[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 602 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 602

                    To reform Federal election law.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2001

 Mr. Domenici introduced the following bill; which was read twice and 
         referred to the Committee on Rules and Administration

_______________________________________________________________________

                                 A BILL


 
                    To reform Federal election law.

    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 ``Common Sense 
Federal Election Reform Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Modification of individual contribution limits in response to 
                            expenditures from personal funds.
Sec. 3. Increase in contribution limits.
Sec. 4. Limit on soft money donations to political parties.
Sec. 5. Increased disclosure for certain communications.
Sec. 6. Use of union dues for purposes unrelated to collective 
                            bargaining.
Sec. 7. Prohibition of fundraising on Federal property and other 
                            criminal prohibitions.
Sec. 8. Contributions to defray legal expenses of certain officials.
Sec. 9. Increased criminal penalties for violations of foreign national 
                            provisions and contributions in the name of 
                            another.
Sec. 10. Term limits for Federal Election Commission.

SEC. 2. MODIFICATION OF INDIVIDUAL CONTRIBUTION LIMITS IN RESPONSE TO 
              EXPENDITURES FROM PERSONAL FUNDS.

    (a) Increased Limits for Individuals.--
            (1) In general.--Section 315 of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441a) is amended--
                    (A) in subsection (a)(1), by striking ``No person'' 
                and inserting ``Except as provided in subsection (i), 
                no person''; and
                    (B) by adding at the end the following:
    ``(i) Increased Limit To Allow Response to Expenditures From 
Personal Funds.--
            ``(1) Increase.--
                    ``(A) In general.--Subject to paragraph (2), if the 
                opposition personal funds amount with respect to a 
                candidate for election to the office of Senator exceeds 
                the threshold amount, the limits under paragraphs 
                (1)(A) and (2)(A) of subsection (a) (in this subsection 
                referred to as the `applicable limits') with respect to 
                that candidate shall be the increased limit.
                    ``(B) Threshold amount.--
                            ``(i) State-by-state competitive and fair 
                        campaign formula.--In this subsection, the 
                        threshold amount with respect to an election 
                        cycle of a candidate described in subparagraph 
                        (A) is an amount equal to the sum of--
                                    ``(I) $150,000; and
                                    ``(II) $0.04 multiplied by the 
                                voting age population.
                            ``(ii) Voting age population.--In this 
                        subparagraph, the term `voting age population' 
                        means the voting age population of the State of 
                        the candidate (as certified under section 
                        315(e)).
                    ``(C) Increased limit.--Except as provided in 
                clause (ii), for purposes of subparagraph (A), if the 
                opposition personal funds amount is over--
                            ``(i) 2 times the threshold amount, but not 
                        over 4 times that amount--
                                    ``(I) the increased limit shall be 
                                3 times each of the applicable limits; 
                                and
                                    ``(II) the limit under subsection 
                                (a)(3) shall not apply with respect to 
                                any contribution made with respect to a 
                                candidate if such contribution is made 
                                under the increased limit of 
                                subparagraph (A) during a period in 
                                which the candidate may accept such a 
                                contribution;
                            ``(ii) 4 times the threshold amount, but 
                        not over 10 times that amount--
                                    ``(I) the increased limit shall be 
                                6 times each of the applicable limits; 
                                and
                                    ``(II) the limit under subsection 
                                (a)(3) shall not apply with respect to 
                                any contribution made with respect to a 
                                candidate if such contribution is made 
                                under the increased limit of 
                                subparagraph (A) during a period in 
                                which the candidate may accept such a 
                                contribution; and
                            ``(iii) 10 times the threshold amount--
                                    ``(I) the increased limit shall be 
                                6 times each of the applicable limits;
                                    ``(II) the limit under subsection 
                                (a)(3) shall not apply with respect to 
                                any contribution made with respect to a 
                                candidate if such contribution is made 
                                under the increased limit of 
                                subparagraph (A) during a period in 
                                which the candidate may accept such a 
                                contribution; and
                                    ``(III) subsection (d) shall be 
                                applied with respect to an expenditure 
                                by a State or national committee of a 
                                political party without regard to the 
                                limits under paragraph (3) of such 
                                subsection.
                    ``(D) Opposition personal funds amount.--The 
                opposition personal funds amount is an amount equal to 
                the excess (if any) of--
                            ``(i) the greatest aggregate amount of 
                        expenditures from personal funds (as defined in 
                        section 304(a)(6)(B)) that an opposing 
                        candidate in the same election makes; over
                            ``(ii) the aggregate amount of expenditures 
                        from personal funds made by the candidate with 
                        respect to the election.
            ``(2) Time to accept contributions under increased limit.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                candidate and the candidate's authorized committee 
                shall not accept any contribution under the increased 
                limit under paragraph (1)--
                            ``(i) until the candidate has received 
                        notification of the opposition personal funds 
                        amount under section 304(a)(6)(B); and
                            ``(ii) to the extent that such 
                        contribution, when added to the aggregate 
                        amount of contributions previously accepted 
                        under the increased limits under this 
                        subsection for the election cycle, exceeds 110 
