[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1637 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1637

 To reform the financing of Federal elections, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2001

 Mr. Tierney (for himself, Mr. Blagojevich, Ms. Lofgren, Mr. Moran of 
Virginia, Mr. Stark, Mr. Clay, Mr. Farr of California, Mr. Conyers, Mr. 
Carson of Oklahoma, Ms. Woolsey, Mr. Lantos, Mr. Davis of Illinois, Ms. 
  Kaptur, Mr. McDermott, Mr. Barrett, Mr. Hoeffel, Mr. Pascrell, Mr. 
 Evans, Mr. Kind, Mrs. Maloney of New York, Mr. Frank, Mr. Markey, Ms. 
   Baldwin, Mr. Blumenauer, Mr. Fattah, Mr. Waxman, Mr. Pallone, Mr. 
    Kucinich, Ms. Lee, Ms. McKinney, Mr. Capuano, Mr. DeFazio, Mr. 
Delahunt, Ms. DeLauro, Ms. Eshoo, Mr. Ford, Mr. Hinchey, Mr. Jackson of 
 Illinois, Mr. Lewis of Georgia, Mr. McGovern, Mr. Meehan, Mr. George 
Miller of California, Mr. Nadler, Mr. Olver, Ms. Pelosi, Mr. Rodriguez, 
 Mr. Sanders, Ms. Schakowsky, and Mr. Weiner) introduced the following 
bill; which was referred to the Committee on House Administration, and 
 in addition to the Committees on Energy and Commerce, and Government 
 Reform, 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 reform the financing of Federal elections, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Money, Clean 
Elections Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of clean money 
                            financing of House election campaigns.
      ``TITLE V--CLEAN MONEY FINANCING OF HOUSE ELECTION CAMPAIGNS

        ``Sec. 501. Definitions.
        ``Sec. 502. Eligibility for clean money.
        ``Sec. 503. Requirements applicable to clean money candidates.
        ``Sec. 504. Seed money.
        ``Sec. 505. Certification by Commission.
        ``Sec. 506. Benefits for clean money candidates.
        ``Sec. 507. Administration of clean money.
        ``Sec. 508. Expenditures made from funds other than clean 
                            money.
        ``Sec. 509. Authorization of appropriations.
Sec. 103. Reporting requirements for expenditures of private money 
                            candidates.
Sec. 104. Transition rule for current election cycle.
    TITLE II--INDEPENDENT EXPENDITURES; COORDINATED POLITICAL PARTY 
                              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 other coordinated 
                            expenditures.
                      TITLE III--VOTER INFORMATION

Sec. 301. Free broadcast time.
Sec. 302. Broadcast rates and preemption.
Sec. 303. Campaign advertising.
Sec. 304. Limit on Congressional use of the franking privilege.
               TITLE IV--SOFT MONEY OF POLITICAL PARTIES

Sec. 401. Soft money of political parties.
Sec. 402. Increased contribution limits for State committees of 
                            political parties and aggregate 
                            contribution limit for individuals.
Sec. 403. Reporting requirements.
   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

Sec. 501. Appointment and terms of Commissioners.
Sec. 502. Audits.
Sec. 503. Authority to seek injunction.
Sec. 504. Standard for investigation.
Sec. 505. Petition for certiorari.
Sec. 506. Expedited procedures.
Sec. 507. Promoting expedited availability of FEC reports.
Sec. 508. Power to issue subpoena without signature of chairperson.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Severability.
Sec. 602. Review of constitutional issues.
Sec. 603. Effective date.

       TITLE I--CLEAN MONEY FINANCING OF HOUSE ELECTION CAMPAIGNS

SEC. 101. FINDINGS AND DECLARATIONS.

