(A) Computers.--The Commission, in consultation 
                with the Secretary of the Senate and the Clerk of the 
                House of Representatives, shall issue a regulation 
                under which a person required to file a designation, 
                statement, or report under this Act--
                            ``(i) is required to maintain and file the 
                        designation, statement, or report for any 
                        calendar year in electronic form accessible by 
                        computers if the person has, or has reason to 
                        expect to have, aggregate contributions or 
                        expenditures in excess of a threshold amount 
                        determined by the Commission; and
                            ``(ii) may maintain and file the 
                        designation, statement, or report in that 
                        manner if not required to do so under a 
                        regulation under clause (i).
                    ``(B) Facsimile machines.--The Commission, in 
                consultation with the Secretary of the Senate and the 
                Clerk of the House of Representatives, shall prescribe 
                a regulation that allows a person to file a 
                designation, statement, or report required by this Act 
                through the use of a facsimile machine.
                    ``(C) Verification.--In a regulation under this 
                paragraph, the Commission shall provide methods (other 
                than requiring a signature on the document being filed) 
                for verifying a designation, statement, or report. 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.
                    ``(D) Compatibility of systems.--The Secretary of 
                the Senate and the Clerk of the House of 
                Representatives shall ensure that any computer or other 
                system that the Secretary or the Clerk may develop and 
                maintain to receive designations, statements, and 
                reports in the forms required or permitted under this 
                paragraph is compatible with any system that the 
                Commission may develop and maintain.''.

SEC. 508. POWER TO ISSUE SUBPOENA WITHOUT SIGNATURE OF CHAIRPERSON.

    Section 307(a)(3) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437d(a)(3)) is amended by striking ``, signed by the chairman or 
the vice chairman,''.

SEC. 509. 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''.

                        TITLE VI--EFFECTIVE DATE

SEC. 601. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect on January 
1, 1998.
                                 <all>