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








109th CONGRESS
  2d Session
                                H. R. 4975

 To provide greater transparency with respect to lobbying activities, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2006

Mr. Dreier (for himself, Mr. Hastert, Mr. Boehner, Mr. Blunt, Ms. Pryce 
   of Ohio, Mr. Reynolds, Mr. Cantor, Mr. Kingston, Mr. Putnam, Mr. 
  Ehlers, Mr. Tom Davis of Virginia, and Mr. Hastings of Washington) 
 introduced the following bill; which was referred to the Committee on 
       the Judiciary, and in addition to the Committees on House 
  Administration, Rules, Government Reform, and Standards of Official 
Conduct, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To provide greater transparency with respect to lobbying activities, 
                        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''.
    (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.
                  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. Suspension of privately-funded travel.
Sec. 302. Recommendations on gifts and travel.
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. Frequent and comprehensive ethics training.
Sec. 503. Biennial publication of ethics manual.
             TITLE VI--REFORM OF SECTION 527 ORGANIZATIONS

Sec. 601. Short title.
Sec. 602. Treatment of section 527 organizations.
Sec. 603. Rules for allocation of expenses between Federal and non-
                            Federal activities.
Sec. 604. Repeal of limit on amount of party expenditures on behalf of 
                            candidates in general elections.
Sec. 605. Construction.
Sec. 606. Judicial review.
Sec. 607. Severability.
              TITLE VII--FORFEITURE OF RETIREMENT BENEFITS

Sec. 701. Loss of pensions accrued during service as a Member of 
                            Congress for abusing the public trust.

                 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) 
        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 of the Act (2 U.S.C. 1604) 
                is amended--
                            (i) in subsection (c)(1), by striking 
                        ``$10,000'' and ``$20,000'' and inserting 
                        ``$5,000'' and ``$10,000'', respectively; and
                            (ii) in subsection (c)(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) in 
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; and
                    ``(B) is searchable and sortable, at a minimum, by 
                each of the categories of information described in 
                section 4(b) or 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) 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 (4), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(6) 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 such registrant), and 
        for each employee listed as a lobbyist by a 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; and
            ``(7) 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 by a registrant or employee listed as a lobbyist to a 
        covered legislative branch official.''.
    (b) 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 by striking 
``$50,000'' and inserting ``$100,000''.

                  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. SUSPENSION 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 (including any 
transportation, lodging, and meals during such travel) from any private 
source.

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

    Not later than December 15, 2006, the Committee on Standards of 
Official Conduct shall report its recommendations on changes to rule 
XXV of the Rules of the House of Representatives to the Committee on 
Rules. In developing such recommendations, the Committee on Standards 
of Official Conduct shall consider the following:
            (1) The ability of the current provisions of rule XXV to 
        protect the House, its Members, officers, and employees, from 
        the appearance of impropriety.
            (2) With respect to the allowance for privately-funded 
        travel contained in clause 5(b) of rule XXV--
                    (A) the degree to which privately-funded travel 
                meets the representational needs of the House, its 
                Members, officers, and employees;
                    (B) 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
                    (C) the adequacy of the current system of approval 
                and disclosure of such travel.
            (3) With respect to the exceptions to the limitation on the 
        acceptance of gifts contained in clause 5(a)--
                    (A) the degree to which those exceptions meet the 
                representational and personal needs of the House, its 
                Members, officers, and employees;
                    (B) the clarity of the limitation and its 
                exceptions; and
                    (C) the suitability of the current dollar 
                limitations contained in clause 5(a)(1)(B) of such 
                rule, including whether such limitations should be 
                lowered.

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 not licensed 
by the Federal Aviation Administration to operate for compensation or 
hire 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 name of any Member who 
        submitted a request to the Committee on Appropriations for an 
        earmark 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 name of 
        any Member who submitted a request to the Committee on 
        Appropriations for an earmark 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) may be based 
only on the failure of a report of the Committee on Appropriations or 
joint statement, as the case may be, to include the list required by 
subsection (a).
    (2) As disposition of a point of order under this section, the 
Chair shall put the question of consideration with respect to the 
proposition that is the subject of the point of order.
    (3) The question of consideration under this subsection shall be 
debatable for 10 minutes by the Member initiating the point of order 
and for 10 minutes by an opponent, but shall otherwise be decided 
without intervening motion except one that the House adjourn.
    (d)(1) For purposes of this section, the term ``earmark'' means a 
provision in a bill, joint resolution, or conference report, or 
language in an accompanying committee report or joint statement of 
managers, providing a specific amount of discretionary budget authority 
to a non-Federal entity, if such entity is identified by name.
    (2) For purposes of paragraph (1), government-sponsored 
enterprises, Federal facilities, and Federal lands shall be considered 
Federal entities.
    (3) For purposes of subsection (a), to the extent that the non-
Federal entity is a unit of State or local government, an Indian tribe, 
or a foreign government, 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. FREQUENT AND COMPREHENSIVE ETHICS TRAINING.

    (a) Ethics Training.--
            (1) In general.--The Committee on Standards of Official 
        Conduct shall provide ethics training once per Congress to each 
        employee of the House of Representatives, including training on 
        the Code of Official Conduct, related rules of the House of 
        Representatives, and applicable provisions of law.
            (2) New employees.--A new employee of the House of 
        Representatives shall receive training under this section not 
        later than 30 days after beginning service to the House.
            (3) Members.--While the House of Representatives recognizes 
        that adding qualifications to service as a Member may be 
        unconstitutional, it encourages Members to participate in 
        ethics training.
    (b) Certification.--Within 30 days of completing required ethics 
training, each employee of the House of Representatives shall file a 
certification with the Committee on Standards of Official Conduct that 
the employee has completed such training and is familiar with the 
contents of any pertinent publications that are so designated by the 
committee.

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--REFORM OF SECTION 527 ORGANIZATIONS

SEC. 601. SHORT TITLE.

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

SEC. 602. 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).''.
    (d) Regulations.--The Federal Election Commission shall promulgate 
regulations to implement this section not later than 60 days after the 
date of enactment of this Act.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date which is 60 days after the date of enactment of this 
Act.

SEC. 603. 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)).''.
    (c) Regulations.--The Federal Election Commission shall promulgate 
regulations to implement the amendments made by this section not later 
than 180 days after the date of enactment of this Act.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date which is 180 days after the date of enactment of 
this Act.

SEC. 604. 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''.
    (c) Effective Date.--The amendments made by this section shall take 
effect January 1, 2006.

SEC. 605. 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. 606. 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. 607. SEVERABILITY.

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

              TITLE VII--FORFEITURE OF RETIREMENT BENEFITS

SEC. 701. 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:
    ``(i)(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.''.
                                 <all>