                        percent of the opposition personal funds 
                        amount.
                    ``(B) Effect of withdrawal of an opposing 
                candidate.--A candidate shall not accept any 
                contribution under the increased limit after the date 
                on which an opposing candidate ceases to be a candidate 
                to the extent that the amount of such increased limit 
                is attributable to such an opposing candidate.
            ``(3) Disposal of excess contributions.--
                    ``(A) In general.--The aggregate amount of 
                contributions accepted by a candidate or a candidate's 
                authorized committee under the increased limit under 
                paragraph (1) and not otherwise expended in connection 
                with the election with respect to which such 
                contributions relate shall, not later than 50 days 
                after the date of such election, be used in the manner 
                described in subparagraph (B).
                    ``(B) Return to contributors.--A candidate or a 
                candidate's authorized committee shall return the 
                excess contribution to the person who made the 
                contribution.
                    ``(C) Limitation on repayment of personal loans.--
                With respect to any loan incurred after the date of 
                enactment of the Common Sense Federal Election Reform 
                Act of 2001, any candidate who incurs personal loans in 
                connection with the candidate's campaign for election 
                shall not repay (directly or indirectly), to the extent 
                such loans exceed $250,000, such loans from any 
                contributions made to such candidate or any authorized 
                committee of such candidate after the date of such 
                election.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to calendar years after 2001.
    (b) Notification of Expenditures From Personal Funds.--Section 
304(a)(6) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434(a)(6)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (A) the following:
    ``(B) Notification of expenditure from personal funds.--
            ``(i) Definition of expenditure from personal funds.--In 
        this subparagraph, the term `expenditure from personal funds' 
        means--
                    ``(I) an expenditure made by a candidate using 
                personal funds; and
                    ``(II) a contribution or loan made by a candidate 
                using personal funds (or a loan secured using such 
                funds) to the candidate's authorized committee.
            ``(ii) Declaration of intent.--Not later than the date that 
        is 15 days after the date on which an individual becomes a 
        candidate for the office of Senator, the candidate shall file a 
        declaration stating the total amount of expenditures from 
        personal funds that the candidate intends to make, or to 
        obligate to make, with respect to the election will exceed the 
        State-by-State competitive and fair campaign formula with--
                    ``(I) the Commission; and
                    ``(II) each candidate in the same election.
            ``(iii) Initial notification.--Not later than 24 hours 
        after a candidate described in clause (ii) makes or obligates 
        to make an aggregate amount of expenditures from personal funds 
        in excess of 2 times the threshold amount in connection with 
        any election, the candidate shall file a notification with--
                    ``(I) the Commission; and
                    ``(II) each candidate in the same election.
            ``(iv) Additional notification.--After a candidate files an 
        initial notification under clause (iii) the candidate shall 
        file an additional notification each time expenditures from 
        personal funds are made or obligated to be made in an aggregate 
        amount that exceed $10,000 amount with--
                    ``(I) the Commission; and
                    ``(II) each candidate in the same election.
        Such notification shall be filed not later than 24 hours after 
        the expenditure is made.
            ``(v) Contents.--A notification under clause (iii) or (iv) 
        shall include--
                    ``(I) the name of the candidate and the office 
                sought by the candidate;
                    ``(II) the date and amount of each expenditure; and
                    ``(III) the total amount of expenditures from 
                personal funds that the candidate has made, or 
                obligated to make, with respect to an election as of 
                the date of the expenditure that is the subject of the 
                notification.
    ``(C) Notification of disposal of excess contributions.--As part of 
the next regularly scheduled report submitted after the date of the 
election for which a candidate seeks nomination for election to, or 
election to, Federal office, the candidate or the candidate's 
authorized committee shall submit to the Commission and each candidate 
in the same election a report indicating the source and amount of any 
excess contributions (as determined under paragraph (1) of section 
315(i)) and the manner in which the candidate or the candidate's 
authorized committee used such funds.
    ``(D) Enforcement.--For provisions providing for the enforcement of 
the reporting requirements under this paragraph, see section 309.''.
    (c) Definitions.--Section 301 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 431) is amended by adding at the end the following:
    ``(20) Election cycle.--The term `election cycle' means the period 
beginning on the day after the date of the most recent election for the 
specific office or seat that a candidate is seeking and ending on the 
date of the next election for that office or seat. For purposes of the 
preceding sentence, a primary election and a general election shall be 
considered to be separate elections.
    ``(21) Personal funds.--The term `personal funds' means an amount 
that is derived from--
            ``(A) any asset that, under applicable State law, at the 
        time the individual became a candidate, the candidate had legal 
        right of access to or control over, and with respect to which 
        the candidate had--
                    ``(i) legal and rightful title; or
                    ``(ii) an equitable interest;
            ``(B) income received during the current election cycle of 
        the candidate, including--
                    ``(i) a salary and other earned income from bona 
                fide employment;
                    ``(ii) dividends and proceeds from the sale of the 
                candidate's stocks or other investments;
                    ``(iii) bequests to the candidate;
                    ``(iv) income from trusts established before the 
                beginning of the election cycle;
                    ``(v) income from trusts established by bequest 
                after the beginning of the election cycle of which the 
                candidate is the beneficiary;
                    ``(vi) gifts of a personal nature that had been 
                customarily received by the candidate prior to the 
                beginning of the election cycle; and
                    ``(vii) proceeds from lotteries and similar legal 
                games of chance; and
            ``(C) a portion of assets that are jointly owned by the 
        candidate and the candidate's spouse equal to the candidate's 
        share of the asset under the instrument of conveyance or 
        ownership, but if no specific share is indicated by an 
        instrument of conveyance or ownership, the value of \1/2\ of 
        the property.''.

