[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4224 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4224

   To amend the Federal Election Campaign Act of 1971 to reform the 
 financing and conduct of campaigns for elections for Federal office, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2000

  Mr. Petri introduced the following bill; which was referred to the 
Committee on House Administration, and in addition to the Committee on 
   Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Election Campaign Act of 1971 to reform the 
 financing and conduct of campaigns for elections for Federal office, 
                        and for other purposes.

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

SECTION 1. DISCLOSURE AND REPORTS RELATING TO POLLING BY TELEPHONE OR 
              ELECTRONIC DEVICE.

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

``disclosure and reports relating to polling by telephone or electronic 
                                 device

    ``Sec. 323. (a) Disclosure to Respondents.--Any person who conducts 
a Federal election poll by telephone or electronic device shall 
disclose to each respondent the identity of the person paying the 
expenses of the poll. The disclosure shall be made at the end of the 
interview involved.
    ``(b) Reports to Commission.--In the case of any Federal election 
poll by telephone or electronic device--
            ``(1) if the results are not to be made public, the person 
        who conducts the poll shall report to the Commission the total 
        cost of the poll and all sources of funds for the poll; and
            ``(2) the person who conducts the poll shall report to the 
        Commission the total number of households contacted and include 
        with such report a copy of the poll questions.
    ``(c) Federal Election Poll Defined.--As used in this section, the 
term `Federal election poll' means a survey--
            ``(1) in which the respondent is asked to state opinions or 
        views regarding a future election for Federal office; and
            ``(2) in which more than 1,200 households are surveyed.''.

SEC. 2. TAX CREDIT FOR CERTAIN POLITICAL CONTRIBUTIONS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25A the 
following new section:

``SEC. 25B. CREDIT FOR POLITICAL CONTRIBUTIONS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to one-half of all political 
contributions, and all newsletter fund contributions, paid by the 
taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by subsection (a) 
        shall not exceed $100 ($200 in the case of a joint return).
            ``(2) Verification.--The credit allowed by subsection (a) 
        shall be allowed, with respect to any political contribution or 
        newsletter fund contribution, only if such contribution is 
        verified in such manner as the Secretary shall prescribe by 
        regulation.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Political contribution.--The term `political 
        contribution' means a contribution or gift of money, or the 
        fair market value of a contribution or gift of property, to--
                    ``(A) an individual who is a candidate for 
                nomination or election to any Federal, State, or local 
                elective public office in any primary, general, or 
                special election, for use by such individual to further 
                the candidacy of the individual for nomination or 
                election to such office,
                    ``(B) any committee, association, or organization 
                (whether or not incorporated) organized and operated 
                exclusively for the purposes of influencing, or 
                attempting to influence, the nomination or election of 
                one or more individuals who are candidates for 
                nomination or election to any Federal, State, or local 
                elective public office, for use by such committee, 
                association, or organization to further the candidacy 
                of such individual or individuals for nomination or 
                election to such office,
                    ``(C) the national committee of a national 
                political party,
                    ``(D) the State committee of a national political 
                party as designated by the national committee of such 
                party, or
                    ``(E) a local committee of a national political 
                party as designated by the State committee of such 
                party designated under subparagraph (D).
            ``(2) Newsletter fund.--The term `newsletter fund' means a 
        fund described in section 527(g)(1).
            ``(3) Candidate.--The term `candidate' means, with respect 
        to any Federal, State, or local elective public office, an 
        individual who--
                    ``(A) publicly announces before the close of the 
                calendar year following the calendar year in which the 
                political contribution is made that the individual is a 
                candidate for nomination or election to such office; 
                and
                    ``(B) meets the qualifications prescribed by law to 
                hold such office.
            ``(4) National political party.--The term `national 
        political party' means--
                    ``(A) in the case of political contributions made 
                during a taxable year of the taxpayer in which the 
                electors of President and Vice President are chosen, a 
                political party presenting candidates or electors for 
                such offices on the official election ballot of ten or 
                more States; or
                    ``(B) in the case of political contributions made 
                during any other taxable year of the taxpayer, a 
                political party which met the qualifications described 
                in subparagraph (A) in the last preceding election of a 
                President and Vice President.
            ``(5) State and local.--The term `State' means the various 
        States and the District of Columbia; and the term `local' means 
        a political subdivision or part thereof, or two or more 
        political subdivisions or parts thereof, of a State.''.
    ``(d) Cross References.--