    (a) Undermining of Democracy by Campaign Contributions From Private 
Sources.--The Congress finds and declares that the current system of 
privately financed campaigns for election to the House of 
Representatives has the capacity, and is often perceived by the public, 
to undermine 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 or giving the appearance of diminishing a 
        Member of the House of Representatives'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 or real, by 
        encouraging Members 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 House of Representatives 
        election campaigns;
            (6) disadvantaging challengers, because large campaign 
        contributors tend to give their money to incumbent Members, 
        thus causing House of Representatives 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.--Congress 
finds and declares that providing the option of the replacement of 
private campaign contributions with clean money financing for all 
primary, runoff, and general elections to the House of Representatives 
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 public's confidence in the 
        accountability of Members to the constituents who elect them;
            (3) eliminating the potentially 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 (or that are perceived 
        to be) 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 House of Representatives, and encouraging more 
        competitive elections; and
            (6) freeing Members 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 HOUSE 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 HOUSE 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 Member of or Delegate or 
        Resident Commissioner to the Congress 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 180 days before the date of the primary election and ending 
        on the date that is 30 days before the date of the general 
        election. In the event of a special election, the clean money 
        qualifying period shall begin on the earlier date of either the 
        date that is 180 days before the date of the special election 
        or on the date of announcement of such special election date if 
        same as within 180 days of the date of the special election. It 
        shall end on the date that is 30 days before the date of the 
        special 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) House of representatives election fund.--The term 
        `House of Representatives Election Fund' means the fund 
        established by section 507(a).
            ``(8) 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).
            ``(9) Major party candidate.--The term `major party 
        candidate' means a candidate of a political party of which a 
        candidate for Member of or Delegate or Resident Commissioner to 
        the Congress, 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 
        (or Congressional district, if applicable) by all candidates 
        for the same office.
            ``(10) 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.
            ``(11) 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, but is not limited to--
                            ``(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.
            ``(12) 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. In the event of a special primary 
        election, if applicable, the term `primary election period' 
        means the period beginning on the date that is the longer of 90 
        days before the date of such special primary election, or the 
        date of establishment by the appropriate election authority of 
        the special primary election date and ending on the date of the 
        special primary election.
            ``(13) 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.
            ``(14) Private money candidate.--The term `private money 
        candidate' means a candidate for Member of or Delegate or 
        Resident Commissioner to the Congress other than a clean money 
        candidate.
            ``(15) 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).
            ``(16) 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.
            ``(17) State.--The term `State' includes the District of 
        Columbia, Puerto Rico, the Virgin Islands, American Samoa, and 
        Guam.

``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 and certain 
                independent candidates.--The requirement of this 
                paragraph is met if, during the clean money qualifying 
                period, a major party candidate (or an independent 
                candidate who meets the minimum vote percentage 
                required for a major party candidate under section 
                501(9)) receives 1,500 qualifying contributions.
                    ``(B) Other candidates.--The requirement of this 
                paragraph is met if, during the clean money qualifying 
                period, a candidate who is not described in 
                subparagraph (A) receives a number of qualifying 
                contributions that is at least 150 percent of the 
                number of qualifying contributions that a candidate 
                described in subparagraph (A) 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 House of 
                        Representatives 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 house 
                of representatives 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 House of Representatives 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 House of Representatives 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. 
        With respect to any special primary election, a declaration 
        under paragraph (1) shall be filed by a candidate not later 
        than the date that is 30 days before the special 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. With respect to any 
        special general election, 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 
        special 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) 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.
    ``(b) 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.

``SEC. 504. SEED MONEY.

