[Congressional Record Volume 143, Number 125 (Thursday, September 18, 1997)]
[Senate]
[Pages S9637-S9659]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SPECTER:
  S. 1191. A bill to reform the financing of Federal elections, and for 
other purposes; to the Committee on Rules and Administration.


             THE SENATE CAMPAIGN FINANCE REFORM ACT OF 1997

  Mr. SPECTER. Mr. President, in seeking recognition, I am putting 
forward legislation on campaign finance reform which builds upon the 
experience of the Governmental Affairs Committee hearings, which are 
now in progress, on illegalities and improprieties of campaign finance 
reform. I have served on that committee for the past 8 months while we 
have conducted the investigation and the 6 weeks of hearings which we 
have had. The legislation which I am about to introduce builds on those 
hearings.
  At the outset, I compliment my colleagues, Senator John McCain and 
Senator Russ Feingold, for the work which they have done with the 
leadership. I have stated publicly that I applaud their efforts, but I 
disagree with a key provision of their bill, S. 25, which would give 
candidates free television advertising time. I have been advised that 
the McCain-Feingold bill may be modified as to that aspect.
  I have talked to my colleague, Senator McCain, today and had 
previously circulated my bill. Senator McCain advises he is interested 
in bringing the matter to the floor next week. We discussed the 
possibility of integrating the legislation or my adding amendments to 
his proposed bill.
  I have circulated this proposed legislation among a number of my 
colleagues on both sides of the aisle. I think there is an excellent 
chance we will have a number of cosponsors to this legislation. But I 
want to proceed now to make this brief statement on the substance of my 
legislation and to put the bill in so that our colleagues could 
consider this bill during the course of the next week before the matter 
comes to the Senate floor.
  My bill does six things.
  First, it eliminates ``soft money.'' We have seen an avalanche of 
soft money, into the hundreds of millions of dollars, influencing the 
1996 election.
  My bill, second, defines ``express advocacy'' to enforce the intent 
of the Federal election laws to prevent coordinated campaigns.
  What we have seen on both sides of the aisle from both Democrats and 
Republicans are advertisements in the 1996 election, by the Republicans 
extolling the virtues of Senator Dole and criticizing President 
Clinton, and vice versa for the Democrats, praising President Clinton 
and criticizing Senator Dole. But for some reason those advertisements 
have not been defined to be ``express advocacy.''
  The third provision of my bill would make ``independent 
expenditures'' truly independent by requiring affidavits from those who 
are involved in the process.
  My proposal would say that if someone is to make an independent 
expenditure, that person will have to file with the Federal Election 
Commission, swearing under oath under the penalties of perjury that the 
expenditure is truly independent.
  Then after that affidavit is filed with the FEC, the FEC will notify 
the candidate and the committee on behalf of whom the independent 
expenditure was made and require from that candidate and that committee 
an affidavit subject to the penalties of perjury that there is no 
coordination. My experience as prosecuting attorney has been that when 
people are compelled to take affidavits, they pay a lot more attention 
to what they are doing than some provision of the law which they might 
not know about, might not understand, or think has been disregarded. My 
sense is that as a general matter, not in all cases, but in many cases, 
these so-called independent expenditures are not independent at all.
  The fourth provision that I am proposing would be to try to deal with 
the Buckley versus Valeo decision that anyone may spend as much of his 
or her own money that he or she chooses.
  My bill incorporates the so-called Maine Standby Public Financing 
provision where, illustratively, if candidate A spends $10 million of 
his/her own money, then there would be public financing for the amount 
by which such expenditure exceeds the relevant spending cap.
  I am opposed to public financing generally, and opposed S. 2 which 
was introduced in this body years ago on that subject, because I think 
there ought not be public financing. But this ``standby'' provision I 
think would act principally to deter somebody from spending $10 million 
of their own money. The Government would put up money equal to the 
amount of the excess. I think that would deter somebody from spending 
the money knowing that their financial advantage would be matched. And 
to the extent that the expenditures would have to be made, I think that 
is worthwhile. It would stop people from buying seats in the U.S. 
Congress.
  The fifth provision would eliminate foreign transactions which funnel 
money into U.S. campaigns.
  Our Governmental Affairs investigation has shown what happened in the 
so-called Young brothers' transaction which went through the Republican 
National Committee and ended up placing foreign money in a political 
committee. This legislation would preclude that from happening again.

  The sixth and final provision would impose limitations and require 
reporting of contributions to the legal defense funds for Federal 
officeholders and candidates.
  The Governmental Affairs hearings have again shown, with the actions 
of Mr. Charlie Trie, hundreds of thousands of dollars came into the 
Clinton campaign for the legal defense fund. They were not reported. 
They were not identified. They were kept secret until after the 
election had occurred. And they are first cousins to campaign 
contributions. And this legislation would impose limitations and 
required reporting.
  Mr. President, this legislation is being introduced a little earlier 
than I had intended because I believe that we will have a number of 
cosponsors, Senators who are now considering the bill. But I thought it 
important to make this brief statement and to put the provisions of the 
bill into the Congressional Record so that Senators may have an 
opportunity to consider this proposal between now and next week when 
there may be an opportunity in one form or another to discuss campaign 
finance reform.
  As I say, with the modification that Senator McCain has apparently 
made taking out the provision requiring free television time, it may be 
possible to integrate these two bills or piecemeal amendments from my 
legislation into the McCain-Feingold bill. I had been unwilling to 
cosponsor that legislation because I think that constitutes a taking in 
violation of the provision against due process against taking without 
compensation.
  Six months of investigation and 5 weeks of hearings by the Senate 
Governmental Affairs Committee have confirmed my conclusion and the 
view of most Americans that campaign finance reform is necessary. 
Politics is awash in money--corrupting some, appearing to corrupt 
others, and making almost everyone in or out of the system uneasy about 
the way political campaigns are financed.
  I believe my colleagues Senator John McCain and Senator Russ Feingold 
have done an excellent job in providing leadership for campaign finance 
reform even though I disagree with the key provisions of their bill (S. 
25) which would give candidates free television advertising time. In my 
judgment, taking such property without compensation is confiscatory and 
unconstitutional.
  Our Government Affairs hearings have highlighted issues not covered 
by

[[Page S9638]]

the McCain-Feingold legislation and those hearings have suggested the 
need for other legislative reforms.
  My proposed legislation would: First, end ``soft money''; second, 
define ``express advocacy'' to enforce the intent of the Federal 
election laws to prevent coordinated campaigns; third, require 
affidavits to make ``independent expenditures'' truly independent; 
fourth, eliminate foreign transactions which funnel money into U.S. 
campaigns; fifth, deter massive spending of personal wealth by adapting 
a new ``standby public financing'' framework similar to one recently 
enacted by Maine; and sixth, impose limitations and require reporting 
of contributions to legal defense funds for federal office- holders and 
candidates.


