[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1516 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1516

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2001

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

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Finance Improvement Act of 
2001''.

SEC. 2. EXPANDING REPORTING REQUIREMENTS FOR CERTAIN CONTRIBUTIONS.

    (a) Requiring Reporting of All Contributions of $200 or More Within 
10 Days of Receipt.--Section 304 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 434), as amended by section 502(a) of the Department 
of Transportation and Related Agencies Act, 2001 (as enacted into law 
by reference under section 101(a) of Public Law 106-346), is amended by 
adding at the end the following new subsection:
    ``(e)(1) Each political committee which receives a contribution of 
$200 or more shall notify the Commission of the contribution not later 
than 10 days after receipt, and shall include the identification of the 
contributor, the date of receipt and amount of the contribution, and 
(in the case of an authorized committee of a candidate) the name of the 
candidate and the office sought by the candidate.
    ``(2) The report required under this subsection shall be in 
addition to all other reports required under this Act.''.
    (b) Expanding Types of Contributions to Principal Campaign 
Committees Subject to Expedited Reporting.--Section 304(a)(6)(A) of 
such Act (2 U.S.C. 434(a)(6)(A)) is amended--
            (1) by striking ``$1,000'' and inserting ``$200''; and
            (2) by striking ``20th day'' and inserting ``90th day''.

SEC. 3. REQUIRING MAJORITY OF AMOUNT OF CONTRIBUTIONS ACCEPTED BY 
              CONGRESSIONAL CANDIDATES TO COME FROM IN-STATE RESIDENTS.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a) is amended by adding at the end the following 
new subsection:
    ``(i)(1) The total amount of contributions accepted with respect to 
an election by a candidate for the office of Senator or the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress from in-State individual residents shall be at least 50 
percent of the total amount of contributions accepted from all sources.
    ``(2) If a candidate in an election makes expenditures of personal 
funds (including contributions by the candidate or the candidate's 
spouse to the candidate's authorized campaign committee) in an amount 
in excess of $250,000, paragraph (1) shall not apply with respect to 
any opponent of the candidate in the election.
    ``(3) In determining the amount of contributions accepted by a 
candidate for purposes of paragraph (1), the amounts of any 
contributions made by a political committee of a political party shall 
be allocated as follows:
            ``(A) 50 percent of such amounts shall be deemed to be 
        contributions from in-State individual residents.
            ``(B) 50 percent of such amounts shall be deemed to be 
        contributions from persons other than in-State individual 
        residents.
    ``(4) As used in this subsection, the term `in-State individual 
resident' means an individual who resides in the State in which the 
election involved is held.''.
    (b) Reporting Requirements.--Section 304 of such Act (2 U.S.C. 
434), as amended by section 2(a), is further amended by adding at the 
end the following new subsection:
    ``(f)(1) Each principal campaign committee of a candidate for the 
Senate or the House of Representatives shall include the following 
information in the first report filed under subsection (a)(2) which 
covers the period which begins 19 days before an election and ends 20 
days after the election:
            ``(A) The total contributions received by the committee 
        with respect to the election involved from in-State individual 
        residents (as defined in section 315(i)(4)), as of the last day 
        of the period covered by the report.
            ``(B) The total contributions received by the committee 
        with respect to the election involved from all persons, as of 
        the last day of the period covered by the report.
    ``(2)(A) Each principal campaign committee of a candidate for the 
Senate or the House of Representatives shall submit a notification to 
the Commission of the first expenditure of personal funds (including 
contributions by the candidate or the candidate's spouse to the 
committee) by which the aggregate amount of personal funds expended (or 
contributed) with respect to the election exceeds $250,000.
    ``(B) Each notification under subparagraph (A)--
            ``(I) shall be submitted not later than 24 hours after the 
        expenditure or contribution which is the subject of the 
        notification is made; and
            ``(II) shall include the name of the candidate, the office 
        sought by the candidate, and the date of the expenditure or 
        contribution and amount of the expenditure or contribution 
        involved.''.
    (c) Penalty for Violation of Limits.--Section 309(d) of such Act (2 
U.S.C. 437g(d)) is amended by adding at the end the following new 
paragraph:
    ``(4)(A) Any candidate who knowingly and willfully accepts 
contributions in excess of any limitation provided under section 315(i) 
shall be fined an amount equal to the greater of 200 percent of the 
amount accepted in excess of the applicable limitation or (if 
applicable) the amount provided in paragraph (1)(A).
    ``(B) Interest shall be assessed against any portion of a fine 
imposed under subparagraph (A) which remains unpaid after the 
expiration of the 30-day period which begins on the date the fine is 
imposed.''.

