[Congressional Record Volume 142, Number 92 (Thursday, June 20, 1996)]
[Senate]
[Pages S6616-S6623]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE SENATE CAMPAIGN FINANCE REFORM ACT OF 1996

                                 ______


                 McCAIN (AND OTHERS) AMENDMENT NO. 4092

  Mr. LOTT (for Mr. McCain for hmself, Mr. Feingold, and Mr. Thompson) 
proposed an amendment to the bill, S. 1219, supra; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Senate Campaign Finance 
     Reform Act of 1996''.

     SEC. 2. AMENDMENT OF CAMPAIGN ACT; TABLE OF CONTENTS.

       (a) Amendment of FECA.--When used in this Act, the term 
     ``FECA'' means the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.).
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Amendment of campaign Act; table of contents.

         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. Senate election spending limits and benefits.
Sec. 102. Free broadcast time.
Sec. 103. Broadcast rates and preemption.
Sec. 104. Reduced postage rates.
Sec. 105. Contribution limit for eligible Senate candidates.
Sec. 106. Reporting requirement for eligible Senate candidates.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

  Subtitle A--Elimination of Political Action Committees From Federal 
                          Election Activities

Sec. 201. Ban on activities of political action committees in Federal 
              elections.

   Subtitle B--Provisions Relating to Soft Money of Political Parties

Sec. 211. Soft money of political parties.
Sec. 212. State party grassroots funds.
Sec. 213. Reporting requirements.

     Subtitle C--Soft Money of Persons Other Than Political Parties

Sec. 221. Soft money of persons other than political parties.

                       Subtitle D--Contributions

Sec. 231. Contributions through intermediaries and conduits.

                  Subtitle E--Independent Expenditures

Sec. 241. Clarification of definitions relating to independent 
              expenditures.
Sec. 242. Reporting requirements for certain independent expenditures.

                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Restrictions on use of campaign funds for personal purposes.
Sec. 302. Campaign advertising amendments.
Sec. 303. Filing of reports using computers and facsimile machines.
Sec. 304. Audits.
Sec. 305. Limit on congressional use of the franking privilege.
Sec. 306. Authority to seek injunction.
Sec. 307. Reporting requirements for contributions of $50 or more.

             TITLE IV--CONSTITUTIONALITY AND EFFECTIVE DATE

Sec. 401. Severability.
Sec. 402. Expedited review of constitutional issues.
Sec. 403. Effective date.
Sec. 404. Regulations.
         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

     SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

       (a) In General.--FECA is amended by adding at the end the 
     following new title:
 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

     ``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.

       ``(a) In General.--For purposes of this title, a candidate 
     is an eligible Senate candidate if the candidate--
       ``(1) meets the primary and general election filing 
     requirements of subsections (c) and (d);
       ``(2) meets the primary and runoff election expenditure 
     limits of subsection (b);
       ``(3) meets the threshold contribution requirements of 
     subsection (e);
       ``(4) does not exceed the limitation on expenditures from 
     personal funds under section 502(a); and
       ``(5) meets the in-State contribution requirements of 
     subsection (f).
       ``(b) Primary and Runoff Expenditure Limits.--
       ``(1) In general.--The requirements of this subsection are 
     met if--
       ``(A) the candidate or the candidate's authorized 
     committees did not make expenditures for the primary election 
     in excess of the lesser of--
       ``(i) 67 percent of the general election expenditure limit 
     under section 502(b); or
       ``(ii) $2,750,000; and
       ``(B) the candidate and the candidate's authorized 
     committees did not make expenditures for any runoff election 
     in excess of 20 percent of the general election expenditure 
     limit under section 502(b).
       ``(2) Indexing.--The $2,750,000 amount under paragraph 
     (1)(A)(ii) shall be increased as of the beginning of each 
     calendar year based on the increase in the price index 
     determined under section 315(c), except that the base period 
     shall be calendar year 1995.
       ``(c) Primary Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files with the Commission a 
     certification that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) will meet the primary and runoff election expenditure 
     limits of subsection (b); and
       ``(ii) will accept only an amount of contributions for the 
     primary and runoff elections that does exceed those limits;
       ``(B) the candidate and the candidate's authorized 
     committees will meet the limitation on expenditures from 
     personal funds under section 502(a); and
       ``(C) the candidate and the candidate's authorized 
     committees will meet the general election expenditure limit 
     under section 502(b).
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than the date 
     the candidate files as a candidate for the primary election.
       ``(d) General Election Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files a certification with the 
     Commission under penalty of perjury that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) met the primary and runoff election expenditure 
     limits under subsection (b);
       ``(ii) did not accept contributions for the primary or 
     runoff election in excess of the primary or runoff 
     expenditure limit under subsection (b), whichever is 
     applicable, reduced by any amounts transferred to the current 
     election cycle from a preceding election cycle; and
       ``(iii) did not accept contributions for the primary or 
     runoff election that caused the candidate to exceed the 
     limitation on contributions from out-of-State residents under 
     subsection (f);
       ``(B) at least one other candidate has qualified for the 
     same general election ballot under the law of the candidate's 
     State;
       ``(C) the candidate and the authorized committees of the 
     candidate--
       ``(i) except as otherwise provided by this title, will not 
     make expenditures that exceed the general election 
     expenditure limit under section 502(b);
       ``(ii) will not accept any contributions in violation of 
     section 315; and
       ``(iii) except as otherwise provided by this title, will 
     not accept any contribution for the general election involved 
     to the extent that the contribution--

       ``(I) would cause the aggregate amount of contributions to 
     exceed the sum of the amount of the general election 
     expenditure limit under section 502(b), reduced by any 
     amounts transferred to the current election cycle from a 
     previous election cycle and not taken into account under 
     subparagraph (A)(ii); or
       ``(II) would cause the candidate to exceed the limitation 
     on contributions from out-of-State residents under subsection 
     (f); and

[[Page S6617]]

       ``(D) the candidate intends to make use of the benefits 
     provided under section 503.
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than 7 days 
     after the earlier of--
       ``(A) the date on which the candidate qualifies for the 
     general election ballot under State law; or
       ``(B) if under State law, a primary or runoff election to 
     qualify for the general election ballot occurs after 
     September 1, the date on which the candidate wins the primary 
     or runoff election.
       ``(e) Threshold Contribution Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate and the candidate's authorized 
     committees have received allowable contributions during the 
     applicable period in an amount at least equal to the lesser 
     of--
       ``(A) 10 percent of the general election expenditure limit 
     under section 502(b); or
       ``(B) $250,000.
       ``(2) Definitions.--In this subsection:
       ``(A) Allowable contribution.--The term `allowable 
     contribution'--
       ``(i) means a contribution that is made as a gift of money 
     by an individual pursuant to a written instrument identifying 
     the individual as the contributor; but
       ``(ii) does not include a contribution from an individual 
     residing outside the candidate's State to the extent that 
     acceptance of the contribution would bring a candidate out of 
     compliance with subsection (f).
       ``(B) Applicable period.--The term `applicable period' 
     means--
       ``(i) the period beginning on January 1 of the calendar 
     year preceding the calendar year of the general election 
     involved and ending on the date on which the certification 
     under subsection (c)(2) is filed by the candidate; or
       ``(ii) in the case of a special election for the office of 
     Senator, the period beginning on the date on which the 
     vacancy in the office occurs and ending on the date of the 
     general election.
       ``(f) Limitation on Out-of-State Contributions.--
       ``(1) Requirements.--
       ``(A) In general.--The requirements of this subsection are 
     met if at least 60 percent of the total amount of 
     contributions accepted by the candidate and the candidate's 
     authorized committees are from individuals who are legal 
     residents of the candidate's State.
       ``(B) Special rule for small states.--In the case of a 
     candidate to which the general election expenditure limit 
     under section 502(b)(1)(B)(i) applies, the requirements of 
     this subsection are met if, at the option of the candidate--
       ``(i) at least 60 percent of the total amount of 
     contributions accepted by the candidate and the candidate's 
     authorized committees are from individuals who are legal 
     residents of the candidate's State; or
       ``(ii) at least 60 percent of the number of individuals 
     whose names are reported to the Commission as individuals 
     from whom the candidate and the candidate's authorized 
     committees accept contributions are legal residents of the 
     candidate's State.
       ``(2) Personal funds.--For purposes of paragraph (1), 
     amounts consisting of funds from sources described in section 
     502(a) shall be treated as contributions from individuals 
     residing outside the candidate's State.
       ``(3) Time for determination.--A determination whether the 
     requirements of paragraph (1) are met shall be made each time 
     a candidate is required to file a report under section 304 
     and shall be made on an aggregate basis.
       ``(4) Reporting requirements.--In addition to information 
     required to be reported under section 304, a candidate that 
     elects to comply with the requirements of paragraph 
     (1)(B)(ii) shall include in each report required to be filed 
     under section 304 the name and address of each individual 
     that, during the calendar year in which the reporting period 
     occurs, makes contributions aggregating $20 or more.