                               soft money

  The factual need for reform of the soft-money rules has been well 
documented. Public funding of Presidential campaigns was intended to 
eliminate collateral contributions. But soft money for so-called issue 
advocacy has created a gaping loophole that permits spending without 
limit. An estimated $223 million of soft money was raised by both 
parties in 1996. According to Congressional Quarterly, that figure 
represents almost 3 times what was raised as soft money in 1992 and 
more than 11 times that raised in 1980.
  While many have focused on the allegedly corrupting influence of 
political action committees, PAC's pale in comparison to soft money. 
For example, Congressional Quarterly has also reported that Enron Corp. 
gave $44,000 less through its political action committee in 1996 than 
it did in 1994, but the firm quintupled its soft money contributions to 
$627,400.
  Soft money flows not only from individuals, but also from 
corporations and labor unions, which are expressly prohibited from 
giving directly to candidates. Archer Daniels Midland donated a total 
of $380,000 to the Democratic and Republican National Committees during 
the recent election cycle. Phillip Morris, the Nation's leading tobacco 
company, donated a total of more than $2.7 million to the two parties 
in 1995 and 1996, with $2.1 million going to the Republican Party.
  In the first half of 1997, Common Cause reports that the tobacco 
companies gave $1.9 million to Republican and Democratic committees, at 
a time when Congress and the President have begun consideration of the 
tobacco litigation settlement. In 1996, telecommunications companies 
reportedly donated $14.5 million in soft money; twice as much as they 
did in 1992. In short, both parties have emerged as the vehicles for 
evading post-Watergate contribution limits, and neither will disarm 
unilaterally.
  Currently, there is a $20,000 cap on the amount that any individual 
can give to the national committee of a political party in any 1 year. 
In order to circumvent this limit, some individuals contribute to the 
non-Federal accounts of political parties which are not subject to any 
caps. These funds are then often spent on behalf of the party's 
candidate in a Federal election.
  To close this loophole the bill:
  Maintains the $20,000 a year cap which would apply to the total 
amount individuals can contribute to political parties, whether at the 
national, State or local level, for use in Federal elections.
  Prohibits the national committees of political parties from 
soliciting or receiving any contributions not subject to the provisions 
and caps of the Federal Election Campaign Act.
  Provides that State party committee expenditures that may influence 
the outcome of a Federal election may be made only from funds subject 
to the limitations and prohibitions imposed by Federal law.
  Expands the reporting requirements so that all national committees, 
including all congressional and Senate campaign committees, must report 
all receipts and disbursements, whether or not in connection with a 
Federal election.
  These restrictions on soft money contributions to parties are 
constitutional and consistent with the reasoning applied by the Supreme 
Court in Buckley. The logic of Buckley and its progeny permits Congress 
to cap campaign contributions when necessary to avoid the impropriety 
and the appearance of impropriety caused by large gifts. In Buckley the 
Supreme Court struck down certain caps on campaign expenditures that 
were originally included in the Federal Election Campaign Act [FECA]. 
At the same time, however, Buckley upheld a number of FECA's caps on 
campaign contributions, including the $1,000 cap in the amount that 
individuals can contribute to candidates, the $5,000 cap on the amount 
that individuals can contribute to political action committees, and the 
$20,000 cap on the amount that individuals can contribute to national 
committees of political parties. Buckley also upheld FECA's $25,000 cap 
on the total amount an individual can contribute to campaigns, PAC's 
and national committees in any 1 year. This bill extends the scope of 
these permitted caps to cover contributions to the State and local 
committees of political parties for use in Federal campaigns.
  The concept of proposing further caps on contributions to political 
parties was endorsed by the Supreme Court in its decision in Colorado 
Republican Federal Campaign Committee versus Federal Election 
Commission. In that case, the Court ruled that the sections of FECA 
that limited the amount of independent expenditures that could be made 
by a political party were unconstitutional. In reaching this 
conclusion, however, the Court approved limiting individual 
contributions to political parties:

       The greatest danger of corruption . . . appears to be from 
     the ability of donors to give sums up to $20,000 to a party 
     which may be used for independent party expenditures for the 
     benefit of a particular candidate. We could understand how 
     Congress, were it to conclude that the potential for evasion 
     of the individual contribution limits was a serious matter, 
     might decide to change the statute's limitations on 
     contributions to political parties. [Emphasis added]

  The potential for evasion of the contribution limits clearly does 
exist, and the fact of evasion of these limits clearly does exist. It 
is indeed time that Congress changes FECA's limitations on 
contributions to political parties.


                       express and issue advocacy

  In the 1996 Presidential elections, the line was blurred beyond 
recognition between party and candidate activities. There is 
substantial evidence that soft money was spent illegally during the 
1996 campaign by both parties. According to a November 18, 1996, 
article in Time magazine, President Clinton's media strategists 
collaborated in the creation of a DNC television commercials. The 
article describes a cadre of Clinton-Gore advisors, including Dick 
Morris, working side by side with DNC operatives to craft the DNC 
advertisement which extolled the President's accomplishments and 
criticized Republican policies. Republicans did the same.
  Such cooperation constitutes violation of the Federal Election 
Campaign Act [FECA] which provides:

       Expenditures made by any person in cooperation, 
     consultation, or concert, with, or at the request or 
     suggestion of, a candidate, his authorized political 
     committees, or their agents, shall be considered to be a 
     contribution to such candidate. 2 U.S.C. 441a(a)(7)(B)(1)

  Thus, if the alleged cooperation between the Clinton/Gore campaign 
and the DNC took place, then all of the money spent on those DNC 
advertisements constituted contributions to the Clinton campaign. Under 
FECA, such contributions would have to be reported upon receipt and 
would have to be included when calculating the campaign's compliance 
with FECA's strict contribution and expenditure limits. The failure to 
treat the expenditures as contributions would be a violation of FECA, 
and the knowing and willful failure to treat the expenditures as 
contributions would be a criminal violation of FECA.
  There are indications that the Clinton/Gore campaign advisors did 
realize they were violating the law at the time. The Time article 
quotes one as saying, ``If the Republicans keep the Senate, they're 
going to subpoena us.''
  The content of the DNC and RNC advertisements appears to have 
violated Federal election law. When an entity engages in issues 
advocacy to promote a particular policy, it is exempt from the 
limitation of FECA and can fund these activities from any source. When 
an entity engages in express advocacy on behalf of a particular 
candidate, it is subject to the limitations of FECA and is not 
permitted to fund such activities with soft money. Where the

[[Page S9639]]

DNC and RNC advertisements did contain express advocacy, and funded 
these advertisements with soft money, then these committees violated 
FECA.
  The FEC defines ``express advocacy'' as follows:

       Communications using phrases such as ``vote for 
     President,'' ``reelect your Congressman,'' ``Smith for 
     Congress,'' or language which, when taken as a whole and with 
     limited reference to external events, can have no other 
     reasonable meaning than to urge the election or defeat of a 
     clearly identified federal candidate. 11 CFR 100.22

  In my judgment, both the DNC and RNC television advertisement crossed 
the line from issues advocacy to express advocacy. While the DNC and 
RNC ads did not use the words ``Vote for Clinton'' or ``Dole for 
President,'' these advertisements certainly urged the election of one 
candidate and the defeat of another. For example, the following is the 
script of a widely broadcast DNC television commercial:

       American values. Do our duty to our parents. President 
     Clinton protects Medicare. The Dole/Gingrich budget tried to 
     cut Medicare $270 billion. Protect families. President 
     Clinton cut taxes for millions of working families. The Dole/
     Gingrich budget tried to raise taxes on eight million of 
     them. Opportunity. President Clinton proposes tax breaks for 
     tuition. The Dole/Gingrich budget tried to slash college 
     scholarships. Only President Clinton's plan meets our 
     challenges, protects our values.

