[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4975 Engrossed in House (EH)]


  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
109th CONGRESS
  2d Session
                                H. R. 4975

_______________________________________________________________________

                                 AN ACT


 
To provide greater transparency with respect to lobbying activities, to 
    amend the Federal Election Campaign Act of 1971 to clarify when 
organizations described in section 527 of the Internal Revenue Code of 
  1986 must register as political committees, 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 ``Lobbying 
Accountability and Transparency Act of 2006'' and ``527 Reform Act of 
2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                 TITLE I--ENHANCING LOBBYING DISCLOSURE

Sec. 101. Quarterly filing of lobbying disclosure reports.
Sec. 102. Electronic filing of lobbying registrations and disclosure 
                            reports.
Sec. 103. Public database of lobbying disclosure information.
Sec. 104. Disclosure by registered lobbyists of past executive branch 
                            and congressional employment.
Sec. 105. Disclosure of lobbyist contributions and gifts.
Sec. 106. Increased penalty for failure to comply with lobbying 
                            disclosure requirements.
Sec. 107. Penalties for offering gifts.
                  TITLE II--SLOWING THE REVOLVING DOOR

Sec. 201. Notification of post-employment restrictions.
Sec. 202. Disclosure by Members of the House of Representatives of 
                            employment negotiations.
Sec. 203. Wrongfully influencing, on a partisan basis, an entity's 
                            employment decisions or practices.
  TITLE III--SUSPENSION OF PRIVATELY-FUNDED TRAVEL; CURBING LOBBYIST 
                                 GIFTS

Sec. 301. Pre-certification of privately funded travel.
Sec. 302. Recommendations from the Committee on Standards of Official 
                            Conduct on gifts.
Sec. 303. Prohibiting registered lobbyists on corporate flights.
Sec. 304. Valuation of tickets to sporting and entertainment events.
            TITLE IV--OVERSIGHT OF LOBBYING AND ENFORCEMENT

Sec. 401. Audits of lobbying reports by House Inspector General.
Sec. 402. House Inspector General review and annual reports.
                     TITLE V--INSTITUTIONAL REFORMS

Sec. 501. Earmarking reform.
Sec. 502. Mandatory ethics training for House employees.
Sec. 503. Biennial publication of ethics manual.
              TITLE VI--FORFEITURE OF RETIREMENT BENEFITS

Sec. 601. Loss of pensions accrued during service as a Member of 
                            Congress for abusing the public trust.
                       TITLE VII--LEADERSHIP PACS

Sec. 701. Restrictions on disposition of funds by leadership PACS.
               TITLE VIII--ETHICS TRAINING FOR LOBBYISTS

Sec. 801. Ethics training for lobbyists.
                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. Bribery.
                    TITLE X--527 REFORM ACT OF 2006

Sec. 1001. Short title.
Sec. 1002. Treatment of section 527 organizations.
Sec. 1003. Rules for allocation of expenses between Federal and non-
                            Federal activities.
Sec. 1004. Repeal of limit on amount of party expenditures on behalf of 
                            candidates in general elections.
Sec. 1005. Construction.
Sec. 1006. Judicial review.
Sec. 1007. Effective date.

                 TITLE I--ENHANCING LOBBYING DISCLOSURE

SEC. 101. QUARTERLY FILING OF LOBBYING DISCLOSURE REPORTS.

    (a) Quarterly Filing Required.--Section 5 of the Lobbying 
Disclosure Act of 1995 (in this title referred to as the ``Act'') (2 
U.S.C. 1604) is amended--
            (1) in subsection (a)--
                    (A) in the heading, by striking ``Semiannual'' and 
                inserting ``Quarterly'';
                    (B) by striking ``45'' and inserting ``20'';
                    (C) by striking ``the semiannual period'' and all 
                that follows through ``July of each year'' and insert 
                ``the quarterly period beginning on the first day of 
                January, April, July, and October of each year''; and
                    (D) by striking ``such semiannual period'' and 
                insert ``such quarterly period''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``semiannual report'' and inserting 
                ``quarterly report'';
                    (B) in paragraph (2), by striking ``semiannual 
                filing period'' and inserting ``quarterly period'';
                    (C) in paragraph (3), by striking ``semiannual 
                period'' and inserting ``quarterly period''; and
                    (D) in paragraph (4), by striking ``semiannual 
                filing period'' and inserting ``quarterly period''.
    (b) Conforming Amendments.--
            (1) Definition.--Section 3(10) of the Act (2 U.S.C. 
        1602(10)) is amended by striking ``six month period'' and 
        inserting ``3-month period''.
            (2) Registration.--Section 4 of the Act (2 U.S.C. 1603) is 
        amended--
                    (A) in subsection (a)(3)(A), by striking 
                ``semiannual period'' and inserting ``quarterly 
                period''; and
                    (B) in subsection (b)(3)(A), by striking 
                ``semiannual period'' and inserting ``quarterly 
                period''.
            (3) Enforcement.--Section 6(6) of the Act (2 U.S.C. 
        1605(6)) is amended by striking ``semiannual period'' and 
        inserting ``quarterly period''.
            (4) Estimates.--Section 15 of the Act (2 U.S.C. 1610) is 
        amended--
                    (A) in subsection (a)(1), by striking ``semiannual 
                period'' and inserting ``quarterly period''; and
                    (B) in subsection (b)(1), by striking ``semiannual 
                period'' and inserting ``quarterly period''.
            (5) Dollar amounts.--
                    (A) Registration.--Section 4 of the Act (2 U.S.C. 
                1603) is amended--
                            (i) in subsection (a)(3)(A)(i), by striking 
                        ``$5,000'' and inserting ``$2,500'';
                            (ii) in subsection (a)(3)(A)(ii), by 
                        striking ``$20,000'' and inserting ``$10,000'';
                            (iii) in subsection (b)(3)(A), by striking 
                        ``$10,000'' and inserting ``$5,000''; and
                            (iv) in subsection (b)(4), by striking 
                        ``$10,000'' and inserting ``$5,000''.
                    (B) Reports.--Section 5(c) of the Act (2 U.S.C. 
                1604(c)) is amended--
                            (i) in paragraph (1), by striking 
                        ``$10,000'' and ``$20,000'' and inserting 
                        ``$5,000'' and ``$1,000'', respectively; and
                            (ii) in paragraph (2), by striking 
                        ``$10,000'' both places such term appears and 
                        inserting ``$5,000''.

SEC. 102. ELECTRONIC FILING OF LOBBYING REGISTRATIONS AND DISCLOSURE 
              REPORTS.

