[Congressional Record Volume 143, Number 84 (Tuesday, June 17, 1997)]
[Senate]
[Pages S5792-S5800]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself, Mr. Wellstone, Mr. Glenn, Mr. Biden 
        and Mr. Leahy):
  S. 918. A bill to reform the financing of Federal elections; to the 
Committee on Rules and Administration.


                  THE CLEAN MONEY CLEAN ELECTIONS ACT

  Mr. KERRY. Mr. President, the Fourth of July will occur in a little 
over 2 weeks. That is the date by which the President challenged the 
Congress to act on campaign finance reform in this first session of the 
105th Congress. I regret I must announce the obvious: not only has 
neither house of the Congress addressed this issue in serious floor 
debate and legislative action; there is virtually no prospect that 
either house will do so by the time we leave for the July 4 recess. Nor 
is it clear when or if the 105th Congress will address this issue.
  The Fourth of July has other implications, of course, Mr. President--
and

[[Page S5793]]

some of these, too, are related to campaign finance reform. This is a 
peculiarly American holiday, when Americans throughout the Nation take 
time out to gather in parks and back yards, at barbecues and picnics 
and family reunions and community parades, to celebrate our democracy, 
our freedom.
  But I think there would be widespread agreement, as we do this in 
1997, that there is an unease across the Nation about the political 
process. The American people are concerned. Their concern is not 
primarily about who their elected officials are. Their frustration, 
cynicism, and anger run deep and broad--directed, as most of us 
realize, at the entire political system.
  Americans believe that their Government has been hijacked by special 
interests, that the political system responds to the needs of wealthy 
special interests, not the interests of ordinary, hard-working 
citizens. They sense, in many ways, that the Congress is not 
necessarily ``the people's house.''
  We see evidence of this in the feeling of powerlessness described by 
many Americans, and in the great gulf that grows wider between the 
American people and their elected officials. You can see it expressed 
frequently in town meetings and in various polls. The people feel that 
Congress all too often fails to represent the real concerns of real 
Americans, and they sense that they are being left out.
  The result is that more and more Americans are checking out of the 
system. If their democracy isn't going to respond to their concerns, 
then they ask themselves why they should respond to the request that 
they participate meaningfully in the political process. The reason for 
the disconnect is very simple, Mr. President. The amount of money in 
politics--money given to office seekers to campaign for office--
disenfranchises the average person who knows that he or she can never 
hope to have the same kind of access as that money achieves for those 
who give it.
  Special interest money is moving and dictating and governing the 
agenda of American politics, and most Americans understand that.
  A few findings from a bipartisan poll tell the story: 49 percent of 
registered voters believe that lobbyists and special interests control 
the Federal Government; 92 percent of registered voters believe that 
special interest contributions affect the votes of Members of Congress; 
and 88 percent believe that people who make large campaign 
contributions get special favors from politicians.
  The evidence of public discontent could hardly be more compelling, 
yet the Congress drifts on, with no apparent sense of urgency in trying 
to respond to that discontent. We all understand there are differences 
on each side of the aisle about the best way to address the problem, 
but I do not see how anyone can say in good conscience that there is a 
bona fide effort under way involving the leadership of both parties in 
the U.S. Congress to even try to work out those differences.
  If we want to regain the respect and confidence of the American 
people and if we want to reconnect to them and reconnect them to our 
democracy, we have to get the special interest money out of politics. 
As my friend Ross Perot says, ``It's just that simple.''
  The American people, however, are skeptical about either our 
willingness or ability to do that, and it doesn't help that the 105th 
Congress has yet to take up campaign finance reform. It doesn't help 
that the President and the Speaker of the House shook hands in a very 
public way 2 years ago and promised to do something about campaign 
finance, and nothing has transpired between then and now to fulfill 
that commitment, and from the perspective of the ordinary citizen who 
wants to see the special interest money removed from politics, it 
really looks like a conspiracy of inaction. Those who profit from the 
current system --special interests who know how to play the game, and 
politicians who know how to play the game--seem to be shutting down any 
prospect of real change.

  Mr. President, I know why people feel that way. I have been working 
on campaign finance reform since I came to the Senate. I have worked 
for years with my colleagues Joe Biden and Robert Byrd and others, and 
with former Senators such as George Mitchell, David Boren, and Bill 
Bradley--searching for the right equation to bring about change. 
Although from my arrival in the Senate I have advocated sweeping 
overhaul of the system, in recent times I have been a strong supporter 
of the proposal advanced by John McCain and Russ Feingold, even though 
it is incremental in design, because they succeeded in assembling a 
package of reforms that bridged the party divide that so often has been 
permitted to poison this debate and prevent meaningful action--and 
because I believe so fervently that we must succeed to whatever extent 
it is possible in moving toward what should be our objective.
  Throughout these years of activity--the 12 years of my service as a 
Senator--my goal has always been the same, to get special interest 
influence and special interest access out of politics.
  Mr. President, we come to the floor this afternoon on an auspicious 
day--or, perhaps more accurately, an inauspicious day. In any event it 
is a red-letter day for America. It was the day 25 years ago that was 
the beginning of two very difficult years in American history. It was 
25 years ago today that the famous burglary at the Watergate complex 
overlooking the Potomac in Washington, DC, took place, followed by 
coverup activities that reached into the Oval Office and resulted in 
the resignation in disgrace of an American President.
  During the investigation of the illegal activities, there were 
multiple revelations of huge amounts of cash moving in brown paper bags 
and leather briefcases. The public revulsion triggered real reform, 
although that reform, sadly, was directed primarily toward only the 
Presidential election financing system. But even that spirit of reform, 
and the significant alterations of the system to which it led, has been 
broken by those who want to trample it with the exploitation of every 
loophole possible in the campaign finance system.
  It is unfortunately fitting, then, Mr. President, that we return our 
attention on this day to that nemesis of the democratic process, the 
corrosive effect of money in politics.
  This time, 25 years later, it is the no-holds-barred pursuit of quite 
stunning amounts of money by both parties in the 1996 Presidential and 
congressional elections that captures the attention and the 
condemnation of the American people--and the allegations that many of 
those who gave large sums to one or the other party, or one candidate 
or another, expected favors in return, ranging from the trivial to the 
significant.
  The American people are not stupid. They know that there is no such 
thing as a free lunch. They believe--with considerable justification--
that the scores of millions of dollars that flow from well-to-do 
individuals and special interest organizations usually are not donated 
out of absolute disinterested patriotism, admiration for the 
candidates, and support for our electoral system.
  They watch repeatedly as public policy decisions made by the Congress 
and the Executive Branch appear to be influenced by those who have made 
the contributions. They conclude--again, I fear, with considerable good 
reason--that either those contributions directly affected the decision-
making process, or, at the very least, purchased for those contributors 
a greater degree of access to the elected officials who make the 
decisions, so that the contributors can more effectively and 
persuasively make their case.

  During this past election, 1996, not only in congressional races but 
also, distressingly, in the Presidential campaign--and it is especially 
distressing because many of us thought the Watergate reform legislation 
of 1974 had suitably repaired the system of presidential campaign 
finance--we saw a flood of special interest money the likes of which 
have never previously been seen here or anywhere.
  Every day during the past year, it has been impossible to open a 
newspaper or turn on a television without being confronted by yet 
another new revelation about an alleged campaign finance irregularity 
or abuse--or a defense of the actions at which the charges are leveled.
  And, I must say, the defenses are generally pretty lame. Those 
against whom the allegations are leveled may be able to find protection 
in the letter

[[Page S5794]]

of the law, but they are unsuccessful in avoiding the opprobrium of the 
American people and consequent cynicism about our government system.
  I am one who believes we absolutely must do something to reverse the 
trend if we are to save our precious democratic system. And I also have 
concluded that the forces arrayed against the kind of partial public 
financing approaches we previously have pushed are so strong that we 
must find a new approach behind which it will be possible to develop 
such strong consensus support across the nation that the Congress will 
be unable to resist it.
  To the extent competent polling and other public opinion assessment 
techniques can make a reliable determination, the evidence is 
persuasive that, while the American people are willing to embrace 
radical change of campaign financing--to take all special interest 
money and heave it over the side and shoulder all reasonable campaign 
costs--they have only passing interest and precious little enthusiasm 
for half-way measures. Their judgment appears to be that it would be a 
waste of effort and tax dollars to invest public resources in a system 
that retains any significant degree of special interest funding. They 
see such an approach as playing them for chumps--while the influence of 
special interests would remain as strong as it currently is.
  What does seem to capture the attention and imagination--and 
support--of a significant majority of Americans is sweeping reform of 
campaign finance that removes all special interest money from the 
system. This is not a notion dreamed up here in Washington--either here 
on Capitol Hill or in an organization's office downtown. Activities to 
implement such an approach to campaign finance reform have been 
underway in a number of States, including my own State of 
Massachusetts. Maine voters took the boldest step, approving such a 
concept for State elections. Now Vermont has followed suit with a 
provision applying to the Governor's office, and Governor Howard Dean 
is poised to sign the proposal into law. Other State-level efforts are 
in various stages of advancement.
  Paul Wellstone and John Glenn came early-on to the same conclusion to 
which I came--that we want to champion such an approach at the federal 
level. And we have been joined by Joe Biden and Pat Leahy, and other 
Senators are studying the idea carefully and we hope and trust we will 
be joined by some of them in the near future.
  We come to the floor today to introduce the Clean Money, Clean 
Elections Act, a bill that, as its most important feature, takes all 
special interest money out of Federal elections. This initiative will 
offer a set amount of funding, based on a State's voting-age 
population, to each candidate who agrees to foreswear private 
contributions. It not only removes all special interest money from the 
system, but also removes the necessity for candidates to spend a huge 
amount of time fundraising and to pour massive amounts of the money 
they do raise into further fundraising efforts.
  In addition, this legislation will shut down the so-called soft 
money, or unregulated money, loopholes that have permitted massive 
amounts of special interest money to enter the electoral process around 
even those restrictions that now exist.
  This process takes a major step forward today with the introduction 
of this legislation. Comparable efforts are underway in the House of 
Representatives, and I understand a similar bill will be introduced 
there in coming weeks.
  We believe the people are, once again, ahead of Washington--and, once 
again, ahead of the politicians. And we believe that ultimately this or 
a derivative approach is the only way effectively to restore people's 
confidence that, in America, anybody truly can run, and win--not just 
those who have access to wealth or who are wealthy themselves.
  This is a bill to restore our own democracy and preserve what we 
think is the heart of our precious system. We hope and believe that--
with a strong assist from their constituents--increasing numbers of our 
colleagues, over time, will come to recognize this and support the 
bill.
  This will not be a rapidly completed process, Mr. President. We 
introduce this bill with the knowledge that it would not attract more 
than perhaps a quarter of the votes in the Senate today. This will be a 
journey, a journey of mobilizing the American people to require their 
elected representatives to take needed action. Our bill will be the 
objective, and it also will be the rallying point. And with the 
commitment of the organizations and individuals who advocate this 
approach, a movement will develop which cannot be stopped. Just as in 
Maine and now in Vermont, the support will grow to critical mass and 
these reforms will succeed.
  I look forward to walking this road with all who support this 
approach--both my colleagues in the Senate and friends outside the 
Senate. We who introduce this bill are committed to fundamentally 
changing our electoral system, and returning control of our elected 
officials and their agenda to the people after wresting it back from 
the special interests.
  I believe we will succeed, and can look back on this day--the 25th 
anniversary of a lamentable event in American history--as an important 
beginning point in that endeavor.
  I want to commend those colleagues who join in introducing this 
legislation today--Senators Wellstone, Glenn, Biden, and Leahy. I 
particularly want to compliment Senator Wellstone's capable staff, 
especially Brian Ahlberg, who have invested countless hours in the 
effort that is so essential but often unnoticed, of transforming 
complex policy objectives into legislative language, working hand-in-
hand with Senate Legislative Counsel staff and representatives of 
organizations which have been developing this idea at the State level. 
My staff has greatly appreciated their contributions to this effort and 
enjoyed working with them, as I have enjoyed the cooperative efforts 
with Senator Wellstone and my other colleagues.
  Mr. President, before I yield to Senator Wellstone and then, in turn, 
to other Senators who may wish to make remarks about this legislation, 
I ask unanimous consent that the full text of the bill be printed in 
the Record at the conclusion of my remarks, followed by a summary of 
the bill and a chart depicting the qualifying contribution requirement 
and the ``Clean Money'' allocation and spending limit for a general 
election that would apply to a candidate participating in the ``Clean 
Money, Clean Election'' system in each State.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 918

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Clean 
     Money, Clean Elections Act''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.

      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of clean money 
              financing of Senate election campaigns.
Sec. 103. Reporting requirements for expenditures of private money 
              candidates.
Sec. 104. Transition rule for current election cycle.

      TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES

Sec. 201. Reporting requirements for independent expenditures.
Sec. 202. Definition of independent expenditure.
Sec. 203. Limit on expenditures by political party committees.
Sec. 204. Party independent expenditures and coordinated expenditures.

                      TITLE III--VOTER INFORMATION

Sec. 301. Free broadcast time.
Sec. 302. Broadcast rates and preemption.
Sec. 303. Campaign advertisements; issue advertisements.
Sec. 304. Limit on congressional use of the franking privilege.

           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

Sec. 401. Soft money of political party committee.
Sec. 402. State party grassroots funds.
Sec. 403. Reporting requirements.

   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

Sec. 501. Appointment and terms of commissioners.
Sec. 502. Audits.
Sec. 503. Authority to seek injunction.

[[Page S5795]]

Sec. 504. Standard for investigation.
Sec. 505. Petition for certiorari.
Sec. 506. Expedited procedures.
Sec. 507. Filing of reports using computers and facsimile machines.
Sec. 508. Power to issue subpoena without signature of chairperson.
Sec. 509. Prohibition of contributions by individuals not qualified to 
              vote.

                        TITLE VI--EFFECTIVE DATE

Sec. 601. Effective date.
      TITLE I--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

     SEC. 101. FINDINGS AND DECLARATIONS.

       (a) Undermining of Democracy by Campaign Contributions From 
     Private Sources.--The Senate finds and declares that the 
     current system of privately financed campaigns for election 
     to the Senate undermines democracy in the United States by--
       (1) violating the democratic principle of ``one person, one 
     vote'' and diminishing the meaning of the right to vote by 
     allowing monied interests to have a disproportionate and 
     unfair influence within the political process;
       (2) diminishing a Senator's accountability to constituents 
     by compelling legislators to be accountable to the major 
     contributors who finance their election campaigns;
       (3) creating a conflict of interest, perceived and real, by 
     encouraging Senators to take money from private interests 
     that are directly affected by Federal legislation;
       (4) imposing large, unwarranted costs on taxpayers through 
     legislative and regulatory outcomes shaped by unequal access 
     to lawmakers for campaign contributors;
       (5) driving up the cost of election campaigns, making it 
     difficult for qualified candidates without personal fortunes 
     or access to campaign contributions from monied individuals 
     and interest groups to mount competitive Senate election 
     campaigns;
       (6) disadvantaging challengers, because large campaign 
     contributors tend to give their money to incumbent Senators, 
     thus causing Senate elections to be less competitive; and
       (7) burdening incumbents with a preoccupation with 
     fundraising and thus decreasing the time available to carry 
     out their public responsibilities.
       (b) Enhancement of Democracy by Providing Clean Money.--The 
     Senate finds and declares that the replacement of private 
     campaign contributions with clean money financing for all 
     primary, runoff, and general elections to the Senate would 
     enhance American democracy by--
       (1) helping to eliminate access to wealth as a determinant 
     of a citizen's influence within the political process and to 
     restore meaning to the principle of ``one person, one vote'';
       (2) increasing the accountability of Senators to the 
     constituents who elect them;
       (3) eliminating the inherent conflict of interest caused by 
     the private financing of the election campaigns of public 
     officials, thus restoring public confidence in the fairness 
     of the electoral and legislative processes;
       (4) reversing the escalating cost of elections and saving 
     taxpayers billions of dollars that are currently misspent due 
     to legislative and regulatory agendas skewed by the influence 
     of contributions;
       (5) creating a more level playing field for incumbents and 
     challengers, creating genuine opportunities for all Americans 
     to run for the Senate, and encouraging more competitive 
     elections; and
       (6) freeing Senators from the constant preoccupation with 
     raising money, and allowing them more time to carry out their 
     public responsibilities.

     SEC. 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF CLEAN 
                   MONEY FINANCING OF SENATE ELECTION CAMPAIGNS.

       The Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
     seq.) is amended by adding at the end the following:
     ``TITLE V--CLEAN MONEY FINANCING OF SENATE ELECTION CAMPAIGNS

     ``SEC. 501. DEFINITIONS.

       ``In this title:
       ``(1) Allowable contribution.--The term `allowable 
     contribution' means a qualifying contribution or seed money 
     contribution.
       ``(2) Clean money.--The term `clean money' means funds that 
     are made available by the Commission to a clean money 
     candidate under this title.
       ``(3) Clean money candidate.--The term `clean money 
     candidate' means a candidate for the Senate who is certified 
     under section 505 as being eligible to receive clean money.
       ``(4) Clean money qualifying period.--The term `clean money 
     qualifying period' means the period beginning on the date 
     that is 270 days before the date of the primary election and 
     ending on the date that is 30 days before the date of the 
     general election.
       ``(5) General election period.--The term `general election 
     period' means, with respect to a candidate, the period 
     beginning on the day after the date of the primary or primary 
     runoff election for the specific office that the candidate is 
     seeking, whichever is later, and ending on the earlier of--
       ``(A) the date of the general election; or
       ``(B) the date on which the candidate withdraws from the 
     campaign or otherwise ceases actively to seek election.
       ``(6) General runoff election period.--The term `general 
     runoff election period' means, with respect to a candidate, 
     the period beginning on the day following the date of the 
     last general election for the specific office that the 
     candidate is seeking and ending on the date of the runoff 
     election for that office.
       ``(7) Immediate family.--The term `immediate family' 
     means--
       ``(A) a candidate's spouse;
       ``(B) a child, stepchild, parent, grandparent, brother, 
     half-brother, sister, or half-sister of the candidate or the 
     candidate's spouse; and
       ``(C) the spouse of any person described in subparagraph 
     (B).
       ``(8) Major party candidate.--The term `major party 
     candidate' means a candidate of a political party of which a 
     candidate for Senator, for President, or for Governor in the 
     preceding 5 years received, as a candidate of that party, 25 
     percent or more of the total number of popular votes received 
     in the State by all candidates for the same office.
       ``(9) Personal funds.--The term `personal funds' means an 
     amount that is derived from--
       ``(A) the personal funds of the candidate or a member of 
     the candidate's immediate family; and
       ``(B) proceeds of indebtedness incurred by the candidate or 
     a member of the candidate's immediate family.
       ``(10) Personal use.--
       ``(A) In general.--The term `personal use' means the use of 
     funds to fulfill a commitment, obligation, or expense of a 
     person that would exist irrespective of the candidate's 
     election campaign or individual's duties as a holder of 
     Federal office.
       ``(B) Inclusions.--The term `personal use' includes--
       ``(i) a home mortgage, rent, or utility payment;
       ``(ii) a clothing purchase;
       ``(iii) a noncampaign-related automobile expense;
       ``(iv) a country club membership;
       ``(v) a vacation or other noncampaign-related trip;
       ``(vi) a household food item;
       ``(vii) a tuition payment;
       ``(viii) admission to a sporting event, concert, theater, 
     or other form of entertainment not associated with an 
     election campaign; and
       ``(ix) dues, fees, and other payments to a health club or 
     recreational facility.
       ``(11) Primary election period.--The term `primary election 
     period' means the period beginning on the date that is 90 
     days before the date of the primary election and ending on 
     the date of the primary election.
       ``(12) Primary runoff election period.--The term `primary 
     runoff election period' means, with respect to a candidate, 
     the period beginning on the day following the date of the 
     last primary election for the specific office that the 
     candidate is seeking and ending on the date of the runoff 
     election for that office.
       ``(13) Private money candidate.--The term `private money 
     candidate' means a candidate for the Senate other than a 
     clean money candidate.
       ``(14) Qualifying contribution.--The term `qualifying 
     contribution' means a contribution that--
       ``(A) is in the amount of $5 exactly;
       ``(B) is made by an individual who is registered to vote in 
     the candidate's State;
       ``(C) is made during the clean money qualifying period; and
       ``(D) meets the requirements of section 502(a)(2)(D).
       ``(15) Seed money contribution.--The term `seed money 
     contribution' means a contribution (or contributions in the 
     aggregate made by any 1 person) of not more than $100.
       ``(16) Senate election fund.--The term `Senate Election 
     Fund' means the fund established by section 507(a).

     ``SEC. 502. ELIGIBILITY FOR CLEAN MONEY.

       ``(a) Primary Election Period and Primary Runoff Election 
     Period.--
       ``(1) In general.--A candidate qualifies as a clean money 
     candidate during the primary election period and primary 
     runoff election period if the candidate files with the 
     Commission a declaration, signed by the candidate and the 
     treasurer of the candidate's principal campaign committee, 
     that the candidate--
       ``(A) has complied and will comply with all of the 
     requirements of this title;
       ``(B) will not run in the general election as a private 
     money candidate; and
       ``(C) meets the qualifying contribution requirement of 
     paragraph (2).
       ``(2) Qualifying contribution requirement.--
       ``(A) Major party candidates.--The requirement of this 
     paragraph is met if, during the clean money qualifying 
     period, a major party candidate receives the greater of--
       ``(i) 1,000 qualifying contributions; or
       ``(ii) a number of qualifying contributions equal to 0.25 
     percent of the voting age population of the candidate's 
     State.
       ``(B) Candidates that are not major party candidates.--The 
     requirement of this paragraph is met if, during the clean 
     money qualifying period, a candidate that is not a major 
     party candidate receives a number of qualifying contributions 
     that is at least 150 percent of the number of qualifying 
     contributions that a major party candidate in the same 
     election is required to receive under subparagraph (A).
       ``(C) Receipt of qualifying contribution.--A qualifying 
     contribution shall--
       ``(i) be accompanied by the contributor's name and home 
     address;

[[Page S5796]]

       ``(ii) be accompanied by a signed statement that the 
     contributor understands the purpose of the qualifying 
     contribution;
       ``(iii) be made by a personal check or money order payable 
     to the Senate Election Fund or by cash; and
       ``(iv) be acknowledged by a receipt that is sent to the 
     contributor with a copy kept by the candidate for the 
     Commission and a copy kept by the candidate for the election 
     authorities in the candidate's State.
       ``(D) Deposit of qualifying contributions in senate 
     election fund.--
       ``(i) In general.--Not later than the date that is 1 day 
     after the date on which the candidate is certified under 
     section 505, a candidate shall remit all qualifying 
     contributions to the Commission for deposit in the Senate 
     Election Fund.
       ``(ii) Candidates that are not certified.--Not later than 
     the last day of the clean money qualifying period, a 
     candidate who has received qualifying contributions and is 
     not certified under section 505 shall remit all qualifying 
     contributions to the Commission for deposit in the Senate 
     Election Fund.
       ``(3) Time to file declaration.--A declaration under 
     paragraph (1) shall be filed by a candidate not later than 
     the date that is 30 days before the date of the primary 
     election.
       ``(b) General Election Period.--
       ``(1) In general.--A candidate qualifies as a clean money 
     candidate during the general election period if--
       ``(A)(i) the candidate qualified as a clean money candidate 
     during the primary election period (and primary runoff 
     election period, if applicable); or
       ``(ii) the candidate files with the Commission a 
     declaration, signed by the candidate and the treasurer of the 
     candidate's principal committee, that the candidate--
       ``(I) has complied and will comply with all the 
     requirements of this title; and
       ``(II) meets the qualifying contribution requirement of 
     subsection (a)(2);
       ``(B) the candidate files with the Commission a written 
     agreement between the candidate and the candidate's political 
     party in which the political party agrees not to make any 
     expenditures in connection with the general election of the 
     candidate in excess of the limit in section 315(d)(3)(C); and
       ``(C) the candidate's party nominated the candidate to be 
     placed on the ballot for the general election or the 
     candidate qualified to be placed on the ballot as an 
     independent candidate, and the candidate is qualified under 
     State law to be on the ballot.
       ``(2) Time to file declaration or statement.--A declaration 
     or statement required to be filed under paragraph (1) shall 
     be filed by a candidate not later than the date that is 30 
     days before the date of the general election.
       ``(c) General Runoff Election Period.--A candidate 
     qualifies as a clean money candidate during the general 
     runoff election period if the candidate qualified as a clean 
     money candidate during the general election period.

     ``SEC. 503. REQUIREMENTS APPLICABLE TO CLEAN MONEY 
                   CANDIDATES.

       ``(a) Obligation To Comply.--A clean money candidate who 
     accepts benefits during the primary election period shall 
     comply with all the requirements of this Act through the 
     primary runoff election period, the general election period, 
     and the general runoff election period (if applicable) 
     whether the candidate continues to accept benefits or not.
       ``(b) Contributions and Expenditures.--
       ``(1) Prohibition of private contributions.--Except as 
     otherwise provided in this title, during the election cycle 
     of a clean money candidate, the candidate shall not accept 
     contributions other than clean money from any source.
       ``(2) Prohibition of expenditures from private sources.--
     Except as otherwise provided in this title, during the 
     election cycle of a clean money candidate, the candidate 
     shall not make expenditures from any amounts other than clean 
     money amounts.
       ``(c) Use of Personal Funds.--
       ``(1) In general.--A clean money candidate shall not use 
     personal funds to make an expenditure except as provided in 
     paragraph (2).
       ``(2) Exceptions.--A seed money contribution or qualifying 
     contribution from the candidate or a member of the 
     candidate's immediate family shall not be considered to be 
     use of personal funds.
       ``(d) Debates.--
       ``(1) Number of debates.--A clean money candidate shall 
     participate in at least--
       ``(A) 1 public debate with other clean money candidates 
     from the same party for the same office during the primary 
     election period; and
       ``(B) 2 public debates with other clean money candidates 
     for the same office during the general election period.
       ``(2) Regulation.--The Commission shall promulgate a 
     regulation as necessary to carry out paragraph (1).

     ``SEC. 504. SEED MONEY.

       ``(a) Seed Money Limit.--A clean money candidate may accept 
     seed money contributions in an aggregate amount not 
     exceeding--
       ``(1) $50,000; plus
       ``(2) if there is more than 1 congressional district in the 
     candidate's State, an amount that is equal to $5,000 times 
     the number of additional congressional districts.
       ``(b) Contribution Limit.--Except as provided in section 
     502(a)(2), a clean money candidate shall not accept a 
     contribution from any person except a seed money contribution 
     (as defined in section 501).
       ``(c) Records.--A clean money candidate shall maintain a 
     record of the contributor's name, street address, and amount 
     of the contribution.
       ``(d) Use of Seed Money.--
       ``(1) In general.--A clean money candidate may expend seed 
     money for any election campaign-related costs, including 
     costs to open an office, fund a grassroots campaign, or hold 
     community meetings.
       ``(2) Prohibited uses.--A clean money candidate shall not 
     expend seed money for--
       ``(A) a television or radio broadcast; or
       ``(B) personal use.
       ``(e) Report.--Unless a seed money contribution or 
     expenditure made with a seed money contribution has been 
     reported previously under section 304, a clean money 
     candidate shall file with the Commission a report disclosing 
     all seed money contributions and expenditures not later than 
     48 hours after--
       ``(1) the earliest date on which the Commission makes funds 
     available to the candidate for an election period under 
     paragraph (1) or (2) of section 506(b); or
       ``(2) the end of the clean money qualifying period,

     whichever occurs first.
       ``(f) Time to Accept and Expend Seed Money Contributions.--
     A clean money candidate may accept and expend seed money 
     contributions for an election during the time period 
     beginning on the day after the date of the previous general 
     election for the office to which the candidate is seeking 
     election and ending on the earliest date on which the 
     Commission makes funds available to the candidate for an 
     election period under paragraph (1) or (2) of section 506(b).
       ``(g) Deposit of Unspent Seed Money Contributions.--A clean 
     money candidate shall remit any unspent seed money to the 
     Commission, for deposit in the Senate Election Fund, not 
     later than the earliest date on which the Commission makes 
     funds available to the candidate for an election period under 
     paragraph (1) or (2) of section 506(b).
       ``(h) Not Considered an expenditure.--An expenditure made 
     with seed money shall not be treated as an expenditure for 
     purposes of section 506(f)(2).

     ``SEC. 505. CERTIFICATION BY COMMISSION.

       ``(a) In General.--Not later than 5 days after a candidate 
     files a declaration under section 502, the Commission shall--
       ``(1) determine whether the candidate meets the eligibility 
     requirements of section 502; and
       ``(2) certify whether or not the candidate is a clean money 
     candidate.
       ``(b) Revocation of Certification.--The Commission may 
     revoke a certification under subsection (a) if a candidate 
     fails to comply with this title.
       ``(c) Repayment of Benefits.--If certification is revoked 
     under subsection (b), the candidate shall repay to the Senate 
     Election Fund an amount equal to the value of benefits 
     received under this title.

     ``SEC. 506. BENEFITS FOR CLEAN MONEY CANDIDATES.

       ``(a) In General.--A clean money candidate shall be 
     entitled to--
       ``(1) a clean money amount for each election period to make 
     or obligate to make expenditures during the election period 
     for which the clean money is provided, as provided in 
     subsection (c);
       ``(2) media benefits under section 315 of the 
     Communications Act of 1934 (47 U.S.C. 315); and
       ``(3) an aggregate amount of increase in the clean money 
     amount in response to certain independent expenditures and 
     expenditures of a private money candidate under subsection 
     (d) that, in the aggregate, are in excess of 125 percent of 
     the clean money amount of the clean money candidate.
       ``(b) Payment of Clean Money Amount.--
       ``(1) Primary election.--The Commission shall make funds 
     available to a clean money candidate on the later of--
       ``(A) the date on which the candidate is certified as a 
     clean money candidate under section 505; or
       ``(B) the date on which the primary election period begins.
       ``(2) General election.--The Commission shall make funds 
     available to a clean money candidate not later than 48 hours 
     after--
       ``(A) certification of the primary election or primary 
     runoff election result; or
       ``(B) the date on which the candidate is certified as a 
     clean money candidate under section 505 for the general 
     election,

     whichever occurs first.
       ``(3) Runoff election.--The Commission shall make funds 
     available to a clean money candidate not later than 48 hours 
     after the certification of the primary or general election 
     result (as applicable).
       ``(c) Clean Money Amounts.--
       ``(1) Primary election clean money amount.--
       ``(A) Major party candidates.--The primary election clean 
     money amount with respect to a clean money candidate who is a 
     major party candidate is 67 percent of the general election 
     clean money amount with respect to the clean money candidate.
       ``(B) Candidates that are not major party candidates.--The 
     primary election clean money amount with respect to a clean 
     money candidate who is not a major party candidate is 25 
     percent of the general election clean money amount with 
     respect to the clean money candidate.
       ``(2) Primary runoff election clean money amount.--The 
     primary runoff election

[[Page S5797]]

     clean money amount with respect to a clean money candidate is 
     25 percent of the primary election clean money amount with 
     respect to the clean money candidate.
       ``(3) General election clean money amount.--
       ``(A) In general.--The general election clean money amount 
     with respect to a clean money candidate is the lesser of--
       ``(i) $4,400,000; or
       ``(ii) the greater of--

       ``(I) $760,000; or
       ``(II) $320,000; plus

       ``(aa) 24 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(bb) 20 cents multiplied by the voting age population in 
     excess of 4,000,000.
       ``(B) 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, subparagraph (A)(ii)(II) 
     shall be applied by substituting--
       ``(i) `64 cents' for `24 cents' in item (aa); and
       ``(ii) `56 cents' for `20 cents' in item (bb).
       ``(C) Indexing.--The clean money amount under subparagraphs 
     (A) and (B) shall be increased as of the beginning of each 
     calendar year based on an increase in the price index 
     determined under section 315(c), except that the base period 
     shall be calendar year 1997.
       ``(4) General runoff election clean money amount.--The 
     general runoff election clean money amount with respect to a 
     clean money candidate is 25 percent of the general election 
     clean money amount with respect to the clean money candidate.
       ``(5) Unopposed candidates.--Except for a candidate 
     receiving amounts under paragraph (1)(B), a clean money 
     candidate in a primary or general election in which there is 
     no opposing candidate shall receive a clean money amount with 
     respect to that election equal to 25 percent of the full 
     clean money amount that the candidate would receive in a 
     contested election.
       ``(d) Matching Funds in Response to Independent 
     Expenditures and Expenditures of Private Money Candidates.--
       ``(1) In general.--If the Commission--
       ``(A) receives notification under--
       ``(i) subparagraphs (A) or (B) of section 304(c)(2) that a 
     person has made or obligated to make an independent 
     expenditure in an aggregate amount of $1,000 or more in an 
     election period or that a person has made or obligated to 
     make an independent expenditure in an aggregate amount of 
     $500 or more during the 20 days preceding the date of an 
     election in support of another candidate or against a clean 
     money candidate; or
       ``(ii) section 304(d)(1) that a private money candidate has 
     made or obligated to make expenditures in an aggregate amount 
     in excess of 100 percent of the amount of clean money 
     provided to a clean money candidate who is an opponent of the 
     private money candidate in the same election; and
       ``(B) determines that the aggregate amount of expenditures 
     reported under subparagraph (A) in an election period is in 
     excess of 125 percent of the amount of clean money provided 
     to a clean money candidate who is an opponent of the private 
     money candidate in the same election or against whom the 
     independent expenditure is made,

     the Commission shall make available to the clean money 
     candidate, not later than 24 hours after receiving a 
     notification under subparagraph (A), an aggregate amount of 
     increase in clean money in an amount equal to the aggregate 
     amount of expenditures that is in excess of 125 percent of 
     the amount of clean money provided to the clean money 
     candidate as determined under subparagraph (B).
       ``(2) Clean money candidates opposed by more than 1 private 
     money candidate.--For purposes of paragraph (1), if a clean 
     money candidate is opposed by more than 1 private money 
     candidate in the same election, the Commission shall take 
     into account only the amount of expenditures of the private 
     money candidate that expends, in the aggregate, the greatest 
     amount (as determined each time notification is received 
     under section 304(d)(1)).
       ``(3) Clean money candidates opposed by clean money 
     candidates.--If a clean money candidate is opposed by a clean 
     money candidate, the increase in clean money amounts under 
     paragraph (1) shall be made available to the clean money 
     candidate if independent expenditures are made against the 
     clean money candidate or in behalf of the opposing clean 
     money candidate in the same manner as the increase would be 
     made available for a clean money candidate who is opposed by 
     a private money candidate.
       ``(e) Limits on Matching Funds.--The aggregate amount of 
     clean money that a clean money candidate receives to match 
     independent expenditures and the expenditures of private 
     money candidates under subsection (d) shall not exceed 200 
     percent of the clean money amount that the clean money 
     candidate receives under subsection (c).
       ``(f) Expenditures Made with Clean Money Amounts.--
       ``(1) In general.--The clean money amount received by a 
     clean money candidate shall be used only for the purpose of 
     making or obligating to make expenditures during the election 
     period for which the clean money is provided.
       ``(2) Expenditures in excess of clean money amount.--A 
     clean money candidate shall not make expenditures or incur 
     obligations in excess of the clean money amount.
       ``(3) Prohibited uses.--The clean money amount received by 
     a clean money candidate shall not be--
       ``(A) converted to a personal use; or
       ``(B) used in violation of law.
       ``(4) Petty cash fund.--
       ``(A) In general.--A candidate may establish a petty cash 
     fund, to be used to pay expenses such as the costs of food, 
     newspapers, magazines, pay telephone calls and other minor 
     necessary expenses, that contains, on any day, not more 
     than--
       ``(i) $200; plus
       ``(ii) if there is more than 1 congressional district in 
     the candidate's State, an amount that is equal to $20 times 
     the number of additional congressional districts.
       ``(B) Receipt.--An expenditure from the petty cash fund in 
     an amount greater than $25 shall be evidenced by a receipt 
     describing the item purchased, the purpose and cost of the 
     item, and the name and street address of the seller.
       ``(5) Penalty.--A person that uses a clean money amount in 
     violation of this subsection shall be imprisoned not more 
     than 5 years, fined not more than $15,000, or both.
       ``(g) Remitting of Clean Money Amounts.--Not later than the 
     date that is 14 days after the last day of the applicable 
     election period, a clean money candidate shall remit any 
     unspent clean money amount to the Commission for deposit in 
     the Senate Election Fund.

     ``SEC. 507. ADMINISTRATION OF CLEAN MONEY.

       ``(a) Senate Election Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     a fund to be known as the `Senate Election Fund'.
       ``(2) Deposits.--The Commission shall deposit unspent seed 
     money contributions, qualifying contributions, penalty 
     amounts received under this title, and amounts appropriated 
     for clean money financing in the Senate Election Fund.
       ``(3) Funds.--The Commission shall withdraw the clean money 
     amount for a clean money candidate from the Senate Election 
     Fund.
       ``(b) Regulations.--The Commission shall promulgate a 
     regulation to--
       ``(1) effectively and efficiently monitor and enforce the 
     limits on use of private money by clean money candidates;
       ``(2) effectively and efficiently monitor use of publicly 
     financed amounts under this title; and
       ``(3) enable clean money candidates to monitor expenditures 
     and comply with the requirements of this title.

     ``SEC. 508. EXPENDITURES MADE FROM FUNDS OTHER THAN CLEAN 
                   MONEY.

       ``If a clean money candidate makes an expenditure using 
     funds other than funds provided under this title, the 
     Commission shall assess a civil penalty against the candidate 
     in an amount that is not more than 10 times the amount of the 
     expenditure.

     ``SEC. 509. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Senate 
     Election Fund such sums as are necessary to carry out this 
     title.''.

     SEC. 103. REPORTING REQUIREMENTS FOR EXPENDITURES OF PRIVATE 
                   MONEY CANDIDATES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following:
       ``(d) Private Money Candidates.--
       ``(1) Expenditures in excess of clean money amounts.--Not 
     later than 48 hours after making or obligating to make an 
     expenditure, a private money candidate (as defined in section 
     501) that makes or obligates to make expenditures during an 
     election period (as defined by section 501), in an aggregate 
     amount in excess of 100 percent of the amount of clean money 
     provided to a clean money candidate (as defined in section 
     501), who is an opponent of the private money candidate shall 
     file with the Commission a report stating the amount of each 
     expenditure (in increments of an aggregate amount of $1,000) 
     made or obligated to be made.
       ``(2) Place of filing; Notification.--
       ``(A) Place of filing.--A report under this subsection 
     shall be filed with the Commission.
       ``(B) Notification of clean money candidates.--Not later 
     than 24 hours after receipt of a report under this 
     subsection, the Commission shall notify each clean money 
     candidate seeking nomination for election to, or election to, 
     the office in question, of the receipt of the report.
       ``(3) Determinations by the commission.--
       ``(A) In general.--The Commission may, on a request of a 
     candidate or on its own initiative, make a determination that 
     a private money candidate has made, or has obligated to make, 
     expenditures in excess of the applicable amount in paragraph 
     (1).
       ``(B) Notification.--In the case of such a determination, 
     the Commission shall notify each clean money candidate 
     seeking nomination for election to, or election to, the 
     office in question, of the making of the determination not 
     later than 24 hours after making the determination.
       ``(C) Time to comply with request for determination.--A 
     determination made at the request of a candidate shall be 
     made not later than 48 hours after the date of the 
     request.''.

     SEC. 104. TRANSITION RULE FOR CURRENT ELECTION CYCLE.

       (a) In General.--During the election cycle in effect on the 
     date of enactment of this Act, a candidate may be certified 
     as a clean money candidate (as defined in section 501 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431)), 
     notwithstanding the acceptance

[[Page S5798]]

     of contributions or making of expenditures from private funds 
     before the date of enactment that would, absent this section, 
     disqualify the candidate as a clean money candidate.
       (b) Private Funds.--A candidate may be certified as a clean 
     money candidate only if any private funds accepted and not 
     expended before the date of enactment of this Act are--
       (1) returned to the contributor; or
       (2) submitted to the Federal Election Commission for 
     deposit in the Senate Election Fund (as defined in section 
     501 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431)).
      TITLE II--INDEPENDENT EXPENDITURES; COORDINATED EXPENDITURES

     SEC. 201. REPORTING REQUIREMENTS FOR INDEPENDENT 
                   EXPENDITURES.

       (a) Independent Expenditures.--Section 304(c) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(c)) is 
     amended--
       (1) by striking ``(c)(1) Every person'' and inserting the 
     following:
       ``(c) Independent Expenditures.--
       ``(1) In general.--
       ``(A) Required filing.--Except as provided in paragraph 
     (2), every person'';
       (2) in paragraph (2), by redesignating subparagraphs (A), 
     (B), and (C) as clauses (i), (ii), and (iii), respectively, 
     and adjusting the margins accordingly;
       (3) by redesignating paragraphs (2) and (3) as 
     subparagraphs (B) and (C), respectively, and adjusting the 
     margins accordingly;
       (4) by adding at the end the following:
       ``(2) Senate elections with a clean money candidate.--
       ``(A) Independent expenditures more than 20 days before an 
     election.--
       ``(i) In general.--Not later than 48 hours after making or 
     obligating to make an independent expenditure, more than 20 
     days before the date of an election, in support of an 
     opponent of or in opposition to a clean money candidate (as 
     defined in section 501), a person that makes independent 
     expenditures in an aggregate amount in excess of $1,000 
     during an election period (as defined in section 501) shall 
     file with the Commission a statement containing the 
     information described in clause (ii).
       ``(ii) Contents of statement.--A statement under 
     subparagraph (A) shall include a certification, under penalty 
     of perjury, that contains the information required by 
     subsection (b)(6)(B)(iii).
       ``(iii) Additional statements.--An additional statement 
     shall be filed for each aggregate of independent expenditures 
     that exceeds $1,000.
       ``(B) Independent expenditures during the 20 days preceding 
     an election.--Not later than 24 hours after making or 
     obligating to make an independent expenditure in support of 
     an opponent of or in opposition to a clean money candidate in 
     an aggregate amount in excess of $500, during the 20 days 
     preceding the date of an election, a person that makes or 
     obligates to make the independent expenditure shall file with 
     the Commission a statement stating the amount of each 
     independent expenditure made or obligated to be made.
       ``(C) Place of filing; notification.--
       ``(i) Place of filing.--A report or statement under this 
     paragraph shall be filed with the Commission.
       ``(ii) Notification of clean money candidates.--Not later 
     than 24 hours after receipt of a statement under this 
     paragraph, the Commission shall notify each clean money 
     candidate seeking nomination for election to, or election to, 
     the office in question of the receipt of a statement.
       ``(D) Determination by the commission.--
       ``(i) In general.--The Commission may, on request of a 
     candidate or on its own initiative, make a determination that 
     a person has made or obligated to make independent 
     expenditures with respect to a candidate that in the 
     aggregate exceed the applicable amount under subparagraph 
     (A).
       ``(ii) Notification.--Not later than 24 hours after making 
     a determination under clause (i), the Commission shall notify 
     each clean money candidate in the election of the making of 
     the determination.
       ``(iii) Time to comply with request for determination.--A 
     determination made at the request of a candidate shall be 
     made not later than 48 hours after the date of the 
     request.''.

     SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE.

       (a) In General.--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 made by a person other than a candidate or 
     candidate's authorized committee--
       ``(i) that is made for a communication that contains 
     express advocacy; and
       ``(ii) is made without the participation or cooperation of 
     and without coordination with a candidate (within the meaning 
     of section 301(8)(A)(iii)).
       ``(B) Express advocacy.--The term `express advocacy' means 
     a communication that is made through a broadcast medium, 
     newspaper, magazine, billboard, direct mail, or similar type 
     of general public communication or political advertising and 
     that--
       ``(i) advocates the election or defeat of a clearly 
     identified candidate, including any communication that--

       ``(I) contains a phrase such as `vote for', `re-elect', 
     `support', `cast your ballot for', `(name of candidate) for 
     Congress', `(name of candidate) in 1997', `vote against', 
     `defeat', `reject'; or
       ``(II) contains campaign slogans or individual words that 
     in context can have no reasonable meaning other than to 
     recommend the election or defeat of 1 or more clearly 
     identified candidates; or

       ``(ii)(I) involves aggregate disbursements of $5,000 or 
     more;
       ``(II) refers to a clearly identified candidate; and
       ``(III) is made not more than 60 days before the date of a 
     general election.''.
       (b) Definition Applicable When Provision Not in Effect.--
     For purposes of the Federal Election Campaign Act of 1971, 
     during any period beginning after the effective date of this 
     Act in which the definition, or any part of the definition, 
     under section 301(17)(B) of that Act (as added by subsection 
     (a)) is not in effect, the definition of ``express advocacy'' 
     shall mean, in addition to the part of the definition that is 
     in effect, a communication that clearly identifies a 
     candidate and--
       (1) taken as a whole and with limited reference to external 
     events, such as proximity to an election, expresses 
     unmistakable support for or opposition to 1 or more clearly 
     identified candidates; or
       (2) is made for the clear purpose of advocating the 
     election or defeat of the candidate, as shown by the 
     existence of each of the following factors:
       (A) A statement or action by the person making the 
     communication.
       (B) The targeting or placement of the communication.
       (C) The use by the person making the communication of 
     polling, demographic, or other similar data relating to the 
     candidate's campaign for election.

     SEC. 203. LIMIT ON EXPENDITURES BY POLITICAL PARTY 
                   COMMITTEES.

       Section 315(d)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(d)(3)) is amended--
       (1) in subparagraph (A)(ii)--
       (A) by inserting ``except an election in which 1 or more of 
     the candidates is a clean money candidate (as defined in 
     section 501)'' after ``Senator''; and
       (B) by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) in the case of an election to the office of Senator 
     in which 1 or more candidates is a clean money candidate (as 
     defined in section 501), 10 percent of the amount of clean 
     money that a clean money candidate is eligible to receive for 
     the general election period.''.

     SEC. 204. PARTY INDEPENDENT EXPENDITURES AND COORDINATED 
                   EXPENDITURES.

       (a) Determination to Make Coordinated Expenditures.--
     Section 315(d) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(d)) is amended--
       (1) in paragraph (1)--
       (A) by 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)(A) Before a committee of a political party makes a 
     coordinated expenditure in connection with a general election 
     campaign for Federal office in excess of $5,000, the 
     committee shall file with the Commission a certification, 
     signed by the treasurer, that the committee has not made and 
     will not make any independent expenditures in connection with 
     that campaign for Federal office. A party committee that 
     determines to make a coordinated expenditure shall not make 
     any transfer 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.
       ``(B) 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 this 
     subsection 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 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.
       ``(C) For purposes of this paragraph, 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.
       ``(D) For purposes of subparagraph (A), any coordination 
     between a committee of a political party and a candidate of 
     the party after

[[Page S5799]]

     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.''.
       (b) Definitions.--
       (1) Amendment of definition of contribution.--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 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; and
       ``(vi) a payment made by a person if the person making the 
     payment retains the professional services of an 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 payment is for services of which the purpose is to 
     influence that candidate's election.
       ``(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) Definition of contribution in section 315(a)(7).--
     Section 315(a)(7) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(7)) is amended by striking paragraph 
     (B) and inserting the following:
       ``(B)(i) Except as provided in clause (ii), a payment made 
     in coordination with a candidate (as described in section 
     301(8)(A)(iii)) shall be considered to be a contribution to 
     the candidate, and, for the purposes of any provision of this 
     Act that imposes a limitation on the making of expenditures 
     by a candidate, shall be treated as an expenditure by the 
     candidate for purposes of this paragraph.
       ``(ii) In the case of a clean money candidate (as defined 
     in section 501), a payment made in coordination with a 
     candidate by a committee of a political party shall not be 
     treated as a contribution to the candidate for purposes of 
     section 503(b)(1) or an expenditure made by the candidate for 
     purposes of section 503(b)(2).''.
       (c) 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)(2)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure (as those terms are defined in 
     section 301) and also includes''.
                      TITLE III--VOTER INFORMATION

     SEC. 301. FREE BROADCAST TIME.

       Section 315 of the Communications Act of 1934 (47 U.S.C. 
     315) is amended--
       (1) in subsection (a), in the third sentence, by striking 
     ``within the meaning of this subsection'' and inserting 
     ``within the meaning of this subsection or 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) Amount of time.--A clean money candidate shall be 
     entitled to receive--
       ``(A) 30 minutes of free broadcast time during each of the 
     primary election period and the primary runoff election 
     period; and
       ``(B) 60 minutes of free broadcast time during the general 
     election period.
       ``(2) Time during which the broadcast is aired.--The 
     broadcast time under paragraph (1) shall be--
       ``(A) with respect to a television broadcast, the time 
     between 6:00 p.m. and 10:00 p.m. on any day that falls on 
     Monday through Friday; and
       ``(B) with respect to a radio broadcast, the time between 
     7:00 a.m. and 9:30 a.m. or between 4:30 p.m. and 7:00 p.m. on 
     any day that falls on Monday through Friday.
       ``(3) Maximum required of any station.--The amount of free 
     broadcast time that any 1 station is required to make 
     available to any 1 clean money candidate during each of the 
     primary election period, primary runoff election period, and 
     general election period shall not exceed 15 minutes.
       ``(4) Content of broadcast.--A broadcast under this 
     subsection shall be more than 30 seconds and less than 5 
     minutes in length.''; and
       (4) in subsection (d) (as redesignated by paragraph (1))--
       (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 by redesignating that paragraph as 
     paragraph (4);
       (C) by inserting after paragraph (1) the following:
       ``(2) the term `clean money candidate' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;
       ``(3) the term `general election period' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;''; and
       (D) by adding at the end the following:
       ``(5) the term `primary election period' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;
       ``(6) the term `private money candidate' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971; and
       ``(7) the term `primary runoff election period' has the 
     meaning given in section 501 of the Federal Election Campaign 
     Act of 1971.''.

     SEC. 302. 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 redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and adjusting the 
     margins accordingly;
       (2) by striking ``The charges'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     charges''; and
       (3) by adding at the end the following:
       ``(2) Clean money candidates.--In the case of a clean money 
     candidate, the charges for the use of a television 
     broadcasting station shall not exceed 50 percent of the 
     lowest charge described in paragraph (1)(A) during--
       ``(A) the 30 days preceding the date of a primary or 
     primary runoff election in which the candidate is opposed; 
     and
       ``(B) the 60 days preceding the date of a general or 
     special election in which the candidate is opposed.
       ``(3) Rate cards.--A licensee shall provide to a Senate 
     candidate a rate card that discloses--
       ``(A) the rate charged under this subsection; and
       ``(B) the method that the licensee uses to determine the 
     rate charged under this subsection.''.
       (b) Preemption.--Section 315 of the Communications Act of 
     1934 (47 U.S.C. 315) (as amended by section 301) is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (d) the following:
       ``(d) Preemption.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     licensee shall not preempt the use of a broadcasting station 
     by a legally qualified candidate for the United States Senate 
     who has purchased and paid for such use.
       ``(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.''.

     SEC. 303. CAMPAIGN ADVERTISEMENTS; ISSUE ADVERTISEMENTS.

       (a) Contents of Campaign Advertisements.--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;

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       ``(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: `________