  Does this advertisement convey any core message other than urging us 
to vote for President Clinton?
  The RNC ads similarly crossed the line into express advocacy. The 
following is the script of a widely broadcast RNC television 
commercial:

       (Announcer) Compare the Clinton rhetoric with the Clinton 
     record.
       (Clinton) ``We need to end welfare as we know it.''
       (Announcer) But he vetoed welfare reform not once, but 
     twice. He vetoed work requirements for the able-bodied. He 
     vetoed putting time limits on welfare. And Clinton still 
     supports giving welfare benefits to illegal immigrants. The 
     Clinton rhetoric hasn't matched the Clinton record.
       (Clinton) ``Fool me once, shame on you. Fool me twice, 
     shame on me.''
       (Announcer) Tell President Clinton you won't be fooled 
     again.

  Similarly, the Democrats, through their shared use of campaign 
consultants such as Dick Morris for Clinton-Gore 1996 and the 
Democratic National Committee, crossed the line into illegal 
contributions on television advertisements.
  There has been substantial information in the public domain about the 
President's personal activities in preparing television commercials for 
the 1996 campaign. The activity of the President has been documented in 
a book by Dick Morris and in public statements by former Chief of 
Staff, Leon Panetta. There is no doubt--and the Attorney General 
conceded this in oversight hearings by the Judiciary Committee on April 
30, 1997--that there would be a violation of the Federal election law 
if, and when the President prepared campaign commercials that were 
express advocacy commercials contrasted with issue advocacy 
commercials.
  This bill will end the charade by providing a clear-cut statutory 
definition of express advocacy wherever the name or likeness of a 
candidate appears with language which praises or criticizes that 
candidate.


                        independent expenditures

  This bill would put teeth into the law to make independent 
expenditures truly independent. Current law requires political 
committees or individuals to file reports quarterly until the end of a 
campaign and to report expenditures of more than $1,000 within 24 hours 
during the final 20 days of the campaign. This legislation would 
require reporting for independent expenditures of $10,000 or more 
within 24 hours during the last 3 months of a campaign. This bill would 
require the individual making the independent expenditure or the 
treasurer of the committee making the independent expenditure to take 
and file an affidavit with the FEC that the expenditures were not 
coordinated with the candidate or his-her committee. Then, the Federal 
Election Commission would notify within 48 hours the candidate, 
campaign treasurer, and campaign manager of that independent 
expenditure. Those individuals would then have 48 hours to take and 
file affidavits with the FEC that the expenditures were not coordinated 
with the candidate or his/her committees.
  Taking such affidavits coupled with the penalty for perjury would be 
significant steps to preclude illegal coordination.


                 clamping down on foreign contributions

  Anyone who has watched the Governmental Affairs hearings knows the 
alarming role of illegal foreign contributions in our 1996 campaigns. 
This legislation would strengthen the existing law to better prevent 
transactions which effectively fund domestic political campaigns with 
foreign financing schemes.
  Under current law, it is illegal for a foreign national to contribute 
money or anything of value, including loan guarantees, either directly 
or indirectly through another person, in connection with an election to 
any political office. Knowing and willful violations can result in 
criminal penalties against the offending parties.
  Mr. Haley Barbour's recent testimony before the Governmental Affairs 
Committee highlights the need to strengthen and more actively enforce 
the foreign money statute to ensure that foreign nationals do not 
circumvent this intended prohibition on foreign political 
contributions. This bill would clarify the law to cover all 
arrangements from foreign entities through third parties where funds 
from these transactions ultimately reach a U.S. political party or 
candidate.
  In his testimony, Mr. Barbour acknowledged that the National Policy 
Forum [NPF], which he headed, received a $2.1 million loan guarantee in 
October 1994, from Young Brothers Development, the U.S. subsidiary of a 
Hong Kong company which provided the money. The loan guarantee served 
as collateral for a loan NPF received from a U.S. bank. Shortly 
thereafter, NPF sent two checks totaling $1.6 million to the Republican 
National Committee [RNC]. NPF ultimately defaulted on its loan with the 
U.S. bank and Young Brothers eventually ended up paying approximately 
$700,000 to cover the default.

  The weak link in the existing law is that many people, including 
Attorney General Reno, have argued that the Federal campaign finance 
law does not apply to soft money. Accordingly, there are those who 
would argue that the NPF transaction described above would be legal so 
long as only soft money was involved. We need to make it 100 percent 
clear that foreign nationals cannot contribute to U.S. political 
parties or candidates under any circumstances. My bill closes this 
potential loophole by explicitly stating that the foreign money 
provisions of the bill apply to all foreign contributions and 
donations, both soft and hard money.


                    LIMITING INDIVIDUAL EXPENDITURES

  The decision of the Supreme Court of the United States in Buckley 
versus Valeo prohibits legislation limiting the amount of money an 
individual may spend on his-her campaign. Maine recently enacted a 
statute designed to deal with this issue which provides a model for 
Federal legislation.
  Under the Maine legislation, a voluntary cap is placed on the total 
amount that candidates can spend during their campaigns for public 
office. The law further provides that if one candidate exceeds the 
spending limit, an opponent who has complied with the limit will be 
given public matching funds in an amount equal to the amount by which 
the offending candidate exceeded the spending limit. With such matching 
funds available, it would be a real deterrent to prevent a candidate 
from exceeding the expenditure cap since that candidate would no longer 
receive an advantage from his or her additional expenditure. This 
provision would probably not result in significant public expenditures; 
and to the extent it did, it would be worth it.


                           LEGAL DEFENSE FUND

  This bill would subject contributions for legal defense funds to 
limits and mandatory disclosure for all Federal office holders and 
candidates. Testimony before the Governmental Affairs Committee 
disclosed that Mr. Yah Lin ``Charlie'' Trie brought in $639,000 for 
President Clinton's legal defense fund. While those funds were 
ultimately returned, there was never any identification of the donors 
and the fact of those contributions was delayed until after the 1996 
election.
  Contributions to legal defense funds pose a public policy issue 
similar to campaign contributions.
  This bill would impose the same limits on contributions to legal 
defense

[[Page S9640]]

funds which are currently required for political contributions with 
jurisdiction for such reporting being vested in the Federal Election 
Commission.
  So at this time, Mr. President, I urge my colleagues to take a look 
at the legislation. I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1191

       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 ``Senate 
     Campaign Finance Reform Act of 1997''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. Senate election spending limits and benefits.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

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

Sec. 201. Soft money of political party committees.
Sec. 202. State party grassroots funds.
Sec. 203. Reporting requirements.

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

Sec. 211. Soft money of persons other than political parties.

                       Subtitle C--Contributions

Sec. 221. Prohibition of contributions to Federal candidates and of 
              donations of anything of value to political parties by 
              foreign nationals.
Sec. 222. Closing of soft money loophole.
Sec. 223. Contribution to defray legal expenses of certain officials.

                  Subtitle D--Independent Expenditures

Sec. 231. Clarification of definitions relating to independent 
              expenditures.
Sec. 232. Reporting requirements for independent expenditures.

                       TITLE III--APPROPRIATIONS

Sec. 301. Authorization of appropriations.