     ``SEC. 502. LIMITATION ON EXPENDITURES.

       ``(a) Limitation on Use of Personal Funds.--
       ``(1) In general.--The aggregate amount of expenditures 
     that may be made during an election cycle by an eligible 
     Senate candidate or the candidate's authorized committees 
     from the sources described in paragraph (2) shall not exceed 
     the lesser of--
       ``(A) 10 percent of the general election expenditure limit 
     under subsection (b); or
       ``(B) $250,000.
       ``(2) Sources.--A source is described in this paragraph if 
     the source is--
       ``(A) personal funds of the candidate and members of the 
     candidate's immediate family; or
       ``(B) personal loans incurred by the candidate and members 
     of the candidate's immediate family.
       ``(3) Amended declaration.--A candidate who--
       ``(A) declares, pursuant to this title, that the candidate 
     does not intend to expend funds described in paragraph (2) in 
     excess of the amount applicable to the candidate under 
     paragraph (1); and
       ``(B) subsequently changes the declaration or expends such 
     funds in excess of that amount,
     shall file an amended declaration with the Commission and 
     notify all other candidates for the same office not later 
     than 24 hours after changing the declaration or exceeding the 
     limits, whichever occurs first, by sending a notice by 
     certified mail, return receipt requested.
       ``(b) General Election Expenditure Limit.--
       ``(1) In general.--Except as otherwise provided in this 
     title, the aggregate amount of expenditures for a general 
     election by an eligible Senate candidate and the candidate's 
     authorized committees shall not exceed the lesser of--
       ``(A) $5,500,000; or
       ``(B) the greater of--
       ``(i) $950,000; or
       ``(ii) $400,000; plus

       ``(I) 30 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(II) 25 cents multiplied by the voting age population in 
     excess of 4,000,000.

       ``(2) Exception.--In the case of an eligible Senate 
     candidate in a State that has not more than 1 transmitter for 
     a commercial Very High Frequency (VHF) television station 
     licensed to operate in that State, paragraph (1)(B)(ii) shall 
     be applied by substituting--
       ``(A) `80 cents' for `30 cents' in subclause (I); and
       ``(B) `70 cents' for `25 cents' in subclause (II).
       ``(3) Indexing.--The amount otherwise determined under 
     paragraph (1) for any calendar year shall be increased by the 
     same percentage as the percentage increase for such calendar 
     year under section 501(b)(2).
       ``(c) Payment of Taxes.--The limitation under subsection 
     (b) shall not apply to any expenditure for Federal, State, or 
     local taxes with respect to earnings on contributions raised.
       ``(d) Exceptions for Complying Candidates Running Against 
     Noncomplying Candidates.--
       ``(1) Excessive contributions to, or personal expenditures 
     by, opposing candidate.--
       ``(A) 10 percent excess.--
       ``(i) In general.--If any opponent of an eligible Senate 
     candidate is a noneligible candidate who--

       ``(I) has received contributions; or
       ``(II) has made expenditures from a source described in 
     subsection (a);

     in an aggregate amount equal to 110 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate candidate, the general election expenditure 
     limit, primary election expenditure limit, or runoff election 
     expenditure limit (as the case may be) applicable to the 
     eligible Senate candidate shall be increased by 20 percent.
       ``(ii) Fundraising in anticipation of increase.--
     Notwithstanding any other provision of this title, if any 
     opponent of an eligible Senate candidate is a noneligible 
     candidate who--

       ``(I) has received contributions; or
       ``(II) has made expenditures from a source described in 
     subsection (a);

     in an aggregate amount equal to 50 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate candidate, the eligible Senate candidate may 
     accept contributions in excess of the general election 
     expenditure limit, primary election expenditure limit, or 
     runoff election expenditure limit (as the case may be) so 
     long as the eligible Senate candidate does not make any 
     expenditures with such excess contributions before becoming 
     entitled to an increase in the limit under clause (i).
       ``(B) 50 percent excess.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who--

       ``(I) has received contributions; or
       ``(II) has made expenditures from a source described in 
     subsection (a);

     in an aggregate amount equal to 150 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate candidate, the general election expenditure 
     limit, primary election expenditure limit, or runoff election 
     expenditure limit (as the case may be) applicable to the 
     eligible Senate candidate shall be increased by 50 percent.
       ``(C) 100 percent excess.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who--

       ``(I) has received contributions; or
       ``(II) has made expenditures from a source described in 
     subsection (a);

     in an aggregate amount equal to 200 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate core //idate, the general election 
     expenditure limit, primary election expenditure limit, or 
     runoff election expenditure limit (as the case may be) 
     applicable to the eligible Senate candidate shall be 
     increased by 100 percent.
       ``(2) Revocation of eligibility of opponent.--If the status 
     of eligible Senate candidate of any opponent of an eligible 
     Senate candidate is revoked under section 505(a), the general 
     election expenditure limit applicable to the eligible Senate 
     candidate shall be increased by 20 percent.
       ``(e) Expenditures in Response to Independent 
     Expenditures.--If an eligible Senate candidate is notified by 
     the Commission under section 304(c)(4) that independent 
     expenditures totaling $10,000 or more have been

[[Page S6618]]

     made in the same election in favor of another candidate or 
     against the eligible candidate, the eligible candidate shall 
     be permitted to spend an amount equal to the amount of the 
     independent expenditures, and any such expenditures shall not 
     be subject to any limit applicable under this title to the 
     eligible candidate for the election.

     ``SEC. 503. BENEFITS THAT ELIGIBLE CANDIDATES ARE ENTITLED TO 
                   RECEIVE.

       ``An eligible Senate candidate shall be entitled to 
     receive--
       ``(1) the broadcast media rates provided under section 
     315(b) of the Communications Act of 1934;
       ``(2) the free broadcast time provided under section 315(c) 
     of the Communications Act of 1934; and
       ``(3) the reduced postage rates provided in section 3626(e) 
     of title 39, United States Code.

     ``SEC. 504. CERTIFICATION BY COMMISSION.

       ``(a) In General.--Not later than 48 hours after an 
     eligible candidate qualifies for a general election ballot, 
     the Commission shall certify the candidate's eligibility for 
     free broadcast time under section 315(c) of the 
     Communications Act of 1934. The Commission shall revoke the 
     certification if the Commission determines that a candidate 
     fails to continue to meet the requirements of this title.
       ``(b) Determinations by Commission.--A determination 
     (including a certification under subsection (a)) made by the 
     Commission under this title shall be final, except to the 
     extent that the determination is subject to examination and 
     audit by the Commission under section 505.