SEC. 4. WAIVER OF ``BEST EFFORTS'' EXCEPTION FOR INFORMATION ON 
              IDENTIFICATION OF CONTRIBUTORS.

    Section 302(i) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(i)) is amended--
            (1) by striking ``(i) When the treasurer'' and inserting 
        ``(i)(1) Except as provided in paragraph (2), when the 
        treasurer''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) shall not apply with respect to information 
regarding the identification of any person who makes a contribution or 
contributions aggregating more than $200 during a calendar year (as 
required to be provided under subsection (c)(3)).''.

SEC. 5. LOWERING THRESHOLD FOR CASH CONTRIBUTIONS.

    Section 321 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441g) is amended by striking ``exceed $100'' and inserting ``exceed 
$20''.

SEC. 6. CONTRIBUTIONS BY DEPENDENTS NOT OF VOTING AGE.

    Section 315(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a) is amended by adding at the end the following new 
paragraph:
    ``(9)(A) For purposes of the limitations imposed by this section, 
any contribution made by a dependent minor shall be treated as follows:
            ``(i) If the dependent minor is the dependent of one other 
        individual, the contribution shall be treated as a contribution 
        made by such other individual.
            ``(ii) If the dependent minor is the dependent of another 
        individual and such other individual's spouse, the contribution 
        shall be allocated among such individuals in such manner as 
        such other individuals may determine.
    ``(B) In this paragraph, the term `dependent minor' means an 
individual who--
            ``(i) is a dependent of another individual; and
            ``(ii) has not, as of the time of making the contribution 
        involved, attained the legal age for voting in elections for 
        Federal office in the State in which such individual 
        resides.''.

SEC. 7. PROHIBITING NON-CITIZEN INDIVIDUALS FROM MAKING CONTRIBUTIONS 
              IN CONNECTION WITH FEDERAL ELECTIONS.

    Section 319(b)(2) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441e(b)(2)) is amended by striking ``and who is not lawfully 
admitted'' and all that follows and inserting a period.

SEC. 8. DISCLOSURE REQUIREMENTS FOR CERTAIN SOFT MONEY EXPENDITURES OF 
              POLITICAL PARTIES.

    (a) Transfers of Funds by National Political Parties.--Section 
304(b)(4) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434(b)(4)) is amended--
            (1) by striking ``and'' at the end of subparagraph (H);
            (2) by adding ``and'' at the end of subparagraph (I); and
            (3) by adding at the end the following new subparagraph:
                    ``(J) in the case of a political committee of a 
                national political party, all funds transferred to any 
                political committee of a State or local political 
                party, without regard to whether or not the funds are 
                otherwise treated as contributions or expenditures 
                under this title;''.
    (b) Disclosure by State Political Parties of Information Reported 
Under State Law.--Section 304 of such Act (2 U.S.C. 434), as amended by 
sections 2(a) and 3(b), is further amended by adding at the end the 
following new subsection:
    ``(g) If a political committee of a State political party is 
required under a State or local law, rule, or regulation to submit a 
report on its disbursements to an entity of the State or local 
government, the committee shall file a copy of the report with the 
Commission at the time it submits the report to such an entity.''.

SEC. 9. PROHIBITING INVOLUNTARY ASSESSMENT OF EMPLOYEE FUNDS FOR 
              POLITICAL ACTIVITIES.