  TITLE IV--SEVERABILITY; JUDICIAL REVIEW; EFFECTIVE DATE; REGULATIONS

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

     SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

       (a) In General.--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--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

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

       ``(a) In General.--For purposes of this title, a candidate 
     is an eligible Senate candidate if the candidate--
       ``(1) meets the primary and general election filing 
     requirements of subsections (c) and (d);
       ``(2) meets the primary and runoff election expenditure 
     limits of subsection (b); and
       ``(3) meets the threshold contribution requirements of 
     subsection (e).
       ``(b) Primary and Runoff Expenditure Limits.--The 
     requirements of this subsection are met if--
       ``(1) the candidate and the candidate's authorized 
     committees did not make expenditures for the primary election 
     in excess of 67 percent of the general election expenditure 
     limit under section 502(a); and
       ``(2) the candidate and the candidate's authorized 
     committees did not make expenditures for any runoff election 
     in excess of 20 percent of the general election expenditure 
     limit under section 502(a).
       ``(c) Primary Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files with the Commission a 
     certification that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) will meet the primary and runoff election expenditure 
     limits of subsection (b); and
       ``(ii) will accept only an amount of contributions for the 
     primary and runoff elections that does exceed those limits; 
     and
       ``(B) the candidate and the candidate's authorized 
     committees will meet the general election expenditure limit 
     under section 502(a).
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than the date 
     the candidate files as a candidate for the primary election.
       ``(d) General Election Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files a certification with the 
     Commission under penalty of perjury that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) met the primary and runoff election expenditure 
     limits under subsection (b); and
       ``(ii) did not accept contributions for the primary or 
     runoff election in excess of the primary or runoff 
     expenditure limit under subsection (b), whichever is 
     applicable, reduced by any amounts transferred to the current 
     election cycle from a preceding election cycle;
       ``(B) at least one other candidate has qualified for the 
     same general election ballot under the law of the candidate's 
     State; and
       ``(C) the candidate and the authorized committees of the 
     candidate--
       ``(i) except as otherwise provided by this title, will not 
     make expenditures that exceed the general election 
     expenditure limit under section 502(a);
       ``(ii) will not accept any contributions in violation of 
     section 315; and
       ``(iii) except as otherwise provided by this title, will 
     not accept any contribution for the general election involved 
     to the extent that the contribution would cause the aggregate 
     amount of contributions to exceed the sum of the amount of 
     the general election expenditure limit under section 502(a), 
     reduced by any amounts transferred to the current election 
     cycle from a previous election cycle and not taken into 
     account under subparagraph (A)(ii).
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than 7 days 
     after the earlier of--
       ``(A) the date on which the candidate qualifies for the 
     general election ballot under State law; or
       ``(B) if under State law, a primary or runoff election to 
     qualify for the general election ballot occurs after 
     September 1, the date on which the candidate wins the primary 
     or runoff election.
       ``(e) Threshold Contribution Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate and the candidate's authorized 
     committees have received allowable contributions during the 
     applicable period in an amount at least equal to the lesser 
     of--
       ``(A) 10 percent of the general election expenditure limit 
     under section 502(a); or
       ``(B) $250,000.
       ``(2) 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--
       ``(i) the period beginning on January 1 of the calendar 
     year preceding the calendar year of the general election 
     involved and ending on the date on which the certification 
     under subsection (c)(2) is filed by the candidate; or
       ``(ii) in the case of a special election for the office of 
     Senator, the period beginning on the date on which the 
     vacancy in the office occurs and ending on the date of the 
     general election.

     ``SEC. 502. LIMITATION ON EXPENDITURES.

       ``(a) General Election Expenditure Limit.--
       ``(1) In general.--The aggregate amount of expenditures for 
     a general election by an eligible Senate candidate and the 
     candidate's authorized committees shall not exceed the 
     greater of--
       ``(A) $950,000; or
       ``(B) $400,000; plus
       ``(i) 30 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(ii) 25 cents multiplied by the voting age population in 
     excess of 4,000,000.
       ``(2) Indexing.--The amounts determined under paragraph (1) 
     shall be increased as of the beginning of each calendar year 
     based on the increase in the price index determined under 
     section 315(c), except that the base period shall be calendar 
     year 1997.
       ``(b) Payment of Taxes.--The limitation under subsection 
     (a) shall not apply to any expenditure for Federal, State, or 
     local taxes with respect to earnings on contributions raised.

     ``SEC. 503. MATCHING FUNDS FOR ELIGIBLE SENATE CANDIDATES IN 
                   RESPONSE TO EXPENDITURES BY NON-ELIGIBLE 
                   OPPONENTS.

       ``(a) In General.--Not later than 5 days after the 
     Commission determines that a Senate candidate has made or 
     obligated to make expenditures or accepted contributions 
     during an election in an aggregate amount in excess of the 
     applicable election expenditure limit under section 502(a) or 
     501(b), the Commission shall make available to an eligible 
     Senate candidate in the same election an aggregate amount of 
     funds equal to the amount in excess of the applicable limit.
       ``(b) Eligible Senate Candidate Opposed by More Than 1 Non-
     Eligible Senate Candidate.--For purposes of subsection (a), 
     if an eligible Senate candidate is opposed by more than 1 
     non-eligible Senate candidate in the same election, the 
     Commission shall take into account only the amount of 
     expenditures of the non-eligible Senate candidate that 
     expends, in the aggregate, the greatest amount of funds.
       ``(c) Time to Make Determinations.--The Commission may, on 
     the request of a candidate or on its own initiative, make a 
     determination whether a candidate has made or obligated to 
     make an aggregate amount of expenditures in excess of the 
     applicable limit under subsection (a).
       ``(d) Use of Funds.--Funds made available to a candidate 
     under subsection (a) shall be used in the same manner as 
     contributions are used.

[[Page S9641]]

       ``(e) Treatment of Funds.--An expenditure made with funds 
     made available to a candidate under this section shall not be 
     treated as an expenditure for purposes of the expenditure 
     limits under sections 501(b) and 502(a).

     ``SEC. 504. CERTIFICATION BY COMMISSION.

       ``(a) In General.--Not later than 48 hours after an 
     eligible candidate qualifies for a general election ballot, 
     the Commission shall certify the candidate's eligibility for 
     matching funds under section 503.
       ``(b) Determinations by Commission.--A determination 
     (including a certification under subsection (a)) made by the 
     Commission under this title shall be final, except to the 
     extent that the determination is subject to examination and 
     audit by the Commission under section 505.

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

       ``(a) Revocation of Status.--If the Commission determines 
     that any eligible Senate candidate has received contributions 
     or made or obligated to make expenditures in excess of--
       ``(1) the applicable primary election expenditure limit 
     under this title; or
       ``(2) the applicable general election expenditure limit 
     under this title,
     the Commission shall revoke the certification of the 
     candidate as an eligible Senate candidate and notify the 
     candidate of the revocation.
       ``(b) Misuse of Benefits.--If the Commission determines 
     that any benefit made available to an eligible Senate 
     candidate under this title was not used as provided for in 
     this title or that a candidate has violated any of the 
     spending limits contained in this Act, the Commission shall 
     notify the candidate, and the candidate shall pay the 
     Commission an amount equal to the value of the benefit.''.
       (b) Transition Period.--Expenditures made before January 1, 
     1998, shall not be counted as expenditures for purposes of 
     the limitations contained in the amendment made by subsection 
     (a).
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE
   Subtitle A--Provisions Relating to Soft Money of Political Party 
                               Committees

     SEC. 201. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 301 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 324. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

       ``(a) National Committees.--A national committee of a 
     political party (including a national congressional campaign 
     committee of a political party, an entity that is 
     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 paragraphs (1) and (2) of section 315(a); 
     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. 202. STATE PARTY GRASSROOTS FUNDS.

