[Congressional Record Volume 143, Number 5 (Wednesday, January 22, 1997)]
[Senate]
[Pages S656-S665]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     BIPARTISAN CAMPAIGN REFORM ACT

 Mr. FEINGOLD. Mr. President, yesterday I joined with the 
senior Senator from Arizona [Mr. McCain] and others in introducing S. 
25, the Bipartisan Campaign Reform Act. I ask that the text of the bill 
be printed in the Record.

                                 S. 25

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

[[Page S657]]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Bipartisan 
     Campaign Reform Act of 1997''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; 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 Senate candidates.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

                Subtitle A--Political Action Committees

Sec. 201. Ban on political action committee contributions to Federal 
              candidates.

   Subtitle B--Provisions Relating to Soft Money of Political Party 
                               Committees

Sec. 211. Soft money of political party committee.
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. Reporting requirements for certain independent expenditures.

                         TITLE III--ENFORCEMENT

Sec. 301. Filing of reports using computers and facsimile machines.
Sec. 302. Audits.
Sec. 303. Authority to seek injunction.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Increase in penalty for knowing and willful violations.
Sec. 306. Prohibition of contributions by individuals not qualified to 
              vote.
Sec. 307. Use of candidates' names.
Sec. 308. Prohibition of false representation to solicit contributions.
Sec. 309. Expedited procedures.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Use of contributed amounts for certain purposes.
Sec. 402. Campaign advertising.
Sec. 403. Limit on congressional use of the franking privilege.
Sec. 404. Party independent expenditures.
Sec. 405. Coordinated expenditures; independent expenditures.
Sec. 406. Express advocacy.

        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

Sec. 501. Severability.
Sec. 502. Review of constitutional issues.
Sec. 503. Effective date.
Sec. 504. Regulations.
         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

     SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

       (a) In General.--The Federal Election Campaign Act of 1971 
     is amended by adding at the end the following new title:
 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

     ``SEC. 501. DEFINITIONS.

       ``In this title:
       ``(1) Eligible senate candidate.--The term `eligible Senate 
     candidate' means a candidate who the Commission has certified 
     under section 505 as an eligible primary election Senate 
     candidate or as an eligible general election Senate 
     candidate.
       ``(2) General election expenditure limit.--The term 
     `general election expenditure limit', with respect to an 
     eligible Senate candidate, means the limit applicable to the 
     eligible Senate candidate under section 503(d).
       ``(3) Out-of-state resident contribution limit.--The term 
     `out-of-State resident contribution limit', with respect to 
     an eligible Senate candidate, means the limit applicable to 
     the candidate under section 502(e).
       ``(4) Personal funds expenditure limit.--The term `personal 
     funds expenditure limit' means the limit stated in section 
     503(a).
       ``(5) Primary election expenditure limit.--The term 
     `primary election expenditure limit', with respect to an 
     eligible Senate candidate, means the limit applicable to the 
     eligible Senate candidate under section 503(b).
       ``(6) Runoff election expenditure limit.--The term `runoff 
     election expenditure limit', with respect to an eligible 
     Senate candidate, means the limit applicable to the eligible 
     Senate candidate under section 503(c).

     ``SEC. 502. ELIGIBLE SENATE CANDIDATES.

       ``(a) In General.--A candidate is--
       ``(1) an eligible primary election Senate candidate if the 
     Commission certifies under section 505 that the candidate--
       ``(A) has met the primary election filing requirement of 
     subsection (b); and
       ``(B) has met the threshold contribution requirement of 
     subsection (d); and
       ``(2) an eligible general election Senate candidate if the 
     Commission certifies under section 505 that the candidate--
       ``(A) has met the general election filing requirement of 
     subsection (c); and
       ``(B) has been certified as an eligible primary election 
     Senate candidate.
       ``(b) Primary Election Filing Requirement.--
       ``(1) In general.--The requirement of this subsection is 
     met if the candidate files with the Commission a declaration 
     that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i)(I) will not exceed the personal funds expenditure 
     limit, primary election expenditure limit, runoff election 
     expenditure limit, or general election expenditure limit; and
       ``(II) will accept only amounts of contributions for the 
     primary election, any runoff election, and the general 
     election that do not exceed the primary election expenditure 
     limit, runoff election expenditure limit, and general 
     election expenditure limit (reduced by any amount transferred 
     to the current election cycle from a preceding election); and
       ``(ii) will not accept contributions for the primary 
     election, any runoff election, or the general election that 
     would cause the candidate to exceed the out-of-State resident 
     contribution limit; and
       ``(B) at least 1 other candidate has qualified for the same 
     primary election ballot under the law of the candidate's 
     State.
       ``(2) Deadline for filing primary election declaration.--
     The declaration under paragraph (1) shall be filed not later 
     than the date on which the candidate files with the 
     appropriate State officer as a candidate for the primary 
     election.
       ``(c) General Election Filing Requirement.--
       ``(1) In general.--The requirement of this subsection is 
     met if the candidate files with the Commission--
       ``(A) a declaration under penalty of perjury, with 
     supporting documentation as required by the Commission, 
     that--
       ``(i) the candidate and the candidate's authorized 
     committees--

       ``(I) did not exceed the personal funds expenditure limit, 
     primary election expenditure limit, or runoff election 
     expenditure limit;
       ``(II) did not accept amounts of contributions for the 
     primary election or any runoff election in excess of the 
     primary election expenditure limit or runoff election 
     expenditure limit (reduced by any amount transferred to the 
     current election cycle from a preceding election); and
       ``(III) did not accept contributions for the primary 
     election or any runoff election that caused the candidate to 
     exceed the out-of-State resident contribution limit;

       ``(ii) the candidate has met the threshold contribution 
     requirement of subsection (d), as demonstrated by documents 
     accompanying the declaration under subsection (b) or the 
     declaration under this subsection; and
       ``(iii) at least 1 other candidate has qualified for the 
     same general election ballot under the law of the candidate's 
     State; and
       ``(B) a declaration that candidate and the candidate's 
     authorized committees--
       ``(i) except as otherwise provided by this title, will not 
     make expenditures in excess of the personal funds expenditure 
     limit or general election expenditure limit; and
       ``(ii) except as otherwise provided by this title, will not 
     accept any contribution for the general election to the 
     extent that the contribution--

       ``(I) would cause the aggregate amount of contributions 
     accepted to exceed the amount of the general election 
     expenditure limit, reduced by any amounts transferred to the 
     current election cycle from a previous election and not taken 
     into account under subparagraph (A)(ii); or
       ``(II) would cause the candidate to exceed the out-of-State 
     resident contribution limit.