    ``(a) Seed Money Limit.--A clean money candidate may accept seed 
money contributions in an aggregate amount not exceeding $35,000.
    ``(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 Seed Money Contributions.--A clean money 
candidate may accept seed money contributions for an election from the 
day after the date of the previous general election for the office to 
which the candidate is seeking election through 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 House of Representatives 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 House of 
Representatives 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) In general.--Except as provided in paragraph (2), the 
        clean money amount paid to a clean money candidate with respect 
        to an election shall be equal to the applicable percentage of 
        80 percent of the base amount for the election cycle involved, 
        except that in no event may the amount determined under this 
        subsection for a clean money candidate for an election cycle be 
        less than the amount determined under this subsection for the 
        candidate for the previous election cycle.
            ``(2) Reduction for uncontested elections.--If a clean 
        money candidate has no opposition in an election for which a 
        payment is made under this section, the clean money amount paid 
        shall be 40 percent of the amount otherwise determined under 
        paragraph (1).
            ``(3) Definitions.--
                    ``(A) Applicable percentage.--In this subsection, 
                the `applicable percentage' is as follows:
                            ``(i) 25 percent, in the case of a 
                        candidate in a primary election who is not a 
                        major party candidate.
                            ``(ii) 40 percent, in the case of a major 
                        party candidate in a primary election.
                            ``(iii) 60 percent, in the case of any 
                        candidate in a general election.
                    ``(B) Base amount.--In this subsection, the term 
                `base amount' means (with respect to an election cycle) 
                the national average of all amounts expended by winning 
                candidates during the 3 most recent general elections 
                for Member of, or Delegate or Resident Commissioner to, 
                the Congress preceding the election cycle involved.
    ``(d) Matching Funds in Response to Independent Expenditures and 
Expenditures of Private Money Candidates.--
            ``(1) In general.--If the Commission--
                    ``(A) receives notification under--
                            ``(i) subparagraphs (A) or (B) of section 
                        304(c)(2) that a person has made or obligated 
                        to make an independent expenditure in an 
                        aggregate amount of $1,000 or more in an 
                        election period or that a person has made or 
                        obligated to make an independent expenditure in 
                        an aggregate amount of $500 or more during the 
20 days preceding the date of an election in support of another 
candidate or against a clean money candidate; or
                            ``(ii) section 304(e)(1) that a private 
                        money candidate has made or obligated to make 
                        expenditures in an aggregate amount in excess 
                        of 100 percent of the amount of clean money 
                        provided to a clean money candidate who is an 
                        opponent of the private money candidate in the 
                        same election; and
                    ``(B) determines that the aggregate amount of 
                expenditures reported under subparagraph (A) in an 
                election period is in excess of 125 percent of the 
                amount of clean money provided to a clean money 
                candidate who is an opponent of the private money 
                candidate in the same election or against whom the 
                independent expenditure is made,
        the Commission shall make available to the clean money 
        candidate, not later than 24 hours after receiving a 
        notification under subparagraph (A), an aggregate amount of 
        increase in clean money in an amount equal to the aggregate 
        amount of expenditures that is in excess of 125 percent of the 
        amount of clean money provided to the clean money candidate as 
        determined under subparagraph (B).
            ``(2) Clean money candidates opposed by more than 1 private 
        money candidate.--For purposes of paragraph (1), if a clean 
        money candidate is opposed by more than 1 private money 
        candidate in the same election, the Commission shall take into 
        account only the amount of expenditures of the private money 
        candidate that expends, in the aggregate, the greatest amount 
        (as determined each time notification is received under section 
        304(e)(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) Repayment; civil penalties.--
                    ``(A) If the Commission determines that any benefit 
                made available to a clean money candidate under this 
                title was not used as provided for in this title, or 
                that a clean money candidate has violated any of the 
                spending limits or dates for remission of funds 
                contained in this Act, the Commission shall so notify 
                the candidate and the candidate shall pay to the House 
                of Representatives' Election Fund an amount equal to 
                the amount of benefits so used, or the amount spent in 
                excess of the limits or the amount not timely remitted, 
                as appropriate.
                    ``(B) Any action by the Commission in accordance 
                with this section shall not preclude enforcement 
                proceedings by the Commission in accordance with 
                section 309(a), including a referral by the Commission 
                to the Attorney General in the case of an apparent 
                knowing and willful violation of this title.
    ``(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 House of Representatives Election Fund.

``SEC. 507. ADMINISTRATION OF CLEAN MONEY.

    ``(a) House of Representatives Election Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        a fund to be known as the `House of Representatives 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 House of Representatives Election Fund.
            ``(3) Funds.--The Commission shall withdraw the clean money 
        amount for a clean money candidate from the House of 
        Representatives Election Fund.
    ``(b) Regulations.--The Commission shall promulgate regulations 
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 House of 
Representatives 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), 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:
    ``(e) 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, 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), during an election period (as defined by section 
        501) who is an opponent of the clean money candidate shall file 
        with the Commission a report stating the amount of each 
        expenditure (in increments of an aggregate amount of $100) made 
        or obligated to be made.
            ``(2) Place of filing; notification.--
                    ``(A) Place of filing.--A report under this 
                subsection shall be filed with the Commission.
                    ``(B) Notification of clean money candidates.--Not 
                later than 24 hours after receipt of a report under 
                this subsection, the Commission shall notify each clean 
                money candidate seeking nomination for election to, or 
                election to, the office in question, of the receipt of 
                the report.
            ``(3) Determinations by the commission.--
                    ``(A) In general.--The Commission may, on a request 
                of a candidate or on its own initiative, make a 
                determination that a private money candidate has made, 
                or has obligated to make, expenditures in excess of the 
                applicable amount in paragraph (1).
                    ``(B) Notification.--In the case of such a 
                determination, the Commission shall notify each clean 
                money candidate seeking nomination for election to, or 
                election to, the office in question, of the making of 
                the determination not later than 24 hours after making 
                the determination.
                    ``(C) Time to comply with request for 
                determination.--A determination made at the request of 
                a candidate shall be made not later than 48 hours after 
                the date of the request.''.