       (a) Individual Contributions.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     (as amended by section 105) is amended--
       (1) in subparagraph (C) by striking ``or'' at the end;
       (2) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (3) by inserting after subparagraph (C) the following:
       ``(D) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $20,000;
       ``(ii) any other political committee established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $5,000;

     except that the aggregate contributions described in this 
     subparagraph that may be made by a person to the State Party 
     Grassroots Fund and all committees of a State Committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Multicandidate Committee Contributions to State 
     Party.--Section 315(a)(2) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 441a(a)(2)) is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following:
       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which in the aggregate, exceed $15,000;
       ``(ii) to any other political committee established and 
     maintained by a State committee of a political party which, 
     in the aggregate, exceed $5,000;

     except that the aggregate contributions described in this 
     subparagraph that may be made by a multicandidate political 
     committee to the State Party Grassroots Fund and all 
     committees of a State Committee of a political party in any 
     State in any calendar year shall not exceed $15,000; or''.
       (c) Overall Limit.--
       (1) In general.--Section 315(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by 
     striking paragraph (3) and inserting the following:
       ``(3) Overall 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.''.

[[Page S9642]]

       (2) Definition.--Section 301 of the Federal Election 
     Campaign Act of 1971 (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 the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 301 et seq.) (as amended by section 
     201) 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(f) 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 
     paragraphs (1)(A) and (2)(A) of section 315(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 the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) (as amended by subsection 
     (c)(2)) is amended by adding at the end the following:
       ``(21) State party grassroots fund.--The term `State Party 
     Grassroots Fund' means a separate segregated fund established 
     and maintained by a State committee of a political party 
     solely for the purpose of making expenditures and other 
     disbursements described in section 325(a).''.

     SEC. 203. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 232) is amended by adding at the end the following:
       ``(f) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any congressional 
     campaign committee of a political party, and any subordinate 
     committee of either, shall report all receipts and 
     disbursements during the reporting period, whether or not in 
     connection with an election for Federal office.
       ``(2) Other political committees to which section 325 
     applies.--A political committee (not described in paragraph 
     (1)) to which section 325(b)(1) applies shall report all 
     receipts and disbursements.
       ``(3) Other political committees.--Any political committee 
     to which paragraph (1) or (2) does not apply shall report any 
     receipts or disbursements that are used in connection with a 
     Federal election.
       ``(4) Transfers to State committees.--Any political 
     committee shall include in its report under paragraph (1) or 
     (2) the amount of any contribution received by a national 
     committee which is to be transferred to a State committee for 
     use directly (or primarily to support) activities described 
     in section 325(b)(2) and shall itemize such amounts to the 
     extent required by subsection (b)(3)(A).
       ``(5) Itemization.--If a political committee has receipts 
     or disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for such person in the same manner as required in 
     paragraph (3)(A), (5), or (6) of subsection (b).
       ``(6) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods required for political committees under subsection 
     (a).''.
       (b) Report of Exempt Contributions.--Section 301(8) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)) is 
     amended by adding 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 the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as 
     amended by subsection (a)) is amended by adding at the end 
     the following:
       ``(g) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines such reports contain substantially 
     the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
     is amended--
       (A) by striking ``within the calendar year''; and
       (B) by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.
     Subtitle B--Soft Money of Persons Other Than Political Parties

     SEC. 211. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 203) is amended by adding 
     at the end the following:
       ``(h) Election Activity of Persons Other Than Political 
     Parties.--
       ``(1) In general.--A person other than a committee of a 
     political party that makes aggregate disbursements totaling 
     in excess of $10,000 for activities described in paragraph 
     (2) shall file a statement with the Commission--
       ``(A) within 48 hours after the disbursements are made; or
       ``(B) in the case of disbursements that are made within 20 
     days of an election, within 24 hours after the disbursements 
     are made.
       ``(2) Activity.--The activity described in this paragraph 
     is--
       ``(A) any activity described in section 315(b)(2)(A) that 
     refers to any candidate for Federal office, any political 
     party, or any Federal election; and
       ``(B) any activity described in subparagraph (B) or (C) of 
     section 315(b)(2).
       ``(3) Additional statements.--An additional statement shall 
     be filed each time additional disbursements aggregating 
     $10,000 are made by a person described in paragraph (1).
       ``(4) Applicability.--This subsection does not apply to--
       ``(A) a candidate or a candidate's authorized committees; 
     or
       ``(B) an independent expenditure.
       ``(5) Contents.--A statement under this section shall 
     contain such information about the disbursements as the 
     Commission shall prescribe, including--
       ``(A) the name and address of the person or entity to whom 
     the disbursement was made;
       ``(B) the amount and purpose of the disbursement; and
       ``(C) if applicable, whether the disbursement was in 
     support of, or in opposition to, a candidate or a political 
     party, and the name of the candidate or the political 
     party.''.
                       Subtitle C--Contributions

     SEC. 221. PROHIBITION OF CONTRIBUTIONS TO FEDERAL CANDIDATES 
                   AND OF DONATIONS OF ANYTHING OF VALUE TO 
                   POLITICAL PARTIES BY FOREIGN NATIONALS.

       Section 319 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441e) is amended--
       (1) by striking the heading and inserting ``prohibition of 
     contributions to candidates and donations of anything of 
     value to political parties by foreign nationals''; and
       (2) in subsection (a)--
       (A) by inserting ``or to make a donation of money or any 
     other thing of value to a political committee of a political 
     party'' after ``office''; and

[[Page S9643]]

       (B) by inserting ``or donation'' after ``contribution'' the 
     second place it appears.

     SEC. 222. CLOSING OF SOFT MONEY LOOPHOLE.

       Section 315(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(3)) is amended by striking 
     ``contributions'' and inserting ``contributions (as defined 
     in section 301) to a candidate or donations (including a 
     contribution as defined in section 301) to political 
     committees''.

     SEC. 223. CONTRIBUTIONS TO DEFRAY LEGAL EXPENSES OF CERTAIN 
                   OFFICIALS.