SEC. 3. INCREASE IN CONTRIBUTION LIMITS.

    (a) Increase in Limits.--Section 315(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$5,000'';
                    (B) in subparagraph (B), by striking ``$20,000'' 
                and inserting ``$60,000''; and
                    (C) in subparagraph (C), by striking ``$5,000'' and 
                inserting ``$15,000''; and
            (2) in paragraph (3), by striking ``$25,000'' and inserting 
        ``$75,000''.
    (b) Increase in Multicandidate Limits.--Section 315(a)(2) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(2)) is 
amended--
            (1) in subparagraph (A), by striking ``$5,000'' and 
        inserting ``$7,500'';
            (2) in subparagraph (B), by striking ``$15,000'' and 
        inserting ``$30,000''; and
            (3) in subparagraph (C), by striking ``$5,000'' and 
        inserting ``$7,500''.
    (c) Increase in Congressional Campaign Committee Limits.--Section 
315(h) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(g)) 
is amended by striking ``$17,500'' and inserting ``$60,000''.
    (d) 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 before ``At the beginning'' the 
                following: ``(A)''; and
                    (C) by adding at the end the following:
    ``(B) Each limitation established by subsection (a), (b), (d), or 
(h) shall be increased by the percent difference determined under 
subparagraph (A).
    ``(C) Each amount increased under subparagraph (B) shall remain in 
effect for the calendar year in which the amount is increased.''; 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.''.

SEC. 4. LIMIT ON SOFT MONEY DONATIONS TO POLITICAL PARTIES.

    (a) Soft Money of National Political Party Committees.--Title III 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is 
amended by adding at the end the following:

``SEC. 323. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

    ``A national committee of a political party, any subordinate 
committee of a national committee, a Senatorial or Congressional 
campaign committee of a national political party, or an entity that is 
directly or indirectly established, financed, maintained, or controlled 
by a national committee or a Senatorial or Congressional campaign 
committee of a national political party or that is an entity acting on 
behalf of a national committee or a Senatorial or Congressional 
campaign committee of a national political party shall not accept 
donations from any person during a calendar year in an aggregate amount 
in excess of $50,000.''.

SEC. 5. INCREASED DISCLOSURE FOR CERTAIN COMMUNICATIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following:
    ``(e) Disclosure of Certain Communications.--
            ``(1) In general.--A person shall file a report under 
        paragraph (2) if the person expends an aggregate amount of 
        funds during a calendar year for communications described in 
        paragraph (3) in excess of--
                    ``(A) $25,000 with respect to a candidate; or
                    ``(B) $100,000 with respect to all candidates.
            ``(2) Report.--
                    ``(A) Time to file.--A report under this paragraph 
                shall be filed in accordance with subsection (a)(4).
                    ``(B) Contents of report.--A report filed under 
                this paragraph shall contain--
                            ``(i) the same information required for an 
                        independent expenditure under subsection (c) 
                        with respect to disbursements made by the 
                        person making the report; and
                            ``(ii) the date and amount of any donation 
                        in an aggregate amount in excess of $200 made 
                        to such person.
            ``(3) Communication described.--A communication described 
        in this paragraph is any communication that--
                    ``(A) is broadcast to the general public through 
                radio or television;
                    ``(B) mentions or refers to by name, 
                representation, or likeness any candidate for election 
                to Federal office;
                    ``(C) the payment for which is not a disbursement 
                described in clause (i) or (iii) of section 301(9)(B); 
                and
                    ``(D) the payment for which is not an independent 
                expenditure.
            ``(4) Reports available on internet.--Not later than 3 
        business days after receiving a report under this subsection, 
        the Commission shall make such report accessible to the public 
        on the Internet.''.

SEC. 6. USE OF UNION DUES FOR PURPOSES UNRELATED TO COLLECTIVE 
              BARGAINING.

    Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b) is amended by adding at the end the following:
    ``(c) Use of Fees by Labor Organizations.--
            ``(1) Authorization required.--
                    ``(A) In general.--Except with the separate, prior, 
                written, voluntary authorization of each individual, it 
                shall be unlawful for any labor organization described 
                in this section to collect from or assess its members 
                or nonmembers any dues, initiation fee, or other 
                payment, if any part of such dues, fee, or payment will 
                be used for activities unrelated to collective 
                bargaining, contract administration, and grievance 
                adjustment.
                    ``(B) Period in effect.--An authorization described 
                in subparagraph (A) shall remain in effect until 
                revoked and may be revoked at any time.
            ``(2) Reduction or refund of fees.--If an individual who is 
        not a member of a labor organization is required to make a 
        payment described in paragraph (1) and does not authorize use 
        of funds under paragraph (1), a labor organization shall--
                    ``(A) reduce any dues, fees, or payment to be 
                collected from such individual by an amount that 
                reasonably reflects the ratio that the organization's 
                expenditures supporting activities unrelated to 
                collective bargaining, contract administration, and 
                grievance adjustment bears to such organization's total 
                expenditures; or
                    ``(B) refund the portion of such dues, fees, or 
                payments collected by the organization in an amount 
                equal to the amount of the total reduction described in 
                subparagraph (A).''.

SEC. 7. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY AND OTHER 
              CRIMINAL PROHIBITIONS.

    (a) Definition of Donation.--Section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431), as amended by section 2, is 
amended by adding at the end the following:
    ``(22) Donation.--The term `donation' means a gift, subscription, 
loan, advance, or deposit of money or anything else of value made by 
any person to a national committee of a political party or a Senatorial 
or Congressional Campaign Committee of a national political party for 
any purpose, but does not include a contribution (as defined in 
paragraph (8)).''.
    (b) Prohibition of Fundraising on Federal Property.--Section 607 of 
title 18, United States Code, is amended--
            (1) in subsection (a), by inserting ``or donation within 
        the meaning of section 301(22)'' after ``section 301(8)''; and
            (2) in subsection (b)--
                    (A) by inserting ``or donations'' after 
                ``contributions'' each place it appears;
                    (B) by inserting ``or donation'' after 
                ``contribution''; and
                    (C) by inserting ``donor'' after ``contributor''.
    (c) Amendment of Title 18 To Include Prohibition of Donations.--
Chapter 29 of title 18, United States Code, is amended--
            (1) in section 602(a)(4), by inserting ``or donation within 
        the meaning of section 301(22)'' after ``section 301(8)''; and
            (2) in section 603(a)--
                    (A) by inserting ``or donation within the meaning 
                of section 301(22)'' after ``section 301(8)''; and
                    (B) by inserting ``or donation'' after 
                ``contribution'' the second and third time it appears.
    (d) Effective Date.--The amendments made by this section shall 
apply to violations occurring on or after the date of enactment of this 
Act.

SEC. 8. CONTRIBUTIONS TO DEFRAY LEGAL EXPENSES OF CERTAIN OFFICIALS.

    (a) Contributions To Defray Legal Expenses.--
            (1) Prohibition on making of contributions.--It shall be 
        unlawful for any person to make a contribution to a candidate 
        for nomination for election to, or election to, a Federal 
        office (as defined in section 301(3) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 431(3))), an individual who is a 
        holder of a Federal office, or the head of any Executive 
        department, or any entity established on behalf of any such 
        individual, to defray legal expenses of such individual--
                    (A) to the extent it would result in the aggregate 
                amount of such contributions from such person to, or on 
                behalf of, such individual to exceed $10,000 for any 
                calendar year; or
                    (B) if the person is--
                            (i) a foreign national (as defined in 
                        section 319(b) of the Federal Election Campaign 
                        Act of 1971 (2 U.S.C. 441e(b))); or
                            (ii) a person prohibited from contributing 
                        to the campaign of a candidate under section 
                        316 of the Federal Election Campaign Act of 
                        1971 (2 U.S.C. 441b).
            (2) Prohibition on acceptance of contributions.--No person 
        shall accept a contribution if the making of the contribution 
        would violate paragraph (1).
            (3) Penalty.--A person that knowingly and willfully commits 
        a violation of paragraph (1) or (2) shall be fined an amount 
        not to exceed the greater of $25,000 or 300 percent of the 
        contribution involved in such violation, imprisoned for not 
        more than 1 year, or both.
            (4) Construction of prohibition.--Nothing in this 
        subsection shall be construed to permit the making of a 
        contribution that is otherwise prohibited by law.
    (b) Reporting Requirements.--A candidate for nomination for 
election to, or election to, a Federal office, an individual who is a 
holder of a Federal office, or the head of any Executive department, or 
any entity established on behalf of any such individual, that accepts 
contributions to defray legal expenses of such individual shall file a 
quarterly report with the Federal Election Commission including the 
following information:
            (1) The name and address of each contributor who makes a 
        contribution in excess of $25.
            (2) The amount of each contribution.
            (3) The name and address of each individual or entity 
        receiving disbursements from the fund composed of such 
        contributions.
            (4) A brief description of the nature and amount of each 
        disbursement.
            (5) The name and address of any provider of pro bono 
        services to the fund.
            (6) The fair market value of any pro bono services provided 
        to the fund.

SEC. 9. INCREASED CRIMINAL PENALTIES FOR VIOLATIONS OF FOREIGN NATIONAL 
              PROVISIONS AND CONTRIBUTIONS IN THE NAME OF ANOTHER.

    Section 309(d)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(d)(1)) is amended by adding at the end the following:
    ``(D) In the case of a person who knowingly and willfully violates 
section 319 or 320, the person shall be fined an amount not to exceed 
$10,000, imprisoned for not more than 10 years, or both.''.

SEC. 10. TERM LIMITS FOR FEDERAL ELECTION COMMISSION.

    (a) In General.--Section 306(a)(2)(A) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 437c(a)(2)(A)) is amended in the matter 
preceding clause (i) by striking ``6 years'' and inserting ``8 years''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to appointments made after the date of enactment of this Act and 
to Commissioners serving a term on the date of enactment of this 
section except that such Commissioner shall continue to serve until the 
expiration of such term.
                                 <all>