    (a) In General.--Section 316 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441b) is amended by adding at the end the following 
new subsection:
    ``(c)(1) Except with the separate, prior, written, voluntary 
authorization of each individual, it shall be unlawful--
            ``(A) for any national bank or corporation described in 
        this section to collect from or assess its stockholders or 
        employees any dues, initiation fee, or other payment as a 
        condition of employment if any part of such dues, fee, or 
        payment will be used for political activity in which the 
        national bank or corporation is engaged; and
            ``(B) for any labor organization described in this section 
        to collect from or assess its members or nonmembers any dues, 
        initiation fee, or other payment if any part of such dues, fee, 
        or payment will be used for political activity in which the 
        labor organization is engaged.
    ``(2) An authorization described in paragraph (1) shall remain in 
effect until revoked and may be revoked at any time. Each entity 
collecting from or assessing amounts from an individual with an 
authorization in effect under such paragraph shall provide the 
individual with a statement that the individual may at any time revoke 
the authorization.
    ``(3) For purposes of this subsection, the term `political 
activity' means any activity carried out for the purpose of influencing 
(in whole or in part) any election for Federal office, influencing the 
consideration or outcome of any Federal legislation or the issuance or 
outcome of any Federal regulations, or educating individuals about 
candidates for election for Federal office or any Federal legislation, 
law, or regulations.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts collected or assessed on or after the date of the 
enactment of this Act.

SEC. 10. PROHIBITING AUTHORIZED COMMITTEES OF CANDIDATES FROM ACCEPTING 
              CONTRIBUTIONS FROM AUTHORIZED COMMITTEES OF OTHER 
              CANDIDATES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 3(a), is amended by adding at the end the 
following new subsection:
    ``(j)(1) Except as provided in paragraph (2), the authorized 
committee of a candidate for election for Federal office may not accept 
any contribution from an authorized committee of another candidate for 
election for Federal office.
    ``(2) Paragraph (1) does not apply to the transfer of funds between 
an authorized committee of a candidate for election for Federal office 
and an authorized committee of the same candidate for election for 
another Federal office.''.

SEC. 11. REQUIRING FEC TO MAKE SOFTWARE AVAILABLE FOR ELECTRONIC 
              FILING.

    Section 311(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 438(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(11) through competitive bidding, obtain and provide for 
        computer software required to carry out the electronic filing 
        of designations, statements, and reports under this Act.''.

SEC. 12. REQUIRING BROADCASTERS TO PROVIDE FREE RESPONSE TIME TO 
              CANDIDATES SUBJECT TO SOFT MONEY ADVERTISEMENTS.

    Section 317 of the Communications Act of 1934 (47 U.S.C. 317) is 
amended--
            (1) by striking ``radio station'' each place it appears and 
        inserting ``broadcast station''; and
            (2) by adding at the end of subsection (a) the following 
        new paragraph:
    ``(3)(A) A broadcast station may not accept for broadcast any soft 
money advertisement which contains the image, name, or likeness of a 
candidate for election for Federal office unless the station agrees to 
broadcast without charge--
            ``(i) if the soft money advertisement referred to or 
        presented the candidate in a critical or negative manner, an 
        advertisement provided by an authorized committee of such 
        candidate, under conditions (such as the time of broadcast) 
        similar to those under which the soft money advertisement was 
        broadcast; or
            ``(ii) if the soft money advertisement referred to or 
        presented the candidate in a positive manner, an advertisement 
        provided by an authorized committee of the candidate's opponent 
        in the election, under conditions (such as the time of 
        broadcast) similar to those under which the soft money 
        advertisement was broadcast.
    ``(B) In this paragraph, the term `soft money advertisement' means 
an advertisement whose costs are financed (in whole or in part) with 
funds which are not subject to the limitations, prohibitions, and 
reporting requirements of title III of the Federal Election Campaign 
Act of 1971, but does not include any advertisement whose costs are 
entirely financed by an authorized committee of a candidate for 
election for Federal office.
    ``(C) In this paragraph, the terms `authorized committee', 
`candidate', `election', and `Federal office' have the meaning given 
such terms in section 301 of the Federal Election Campaign Act of 1971 
(2 U.S.C. 431).''.

SEC. 13. EFFECTIVE DATE.

    Except as otherwise provided, the amendments made by this Act shall 
apply with respect to elections and transactions occurring after 
December 31, 2002.
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