    (a) Registrations.--Section 4 of the Act (2 U.S.C. 1603) is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Electronic Filing Required.--A registration required to be 
filed under this section on or after the date of enactment of the 
Lobbying Accountability and Transparency Act of 2006 shall be filed in 
electronic form, in addition to any other form that may be required by 
the Secretary of the Senate or the Clerk of the House of 
Representatives. The due date for a registration filed in electronic 
form shall be no later than the due date for a registration filed in 
any other form.''.
    (b) Reports.--Section 5 of the Act (2 U.S.C. 1604) is amended by 
adding at the end the following:
    ``(d) Electronic Filing Required.--
            ``(1) In general.--A report required to be filed under this 
        section shall be filed in electronic form, in addition to any 
        other form that may be required by the Secretary of the Senate 
        or the Clerk of the House of Representatives. The due date for 
        a report filed in electronic form shall be no later than the 
        due date for a report filed in any other form, except as 
        provided in paragraph (2).
            ``(2) Extension of time to file in electronic form.--The 
        Secretary of the Senate or the Clerk of the House of 
        Representatives may establish a later due date for the filing 
        of a report in electronic form by a registrant, if and only 
        if--
                    ``(A) on or before the original due date, the 
                registrant--
                            ``(i) timely files the report in every form 
                        required, other than electronic form; and
                            ``(ii) makes a request for such a later due 
                        date to the Secretary or the Clerk, as the case 
                        may be; and
                    ``(B) the request is supported by good cause 
                shown.''.

SEC. 103. PUBLIC DATABASE OF LOBBYING DISCLOSURE INFORMATION.

    (a) Database Required.--Section 6 of the Act (2 U.S.C. 1605) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(9) maintain, and make available to the public over the 
        Internet, without a fee or other access charge, in a 
        searchable, sortable, and downloadable manner, an electronic 
        database that--
                    ``(A) includes the information contained in 
                registrations and reports filed under this Act;
                    ``(B) directly links the information it contains to 
                the information disclosed in reports filed with the 
                Federal Election Commission under section 304 of the 
                Federal Election Campaign Act of 1971 (2 U.S.C. 434); 
                and
                    ``(C) is searchable and sortable, at a minimum, by 
                each of the categories of information described in 
                sections 4(b) and 5(b).''.
    (b) Availability of Reports.--Section 6(4) of the Act is amended by 
inserting before the semicolon the following: ``and, in the case of a 
registration filed in electronic form pursuant to section 4(d) or a 
report filed in electronic form pursuant to section 5(d), shall make 
such registration or report (as the case may be) available for public 
inspection over the Internet not more than 48 hours after the 
registration or report (as the case may be) is approved as received by 
the Secretary of the Senate or the Clerk of the House of 
Representatives (as the case may be)''.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out paragraph (9) 
of section 6 of the Act, as added by subsection (a) of this section.

SEC. 104. DISCLOSURE BY REGISTERED LOBBYISTS OF PAST EXECUTIVE BRANCH 
              AND CONGRESSIONAL EMPLOYMENT.

    Section 4(b)(6) of the Act (2 U.S.C. 1603(b)(6)) is amended by 
striking ``2 years'' and inserting ``7 years''.

SEC. 105. DISCLOSURE OF LOBBYIST CONTRIBUTIONS AND GIFTS.

    (a) In General.--Section 5(b) of the Act (2 U.S.C. 1604(b)) is 
amended--
            (1) in paragraph (3), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (4), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(5) for each registrant (and for any political committee, 
        as defined in 301(4) of the Federal Election Campaign Act of 
        1971 (2 U.S.C. 431(4)), affiliated with the registrant), and 
        for each employee listed as a lobbyist by the registrant under 
        paragraph (2)(C), the name of each Federal candidate or 
        officeholder, and of each leadership PAC, political party 
        committee, or other political committee to whom a contribution 
        was made which is required to be reported to the Federal 
        Election Commission by the recipient, and the date and amount 
        of such contribution;
            ``(6) the date, recipient, and amount of any gift that 
        under the Rules of the House of Representatives counts towards 
        the cumulative annual limit described in such rules and is 
        given to a covered legislative branch official by the 
        registrant or an employee listed as a lobbyist by the 
        registrant under paragraph (2)(C); and
            ``(7) the date, recipient, and amount of funds contributed 
        by the registrant or an employee listed as a lobbyist by the 
        registrant under paragraph (2)(C)--
                    ``(A) to, or on behalf of, an entity that is named 
                for a covered legislative branch official, or to a 
                person or entity in recognition of such official; or
                    ``(B) to an entity established, financed, 
                maintained, or controlled by a covered legislative 
                branch official;
        except that this paragraph shall not apply to any payment or 
        reimbursement made from funds required to be reported under 
        section 304 of the Federal Election Campaign Act of 1971 (2 
        U.S.C. 434).''.
    (b) Factors to be Considered to Determine Relationship Between 
Officials and Other Entities.--Section 5 of the Act (2 U.S.C. 1604), as 
amended by section 102(b) of this Act, is amended by adding at the end 
the following new subsection:
    ``(e) Factors to Determine Relationship Between Officials and Other 
Entities.--
            ``(1) In general.--In determining under subsection 
        (b)(7)(B) whether a covered legislative branch official 
        directly or indirectly established, finances, maintains, or 
        controls an entity, the factors described in paragraph (2) 
        shall be examined in the context of the overall relationship 
        between that covered official and the entity to determine 
        whether the presence of any such factor or factors is evidence 
        that the covered official directly or indirectly established, 
        finances, maintains, or controls the entity.
            ``(2) Factors.--The factors referred to in paragraph (1) 
        include, but are not limited to, the following:
                    ``(A) Whether the covered official, directly or 
                through its agent, owns a controlling interest in the 
                voting stock or securities of the entity.
                    ``(B) Whether the covered official, directly or 
                through its agent, has the authority or ability to 
                direct or participate in the governance of the entity 
                through provisions of constitutions, bylaws, contracts, 
                or other rules, or through formal or informal practices 
                or procedures.
                    ``(C) Whether the covered official, directly or 
                through its agent, has the authority or ability to 
                hire, appoint, demote, or otherwise control the 
                officers or other decisionmaking employees or members 
                of the entity.
                    ``(D) Whether the covered official has a common or 
                overlapping membership with the entity that indicates a 
                formal or ongoing relationship between the covered 
                official and the entity.
                    ``(E) Whether the covered official has common or 
                overlapping officers or employees with the entity that 
                indicates a formal or ongoing relationship between the 
                covered official and the entity.
                    ``(F) Whether the covered official has any members, 
                officers, or employees who were members, officers, or 
                employees of the entity that indicates a formal or 
                ongoing relationship between the covered official and 
                the entity, or that indicates the creation of a 
                successor entity.
                    ``(G) Whether the covered official, directly or 
                through its agent, provides funds or goods in a 
                significant amount or on an ongoing basis to the 
                entity, such as through direct or indirect payments for 
                administrative, fundraising, or other costs.
                    ``(H) Whether the covered official, directly or 
                through its agent, causes or arranges for funds in a 
                significant amount or on an ongoing basis to be 
                provided to the entity.
                    ``(I) Whether the covered official, directly or 
                through its agent, had an active or significant role in 
                the formation of the entity.
                    ``(J) Whether the covered official and the entity 
                have similar patterns of receipts or disbursements that 
                indicate a formal or ongoing relationship between the 
                covered official and the entity.''.
    (c) Conforming Amendment.--Section 3 of the Act (2 U.S.C. 1602) is 
amended by adding at the end the following new paragraphs:
            ``(17) Gift.--The term `gift' means a gratuity, favor, 
        discount, entertainment, hospitality, loan, forbearance, or 
        other item having monetary value. The term includes gifts of 
        services, training, and meals, whether provided in kind, by 
        purchase of a ticket, payment in advance, or reimbursement 
        after the expense has been incurred.
            ``(18) Leadership PAC.--The term `leadership PAC' means, 
        with respect to an individual holding Federal office, an 
        unauthorized political committee (as defined in the Federal 
        Election Campaign Act of 1971) which is associated with such 
        individual.''.