       ``(2) Deadline for filing general election declaration.--
     The declaration 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.
       ``(d) Threshold Contribution Requirement.--
       ``(1) In general.--The requirement of this subsection is 
     met--
       ``(A) 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--
       ``(i) 10 percent of the general election expenditure limit; 
     or
       ``(ii) $250,000; and
       ``(B) the candidate files with the Commission a statement 
     under penalty of perjury that the requirement of subparagraph 
     (A) has been met, with supporting materials demonstrating 
     that the requirement has been met.
       ``(2) Definitions.--In this subsection:
       ``(A) Allowable contribution.--
       ``(i) In general.--The term `allowable contribution' 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.
       ``(ii) Exclusions.--The term `allowable contribution' does 
     not include a contribution from--

[[Page S658]]

       ``(I) 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 (e); or
       ``(II) a source described in section 503(a)(2).

       ``(B) Applicable period.--The term `applicable period' 
     means--
       ``(i) the period beginning on January 1 of the calendar 
     year preceding the calendar year of a general election and 
     ending on the date on which the declaration under subsection 
     (b) is filed by the candidate; or
       ``(ii) in the case of a special election for the office of 
     United States Senator, the period beginning on the date on 
     which the vacancy in the office occurs and ending on the date 
     of the general election.
       ``(e) Out-of-State Resident Contribution Limit.--
       ``(1) Requirement.--
       ``(A) In general.--The requirement of this subsection is 
     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 503(d)(1)(B)(i) applies, the requirement of 
     this subsection is 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 
     503(a) shall be treated as contributions from individuals 
     residing outside the candidate's State.
       ``(3) Time for meeting requirement.--The aggregate amount 
     of contributions received by an eligible Senate candidate as 
     of the end of each reporting period under section 304 shall 
     meet the requirement of paragraph (1).
       ``(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 and the amount of 
     contributions made by each individual that, during the 
     calendar year in which the reporting period occurs, makes 
     contributions aggregating $20 or more.

     ``SEC. 503. EXPENDITURE LIMITS.

       ``(a) Personal Funds Expenditure Limit.--
       ``(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; 
     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) proceeds of indebtedness incurred by the candidate or 
     a member of the candidate's immediate family.
       ``(b) Primary Election Expenditure Limit.--The aggregate 
     amount of expenditures for a primary election by an eligible 
     primary election Senate candidate and the candidate's 
     authorized committees shall not exceed the lesser of--
       ``(1) 67 percent of the general election expenditure limit; 
     or
       ``(2) $2,750,000.
       ``(c) Runoff Election Expenditure Limit.--The aggregate 
     amount of expenditures for a runoff election by an eligible 
     primary election Senate candidate and the candidate's 
     authorized committees shall not exceed 20 percent of the 
     general election expenditure limit.
       ``(d) 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 general election 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).
       ``(e) Exceptions for Complying Candidates Running Against 
     Noncomplying Candidates.--
       ``(1) 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--
       ``(A) has received contributions; or
       ``(B) has made expenditures from a source described in 
     subsection (a);
     in an aggregate amount equal to 50 percent of the primary 
     election expenditure limit, runoff election expenditure 
     limit, or general election expenditure limit, the eligible 
     Senate candidate may accept contributions in excess of the 
     primary election expenditure limit, runoff election 
     expenditure limit, or general 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 
     paragraph (2) or (3).
       ``(2) 50 percent increase.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who has made 
     expenditures in an aggregate amount equal to 105 percent of 
     the primary election expenditure limit, runoff election 
     expenditure limit, or general election expenditure limit, the 
     primary election expenditure limit, runoff election 
     expenditure limit, or general election expenditure limit (as 
     the case may be of the eligible Senate candidate) shall be 
     increased by 50 percent.
       ``(3) 100 percent increase.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who has made 
     expenditures in an aggregate amount equal to 155 percent of 
     the primary election expenditure limit, runoff election 
     expenditure limit, or general election expenditure limit, the 
     primary election expenditure limit, runoff election 
     expenditure limit, or general election expenditure limit (as 
     the case may be of the eligible Senate candidate) shall be 
     increased by 100 percent.
       ``(f) Expenditures in Response to Independent 
     Expenditures.--If an eligible Senate candidate is notified by 
     the Commission under section 304(c)(4) that independent 
     expenditures in an aggregate amount of $10,000 or more have 
     been made in the same election in support of another 
     candidate or against the eligible Senate candidate, the 
     eligible Senate 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.
       ``(g) Indexing.--The amounts under subsections (b)(1) and 
     (d)(1) 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 1997.
       ``(h) Payment of Taxes.--The primary election expenditure 
     limit, runoff election expenditure limit, and general 
     election expenditure limit shall not apply to any expenditure 
     for Federal, State, or local taxes with respect to earnings 
     on contributions raised.
       ``(i) Notice of Failure To Comply With Requirements.--A 
     candidate who filed a declaration under section 502 and 
     subsequently acts in a manner that is inconsistent with any 
     of the statements made in the declaration shall, not later 
     than 24 hours after the first of the acts--
       ``(1) file with the Commission a notice describing those 
     acts; and
       ``(2) notify all other candidates for the same office by 
     sending a copy of the notice by certified mail, return 
     receipt requested.