       (a) Contributions to Defray Legal Expenses.--
       (1) Prohibition on making of contributions.--It shall be 
     unlawful for any person to make a contribution to a candidate 
     for nomination to, or election to, a Federal office (as 
     defined in section 301(3) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431(3))), an individual who is a holder 
     of a Federal office, or any head of an Executive department, 
     or any entity established on behalf of such individual, to 
     defray legal expenses of such individual--
       (1) to the extent it would result in the aggregate amount 
     of such contributions from such person to or on behalf of 
     such individual to exceed $10,000 for any calendar year; or
       (2) if the person is--
       (A) a foreign national (as defined in section 319(b) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441e(b)); or
       (B) a person prohibited from contributing to the campaign 
     of a candidate under section 316 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b).
       (2) Prohibition on acceptance of contributions.--No person 
     shall accept a contribution if the contribution would violate 
     paragraph (1).
       (3) Penalty.--A person that knowingly and willfully commits 
     a violation of paragraph (1) or (2) shall be fined an amount 
     not to exceed the greater of $25,000 or 300 percent of the 
     contribution involved in such violation, imprisoned for not 
     more than 1 year, or both.
       (4) Construction of prohibition.--Nothing in this section 
     shall be construed to permit the making of a contribution 
     that is otherwise prohibited by law.
       (b) Reporting Requirements.--A candidate for nomination to, 
     or election to, a Federal office, an individual who is a 
     holder of a Federal office, or any head of an Executive 
     department, or any entity established on behalf of such 
     individual, that accepts contributions to defray legal 
     expenses of such individual shall file a quarterly report 
     with the Federal Election Commission including the following 
     information:
       (1) The name and address of each contributor who makes a 
     contribution in excess of $25.
       (2) The amount of each contribution.
       (3) The name and address of each individual or entity 
     receiving disbursements from the fund.
       (4) A brief description of the nature and amount of each 
     disbursement.
       (5) The name and address of any provider of pro bono 
     services to the fund.
       (6) The fair market value of any pro bono services provided 
     to the fund.
                  Subtitle D--Independent Expenditures

     SEC. 231. CLARIFICATION OF DEFINITIONS RELATING TO 
                   INDEPENDENT EXPENDITURES.

       Section 301 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431) is amended by striking paragraphs (17) and (18) 
     and inserting the following:
       ``(17) Independent expenditure.--The term `independent 
     expenditure' means an expenditure that--
       ``(A) contains express advocacy; and
       ``(B) is made without cooperation or consultation with any 
     candidate, or any authorized committee or agent of such 
     candidate, and which is not made in concert with, or at the 
     request or suggestion of, any candidate, or any authorized 
     committee or agent of such candidate.
       ``(18) Express advocacy.--
       ``(A) In general.--The term `express advocacy' means a 
     communication that, taken as a whole and with limited 
     reference to external events, makes positive statements about 
     or negative statements about or makes an expression of 
     support for or opposition to a specific candidate, a specific 
     group of candidates, or candidates of a particular political 
     party.
       ``(B) Expression of support for or opposition to.--In 
     subparagraph (A), the term `expression of support for or 
     opposition to' includes a suggestion to take action with 
     respect to an election, such as to vote for or against, make 
     contributions to, or participate in campaign activity, or to 
     refrain from taking action.
       ``(C) Voting records.--The term `express advocacy' does not 
     include the publication and distribution of a communication 
     that is limited to providing information about votes by 
     elected officials on legislative matters and that does not 
     expressly advocate the election or defeat of a clearly 
     identified candidate.''.

     SEC. 232. REPORTING REQUIREMENTS FOR INDEPENDENT 
                   EXPENDITURES.

       (a) Time for Reporting Certain Expenditures.--Section 
     304(c) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     434(c)) is amended--
       (1) in paragraph (2), by striking the undesignated matter 
     after subparagraph (C);
       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by inserting after paragraph (2), as amended by 
     paragraph (1), the following:
       ``(d) Time for Reporting Certain Expenditures.--
       ``(1) Expenditures aggregating $1,000.--
       ``(A) Initial report.--A person that makes or obligates to 
     make independent expenditures aggregating $1,000 or more 
     after the 20th day, but more than 24 hours, before an 
     election shall file a report describing the expenditures 
     within 24 hours after that amount of independent expenditures 
     has been made or obligated to be made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person filing the report shall 
     file an additional report each time that independent 
     expenditures are made or obligated to be made aggregating an 
     additional $1,000 with respect to the same election as that 
     to which the initial report relates.
       ``(2) Expenditures aggregating $10,000.--
       ``(A) Initial report.--A person that makes or obligates to 
     make independent expenditures aggregating $10,000 or more 
     after the 90th day and up to and including the 20th day 
     before an election shall file a report describing the 
     expenditures within 24 hours after that amount of independent 
     expenditures has been made or obligated to be made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person filing the report shall 
     file an additional report each time that independent 
     expenditures are made or obligated to be made aggregating an 
     additional $10,000 with respect to the same election as that 
     to which the initial report relates.
       ``(3) Contents of Report.--A report under this subsection--
       ``(A) shall be filed with the Commission;
       ``(B) shall contain the information required by subsection 
     (c).''.
       (b) Affidavit Requirement.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     subsection (a)) is amended--
       (1) in subsection (c)(2)(B), by inserting ``(in the case of 
     a committee, by both the chief executive officer and the 
     treasurer of the committee)'' after ``certification''; and
       (2) by adding at the end the following:
       ``(e) Certification Requirements.--
       ``(1) Commission.--Not later than 48 hours after receipt of 
     a certification under subsection (c)(2)(B), the Commission 
     shall notify the candidate to which the independent 
     expenditure refers and the candidate's campaign manager and 
     campaign treasurer that an expenditure has been made and a 
     certification has been received.
       ``(2) Candidate.--Not later than 48 hours after receipt of 
     notification under paragraph (1), the candidate and the 
     candidate's campaign manager and campaign treasurer shall 
     each file with the Commission a certification, under penalty 
     of perjury, stating whether or not the independent 
     expenditure was made in cooperation, consultation, or 
     concert, with, or at the request or suggestion of, the 
     candidate or authorized committee or agent of such 
     candidate.''.
                       TITLE III--APPROPRIATIONS

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       The Federal Election Campaign Act of 1971 is amended--
       (1) by striking section 314 (2 U.S.C. 439c) and inserting 
     the following:

     ``SEC. 314. [REPEALED].'';

     and
       (2) by inserting after section 407 the following:

     ``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     Act and chapters 95 and 96 of the Internal Revenue Code of 
     1986 such sums as are necessary.''.
  TITLE IV--SEVERABILITY; JUDICIAL REVIEW; EFFECTIVE DATE; REGULATIONS

     SEC. 401. SEVERABILITY.

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

     SEC. 402. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.

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

     SEC. 403. EFFECTIVE DATE.

       Except as otherwise provided in this Act, the amendments 
     made by, and the provisions of, this Act shall take effect on 
     January 1, 1998.

     SEC. 404. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out this Act not later than 9 
     months after the effective date of this Act.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Kerry and Mr. Kennedy):
  S. 1192. A bill to limit the size of vessels permitted to fish for 
Atlantic mackerel or herring, to the size permitted under the 
appropriate fishery

[[Page S9644]]

management plan; to the Committee on Commerce, Science, and 
Transportation.