SEC. 106. INCREASED PENALTY FOR FAILURE TO COMPLY WITH LOBBYING 
              DISCLOSURE REQUIREMENTS.

    Section 7 of the Act (2 U.S.C. 1606) is amended--
            (1) by striking ``Whoever'' and inserting ``(a) Civil 
        Penalty.--Whoever'';
            (2) by striking ``$50,000'' and inserting ``$100,000''; and
            (3) by adding at the end the following:
    ``(b) Criminal Penalty.--
            ``(1) In general.--Whoever knowingly and willfully fails to 
        comply with any provision of this Act shall be imprisoned not 
        more than 3 years, or fined under title 18, United States Code, 
        or both.
            ``(2) Corruptly.--Whoever knowingly, willfully, and 
        corruptly fails to comply with any provision of this Act shall 
        be imprisoned not more than 5 years, or fined under title 18, 
        United States Code, or both.''.

SEC. 107. PENALTIES FOR OFFERING GIFTS.

    Section 7 of the Act (2 U.S.C. 1606), as amended by section 106, is 
amended by adding at the end the following:
    ``(c) Penalties for Offering Gifts.--
            ``(1) In general.--Any person who is--
                    ``(A) a lobbyist registered under this Act,
                    ``(B) a lobbyist who is an employee of an 
                organization registered under this Act, or
                    ``(C) the client of any such lobbyist or 
                organization,
        and who offers to a covered legislative branch official of the 
        House of Representatives any gift, knowing that such gift 
        violates the rules of the House of Representatives, shall, upon 
        proof thereof by a preponderance of the evidence, be subject to 
        a civil fine of not more than $50,000.
            ``(2) Definition.--In this subsection, the term `covered 
        legislative branch official of the House of Representatives' 
        means--
                    ``(A) a Representative in, or Delegate or Resident 
                Commissioner to, the Congress; and
                    ``(B) an employee of, or any other individual 
                functioning in the capacity of an employee of--
                            ``(i) an individual described in 
                        subparagraph (A);
                            ``(ii) a committee of the House of 
                        Representatives;
                            ``(iii) the leadership staff of the House 
                        of Representatives;
                            ``(iv) a joint committee of Congress; or
                            ``(v) a working group or caucus organized 
                        to provide legislative services to individuals 
                        described in subparagraph (A).''.

                  TITLE II--SLOWING THE REVOLVING DOOR

SEC. 201. NOTIFICATION OF POST-EMPLOYMENT RESTRICTIONS.

    Section 207(e) of title 18, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(8) Notification of post-employment restrictions.--After 
        a Member of the House of Representatives or an elected officer 
        of the House of Representatives leaves office, or after the 
        termination of employment with the House of Representatives of 
        an employee of the House of Representatives covered under 
        paragraph (2), (3), or (4), the Clerk of the House of 
        Representatives, after consultation with the Committee on 
        Standards of Official Conduct, shall inform the Member, 
        officer, or employee of the beginning and ending date of the 
        prohibitions that apply to the Member, officer, or employee 
        under this subsection, and also inform each office of the House 
        of Representatives with respect to which such prohibitions 
        apply of those dates.''.

SEC. 202. DISCLOSURE BY MEMBERS OF THE HOUSE OF REPRESENTATIVES OF 
              EMPLOYMENT NEGOTIATIONS.

    The Code of Official Conduct set forth in rule XXIII of the Rules 
of the House of Representatives is amended by redesignating clause 14 
as clause 15 and by inserting after clause 13 the following new clause:
            ``14. (a) A Member, Delegate, or Resident Commissioner 
        shall file with the Committee on Standards of Official Conduct 
        a statement that he or she is negotiating compensation for 
        prospective employment or has any arrangement concerning 
        prospective employment if a conflict of interest or the 
        appearance of a conflict of interest may exist. Such statement 
        shall be made within 5 days (other than Saturdays, Sundays, or 
        public holidays) after commencing the negotiation for 
        compensation or entering into the arrangement.
            ``(b) A Member, Delegate, or Resident Commissioner should 
        refrain from voting on any legislative measure pending before 
        the House or any committee thereof if the negotiation described 
        in subparagraph (a) may create a conflict of interest.''.

SEC. 203. WRONGFULLY INFLUENCING, ON A PARTISAN BASIS, AN ENTITY'S 
              EMPLOYMENT DECISIONS OR PRACTICES.

    The Code of Official Conduct set forth in rule XXIII of the Rules 
of the House of Representatives (as amended by section 202) is further 
amended by redesignating clause 15 as clause 16 and by inserting after 
clause 14 the following new clause:
            ``15. A Member, Delegate, Resident Commissioner, officer, 
        or employee of the House may not, with the intent to influence 
        on the basis of political party affiliation an employment 
        decision or employment practice of any private or public entity 
        (except for the Congress)--
                    ``(a) take or withhold, or offer or threaten to 
                take or withhold, an official act; or
                    ``(b) influence, or offer or threaten to influence, 
                the official act of another.''.

  TITLE III--SUSPENSION OF PRIVATELY-FUNDED TRAVEL; CURBING LOBBYIST 
                                 GIFTS

SEC. 301 PRE-CERTIFICATION OF PRIVATELY FUNDED TRAVEL.

    (a) Acceptance of Privately Funded Travel.--Notwithstanding clause 
5 of rule XXV of the Rules of the House of Representatives, no Member, 
Delegate, Resident Commissioner, officer, or employee of the House may 
accept a gift of travel related to his official duties (including any 
transportation, lodging, and meals during such travel) from any private 
source unless the private source first obtains a certification in 
writing from the Committee on Standards of Official Conduct that the 
gift of travel complies with all House rules and standards of conduct.
    (b) Review and Recommendations.--(1) The Committee on Standards of 
Official Conduct may not issue any such certification until it reports 
its recommendations on changes to rule XXV to the Committee on Rules 
unless two-thirds of the Members of the Committee, present and voting 
in the affirmative, vote to issue such certification. The Committee on 
Standards of Official Conduct shall report its recommendations to the 
Committee on Rules not later than June 15, 2006.
    (2) In developing such recommendations, the Committee on Standards 
of Official Conduct shall--
            (A) survey public reports of registered lobbyist and 
        registered foreign agent-related private travel, as well as 
        public reports of late or inaccurate disclosure of private 
        travel; and
            (B) consider--
                    (i) The ability of the current provisions of rule 
                XXV regarding travel to protect the House, its Members, 
                officers, and employees, from the appearance of 
                impropriety.
                    (ii) With respect to the allowance for privately-
                funded travel contained in clause 5(b) of rule XXV--
                            (I) the degree to which the privately-
                        funded travel meets the representational needs 
                        of the House, its Members, officers, and 
                        employees;
                            (II) whether certain entities should or 
                        should not be permitted to fund the travel of 
                        the Members, officers, and employees of the 
                        House, what sources of funding may be 
                        permissible, and what other individuals may 
                        participate in that travel; and
                            (III) the adequacy of the current system of 
                        approval and disclosure of such travel.