     ``SEC. 504. BENEFITS FOR ELIGIBLE CANDIDATES.

       ``If an eligible Senate candidate has an opponent who has 
     qualified for the ballot and who has received contributions 
     (or expended funds from a source described in section 
     503(a)(2)) in an amount equal to 10 percent or more of the 
     applicable expenditure limit, the eligible Senate candidate 
     shall be entitled to--
       ``(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. 505. CERTIFICATION BY COMMISSION.

       ``(a) In General.--The Commission shall determine whether a 
     candidate has met the requirements of this title and, based 
     on the determination, issue a certification stating whether 
     the candidate is an eligible Senate candidate entitled to 
     receive benefits under this title.
       ``(b) Certification.--
       ``(1) Primary election.--Not later than 7 business days 
     after a candidate files a declaration under section 502(b), 
     the Commission shall determine whether the candidate meets 
     the eligibility requirements of section 502(b)(1) and, if so, 
     certify that the candidate is an eligible primary election 
     Senate candidate entitled to receive benefits under this 
     title.
       ``(2) General election.--Not later than 7 business days 
     after a candidate files a declaration under section 502(c), 
     the Commission shall determine whether the candidate meets 
     the eligibility requirement of section 502(c)(1), and, if so, 
     certify that the candidate is an eligible general election 
     Senate candidate entitled to receive benefits under this 
     title.
       ``(c) Revocation.--
       ``(1) In general.--The Commission shall revoke a 
     certification under subsection (a), based on information 
     submitted in such form

[[Page S659]]

     and manner as the Commission may require or on information 
     that comes to the Commission by other means, if the 
     Commission determines that a candidate--
       ``(A) violates any of the expenditure limits contained in 
     this title by making an aggregate amount of expenditures that 
     exceeds any applicable expenditure limit by 5 percent or 
     more;
       ``(B) uses a benefit made available to a candidate under 
     this title in a manner not provided for in this title; or
       ``(C) fails to continue to meet the requirement of this 
     title.
       ``(2) No further benefits.--A candidate whose certification 
     has been revoked shall be ineligible for any further benefits 
     made available under this title for the duration of the 
     election cycle.
       ``(d) 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 506 and to judicial 
     review.

     ``SEC. 506. MISUSE OF BENEFITS.

       ``(a) Misuse of Benefits.--If the Commission revokes the 
     certification of an eligible Senate candidate, the Commission 
     shall so notify the candidate, and the candidate shall pay to 
     the provider of any benefit received by the candidate under 
     this title an amount equal to the difference between the 
     amount the candidate paid for such benefit and the amount the 
     candidate would have paid for the benefit if the candidate 
     were not an eligible Senate candidate.
       ``(b) Civil Penalties.--
       ``(1) Low amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed a 
     limitation under this title by 2.5 percent or less shall pay 
     to the Commission an amount equal to the amount of the excess 
     expenditures.
       ``(2) Medium amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed a 
     limitation under this title by more than 2.5 percent and less 
     than 5 percent shall pay to the Commission an amount equal to 
     3 times the amount of the excess expenditures.
       ``(3) Large amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed a 
     limitation under this title by 5 percent or more shall pay to 
     the Commission an amount equal to 3 times the amount of the 
     excess expenditures plus a civil penalty to be imposed 
     pursuant to section 309.''.
       (b) Expenditures Made Before Effective Date.--An 
     expenditure shall not be counted as an expenditure for 
     purposes of the expenditure limits contained in the amendment 
     made by subsection (a) if the expenditure is made before the 
     date that is 60 days after the date of enactment of this Act.

     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 establish a procedure to exempt from the 
     requirements of this subsection--
       ``(A) licensees the signals of which are broadcast 
     substantially nationwide; and
       ``(B) licensees that establish that the requirements of 
     this subsection would impose a significant economic hardship 
     on the licensees.''; 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.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 60 days after the date 
     of enactment of this Act.

     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, and adjusting the 
     margins accordingly;
       (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) Senate candidates.--
       ``(A) Eligible senate candidates.--In the case of an 
     eligible Senate candidate (within the meaning of section 501 
     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) Noneligible senate candidates.--In the case of a 
     candidate for the United States Senate who is not an eligible 
     Senate candidate, paragraph (1)(A) shall not apply.''.
       (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 
     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 the date that is 60 days after the date 
     of enactment of this Act.

     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)--

[[Page S660]]

       (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 given in section 301 of the Federal Election Campaign 
     Act of 1971; and
       ``(E) the term `eligible Senate candidate' has the meaning 
     given in section 501 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 the date that is 60 days after the date 
     of enactment of this Act.

     SEC. 105. CONTRIBUTION LIMIT FOR ELIGIBLE SENATE CANDIDATES.

       Section 315(a)(1) of the Federal Election Campaign Act of 
     1971 (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 limit, primary 
     election expenditure limit, or runoff limit election 
     expenditure limit applicable to an eligible Senate candidate 
     has been increased under section 503(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 SENATE CANDIDATES.