SEC. 104. TRANSITION RULE FOR CURRENT ELECTION CYCLE.

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

    TITLE II--INDEPENDENT EXPENDITURES; COORDINATED POLITICAL PARTY 
                              EXPENDITURES

SEC. 201. REPORTING REQUIREMENTS FOR INDEPENDENT EXPENDITURES.

    (a) Independent Expenditures.--Section 304(c) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434(c)) is amended--
            (1) by striking ``(c)(1) Every person'' and inserting the 
        following:
    ``(c) Independent Expenditures.--
            ``(1) In general.--
                    ``(A) Required filing.--Except as provided in 
                paragraph (2), every person'';
            (2) in paragraph (2), by redesignating subparagraphs (A), 
        (B), and (C) as clauses (i), (ii), and (iii), respectively, and 
        adjusting the margins accordingly;
            (3) by redesignating paragraphs (2) and (3) as 
        subparagraphs (B) and (C), respectively, and adjusting the 
        margins accordingly;
            (4) by adding at the end the following:
            ``(2) House of representatives elections with a clean money 
        candidate.--
                    ``(A) Independent expenditures more than 20 days 
                before an election.--
                            ``(i) In general.--Not later than 48 hours 
                        after making an independent expenditure, more 
                        than 20 days before the date of an election, in 
                        support of an opponent of or in opposition to a 
                        clean money candidate (as defined in section 
                        501), a person that makes independent 
                        expenditures in an aggregate amount in excess 
                        of $1,000 during an election period (as defined 
                        in section 501) shall file with the Commission 
a statement containing the information described in clause (ii).
                            ``(ii) Contents of statement.--A statement 
                        under subparagraph (A) shall include a 
                        certification, under penalty of perjury, that 
                        contains the information required by subsection 
                        (b)(6)(B)(iii).
                            ``(iii) Additional statements.--An 
                        additional statement shall be filed for each 
                        aggregate of independent expenditures that 
                        exceeds $1,000.
                    ``(B) Independent expenditures during the 20 days 
                preceding an election.--Not later than 24 hours after 
                making or obligating to make an independent expenditure 
                in support of an opponent of or in opposition to a 
                clean money candidate in an aggregate amount in excess 
                of $500, during the 20 days preceding the date of an 
                election, a person that makes or obligates to make the 
                independent expenditure shall file with the Commission 
                a statement stating the amount of each independent 
                expenditure made or obligated to be made.
                    ``(C) Place of filing; notification.--
                            ``(i) Place of filing.--A report or 
                        statement under this paragraph shall be filed 
                        with the Commission.
                            ``(ii) Notification of clean money 
                        candidates.--Not later than 24 hours, but 
                        excluding the time from 5:00 p.m. Friday 
                        through and until 9:00 a.m. the following 
                        Monday, and legal holidays after receipt of a 
                        statement under this paragraph, the Commission 
                        shall notify each clean money candidate seeking 
                        nomination for election to, or election to, the 
                        office in question of the receipt of a 
                        statement.
                    ``(D) Determination by the commission.--
                            ``(i) In general.--The Commission may, on 
                        request of a candidate or on its own 
                        initiative, make a determination that a person 
                        has made or obligated to make independent 
                        expenditures with respect to a candidate that 
                        in the aggregate exceed the applicable amount 
                        under subparagraph (A).
                            ``(ii) Notification.--Not later than 24 
                        hours after making a determination under clause 
                        (i), the Commission shall notify each clean 
                        money candidate in the election of the making 
                        of the determination.
                            ``(iii) Time to comply with request for 
                        determination.--A determination made at the 
                        request of a candidate shall be made not later 
                        than 48 hours after the date of the request.''.

SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE.