SEC. 302 RECOMMENDATIONS FROM THE COMMITTEE ON STANDARDS OF OFFICIAL 
              CONDUCT ON GIFTS.

    The Committee on Standards of Official Conduct shall report its 
recommendations on changes to rule XXV of the Rules of the House of 
Representatives regarding the exceptions to the limitation on the 
acceptance of gifts contained in clause 5(a) of that rule to the 
Committee on Rules. In developing its recommendations, the Committee on 
Standards of Official Conduct shall consider the following:

SEC. 303. PROHIBITING REGISTERED LOBBYISTS ON CORPORATE FLIGHTS.

    The Lobbying Disclosure Act of 1995 is amended by inserting after 
section 5 the following new section:

``SEC. 5A. PROHIBITING REGISTERED LOBBYISTS ON CORPORATE FLIGHTS.

    ``If a Representative in, or Delegate or Resident Commissioner to, 
the Congress, or an officer or employee of the House of 
Representatives, is a passenger or crew member on a flight of an 
aircraft that is not licensed by the Federal Aviation Administration to 
operate for compensation or hire and that is owned or operated by a 
person who is the client of a lobbyist or a lobbying firm, then such 
lobbyist may not be a passenger or crew member on that flight.''.

SEC. 304. VALUATION OF TICKETS TO SPORTING AND ENTERTAINMENT EVENTS.

    Clause 5(a)(2)(A) of rule XXV of the Rules of the House of 
Representatives is amended by--
            (1) inserting ``(i)'' after ``(A)''; and
            (2) adding at the end the following:
    ``(ii) A gift of a ticket to a sporting or entertainment event 
shall be valued at the face value of the ticket, provided that in the 
case of a ticket without a face value, the ticket shall be valued at 
the highest cost of a ticket with a face value for the event.''.

            TITLE IV--OVERSIGHT OF LOBBYING AND ENFORCEMENT

SEC. 401. AUDITS OF LOBBYING REPORTS BY HOUSE INSPECTOR GENERAL.

    (a) Access to Lobbying Reports.--The Office of Inspector General of 
the House of Representatives shall have access to all lobbyists' 
disclosure information received by the Clerk of the House of 
Representatives under the Lobbying Disclosure Act of 1995 and shall 
conduct random audits of lobbyists' disclosure information as necessary 
to ensure compliance with that Act.
    (b) Referral Authority.--The Office of the Inspector General of the 
House of Representatives may refer potential violations by lobbyists of 
the Lobbying Disclosure Act of 1995 to the Department of Justice for 
disciplinary action.

SEC. 402. HOUSE INSPECTOR GENERAL REVIEW AND ANNUAL REPORTS.

    (a) Ongoing Review Required.--The Inspector General of the House of 
Representatives shall review on an ongoing basis the activities carried 
out by the Clerk of the House of Representatives under section 6 of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1605). The review shall 
emphasize--
            (1) the effectiveness of those activities in securing the 
        compliance by lobbyists with the requirements of that Act; and
            (2) whether the Clerk has the resources and authorities 
        needed for effective oversight and enforcement of that Act.
    (b) Annual Reports.--Not later than December 31 of each year, the 
Inspector General of the House of Representatives shall submit to the 
House of Representatives a report on the review required by subsection 
(a). The report shall include the Inspector General's assessment of the 
matters required to be emphasized by that subsection and any 
recommendations of the Inspector General to--
            (1) improve the compliance by lobbyists with the 
        requirements of the Lobbying Disclosure Act of 1995; and
            (2) provide the Clerk of the House of Representatives with 
        the resources and authorities needed for effective oversight 
        and enforcement of that Act.

                     TITLE V--INSTITUTIONAL REFORMS

SEC. 501. EARMARKING REFORM.

    (a) In the House of Representatives, it shall not be in order to 
consider--
            (1) a general appropriation bill reported by the Committee 
        on Appropriations unless the report includes a list of earmarks 
        in the bill or in the report (and the names of Members who 
        submitted requests to the Committee on Appropriations for 
        earmarks included in such list); or
            (2) a conference report to accompany a general 
        appropriation bill unless the joint explanatory statement 
        prepared by the managers on the part of the House and the 
        managers on the part of the Senate includes a list of earmarks 
        in the conference report or joint statement (and the names of 
        Members who submitted requests to the Committee on 
        Appropriations for earmarks included in such list) that were--
                    (A) not committed to the conference committee by 
                either House;
                    (B) not in the report specified in paragraph (1); 
                and
                    (C) not in a report of a committee of the Senate on 
                a companion measure.
    (b) In the House of Representatives, it shall not be in order to 
consider a rule or order that waives the application of subsection 
(a)(2).
    (c)(1) A point of order raised under subsection (a)(1) may be based 
only on the failure of a report of the Committee on Appropriations to 
include the list required by subsection (a)(1).
            (2) As disposition of a point of order under subsection 
        (a), the Chair shall put the question of consideration with 
        respect to the proposition that is the subject of the point of 
        order.
            (3) As disposition of a point of order under subsection (b) 
        with respect to a rule or order relating to a conference 
        report, the Chair shall put the question of consideration as 
        follows: ``Shall the House now consider the resolution 
        notwithstanding the assertion of [the maker of the point of 
        order] that the object of the resolution introduces a new 
        earmark or new earmarks?''.
            (4) The question of consideration under this subsection 
        shall be debatable for 15 minutes by the Member initiating the 
        point of order and for 15 minutes by an opponent, but shall 
        otherwise be decided without intervening motion except one that 
        the House adjourn.
    (d)(1) For the purpose of this resolution, the term ``earmark'' 
means a provision in a bill or conference report, or language in an 
accompanying committee report or joint statement of managers, providing 
or recommending a specific amount of discretionary budget authority to 
a non-Federal entity, if such entity is specifically identified in the 
report or bill; or if the discretionary budget authority is allocated 
outside of the normal formula-driven or competitive bidding process and 
is targeted or directed to an identifiable person, specific State, or 
congressional district.
    (2) For the purpose of subsection (a), government-sponsored 
enterprises, Federal facilities, and Federal lands shall be considered 
Federal entities.
    (3) For the purpose of subsection (a), to the extent that the non-
Federal entity is a State or territory, an Indian tribe, a foreign 
government or an intergovernmental international organization, the 
provision or language shall not be considered an earmark unless the 
provision or language also specifies the specific purpose for which the 
designated budget authority is to be expended.

SEC. 502. MANDATORY ETHICS TRAINING FOR HOUSE EMPLOYEES.