     ``SEC. 505. REVOCATION; MISUSE OF BENEFITS.

       ``(a) Revocation of Status.--
       ``(1) In general.--If the Commission determines that any 
     eligible Senate candidate--
       ``(A) has received contributions in excess of 110 percent 
     of--
       ``(i) the applicable primary election limit under this 
     title;
       ``(ii) the applicable general election limit under this 
     title; or
       ``(iii) the limitation on contributions from out-of-State 
     residents under section 501(f); or
       ``(B) has expended personal funds in excess of 110 percent 
     of the limit under section 502(a),
     the Commission shall revoke the certification of the 
     candidate as an eligible Senate candidate and notify the 
     candidate of the revocation.
       ``(2) Payment of value of benefits.--On receipt of 
     notification of revocation of eligibility under paragraph 
     (1), a candidate--
       ``(A) shall pay an amount equal to the value of the 
     benefits received under this title; and
       ``(B) shall be ineligible for benefits available under 
     section 315(b) of the Communications Act of 1934 (47 U.S.C. 
     315(b)) for the duration of the election cycle.
       ``(b) Misuse of Benefits.--If the Commission determines 
     that any benefit made available to an eligible Senate 
     candidate under this title was not used as provided for in 
     this title or that a candidate has violated any of the 
     spending limits contained in this Act, the Commission shall 
     so notify the candidate, and the candidate shall pay an 
     amount equal to the value of the benefit.''.
       (b) Transition Period.--Expenditures made before January 1, 
     1997, shall not be counted as expenditures for purposes of 
     the limitations contained in the amendment made by subsection 
     (a).

     SEC. 102. FREE BROADCAST TIME.

       (a) In General.--Section 315 of the Communications Act of 
     1934 (47 U.S.C. 315) is amended--
       (1) in the third sentence of subsection (a) by striking 
     ``within the meaning of this subsection'' and inserting 
     ``within the meaning of this subsection and subsection (c)'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Free Broadcast Time.--
       ``(1) In general.--Except as provided in paragraph (3), 
     each eligible Senate candidate who has qualified for the 
     general election ballot as a candidate of a major or minor 
     party shall be entitled to receive a total of 30 minutes of 
     free broadcast time from broadcasting stations within the 
     candidate's State or an adjacent State.
       ``(2) Time.--
       ``(A) Prime time.--Unless a candidate elects otherwise, the 
     broadcast time made available under this subsection shall be 
     between 6:00 p.m. and 10:00 p.m. on any day that falls on 
     Monday through Friday.
       ``(B) Length of broadcast.--Except as otherwise provided in 
     this Act, a candidate may use such time as the candidate 
     elects, but time may not be used in lengths of less than 30 
     seconds or more than 5 minutes.
       ``(C) Maximum required of any one station.--A candidate may 
     not request that more than 15 minutes of free broadcast time 
     be aired by any one broadcasting station.
       ``(3) More than 2 candidates.--In the case of an election 
     among more than 2 candidates described in paragraph (1), only 
     60 minutes of broadcast time shall be available for all such 
     candidates, and broadcast time shall be allocated as follows:
       ``(A) Minor party candidates.--The amount of broadcast time 
     that shall be provided to the candidate of a minor party 
     shall be equal to 60 minutes multiplied by the percentage of 
     the number of popular votes received by the candidate of that 
     party in the preceding general election for the Senate in the 
     State (or if subsection (e)(4)(B) applies, the percentage 
     determined under that subsection).
       ``(B) Major party candidates.--The amount of broadcast time 
     remaining after assignment of broadcast time to minor party 
     candidates under clause (i) shall be allocated equally 
     between the major party candidates.
       ``(4) Only 1 candidate.--In the case of an election in 
     which only 1 candidate qualifies to be on the general 
     election ballot, no time shall be required to be provided by 
     a broadcasting station under this subsection.
       ``(5) Exemption.--The Federal Election Commission shall by 
     regulation exempt from the requirements of this subsection--
       ``(A) a licensee the signal of which is broadcast 
     substantially nationwide; and
       ``(B) a licensee that establishes that the requirements of 
     this subsection would impose a significant economic hardship 
     on the licensee.''; and
       (4) in subsection (d) (as redesignated by paragraph (2))--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(3) the term `major party' means, with respect to an 
     election for the United States Senate in a State, a political 
     party whose candidate for the United States Senate in the 
     preceding general election for the Senate in that State 
     received, as a candidate of that party, 25 percent or more of 
     the number of popular votes received by all candidates for 
     the Senate;
       ``(4) the term `minor party' means, with respect to an 
     election for the United States Senate in a State, a political 
     party--
       ``(A) whose candidate for the United States Senate in the 
     preceding general election for the Senate in that State 
     received 5 percent or more but less than 25 percent of the 
     number of popular votes received by all candidates for the 
     Senate; or
       ``(B) whose candidate for the United States Senate in the 
     current general election for the Senate in that State has 
     obtained the signatures of at least 5 percent of the State's 
     registered voters, as determined by the chief voter 
     registration official of the State, in support of a petition 
     for an allocation of free broadcast time under this 
     subsection; and
       ``(5) the term `Senate election cycle' means, with respect 
     to an election to a seat in the United States Senate, the 6-
     year period ending on the date of the general election for 
     that seat.''.
       (b) Jurisdiction Over Challenges to Broadcast Media Rates 
     and Free Broadcast Time.--
       (1) In general.--The United States Court of Federal Claims 
     shall have exclusive jurisdiction over any action challenging 
     the constitutionality of the broadcast media rates and free 
     broadcast time required to be offered to political candidates 
     under section 503 of the Federal Election Campaign Act of 
     1971 and section 315 of the Communications Act of 1934.
       (2) Remedy.--Money damages shall be the sole and exclusive 
     remedy in an action under paragraph (1), and only an 
     individual or entity that suffers actual financial injury 
     shall have standing to maintain such an action.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997.

     SEC. 103. BROADCAST RATES AND PREEMPTION.

       (a) Broadcast Rates.--Section 315(b) of the Communications 
     Act of 1934 (47 U.S.C. 315(b)) is amended--
       (1) by striking ``(b) The charges'' and inserting the 
     following:
       ``(b) Broadcast Media Rates.--
       ``(1) In general.--The charges'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (3) in paragraph (1)(A) (as redesignated by paragraph 
     (2))--
       (A) by striking ``forty-five'' and inserting ``30''; and
       (B) by striking ``lowest unit charge of the station for the 
     same class and amount of time for the same period'' and 
     inserting ``lowest charge of the station for the same amount 
     of time for the same period on the same date''; and
       (4) by adding at the end the following:
       ``(2) Eligible senate candidates.--In the case of an 
     eligible Senate candidate (within the meaning of section 
     501(a) of the Federal Election Campaign Act), the charges for 
     the use of a television broadcasting station during the 30-
     day period and 60-day period referred to in paragraph (1)(A) 
     shall not exceed 50 percent of the lowest charge described in 
     paragraph (1)(A).''.
       (b) Preemption; Access.--Section 315 of the Communications 
     Act of 1934 (47 U.S.C. 315), as amended by section 102(a), is 
     amended--
       (1) by redesignating subsections (d) and (e) (as 
     redesignated by section 102(a)(2)), as subsections (e) and 
     (f), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Preemption.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     licensee shall not preempt the use, during any period 
     specified in subsection (b)(1)(A), of a broadcasting station 
     by an eligible Senate candidate who has purchased and paid 
     for such use pursuant to subsection (b)(2).
       ``(2) Circumstances beyond control of licensee.--If a 
     program to be broadcast by a broadcasting station is 
     preempted because of circumstances beyond the control of the

[[Page S6619]]

     broadcasting station, any candidate advertising spot 
     scheduled to be broadcast during that program may also be 
     preempted.''.
       (c) Revocation of License for Failure To Permit Access.--
     Section 312(a)(7) of the Communications Act of 1934 (47 
     U.S.C. 312(a)(7)) is amended--
       (1) by striking ``or repeated'';
       (2) by inserting ``or cable system'' after ``broadcasting 
     station''; and
       (3) by striking ``his candidacy'' and inserting ``the 
     candidacy of the candidate, under the same terms, conditions, 
     and business practices as apply to the most favored 
     advertiser of the licensee''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997.

