[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 982 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 982

             Entitled ``Clean Money, Clean Elections Act.''


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 6, 1999

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

_______________________________________________________________________

                                 A BILL


 
             Entitled ``Clean Money, Clean Elections Act.''

    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

Sec. 401. Soft money of political parties.
Sec. 402. State party grassroots funds.
Sec. 403. Reporting requirements.
Sec. 404. Soft money of persons other than political parties.
   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; 
                            filing by Senate candidates with 
                            Commission.
Sec. 508. Power to issue subpoena without signature of chairperson.
Sec. 509. Prohibition of contributions by individuals not qualified to 
                            vote.
Sec. 510. Penalties for violations.
                        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 1999.
            ``(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) subparagraph (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 described in 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 described in 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 the private money candidate is 
                seeking, 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 the private money candidate is 
                seeking, 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 time 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, as added by section 102 of this Act), 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, as added by 
        section 102 of this Act).

      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; and
            (4) by adding at the end the following:
            ``(2) Senate elections.--
                    ``(A) Independent expenditures more than 20 days 
                before an election.--
                            ``(i) In general.--If, more than 20 days 
                        before the date of an election for the office 
                        of Senator, a person makes or obligates to make 
                        independent expenditures in an aggregate amount 
                        exceeding $1,000 during an election period (as 
                        defined in section 501) in support of, or in 
                        opposition to, a candidate for the office, such 
                        person shall file with the Commission a 
                        statement containing the information described 
                        in clause (ii) not later than 48 hours after 
                        making or obligating to make such expenditures.
                            ``(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.--If, during the 20 days 
                preceding the date of an election for the office of 
                Senator, a person makes or obligates to make 
                independent expenditures in an aggregate amount 
                exceeding $500 in support of, or in opposition to, a 
                candidate for the office, such person shall file with 
                the Commission a statement setting forth the amount of 
                each such expenditure not later than 24 hours after 
                making or obligating to make such expenditures.
                    ``(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 
                        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 time 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) for a communication that is express 
                        advocacy; and
                            ``(ii) that is not coordinated activity or 
                        is not provided in coordination with a 
                        candidate or a candidate's agent or a person 
                        who is coordinating with a candidate or a 
                        candidate's agent.
                    ``(B) Express advocacy.--Except as provided in 
                subparagraph (C), 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 advocates the election or defeat 
                of a clearly identified candidate by--
                            ``(i) containing a phrase such as `vote 
                        for', `re-elect', `support', `cast your ballot 
                        for', `(name of candidate) for Congress', 
                        `(name of candidate) in (year)', `vote 
                        against', `defeat', `reject';
                            ``(ii) containing 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
                            ``(iii) referring to a clearly identified 
                        candidate in a paid advertisement that is 
                        broadcast through radio or television but only 
                        if the communication--
                                    ``(I) is made not more than 60 days 
                                before the date of a general election; 
                                and
                                    ``(II) involves aggregate 
                                disbursements of $5,000 or more.
                    ``(C) Voting record and voting guide exception.--
                The term `express advocacy' does not include a 
                communication which is in printed form or posted on the 
                Internet that--
                            ``(i) presents information solely about the 
                        voting record or position on a campaign issue 
                        of 1 or more candidates (including any 
                        statement by the sponsor of the voting record 
                        or voting guide of its agreement or 
                        disagreement with the record or position of a 
                        candidate), so long as the voting record or 
                        voting guide when taken as a whole does not 
                        express unmistakable and unambiguous support 
                        for or opposition to one or more clearly 
                        identified candidates;
                            ``(ii) is not coordinated activity or is 
                        not made in coordination with a candidate, 
                        political party, or agent of the candidate or 
                        party, or a candidate's agent or a person who 
                        is coordinating with a candidate or a 
                        candidate's agent, except that nothing in this 
                        clause may be construed to prevent the sponsor 
                        of the voting guide from directing questions in 
                        writing to a candidate about the candidate's 
                        position on issues for purposes of preparing a 
                        voter guide or to prevent the candidate from 
                        responding in writing to such questions; and
                            ``(iii) does not contain a phrase such as 
                        `vote for', `re-elect', `support', `cast your 
                        ballot for', `(name of candidate) for 
                        Congress', `(name of candidate) in (year)', 
                        `vote against', `defeat', or `reject', or a 
                        campaign slogan or words that in context can 