    (a) Mandatory Ethics Training for House Employees.--
            (1) Chief administrative officer.--Clause 4 of rule II of 
        the Rules of the House of Representatives is amended by 
        inserting the following new paragraph at the end:
    ``(d) The Chief Administrative Officer may not pay any compensation 
to any employee of the House with respect to any pay period during 
which the employee, as determined by the Committee on Standards of 
Official Conduct, is not in compliance with the applicable requirements 
of regulations promulgated pursuant to clause 3(r) of Rule XI.''.
            (2) Mandatory ethics training program.--Clause 3 of rule XI 
        of the Rules of the House of Representatives is amended by 
        adding at the end the following:
    ``(r) The committee shall establish a program of regular ethics 
training for employees of the House and promulgate regulations 
providing for the following:
            ``(1)(A) Except as otherwise provided, all employees of the 
        House are required to complete ethics training offered by the 
        committee at least once during each congress. Any employee who 
        is hired after the date of adoption of such rules is required 
        to complete such training within 30 days of being hired.
            ``(B) Any employee of the House who works in a Member's 
        district office shall not be required to complete such ethics 
        training until 30 days after the district office has received a 
        notice from the Committee on Standards of Official Conduct that 
        the required ethics training program is available on the 
        Internet.
            ``(2) After any employee of the House completes such ethics 
        training, that employee shall file a written certification with 
        the committee that he is familiar with the contents of any 
        pertinent publications that are so designated by the committee 
        and has completed the required ethics training.
            ``(3) As used in this paragraph, the term `employee of the 
        House' refers to any individual whose compensation is disbursed 
        by the Chief Administrative Officer, including any staff 
        assigned to a Member's personal office, any staff of a 
        committee or leadership office, or any employee of the Office 
        of the Clerk, of the Office of the Chief Administrative 
        Officer, or of the Sergeant-at-Arms, but does not include a 
        Member, Delegate, or Resident Commissioner.''.
    (b) Ethics Training for Members, Delegates, and the Resident 
Commissioner.--Clause 3 of rule XI of the Rules of the House of 
Representatives is amended by inserting at the end:
    ``(s)(1) The committee shall establish a program of regular ethics 
training for Members, Delegates, and the Resident Commissioner similar 
to the program established in paragraph (r).
    ``(2) The committee shall publish a list of Members who have and 
have not completed such ethics training within the first one hundred 
calendar days after being sworn-in during each Congress. The committee 
shall update this list with the names of Members who complete the 
training after the deadline with the date on which the training was 
completed.
    ``(3) Publication of the list of Members who have and have not 
completed the ethics training shall be made available on the official 
website of the committee and published in the Congressional Record.''.

SEC. 503. BIENNIAL PUBLICATION OF ETHICS MANUAL.

    Within 120 days after the date of enactment of this Act and during 
each Congress thereafter, the Committee on Standards of Official 
Conduct shall publish an up-to-date ethics manual for Members, 
officers, and employees of the House of Representatives and make such 
manual available to all such individuals. The committee has a duty to 
keep all Members, Delegates, the Resident Commissioner, officers, and 
employees of the House of Representatives apprised of current rulings 
or advisory opinions when potentially constituting changes to or 
interpretations of existing policies.

              TITLE VI--FORFEITURE OF RETIREMENT BENEFITS

SEC. 601. LOSS OF PENSIONS ACCRUED DURING SERVICE AS A MEMBER OF 
              CONGRESS FOR ABUSING THE PUBLIC TRUST.

    (a) Civil Service Retirement System.--Section 8332 of title 5, 
United States Code, is amended by adding at the end the following:
    ``(o)(1) Notwithstanding any other provision of this subchapter, 
the service of an individual finally convicted of an offense described 
in paragraph (2) shall not be taken into account for purposes of this 
subchapter, except that this sentence applies only to service rendered 
as a Member (irrespective of when rendered). Any such individual (or 
other person determined under section 8342(c), if applicable) shall be 
entitled to be paid so much of such individual's lump-sum credit as is 
attributable to service to which the preceding sentence applies.
    ``(2)(A) An offense described in this paragraph is any offense 
described in subparagraph (B) for which the following apply:
            ``(i) Every act or omission of the individual (referred to 
        in paragraph (1)) that is needed to satisfy the elements of the 
        offense occurs while the individual is a Member.
            ``(ii) Every act or omission of the individual that is 
        needed to satisfy the elements of the offense directly relates 
        to the performance of the individual's official duties as a 
        Member.
            ``(iii) The offense is committed after the date of 
        enactment of this subsection.
    ``(B) An offense described in this subparagraph is only the 
following, and only to the extent that the offense is a felony under 
title 18:
            ``(i) An offense under section 201 of title 18 (bribery of 
        public officials and witnesses).
            ``(ii) An offense under section 219 of title 18 (officers 
        and employees acting as agents of foreign principals).
            ``(iii) An offense under section 371 of title 18 
        (conspiracy to commit offense or to defraud United States) to 
        the extent of any conspiracy to commit an act which constitutes 
        an offense under clause (i) or (ii).
    ``(3) An individual convicted of an offense described in paragraph 
(2) shall not, after the date of the final conviction, be eligible to 
participate in the retirement system under this subchapter or chapter 
84 while serving as a Member.
    ``(4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry out this subsection. Such regulations 
shall include--
            ``(A) provisions under which interest on any lump-sum 
        payment under the second sentence of paragraph (1) shall be 
        limited in a manner similar to that specified in the last 
        sentence of section 8316(b); and
            ``(B) provisions under which the Office may provide for--
                    ``(i) the payment, to the spouse or children of any 
                individual referred to in the first sentence of 
                paragraph (1), of any amounts which (but for this 
                clause) would otherwise have been nonpayable by reason 
                of such first sentence, but only to the extent that the 
                application of this clause is considered necessary 
                given the totality of the circumstances; and
                    ``(ii) an appropriate adjustment in the amount of 
                any lump-sum payment under the second sentence of 
                paragraph (1) to reflect the application of clause (i).
    ``(5) For purposes of this subsection--
            ``(A) the term `Member' has the meaning given such term by 
        section 2106, notwithstanding section 8331(2); and
            ``(B) the term `child' has the meaning given such term by 
        section 8341.''.
    (b) Federal Employees' Retirement System.--Section 8411 of title 5, 
United States Code, is amended by adding at the end the following:
    ``(l)(1) Notwithstanding any other provision of this chapter, the 
service of an individual finally convicted of an offense described in 
paragraph (2) shall not be taken into account for purposes of this 
chapter, except that this sentence applies only to service rendered as 
a Member (irrespective of when rendered). Any such individual (or other 
person determined under section 8424(d), if applicable) shall be 
entitled to be paid so much of such individual's lump-sum credit as is 
attributable to service to which the preceding sentence applies.
    ``(2) An offense described in this paragraph is any offense 
described in section 8332(o)(2)(B) for which the following apply:
            ``(A) Every act or omission of the individual (referred to 
        in paragraph (1)) that is needed to satisfy the elements of the 
        offense occurs while the individual is a Member.
            ``(B) Every act or omission of the individual that is 
        needed to satisfy the elements of the offense directly relates 
        to the performance of the individual's official duties as a 
        Member.
            ``(C) The offense is committed after the date of enactment 
        of this subsection.
    ``(3) An individual finally convicted of an offense described in 
paragraph (2) shall not, after the date of the conviction, be eligible 
to participate in the retirement system under this chapter while 
serving as a Member.
    ``(4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry out this subsection. Such regulations 
shall include--
            ``(A) provisions under which interest on any lump-sum 
        payment under the second sentence of paragraph (1) shall be 
        limited in a manner similar to that specified in the last 
        sentence of section 8316(b); and
            ``(B) provisions under which the Office may provide for--
                    ``(i) the payment, to the spouse or children of any 
                individual referred to in the first sentence of 
                paragraph (1), of any amounts which (but for this 
                clause) would otherwise have been nonpayable by reason 
                of such first sentence, but only to the extent that the 
                application of this clause is considered necessary 
                given the totality of the circumstances; and
                    ``(ii) an appropriate adjustment in the amount of 
                any lump-sum payment under the second sentence of 
                paragraph (1) to reflect the application of clause (i).
    ``(5) For purposes of this subsection--
            ``(A) the term `Member' has the meaning given such term by 
        section 2106, notwithstanding section 8401(20); and
            ``(B) the term `child' has the meaning given such term by 
        section 8341.''.