         THE NORTH ATLANTIC FISHERIES RESOURCE CONSERVATION ACT

  Ms. SNOWE. Mr. President, in keeping with the old adage that those 
who do not know history are doomed to repeat it, I am introducing a 
bill today with Senator Kerry which is designed to avoid repeating the 
mistakes of the past in fisheries management.
  Most of the major commercial fisheries in both the United States and 
the world are either fully exploited or overexploited. In many 
instances, these fisheries have approached or reached an overfished 
condition because the fishing fleets which targeted them became 
overcapitalized before the management system in place could respond 
effectively to this excess fishing capacity. As a result, we find 
ourselves today faced with case after case of having to make wrenching 
management decisions to reduce fishing effort that have substantial 
socioeconomic impacts on coastal communities that depend on fishing for 
their livelihoods.
  In the cases of Atlantic herring and Atlantic mackerel, however, we 
still have time. Through torturous but ultimately fortunate historical 
circumstances, the offshore stocks of these fisheries remain, at least 
according to the best information presently available, fairly abundant. 
And because of their relative abundance, these fisheries have attracted 
increasing attention from fishermen in the Northeast and the mid-
Atlantic, many of whom have been displaced from the now-depleted New 
England groundfish fishery.
  Earlier this year, however, a dramatic new proposal came to light 
which could alter the planned course of sustainable development for 
these fisheries. A United States-Dutch group intends to bring a 369 
foot factory trawler into the Atlantic herring and mackerel fisheries 
by the spring of 1998. This vessel is more than twice the size of any 
other vessel currently fishing in New England, and it intends to 
harvest 50,000 tons of fish annually. Many concerns have been raised 
from Maine to New Jersey about the potential impacts that this enormous 
vessel will have on the herring and mackerel stocks, and on the 
composition of the fisheries that have been developing in recent years 
through the hard work of many people in the region. To take one example 
of these concerns, while the National Marine Fisheries Service 
indicates that herring is, according to the best information, fairly 
abundant off Georges Bank and southern New England, there are 
legitimate concerns about the health of the Gulf of Maine stocks which 
form the major source of supply for the sardine and lobster bait 
industries, and which do appear to interact and aggregate with the 
offshore stocks at certain times of the year. Unfortunately, today's 
science cannot tell us with a high degree of precision what impacts the 
increased fishing of offshore stocks would have on all of the key Gulf 
of Maine stocks.
  The uncertainties surrounding the Atlantic Star proposal are the 
kinds of things that must be carefully reviewed, and the most 
appropriate forums for reviewing these questions are the regional 
fishery management councils established to manage our fisheries under 
the Magnuson-Stevens Act. Unfortunately, neither of the councils with 
jurisdiction over herring and mackerel had addressed the issues raised 
by the Atlantic Star before the vessel's owners were able to get it 
permitted. The Atlantic herring fishery does not have a federal fishery 
management plan, meaning that it is largely unregulated. And the 
existing management plan for mackerel was developed before it was known 
that the Atlantic Star would seek to operate in that fishery.
  To ensure that the Atlantic Star and other vessels of its class 
receive the thorough consideration intended in the Magnuson-Stevens 
Act, the bill introduced by Senator Kerry and I calls a temporary 
timeout on the entry of very large vessels into the herring and 
mackerel fisheries until the councils have time to act. Our bill states 
that no vessel over 165 feet or with greater than 3,000 horsepower can 
harvest these species unless the appropriate council specifically 
authorizes it in a fishery management plan or plan amendment. But 
unlike other bills that have been introduced on this issue, our bill 
ensures that this matter is addressed in a reasonable timeframe. It 
establishes deadlines for action on the Atlantic Star by the councils 
and the Commerce Department of September 30, 1998, whether the decision 
is favorable or unfavorable.
  Mr. President, this bill simply ensures that the analytical and 
deliberative process outlined in the Magnuson-Stevens Act has a chance 
to work as it was intended. And when the issue is the introduction of a 
dramatically different new fishing technology into two relatively 
healthy fisheries of substantial importance to many people who live in 
the region, the integrity of this process could not be more important. 
It is unfortunate that this issue was not resolved by the councils and 
the Commerce Department sooner, but the fact is that it was not, and 
Congress, if it is to ensure that our fisheries are managed 
responsibly, must intervene in a responsible manner. The remedy that we 
have proposed is responsible, temporary, and reasonable.
  Mr. KERRY. Mr. President, I rise today to join with my friend and 
colleague, the distinguished Senator from Maine, in introducing 
legislation on a topic of growing importance to coastal communities 
throughout the Northeast--conservation of North Atlantic fisheries 
resources.
  Since I arrived in the Senate over 12 years ago, I have worked to 
address the many challenges confronting our ocean and coastal 
resources. After all, few States draw as much of their national and 
regional identity from their coasts as does Massachusetts. My efforts 
have been principally through my participation as a member on the 
Commerce, Science, and Transportation Committee, and particularly as 
ranking member of the Oceans and Fisheries Subcommittee and as co-chair 
of its predecessor, the National Ocean Policy Study.
  During my tenure, I have worked with my colleagues to develop 
innovative policy solutions to achieve the long-term protection and 
sustainable use of vulnerable marine resources. Our goal has been to 
ensure strong coastal economies and a clean, healthy ocean environment 
from the Gulf of Maine to the Gulf of Alaska.
  One of our recent successes was last year's bill to reauthorize and 
strengthen the Magnuson-Stevens Fishery Conservation and Management Act 
(Magnuson-Stevens Act). That legislation, the Sustainable Fisheries 
Act, ultimately should provide the framework for rebuilding depleted 
fish stocks and developing management schemes to prevent overfishing. 
Unfortunately, many of the ideas and safeguards the new law contains 
represent difficult lessons learned from the devastating collapse of 
the New England groundfish fishery. In other regional fisheries, we 
have been too late to stop the depletion.
  This brings us to the issue at hand: How can we prevent repetition of 
the groundfish experience, maintain the current health of Atlantic 
herring and mackerel stocks, and encourage their sustainable use? The 
first step, of course, is through development of conservative and 
comprehensive fishery management plans. Toward that end, on June 17, 
1997, I wrote the National Marine Fisheries Service, asking it to work 
with the New England Fishery Management Council to ensure the immediate 
development and implementation of a fishery management plan for 
Atlantic herring. Such a plan is essential to protect herring stocks 
and traditional fishery participants as proposals move forward to 
expand the herring fishery in Federal waters.
  Atlantic herring is an important part of New England's fishing 
tradition. For generations, we have harvested herring for use as canned 
sardines, as bait in lobster pots, and for other products. Fishermen 
using small boats form the base of the fishery, and it is those 
fishermen, more than any others, who seek an intelligent plan for 
managing the fishery and protecting against overharvest. In addition, 
Atlantic herring play a key role in the marine ecosystem off New 
England coasts by providing a primary food source for whales, seabirds, 
and other fish including groundfish, tuna, striped bass, and bluefish.

