[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2360 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2360

To amend the Federal Election Campaign Act of 1971 to restrict the use 
   of non-Federal funds by national political parties, to revise the 
 limitations on the amount of certain contributions which may be made 
     under such Act, to promote the availability of information on 
 communications made with respect to campaigns for Federal elections, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2001

 Mr. Ney (for himself, Mr. Wynn, Mr. Sweeney, Mr. Mica, Mr. Reynolds, 
 Mr. LaTourette, Mr. Peterson of Pennsylvania, Mr. Hobson, Ms. Dunn of 
     Washington, Mr. Cunningham, Mr. Taylor of North Carolina, Mr. 
Traficant, Ms. Pryce of Ohio, Mr. Blunt, Mr. Ehlers, Mr. Ballenger, and 
 Mr. Norwood) introduced the following bill; which was referred to the 
                   Committee on House Administration

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Election Campaign Act of 1971 to restrict the use 
   of non-Federal funds by national political parties, to revise the 
 limitations on the amount of certain contributions which may be made 
     under such Act, to promote the availability of information on 
 communications made with respect to campaigns for 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 ``Campaign Reform 
and Citizen Participation Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.
             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.
Sec. 202. Increase in limits on contributions to State parties.
Sec. 203. Treatment of contributions to national party under aggregate 
                            annual limit on individual contributions.
Sec. 204. Exemption of costs of volunteer campaign materials produced 
                            and distributed by parties from treatment 
                            as contributions and expenditures.
Sec. 205. Indexing.
        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior 
                            to election.
Sec. 302. Disclosure of information on targeted mass communications.
                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL 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 national political parties

    ``Sec. 323. (a) Prohibiting Use of Soft Money for Federal Election 
Activity.--A national committee of a political party may not solicit, 
receive, or direct to another person a contribution, donation, or 
transfer of funds or any other thing of value for Federal election 
activity, or spend any funds for Federal election activity, that are 
not subject to the limitations, prohibitions, and reporting 
requirements of this Act.
    ``(b) Limit on Amount of Nonfederal Funds Provided to Party by Any 
Person for Any Purpose.--No person shall make contributions, donations, 
or transfers of funds which are not subject to the limitations and 
prohibitions of this Act to a political committee established and 
maintained by a national political party in any calendar year in an 
aggregate amount equal to or greater than $75,000.
    ``(c) Applicability.-- This subsection shall apply to any political 
committee established and maintained by a national political party, any 
officer or agent of such a committee acting on behalf of the committee, 
and any entity that is directly or indirectly established, maintained, 
or controlled by such a national committee.
    ``(d) Definitions.--
            ``(1) 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, unless the activity 
                        constitutes generic campaign activity;
                            ``(ii) voter identification or get-out-the-
                        vote 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), unless the 
                        activity constitutes generic campaign activity;
                            ``(iii) any public communication that 
                        refers to or depicts a clearly identified 
                        candidate for Federal office (regardless of 
                        whether a candidate for State or local office 
                        is also mentioned or identified) and that 
                        promotes or supports a candidate for that 
                        office, or attacks or opposes a candidate for 
                        that office (regardless of whether the 
                        communication expressly advocates a vote for or 
                        against a candidate); or
                            ``(iv) any public communication made by 
                        means of any broadcast, cable, or satellite 
                        communication.
                    ``(B) Exception for certain administrative 
                activities.--The term `Federal election activity' does 
                not include any activity relating to establishment, 
                administration, or solicitation costs of a political 
                committee established and maintained by a national 
                political party, so long as the funds used to carry out 
                the activity are derived from funds or payments made to 
                the committee which are segregated and used exclusively 
                to defray the costs of such activities.
            ``(2) Generic campaign activity.--The term `generic 
        campaign activity' means any activity that does not mention, 
        depict, or otherwise promote a clearly identified Federal 
        candidate.
            ``(3) Public communication.--The term `public 
        communication' means a communication by means of any broadcast, 
        cable, or satellite communication, newspaper, magazine, outdoor 
        advertising facility, or direct mail.
            ``(4) Direct mail.--The term `direct mail' means a mailing 
        by a commercial vendor or any mailing made from a commercial 
        list.''.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

    (a) Contributions by Individuals to National Parties.--Section 
315(a)(1)(B) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a(a)(1)(B)) is amended by striking ``$20,000'' and inserting 
``$30,000''.
    (b) Contributions by Committees to National Parties.--Section 
315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is amended by 
striking ``$15,000'' and inserting ``$30,000''.
    (c) Aggregate Annual Limit on Contributions by Individuals.--
Section 315(a)(3) of such Act (2 U.S.C. 441a(a)(3)) is amended by 
striking ``$25,000'' and inserting ``$37,500''.

SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE PARTIES.