    (a) In General.--Section 301 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 431) is amended by striking paragraph (17) and 
inserting the following:
            ``(17) Independent expenditure.--
                    ``(A) In general.--The term ``independent 
                expenditure'' means an expenditure made by a person 
                other than a candidate or candidate's authorized 
                committee--
                            ``(i) that is made for a communication that 
                        contains express advocacy; and
                            ``(ii) is made without the participation or 
                        cooperation of and without coordination with a 
                        candidate (within the meaning of section 
                        301(8)(A)(iii)).
                    ``(B) Express advocacy.--The term `express 
                advocacy' means a communication that is made through a 
                broadcast medium, newspaper, magazine, billboard, 
                direct mail, or similar type of communication and 
                that--
                            ``(i) advocates the election or defeat of a 
                        clearly identified candidate, including any 
                        communication that--
                                    ``(I) contains a phrase such as 
                                `vote for', `re-elect', `support', 
                                `cast your ballot for', `(name of 
                                candidate) for Congress', `(name of 
                                candidate) in (year involved)', `vote 
                                against', `defeat', `reject', `put a 
                                stop to (name of candidate)', `send 
                                (name of candidate) home'; or
                                    ``(II) contains campaign slogans or 
                                individual words that in context can 
                                have no reasonable meaning other than 
                                to recommend the election or defeat of 
                                1 or more clearly identified 
                                candidates; or
                            ``(ii)(I) refers to a clearly identified 
                        candidate;
                            ``(II) is made not more than 60 days before 
                        the date of a general election; and
                            ``(III) is not solely devoted to a pending 
                        legislative issue before an open session of 
                        Congress.''.
    (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 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.

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) in the matter preceding clause (i), by striking 
                ``in the case'' and inserting ``except as provided in 
                subparagraph (C), in the case'', and
                    (B) by striking ``and'' at the end;
            (2) in subparagraph (B)--
                    (A) by striking ``in the case'' and inserting 
                ``except as provided in subparagraph (C), in the 
                case'', and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following:
            ``(C) in the case of an election to the office of 
        Representative in or Delegate or Resident Commissioner to the 
        Congress 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 OTHER COORDINATED 
              EXPENDITURES.