       (a) Contributions by In-State Residents.--Section 304(b)(2) 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     434(b)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (J);
       (2) by striking the period at the end of subparagraph (K) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(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.''.
       (b) Reports by Senate Candidates.--Section 304 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as 
     amended by section 221) is amended by adding at the end the 
     following:
       ``(h) Senate Candidates.--
       ``(1) Expenditures of personal funds.--
       ``(A) In general.--A candidate for the Senate who during an 
     election cycle makes expenditures from sources described in 
     section 503(a)(2) in excess of the personal funds expenditure 
     limit under 503(a) shall report the expenditures to the 
     Commission within 48 hours after the expenditures have been 
     made.
       ``(B) Additional reports.--A candidate shall file an 
     additional report within 48 hours after the date on which the 
     candidate makes expenditures for the general election from 
     sources described in section 503(a)(2) that in the aggregate 
     exceed 25 percent of the general election expenditure limit.
       ``(2) Expenditures of personal funds by a senate candidate 
     who is not an eligible candidate.--
       ``(A) In general.--A primary election Senate candidate or 
     general election Senate candidate who is not certified as an 
     eligible candidate under section 505 and who has received 
     contributions or made expenditures from sources described in 
     section 503(a)(2) in an aggregate amount that exceeds 50 
     percent of the general election expenditure limit shall file 
     a report with the Commission within 48 hours after that 
     amount of contributions have been received or expenditures 
     have been made.
       ``(B) Additional reports.--A primary election Senate 
     candidate or general election Senate candidate shall file an 
     additional report within 48 hours after the candidate has 
     received contributions or made expenditures from sources 
     described in section 503(a)(2) in an aggregate amount that 
     exceeds 105 percent or 155 percent of the applicable 
     expenditure limits.
       ``(3) Notification.--Within 48 hours after a report is 
     filed under paragraph (1) or (2), the Commission shall notify 
     each eligible Senate candidate in the election of the filing.
       ``(4) Report and notification requirements within 20 days 
     of an election.--
       ``(A) Reports.--If any act which requires the filing of any 
     report under paragraphs (1) or (2) occurs after the 20th day, 
     but more than 24 hours before an election, the report shall 
     be filed by the candidate within 24 hours of the occurrence 
     of the act.
       ``(B) Notification.--For any such report filed under this 
     subsection, the Commission shall notify the appropriate 
     eligible Senate candidate within 24 hours after the filing of 
     such report.''.
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE
                Subtitle A--Political Action Committees

     SEC. 201. BAN ON POLITICAL ACTION COMMITTEE CONTRIBUTIONS TO 
                   FEDERAL CANDIDATES.

       (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. 324. BAN ON POLITICAL ACTION COMMITTEE CONTRIBUTIONS 
                   TO FEDERAL CANDIDATES.

       ``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).--Section 301(4) of the Federal Election 
     Campaign Act of 1971 (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).--Section 316(b)(2) of the Federal 
     Election Campaign Act of 1971 (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) Contributions to authorized committee.--Section 315(a) 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     441a(a)) is amended by adding at the end the following:
       ``(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) Designation of authorized committee.--Section 302(e)(3) 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 432) 
     is amended by striking paragraph (3) and inserting the 
     following:
       ``(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.--For purposes 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
     seq.), during any period beginning after the effective date 
     in which the limitation under section 324 (as added by 
     subsection (a)) is not in effect--
       (1) the amendments made by subsections (a), (b), and (c) 
     shall not be in effect; and
       (2)(A) it shall be unlawful for a candidate for election, 
     or nomination for election, to the Senate or an authorized 
     committee of a Senate candidate to accept a contribution from 
     a multicandidate political committee or an intermediary or 
     conduit (within the meaning of paragraph (8)), to the extent 
     that the making or accepting of the contribution would cause 
     the aggregate amount of contributions received by the 
     candidate and the candidate's authorized committees from 
     multicandidate political committees, intermediaries, and 
     conduits to exceed 20 percent of the primary election 
     expenditure limit, runoff election expenditure limit, or 
     general election expenditure limit (as those terms are 
     defined in section 501) that is applicable (or, if the 
     candidate were an eligible Senate candidate (as defined in 
     section 501), would be applicable) to the candidate, and a 
     candidate shall return to the contributor the excess of any 
     contributions received over the amount of contributions 
     allowed to be accepted under this subparagraph; and
       (B) it shall be unlawful for a political committee, 
     intermediary, or conduit to make a contribution to any 
     candidate or an authorized committee of a candidate that, in 
     the aggregate, exceeds the amount that an individual is 
     permitted, under section 315(a), to make directly to the 
     candidate and candidate's authorized committees.

[[Page S661]]

   Subtitle B--Provisions Relating to Soft Money of Political Party 
                               Committees

     SEC. 211. SOFT MONEY OF POLITICAL PARTY COMMITTEE.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) (as amended by section 201) is amended by 
     adding at the end the following:

     ``SEC. 325. SOFT MONEY OF PARTY COMMITTEES.

       ``(a) National Committees.--A national committee of a 
     political party (including a national congressional campaign 
     committee of a political party), an entity that is directly 
     or indirectly established, financed, maintained, or 
     controlled by a national committee or its agent, an entity 
     acting on behalf of a national committee, and an officer or 
     agent acting on behalf of any such committee 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, that are not subject 
     to the limitations, prohibitions, and reporting requirements 
     of this Act.
       ``(b) State, District, and Local Committees.--
       ``(1) In general.--Any amount that is expended or disbursed 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf 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 refers to 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 excluded from 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;
       ``(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 costs.--Any amount spent 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 paragraph (1) shall be made from 
     funds subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(c) Tax-exempt organizations.--A national, State, 
     district, or local committee of a political party (including 
     a national congressional campaign committee of a political 
     party, an entity that is directly or indirectly established, 
     financed, maintained, or controlled by any such national, 
     State, district, or local committee or its agent, an agent 
     acting on behalf of any such party committee, and an officer 
     or agent acting on behalf of any such party committee or 
     entity), shall not 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.--A candidate, individual holding Federal 
     office, or agent of a candidate or individual holding Federal 
     office shall not--
       ``(A) solicit, receive, transfer, or spend funds in 
     connection with an election for Federal office unless the 
     funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act;
       ``(B) solicit, receive, or transfer funds that are to be 
     expended in connection with any election 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; or
       ``(C) solicit, receive, or transfer any funds on behalf of 
     any person that are not subject to the limitations, 
     prohibitions, and reporting requirements of the Act if the 
     funds are for use in financing any campaign-related activity 
     or any communication that refers to a clearly identified 
     candidate 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 the 
     Federal Election Campaign Act of 1971 (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) Limits.--
       (1) In general.--Section 315(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by 
     striking paragraph (3) and inserting the following:
       ``(3) Overall limits.--
       ``(A) Individual limit.--No individual shall make 
     contributions during any calendar year that, in the 
     aggregate, exceed $30,000.
       ``(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.''.
       (c) Definitions.--Section 301 of the Federal Election 
     Campaign Act of 1970 (2 U.S.C. 431) is amended by adding at 
     the end the following:
       ``(20) The term `generic campaign activity' means a 
     campaign activity that promotes a political party and does 
     not refer to any particular Federal or non-Federal candidate.
       ``(21) The term `State Party Grassroots Fund' means a 
     separate segregated fund established and maintained by a 
     State committee of a political party solely for purposes of 
     making expenditures and other disbursements described in 
     section 326(d).''.
       (d) State Party Grassroots Funds.--Title III of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 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 subsection (d); 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 subsection (d) 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)(i); 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

[[Page S662]]

       ``(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.
       ``(d) Disbursements and Expenditures.--A State committee of 
     a political party may make disbursements and expenditures 
     from its State Party Grassroots Fund only for--
       ``(1) any generic campaign activity;
       ``(2) payments described in clauses (v), (x), and (xii) of 
     paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
     paragraph (9)(B) of section 301;
       ``(3) subject to the limitations of section 315(d), 
     payments described in clause (xii) of paragraph (8)(B), and 
     clause (ix) of paragraph (9)(B), of section 301 on behalf of 
     candidates other than for President and Vice President;
       ``(4) voter registration; and
       ``(5) development and maintenance of voter files during an 
     even-numbered calendar year.''.

     SEC. 213. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 241) is amended by adding at the end the following:
       ``(e) Political Committees.--
       ``(1) National and congressional political committees.--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.
       ``(2) Other political committees to which section 325 
     applies.--A political committee (not described in paragraph 
     (1)) to which section 325(b)(1) applies shall report all 
     receipts and disbursements made for activities described in 
     section 325(b) (1) and (2)(iii).
       ``(3) Other political committees.--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.
       ``(4) Itemization.--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 
     paragraphs (3)(A), (5), and (6) of subsection (b).
       ``(5) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods required for political committees under subsection 
     (a).''.
       (b) Building Fund Exception to the Definition of 
     Contribution.--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xiv) as clauses 
     (viii) through (xiii), respectively.
       (c) Reports by State Committees.--Section 304 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as 
     amended by subsection (a)) is amended by adding at the end 
     the following:
       ``(f) 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 the 
     Federal Election Campaign Act of 1971 (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 the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
     is amended 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 213) 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 316(b)(2)(A) that 
     refers to any candidate for Federal office, any political 
     party, or any Federal election; and
       ``(B) any activity described in subparagraph (B) or (C) of 
     section 316(b)(2).
       ``(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 the Federal Election Campaign Act of 
     1971 (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 delivers contributions made by other persons, 
     and that is any of the following persons:

       ``(I) A political committee (other than the authorized 
     campaign committee of the candidate receiving the funds) or 
     an officer, employee or agent of a political committee.
       ``(II) A corporation, labor organization, or partnership or 
     an officer, employee, or agent of a corporation labor 
     organization, or partnership, acting on behalf of the 
     corporation, labor organization, or partnership.
       ``(III) 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 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.

       ``(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 an officer, employee, or agent of a 
     corporation, labor organization, or partnership from 
     soliciting, collecting, or delivering a contribution to a 
     candidate, agent of

[[Page S663]]

     the candidate, or the candidate's authorized committee if the 
     officer, employee, or agent does so by use of the personal 
     resources of the officer, employee, or agent and is not 
     acting on behalf of the corporation, labor organization, or 
     partnership.''.
                  Subtitle E--Independent Expenditures

     SEC. 241. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304(c) of the Federal Election Campaign Act 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:
       ``(d) Time for Reporting Certain Expenditures.--
       ``(1) Expenditures aggregating $1,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes independent expenditures aggregating 
     $1,000 or more after the 20th day, but more than 24 hours, 
     before an election shall file a report describing the 
     expenditures within 24 hours after that amount of independent 
     expenditures has been made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person filing the report shall 
     file an additional report each time that independent 
     expenditures aggregating an additional $1,000 are made with 
     respect to the same election as that to which the initial 
     report relates.
       ``(2) Expenditures aggregating $10,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes independent expenditures aggregating 
     $10,000 or more at any time up to and including the 20th day 
     before an election shall file a report describing the 
     expenditures within 48 hours after that amount of independent 
     expenditures has been made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person filing the report shall 
     file an additional report each time that independent 
     expenditures aggregating an additional $10,000 are made with 
     respect to the same election as that to which the initial 
     report relates.
       ``(3) Place of filing; contents; transmittal.--
       ``(A) Place of filing; contents.--A report under this 
     subsection--
       ``(i) shall be filed with the Commission; and
       ``(ii) shall contain the information required by subsection 
     (b)(6)(B)(iii), including the name of each candidate whom an 
     expenditure is intended to support or oppose.
       ``(B) Transmittal to candidates.--In the case of an 
     election for United States Senator, not later than 2 business 
     days after receipt of a report under this subsection, the 
     Commission shall transmit a copy of the report to each 
     eligible candidate seeking nomination for election to, or 
     election to, the office in question.
       ``(4) Obligation to make expenditure.--For purposes of this 
     subsection, an expenditure shall be treated as being made on 
     the making of any payment or the taking of any action to 
     incur an obligation for payment.
       ``(5) Determinations by the commission.--
       ``(A) In general.--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 Federal 
     election that in the aggregate exceed the applicable amounts 
     under paragraph (1) or (2).
       ``(B) Notification.--In the case of independent 
     expenditures made in connection with an election in which an 
     eligible Senate candidate is on the ballot, the Commission 
     shall notify each candidate in the election of the making of 
     the determination within 2 business days after making the 
     determination.
       ``(C) Time to comply with request for determination.--A 
     determination made at the request of a candidate shall be 
     made within 2 business days after the date of the request.
       ``(6) Notification of an allowable increase in independent 
     expenditure limit.--When independent expenditures totaling in 
     the aggregate $10,000 have been made in the same election in 
     support of an opposing candidate or against an eligible 
     Senate candidate, the Commission shall, within 2 business 
     days, notify the eligible Senate candidate that the eligible 
     Senate candidate is entitled under section 503(e) to an 
     increase in the applicable expenditure limit in an amount 
     equal to the amount of the independent expenditures.''.
                         TITLE III--ENFORCEMENT