                        have no reasonable meaning other than to urge 
                        the election or defeat of one or more clearly 
                        identified candidates.''.
    (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)--
                    (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 a candidate for 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 of the committee, 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 which constitutes a coordinated 
                activity described in section 301(8)(C);
                    ``(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) Definition of Coordination With Candidates.--
            (1) Section 301(8).--Section 301(8) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``or'' at the end of clause 
                        (i);
                            (ii) by striking the period at the end of 
                        clause (ii) and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) any coordinated activity (as 
                        defined in subparagraph (C)).''; and
                    (B) by adding at the end the following:
                    ``(C) The term `coordinated activity' means 
                anything of value provided by a person in coordination 
                with a candidate, an agent of the candidate, or the 
                political party of the candidate or its agent for the 
                purpose of influencing a Federal election (regardless 
                of whether the value being provided is a communication 
                that is express advocacy) in which such candidate seeks 
                nomination or election to Federal office, and includes 
                any of the following:
                            ``(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, the political party of the 
                        candidate, or an agent acting on behalf of a 
                        candidate, authorized committee, or the 
                        political party of the candidate.
                            ``(ii) A payment made by a person for the 
                        production, 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 by a person 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 the intent that the payment be 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 policymaking or advisory position with 
                        the candidate's campaign or has participated in 
                        formal strategic or formal policymaking 
                        discussions (other than any discussion treated 
                        as a lobbying contact under the Lobbying 
                        Disclosure Act of 1995 in the case of a 
                        candidate holding Federal office or as a 
                        similar lobbying activity in the case of a 
                        candidate holding State or other elective 
                        office) with the candidate's campaign relating 
                        to the candidate's pursuit of nomination for 
                        election, or election, to Federal office, in 
                        the same election cycle as the election cycle 
                        in which the payment is made.
                            ``(vi) A payment made by a person if, in 
                        the same election cycle, the person making the 
                        payment retains the professional services of 
                        any person that has provided or is providing 
                        campaign-related services in the same election 
                        cycle to a candidate (including services 
                        provided through a political committee of the 
                        candidate's political party) 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 person 
                        retained is retained to work on activities 
                        relating to that candidate's campaign.
                            ``(vii) A payment made by a person who has 
                        directly participated in fundraising activities 
                        with the candidate or in the solicitation or 
                        receipt of contributions on behalf of the 
                        candidate.
                            ``(viii) A payment made by a person who has 
                        communicated with the candidate  or an agent of 
the candidate (including a communication through a political committee 
of the candidate's political party) after the declaration of candidacy 
(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.
                            ``(ix) The provision of in-kind 
                        professional services or polling data 
                        (including services or data provided through a 
                        political committee of the candidate's 
                        political party) to the candidate or 
                        candidate's agent.
                            ``(x) A payment made by a person who has 
                        engaged in a coordinated activity with a 
                        candidate described in clauses (i) through (ix) 
                        for a communication that clearly refers to the 
                        candidate or the candidate's opponent and is 
                        for the purpose of influencing that 
                        candidates's election (regardless of whether 
                        the communication is express advocacy).
                    ``(D) For purposes of subparagraph (C), the term 
                `professional services' means polling, media advice, 
                fundraising, campaign research or direct mail (except 
                for mailhouse services solely for the distribution of 
                voter guides as defined in section 301(17)(C)) services 
                in support of a candidate's pursuit of nomination for 
election, or election, to Federal office.
                    ``(E) For purposes of subparagraph (C), all 
                political committees established and maintained by a 
                national political party (including all congressional 
                campaign committees) and all political committees 
                established and maintained by a State political party 
                (including any subordinate committee of a State 
                committee) shall be considered to be a single political 
                committee.''.
            (2) Section 315(a)(7).--Section 315(a)(7) (2 U.S.C. 
        441a(a)(7)) is amended by striking subparagraph (B) and 
        inserting the following:
                    ``(B) a coordinated activity, as described in 
                section 301(8)(C), shall be considered to be a 
                contribution to the candidate, and in the case of a 
                limitation on expenditures, shall be treated as an 
                expenditure by the candidate.''.
    (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 available 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 
paragraph (1) or (2) of subsection (a) shall include, in addition to 
the requirements of those paragraphs, 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 other requirements 
of this section, 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 other 
requirements of this section, 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

SEC. 401. SOFT MONEY OF POLITICAL PARTIES.

    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. 323. SOFT MONEY OF POLITICAL PARTIES.

    (a) National Committees.--
            ``(1) In general.--A national committee of a political 
        party (including a national congressional campaign committee of 
        a political party) and any officers or agents of such party 
        committees, shall not solicit, receive, or direct to another 
        person a contribution, donation, or transfer of funds, or spend 
        any funds, that are not subject to the limitations, 
        prohibitions, and reporting requirements of this Act.
            ``(2) Applicability.--This subsection shall apply to an 
        entity that is directly or indirectly established, financed, 
        maintained, or controlled by a national committee of a 
        political party (including a national congressional campaign 
        committee of a political party), or an entity acting on behalf 
        of a national committee, and an officer or agent acting on 
behalf of any such committee or entity.
    ``(b) State, District, and Local Committees.--
            ``(1) In general.--An amount that is expended or disbursed 
        by a State, district, or local committee of a political party 
        (including an entity that is directly or indirectly 
        established, financed, maintained, or controlled by a State, 
        district, or local committee of a political party and an 
        officer or agent acting on behalf of such committee or entity) 
        for Federal election activity shall be made from funds subject 
        to the limitations, prohibitions, and reporting requirements of 
        this Act.
            ``(2) Federal election activity.--
                    ``(A) In general.--The term `Federal election 
                activity' means--
                            ``(i) voter registration activity during 
                        the period that begins on the date that is 120 
                        days before the date a regularly scheduled 
                        Federal election is held and ends on the date 
                        of the election;
                            ``(ii) voter identification, get-out-the-
                        vote activity, or generic campaign activity 
                        conducted in connection with an election in 
                        which a candidate for Federal office appears on 
                        the ballot (regardless of whether a candidate 
                        for State or local office also appears on the 
                        ballot); and
                            ``(iii) a communication that refers to a 
                        clearly identified candidate for Federal office 
                        (regardless of whether a candidate for State or 
                        local office is also mentioned or identified) 
                        and is made for the purpose of influencing a 
                        Federal election (regardless of whether the 
                        communication is express advocacy).
                    ``(B) Excluded activity.--The term `Federal 
                election activity' does not include an amount expended 
                or disbursed by a State, district, or local committee 
                of a political party for--
                            ``(i) campaign activity conducted solely on 
                        behalf of a clearly identified candidate for 
                        State or local office, provided the campaign 
                        activity is not a Federal election activity 
                        described in subparagraph (A);
                            ``(ii) a contribution to a candidate for 
                        State or local office, provided the 
                        contribution is not designated or used to pay 
                        for a Federal election activity described in 
                        subparagraph (A);
                            ``(iii) the costs of a State, district, or 
                        local political convention;
                            ``(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;
                            ``(v) 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 an 
                        individual who spends more than 20 percent of 
                        the individual's time on Federal election 
                        activity) as determined by a regulation 
                        promulgated by the Commission to determine the 
                        non-Federal share of a State, district, or 
                        local party committee's administrative and 
                        overhead expenses; and
                            ``(vi) the cost of constructing or 
                        purchasing an office facility or equipment for 
                        a State, district or local committee.
    ``(c) Fundraising Costs.--An amount spent by a national, State, 
district, or local committee of a political party, by an entity that is 
established, financed, maintained, or controlled by a national, State, 
district, or local committee of a political party, or by an agent or 
officer of any such committee or entity, to raise funds that are used, 
in whole or in part, to pay the costs of a Federal election activity 
shall be made from funds subject to the limitations, prohibitions, and 
reporting requirements of this Act.
    ``(d) Tax-Exempt Organizations.--A national, State, district, or 
local committee of a political party (including a national 
congressional campaign committee of a political party), an entity that 
is directly or indirectly established, financed, maintained, or 
controlled by any such national, State, district, or local committee or 
its agent, and an officer or agent acting on behalf of any such party 
committee or entity, shall not solicit any funds for, or make or direct 
any donations to, an organization that is described in section 501(c) 
of the Internal Revenue Code of 1986 and exempt from taxation under 
section 501(a) of such Code (or has submitted an application to the 
Secretary of the Treasury for determination of tax-exemption under such 
section).
    ``(e) Candidates.--
            ``(1) In general.--A candidate, individual holding Federal 
        office, agent of a candidate or individual holding Federal 
        office, or an entity directly or indirectly established, 
        financed, maintained or controlled by or acting on behalf of 
        one or more candidates or individuals holding Federal office, 
        shall not--
                    ``(A) solicit, receive, direct, transfer, or spend 
                funds in connection with an election for Federal 
                office, including funds for any Federal election 
                activity, unless the funds are subject to the 
                limitations, prohibitions, and reporting requirements 
                of this Act; or
                    ``(B) solicit, receive, direct, transfer, or spend 
                funds in connection with any election other than an 
                election for Federal office or disburse funds in 
                connection with such an election unless the funds--
                            ``(i) are not in excess of the amounts 
                        permitted with respect to contributions to 
                        candidates and political committees under 
                        paragraphs (1) and (2) of section 315(a); and
                            ``(ii) are not from sources prohibited by 
                        this Act from making contributions with respect 
                        to an election for Federal office.
            ``(2) State law.--Paragraph (1) does not apply to the 
        solicitation, receipt, or spending of funds by an individual 
who is a candidate for a State or local office in connection with such 
election for State or local office if the solicitation, receipt, or 
spending of funds is permitted under State law for any activity other 
than a Federal election activity.
            ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
        candidate may attend, speak, or be a featured guest at a 
        fundraising event for a State, district, or local committee of 
        a political party.''.

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) Generic campaign activity.--The term `generic 
        campaign activity' means an activity that promotes a political 
        party and does not promote a candidate or non-Federal 
        candidate.
            ``(21) State party grassroots fund.--The term `State Party 
        Grassroots Fund' means a separate segregated fund established 
        and maintained by a State committee of a political party solely 
        for purposes of making expenditures and other disbursements 
        described in section 324(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. 324. 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 323(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 paragraphs (1)(A) and (2)(A) of section 
                315(a); 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 323 
        applies.--A political committee to which section 323(b)(1) 
        applies shall report all receipts and disbursements made for 
        activities described in paragraphs (1) and (2)(A)(iii) of 
        section 323(b).
            ``(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)(A) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(8)(A)) 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''.

SEC. 404. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) (as amended by section 403(c)) is amended by adding at the end the 
following:
    ``(h) Disbursements of Persons Other Than Political Parties.--
            ``(1) In general.--A person, other than a political 
        committee of a political party or a person described in section 
        501(d) of the Internal Revenue Code of 1986, that makes an 
        aggregate amount of disbursements in excess of $50,000 during a 
        calendar year for activities described in paragraph (2) shall 
        file a statement with the Commission--
                    ``(A) on a monthly basis as described in subsection 
                (a)(4)(B); or
                    ``(B) in the case of disbursements that are made 
                within 20 days of an election, within 24 hours after 
                the disbursements are made.
            ``(2) Activity.--The activity described in this paragraph 
        is--
                    ``(A) Federal election activity (as defined in 
                section 323(b)(2));
                    ``(B) an activity described in section 316(b)(2)(A) 
                that expresses support for or opposition to a candidate 
                for Federal office or a political party; and
                    ``(C) an activity described in subparagraph (B) or 
                (C) of section 316(b)(2).
            ``(3) Applicability.--This subsection does not apply to--
                    ``(A) a candidate or a candidate's authorized 
                committees; or
                    ``(B) an independent expenditure.
            ``(4) Contents.--A statement under this section shall 
        contain such information about the disbursements made during 
        the reporting period as the Commission shall prescribe, 
        including--
                    ``(A) the aggregate amount of disbursements made;
                    ``(B) the name and address of the person or entity 
                to whom a disbursement is made in an aggregate amount 
                in excess of $200;
                    ``(C) the date made, amount, and purpose of the 
                disbursement; and
                    ``(D) if applicable, whether the disbursement was 
                in support of, or in opposition to, a candidate or a 
                political party, and the name of the candidate or the 
                political party.''.

   TITLE 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).''; and
            (2) 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 subsection (a)(1)(D).

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; 
              FILING BY SENATE CANDIDATES WITH COMMISSION.

    (a) Use of 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.
                    ``(E) Internet access.--The Commission shall make a 
                designation, statement, report, or notification that is 
                filed electronically with the Commission accessible to 
                the public on the Internet not later than 24 hours 
                after the designation, statement, report, or 
                notification is received by the Commission.''.
    (b) Senate Candidates File With Commission.--Title III of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is 
amended--
            (1) in section 302, by striking subsection (g) and 
        inserting the following:
    ``(g) Filing With the Commission.--All designations, statements, 
and reports required to be filed under this Act shall be filed with the 
Commission.''; and
            (2) in section 304--
                    (A) in subsection (a)(6)(A), by striking ``the 
                Secretary or''; and
                    (B) in the matter following subsection (c)(2), by 
                striking ``the Secretary or''.

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''.

SEC. 510. PENALTIES FOR VIOLATIONS.

    (a) Increased Penalties.--Section 309(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--
            (1) in paragraphs (5)(A), (6)(A), and (6)(B), by striking 
        ``$5,000'' and inserting ``$10,000''; and
            (2) in paragraphs (5)(B) and (6)(C), by striking ``$10,000 
        or an amount equal to 200 percent'' and inserting ``$20,000 or 
        an amount equal to 300 percent''.
    (b) Equitable Remedies.--Section 309(a)(5)(A) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is amended by 
striking the period at the end and inserting ``, and may include 
equitable remedies or penalties, including disgorgement of funds to the 
Treasury or community service requirements (including requirements to 
participate in public education programs).''.
    (c) Automatic Penalty for Late Filing.--Section 309(a) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)), as amended by 
section 506, is amended--
            (1) by adding at the end the following:
    ``(15) Penalty for Late Filing.--
            ``(A) In general.--
                    ``(i) Monetary penalties.--The Commission shall 
                establish a schedule of mandatory monetary penalties 
                that shall be imposed by the Commission for failure to 
                meet a time requirement for filing under section 304.
                    ``(ii) Required filing.--In addition to imposing a 
                penalty, the Commission may require a report that has 
                not been filed within the time requirements of section 
                304 to be filed by a specific date.
                    ``(iii) Procedure.--A penalty or filing requirement 
                imposed under this paragraph shall not be subject to 
                paragraph (1), (2), (3), (4), (5), or (12).
            ``(B) Filing an exception.--
                    ``(i) Time to file.--A political committee shall 
                have 30 days after the imposition of a penalty or 
                filing requirement by the Commission under this 
                paragraph in which to file an exception with the 
                Commission.
                    ``(ii) Time for commission to rule.--Within 30 days 
                after receiving an exception, the Commission shall make 
                a determination that is a final agency action subject 
                to exclusive review by the United States Court of 
                Appeals for the District of Columbia Circuit under 
                section 706 of title 5, United States Code, upon 
                petition filed in that court by the political committee 
                or treasurer that is the subject of the agency action, 
                if the petition is filed within 30 days after the date 
                of the Commission action for which review is sought.'';
            (2) in paragraph (5)(D)--
                    (A) by inserting after the first sentence the 
                following: ``In any case in which a penalty or filing 
                requirement imposed on a political committee or 
                treasurer under paragraph (15) has not been satisfied, 
                the Commission may institute a civil action for 
                enforcement under paragraph (6)(A).''; and
                    (B) by inserting before the period at the end of 
                the last sentence the following: ``or has failed to pay 
                a penalty or meet a filing requirement imposed under 
                paragraph (15)''; and
            (3) in paragraph (6)(A), by striking ``paragraph (4)(A)'' 
        and inserting ``paragraph (4)(A) or (15)''.

                        TITLE VI--EFFECTIVE DATE

SEC. 601. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect on January 
1, 2000.

                                 <all>