    (a) Determination To Make Coordinated Expenditures.--Section 315(d) 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``coordinated'' after ``make''; 
                and
                    (B) by striking ``(2) and (3)'' and inserting 
                ``(2), (3), and (4)''; and
            (2) by adding at the end the following:
    ``(4)(A) Before a committee of a political party makes a 
coordinated expenditure in connection with a general election campaign 
for Federal office in excess of $5,000, the committee shall file with 
the Commission a certification, signed by the treasurer, that the 
committee has not made and will not make any independent expenditures 
in connection with that campaign for Federal office. A party committee 
that determines to make a coordinated expenditure shall not make any 
transfer of funds in the same election cycle to, or receive any 
transfer of funds in the same election cycle from, any other party 
committee that determines to make independent expenditures in 
connection with the same campaign for Federal office.
    ``(B) A committee of a political party shall be considered to be in 
coordination with a candidate of the party if the committee--
            ``(i) makes a payment for a communication or anything of 
        value in coordination with the candidate, as described in 
        section 301(8)(A)(iii);
            ``(ii) makes a coordinated expenditure under this 
        subsection on behalf of the candidate;
            ``(iii) participates in joint fundraising with the 
        candidate or in any way solicits or receives a contribution on 
        behalf of the candidate;
            ``(iv) communicates with the candidate, or an agent of the 
        candidate (including a pollster, media consultant, vendor, 
        advisor, or staff member), acting on behalf of the candidate, 
        about advertising, message, allocation of resources, 
        fundraising, or other campaign matters related to the 
        candidate's campaign, including campaign operations, staffing, 
        tactics or strategy; or
            ``(v) provides in-kind services, polling data, or anything 
        of value to the candidate.
    ``(C) For purposes of this paragraph, all political committees 
established and maintained by a national political party (including all 
congressional campaign committees) and all political committees 
established by State political parties shall be considered to be a 
single political committee.
    ``(D) For purposes of subparagraph (A), any coordination between a 
committee of a political party and a candidate of the party after the 
candidate has filed a statement of candidacy constitutes coordination 
for the period beginning with the filing of the statement of candidacy 
and ending at the end of the election cycle.''.
    (b) Definitions.--
            (1) Amendment of definition of contribution.--Section 
        301(8) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
        431(8)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``or'' at the end of clause 
                        (i);
                            (ii) by striking the period at the end of 
                        clause (ii) and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) a payment made for a communication 
                        or anything of value that is for the purpose of 
                        influencing an election for Federal office and 
                        that is made in coordination with a candidate 
                        (as defined in subparagraph (C)).''; and
                    (B) by adding at the end the following:
                    ``(C) For the purposes of subparagraph (A)(iii), 
                the term `payment made in coordination with a 
                candidate' includes--
                            ``(i) a payment made by a person in 
                        cooperation, consultation, or concert with, at 
                        the request or suggestion of, or pursuant to 
                        any general or particular understanding with a 
                        candidate, the candidate's authorized 
                        committee, or an agent acting on behalf of a 
                        candidate or authorized committee;
                            ``(ii) a payment made by a person for the 
                        dissemination, distribution, or republication, 
                        in whole or in part, of any broadcast or any 
                        written, graphic, or other form of campaign 
                        material prepared by a candidate, a candidate's 
                        authorized committee, or an agent of a 
                        candidate or authorized committee (not 
                        including a communication described in 
                        paragraph (9)(B)(i) or a communication that 
                        expressly advocates the candidate's defeat);
                            ``(iii) a payment made based on information 
                        about a candidate's plans, projects, or needs 
                        provided to the person making the payment by 
                        the candidate or the candidate's agent who 
                        provides the information with a view toward 
                        having the payment made;
                            ``(iv) a payment made by a person if, in 
                        the same election cycle in which the payment is 
                        made, the person making the payment is serving 
                        or has served as a member, employee, 
fundraiser, or agent of the candidate's authorized committee in an 
executive or policymaking position;
                            ``(v) a payment made by a person if the 
                        person making the payment has served in any 
                        formal policy or advisory position with the 
                        candidate's campaign or has participated in 
                        strategic or policymaking discussions with the 
                        candidate's campaign relating to the 
                        candidate's pursuit of nomination for election, 
                        or election, to Federal office, in the same 
                        election cycle as the election cycle in which 
                        the payment is made; and
                            ``(vi) a payment made by a person if the 
                        person making the payment retains the 
                        professional services of an individual or 
                        person who has provided or is providing 
                        campaign-related services in the same election 
                        cycle to a candidate in connection with the 
                        candidate's pursuit of nomination for election, 
                        or election, to Federal office, including 
                        services relating to the candidate's decision 
                        to seek Federal office, and the payment is for 
                        services of which the purpose is to influence 
                        that candidate's election.
                    ``(D) For purposes of subparagraph (C)(vi), the 
                term `professional services' includes services in 
                support of a candidate's pursuit of nomination for 
                election, or election, to Federal office such as 
                polling, media advice, direct mail, fundraising, or 
                campaign research.''.
            (2) Definition of contribution in section 315(a)(7).--
        Section 315(a)(7) of the Federal Election Campaign Act of 1971 
        (2 U.S.C. 441a(a)(7)) is amended by striking paragraph (B) and 
        inserting the following:
            ``(B)(i) Except as provided in clause (ii), a payment made 
        in coordination with a candidate (as described in section 
        301(8)(A)(iii)) shall be considered to be a contribution to the 
        candidate, and, for the purposes of any provision of this Act 
        that imposes a limitation on the making of expenditures by a 
        candidate, shall be treated as an expenditure by the candidate 
        for purposes of this paragraph.
            ``(ii) In the case of a clean money candidate (as defined 
        in section 501), a payment made in coordination with a 
        candidate by a committee of a political party shall not be 
        treated as a contribution to the candidate for purposes of 
        section 503(b)(1) or an expenditure made by the candidate for 
        purposes of section 503(b)(2).''.
    (c) Meaning of Contribution or Expenditure for the Purposes of 
Section 316.--Section 316(b)(2) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441b(b)(2)) is amended by striking ``shall include'' and 
inserting ``includes a contribution or expenditure (as those terms are 
defined in section 301) and also includes''.

                      TITLE III--VOTER INFORMATION

SEC. 301. FREE BROADCAST TIME.