     SEC. 104. REDUCED POSTAGE RATES.

       (a) In General.--Section 3626(e) of title 39, United States 
     Code, is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) by striking ``and the National'' and inserting ``the 
     National''; and
       (ii) by inserting before the semicolon the following: ``, 
     and, subject to paragraph (3), the principal campaign 
     committee of an eligible Senate candidate;'';
       (B) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (C) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(D) the term `principal campaign committee' has the 
     meaning stated in section 301 of the Federal Election 
     Campaign Act of 1971; and
       ``(E) the term `eligible Senate candidate' means an 
     eligible Senate candidate (within the meaning of section 
     501(a) of the Federal Election Campaign Act of 1971).''; and
       (2) by adding after paragraph (2) the following:
       ``(3) The rate made available under this subsection with 
     respect to an eligible Senate candidate shall apply only to 
     that number of pieces of mail that is equal to 2 times the 
     number of individuals in the voting age population (as 
     certified under section 315(e) of the Federal Election 
     Campaign Act of 1971) of the State.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997..

     SEC. 105. CONTRIBUTION LIMIT FOR ELIGIBLE SENATE CANDIDATES.

       Section 315(a)(1) of FECA (2 U.S.C. 441a(a)(1)) is 
     amended--
       (1) in subparagraph (A) by inserting ``except as provided 
     in subparagraph (B),'' before ``to'';
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively; and
       (3) by inserting after subparagraph (A) the following:
       ``(B) if the general election expenditure, primary election 
     expenditure limit, or runoff election expenditure limit 
     applicable to an eligible Senate candidate has been increased 
     under section 502(d), to the eligible Senate candidate and 
     the authorized political committees of the candidate with 
     respect to any election for the office of United States 
     Senator, which, in the aggregate, exceed $2,000;''.

     SEC. 106. REPORTING REQUIREMENT FOR ELIGIBLE SENATE 
                   CANDIDATES.

       Section 304(b)(2) of FECA (2 U.S.C. 434(b)(2)) is amended 
     by striking ``and'' at the end of subparagraph (J), by 
     striking the period at the end of subparagraph (K) and 
     inserting ``; and'', and by adding at the end the following 
     new subparagraph:
       ``(L) in the case of an eligible Senate candidate, the 
     total amount of contributions from individuals who are 
     residents of the State in which the candidate seeks 
     office.''.
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE
  Subtitle A--Elimination of Political Action Committees From Federal 
                          Election Activities

     SEC. 201. BAN ON ACTIVITIES OF POLITICAL ACTION COMMITTEES IN 
                   FEDERAL ELECTIONS.

       (a) In General.--Title III of FECA (2 U.S.C. 301 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 324. BAN ON FEDERAL ELECTION ACTIVITIES BY POLITICAL 
                   ACTION COMMITTEES.

       ``Notwithstanding any other provision of this Act, no 
     person other than an individual or a political committee may 
     make a contribution to a candidate or candidate's authorized 
     committee.''.
       (b) Definition of Political Committee.--(1) Section 301(4) 
     of FECA (2 U.S.C. 431(4)) is amended to read as follows:
       ``(4) The term `political committee' means--
       ``(A) the principal campaign committee of a candidate;
       ``(B) any national, State, or district committee of a 
     political party, including any subordinate committee thereof;
       ``(C) any local committee of a political party that--
       ``(i) receives contributions aggregating in excess of 
     $5,000 during a calendar year;
       ``(ii) makes payments exempted from the definition of 
     contribution or expenditure under paragraph (8) or (9) 
     aggregating in excess of $5,000 during a calendar year; or
       ``(iii) makes contributions or expenditures aggregating in 
     excess of $1,000 during a calendar year; and
       ``(D) any committee jointly established by a principal 
     campaign committee and any committee described in 
     subparagraph (B) or (C) for the purpose of conducting joint 
     fundraising activities.''.
       (2) Section 316(b)(2) of FECA (2 U.S.C. 441b(b)(2)) is 
     amended--
       (A) by inserting ``or'' after ``subject;'';
       (B) by striking ``and their families; and'' and inserting 
     ``and their families.''; and
       (C) by striking subparagraph (C).
       (c) Candidate's Committees.--(1) Section 315(a) of FECA (2 
     U.S.C. 441a(a)) is amended by adding at the end the following 
     new paragraph:
       ``(9) For the purposes of the limitations provided by 
     paragraphs (1) and (2), any political committee that is 
     established, financed, maintained, or controlled, directly or 
     indirectly, by any candidate or Federal officeholder shall be 
     deemed to be an authorized committee of such candidate or 
     officeholder.''.
       (2) Section 302(e)(3) of FECA (2 U.S.C. 432) is amended to 
     read as follows:
       ``(3) No political committee that supports, or has 
     supported, more than one candidate may be designated as an 
     authorized committee, except that--
       ``(A) a candidate for the office of President nominated by 
     a political party may designate the national committee of 
     such political party as the candidate's principal campaign 
     committee, if that national committee maintains separate 
     books of account with respect to its functions as a principal 
     campaign committee; and
       ``(B) a candidate may designate a political committee 
     established solely for the purpose of joint fundraising by 
     such candidates as an authorized committee.''.
       (d) Rules Applicable When Ban Not in Effect.--(1) For 
     purposes of FECA, during any period beginning after the 
     effective date in which the limitation under section 324 of 
     that Act (as added by subsection (a)) is not in effect--
       (A) the amendments made by subsections (a), (b), and (c) 
     shall not be in effect;
       (B) it shall be unlawful for a multicandidate political 
     committee, intermediary, or conduit to make a contribution to 
     a candidate for election, or nomination for election, to 
     Federal office (or an authorized committee) to the extent 
     that the making or accepting of the contribution will cause 
     the amount of contributions received by the candidate and the 
     candidate's authorized committees from multicandidate 
     political committees, intermediaries, or conduits to exceed 
     20 percent of the aggregate Federal election spending limits 
     applicable to the candidate for the election cycle; and
       (C) it shall be unlawful for a political committee, 
     intermediary, or conduit to make a contribution to a 
     candidate for election, or a nomination for an election, to 
     Federal office (or an authorized committee of such candidate) 
     in excess of the amount an individual is allowed to give 
     directly to a candidate or a candidate's authorized 
     committee.
     For purposes of this paragraph, the term ``intermediary or 
     conduit'' has the meaning stated in section 315(a)(8) of 
     FECA.
       (2) A candidate or authorized committee that receives a 
     contribution from a multicandidate political committee in 
     excess of the amount allowed under paragraph (1)(B) shall 
     return the amount of such excess contribution to the 
     contributor.
   Subtitle B--Provisions Relating to Soft Money of Political Parties

     SEC. 211. SOFT MONEY OF POLITICAL PARTIES.

       Title III of FECA (2 U.S.C. 301 et seq.) (as amended by 
     section 201) is amended by adding at the end the following:

     ``SEC. 325. SOFT MONEY OF POLITICAL PARTIES.

