[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1316 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1316

To amend the Federal Election Campaign Act of 1971 to repeal the limit 
 on the aggregate amount of campaign contributions that may be made by 
individuals during an election cycle, to repeal the limit on the amount 
     of expenditures political parties may make on behalf of their 
candidates in general elections for Federal office, to allow State and 
 local parties to make certain expenditures using nonfederal funds, to 
   restore certain rights to exempt organizations under the Internal 
             Revenue Code of 1986, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 2005

  Mr. Pence (for himself and Mr. Wynn) 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 repeal the limit 
 on the aggregate amount of campaign contributions that may be made by 
individuals during an election cycle, to repeal the limit on the amount 
     of expenditures political parties may make on behalf of their 
candidates in general elections for Federal office, to allow State and 
 local parties to make certain expenditures using nonfederal funds, to 
   restore certain rights to exempt organizations under the Internal 
             Revenue Code of 1986, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``527 Fairness Act of 2005''.

SEC. 2. REPEAL OF AGGREGATE LIMIT ON CONTRIBUTIONS BY INDIVIDUALS.

    (a) Repeal of Limit.--Section 315(a) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by striking 
paragraph (3).
    (b) Conforming Amendments.--
            (1) Indexing.--Section 315(c) of such Act (2 U.S.C. 
        441a(c)) is amended by striking ``(a)(3),'' each place it 
        appears in paragraphs (1)(B)(i), (1)(C), and (2)(B)(ii).
            (2) Increase in limits for senate candidates facing wealthy 
        opponents.--Section 315(i)(1)(C) of such Act (2 U.S.C. 
        441a(i)(1)(C)) is amended--
                    (A) by amending clause (i) to read as follows:
                            ``(i) 2 times the threshold amount, but not 
                        over 4 times that amount, the increased limit 
                        shall be 3 times the applicable limit;'';
                    (B) by amending clause (ii) to read as follows:
                            ``(ii) 4 times the threshold amount, but 
                        not over 10 times that amount, the increased 
                        limit shall be 6 times the applicable limit; 
                        and''; and
                    (C) in clause (iii)--
                            (i) by adding ``and'' at the end of 
                        subclause (I),
                            (ii) by striking subclause (II), and
                            (iii) by redesignating subclause (III) as 
                        subclause (II).
            (3) Increase in limits for house candidates facing wealthy 
        opponents.--Section 315A(a)(1) of such Act (2 U.S.C. 441a-
        1(a)(1)) is amended--
                    (A) by adding ``and'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).

SEC. 3. REPEAL OF LIMIT ON AMOUNT OF PARTY EXPENDITURES ON BEHALF OF 
              CANDIDATES IN GENERAL ELECTIONS.

    (a) Repeal of Limit.--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 striking ``(1) Notwithstanding'' and 
                inserting ``Notwithstanding'',
                    (B) by striking ``expenditures or limitations on'' 
                and inserting ``amounts of expenditures or 
                contributions'', and
                    (C) by striking ``Federal office, subject to the 
                limitations contained in paragraphs (2), (3), and (4) 
                of this subsection'' and inserting ``Federal office in 
                any amount''; and
            (2) by striking paragraphs (2), (3), and (4).
    (b) Conforming Amendments.--
            (1) Indexing.--Section 315(c) of such Act (2 U.S.C. 
        441a(c)) is amended--
                    (A) in paragraph (1)(B)(i), by striking ``(d),''; 
                and
                    (B) in paragraph (2)(B)(i), by striking 
                ``subsections (b) and (d)'' and inserting ``subsection 
                (b)''.
            (2) Increase in limits for senate candidates facing wealthy 
        opponents.--Section 315(i) of such Act (2 U.S.C. 441a(i)(1)) is 
        amended--
                    (A) in paragraph (1)(C), as amended by section 
                2(b)(2)(C), by amending clause (iii) to read as 
                follows:
                            ``(iii) 10 times the threshold amount, the 
                        increased limit shall be 6 times the applicable 
                        limit.'';
                    (B) in paragraph (2)(A) in the matter preceding 
                clause (i), by striking ``, and a party committee shall 
                not make any expenditure,'';
                    (C) in paragraph (2)(A)(ii), by striking ``and 
                party expenditures previously made''; and
                    (D) in paragraph (2)(B), by striking ``and a party 
                shall not make any expenditure''.
            (3) Increase in limits for house candidates facing wealthy 
        opponents.--Section 315A(a) of such Act (2 U.S.C. 441a-1(a)) is 
        amended--
                    (A) in paragraph (1), as amended by section 
                2(b)(3), by striking ``exceeds $350,000--'' and all 
                that follows and inserting the following: ``exceeds 
                $350,000, the limit under subsection (a)(1)(A) with 
                respect to the candidate shall be tripled.'';
                    (B) in paragraph (3)(A) in the matter preceding 
                clause (i), ``, and a party committee shall not make 
                any expenditure,'';
                    (C) in paragraph (3)(A)(ii), by striking ``and 
                party expenditures previously made''; and
                    (D) in paragraph (3)(B), by striking ``and a party 
                shall not make any expenditure''.