                       TITLE VII--LEADERSHIP PACS

SEC. 701. RESTRICTIONS ON DISPOSITION OF FUNDS BY LEADERSHIP PACS.

    (a) Restrictions.--Section 313 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 439a) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Use of Funds by Leadership PACs.--
            ``(1) Uses permitted.--The funds of a leadership PAC may be 
        used by the leadership PAC--
                    ``(A) for otherwise authorized expenditures in 
                connection with campaigns for election for Federal 
                office;
                    ``(B) for charitable contributions described in 
                section 170(c) of the Internal Revenue Code of 1986; or
                    ``(C) for transfers to a national, State, or local 
                committee of a political party (subject to the 
                applicable limitations of this Act).
            ``(2) Leadership pac defined.--In this subsection, the term 
        `leadership PAC' means a political committee which is directly 
        or indirectly established, maintained, or controlled by a 
        candidate for election for Federal office or an individual 
        holding Federal office but is not an authorized committee of 
        the candidate or individual, except that such term does not 
        include any political committee of a political party.''.
    (b) Conforming Amendment Regarding Conversion of Funds to Personal 
Use.--Section 313(c) of such Act (2 U.S.C. 439a(c)), as redesignated by 
subsection (a), is amended by inserting after ``subsection (a)'' the 
following: ``or funds of a leadership PAC described in subsection 
(b)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to elections occurring after December 2006.

               TITLE VIII--ETHICS TRAINING FOR LOBBYISTS

SEC. 801. ETHICS TRAINING FOR LOBBYISTS.

    (a) Training Course.--During each Congress, the Committee on 
Standards of Official Conduct of the House of Representatives shall 
provide an 8-hour ethics training course to persons registered as 
lobbyists under the Lobbying Disclosure Act of 1995.
    (b) Contents of Course.--Training under subsection (a) shall cover 
information on the code of conduct and disclosure requirements 
applicable to Members, officers, and employees of the House of 
Representatives, including rules relating to acceptance of gifts 
(including travel and meals), and financial disclosure requirements 
under the Ethics in Government Act of 1978.
    (c) Penalties for Failure to Complete Training.--Any person who is 
registered or required to register as a lobbyist under the Lobbying 
Disclosure Act of 1995 and who fails to complete the training course 
under subsection (a) at least once during each Congress shall be 
subject to the penalties under section 7 of that Act to the same extent 
as a failure to comply with any provision of that Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. BRIBERY.

    Section 201(a)(3) of title 18, United States Code, is amended by 
inserting ``including an earmark as defined in section 501(d) of the 
Lobbying Accountability and Transparency Act of 2006,'' after 
``controversy,''.

                    TITLE X--527 REFORM ACT OF 2006

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``527 Reform Act of 2006''.

SEC. 1002. TREATMENT OF SECTION 527 ORGANIZATIONS.

    (a) Definition of Political Committee.--Section 301(4) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(4)) is amended--
            (1) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (2) by adding at the end the following:
            ``(D) any applicable 527 organization.''.
    (b) Definition of Applicable 527 Organization.--Section 301 of such 
Act (2 U.S.C. 431) is amended by adding at the end the following new 
paragraph:
    ``(27) Applicable 527 Organization.--
            ``(A) In general.--For purposes of paragraph (4)(D), the 
        term `applicable 527 organization' means a committee, club, 
        association, or group of persons that--
                    ``(i) has given notice to the Secretary of the 
                Treasury under section 527(i) of the Internal Revenue 
                Code of 1986 that it is to be treated as an 
                organization described in section 527 of such Code; and
                    ``(ii) is not described in subparagraph (B).
            ``(B) Excepted organizations.--A committee, club, 
        association, or other group of persons described in this 
        subparagraph is--
                    ``(i) an organization described in section 
                527(i)(5) of the Internal Revenue Code of 1986;
                    ``(ii) an organization which is a committee, club, 
                association or other group of persons that is 
                organized, operated, and makes disbursements 
                exclusively for paying expenses described in the last 
                sentence of section 527(e)(2) of the Internal Revenue 
                Code of 1986 or expenses of a newsletter fund described 
                in section 527(g) of such Code;
                    ``(iii) an organization which is a committee, club, 
                association, or other group that consists solely of 
                candidates for State or local office, individuals 
                holding State or local office, or any combination of 
                either, but only if the organization refers only to one 
                or more non-Federal candidates or applicable State or 
                local issues in all of its voter drive activities and 
                does not refer to a Federal candidate or a political 
                party in any of its voter drive activities; or
                    ``(iv) an organization described in subparagraph 
                (C).
            ``(C) Applicable organization.--For purposes of 
        subparagraph (B)(iv), an organization described in this 
        subparagraph is a committee, club, association, or other group 
        of persons whose election or nomination activities relate 
        exclusively to--
                    ``(i) elections where no candidate for Federal 
                office appears on the ballot; or
                    ``(ii) one or more of the following purposes:
                            ``(I) Influencing the selection, 
                        nomination, election, or appointment of one or 
                        more candidates to non-Federal offices.
                            ``(II) Influencing one or more applicable 
                        State or local issues.
                            ``(III) Influencing the selection, 
                        appointment, nomination, or confirmation of one 
                        or more individuals to non-elected offices.
            ``(D) Exclusivity test.--A committee, club, association, or 
        other group of persons shall not be treated as meeting the 
        exclusivity requirement of subparagraph (C) if it makes 
        disbursements aggregating more than $1,000 for any of the 
        following:
                    ``(i) A public communication that promotes, 
                supports, attacks, or opposes a clearly identified 
                candidate for Federal office during the 1-year period 
                ending on the date of the general election for the 
                office sought by the clearly identified candidate (or, 
                if a runoff election is held with respect to such 
                general election, on the date of the runoff election).
                    ``(ii) Any voter drive activity during a calendar 
                year, except that no disbursements for any voter drive 
                activity shall be taken into account under this 
                subparagraph if the committee, club, association, or 
                other group of persons during such calendar year--
                            ``(I) makes disbursements for voter drive 
                        activities with respect to elections in only 1 
                        State and complies with all applicable election 
                        laws of that State, including laws related to 
                        registration and reporting requirements and 
                        contribution limitations;
                            ``(II) refers to one or more non-Federal 
                        candidates or applicable State or local issues 
                        in all of its voter drive activities and does 
                        not refer to any Federal candidate or any 
                        political party in any of its voter drive 
                        activities;
                            ``(III) does not have a candidate for 
                        Federal office, an individual who holds any 
                        Federal office, a national political party, or 
                        an agent of any of the foregoing, control or 
                        materially participate in the direction of the 
                        organization, solicit contributions to the 
                        organization (other than funds which are 
                        described under clauses (i) and (ii) of section 
                        323(e)(1)(B)), or direct disbursements, in 
                        whole or in part, by the organization; and
                            ``(IV) makes no contributions to Federal 
                        candidates.
            ``(E) Certain references to federal candidates not taken 
        into account.--For purposes of subparagraphs (B)(iii) and 
        (D)(ii)(II), a voter drive activity shall not be treated as 
        referring to a clearly identified Federal candidate if the only 
        reference to the candidate in the activity is--
                    ``(i) a reference in connection with an election 
                for a non-Federal office in which such Federal 
                candidate is also a candidate for such non-Federal 
                office; or
                    ``(ii) a reference to the fact that the candidate 
                has endorsed a non-Federal candidate or has taken a 
                position on an applicable State or local issue, 
                including a reference that constitutes the endorsement 
                or position itself.
            ``(F) Certain references to political parties not taken 
        into account.--For purposes of subparagraphs (B)(iii) and 
        (D)(ii)(II), a voter drive activity shall not be treated as 
        referring to a political party if the only reference to the 
        party in the activity is--
                    ``(i) a reference for the purpose of identifying a 
                non-Federal candidate;
                    ``(ii) a reference for the purpose of identifying 
                the entity making the public communication or carrying 
                out the voter drive activity; or
                    ``(iii) a reference in a manner or context that 
                does not reflect support for or opposition to a Federal 
                candidate or candidates and does reflect support for or 
                opposition to a State or local candidate or candidates 
                or an applicable State or local issue.
            ``(G) Applicable state or local issue.--For purposes of 
        this paragraph, the term `applicable State or local issue' 
        means any State or local ballot initiative, State or local 
        referendum, State or local constitutional amendment, State or 
        local bond issue, or other State or local ballot issue.''.
    (c) Definition of Voter Drive Activity.--Section 301 of such Act (2 
U.S.C. 431), as amended by subsection (b), is further amended by adding 
at the end the following new paragraph:
    ``(28) Voter Drive Activity.--The term `voter drive activity' means 
any of the following activities 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):
            ``(A) Voter registration activity.
            ``(B) Voter identification.
            ``(C) Get-out-the-vote activity.
            ``(D) Generic campaign activity.
            ``(E) Any public communication related to activities 
        described in subparagraphs (A) through (D).
Such term shall not include any activity described in subparagraph (A) 
or (B) of section 316(b)(2).''.