    Section 315 of the Communications Act of 1934 (47 U.S.C. 315) is 
amended--
            (1) in subsection (a), in the third sentence, by striking 
        ``within the meaning of this subsection'' and inserting 
        ``within the meaning of this subsection or subsection (c)'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Free Broadcast Time.--
            ``(1) Amount of time.--A clean money candidate shall be 
        entitled to receive--
                    ``(A) 30 minutes of free broadcast time during each 
                of the primary election period and the primary runoff 
                election period; and
                    ``(B) 75 minutes of free broadcast time during the 
                general election period and general runoff election 
                period.
            ``(2) Time during which the broadcast is shown.--The 
        broadcast time under paragraph (1) shall be--
                    ``(A) with respect to a television broadcast, the 
                time between 6:00 p.m. and 10:00 p.m. on any day that 
                falls on Monday through Friday;
                    ``(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; or
                    ``(C) with respect to any broadcast, such other 
                time to which the candidate and broadcaster may agree.
            ``(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.''; 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 terms `general election period' and `general 
        runoff election period' have 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) Other house candidates.--In the case of a candidate 
        for election for Member of, or Delegate or Resident 
        Commissioner to, the Congress who is not a clean money 
        candidate, paragraph (1)(A) shall not apply.
            ``(4) Rate cards.--A licensee shall provide to a candidate 
        for Member of or Delegate or Resident Commissioner to the 
        Congress 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 (c) 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 Member of or Delegate or 
        Resident Commissioner to the Congress 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.''.
    (c) Revocation of License for Failure to Permit Access.--Section 
312(a)(7) of the Communications Act of 1934 (47 U.S.C. 312(a)(7)) is 
amended--
            (1) by striking ``or repeated'';
            (2) by inserting ``or cable system'' after ``broadcasting 
        station''; and
            (3) by striking ``his candidacy'' and inserting ``the 
        candidacy of the candidate, under the same terms, conditions, 
        and business practices as apply to the most favored advertiser 
        of the licensee''.

SEC. 303. CAMPAIGN ADVERTISING.

    (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''; 
                        and
                            (ii) by striking ``direct''; and
                    (B) in paragraph (3), by inserting ``and permanent 
                street address'' after ``name''; and
            (2) by adding at the end the following:
    ``(c) Any printed communication described in subsection (a) shall 
be--
            ``(1) of sufficient type size to be clearly readable by the 
        recipient of the communication;
            ``(2) contained in a printed box set apart from the other 
        contents of the communication; and
            ``(3) consist of a reasonable degree of color contrast 
        between the background and the printed statement.
    ``(d)(1) Any broadcast or cablecast communication described in 
subsection (a)(1) or subsection (a)(2) shall include, in addition to 
the requirements of those subsections, an audio statement 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 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.
    ``(e) Any broadcast or cablecast communication described in 
subsection (a)(3) shall include, in addition to the requirements of 
those subsections, in a clearly spoken manner, the following statement: 
`________________ is responsible for the content of this 
advertisement.' (with the blank to be filled in with the name of the 
political committee or other person paying for the communication and 
the name of any connected organization of the payor). If broadcast or 
cablecast by means of television, the statement shall also appear in a 
clearly readable manner with a reasonable degree of color contrast 
between the background and the printed statement, for a period of at 
least 4 seconds.''.
    (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:
    ``(f) 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 $1,000 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 
                candidate for Member of or Delegate or Resident 
                Commissioner to the Congress;
                    ``(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 the period which 
begins on the first day of the primary election period (as described in 
section 501(12) of the Federal Election Campaign Act of 1971) and ends 
on the date of the general election for that office (other than any 
portion of such period between the date of the primary election and the 
first day of the general election period), 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 
        Representative's name, and the date, time, and place of the 
        public meeting.''.

               TITLE IV--SOFT MONEY OF POLITICAL PARTIES

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 new section:

                   ``soft money of political parties

    ``Sec. 323. (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 
Commissioner of the Internal Revenue Service 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. INCREASED CONTRIBUTION LIMITS FOR STATE COMMITTEES OF 
              POLITICAL PARTIES AND AGGREGATE CONTRIBUTION LIMIT FOR 
              INDIVIDUALS.

    (a) Contribution Limit for State Committees of Political Parties.--
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) in subparagraph (C)--
                    (A) by inserting ``(other than a committee 
                described in subparagraph (D))'' after ``committee''; 
                and
                    (B) by striking the period at the end and inserting 
                ``; or''; and
            (3) by adding at the end the following:
            ``(D) to a political committee established and maintained 
        by a State committee of a political party in any calendar year 
        that, in the aggregate, exceed $10,000''.
    (b) Aggregate Contribution Limit for Individual.--Section 315(a)(3) 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is 
amended by striking ``$25,000'' and inserting ``$30,000''.