                                ``For transfer of appreciated property 
to a political organization, see section 84.
                                ``For certain indirect contributions to 
political parties, see section 276.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code (relating to 
nonrefundable personal credits) is amended by inserting after the item 
relating to section 25A the following new item:

                              ``Sec. 25B. Credit for political 
                                        contributions.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31 of the calendar year 
in which this Act is enacted.

SEC. 3. PRESIDENTIAL CAMPAIGN FUND.

    (a) Repeal of Provisions Concerning Presidential Campaign Fund.--
The following provisions of the Internal Revenue Code of 1986 are 
hereby repealed:
            (1) Part VIII of subchapter A of chapter 61 of subtitle F 
        of such Code (relating to designation of income tax payments to 
        Presidential Election Campaign Fund).
            (2) Subtitle H (relating to financing of Presidential 
        election campaigns).
    (b) Conforming Amendments.--
            (1) Table of parts.--The table of parts of subchapter A of 
        chapter 61 of subtitle F of such Code is amended by striking 
        the item relating to part VIII.
            (2) Table of subtitles.--The table of subtitles of such 
        Code is amended by striking the item relating to subtitle H.
    (c) Effective Dates.--
            (1) Designation of income tax payments to fund.--The 
        amendment made by subsection (a)(1) applies to taxable years 
        beginning after December 31, 1999.
            (2) Financing of presidential election campaigns.--The 
        amendment made by subsection (a)(2) shall take effect on the 
        date that is 2 years after the date of the enactment of this 
        Act, except that no payment may be made from the Presidential 
        Election Campaign Fund or the Presidential Primary Matching 
        Payment Account with respect to any Presidential election 
        occurring more than 2 years after the date of the enactment of 
        this Act.
    (d) Amounts Remaining in Funds.--The Secretary of the Treasury 
shall deposit into the Treasury of the United States as miscellaneous 
receipts any amounts that remain, on the date that is 2 years after the 
date of the enactment of this Act, in the Presidential Election 
Campaign Fund or the Presidential Primary Matching Payment Account.