SEC. 1003. RULES FOR ALLOCATION OF EXPENSES BETWEEN FEDERAL AND NON-
              FEDERAL ACTIVITIES.

    (a) In General.--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. 325. ALLOCATION AND FUNDING RULES FOR CERTAIN EXPENSES RELATING 
              TO FEDERAL AND NON-FEDERAL ACTIVITIES.

    ``(a) In General.--In the case of any disbursements by any 
political committee that is a separate segregated fund or nonconnected 
committee for which allocation rules are provided under subsection 
(b)--
            ``(1) the disbursements shall be allocated between Federal 
        and non-Federal accounts in accordance with this section and 
        regulations prescribed by the Commission; and
            ``(2) in the case of disbursements allocated to non-Federal 
        accounts, may be paid only from a qualified non-Federal 
        account.
    ``(b) Costs to Be Allocated and Allocation Rules.--
            ``(1) In general.--Disbursements by any separate segregated 
        fund or nonconnected committee, other than an organization 
        described in section 323(b)(1), for any of the following 
        categories of activity shall be allocated as follows:
                    ``(A) 100 percent of the expenses for public 
                communications or voter drive activities that refer to 
                one or more clearly identified Federal candidates, but 
                do not refer to any clearly identified non-Federal 
                candidates, shall be paid with funds from a Federal 
                account, without regard to whether the communication 
                refers to a political party.
                    ``(B) At least 50 percent, or a greater percentage 
                if the Commission so determines by regulation, of the 
                expenses for public communications and voter drive 
                activities that refer to one or more clearly identified 
                candidates for Federal office and one or more clearly 
                identified non-Federal candidates shall be paid with 
                funds from a Federal account, without regard to whether 
                the communication refers to a political party.
                    ``(C) At least 50 percent, or a greater percentage 
                if the Commission so determines by regulation, of the 
                expenses for public communications or voter drive 
                activities that refer to a political party, but do not 
                refer to any clearly identified Federal or non-Federal 
                candidate, shall be paid with funds from a Federal 
                account, except that this paragraph shall not apply to 
                communications or activities that relate exclusively to 
                elections where no candidate for Federal office appears 
                on the ballot.
                    ``(D) At least 50 percent, or a greater percentage 
                if the Commission so determines by regulation, of the 
                expenses for public communications or voter drive 
                activities that refer to a political party and refer to 
                one or more clearly identified non-Federal candidates, 
                but do not refer to any clearly identified Federal 
                candidates, shall be paid with funds from a Federal 
                account, except that this paragraph shall not apply to 
                communications or activities that relate exclusively to 
                elections where no candidate for Federal office appears 
                on the ballot.
                    ``(E) Unless otherwise determined by the Commission 
                in its regulations, at least 50 percent of any 
                administrative expenses, including rent, utilities, 
                office supplies, and salaries not attributable to a 
                clearly identified candidate, shall be paid with funds 
                from a Federal account, except that for a separate 
                segregated fund such expenses may be paid instead by 
                its connected organization.
                    ``(F) At least 50 percent, or a greater percentage 
                if the Commission so determines by regulation, of the 
                direct costs of a fundraising program or event, 
                including disbursements for solicitation of funds and 
                for planning and administration of actual fundraising 
                events, where Federal and non-Federal funds are 
                collected through such program or event shall be paid 
                with funds from a Federal account, except that for a 
                separate segregated fund such costs may be paid instead 
                by its connected organization. This paragraph shall not 
                apply to any fundraising solicitations or any other 
                activity that constitutes a public communication.
            ``(2) Certain references to federal candidates not taken 
        into account.--For purposes of paragraph (1), a public 
        communication or voter drive activity shall not be treated as 
        referring to a clearly identified Federal candidate if the only 
        reference to the candidate in the communication or activity 
        is--
                    ``(A) a reference in connection with an election 
                for a non-Federal office in which such Federal 
                candidate is also a candidate for such non-Federal 
                office; or
                    ``(B) a reference to the fact that the candidate 
                has endorsed a non-Federal candidate or has taken a 
                position on an applicable State or local issue (as 
                defined in section 301(27)(G)), including a reference 
                that constitutes the endorsement or position itself.
            ``(3) Certain references to political parties not taken 
        into account.--For purposes of paragraph (1), a public 
        communication or voter drive activity shall not be treated as 
        referring to a political party if the only reference to the 
        party in the communication or activity is--
                    ``(A) a reference for the purpose of identifying a 
                non-Federal candidate;
                    ``(B) a reference for the purpose of identifying 
                the entity making the public communication or carrying 
                out the voter drive activity; or
                    ``(C) a reference in a manner or context that does 
                not reflect support for or opposition to a Federal 
                candidate or candidates and does reflect support for or 
                opposition to a State or local candidate or candidates 
                or an applicable State or local issue.
    ``(c) Qualified Non-Federal Account.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified non-Federal account' means an account which consists 
        solely of amounts--
                    ``(A) that, subject to the limitations of 
                paragraphs (2) and (3), are raised by the separate 
                segregated fund or nonconnected committee only from 
                individuals, and
                    ``(B) with respect to which all requirements of 
                Federal, State, or local law (including any law 
                relating to contribution limits) are met.
            ``(2) Limitation on individual donations.--
                    ``(A) In general.--A separate segregated fund or 
                nonconnected committee may not accept more than $25,000 
                in funds for its qualified non-Federal account from any 
                one individual in any calendar year.
                    ``(B) Affiliation.--For purposes of this paragraph, 
                all qualified non-Federal accounts of separate 
                segregated funds or nonconnected committees which are 
                directly or indirectly established, financed, 
                maintained, or controlled by the same person or persons 
                shall be treated as one account.
            ``(3) Fundraising limitation.--
                    ``(A) In general.--No donation to a qualified non-
                Federal account may be solicited, received, directed, 
                transferred, or spent by or in the name of any person 
                described in subsection (a) or (e) of section 323.
                    ``(B) Funds not treated as subject to act.--Except 
                as provided in subsection (a)(2) and this subsection, 
                any funds raised for a qualified non-Federal account in 
                accordance with the requirements of this section shall 
                not be considered funds subject to the limitations, 
                prohibitions, and reporting requirements of this Act 
                for any purpose (including for purposes of subsection 
                (a) or (e) of section 323 or subsection (d)(1) of this 
                section).
    ``(d) Definitions.--
            ``(1) Federal account.--The term `Federal account' means an 
        account which consists solely of contributions subject to the 
        limitations, prohibitions, and reporting requirements of this 
        Act. Nothing in this section or in section 323(b)(2)(B)(iii) 
        shall be construed to infer that a limit other than the limit 
        under section 315(a)(1)(C) applies to contributions to the 
        account.
            ``(2) Nonconnected committee.--The term `nonconnected 
        committee' shall not include a political committee of a 
        political party.
            ``(3) Voter drive activity.--The term `voter drive 
        activity' has the meaning given such term in section 
        301(28).''.
    (b) Reporting Requirements.--Section 304(e) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434(e)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Receipts and disbursements from qualified non-federal 
        accounts.--In addition to any other reporting requirement 
        applicable under this Act, a political committee to which 
        section 325(a) applies shall report all receipts and 
        disbursements from a qualified non-Federal account (as defined 
        in section 325(c)).''.