    (a) Contributions by Individuals.--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 
        which, in the aggregate, exceed $10,000.''.
    (b) Contributions by Committees.--Section 315(a)(2) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(2)) 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 
        which, in the aggregate, exceed $10,000.''.

SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER AGGREGATE 
              ANNUAL LIMIT ON INDIVIDUAL CONTRIBUTIONS.

    Section 315(a)(3) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441(a)(3)) is amended--
            (1) by striking ``(3)'' and inserting ``(3)(A)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Subparagraph (A) shall not apply with respect to any 
contribution made to any political committee established and maintained 
by a national political party which is not the authorized political 
committee of any candidate.''.

SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS PRODUCED 
              AND DISTRIBUTED BY PARTIES FROM TREATMENT AS 
              CONTRIBUTIONS AND EXPENDITURES.

    (a) Treatment as Contributions.--Section 301(8)(B)(x) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)(x)) is 
amended by striking ``a State or local committee of a political party 
of the costs of'' and inserting ``a national, State, or local committee 
of a political party of the costs of producing and distributing''.
    (b) Treatment as Expenditures.--Section 301(9)(B)(viii) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(B)(viii)) is 
amended by striking ``a State or local committee of a political party 
of the costs of'' and inserting ``a national, State, or local committee 
of a political party of the costs of producing and distributing''.

SEC. 205. INDEXING.

    Section 315(c) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking the second and third sentences;
                    (B) by inserting ``(A)'' before ``At the 
                beginning''; and
                    (C) by adding at the end the following:
    ``(B) Except as provided in subparagraph (C), in any calendar year 
after 2002--
            ``(i) a limitation established by subsections (a), (b), 
        (d), or (h) shall be increased by the percent difference 
        determined under subparagraph (A);
            ``(ii) each amount so increased shall remain in effect for 
        the calendar year; and
            ``(iii) if any amount after adjustment under clause (i) is 
        not a multiple of $100, such amount shall be rounded to the 
        nearest multiple of $100.
    ``(C) In the case of limitations under subsections (a) and (h), 
increases shall only be made in odd-numbered years and such increases 
shall remain in effect for the 2-year period beginning on the first day 
following the date of the last general election in the year preceding 
the year in which the amount is increased and ending on the date of the 
next general election.''; and
            (2) in paragraph (2)(B), by striking ``means the calendar 
        year 1974'' and inserting ``means--
                    ``(i) for purposes of subsections (b) and (d), 
                calendar year 1974; and
                    ``(ii) for purposes of subsections (a) and (h), 
                calendar year 2001''.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS BROADCAST PRIOR 
              TO ELECTION.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 502(a) of the Department of Transportation 
and Related Agencies Act, 2001 (as enacted into law by reference under 
section 101(a) of Public Law 106-346), is amended by adding at the end 
the following new subsection:
    ``(e) Disclosure of Information on Certain Communications Broadcast 
Prior to Elections.--
            ``(1) In general.--Any person who makes a disbursement for 
        a communication described in paragraph (3) shall, not later 
        than 24 hours after making the disbursement, file with the 
        Commission a statement containing the information required 
        under paragraph (2).
            ``(2) Contents of statement.--Each statement required to be 
        filed under this subsection shall be made under penalty of 
        perjury and shall contain the following information:
                    ``(A) The identification of the person making the 
                disbursement, of any individual or entity sharing or 
                exercising direction or control over the activities of 
                such person, and of the custodian of the books and 
                accounts of the person making the disbursement.
                    ``(B) The principal place of business and phone 
                number of the person making the disbursement, if not an 
                individual.
                    ``(C) The amount of the disbursement.
                    ``(D) The clearly identified candidate or 
                candidates to which the communication pertains and the 
                names (if known) of the candidates identified or to be 
                identified in the communication.
                    ``(E) The text of the communication involved.
            ``(3) Communications described.--
                    ``(A) In general.--A communication described in 
                this paragraph is any communication--
                            ``(i) which is disseminated to the public 
                        by means of any broadcast, cable, or satellite 
communication during the 120-day period ending on the date of a Federal 
election; and
                            ``(ii) which mentions a clearly identified 
                        candidate for such election (by name, image, or 
                        likeness).
                    ``(B) Exception.--A communication is not described 
                in this paragraph if--
                            ``(i) the communication appears in a news 
                        story, commentary, or editorial distributed 
                        through the facilities of any broadcasting 
                        station, unless such facilities are owned or 
                        controlled by any political party, political 
                        committee, or candidate; or
                            ``(ii) the communication constitutes an 
                        expenditure under this Act.
            ``(4) Coordination with other requirements.--Any 
        requirement to file a statement under this subsection shall be 
        in addition to any other reporting requirement under this Act.
            ``(5) Clarification of treatment of vendors.--A person 
        shall not be considered to have made a disbursement for a 
        communication under this subsection if the person made the 
        disbursement solely as a vendor acting pursuant to a 
        contractual agreement with the person responsible for 
        sponsoring the communication.''.

SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS COMMUNICATIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 301, is further amended by adding at the 
end the following new subsection:
    ``(f) Disclosure of Information on Targeted Mass Communications.--
            ``(1) In general.--Any person who makes a disbursement for 
        targeted mass communications in an aggregate amount in excess 
        of $50,000 during any calendar year shall, within 24 hours of 
        each disclosure date, file with the Commission a statement 
        containing the information described in paragraph (2).
            ``(2) Contents of statement.--Each statement required to be 
        filed under this subsection shall be made under penalty of 
        perjury and shall contain the following information:
                    ``(A) The identification of the person making the 
                disbursement, of any individual or entity sharing or 
                exercising direction or control over the activities of 
                such person, and of the custodian of the books and 
                accounts of the person making the disbursement.
                    ``(B) The principal place of business and phone 
                number of the person making the disbursement, if not an 
                individual.
                    ``(C) The amount of each such disbursement of more 
                than $200 made by the person during the period covered 
                by the statement and the identification of the person 
                to whom the disbursement was made.
                    ``(D) The clearly identified candidate or 
                candidates to which the communication pertains and the 
                names (if known) of the candidates identified or to be 
                identified in the communication.
                    ``(E) The text of the communication involved.
            ``(3) Targeted mass communication defined.--
                    ``(A) In general.--In this subsection, the term 
                `targeted mass communication' means any communication--
                            ``(i) which is disseminated during the 120-
                        day period ending on the date of a Federal 
                        election;
                            ``(ii) which refers to or depicts a clearly 
                        identified candidate for such election (by 
                        name, image, or likeness); and
                            ``(iii) which is targeted to the relevant 
                        electorate.
                    ``(B) Targeting to relevant electorate.--
                            ``(i) Broadcast communications.--For 
                        purposes of this paragraph, a communication 
                        disseminated to the public by means of any 
                        broadcast, cable, or satellite communication 
                        which refers to or depicts a clearly identified 
                        candidate for Federal office is `targeted to 
                        the relevant electorate' if the communication 
                        is disseminated by a broadcaster whose audience 
                        includes--
                                    ``(I) a substantial number of 
                                residents of the district the candidate 
                                seeks to represent (as determined in 
                                accordance with regulations of the 
                                Commission), in the case of a candidate 
                                for Representative in, or Delegate or 
                                Resident Commissioner to, the Congress; 
                                or
                                    ``(II) a substantial number of 
                                residents of the State the candidate 
                                seeks to represent (as determined in 
                                accordance with regulations of the 
                                Commission), in the case of a candidate 
                                for Senator.
                            ``(ii) Other communications.--For purposes 
                        of this paragraph, a communication which is not 
                        described in clause (i) which refers to or 
                        depicts a clearly identified candidate for 
                        Federal office is `targeted to the relevant 
                        electorate' if--
                                    ``(I) more than 10 percent of the 
                                total number of intended recipients of 
                                the communication are members of the 
                                electorate involved with respect to 
                                such Federal office; or
                                    ``(II) more than 10 percent of the 
                                total number of members of the 
                                electorate involved with respect to 
                                such Federal office receive the 
                                communication.
                    ``(C) Exceptions.--The term `targeted mass 
                communication' does not include--
                            ``(i) a communication appearing in a news 
                        story, commentary, or editorial distributed 
                        through the facilities of any broadcasting 
                        station, newspaper, magazine, or other 
                        periodical publication, unless such facilities 
                        are owned or controlled by any political party, 
                        political committee, or candidate;
                            ``(ii) a communication made by any 
                        membership organization (including a labor 
                        organization) or corporation solely to its 
                        members, stockholders, or executive or 
                        administrative personnel, if such membership 
                        organization or corporation is not organized 
                        primarily for the purpose of influencing the 
                        nomination for election, or election, of any 
                        individual to Federal office; or
                            ``(iii) a communication which constitutes 
                        an expenditure under this Act.
            ``(4) Disclosure date.--For purposes of this subsection, 
        the term `disclosure date' means--
                    ``(A) the first date during any calendar year by 
                which a person has made disbursements for targeted mass 
                communications aggregating in excess of $50,000; and
                    ``(B) any other date during such calendar year by 
                which a person has made disbursements for targeted mass 
                communications aggregating in excess of $50,000 since 
                the most recent disclosure date for such calendar year.
            ``(5) Coordination with other requirements.--Any 
        requirement to report under this subsection shall be in 
        addition to any other reporting requirement under this Act.
            ``(6) Clarification of treatment of vendors.--A person 
        shall not be considered to have made a disbursement for a 
        communication under this subsection if the person made the 
        disbursement solely as a vendor acting pursuant to a 
        contractual agreement with the person responsible for 
        sponsoring the communication.''.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to 
elections occurring after December 2002.
                                 <all>