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 sections 103 and 
303(b)) is amended by adding at the end the following:
    ``(g) Political Committees.--
            ``(1) National and congressional political committees.--The 
        national committee of a political party, any national 
congressional campaign committee of a political party, and any 
subordinate committee of either, shall report all receipts and 
disbursements during the reporting period.
            ``(2) Other political committees to which section 323 
        applies.--In addition to any other reporting requirements 
        applicable under this Act, a political committee (not described 
        in paragraph (1)) to which section 323(b)(1) applies shall 
        report all receipts and disbursements made for activities 
        described in paragraphs (2)(A) and (2)(B)(v) of section 323(b).
            ``(3) 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 (or 
        election cycle, in the case of an authorized committee of a 
        candidate for Federal office), the political committee shall 
        separately itemize its reporting for such person in the same 
        manner as required in paragraphs (3)(A), (5), and (6) of 
        subsection (b).
            ``(4) Reporting periods.--Reports required to be filed 
        under this subsection shall be filed for the same time periods 
        required for political committees under subsection (a).''.
    (b) Building Fund Exception to the Definition of Contribution.--
Section 301(8)(B) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(8)(B)) is amended--
            (1) by striking clause (viii); and
            (2) by redesignating clauses (ix) through (xv) as clauses 
        (viii) through (xiv), respectively.

   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 United States 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 section 501(a)(1)(D) of this Act.

SEC. 502. AUDITS.

    (a) Random Audit.--Section 311(b) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 438(b)) is amended--
            (1) by inserting ``(1)'' before ``The Commission''; and
            (2) by adding at the end the following:
            ``(2) Random audits.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                after every primary, general, and runoff election, the 
                Commission may conduct random audits and investigations 
                to ensure voluntary compliance with this Act.
                    ``(B) Selection of subjects.--The subjects of 
                audits and investigations under this paragraph shall be 
                selected on the basis of impartial criteria established 
                by a vote of at least 4 members of the Commission.
                    ``(C) Exclusion.--This paragraph does not apply to 
                an authorized committee of a candidate for President or 
                Vice President subject to audit under chapter 95 or 96 
                of the Internal Revenue Code of 1986.''.

SEC. 503. AUTHORITY TO SEEK INJUNCTION.

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

SEC. 504. STANDARD FOR INVESTIGATION.

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

SEC. 505. PETITION FOR CERTIORARI.

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

SEC. 506. EXPEDITED PROCEDURES.

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

SEC. 507. PROMOTING EXPEDITED AVAILABILITY OF FEC REPORTS.

    (a) Mandatory Electronic Filing.--Section 304(a)(11) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434(a)(11)) is amended--
            (1) in subparagraph (A), by striking ``under this Act--'' 
        and all that follows and inserting ``under this Act shall be 
        required to maintain and file such designation, statement, or 
        report in electronic form accessible by computers.''; and
                    (2) by striking subparagraph (D).
    (b) Requiring Reports for All Contributions Made to Any Political 
Committee Within 90 Days of Election; Requiring Reports To Be Made 
Within 24 Hours.--Section 304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is 
amended to read as follows:
    ``(6)(A) Each political committee shall notify the Secretary or the 
Commission, and the Secretary of State, as appropriate, in writing, of 
any contribution received by the committee during the period which 
begins on the 90th day before an election and ends at the time the 
polls close for such election. This notification shall be made within 
24 hours (or, if earlier, by midnight of the day on which the 
contribution is deposited) after the receipt of such contribution and 
shall include the name of the candidate involved (as appropriate) and 
the office sought by the candidate, the identification of the 
contributor, and the date of receipt and amount of the contribution.
    ``(B) The notification required under this paragraph shall be in 
addition to all other reporting requirements under this Act.''.

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,''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. SEVERABILITY.

    If any provision of this Act or amendment made by this Act, or the 
application of a provision or amendment to any person or circumstance, 
is held to be unconstitutional, the remainder of this Act and 
amendments made by this Act, and the application of the provisions and 
amendment to any person or circumstance, shall not be affected by the 
holding.

SEC. 602. REVIEW OF CONSTITUTIONAL ISSUES.

    An appeal may be taken directly to the Supreme Court of the United 
States from any final judgment, decree, or order issued by any court 
ruling on the constitutionality of any provision of this Act or 
amendment made by this Act.

SEC. 603. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
January 1, 2002.
                                 <all>