  The challenge now is to prevent a flood of new or displaced boats 
from entering the herring fishery and overwhelming the harvesting 
capacity of the resource. The National Marine Fisheries Service 
estimates that herring stocks are now at levels that

[[Page S9645]]

would support an expanded harvest level. However, New England's past 
has taught us that in an unregulated environment, this current healthy 
condition could rapidly be reversed. Given the present lack of a 
Federal fishery management plan for herring and questionable scientific 
information on the status of the stocks, the uncontrolled expansion of 
this fishery could have devastating consequences.
  We need to slow down the increase in fishing power entering the 
herring fishery, and we need to give the New England Council the time 
to develop a thoughtful Federal management plan for herring that 
responds to local interests and needs. While I had hoped that the 
council and the Secretary of Commerce would be able to accomplish these 
goals through the process established by the Magnuson-Stevens Act and 
other fishery laws, it has become clear in recent weeks that we must 
impose temporary legislative safeguards until that process is complete.
  The bill which Senators Snowe, Kennedy, and I are introducing today, 
the North Atlantic Fisheries Resource Conservation Act, provides those 
safeguards. First, by September 30, 1998, the New England and Mid-
Atlantic Councils and the Secretary of Commerce are required to develop 
and implement both a fishery management plan for herring and a plan 
amendment for Atlantic mackerel. Second, a fishing vessel that is 
longer than 165 feet or has engines that exceed 3,000 horsepower is 
prohibited from harvesting either herring or mackerel until the 
councils and the Secretary have addressed the potential impact of such 
vessels in the management plan.
  While the provisions of the North Atlantic Fisheries Resource 
Conservation Act are specific to two Northeast fisheries, the issues 
which they address should become part of a broader national policy 
debate about our vision for the American fishing industry in the 21st 
century. For over two decades, our fishery policies have focused on two 
goals: conservation and management of U.S. fishery resources and 
development of the domestic fishing industry. We have succeeded beyond 
our expectations in achieving the second goal of developing the U.S. 
fishing industry. I am optimistic that the Sustainable Fisheries Act 
will move us toward achieving the first goal of improving conservation 
and management. With the achievement of those goals, however, come new 
questions. What do we want our fishing industry to look like in the 
years to come? What should we as a nation do to preserve traditional 
coastal communities centered on small-boat fishermen? What restrictions 
if any should be placed on enormous factory trawlers? In New England, 
these large ships conjure up memories of foreign factory trawlers 
vacuuming up and destroying U.S. fishery resources in the days before 
the Magnuson-Stevens Act. Are such ships an appropriate element in 
other U.S. fisheries?
  The legislation before us today focuses on the actions needed to 
safeguard the Atlantic herring and mackerel fisheries. However, I look 
forward to the broader debate. By the prompt enactment of this 
legislation I hope we can contribute to that debate and begin to shift 
the national example set by New England fisheries from one of 
overfishing and painful rebuilding toward one of conservative 
management that is successful in preserving both the fishermen and the 
fish.
                                 ______
                                 
      By Mr. CHAFEE (for himself, Mr. Craig, Mr. Rockefeller, Mr. 
        Jeffords, Mr. DeWine, Mr. Coats, Mr. Bond, Ms. Landrieu, and 
        Mr. Levin):

  S. 1195. A bill to promote the adoption of children in foster care, 
and for other purposes; to the Committee on Finance.


 THE PROMOTION OF ADOPTION SAFETY AND SUPPORT FOR ABUSED AND NEGLECTED 
                              CHILDREN ACT

  Mr. CHAFEE. Mr. President, I am pleased to introduce the Promotion of 
Adoption, Safety and Support for Abused and Neglected Children Act, the 
so-called PASS Act. This legislation will make critical reforms to the 
Nation's child welfare and foster care system and will go a long way 
toward improving the lives of the hundreds of thousands of abused and 
neglected children across America. These are children without a safe 
family setting. They are children who face abuse and neglect every day 
of their lives. They are America's forgotten children. And, all too 
often, they are children without hope.

  This chilling picture has brought the sponsors of this bill together 
to take immediate action. The goals of the PASS Act are twofold: to 
ensure that abused and neglected children are in safe settings, and to 
move children more rapidly out of the foster care system and into 
permanent placements.
  While the goal of reunifying children with their biological families 
is laudable, we should not be encouraging States to return abused or 
neglected children to homes that are clearly unsafe. Regrettably, this 
is occurring under current law.
  About 500,000--half a million--abused or neglected children currently 
live outside their homes, either in foster care or with relatives. In 
Rhode Island alone, there are nearly 1,500 children who have been 
removed from their homes and are in foster care. The Rhode Island 
Department of Children and Families has an active case load of about 
7,700 children who have been abused or neglected.
  Many of these children will be able to return to their parents, but 
many will not. Too often, children who cannot return to their parents 
wait for years in foster care before they are adopted. In today's child 
welfare system, it has become a lonely and tragic wait with no end. To 
us, that is an unacceptable way of life for any child to have to 
endure.
  The PASS Act seeks to shorten the time a child must wait to be 
adopted, all the while ensuring that wherever a child is placed, his or 
her safety and health will be the first concern.
  The PASS Act also contains important new financial incentives to help 
these children find adoptive homes. State agencies will receive bonuses 
for each child that is adopted, and families who open their hearts and 
their homes to these children will be eligible for Federal financial 
assistance and Medicaid coverage for the child.
  I believe the PASS Act is a good bipartisan, compromise package. The 
sponsors of this bill have worked hard to come together in support of a 
child welfare reform bill. And we expect this new, revised legislation 
to move quickly through the Senate, as the Majority Leader has 
indicated that adoption legislation is one of a select few priorities 
to be dealt with before expected adjournment in early November.

  But the real reason we need to move this bill is not because of 
legislative haste. It is because each passing day we do not act to 
bring hope and relief to abused and neglected children is a dark day 
for Congress and the Nation.
  Finally let me thank my friend Jay Rockefeller, who has worked so 
tirelessly on these issues and whose leadership was key to this bill. I 
also want to pay special tribute to Larry Craig--without his commitment 
to these children this agreement would not have been possible. I am 
proud of this bipartisan effort, and I hope all of my colleagues will 
support this measure. I ask unanimous consent that the full text of the 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1195

       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 ``Promotion 
     of Adoption, Safety, and Support for Abused and Neglected 
     Children (PASS) Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                          ADOPTION PLACEMENTS

Sec. 101. Clarification of the reasonable efforts requirement.
Sec. 102. Including safety in case plan and case review system 
              requirements.
Sec. 103. Multidisciplinary/multiagency child death review teams.
Sec. 104. States required to initiate or join proceedings to terminate 
              parental rights for certain children in foster care.
Sec. 105. Notice of reviews and hearings; opportunity to be heard.
Sec. 106. Use of the Federal Parent Locator Service for child welfare 
              services.
Sec. 107. Criminal records checks for prospective foster and adoptive 
              parents and group care staff.

[[Page S9646]]

Sec. 108. Development of State guidelines to ensure safe, quality care 
              to children in out-of-home placements.
Sec. 109. Documentation of efforts for adoption or location of a 
              permanent home.

   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

Sec. 201. Adoption incentive payments.
Sec. 202. Promotion of adoption of children with special needs.
Sec. 203. Technical assistance.
Sec. 204. Adoptions across State and county jurisdictions.
Sec. 205. Facilitation of voluntary mutual reunions between adopted 
              adults and birth parents and siblings.
Sec. 206. Annual report on State performance in protecting children.

             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

Sec. 301. Expansion of child welfare demonstration projects.
Sec. 302. Permanency planning hearings.
Sec. 303. Kinship care.
Sec. 304. Standby guardianship.
Sec. 305. Clarification of eligible population for independent living 
              services.
Sec. 306. Coordination and collaboration of substance abuse treatment 
              and child protection services.
Sec. 307. Reauthorization and expansion of family preservation and 
              support services.
Sec. 308. Innovation grants to reduce backlogs of children awaiting 
              adoption and for other purposes.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Preservation of reasonable parenting.
Sec. 402. