[Congressional Record Volume 143, Number 9 (Wednesday, January 29, 1997)]
[Senate]
[Pages S806-S814]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BUMPERS (for himself, Mrs. Murray, and Mr. Wellstone):
  S. 229. A bill to provide for a voluntary system of public financing 
of Federal elections, and for other purposes; to the Committee on 
Finance.


             THE PUBLIC CONFIDENCE IN CAMPAIGNS ACT OF 1997

  Mr. BUMPERS. Mr. President, I come to the floor today to introduce 
the Public Confidence in Campaigns Act of 1997 for Senator Murray and 
myself. We chose that title because the purpose of the bill is to 
establish public finance of political campaigns in this country.
  The McCain-Feingold bill, of course, is the topic right now. That is 
the one that the press talks about. That is the one that everybody in 
the Senate is looking at. I am for the McCain-Feingold bill--and I have 
the utmost respect for the authors of the bill--but I can tell you that 
the McCain-Feingold bill is only a small step in the right direction, 
if the people of this body are really interested in reversing the 
pervasive cynicism about the political process that is abroad in our 
country.
  Everybody knows that the money game is out of control in politics. 
Contributions during the last 2 years--that is, soft money and hard 
money combined--was up 73 percent from 1993 and 1994. You think about 
it. A 73-percent increase. I have no reason to believe that the 
increase will not be another 50 to 100 percent in the 2-year cycle 
prior to the year 2000. Why wouldn't the American people be cynical? 
The average Senate race today costs $4 million. I have never spent more 
than $1.5 million, not because of choice but because I am a lousy 
fundraiser. I never had it. But the average Senate race is $4 million. 
In California, $20 to $25 million is now typical for each of the 
candidates.
  More and more millionaires are running for Congress because it is 
obvious that money dictates the outcome. Ninety percent of the people 
who are elected to Congress spent more money than their opponents. That 
means if you are a millionaire, or if you have the ability to raise 
more money than your opponent, you have a 90-percent chance of being 
elected. That is what the statistics show. The Congress is supposed to 
be a microcosm of America. There are at least 25 to 35 millionaires in 
the U.S. Senate. There are hardly 25 percent of the American people who 
are millionaires.
  In 1995 and 1996, 400 corporations, labor unions, and individuals--
400--gave the two major parties $100,000 or more in soft money. I 
repeat: Soft and hard money to the political parties is up 73 percent 
in 2 years. Even the stock market has not gone up that fast. And 
rightly or wrongly the cynicism of the American people about our 
political system is reflected in the small number of people in this 
country who contribute to campaigns. Why? Because ``Joe Lunch Bucket'' 
out there has this nagging suspicion that $100,000 contributions, 
$500,000 contributions, or even $5,000 individual contributions, are 
completely out of his league. He knows that his $10 or $15 is going 
nowhere. That is the one of the reasons he does not bother to vote. He 
has no confidence in his own ability to participate and make a 
difference, the very foundation of a democracy. And ``Joe Lunch 
Bucket'' knows that people who give $100,000 are not giving money out 
of patriotism and altruism.
  For the whole process of Federal election in the last 2 years the 
parties and the individual candidates spent $2 billion. That is a 
staggering sum of money. Campaign spending 20 years ago when we started 
reforming the system was a mere fraction of $2 billion.
  This morning, yesterday morning, every morning you pick up the 
Washington Post and the New York Times, and you'll see a story in there 
about the influence of money. It isn't just soft money given by 
Indonesians or aliens. The Times last week had a story showing that 
Members who vote right on particular issues get five times as much 
money later on from the people who benefit from that right vote than 
they had gotten in the past.
  As long as we finance campaigns the way we are financing them now, 
the Post and the Times will continue to have a field day, and the 
Members of Congress will be like gladiators in the arena for the 
amusement and enjoyment of people who like to watch the battle. I am 
not being critical of the press for reporting these stories. All I am 
saying is that democracy is threatened by cynicism.
  The formula for voluntary limits in the McCain-Feingold bill is a 
step in the right direction. It's the same formula we have in our bill: 
$400,000 plus 30 cents for the first 4 million eligible voters in your 
State; 25 cents for every eligible voter over 4 million with a minimum 
of $950,000 and maximum of $5.5 million. My State of Arkansas would get 
the minimum, $950,000, in a Senate race, and a maximum of $5.5 million 
would apply in California. And the figure of $5.5 million as a maximum 
is not an inducement for a Senate candidate in California to accept 
public funding and comply with that kind of a maximum when they are 
spending $20 to $25 million each in California. But let us admit it: 
Even $5.5 million is an obscene amount of money. That is what you get 
if you voluntarily limit the amount of money you are going to spend. If 
you agree, if you are from Arkansas, to accept $950,000, in the general 
election you will get full funding from the U.S. Treasury. And I will 
come back to where the money comes from in just a moment.
  Mr. President, there is a fundamental question being asked in this 
country. And, if it isn't being asked, it ought to be; that is, how 
long can a democracy survive when the laws we pass and the people we 
elect depend on how much special interest money is put into a campaign? 
And consider the fact that the candidate with the most money wins 90 
percent of the time. That speaks volumes. When you consider the fact 
that if you vote right on a bill that benefits somebody, and you get 
five times as much money from that somebody as you got in the past, 
that speaks volumes. Of course, our democracy is threatened when we 
continue this money game.
  There is a study by the Library of Congress--and anybody who is 
interested in it, if they will drop me a line or call me, I will send 
them a copy of it--of campaign finance in 19 nations. And other than 
the United States only 1 of the 19 nations, Malaysia, finances 
campaigns with private contributions. We are the only Western nation 
that finances campaigns with private contributions in this way.

  Mr. President, we may not pass this bill, but until a public finance 
bill

[[Page S807]]

passes, the media will continue to have a field day, and you can expect 
a story, not because you did anything illegal or unethical, but you can 
depend on a story anytime you vote on a major piece of legislation if 
anybody who benefited from that gave you money in the last election in 
any significant amount. And the people will harbor those same 
suspicions.
  Why would the people of this body and the House of Representatives 
not want to get rid of such a system? They are the ones who are most 
vulnerable, to say nothing of the destruction of our democracy. Even 
under the McCain-Feingold bill, which I will support, you still are 
going to have special interest money, and it is not going to eliminate 
the basic problem, which is cynicism about what that money buys.
  So, Mr. President, it is an interesting thing that the people of this 
body--and I have talked to a number trying to recruit cosponsors, 
Republicans and Democrats--almost without exception say, ``I know 
public financing is where we are going, but not yet. Later.''
  Why later? McCain-Feingold has gotten all the attention, and perhaps 
McCain-Feingold is the most we can hope for this year, but it is time 
to start the debate on the public finance legislation that everybody in 
this body knows is absolutely essential to our future. It is going to 
pass. I may not be here when it passes, but I can promise you it is 
going to pass.
  Everybody is playing the stock market today. The market has been on a 
roll, up about 30 percent in 1996. You cannot lose. Just put it on 
anything, they say. You cannot lose. I will tell you of a better 
investment than putting your money in the stock market, and that is to 
put your money into this Congressional Election Campaign Fund we are 
proposing and take special interest money out of the political process. 
You talk about a return on your investment. That will be the biggest 
return America ever got on every dollar it puts in.
  People in the coffee shops of America do not do as they used to. One 
time about 2 years ago, I was in my hometown in the coffee shop where I 
used to drink coffee in this little town of 1,500, 2,000 people, and 
the subject came up with some of my old coffee-drinking buddies about 
public financing. The first thing I heard was, ``I don't want my tax 
money going to politicians to finance campaigns.'' And I gave that 
friend of mine a lesson in 103-A civics and 103-A economics. No. 1, he 
has a civic duty to participate, which he does not do. He is not giving 
any of his private money, which is his right, and he does not want his 
tax money to be used, which is an abdication of his responsibility and 
an abdication of everything he believes about campaign finance because 
he is willing to let the rich people and wealthy organizations of the 
country give the money and yet it causes the very cynicism he 
exemplifies and that we are trying to remedy.
  Why would the people of this body say ``later'' to public finance? 
Admittedly, 10 years ago, only 27 percent of the people believed public 
financing of campaigns was a good idea. But it has worked beautifully 
since 1976 for the Presidential campaign, and it will work for us. Why 
would it not? And why would Senators in 1997 be afraid to vote for 
public financing of campaigns when 68 percent of the people in a Mark 
Mellman Poll this fall said they favor the law in Maine, the only State 
in the Nation which has passed a full public funding campaign bill. And 
68 percent of the people, when you explain the Maine bill, say, ``I 
favor it.'' And 65 percent of the people in this country in a Gallup 
Poll said they favored banning all private contributions and believed 
in 100 percent public financing of campaigns.
  Let me describe the details of the bill very quickly and then I will 
introduce the bill.
  First of all, it establishes a Congressional Election Campaign Fund. 
And here is the way it works. When you file your tax returns today, 
there is a provision there which says that if you would like to direct 
$3 of your tax payment to the Presidential campaign fund, check here. 
It does not cost you a thing. You think about that. It does not cost 
you a thing; it is deducted from your taxes, and yet people are 
declining all the time to check the $3 contribution box even though 
their taxes are reduced by $3. It is really Federal funds. And yet we 
have to constantly prop people up and tell them it is their patriotic 
duty to contribute to that.

  I found it very healthy in the last campaign to know that Senator 
Dole and President Clinton were using money in equal amounts. They were 
not out asking for private contributions. Each one of them said, ``I 
will participate,'' and each one of them received about $60 million, 
and they got along just fine.
  Under our bill, you can give $10, if you want, $3 to the Presidential 
campaign, $7 to the congressional campaign. As I said, that $10 
contribution will pay you bigger dividends by far than any investment 
you ever made in your life. You will not have to worry why somebody 
voted for or against a bill; at least you will know they did not do it 
because somebody gave them money in the last campaign or has promised 
to give them money in a future campaign. And, in addition to the $10, 
we allow Americans to add on to their tax payment a contribution to the 
Congressional Election Campaign Fund. Wealthy people--and there are 
about 5 times as many millionaires right now as there were 10 years 
ago--would be allowed to give up to $5,000 to this campaign fund just 
because they are patriots. Up to $100 of this add-on is tax deductible. 
And if their spouses join in it, they have a $200 tax deduction. It is 
not much, a small incentive. But wouldn't it be wonderful if all the 
people worth $1 million, $5 million, $10 million in this country, or 
even those of ordinary means, would contribute $5,000 to that fund just 
because they love the country, believe in democracy and want to see it 
thrive?

  We also have a provision that, if the fund runs dry, Congress will 
appropriate the deficiency. If Congress refuses to appropriate the 
deficiency, then everybody will be reduced on a pro rata basis.
  Let me repeat. You do not qualify for this money unless you agree to 
limit your spending according to the formula that is set out in the 
bill. How do you get to the general election for full funding, since we 
have primaries before the general? Well, we will participate in that, 
too. And here is the way we do that. You can spend 60 percent of what 
you can spend in a general.
  Back to my home State of Arkansas, let us assume we are eligible for 
$1 million. We can spend 60 percent of that in the primary, or 
$600,000, and, of the $600,000, you must raise 50 percent of that, or 
$300,000. So, to that extent, you still have to go out with your tin 
cup and raise $300,000. Contributions are still limited to $1,000, just 
as they are under existing law. But before you can even qualify for 
primary money, you have to raise $25,000 in $100 contributions from 
within your State. That is not harsh. Anybody in the State of Arkansas, 
or any other State, that cannot get 250 people to give $100 does not 
have any business running. He is not credible. But, once you raise 
$25,000, then you become eligible for 50 percent Federal funding in the 
primary.
  We eliminate totally soft money. Soft money is what the investigation 
of contributions to the DNC is all about. When you consider the fact 
that soft money contributions and hard money contributions to the 
parties is up 73 percent--get rid of it. Who needs this investigation 
we are getting ready to launch here in the Congress? You think about 
all the people's business that we need to be conducting, and what are 
we doing? Holding an investigation about all the Indonesian money and 
alien money. Not only do we eliminate soft money, we say that no 
illegal alien, or even a legal alien, can contribute, unless they are 
eligible to vote. Nobody--nobody can contribute in these campaigns 
unless they are eligible to vote. I think that is about as good a test 
as you can find.
  Let us assume, in the next election, I say, ``OK, I am going to limit 
my spending to $1 million.'' That is the limit under my bill for this 
State. And I agree I will limit my spending to $1 million. My opponent, 
who happens to be worth $100 million says, ``You have to be kidding. I 
am planning to buy this election. I have $100 million to do it with.'' 
Then, for every dollar he spends above $1 million, we will match up to 
100 percent, which would be $2 million.
  If you are running against a man or a woman who is willing to spend 
$10

[[Page S808]]

million of his or her own money, I think you could win. I can tell you 
a story of a Governor's race in Arkansas in 1970. There was a young, 
good looking, dynamic man running for Governor down there who spent 
$300,000 dollars and beat somebody who spent $3.5 million.
  You can shame people. You can shame people for spending too much 
money of their own. Sometimes shame is not enough because, as I have 
already pointed out, 90 percent of the time the candidate who spends 
the most money wins. So maybe our bill is not perfect on that score, 
but it will exact a political price from those who seek to buy an 
election by outspending a candidate who accepts these limits.
  And, on independent expenditures, the bane of the Nation, these 
unnamed, unseen people who run television ads calling you every 
scurrilous name under the shining Sun, they don't mention the name of 
the guy running against you, they just tell the voters what a terrible 
guy you are--using whatever is a hot issue at the time, ``He voted to 
burn American flags''--they never mention the opponent. Under our bill, 
if you have an independent expenditure of $1,000 or more, you have to 
report it within 24 hours, and if you spend more than $10,000 on 
independent expenditures, we will match that for the poor guy who has 
volunteered to limit his spending. The only difference between our bill 
and McCain-Feingold on PAC's is that we allow a $2,000 PAC 
contribution, and McCain-Feingold only allows $1,000. The current level 
is $5,000.
  Let me elaborate just a moment on that. I am not a person who thinks 
PAC's are inherently evil. I think any time a group of people who get 
together and contribute to a fund because they would like to have some 
influence, rather than just giving $10, $20, $50, $100 apiece, they 
ought to be allowed to do that.
  As I have already said, we only allow people who can vote in this 
country in Federal elections to contribute. And, if you agree to accept 
Federal funding, $10,000 is the maximum amount of your own money you 
can spend. And our bill takes effect in all elections after December 
31, 1998.
  Mr. President, while my bill is not perfect, we have been working on 
it for 4 months. We have met through staff conferences. I have talked 
to other Senators. I can tell you, the time has come to deal with 
public finance. I guess the best way to close--I think about a movie, 
one of my three or four all-time favorite movies, ``To Kill A 
Mockingbird.'' Gregory Peck was a country lawyer, and I guess I relate 
to it because I was a country lawyer. You remember, he was defending a 
black man charged with rape, who was totally innocent, in a small 
Southern town. The case was charged with racism.
  He made the most eloquent speech to the jury in his closing argument, 
and he finished by saying, ``For God's sake, do your duty.'' I cannot 
think of a better way to end this statement to my colleagues. The time 
has come to do our duty to salvage, to save our democracy.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional material be printed in the Record.
  There being no objection, the material was ordered to printed in the 
Record, as follows:

                                 S. 229

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

     SECTION 1. SHORT TITLE; AMENDMENT OF ELECTION ACT; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Public 
     Confidence in Campaigns Act of 1997''.
       (b) Amendment of Election Act.--As used in this Act, the 
     term ``FECA'' means the Federal Election Campaign Act of 1971 
     (2 U.S.C. 431 et seq.).
       (c) Table of Contents.--

Sec. 1. Short title; amendment of Election Act; table of contents.

              TITLE I--REFORM OF SENATE CAMPAIGN FINANCING

  Subtitle A--Voluntary Congressional Senate Campaign Financing System

Sec. 101. Senate election campaign financing.
Sec. 102. Reporting requirements.
Sec. 103. Reporting requirements for certain independent expenditures.

     Subtitle B--Reduction in Limit on PAC Contributions to Senate 
                               Candidates

Sec. 111. Reduction in limit on PAC contributions to Senate candidates.

                   TITLE II--PUBLIC FINANCING SYSTEM

Sec. 201. Increase in current voluntary checkoff system.
Sec. 202. Voluntary contributions to Congressional Election Campaign 
              Fund.

   TITLE III--PROVISIONS RELATING TO SOFT MONEY OF POLITICAL PARTIES

Sec. 301. Soft money of political parties.
Sec. 302. State Party Grassroots Funds.
Sec. 303. Reporting requirements.

  TITLE IV--PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS INELIGIBLE TO 
                                  VOTE

Sec. 401. Prohibition of contributions by individuals ineligible to 
              vote.
              TITLE I--REFORM OF SENATE CAMPAIGN FINANCING
  Subtitle A--Voluntary Congressional Senate Campaign Financing System

     SEC. 101. SENATE ELECTION CAMPAIGN FINANCING.

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

            ``TITLE V--ELECTION SPENDING LIMITS AND BENEFITS

                ``Subtitle A--Senate Election Campaigns

``Sec. 501. Expenditure limitations.
``Sec. 502. Contribution limitations.
``Sec. 503. Eligibility to receive benefits.
``Sec. 504. Benefits eligible candidate entitled to receive.

                ``Subtitle B--Administrative Provisions

``Sec. 521. Certifications by Commission.
``Sec. 522. Examination and audits; repayments and civil penalties.
``Sec. 523. Judicial review.
``Sec. 524. Reports to Congress; certifications; regulations.
``Sec. 525. Closed captioning requirement for television commercials of 
              eligible candidates.

           ``Subtitle C--Congressional Election Campaign Fund

``Sec. 531. Establishment and operation of the Fund.
``Sec. 532. Designation of receipts to the Fund.
                ``Subtitle A--Senate Election Campaigns

     ``SEC. 501. EXPENDITURE LIMITATIONS.

       ``(a) In General.--An eligible Senate candidate may not 
     make expenditures with respect to any election aggregating 
     more than the limit applicable to the election under 
     subsection (b).
       ``(b) Applicable Limits.--For purposes of subsection (a), 
     except as otherwise provided in this subtitle--
       ``(1) General election expenditure limit.--
       ``(A) In general.--The limit for a general election shall 
     be equal to the lesser of--
       ``(i) $5,500,000; or
       ``(ii) the greater of--

       ``(I) $950,000; or
       ``(II) $400,000, plus an amount equal to the sum of 30 
     cents multiplied by the voting age population not in excess 
     of 4,000,000, and 25 cents multiplied by the voting age 
     population in excess of 4,000,000.

       ``(B) Special rule where only 1 transmitter.--In the case 
     of an eligible Senate candidate in a State which has no more 
     than 1 transmitter for a commercial Very High Frequency (VHF) 
     television station licensed to operate in that State, 
     subclause (II) of paragraph (1)(B)(ii) shall be applied by 
     substituting `80 cents' for `30 cents' and `70 cents' for `25 
     cents'.
       ``(2) Primary election expenditure limit.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the limit for a primary election is an amount equal to 60 
     percent of the general election expenditure limit under 
     paragraph (1).
       ``(B) Certain primary elections treated as general 
     elections.--If a primary election may result in the election 
     of a person to a Federal office, the limit for the election 
     is the general election expenditure limit under paragraph 
     (1).
       ``(3) Runoff election expenditure limit.--The limit for a 
     runoff election is an amount equal to 30 percent of the 
     general election expenditure limit under paragraph (1).
       ``(c) Payment of Taxes.--The limitations under subsection 
     (b) shall not apply to any expenditure for Federal, State, or 
     local taxes with respect to earnings on contributions raised.
       ``(d) Exceptions for Complying Candidates Running Against 
     Noncomplying Candidates.--
       ``(1) Excessive contributions to, or personal expenditures 
     by, opposing candidate.--
       ``(A) 10 percent excess.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who--
       ``(i) has received contributions; or
       ``(ii) has made expenditures from a source described in 
     section 502(a);

     in an aggregate amount equal to 110 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate candidate, the general election expenditure 
     limit, primary election expenditure limit, or runoff election 
     expenditure limit (as the case may be) applicable to the 
     eligible Senate candidate shall be increased by 20 percent.

[[Page S809]]

       ``(B) 50 percent excess.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who--
       ``(i) has received contributions; or
       ``(ii) has made expenditures from a source described in 
     section 502(a);

     in an aggregate amount equal to 150 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate candidate, the general election expenditure 
     limit, primary election expenditure limit, or runoff election 
     expenditure limit (as the case may be) applicable to the 
     eligible Senate candidate (without regard to subparagraph 
     (A)) shall be increased by 50 percent.
       ``(C) 100 percent excess.--If any opponent of an eligible 
     Senate candidate is a noneligible candidate who--
       ``(i) has received contributions; or
       ``(ii) has made expenditures from a source described in 
     section 502(a);

     in an aggregate amount equal to 200 percent of the general 
     election expenditure limit, primary election expenditure 
     limit, or runoff election expenditure limit applicable to the 
     eligible Senate candidate, the general election expenditure 
     limit, primary election expenditure limit, or runoff election 
     expenditure limit (as the case may be) applicable to the 
     eligible Senate candidate (without regard to subparagraph (A) 
     or (B)) shall be increased by 100 percent.
       ``(2) Revocation of eligibility of opponent.--If the status 
     of eligible Senate candidate of any opponent of an eligible 
     Senate candidate is revoked under this title, the general 
     election expenditure limit applicable to the eligible Senate 
     candidate shall be increased by 20 percent.
       ``(e) Expenditures in Response to Independent 
     Expenditures.--If an eligible Senate candidate is notified by 
     the Commission under section 304(c)(4) that independent 
     expenditures totaling at least $1,000 or more have been made 
     in the same election in favor of another candidate or against 
     the eligible candidate, the eligible candidate shall be 
     permitted to spend an amount equal to the amount of the 
     independent expenditures, and any such expenditures shall not 
     be subject to any limit applicable under this title to the 
     eligible candidate for the election.

     ``SEC. 502. CONTRIBUTION LIMITATIONS.

       ``(a) Personal Contributions.--
       ``(1) In general.--An eligible Senate candidate may not, 
     with respect to an election cycle, make contributions or 
     loans to his or her own campaign from personal funds totaling 
     more than $10,000.
       ``(2) Aggregation.--For purposes of paragraph (1), any 
     contribution or loan to a candidate's campaign by a member of 
     the candidate's immediate family shall be treated as made by 
     the candidate.
       ``(b) Aggregate Contributions.--
       ``(1) General election.--An eligible Senate candidate may 
     not solicit or receive contributions with respect to a 
     general election.
       ``(2) Primary and runoff elections.--An eligible Senate 
     candidate may, subject to any limits, prohibitions, or other 
     requirements of this Act, receive contributions with respect 
     to a primary or runoff election equal to an amount not 
     greater than 50 percent of the applicable limit for the 
     election under section 501 (determined without regard to 
     subsection (d) or (e) thereof).

     ``SEC. 503. ELIGIBILITY TO RECEIVE BENEFITS.

       ``(a) In General.--For purposes of this subtitle, a 
     candidate is an eligible Senate candidate if the candidate--
       ``(1) meets the filing requirements of subsection (b);
       ``(2) meets, and continues to meet, the expenditure and 
     contribution limits of sections 501 and 502; and
       ``(3) in the case of a primary election, meets the 
     threshold contribution requirements of subsection (c).
       ``(b) Filing Requirements.--
       ``(1) Primary.--The requirements of this subsection are met 
     with respect to a primary election if, not later than the 
     date the candidate files as a candidate for the election with 
     the appropriate State election official (or, if earlier, not 
     later than 30 days before the election), the candidate files 
     with the Secretary of the Senate a declaration that--
       ``(A) the candidate will meet the expenditure and 
     contribution limits of this subtitle;
       ``(B) the candidate will not accept any contributions in 
     violation of section 315; and
       ``(C) the candidate will meet requirements similar to the 
     requirements of clauses (ii), (iii), (iv), (v), (vi), and 
     (vii) of paragraph (2)(A).
       ``(2) General election.--
       ``(A) In general.--The requirements of this subsection are 
     met with respect to a general election if the candidate 
     certifies, under penalty of perjury, to the Secretary of the 
     Senate that--
       ``(i) the candidate has met the expenditure and 
     contribution limits of this subtitle with respect to any 
     primary or runoff election and will meet such limits for the 
     general election;
       ``(ii) at least one other candidate has qualified for the 
     same general election ballot under the law of the State 
     involved;
       ``(iii) the candidate will deposit all payments received 
     under this subtitle in an account insured by the Federal 
     Deposit Insurance Corporation from which funds may be 
     withdrawn by check or similar means of payment to third 
     parties;
       ``(iv) the candidate will furnish campaign records, 
     evidence of contributions, and other appropriate information 
     to the Commission;
       ``(v) the candidate will cooperate in the case of any audit 
     and examination by the Commission under section 522 and will 
     pay any amounts required to be paid under that section;
       ``(vi) the candidate will meet the closed captioning 
     requirements of section 525; and
       ``(vii) the candidate intends to make use of the benefits 
     provided under section 504.
       ``(B) Time for filing.--The certification under 
     subparagraph (A) shall be filed not later than 7 days after 
     the earlier of--
       ``(i) the date the candidate qualifies for the general 
     election ballot under State law; or
       ``(ii) if, under State law, a primary or runoff election to 
     qualify for the general election ballot occurs after 
     September 1, the date the candidate wins the primary or 
     runoff election.
       ``(c) Threshold Contribution Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate and the candidate's authorized 
     committees have received allowable contributions during the 
     applicable period in an amount not less than $25,000.
       ``(2) Only $100 contributions taken into account.--
     Allowable contributions of an individual shall not be taken 
     into account under paragraph (1) to the extent such 
     contributions exceed $100.
       ``(3) Definitions.--In this subsection:
       ``(A) Allowable contribution.--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.
       ``(B) Applicable period.--The term `applicable period' 
     means the period beginning on January 1 of the calendar year 
     preceding the calendar year of the general election involved 
     and ending on the date on which the certification under 
     subsection (b)(1) is filed by the candidate.

     ``SEC. 504. BENEFITS ELIGIBLE CANDIDATE ENTITLED TO RECEIVE.

       ``(a) In General.--An eligible Senate candidate shall be 
     entitled to payments from the Congressional Election Campaign 
     Fund in an amount equal to--
       ``(1) in the case of a general election, an amount equal to 
     the general election expenditure limit applicable to the 
     candidate under section 501, and
       ``(2) in the case of a primary or runoff election, an 
     amount equal to the sum of--
       ``(A) the amount of contributions received by the candidate 
     with respect to the election not in excess of the limitation 
     under section 502(b), plus
       ``(B) the amount of any increases in the applicable limit 
     for such election by reason of subsections (d) and (e) of 
     section 501 (relating to opponents exceeding limits and 
     independent expenditures).
       ``(b) Use of Payments.--Payments received by a candidate 
     under subsection (a) shall be used to defray expenditures 
     incurred with respect to the applicable election period for 
     the candidate.
                ``Subtitle B--Administrative Provisions

     ``SEC. 521. CERTIFICATIONS BY COMMISSION.

       ``(a) General Eligibility.--The Commission shall determine 
     whether a candidate is eligible to receive benefits under 
     subtitle A. The initial determination shall be based on the 
     candidate's filings under this title. Any subsequent 
     determination shall be based on relevant additional 
     information submitted in such form and manner as the 
     Commission may require.
       ``(b) Certification of Benefits.--
       ``(1) In general.--Not later than 5 business days after an 
     eligible Senate candidate files a request with the Secretary 
     of the Senate to receive benefits under section 504, the 
     Commission shall certify eligibility for, and the amount of, 
     such benefits.
       ``(2) Requests.--Any request for payments under paragraph 
     (1) shall contain--
       ``(A) such information and be made in accordance with such 
     procedures as the Commission may provide by regulation; and
       ``(B) a verification signed by the candidate and the 
     treasurer of the principal campaign committee of such 
     candidate stating that the information furnished in support 
     of the request, to the best of their knowledge, is correct 
     and fully satisfies the requirement of this title.
       ``(3) Partial certification.--If the Commission determines 
     that any portion of a request does not meet the requirement 
     for certification, the Commission shall withhold the 
     certification for that portion only and inform the candidate 
     as to how the request may be corrected.
       ``(4) Certification withheld.--The Commission may withhold 
     certification if it determines that a candidate who is 
     otherwise eligible has engaged in a pattern of activity 
     indicating that the candidate's filings under this title 
     cannot be relied upon.

     ``SEC. 522. EXAMINATION AND AUDITS; REPAYMENTS AND CIVIL 
                   PENALTIES.

       ``(a) Examinations and Audits.--
       ``(1) General elections.--After each general election, the 
     Commission shall conduct an examination and audit of the 
     campaign accounts of 5 percent of the eligible Senate 
     candidates, as designated by the Commission through the use 
     of an appropriate statistical method of random selection, to 
     determine whether such candidates have complied with the 
     conditions of eligibility and other requirements of this 
     title. The Commission shall conduct an examination and audit 
     of the accounts of all candidates for election to an office 
     where any eligible candidate for the office is selected for 
     examination and audit.
       ``(2) Special election.--After each special election 
     involving an eligible candidate, the

[[Page S810]]

     Commission shall conduct an examination and audit of the 
     campaign accounts of all candidates in the election to 
     determine whether the candidates have complied with the 
     conditions of eligibility and other requirements of this Act.
       ``(3) Affirmative vote.--The Commission may conduct an 
     examination and audit of the campaign accounts of any 
     eligible Senate candidate in a general election if the 
     Commission determines that there exists reason to believe 
     whether such candidate may have violated any provision of 
     this title.
       ``(b) Repayments.--
       ``(1) In general.--If the Commission determines that any 
     amount of a payment to a candidate under this title was in 
     excess of the aggregate payments to which such candidate was 
     entitled, or was not used as provided for in this title, the 
     Commission shall so notify such candidate, and such candidate 
     shall pay the amount of such payment.
       ``(2) Excess expenditures of candidates.--If the Commission 
     determines that any eligible candidate who has received 
     benefits under this title has made expenditures in excess of 
     any limit under subtitle A, the Commission shall notify the 
     candidate and the candidate shall pay the amount of the 
     excess.
       ``(c) Civil Penalties.--
       ``(1) Excess expenditures.--
       ``(A) Low amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed a 
     limitation under subtitle A by 2.5 percent or less shall pay 
     to the Commission an amount equal to the amount of the excess 
     expenditures.
       ``(B) Medium amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed a 
     limitation under subtitle A by more than 2.5 percent and less 
     than 5 percent shall pay to the Commission an amount equal to 
     three times the amount of the excess expenditures.
       ``(C) Large amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed a 
     limitation under subtitle A by 5 percent or more shall pay to 
     the Commission an amount equal to three times the amount of 
     the excess expenditures plus, if the Commission determines 
     such excess expenditures were willful, a civil penalty in an 
     amount determined by the Commission.
       ``(2) Misused funds of candidates.--If the Commission 
     determines that an eligible Senate candidate used any amount 
     received under this title in a manner not provided for in 
     this title, the Commission may assess a civil penalty against 
     such candidate in an amount not greater than 200 percent of 
     the amount involved.
       ``(d) Unexpended Funds.--Any amount received by an eligible 
     Senate candidate under this title and not expended on or 
     before the date of the general election shall be repaid 
     within 30 days of the election, except that a reasonable 
     amount may be retained for a period not exceeding 120 days 
     after the date of the general election for the liquidation of 
     all obligations to pay expenditures for the general election 
     incurred during the general election period. At the end of 
     such 120-day period, any unexpended funds received under this 
     title shall be promptly repaid.
       ``(e) Limit on Period for Notification.--No notification 
     shall be made by the Commission under this section with 
     respect to an election more than 3 years after the date of 
     such election.

     ``SEC. 523. JUDICIAL REVIEW.

       ``(a) Judicial Review.--Any agency action by the Commission 
     made under the provisions of this title shall be subject to 
     review by the United States Court of Appeals for the District 
     of Columbia Circuit upon petition filed in such court within 
     30 days after the agency action by the Commission for which 
     review is sought. It shall be the duty of the Court of 
     Appeals, ahead of all matters not filed under this title, to 
     advance on the docket and expeditiously take action on all 
     petitions filed pursuant to this title.
       ``(b) Application of Title 5.--The provisions of chapter 7 
     of title 5, United States Code, shall apply to judicial 
     review of any agency action by the Commission.
       ``(c) Agency Action.--For purposes of this section, the 
     term `agency action' has the meaning given such term by 
     section 551(13) of title 5, United States Code.

     ``SEC. 524. REPORTS TO CONGRESS; CERTIFICATIONS; REGULATIONS.

       ``(a) Reports.--The Commission shall, as soon as 
     practicable after each election, submit a full report to the 
     Senate and House of Representatives setting forth--
       ``(1) the expenditures (shown in such detail as the 
     Commission determines appropriate) made by each eligible 
     candidate and the authorized committees of such candidate;
       ``(2) the amounts of benefits certified by the Commission 
     as available to each eligible candidate under this title; and
       ``(3) the amount of repayments, if any, required under 
     section 522, and the reasons for each repayment required.
       ``(b) Determinations by Commission.--Subject to sections 
     522 and 523, all determinations (including certifications 
     under section 521) made by the Commission under this title 
     shall be final and conclusive.
       ``(c) Rules and Regulations.--The Commission is authorized 
     to prescribe such rules and regulations, in accordance with 
     the provisions of subsection (d), to conduct such audits, 
     examinations and investigations, and to require the keeping 
     and submission of such books, records, and information, as it 
     deems necessary to carry out the functions and duties imposed 
     on it by this title.
       ``(d) Report of Proposed Regulations.--The Commission shall 
     submit to the House of Representatives and to the Senate a 
     report containing a detailed explanation and justification of 
     each rule and regulation of the Commission under this title. 
     No such rule, regulation, or form may take effect until a 
     period of 30 calendar days has elapsed after the report is 
     received. As used in this subsection, the terms `rule' and 
     `regulation' mean a provision or series of interrelated 
     provisions stating a single, separable rule of law.

     ``SEC. 525. CLOSED CAPTIONING REQUIREMENT FOR TELEVISION 
                   COMMERCIALS OF ELIGIBLE CANDIDATES.

       ``No eligible Senate candidate may receive amounts under 
     subtitle A unless such candidate has certified that any 
     television commercial prepared or distributed by the 
     candidate will be prepared in a manner that contains, is 
     accompanied by, or otherwise readily permits closed 
     captioning of the oral content of the commercial to be 
     broadcast by way of line 21 of the vertical blanking 
     interval, or by way of comparable successor technologies.
           ``Subtitle C--Congressional Election Campaign Fund

     ``SEC. 531. ESTABLISHMENT AND OPERATION OF THE FUND.

       ``(a) In General.--There is hereby established on the books 
     of the Treasury of the United States a special fund to be 
     known as the Congressional Election Campaign Fund (hereafter 
     in this title referred to as the `Fund'). The amounts 
     designated for the Fund shall remain available without fiscal 
     year limitation for purposes of providing benefits under this 
     title and making expenditures for the administration of the 
     Fund. The Secretary shall maintain such accounts in the Fund 
     as may be required by this title or which the Secretary 
     determines to be necessary to carry out the provisions of 
     this title.
       ``(b) Payments Upon Certification.--Upon receipt of a 
     certification from the Commission under section 521, except 
     as provided in subsection (c), the Secretary shall issue 
     within 48 hours to an eligible candidate the amount of 
     payments certified by the Commission to the eligible 
     candidate out of the Fund.
       ``(c) Reductions in Payments if Funds Insufficient.--
       ``(1) In general.--If, at the time of a certification by 
     the Commission under section 521 for payment to an eligible 
     candidate, the Secretary determines that the monies in the 
     Fund are not, or may not be, sufficient to satisfy the full 
     entitlement of all eligible candidates, the Secretary shall 
     withhold from the amount of such payment such amount as the 
     Secretary determines to be necessary to assure that each 
     eligible candidate will receive the same pro rata share of 
     such candidate's full entitlement.
       ``(2) Payment upon finding of sufficient monies.--Amounts 
     withheld under paragraph (1) shall be paid during the same 
     election cycle when the Secretary determines that there are 
     sufficient monies in the Fund to pay all, or a portion 
     thereof, to all eligible candidates from whom amounts have 
     been withheld, except that if only a portion is to be paid, 
     it shall be paid in such manner that each eligible candidate 
     receives an equal pro rata share of such portion.
       ``(3) Estimates.--
       ``(A) In general.--Not later than March 31 of any calendar 
     year in which there is a regularly scheduled general 
     election, the Secretary, after consultation with the 
     Commission, shall make an estimate of--
       ``(i) the amount of monies in the Fund which will be 
     available to make payments required by this title in the 
     succeeding calendar year, taking into account the amounts 
     estimated to be transferred to the Fund during the calendar 
     year of the election; and
       ``(ii) the amount of expenditures which will be required 
     under this title in such calendar year.
       ``(B) Notice of estimated reduction.--If the Secretary 
     determines that there will be insufficient monies in the Fund 
     to make the expenditures required by this title for any 
     calendar year, the Secretary shall notify each candidate on 
     April 30 of such calendar year (or, if later, the date on 
     which an individual becomes a candidate) of the amount which 
     the Secretary estimates will be the pro rata reduction in 
     each eligible candidate's payments under this subsection. 
     Such notice shall be by registered mail.
       ``(d) Notification.--The Secretary shall notify the 
     Commission and each eligible candidate by registered mail of 
     any reduction of any payment by reason of subsection (c).

     ``SEC. 532. DESIGNATION OF RECEIPTS TO THE FUND.

       ``(a) Appropriation.--There are hereby appropriated to the 
     Fund the following amounts:
       ``(1) Designated amounts.--Amounts designated to the Fund 
     under sections 6096(a)(2) and 6097 of the Internal Revenue 
     Code of 1986.
       ``(2) Payments and penalties.--Payments and civil penalties 
     received by the Commission under section 522.
       ``(b) Authorization of Appropriations.--These are 
     authorized to be appropriated for each fiscal year to the 
     Fund the excess (if any) of--
       ``(1) the aggregate payments required to be made from the 
     Fund under this title for the fiscal year, over
       ``(2) the sum of the balance in the Fund as of the close of 
     the preceding fiscal year plus

[[Page S811]]

     amounts paid into the Fund under subsection (a).''
       (b) Effective Date.--The amendments made by this section 
     shall apply to elections occurring after December 31, 1998.

     SEC. 102. REPORTING REQUIREMENTS.

       Title III of FECA is amended by adding after section 304 
     the following new sections:


             ``REPORTING REQUIREMENTS FOR SENATE CANDIDATES

       ``Sec. 304A. (a) Candidate Other Than Eligible Senate 
     Candidate.--(1) Each candidate for the office of United 
     States Senator who does not file a certification with the 
     Secretary of the Senate under section 503(b)(2) shall file 
     with the Secretary of the Senate a declaration as to whether 
     such candidate intends to make expenditures for any primary, 
     runoff, or general election in excess of the expenditure 
     limit applicable to an eligible Senate candidate under 
     section 501. Such declaration shall be filed at the time 
     provided in section 503(b)(2)(B).
       ``(2) Any candidate for the United States Senate who 
     qualifies for the ballot for a general election--
       ``(A) who is not an eligible Senate candidate under section 
     503; and
       ``(B) who either raises aggregate contributions, or makes 
     or obligates to make aggregate expenditures, for any primary, 
     runoff, or general election which exceed 75 percent of the 
     expenditure limit applicable to an eligible Senate candidate 
     under section 501,

     shall file a report with the Secretary of the Senate within 2 
     business days after such contributions have been raised or 
     such expenditures have been made or obligated to be made (or, 
     if later, within 2 business days after the date of 
     qualification for the general election ballot), setting forth 
     the candidate's total contributions and total expenditures 
     for such election as of such date. Thereafter, such candidate 
     shall file additional reports (until such contributions or 
     expenditures exceed 200 percent of such limit) with the 
     Secretary of the Senate within 2 business days after each 
     time additional contributions are raised, or expenditures are 
     made or are obligated to be made, which in the aggregate 
     exceed an amount equal to 10 percent of such limit and after 
     the total contributions or expenditures exceed 100, 120, 140, 
     160, 180, and 200 percent of such limit.
       ``(3) The Commission--
       ``(A) shall, within 2 business days of receipt of a 
     declaration or report under paragraph (1) or (2), notify each 
     eligible Senate candidate in the election involved about such 
     declaration or report; and
       ``(B) if an opposing candidate has raised aggregate 
     contributions, or made or has obligated to make aggregate 
     expenditures, in excess of the applicable election 
     expenditure limit under section 501, shall certify, pursuant 
     to the provisions of subsection (d), such eligibility for 
     payment of any amount to which such eligible Senate candidate 
     is entitled under section 504(a).
       ``(4) Notwithstanding the reporting requirements under this 
     subsection, the Commission may make its own determination 
     that a candidate in a general election who is not an eligible 
     Senate candidate has raised aggregate contributions, or made 
     or has obligated to make aggregate expenditures, in the 
     amounts which would require a report under paragraph (2). The 
     Commission shall, within 2 business days after making each 
     such determination, notify each eligible Senate candidate in 
     the election involved about such determination, and shall, 
     when such contributions or expenditures exceed the election 
     expenditure limit under section 501, certify (pursuant to the 
     provisions of subsection (d)) such candidate's eligibility 
     for payment of any amount under section 504(a).
       ``(b) Reports on Personal Funds.--(1) Any candidate for the 
     United States Senate who during the election cycle expends 
     more than the limitation under section 502 during the 
     election cycle from his personal funds, the funds of his 
     immediate family, and personal loans incurred by the 
     candidate and the candidate's immediate family shall file a 
     report with the Secretary of the Senate within 2 business 
     days after such expenditures have been made or loans 
     incurred.
       ``(2) The Commission within 2 business days after a report 
     has been filed under paragraph (1) shall notify each eligible 
     Senate candidate in the election involved about each such 
     report.
       ``(3) Notwithstanding the reporting requirements under this 
     subsection, the Commission may make its own determination 
     that a candidate for the United States Senate has made 
     expenditures in excess of the amount under paragraph (1). The 
     Commission within 2 business days after making such 
     determination shall notify each eligible Senate candidate in 
     the general election involved about each such determination.
       ``(c) Certifications.--Notwithstanding section 521(a), the 
     certification required by this section shall be made by the 
     Commission on the basis of reports filed in accordance with 
     the provisions of this Act, or on the basis of the 
     Commission's own investigation or determination.
       ``(d) Shorter Periods for Reports and Notices During 
     Election Week.--Any report, determination, or notice required 
     by reason of an event occurring during the 7-day period 
     ending with the general election shall be made within 24 
     hours (rather than 2 business days) of the event.
       ``(e) Copies of Reports and Public Inspection.--The 
     Secretary of the Senate shall transmit a copy of any report 
     or filing received under this section or under subtitle A of 
     title V as soon as possible (but no later than 4 working 
     hours of the Commission) after receipt of such report or 
     filing, and shall make such report or filing available for 
     public inspection and copying in the same manner as the 
     Commission under section 311(a)(4), and shall preserve such 
     reports and filings in the same manner as the Commission 
     under section 311(a)(5).
       ``(f) Definitions.--For purposes of this section, any term 
     used in this section which is used in title V shall have the 
     same meaning as when used in title V.''