SEC. 1004. 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 any other 
                provision of law with respect to limitations on 
                expenditures or limitations on contributions, the 
                national committee'' and inserting ``Notwithstanding 
                any other provision of law with respect to limitations 
                on amounts of expenditures or contributions, a national 
                committee'',
                    (B) by striking ``the general'' and inserting 
                ``any'', 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)(iii)--
                            (i) by adding ``and'' at the end of 
                        subclause (I),
                            (ii) in subclause (II), by striking ``; 
                        and'' and inserting a period, and
                            (iii) by striking subclause (III);
                    (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)--
                            (i) by adding ``and'' at the end of 
                        subparagraph (A),
                            (ii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period, and
                            (iii) by striking subparagraph (C);
                    (B) in paragraph (3)(A) in the matter preceding 
                clause (i), by striking ``, 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. 1005. CONSTRUCTION.

    No provision of this title, or amendment made by this title, shall 
be construed--
            (1) as approving, ratifying, or endorsing a regulation 
        promulgated by the Federal Election Commission;
            (2) as establishing, modifying, or otherwise affecting the 
        definition of political organization for purposes of the 
        Internal Revenue Code of 1986; or
            (3) as affecting the determination of whether a group 
        organized under section 501(c) of the Internal Revenue Code of 
        1986 is a political committee under section 301(4) of the 
        Federal Election Campaign Act of 1971.

SEC. 1006. JUDICIAL REVIEW.

    (a) Special Rules for Actions Brought on Constitutional Grounds.--
If any action is brought for declaratory or injunctive relief to 
challenge the constitutionality of any provision of this title or any 
amendment made by this title, the following rules shall apply:
            (1) The action shall be filed in the United States District 
        Court for the District of Columbia and shall be heard by a 3-
        judge court convened pursuant to section 2284 of title 28, 
        United States Code.
            (2) A copy of the complaint shall be delivered promptly to 
        the Clerk of the House of Representatives and the Secretary of 
        the Senate.
            (3) A final decision in the action shall be reviewable only 
        by appeal directly to the Supreme Court of the United States. 
        Such appeal shall be taken by the filing of a notice of appeal 
        within 10 days, and the filing of a jurisdictional statement 
        within 30 days, of the entry of the final decision.
            (4) It shall be the duty of the United States District 
        Court for the District of Columbia and the Supreme Court of the 
        United States to advance on the docket and to expedite to the 
        greatest possible extent the disposition of the action and 
        appeal.
    (b) Intervention by Members of Congress.--In any action in which 
the constitutionality of any provision of this title or any amendment 
made by this title is raised (including but not limited to an action 
described in subsection (a)), any Member of the House of 
Representatives (including a Delegate or Resident Commissioner to 
Congress) or Senate shall have the right to intervene either in support 
of or opposition to the position of a party to the case regarding the 
constitutionality of the provision or amendment. To avoid duplication 
of efforts and reduce the burdens placed on the parties to the action, 
the court in any such action may make such orders as it considers 
necessary, including orders to require intervenors taking similar 
positions to file joint papers or to be represented by a single 
attorney at oral argument.
    (c) Challenge by Members of Congress.--Any Member of Congress may 
bring an action, subject to the special rules described in subsection 
(a), for declaratory or injunctive relief to challenge the 
constitutionality of any provision of this title or any amendment made 
by this title.
    (d) Applicability.--
            (1) Initial claims.--With respect to any action initially 
        filed on or before December 31, 2008, the provisions of 
        subsection (a) shall apply with respect to each action 
        described in such subsection.
            (2) Subsequent actions.--With respect to any action 
        initially filed after December 31, 2008, the provisions of 
        subsection (a) shall not apply to any action described in such 
        subsection unless the person filing such action elects such 
        provisions to apply to the action.

SEC. 1007. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
the enactment of this Act.

            Passed the House of Representatives May 3, 2006.

            Attest:

                                                                 Clerk.
109th CONGRESS

  2d Session

                               H. R. 4975

_______________________________________________________________________

                                 AN ACT

To provide greater transparency with respect to lobbying activities, to 
    amend the Federal Election Campaign Act of 1971 to clarify when 
organizations described in section 527 of the Internal Revenue Code of 
  1986 must register as political committees, and for other purposes.