SEC. 4. REQUIRING MAJORITY OF SENATE AND HOUSE OF REPRESENTATIVES 
              CANDIDATE FUNDS TO COME FROM INDIVIDUALS RESIDING IN THE 
              STATE IN WHICH THE ELECTION IS HELD.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a) is amended by adding at the end the following 
new subsection:
    ``(i)(1) A candidate for the office of Senator or Representative 
in, or Delegate or Resident Commissioner to, the Congress may not 
accept contributions with respect to an election cycle from persons 
other than local individual residents totaling in excess of the total 
of contributions accepted from local individual residents (as 
determined on the basis of the most recent information included in 
reports pursuant to section 304(d).
    ``(2) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, contributions of the 
candidate's personal funds shall be subject to the following rules:
            ``(A) To the extent that the amount of the contribution 
        does not exceed the limitation on contributions made by an 
        individual under subsection (a)(1)(A), such contribution shall 
        be treated as any other contribution.
            ``(B) The portion (if any) of the contribution which 
        exceeds the limitation on contributions which may be made by an 
        individual under subsection (a)(1)(A) shall be allocated in 
        accordance with paragraph (8).
    ``(3) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, contributions from a 
political party or a political party committee shall be allocated in 
accordance with paragraph (8).
    ``(4) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, any funds remaining in the 
candidate's campaign account after the filing of the post-general 
election report under section 304(a)(2)(A)(ii) for the most recent 
general election shall be allocated in accordance with paragraph (8).
    ``(5) In determining the amount of contributions accepted by a 
candidate for purposes of this subsection, any contributions accepted 
pursuant to subsection (j) which are from persons other than local 
individual residents shall be allocated in accordance with paragraph 
(8).
    ``(6)(A) Any candidate who accepts contributions that exceed the 
limitation under this subsection, as determined on the basis of 
information included in reports pursuant to section 304(d), shall pay 
to the Commission at the time of the filing of the report which 
contains the information, for deposit in the Treasury, an amount equal 
to 3 times the amount of the excess contributions (or, in the case of a 
candidate described in subparagraph (C), an amount equal to 5 times the 
amount of the excess contributions plus a civil penalty in an amount 
determined by the Commission).
    ``(B) Any amounts paid by a candidate under this paragraph shall be 
paid from contributions subject to the limitations and prohibitions of 
this title, including the limitation under this subsection.
    ``(C) A candidate described in this subparagraph is a candidate who 
accepts contributions that exceed the limitation under this subsection 
as of the last day of the period ending on the 20th day before an 
election or any period ending after such 20th day and before or on the 
20th day after such election.
    ``(7) As used in this subsection, the term `local individual 
resident' means an individual who resides in the State in which the 
election involved is held.
    ``(8) For purposes of this subsection, any amounts allocated in 
accordance with this paragraph shall be allocated as follows:
            ``(A) 50 percent of such amounts shall be deemed to be 
        contributions from local individual residents.
            ``(B) 50 percent of such amounts shall be deemed to be 
        contributions from persons other than local individual 
        residents.''.
    (b) Reporting Requirements.--Section 304 of such Act (2 U.S.C. 434) 
is amended by adding at the end the following new subsection:
    ``(d) Each principal campaign committee of a candidate for the 
Senate or the House of Representatives shall include the following 
information in reports filed under subsection (a)(2) and subsection 
(a)(6)(A):
            ``(1) With respect to each report filed under such 
        subsection--
                    ``(A) the total contributions received by the 
                committee with respect to the election cycle involved 
                from local individual residents (as defined in section 
                315(i)(7)), as of the last day of the period covered by 
                the report;
                    ``(B) the total contributions received by the 
                committee with respect to the election cycle involved 
                which are not from local individual residents, as of 
                the last day of the period covered by the report; and
                    ``(C) a certification as to whether the 
                contributions reported comply with the limitation under 
                section 315(i), as of the last day of the period 
                covered by the report.
            ``(2) In the case of the first report filed under such 
        subsection which covers the period which begins 19 days before 
        an election and ends 20 days after the election--
                    ``(A) the total contributions received by the 
                committee with respect to the election cycle involved 
                from local individual residents (as defined in section 
                315(i)(7)), as of the last day of such period;
                    ``(B) the total contributions received by the 
                committee with respect to the election cycle involved 
                which are not from local individual residents, as of 
                the last day of such period; and
                    ``(C) a certification as to whether the 
                contributions reported comply with the limitation under 
                section 315(i), as of the last day of such period.''.

SEC. 5. PROHIBITING BUNDLING OF CONTRIBUTIONS TO CANDIDATES BY 
              POLITICAL ACTION COMMITTEES AND LOBBYISTS.

    Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b) is amended by adding at the end the following new subsection:
    ``(c)(1) No political action committee or person required to 
register under the Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et 
seq.) may act as an intermediary or conduit with respect to a 
contribution to a candidate for Federal office.
    ``(2) In this subsection, the term `political action committee' 
means any political committee which is not--
            ``(A) the principal campaign committee of a candidate; or
            ``(B) a political party committee.''.