     SEC. 103. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304(c) of FECA (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 (8); and
       (3) by inserting after paragraph (2), as amended by 
     paragraph (1), the following new paragraphs:
       ``(3)(A) Any person (including a political committee) 
     making, obligating to make, or intending to make independent 
     expenditures (including those described in subsection 
     (b)(6)(B)(iii)) with respect to a candidate in an election 
     aggregating $1,000 or more shall file a report within 24 
     hours after the date on which such person takes such action. 
     An additional report shall be filed each time the person 
     makes, obligates to make, or intends to make independent 
     expenditures aggregating $1,000 or more are made with respect 
     to the same candidate after the latest report filed under 
     this subparagraph.
       ``(B) A report under subparagraph (A) shall be filed with 
     the Clerk of the House of Representatives, the Secretary of 
     the Senate, or the Commission, whichever is applicable, and 
     the Secretary of State of the State involved, and shall 
     identify each candidate whom the expenditure is actually 
     intended to support or to oppose. The Clerk of the House of 
     Representatives and the Secretary of the Senate shall as soon 
     as possible (but not later than 4 working hours of the 
     Commission) after receipt of a report transmit it to the 
     Commission. Not later than 2 business days after the 
     Commission receives a report, the Commission shall transmit a 
     copy of the report to each candidate seeking nomination or 
     election to that office.
       ``(4) The Commission may, upon a request of a candidate or 
     on its own initiative, make its own determination that a 
     person has made, has incurred obligations to make, or intends 
     to make independent expenditures with respect to any 
     candidate in any election which in the aggregate exceed the 
     applicable amounts under paragraph (3). The Commission shall 
     notify each candidate in such election of such determination 
     within 2 business days after making it. Any determination 
     made at the request of a candidate shall be made within 48 
     hours of the request.
       ``(5) At the time at which an eligible Senate candidate is 
     notified under paragraph (3) or (4) with respect to 
     expenditures during a general election period, the Commission 
     shall certify eligibility to receive benefits under section 
     504.
       ``(6) The Clerk of the House of Representatives and the 
     Secretary of the Senate shall make any report received under 
     this subsection available for public inspection and copying 
     in the same manner as the Commission under section 311(a)(4), 
     and shall preserve such statements in the same manner as the 
     Commission under section 311(a)(5).
       ``(7)(A) A person that makes a reservation of broadcast 
     time to which section 315(a) of the Communications Act of 
     1947 (47 U.S.C. 315(a)) applies, the payment for which would 
     constitute an independent expenditure, shall at the time of 
     the reservation--
       ``(i) inform the broadcast licensee that payment for the 
     broadcast time will constitute an independent expenditure;
       ``(ii) inform the broadcast licensee of the names of all 
     candidates for the office to which the proposed broadcast 
     relates and state whether the message to be broadcast is 
     intended to be made in support of or in opposition to each 
     such candidate; and
       ``(iii) provide the broadcast licensee a copy of the report 
     described in paragraph (3).
       ``(B) For purposes of this paragraph, the term `broadcast' 
     includes any cablecast.''
     Subtitle B--Reduction in Limit on PAC Contributions to Senate 
                               Candidates

     SEC. 111. REDUCTION IN LIMIT ON PAC CONTRIBUTIONS TO SENATE 
                   CANDIDATES.

       Section 315(a)(2)(A) of FECA (2 U.S.C. 441a(a)(2)(A)) is 
     amended to read as follows:
       ``(A) to any candidate and the candidate's authorized 
     political committees with respect to--
       ``(i) any election for Federal office (other than United 
     States Senator) which, in the aggregate, exceed $5,000, or
       ``(ii) any election for the office of United States Senator 
     which, in the aggregate, exceed $2,000.''
                   TITLE II--PUBLIC FINANCING SYSTEM

     SEC. 201. INCREASE IN CURRENT VOLUNTARY CHECKOFF SYSTEM.

       (a) In General.--Section 6096(a) of the Internal Revenue 
     Code of 1986 (relating to designation by individuals) is 
     amended to read as follows:
       ``(a) In General.--Every individual (other than a 
     nonresident alien) whose income tax liability for the taxable 
     year is $10 or more may designate that $10 shall be paid over 
     to the Federal election campaign funds as follows:
       ``(1) $3 to the Presidential Election Campaign Fund in 
     accordance with the provisions of section 9006(a).

[[Page S812]]

       ``(2) $7 to the Congressional Election Campaign Fund in 
     accordance with the provisions of subtitle C of title V of 
     the Federal Election Campaign Act of 1971.
     In the case of a joint return of a husband and wife having an 
     income tax liability of $20 or more, each spouse may 
     designate that $10 shall be paid as provided in the preceding 
     sentence.''
       (b) Conforming Amendment.--Section 9006(a) is amended by 
     striking ``section 6096'' and inserting ``section 
     6096(a)(1)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.

     SEC. 202. VOLUNTARY CONTRIBUTIONS TO CONGRESSIONAL ELECTION 
                   CAMPAIGN FUND.

       (a) General Rule.--Part VIII of subchapter A of chapter 61 
     of the Internal Revenue Code of 1986 (relating to returns and 
     records) is amended by adding at the end the following:

    ``Subpart B--Designation of Additional Amounts to Congressional 
                         Election Campaign Fund

``Sec. 6097. Designation of additional amounts.

     ``SEC. 6097. DESIGNATION OF ADDITIONAL AMOUNTS.

       ``(a) General Rule.--Every individual (other than a 
     nonresident alien) who files an income tax return for any 
     taxable year may designate an additional amount which is not 
     less than $1 and not more than $5,000 to be paid over to the 
     Congressional Election Campaign Fund established under 
     subtitle C of title V of the Federal Election Campaign Act of 
     1971.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made for any taxable year only at the 
     time of filing the income tax return for the taxable year. 
     Such designation shall be made on the page bearing the 
     taxpayer's signature.
       ``(c) Treatment of Additional Amounts.--Any additional 
     amount designated under subsection (a) for any taxable year 
     shall, for all purposes of law, be treated as an additional 
     income tax imposed by chapter 1 for such taxable year.
       ``(d) Income Tax Return.--For purposes of this section, the 
     term `income tax return' means the return of the tax imposed 
     by chapter 1.''
       (b) Deductibility of Contributions.--
       (1) In general.--Part VII of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to additional 
     itemized deductions for individuals) is amended by 
     redesignating section 221 as section 222 and by inserting 
     after section 220 the following new section:

     ``SEC. 221. CONTRIBUTIONS TO CONGRESSIONAL ELECTION CAMPAIGN 
                   FUND.

       ``There shall be allowed as a deduction for any taxable 
     year an amount equal to the lesser of--
       ``(1) the amount designated on the income tax return for 
     the taxable year under section 6097(a), or
       ``(2) $100 ($200 in the case of a joint return).''
       (2) Above-the-line deduction.--Section 62(a) of such Code 
     is amended by adding after paragraph (16) the following new 
     paragraph:
       ``(17) Congressional campaign fund contributions.--The 
     deduction allowed by section 221.''
       (c) Conforming Amendments.--
       (1) Part VIII of subchapter A of chapter 61 of such Code is 
     amended by striking the heading and inserting:

     ``PART VIII--DESIGNATION OF AMOUNTS TO ELECTION CAMPAIGN FUNDS

``Subpart A. Federal Election Campaign Funds.
``Subpart B. Designation of additional amounts to Congressional 
              Election Campaign Fund.

            ``Subpart A--Federal Election Campaign Funds''.

       (2) The table of parts for subchapter A of chapter 61 of 
     such Code is amended by striking the item relating to part 
     VIII and inserting:

``Part VIII. Designation of amounts to election campaign funds.''
       (3) The table of sections for part VII of subchapter B of 
     chapter 1 of such Code is amended by striking the item 
     relating to section 221 and inserting:

``Sec. 221. Contributions to Congressional Election Campaign Fund.
``Sec. 222. Cross reference.''
       (d) Effective Date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     1996.
   TITLE III--PROVISIONS RELATING TO SOFT MONEY OF POLITICAL PARTIES

     SEC. 301. SOFT MONEY OF POLITICAL PARTIES.

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

     ``SEC. 324. SOFT MONEY OF POLITICAL PARTIES.

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

     SEC. 302. STATE PARTY GRASSROOTS FUNDS.

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

[[Page S813]]

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

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

     ``SEC. 325. STATE PARTY GRASSROOTS FUNDS.

       ``(a) Definition.--In this section, the term `State or 
     local candidate committee' means a committee established, 
     financed, maintained, or controlled by a candidate for other 
     than Federal office.
       ``(b) Transfers.--Notwithstanding section 315(a)(4), no 
     funds may be transferred by a State committee of a political 
     party from its State Party Grassroots Fund to any other State 
     Party Grassroots Fund or to any other political committee, 
     except a transfer may be made to a district or local 
     committee of the same political party in the same State if 
     the district or local committee--
       ``(1) has established a separate segregated fund for the 
     purposes described in section 324(b)(1); and
       ``(2) uses the transferred funds solely for those purposes.
       ``(c) Amounts Received by Grassroots Funds From State and 
     Local Candidate Committees.--
       ``(1) In general.--Any amount received by a State Party 
     Grassroots Fund from a State or local candidate committee for 
     expenditures described in section 324(b)(1) that are for the 
     benefit of that candidate shall be treated as meeting the 
     requirements of 324(b)(1) and section 304(d) if--
       ``(A) the amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A); and
       ``(B) the State or local candidate committee--
       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether those requirements are met; and
       ``(ii) certifies that the requirements were met.
       ``(2) Determination of compliance.--For purposes of 
     paragraph (1)(A), in determining whether the funds 
     transferred meet the requirements of this Act described in 
     paragraph (1)(A)--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee; and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains funds meeting those requirements 
     sufficient to cover the transferred funds.
       ``(3) Reporting.--Notwithstanding paragraph (1), any State 
     Party Grassroots Fund that receives a transfer described in 
     paragraph (1) from a State or local candidate committee shall 
     be required to meet the reporting requirements of this Act, 
     and shall submit to the Commission all certifications 
     received, with respect to receipt of the transfer from the 
     candidate committee.''
       (2) Definition.--Section 301 of FECA (2 U.S.C. 431) (as 
     amended by subsection (c)(2)) is amended by adding at the end 
     the following:
       ``(21) State party grassroots fund.--The term `State Party 
     Grassroots Fund' means a separate segregated fund established 
     and maintained by a State committee of a political party 
     solely for the purpose of making expenditures and other 
     disbursements described in section 324(b).''

     SEC. 303. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of FECA (2 U.S.C. 
     434) is amended by adding at the end the following new 
     subsection:
       ``(d) Political Committees.--(1) The national committee of 
     a political party, any congressional campaign committee of a 
     political party, and any subordinate committee of either, 
     shall report all receipts and disbursements during the 
     reporting period, whether or not in connection with an 
     election for Federal office.
       ``(2) A political committee (not described in paragraph 
     (1)) to which section 324(b)(1) applies shall report all 
     receipts and disbursements.
       ``(3) Any political committee shall include in its report 
     under paragraph (1) or (2) the amount of any contribution 
     received by a national committee which is to be transferred 
     to a State committee for use directly (or primarily to 
     support) activities described in section 324(b)(2) and shall 
     itemize such amounts to the extent required by subsection 
     (b)(3)(A).
       ``(4) Any political committee to which paragraph (1) or (2) 
     does not apply shall report any receipts or disbursements 
     that are used in connection with a Federal election.
       ``(5) If a political committee has receipts or 
     disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for such person in the same manner as required in 
     subsection (b) (3)(A), (5), or (6).
       ``(6) Reports required to be filed under this subsection 
     shall be filed for the same time periods required for 
     political committees under subsection (a).''
       (b) Report of Exempt Contributions.--Section 301(8) of FECA 
     (2 U.S.C. 431(8)) is amended by inserting at the end the 
     following:
       ``(C) The exclusion provided in subparagraph (B)(viii) 
     shall not apply for purposes of any requirement to report 
     contributions under this Act, and all such contributions 
     aggregating in excess of $200 shall be reported.''
       (c) Reports by State Committees.--Section 304 of FECA (2 
     U.S.C. 434), as amended by subsection (a), is amended by 
     adding at the end the following new subsection:
       ``(e) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines such reports contain substantially 
     the same information.''
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of FECA (2 
     U.S.C. 434(b)(4)) is amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of FECA (2 
     U.S.C. 434(b)(5)(A)) is amended--
       (A) by striking ``within the calendar year''; and
       (B) by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.
  TITLE IV--PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS INELIGIBLE TO 
                                  VOTE

     SEC. 401. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS 
                   INELIGIBLE 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.''.

[[Page S814]]

       (b) Inclusion in Definition of Identification.--Section 
     301(13) of the Federal Election 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''.
                                                                    ____


     Bumpers/Murray ``Public Confidence in Campaigns Act of 1997''


voluntary spending limits and public financing to restore faith in our 
                            political system

       Establishes Congressional Election Campaign Fund to provide 
     public financing to eligible Senate candidates who agree to 
     voluntary spending limits similar to McCain/Feingold. 
     Provides eligible candidates with matching funds in primary, 
     full public financing in the general election.
       The Fund is financed by expansion of the Presidential tax 
     return check-off from $3 to $10 and creation of a voluntary 
     tax return add-on allowing citizens to contribute to the 
     Fund. The first $100 contributed through the add-on is tax 
     deductible. ($200 for joint filers.)
       Eliminates soft money contributions to political parties.
       Requires reporting of independent expenditures, including 
     identification of the candidate the independent expenditure 
     seeks to support or oppose. Provides additional matching 
     funds to eligible candidates who are targeted by independent 
     expenditures of greater than $10,000.
       Reduces limit on PAC contributions to candidates to $2000 
     for the primary, $2000 for the general election.
       Prohibits contributions by foreign nationals and others who 
     are ineligible to vote in federal elections.
       Eligible candidates may not spend more than $10,000 of 
     their own funds.
       Applies to all elections held after December 31, 1998.
                                 ______