       ``(a) National Committes.--A national committee of a 
     political party (including a national congressional campaign 
     committee of a political party, an entity that is 
     established, financed, maintained, or controlled by the 
     national committee, a national congressional campaign 
     committee of a political party, and an officer or agent of 
     any such party or entity but not including an entity 
     regulated under subsection (b)) shall not solicit or receive 
     any contributions, donations, or transfers of funds, or spend 
     any funds, not subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(b) State, District, and Local Committees.--
       ``(1) Limitation.--Any amount that is expended or disbursed 
     by a State, district, or local committee of a political party 
     (including an entity that is established, financed, 
     maintained, or controlled by a State, district, or local 
     committee of a political party and an agent or officer of any 
     such committee or entity) during a calendar year in which a 
     Federal election is held, for any activity that might affect 
     the outcome of a Federal election, including any voter 
     registration or get-out-the-vote activity, any generic 
     campaign activity, and any communication that identifies a 
     candidate (regardless of whether a candidate for State or 
     local office is also mentioned or identified) shall be made 
     from funds subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(2) Activity not included in paragraph (1).--
       ``(A) In general.--Paragraph (1) shall not apply to an 
     expenditure or disbursement made by a State, district, or 
     local committee of a political party for--
       ``(i) a contribution to a candidate for State or local 
     office if the contribution is not designated or otherwise 
     earmarked to pay for an activity described in paragraph (1);
       ``(ii) the costs of a State, district, or local political 
     convention;

[[Page S6620]]

       ``(iii) the non-Federal share of a State, district, or 
     local party committee's administrative and overhead expenses 
     (but not including the compensation in any month of any 
     individual who spends more than 20 percent of the 
     individual's time on activity during the month that may 
     affect the outcome of a Federal election) except that for 
     purposes of this paragraph, the non-Federal share of a party 
     committee's administrative and overhead expenses shall be 
     determined by applying the ratio of the non-Federal 
     disbursements to the total Federal expenditures and non-
     Federal disbursements made by the committee during the 
     previous presidential election year to the committee's 
     administrative and overhead expenses in the election year in 
     question;
       ``(iv) the costs of grassroots campaign materials, 
     including buttons, bumper stickers, and yard signs that name 
     or depict only a candidate for State or local office; and
       (v) the cost of any campaign activity conducted solely on 
     behalf of a clearly identified candidate for State or local 
     office, if the candidate activity is not an activity 
     described in paragraph (1).
       ``(B) Fundraising.--Any amount that is expended or 
     disbursed by a national, State, district, or local committee, 
     by an entity that is established, financed, maintained, or 
     controlled by a State, district, or local committee of a 
     political party, or by an agent or officer of any such 
     committee or entity to raise funds that are used, in whole or 
     in part, to pay the costs of an activity described in 
     subparagraph (A) shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(c) Tax-exempt Organizations.--No national, State, 
     district, or local committee of a political party shall 
     solicit any funds for or make any donations to an 
     organization that is exempt from Federal taxation under 
     section 501(c) of the Internal Revenue Code of 1986.
       ``(d) Candidates.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     candidate, individual holding Federal office, or agent of a 
     candidate or individual holding Federal office may--
       ``(A) solicit or receive funds in connection with an 
     election for Federal office unless the funds are subject to 
     the limitations, prohibitions, and reporting requirements of 
     this Act; or
       ``(B) solicit or receive funds that are to be expended in 
     connection with any election for other than a Federal 
     election unless the funds--
       ``(i) are not in excess of the amounts permitted with 
     respect to contributions to candidates and political 
     committees under section 315(a) (1) and (2); and
       ``(ii) are not from sources prohibited by this Act from 
     making contributions with respect to an election for Federal 
     office.
       ``(2) Exception.--Paragraph (1) does not apply to the 
     solicitation or receipt of funds by an individual who is a 
     candidate for a State or local office if the solicitation or 
     receipt of funds is permitted under State law for the 
     individual's State or local campaign committee.''.

     SEC. 212. STATE PARTY GRASSROOTS FUNDS.

       (a) Individual Contributions.--Section 315(a)(1) of FECA (2 
     U.S.C. 441a(a)(1)) (as amended by section 105) is amended--
       (1) in subparagraph (C) by striking ``or'' at the end;
       (2) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (3) by inserting after subparagraph (C) the following:
       ``(D) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $20,000;
       ``(ii) any other political committee established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $5,000;

     except that the aggregate contributions described in this 
     subparagraph that may be made by a person to the State Party 
     Grassroots Fund and all committees of a State Committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Multicandidate Committee Contributions to State 
     Party.--Section 315(a)(2) of FECA (2 U.S.C. 441a(a)(2)) is 
     amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following:
       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which in the aggregate, exceed $15,000;
       ``(ii) to any other political committee established and 
     maintained by a State committee of a political party which, 
     in the aggregate, exceed $5,000;

     except that the aggregate contributions described in this 
     subparagraph that may be made by a multicandidate political 
     committee to the State Party Grassroots Fund and all 
     committees of a State Committee of a political party in any 
     State in any calendar year shall not exceed $15,000; or''.
       (c) Overall Limit.--
       (1) In general.--Section 315(a) of FECA (2 U.S.C. 441a(a)) 
     is amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Overall limit.--
       ``(A) Election cycle.--No individual shall make 
     contributions during any election cycle that, in the 
     aggregate, exceed $60,000.
       ``(B) Calendar year.--No individual shall make 
     contributions during any calendar year--
       ``(i) to all candidates and their authorized political 
     committees that, in the aggregate, exceed $25,000; or
       ``(ii) to all political committees established and 
     maintained by State committees of a political party that, in 
     the aggregate, exceed $20,000.
       ``(C) Nonelection years.--For purposes of subparagraph 
     (B)(i), any contribution made to a candidate or the 
     candidate's authorized political committees in a year other 
     than the calendar year in which the election is held with 
     respect to which the contribution is made shall be treated as 
     being made during the calendar year in which the election is 
     held.''.
       (2) Definition.--Section 301 of FECA (2 U.S.C. 431) is 
     amended by adding at the end the following:
       ``(20) Election cycle.--The term `election cycle' means--
       ``(A) in the case of a candidate or the authorized 
     committees of a candidate, the period beginning on the day 
     after the date of the most recent general election for the 
     specific office or seat that the candidate seeks and ending 
     on the date of the next general election for that office or 
     sea; and
       ``(B) in the case of all other persons, the period 
     beginning on the first day following the date of the last 
     general election and ending on the date of the next general 
     election.''.
       (d) State Party Grassroots Funds.--
       (1) In general.--Title III of FECA (2 U.S.C. 301 et seq.) 
     (as amended by section 211) is amended by adding at the end 
     the following:

     ``SEC. 326. STATE PARTY GRASSROOTS FUNDS.

       ``(a) Definition.--In this section, the term `State or 
     local candidate committee' means a committee established, 
     financed, maintained, or controlled by a candidate for other 
     than Federal office.
       ``(b) Transfers.--Notwithstanding section 315(a)(4), no 
     funds may be transferred by a State committee of a political 
     party from its State Party Grassroots Fund to any other State 
     Party Grassroots Fund or to any other political committee, 
     except a transfer may be made to a district or local 
     committee of the same political party in the same State if 
     the district or local committee--
       ``(1) has established a separate segregated fund for the 
     purposes described in section 325(b)(1); and
       ``(2) uses the transferred funds solely for those purposes.
       ``(c) Amounts Received by Grassroots Funds From State and 
     Local Candidate Committees.--
       ``(1) In general.--Any amount received by a State Party 
     Grassroots Fund from a State or local candidate committee for 
     expenditures described in section 325(b)(1) that are for the 
     benefit of that candidate shall be treated as meeting the 
     requirements of 325(b)(1) and section 304(d) if--
       ``(A) the amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A); and
       ``(B) the State or local candidate committee--
       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether those requirements are met; and
       ``(ii) certifies that the requirements were met.
       ``(2) Determination of compliance.--For purposes of 
     paragraph (1)(A), in determining whether the funds 
     transferred meet the requirements of this Act described in 
     paragraph (1)(A)--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee; and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains funds meeting those requirements 
     sufficient to cover the transferred funds.
       ``(3) Reporting.--Notwithstanding paragraph (1), any State 
     Party Grassroots Fund that receives a transfer described in 
     paragraph (1) from a State or local candidate committee shall 
     be required to meet the reporting requirements of this Act, 
     and shall submit to the Commission all certifications 
     received, with respect to receipt of the transfer from the 
     candidate committee.''.
       (2) Definition.--Section 301 of FECA (2 U.S.C. 431) (as 
     amended by subsection (c)(2)) is amended by adding at the end 
     the following:
       ``(21) State party grassroots fund.--The term `State Party 
     Grassroots Fund' means a separate segregated fund established 
     and maintained by a State committee of a political party 
     solely for the purpose of making expenditures and other 
     disbursements described in section 325(a).''.