     SEC. 301. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       Section 302(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(a)) is amended by striking paragraph (11) and 
     inserting at the end the following:
       ``(11)(A) The Commission may prescribe regulations under 
     which persons required to file designations, statements, and 
     reports under this Act--
       ``(i) are required to maintain and file a designation, 
     statement, or report 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 a designation, statement, or 
     report in that manner if not required to do so under 
     regulations prescribed under clause (i).
       ``(B) The Commission 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.''.

     SEC. 302. AUDITS.

       (a) Random Audits.--Section 311(b) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 438(b)) is amended--
       (1) by inserting ``(1)'' before ``The Commission''; and
       (2) by adding at the end the following:
       ``(2) Random audits.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     Commission may conduct random audits and investigations to 
     ensure voluntary compliance with this Act.
       ``(B) Selection of subjects.--The aggregate amount of 
     contributions received by an eligible Senate candidate as of 
     the end of each reporting period under section 304 shall meet 
     the requirement of paragraph (1).
       ``(C) Limitation.--The Commission shall not conduct an 
     audit or investigation of a candidate's authorized committee 
     under paragraph (1) until the candidate is no longer a 
     candidate for the office sought by the candidate in an 
     election cycle.
       ``(D) Applicability.--This paragraph does not apply to an 
     authorized committee of a candidate for President or Vice 
     President subject to audit under section 9007 or 9038 of the 
     Internal Revenue Code of 1986.''.
       (b) Extension of Period During Which Campaign Audits May Be 
     Begun.--Section 311(b) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 438(b)) is amended by striking ``6 months'' 
     and inserting ``12 months''.

     SEC. 303. AUTHORITY TO SEEK INJUNCTION.

       Section 309(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) is amended--
       (1) by adding at the end the following:
       ``(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 preliminary 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. 304. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR 
                   MORE.

       Section 304(b)(3)(A) of the Federal Election Campaign Act 
     at 1971 (2 U.S.C. 434(b)(3)(A) is amended--
       (1) by striking ``$200'' and inserting ``$50''; and
       (2) by striking the semicolon and inserting ``, except that 
     in the case of a person who makes contributions aggregating 
     at least $50 but not more than $200 during the calendar year, 
     the identification need include only the name and address of 
     the person''.

     SEC. 305. INCREASE IN PENALTY FOR KNOWING AND WILLFUL 
                   VIOLATIONS.

       Section 309(a)(5)(B) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 437g(a)(5)(B)) is amended by striking ``the 
     greater of $10,000 or an amount equal to 200 percent'' and 
     inserting ``the greater of $15,000 or an amount equal to 300 
     percent''.

     SEC. 306. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS NOT 
                   QUALIFIED TO VOTE.

       (a) Prohibition.--Section 319 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441e) is amended--
       (1) in the heading by adding ``AND INDIVIDUALS NOT 
     QUALIFIED TO REGISTER TO VOTE'' at the end; and
       (2) in subsection (a)--
       (A) by striking ``(a) It shall'' and inserting the 
     following:
       ``(a) Prohibitions.--
       ``(1) Foreign nationals.--It shall''; and
       (B) by adding at the end the following:
       ``(2) Individuals not qualified to vote.--It shall be 
     unlawful for an individual who is not qualified to register 
     to vote in a Federal election to make a contribution, or to 
     promise expressly or impliedly to make a contribution, in 
     connection with a Federal election; or for any person to 
     solicit, accept, or receive a contribution in connection with 
     a Federal election from an individual who is not qualified to 
     register to vote in a Federal election.''.
       (b) Inclusion in Definition of Identification.--Section 
     301(13) of the Federal Election

[[Page S664]]

     Campaign Act of 1971 (2 U.S.C. 431(13)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``and'' the first place it appears; and
       (B) by inserting ``, and an affirmation that the individual 
     is an individual who is not prohibited by section 319 from 
     making a contribution'' after ``employer''; and
       (2) in subparagraph (B) by inserting ``and an affirmation 
     that the person is a person that is not prohibited by section 
     319 from making a contribution'' after ``such person''.

     SEC. 307. USE OF CANDIDATES' NAMES.

       Section 302(e) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(e)) is amended by striking paragraph (4) and 
     inserting the following:
       ``(4)(A) The name of each authorized committee shall 
     include the name of the candidate who authorized the 
     committee under paragraph (1).
       ``(B) A political committee that is not an authorized 
     committee shall not--
       ``(i) include the name of any candidate in its name, or
       ``(ii) except in the case of a national, State, or local 
     party committee, use the name of any candidate in any 
     activity on behalf of such committee in such a context as to 
     suggest that the committee is an authorized committee of the 
     candidate or that the use of the candidate's name has been 
     authorized by the candidate.''.

     SEC. 308. PROHIBITION OF FALSE REPRESENTATION TO SOLICIT 
                   CONTRIBUTIONS.

       Section 322 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441h) is amended--
       (1) by inserting after ``Sec. 322.'' the following: 
     ``(a)''; and
       (2) by adding at the end the following:
       ``(b) No person shall solicit contributions by falsely 
     representing himself as a candidate or as a representative of 
     a candidate, a political committee, or a political party.''.

     SEC. 309. EXPEDITED PROCEDURES.

       Section 309(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) (as amended by section 303) is amended by 
     adding at the end the following new paragraph:
       ``(14)(A) If the complaint in a proceeding was filed within 
     60 days immediately preceding a general election, the 
     Commission may take action described in this subparagraph.
       ``(B) If the Commission determines, on the basis of facts 
     alleged in the complaint and other facts available to the 
     Commission, that there is clear and convincing evidence that 
     a violation of this Act has occurred, is occurring, or is 
     about to occur and it appears that the requirements for 
     relief stated in paragraph (13)(A) (ii), (iii), and (iv) are 
     met, the Commission may--
       ``(i) order expedited proceedings, shortening the time 
     periods for proceedings under paragraphs (1), (2), (3), and 
     (4) as necessary to allow the matter to be resolved in 
     sufficient time before the election to avoid harm or 
     prejudice to the interests of the parties; or
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     immediately seek relief under paragraph (13)(A).
       ``(C) If the Commission determines, on the basis of facts 
     alleged in the complaint and other facts available to the 
     Commission, that the complaint is clearly without merit, the 
     Commission may--
       ``(i) order expedited proceedings, shortening the time 
     periods for proceedings under paragraphs (1), (2), (3), and 
     (4) as necessary to allow the matter to be resolved in 
     sufficient time before the election to avoid harm or 
     prejudice to the interests of the parties; or
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     summarily dismiss the complaint.''.
                        TITLE IV--MISCELLANEOUS

     SEC. 401. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) is amended by striking section 313 and 
     inserting the following:

     ``SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

       ``Amounts received by a candidate as contributions, and any 
     other amounts received by an individual as support for his or 
     her activities as a holder of Federal office, may be used by 
     such candidate or individual for expenditures in connection 
     with his or her campaign for Federal office, for any ordinary 
     and necessary expenses incurred in connection with his or her 
     duties as a holder of Federal office, for contributions to 
     any organization described in section 170(c) of title 26, or 
     for transfers to any national, State or local committee of 
     any political party. No such amounts may be converted by any 
     person to any personal use. For the purposes of this section, 
     such amounts are converted to personal use if they are used 
     to fulfill any commitment, obligation or expense of any 
     person that would exist irrespective of the candidate's 
     campaign or individual's responsibilities as a Federal 
     officeholder, including but not limited to, 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; 
     and dues, fees or contributions to a health club or 
     recreational facility.''.

     SEC. 402. CAMPAIGN ADVERTISING.

       Section 318 of the Federal Election Campaign Act of 1971 (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:
       ``(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. 403. 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. 404. PARTY INDEPENDENT EXPENDITURES.

       Section 315(d) of the Federal Election Campaign Act of 1997 
     (2 U.S.C. 441a(d)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``coordinated'' after ``make''; and
       (B) by striking ``(2) and (3)'' and inserting ``(2), (3), 
     and (4)''; and
       (2) by adding at the end the following:
       ``(4) Before a committee of a political party may make 
     coordinated expenditures in connection with a general 
     election campaign for Federal office in excess of $5,000 
     pursuant to this subsection, the committee shall file with 
     the Commission a certification, signed by the treasurer, that 
     the committee has not and will not make any independent 
     expenditures in connection with that campaign for Federal 
     office. A party committee that determines to make coordinated 
     expenditures pursuant to this subsection shall not make any 
     transfers of funds in the same election cycle to, or receive 
     any transfer of funds in the same election cycle from, any 
     other party committee that determines to make independent 
     expenditures in connection with the same campaign for Federal 
     office.
       ``(5)(A) A committee of a political party shall be 
     considered to be in coordination with a candidate of the 
     party if the committee--
       ``(i) makes a payment for a communication or anything of 
     value in coordination with the candidate, as described in 
     section 301(8)(A)(iii);
       ``(ii) makes a coordinated expenditure under section 315(d) 
     on behalf of the candidate;
       ``(iii) participates in joint fundraising with the 
     candidate or in any way solicits or receives a contribution 
     on behalf of the candidate;
       ``(iv) communicates with the candidate or an agent of the 
     candidate (including a pollster, media consultant, vendor, 
     advisor, or

[[Page S665]]

     staff member), acting on behalf of the candidate, about 
     advertising, message, allocation of resources, fundraising, 
     or other campaign matters related to the candidate's 
     campaign, including campaign operations, staffing, tactics or 
     strategy; or
       ``(v) provides in-kind services, polling data, or anything 
     of value to the candidate.
       ``(6) For purposes of paragraphs (4) and (5), all political 
     committees established and maintained by a national political 
     party (including all congressional campaign committees) and 
     all political committees established by State political 
     parties shall be considered to be a single political 
     committee.
       ``(7) For purposes of paragraph (5), any coordination 
     between a committee of a political party and a candidate of 
     the party after the candidate has filed a statement of 
     candidacy constitutes coordination for the period beginning 
     with the filing of the statement of candidacy and ending at 
     the end of the election cycle.''.

     SEC. 405. COORDINATED EXPENDITURES; INDEPENDENT EXPENDITURES.

       (a) Definition of Coordinated Expenditure.--
       (1) Section 301(8).--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (i);
       (ii) by striking the period at the end of clause (ii) and 
     inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(iii) a payment made for a communication or anything of 
     value that is for the purpose of influencing an election for 
     Federal office and that is a payment made in coordination 
     with a candidate.''; and
       (B) by adding at the end the following:
       ``(C) For the purposes of subparagraph (A)(iii), the term 
     `payment made in coordination with a candidate' includes--
       ``(i) a payment made by a person in cooperation, 
     consultation, or concert with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, or an 
     agent acting on behalf of a candidate or authorized 
     committee;
       ``(ii) a payment made by a person for the dissemination, 
     distribution, or republication, in whole or in part, of any 
     broadcast or any written, graphic, or other form of campaign 
     material prepared by a candidate, a candidate's authorized 
     committee, or an agent of a candidate or authorized committee 
     (not including a communication described in paragraph 
     (9)(B)(i) or a communication that expressly advocates the 
     candidate's defeat);
       ``(iii) a payment made based on information about a 
     candidate's plans, projects, or needs provided to the person 
     making the payment by the candidate or the candidate's agent 
     who provides the information with a view toward having the 
     payment made;
       ``(iv) a payment made by a person if, in the same election 
     cycle in which the payment is made, the person making the 
     payment is serving or has served as a member, employee, 
     fundraiser, or agent of the candidate's authorized committee 
     in an executive or policymaking position;
       ``(v) a payment made by a person if the person making the 
     payment has served in any formal policy or advisory position 
     with the candidate's campaign or has participated in 
     strategic or policymaking discussions with the candidate's 
     campaign relating to the candidate's pursuit of nomination 
     for election, or election, to Federal office, in the same 
     election cycle as the election cycle in which the payment is 
     made;
       ``(vi) a payment made by a person if, in the same election 
     cycle, the person making the payment retains the professional 
     services of any individual or person who has provided or is 
     providing campaign-related services in the same election 
     cycle to a candidate in connection with the candidate's 
     pursuit of nomination for election, or election, to Federal 
     office, including services relating to the candidate's 
     decision to seek Federal office, and the professional is 
     retained to work on activities relating to that candidate's 
     campaign.
       ``(D) For purposes of subparagraph (C)(vi), the term 
     `professional services' includes services in support of a 
     candidate's pursuit of nomination for election, or election, 
     to Federal office such as polling, media advice, direct mail, 
     fundraising, or campaign research.
       (2) Section 315(a)(7).--Section 315(a)(7) (2 U.S.C. 
     441a(a)(7)) is amended by striking paragraph (B), and 
     inserting the following:
       ``(B) Payments made in coordination with a candidate, as 
     described in section 301(8)(A)(iii), shall be considered to 
     be contributions to such candidate, and in the case of 
     limitations on expenditures, shall be treated as expenditures 
     for purposes of this paragraph.
       (b) Meaning of Contribution or Expenditure For the Purposes 
     of Section 316.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure, as those terms are defined in 
     section 301, and also includes''.
       (c) Definition of Independent Expenditure.--Section 301 of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 431) is 
     amended by striking paragraph (17) 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 consultation with, or without coordination with a 
     candidate or a candidate's authorized committee or agent 
     (within the meaning of section 301(8)(A)(iii)).
       ``(B) Exclusion.--The term `independent expenditure' does 
     not include an expenditure or payment made in coordination 
     with a candidate (within the meaning of section 
     301(8)(A)(iii)).''.

     SEC. 406. EXPRESS ADVOCACY.

       (a) Definition of Expenditure.--Section 301(9)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is 
     amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(iii) any payment during an election year (or in a 
     nonelection year, during the period beginning on the date on 
     which a vacancy for Federal office occurs and ending on the 
     date of the special election for that office) for a 
     communication that is made through any broadcast medium, 
     newspaper, magazine, billboard, direct mail, or similar type 
     of general public communication or political advertising by a 
     national, State, district, or local committee of a political 
     party, including a congressional campaign committee of a 
     party, that refers to a clearly identified candidate; and
       ``(iv) any payment for a communication that contains 
     express advocacy.''.
       (b) Definition of Express Advocacy.--Section 301 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431) (as 
     amended by section 212(d)) is amended by adding at the end 
     the following:
       ``(20) Express advocacy.--
       ``(A) In general.--The term `express advocacy' includes--
       ``(i) a communication that conveys a message that advocates 
     the election or defeat of a clearly identified candidate for 
     Federal office by using an expression such as `vote for,' 
     `elect,' `support,' `vote against,' `defeat,' `reject,' 
     `(name of candidate) for Congress', `vote pro-life,' or `vote 
     pro-choice', accompanied by a listing or picture of a clearly 
     identified candidate described as `pro-life' or `pro-choice,' 
     `reject the incumbent', or a similar expression;
       ``(ii) a communication that is made through a broadcast 
     medium, newspaper, magazine, billboard, direct mail, or 
     similar type of general public communication or political 
     advertising that involves aggregate disbursements of $10,000 
     or more, that refers to a clearly identified candidate, that 
     a reasonable person would understand as advocating the 
     election or defeat of the candidate, and that is made within 
     30 days before the date of a primary election (and is 
     targeted to the State in which the primary is occurring), or 
     60 days before a general election; or
       ``(iii) a communication that is made through a broadcast 
     medium, newspaper, magazine, billboard, direct mail, or 
     similar type of general public communication or political 
     advertising that involves aggregate disbursements of $10,000 
     or more, that refers to a clearly identified candidate, that 
     a reasonable person would understand as advocating the 
     election or defeat of a candidate, that is made before the 
     date that is 30 days before the date of a primary election, 
     or 60 days before the date of a general election, and that is 
     made for the purpose of advocating the election or defeat of 
     the candidate, as shown by 1 or more factors such as a 
     statement or action by the person making the communication, 
     the targeting or placement of the communication, or the use 
     by the person making the communication of polling, 
     demographic, or other similar data relating to the 
     candidate's campaign or election.
       ``(B) Exclusion.--The term `express advocacy' does not 
     include the publication or distribution of a communication 
     that is limited solely to providing information about the 
     voting record of elected officials on legislative matters and 
     that a reasonable person would not understand as advocating 
     the election or defeat of a particular candidate.''.
        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

     SEC. 501. SEVERABILITY.

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

     SEC. 502. REVIEW OF CONSTITUTIONAL ISSUES.

       An appeal may be taken directly to the Supreme Court of the 
     United States from any 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.

     SEC. 503. EFFECTIVE DATE.

       Except as otherwise provided in this Act, this Act and the 
     amendments made by this Act take effect on the date that is 
     60 days after the date of enactment of this Act.

     SEC. 504. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out this Act and the amendments 
     made by this Act not later than 270 days after the effective 
     date of this Act.
     
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