SEC. 6. MODIFICATION OF LIMITATIONS ON CONTRIBUTIONS WHEN CANDIDATES 
              SPEND OR CONTRIBUTE LARGE AMOUNTS OF PERSONAL FUNDS.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a), as amended by section 4(a), is further amended 
by adding at the end the following new subsection:
    ``(j)(1) Notwithstanding subsection (a), if in a general election a 
House candidate makes expenditures of personal funds (including 
contributions by the candidate to the candidate's authorized campaign 
committee) in an amount in excess of the amount of the limitation 
established under subsection (a)(1)(A) and less than or equal to 
$150,000 (as reported under section 304(a)(2)(A)), a political party 
committee may make contributions to an opponent of the House candidate 
without regard to any limitation otherwise applicable to such 
contributions under subsection (a), except that the opponent may not 
accept aggregate contributions under this paragraph in an amount 
greater than the greatest amount of personal funds expended (including 
contributions to the candidate's authorized campaign committee) by any 
House candidate (other than such opponent) with respect to the election 
(as reported in a notification submitted under section 304(a)(6)(B)).
    ``(2) If a House candidate makes expenditures of personal funds 
(including contributions by the candidate to the candidate's authorized 
campaign committee) with respect to an election in an amount greater 
than $150,000 (as reported under section 304(a)(2)(A)), the following 
rules shall apply:
            ``(A) In the case of a general election, the limitations 
        under subsections (a)(1) and (a)(2) (insofar as such 
        limitations apply to political party committees and to 
        individuals) shall not apply to contributions to the candidate 
        or to any opponent of the candidate, except that neither the 
        candidate nor any opponent may accept aggregate contributions 
        under this subparagraph and paragraph (1) in an amount greater 
than the greatest amount of personal funds (including contributions to 
the candidate's authorized campaign committee) expended by any House 
candidate with respect to the election (as reported in a notification 
submitted under section 304(a)(6)(B)).
            ``(B) In the case of an election other than a general 
        election, the limitations under subsection (a)(1) (insofar as 
        such limitations apply to individuals) shall not apply to 
        contributions to the candidate or to any opponent of the 
        candidate, except that neither the candidate or any opponent 
        may accept aggregate contributions under this subparagraph in 
        an amount greater than the greatest amount of personal funds 
        (including contributions to the candidate's authorized campaign 
        committee) expended by any House candidate with respect to the 
        election (as reported in a notification submitted under section 
        304(a)(6)(B)).
    ``(3) In this subsection, the term `House candidate' means a 
candidate in an election for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress.''.
    (b) Notification of Expenditures of Personal Funds.--Section 
304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph:
    ``(B)(i) The principal campaign committee of a House candidate (as 
defined in section 315(j)(3)) shall submit the following notifications 
relating to expenditures of personal funds by such candidate (including 
contributions by the candidate to such committee):
            ``(I) A notification of the first such expenditure (or 
        contribution) by which the aggregate amount of personal funds 
        expended (or contributed) with respect to an election exceeds 
        the amount of the limitation established under section 
        315(a)(1)(A) for elections in the year involved.
            ``(II) A notification of each such expenditure (or 
        contribution) which, taken together with all such expenditures 
        (and contributions) in any amount not included in the most 
        recent report under this subparagraph, totals $5,000 or more.
            ``(III) A notification of the first such expenditure (or 
        contribution) by which the aggregate amount of personal funds 
        expended with respect to the election exceeds the level 
        applicable under section 315(j)(2) for elections in the year 
        involved.
    ``(ii) Each of the notifications submitted under clause (i)--
            ``(I) shall be submitted not later than 24 hours after the 
        expenditure or contribution which is the subject of the 
        notification is made;
            ``(II) shall include the name of the candidate, the office 
        sought by the candidate, and the date of the expenditure or 
        contribution and amount of the expenditure or contribution 
        involved; and
            ``(III) shall include the total amount of all such 
        expenditures and contributions made with respect to the same 
        election as of the date of expenditure or contribution which is 
        the subject of the notification.''.

SEC. 7. DEFINITION AMENDMENT.

    Paragraph (19) of section 301 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 431(19)) is amended to read as follows:
    ``(19) The term `expressly advocating' means that--
            ``(A) the qualifications, views, or fitness for office of 
        the candidate are discussed; or
            ``(B) a voter is urged to vote for or against the specified 
        candidate.''.

SEC. 8. REDUCTION IN LIMITATION AMOUNT APPLICABLE TO CONTRIBUTIONS BY 
              MULTICANDIDATE POLITICAL COMMITTEES TO CANDIDATES.

    Section 315(a)(2)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(2)(A)) is amended by striking ``$5,000'' and 
inserting ``$2,000''.

SEC. 9. EFFECTIVE DATE.

    Except as otherwise provided, the amendments made by this Act shall 
apply with respect to elections occurring after December 31, 2000.
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