     SEC. 213. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of FECA (2 U.S.C. 
     434) is amended by adding at the end the following new 
     subsection:
       ``(d) Political Committees.--(1) The national committee of 
     a political party, any congressional campaign committee of a 
     political party, and any subordinate committee of either, 
     shall report all receipts and disbursements during the 
     reporting period, whether or not in connection with an 
     election for Federal office.

[[Page S6621]]

       ``(2) A political committee (not described in paragraph 
     (1)) to which section 325(b)(1) applies shall report all 
     receipts and disbursements.
       ``(3) Any political committee shall include in its report 
     under paragraph (1) or (2) the amount of any contribution 
     received by a national committee which is to be transferred 
     to a State committee for use directly (or primarily to 
     support) activities described in section 325(b)(2) and shall 
     itemize such amounts to the extent required by subsection 
     (b)(3)(A).
       ``(4) Any political committee to which paragraph (1) or (2) 
     does not apply shall report any receipts or disbursements 
     that are used in connection with a Federal election.
       ``(5) If a political committee has receipts or 
     disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for such person in the same manner as required in 
     subsection (b) (3)(A), (5), or (6).
       ``(6) Reports required to be filed under this subsection 
     shall be filed for the same time periods required for 
     political committees under subsection (a).''.
       (b) Report of Exempt Contributions.--Section 301(8) of FECA 
     (2 U.S.C. 431(8)) is amended by inserting at the end the 
     following:
       ``(C) The exclusion provided in subparagraph (B)(viii) 
     shall not apply for purposes of any requirement to report 
     contributions under this Act, and all such contributions 
     aggregating in excess of $200 shall be reported.''.
       (c) Reports by State Committees.--Section 304 of FECA (2 
     U.S.C. 434), as amended by subsection (a), is amended by 
     adding at the end the following new subsection:
       ``(e) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines such reports contain substantially 
     the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of FECA (2 
     U.S.C. 434(b)(4)) is amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of FECA (2 
     U.S.C. 434(b)(5)(A)) is amended--
       (A) by striking ``within the calendar year''; and
       (B) by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.
     Subtitle C--Soft Money of Persons Other Than Political Parties

     SEC. 221. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 215) is amended by adding 
     at the end the following:
       ``(f) Election Activity of Persons Other Than Political 
     Parties.--
       ``(1) In general.--A person other than a committee of a 
     political party that makes aggregate disbursements totaling 
     in excess of $10,000 for activities described in paragraph 
     (2) shall file a statement with the Commission--
       ``(A) within 48 hours after the disbursements are made; or
       ``(B) in the case of disbursements that are made within 20 
     days of an election, within 24 hours after the disbursements 
     are made.
       ``(2) Activity.--The activity described in this paragraph 
     is--
       ``(A) any activity described in section 441(b)(2)(A) that 
     refers to any candidate for Federal office, any political 
     party, or any Federal election; and
       ``(B) any activity described in section 441b(b)(2) (B) or 
     (C).
       ``(3) Additional statements.--An additional statement shall 
     be filed each time additional disbursements aggregating 
     $10,000 are made by a person described in paragraph (1).
       ``(4) Applicability.--This subsection does not apply to--
       ``(A) a candidate or a candidate's authorized committees; 
     or
       ``(B) an independent expenditure.
       ``(5) Contents.--A statement under this section shall 
     contain such information about the disbursements as the 
     Commission shall prescribe, including--
       ``(A) the name and address of the person or entity to whom 
     the disbursement was made;
       ``(B) the amount and purpose of the disbursement; and
       ``(C) if applicable, whether the disbursement was in 
     support of, or in opposition to, a candidate or a political 
     party, and the name of the candidate or the political 
     party.''.
                       Subtitle D--Contributions

     SEC. 231. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS.

       Section 315(a)(8) of FECA (2 U.S.C. 441a(a)(8)) is amended 
     by striking paragraph (8) and inserting the following:
       ``(8) Intermediaries and conduits.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Acting on behalf of the entity.--The term `acting on 
     behalf of the entity' means soliciting one or more 
     contributions--

       ``(I) in the name of an entity;
       ``(II) using other than incidental resources of an entity; 
     or
       ``(III) by directing a significant portion of the 
     solicitations to other officers, employees, agents, or 
     members of an entity or their spouses, or by soliciting a 
     significant portion of the other officers, employees, agents, 
     or members of an entity or their spouses.

       ``(ii) Bundler.--The term `bundler' means an intermediary 
     or conduit that is any of the following persons or entities:

       ``(I) A political committee (other than the authorized 
     campaign committee of the candidate that receives 
     contributions as described in subparagraph (B) or (C)).
       ``(II) Any officer, employee or agent of a political 
     committee described in subclause (I).
       ``(III) An entity.
       ``(IV) Any officer, employee, or agent of an entity who is 
     acting on behalf of the entity.
       ``(V) A person required to be listed as a lobbyist on a 
     registration or other report filed pursuant to the Lobbying 
     Disclosure Act of 1995 (2 U.S.C. 1601 et seq.) or any 
     successor law that requires reporting on the activities of a 
     person who is a lobbyist or foreign agent.

       ``(iii) Deliver.--The term `deliver' means to deliver 
     contributions to a candidate by any method of delivery used 
     or suggested by a bundler that communicates to the candidate 
     (or to the person who receives the contributions on behalf of 
     the candidate) that the bundler collected the contributions 
     for the candidate, including such methods as--

       ``(I) personal delivery;
       ``(II) United States mail or similar services;
       ``(III) messenger service; and
       ``(IV) collection at an event or reception.

       ``(iv) Entity.--The term `entity' means a corporation, 
     labor organization, or partnership.
       ``(B) Treatment as contributions from persons by whom 
     made.--
       ``(i) In general.--For purposes of the limitations imposed 
     by this section, all contributions made by a person, either 
     directly or indirectly, on behalf of a candidate, including 
     contributions that are in any way earmarked or otherwise 
     directed through an intermediary or conduit to the candidate, 
     shall be treated as contributions from the person to the 
     candidate.
       ``(ii) Reporting.--The intermediary or conduit through 
     which a contribution is made shall report the name of the 
     original contributor and the intended recipient of the 
     contribution to the Commission and to the intended recipient.
       ``(C) Treatment as contributions from the bundler.--
     Contributions that a bundler delivers to a candidate, agent 
     of the candidate, or the candidate's authorized committee 
     shall be treated as contributions from the bundler to the 
     candidate as well as from the original contributor.
       ``(D) No limitation on or prohibition of certain 
     activities.--This subsection does not--
       ``(i) limit fundraising efforts for the benefit of a 
     candidate that are conducted by another candidate or Federal 
     officeholder; or
       ``(ii) prohibit any individual described in subparagraph 
     (A)(ii)(IV) from soliciting, collecting, or delivering a 
     contribution to a candidate, agent of the candidate, or the 
     candidate's authorized committee if the individual is not 
     acting on behalf of the entity.''.
                  Subtitle E--Independent Expenditures

     SEC. 241. CLARIFICATION OF DEFINITIONS RELATING TO 
                   INDEPENDENT EXPENDITURES.

       (a) Independent Expenditure Definition Amendment.--Section 
     301 of FECA (2 U.S.C. 431) is amended by striking paragraphs 
     (17) and (18) and inserting the following:
       ``(17) Independent expenditure.--
       ``(A) In general.--The term `independent expenditure' means 
     an expenditure that--
       ``(i) contains express advocacy; and
       ``(ii) is made without the participation or cooperation of, 
     or without the consultation of, a candidate or a candidate's 
     representative.
       ``(B) Items excluded.--The following shall not be 
     considered to be an independent expenditure:
       ``(i) An expenditure made by--

       ``(I) an authorized committee of a candidate for Federal 
     office; or
       ``(II) a political committee of a political party.

       ``(ii) An expenditure if there is any arrangement, 
     coordination, or direction with respect to the expenditure 
     between the candidate or the candidate's agent and the person 
     making the expenditure.
       ``(iii) An expenditure if, in the same election cycle, the 
     person making the expenditure is or has been--

       ``(I) authorized to raise or expend funds on behalf of the 
     candidate or the candidate's authorized committees; or
       ``(II) serving as a member, employee, or agent of the 
     candidate's authorized committees in an executive or 
     policymaking position.

       ``(iv) An expenditure if the person making the expenditure 
     has played a significant role in advising or counseling the 
     candidate or the candidate's agents at any time on the

[[Page S6622]]

     candidate's plans, projects, or needs relating to the 
     candidate's pursuit of nomination for election, or election, 
     to Federal office, in the same election cycle, including any 
     advice relating to the candidate's decision to seek Federal 
     office.
       ``(v) An expenditure if the person making the expenditure 
     retains the professional services of any individual or other 
     person also providing services in the same election cycle to 
     the candidate in connection with the candidate's pursuit of 
     nomination for election, or election, to Federal office, 
     including any services relating to the candidate's decision 
     to seek Federal office. For purposes of this clause, the term 
     `professional services' shall include any services (other 
     than legal and accounting services solely for purposes of 
     ensuring compliance with any Federal law) in support of any 
     candidate's or candidates' pursuit of nomination for 
     election, or election, to Federal office.
       ``(C) Persons included.--For purposes of subparagraph (B), 
     the person making the expenditure shall include any officer, 
     director, employee, or agent of the person.
       ``(18) Express advocacy.--
       ``(A) In general.--The term `express advocacy' means a 
     communication that, taken as a whole and with limited 
     reference to external events, makes an expression of support 
     for or opposition to a specific candidate, to a specific 
     group of candidates, or to candidates of a particular 
     political party.
       ``(B) Expression of support for or opposition to.--In 
     subparagraph (A), the term `expression of support for or 
     opposition to' includes a suggestion to take action with 
     respect to an election, such as to vote for or against, make 
     contributions to, or participate in campaign activity, or to 
     refrain from taking action.
       ``(C) Voting records.--The term `express advocacy' does not 
     include the publication and distribution of a communication 
     that is limited to providing information about votes by 
     elected officials on legislative matters and that does not 
     expressly advocate the election or defeat of a clearly 
     identified candidate.''.
       (b) Contribution Definition Amendment.--Section 301(8)(A) 
     of FECA (2 U.S.C. 431(8)(A)) is amended--
       (1) in clause (i), by striking ``or'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(iii) any payment or other transaction referred to in 
     paragraph (17)(A)(i) that is not an independent expenditure 
     under paragraph (17).''.

     SEC. 242. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304(c) of FECA of 1971 (2 U.S.C. 434(c)) is 
     amended--
       (1) in paragraph (2), by striking the undesignated matter 
     after subparagraph (C);
       (2) by redesignating paragraph (3) as paragraph (7); and
       (3) by inserting after paragraph (2), as amended by 
     paragraph (1), the following new paragraphs:
       ``(3)(A) Any person (including a political committee) 
     making independent expenditures as defined in section 301 
     (17) and (18) with respect to a candidate in an election 
     aggregating $1,000 or more made after the 20th day, but more 
     than 24 hours, before the election shall file a report within 
     24 hours after such independent expenditures are made. An 
     additional report shall be filed each time independent 
     expenditures aggregating $1,000 are made with respect to the 
     same candidate after the latest report filed under this 
     subparagraph.
       ``(B) Any person (including a political committee) making 
     independent expenditures with respect to a candidate in an 
     election aggregating $10,000 or more made at any time up to 
     and including the 20th day before the election shall file a 
     report within 48 hours after such independent expenditures 
     are made. An additional report shall be filed each time 
     independent expenditures aggregating $10,000 are made with 
     respect to the same candidate after the latest report filed 
     under this paragraph.
       ``(C) A report under subparagraph (A) or (B) shall be filed 
     with the Commission and shall identify each candidate whom 
     the expenditure is actually intended to support or to oppose. 
     In the case of an election for United States Senator, the 
     Commission shall, within 2 business days of receipt of a 
     report, transmit a copy of the report to each eligible Senate 
     candidate seeking nomination or election to that office.
       ``(D) For purposes of this section, an independent 
     expenditure shall be considered to have been made upon the 
     making of any payment or the taking of any action to incur an 
     obligation for payment.
       ``(4) The Commission may, upon a request of a candidate or 
     on its own initiative, make its own determination that a 
     person, including a political committee, has made, or has 
     incurred obligations to make, independent expenditures with 
     respect to any candidate in any election which in the 
     aggregate exceed the applicable amounts under paragraph (3). 
     In the case of an election for United States Senator, the 
     Commission shall notify each eligible Senate candidate in 
     such election of such determination made within 2 business 
     days after making it. Any determination made at the request 
     of a candidate shall be made within 48 hours of the request.
       ``(5) In the event that independent expenditures totaling 
     in the aggregate $10,000 have been made in the same election 
     in favor of another candidate or against an eligible Senate 
     candidate, the Commission shall, within 2 business days, 
     notify the eligible candidate that such candidate is entitled 
     to an increase under section 502(e) in the candidate's 
     applicable election limit in an amount equal to the amount of 
     such independent expenditures.''.
                  TITLE III--MISCELLANEOUS PROVISIONS

     SEC. 301. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR PERSONAL 
                   PURPOSES.

       (a) Restrictions on Use of Campaign Funds.--Title III of 
     FECA (2 U.S.C. 431 et seq.) (as amended by section 201) is 
     amended by adding at the end the following new section:

     ``SEC. 325. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR 
                   PERSONAL PURPOSES.

       ``(a) Definitions.--In this section:
       ``(1) Campaign expense.--The term `campaign expense' means 
     an expense that is attributable solely to a bona fide 
     campaign purpose.
       ``(2) Inherently personal purposes.--The term `inherently 
     personal purpose' means a purpose that, by its nature, 
     confers a personal benefit, including a home mortgage, rent, 
     or utility payment, clothing purchase, noncampaign automobile 
     expense, country club membership, vacation, or trip of a 
     noncampaign nature, household food items, tuition payment, 
     admission to a sporting event, concert, theatre or other form 
     of entertainment not associated with a campaign, dues, fees, 
     or contributions to a health club or recreational facility, 
     and any other inherently personal living expense as 
     determined under the regulations promulgated pursuant to 
     section 301(b) of the Senate Campaign Finance Reform Act of 
     1996.
       ``(b) Permitted and Prohibited Uses.--An individual who 
     receives contributions as a candidate for Federal office--
       ``(1) shall use the contributions only for legitimate and 
     verifiable campaign expenses; and
       ``(2) shall not use the contributions for any inherently 
     personal purpose.''.
       (b) Regulations.--Not later than 90 days after the date of 
     enactment of this Act, the Federal Election Commission shall 
     promulgate regulations consistent with this Act to implement 
     subsection (a). Such regulations shall apply to all 
     contributions possessed by an individual on the date of 
     enactment of this Act.

     SEC. 302. CAMPAIGN ADVERTISING AMENDMENTS.

       Section 318 of FECA (2 U.S.C. 441d) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (ii) by striking ``an expenditure'' and inserting ``a 
     disbursement''; and
       (iii) by striking ``direct''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address'' after ``name''; and
       (2) by adding at the end the following new subsections:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;
       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in subsection (a)(1) or subsection (a)(2) shall include, in 
     addition to the requirements of those subsections, an audio 
     statement by the candidate that identifies the candidate and 
     states that the candidate has approved the communication.
       ``(2) If a broadcast or cablecast communication described 
     in paragraph (1) is broadcast or cablecast by means of 
     television, the communication shall include, in addition to 
     the audio statement under paragraph (1), a written statement 
     which--
       ``(A) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(B) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e) Any broadcast or cablecast communication described in 
     subsection (a)(3) shall include, in addition to the 
     requirements of those subsections, in a clearly spoken 
     manner, the following statement: `________________ is 
     responsible for the content of this advertisement.' (with the 
     blank to be filled in with the name of the political 
     committee or other person paying for the communication and 
     the name of any connected organization of the payor). If 
     broadcast or cablecast by means of television, the statement 
     shall also appear in a clearly readable manner with a 
     reasonable degree of color contrast between the background 
     and the printed statement, for a period of at least 4 
     seconds.''.

     SEC. 303. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       Section 302(g) of FECA (2 U.S.C. 432(g)) is amended by 
     adding at the end the following new paragraph:

[[Page S6623]]

       ``(6)(A) The Commission, in consultation with the Secretary 
     of the Senate and the Clerk of the House of Representatives, 
     may prescribe regulations under which persons required to 
     file designations, statements, and reports under this Act--
       ``(i) are required to maintain and file them for any 
     calendar year in electronic form accessible by computers if 
     the person has, or has reason to expect to have, aggregate 
     contributions or expenditures in excess of a threshold amount 
     determined by the Commission; and
       ``(ii) may maintain and file them in that manner if not 
     required to do so under regulations prescribed under clause 
     (i).
       ``(B) The Commission, in consultation with the Secretary of 
     the Senate and the Clerk of the House of Representatives, 
     shall prescribe regulations which allow persons to file 
     designations, statements, and reports required by this Act 
     through the use of facsimile machines.
       ``(C) In prescribing regulations under this paragraph, the 
     Commission shall provide methods (other than requiring a 
     signature on the document being filed) for verifying 
     designations, statements, and reports covered by the 
     regulations. Any document verified under any of the methods 
     shall be treated for all purposes (including penalties for 
     perjury) in the same manner as a document verified by 
     signature.
       ``(D) The Secretary of the Senate and the Clerk of the 
     House of Representatives shall ensure that any computer or 
     other system that they may develop and maintain to receive 
     designations, statements, and reports in the forms required 
     or permitted under this paragraph is compatible with any such 
     system that the Commission may develop and maintain.''.

     SEC. 304. AUDITS.

       (a) Random Audits.--Section 311(b) of FECA (2 U.S.C. 
     438(b)) is amended--
       (1) by inserting ``(1)'' before ``The Commission''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Notwithstanding paragraph (1), the Commission may 
     after all elections are completed conduct random audits and 
     investigations to ensure voluntary compliance with this Act. 
     The subjects of such audits and investigations shall be 
     selected on the basis of criteria established by vote of at 
     least 4 members of the Commission to ensure impartiality in 
     the selection process. This paragraph does not apply to an 
     authorized committee of a candidate for President or Vice 
     President subject to audit under title VI or to an authorized 
     committee of an eligible Senate candidate or an eligible 
     House candidate subject to audit under section 522(a).''.
       (b) Extension of Period During Which Campaign Audits May Be 
     Begun.--Section 311(b) of FECA (2 U.S.C. 438(b)) is amended 
     by striking ``6 months'' and inserting ``12 months''.

     SEC. 305. LIMIT ON CONGRESSIONAL USE OF THE FRANKING 
                   PRIVILEGE.

       (a) In General.--Section 3210(a)(6)(A) of title 39, United 
     States Code, is amended to read as follows:
       ``(A) A Member of Congress shall not mail any mass mailing 
     as franked mail during a year in which there will be an 
     election for the seat held by the Member during the period 
     between January 1 of that year and the date of the general 
     election for that Office, unless the Member has made a public 
     announcement that the Member will not be a candidate for 
     reelection to that year or for election to any other Federal 
     office.''.
       (b) Application of Savings.--It is the intent of Congress 
     that any savings realized by virtue of the amendment made by 
     subsection (a) shall be designated to pay for the benefits of 
     section 104 (relating to reduced postage rates for eligible 
     Senate candidates) provided under section 104.

     SEC. 306. AUTHORITY TO SEEK INJUNCTION.

       Section 309(a) of FECA (2 U.S.C. 437g(a)) is amended--
       (1) by adding at the end the following new paragraph:
       ``(13)(A) If, at any time in a proceeding described in 
     paragraph (1), (2), (3), or (4), the Commission believes 
     that--
       ``(i) there is a substantial likelihood that a violation of 
     this Act is occurring or is about to occur;
       ``(ii) the failure to act expeditiously will result in 
     irreparable harm to a party affected by the potential 
     violation;
       ``(iii) expeditious action will not cause undue harm or 
     prejudice to the interests of others; and
       ``(iv) the public interest would be best served by the 
     issuance of an injunction,

     the Commission may initiate a civil action for a temporary 
     restraining order or a temporary injunction pending the 
     outcome of the proceedings described in paragraphs (1), (2), 
     (3), and (4).
       ``(B) An action under subparagraph (A) shall be brought in 
     the United States district court for the district in which 
     the defendant resides, transacts business, or may be found, 
     or in which the violation is occurring, has occurred, or is 
     about to occur.'';
       (2) in paragraph (7), by striking ``(5) or (6)'' and 
     inserting ``(5), (6), or (13)''; and
       (3) in paragraph (11), by striking ``(6)'' and inserting 
     ``(6) or (13)''.

     SEC. 307. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR 
                   MORE.

       Section 304(b)(2)(A) is amended by inserting ``, including 
     the name and address of each person who makes contributions 
     aggregating at least $50 but not more than $200 during the 
     calendar year'' after ``political committees''.
             TITLE IV--CONSTITUTIONALITY AND EFFECTIVE DATE

     SEC. 401. SEVERABILITY.

       If any provision of this Act, an amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this Act, the amendments made by this Act, and 
     the application of the provisions of such to any person or 
     circumstance shall not be affected thereby.

     SEC. 402. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.

       (a) Direct Appeal to Supreme Court.--An appeal may be taken 
     directly to the Supreme Court of the United States from any 
     interlocutory order or final judgment, decree, or order 
     issued by any court ruling on the constitutionality of any 
     provision of this Act or amendment made by this Act.
       (b) Acceptance and Expedition.--The Supreme Court shall, if 
     it has not previously ruled on the question addressed in the 
     ruling below, accept jurisdiction over, advance on the 
     docket, and expedite the appeal to the greatest extent 
     possible.

     SEC. 403. EFFECTIVE DATE.

       Except as otherwise provided in this Act, the amendments 
     made by, and the provisions of, this Act shall take effect on 
     January 1, 1997.

     SEC. 404. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out this Act not later than 9 
     months after the effective date of this Act.

                          ____________________