SEC. 4. INDEXING OF LIMITS ON AMOUNT OF CONTRIBUTIONS MADE TO OR BY 
              MULTICANDIDATE POLITICAL COMMITTEES.

    (a) Indexing.--Section 315(c)(1) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(c)(1)) is amended by inserting after 
``(a)(1)(B)'' each place it appears in subparagraphs (B)(i) and (C) the 
following: ``(a)(1)(C), (a)(2),''.
    (b) Timing of Increase.--Section 315(c)(1)(B) of such Act (2 U.S.C. 
441a(c)(1)(B)) is amended in the matter preceding clause (i) by 
striking ``after 2002'' and inserting ``after 2002 (or, in the case of 
the limitations established under subsection (a)(1)(C) or (a)(2), after 
2004)''.
    (c) Determination of Base Year.--Section 315(c)(2)(B) of such Act 
(2 U.S.C. 441a(c)(2)(B)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                    ``(iii) for purposes of subsections (a)(1)(C) and 
                (a)(2), calendar year 2003.''.

SEC. 5. PERMITTING EXPENDITURES FOR ELECTIONEERING COMMUNICATIONS BY 
              CERTAIN ORGANIZATIONS.

    (a) Permitting Organizations to Make Expenditures for Certain 
Targeted Electioneering Communications.--Section 316(c) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441b(c)) is amended by striking 
paragraph (6).
    (b) Expanding Types of Organizations Eligible to Make 
Expenditures.--
            (1) In general.--Section 316(c) of such Act (2 U.S.C. 
        441b(c)) is amended by striking ``section 501(c)(4) 
        organization'' each place it appears in paragraphs (2), (3)(A), 
        and (4)(B) and inserting ``section 501(c)(4), (5), or (6) 
        organization''.
            (2) Definition.--Section 316(c)(4)(A)(i) of such Act (2 
        U.S.C. 441b(c)(4)(A)(i)) is amended by striking ``section 
        501(c)(4) of the Internal Revenue Code of 1986'' and inserting 
        ``paragraph (4), (5), or (6) of section 501(c) of the Internal 
        Revenue Code of 1986''.
    (c) Clarification of Effect on Tax Treatment of Expenditures.--
Section 316(c)(5) of such Act (2 U.S.C. 441b(c)(5)) is amended by 
striking the period at the end and inserting the following: ``, or to 
affect the treatment under such Code of any expenditures described in 
section 527(e) of such Code which are made by a section 501(c)(4), (5), 
or (6) organization.''.

SEC. 6. EXPANDING ABILITY OF CORPORATIONS AND LABOR ORGANIZATIONS TO 
              COMMUNICATE WITH MEMBERS.

    (a) Types of Communications Permitted.--Section 316(b)(4)(B) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441b(b)(4)(B)) is 
amended by striking ``only by mail addressed'' and inserting ``only by 
communications addressed or otherwise delivered''.
    (b) Solicitations by Trade Associations.--Section 316(b)(4)(D) of 
such Act (2 U.S.C. 441b(b)(4)(D)) is amended by striking ``to the 
extent that'' and all that follows and inserting a period.

SEC. 7. PERMITTING STATE AND LOCAL POLITICAL PARTIES TO USE NONFEDERAL 
              FUNDS FOR VOTER REGISTRATION AND SAMPLE BALLOTS.

    (a) In General.--Section 301(20) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(20)) is amended--
            (1) in subparagraph (A), by striking clause (i) and 
        redesignating clauses (ii) through (iv) as clauses (i) through 
        (iii); and
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``subparagraph 
                (A)(i) or (ii)'' and inserting ``subparagraph (A)(i)'';
                    (B) by striking ``and'' at the end of clause (iii);
                    (C) by striking the period at the end of clause 
                (iv); and
                    (D) by adding at the end the following new clauses:
                            ``(v) voter registration activities; and
                            ``(vi) the costs incurred with the 
                        preparation of a sample ballot for an election 
                        in which a candidate for Federal office and a 
                        candidate for State or local office appears on 
                        the ballot, if the sample ballot includes the 
                        names of every candidate for Federal office 
                        listed on the sample ballot.''.
    (b) Conforming Amendments.--(1) Section 304(f)(3)(B)(iv) of such 
Act (2 U.S.C. 434(f)(3)(B)(iv)) is amended by striking ``section 
301(20)(A)(iii)'' and inserting ``section 301(20)(A)(ii)''.
    (2) Section 323 of such Act (2 U.S.C. 441i) is amended--
            (A) in subsection (b)(2)(A), by striking ``clause (i) or 
        (ii)'' and inserting ``clause (i)'';
            (B) in subsection (e)(4), by striking ``clauses (i) and 
        (ii)'' each place it appears in subparagraphs (A) and (B) and 
        inserting ``clause (i)''; and
            (C) in subsection (f), by striking ``section 
        301(20)(A)(iii)'' and inserting ``section 301(20)(A)(ii)''.

SEC. 8. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to 
elections for Federal office occurring after 2004.
                                 <all>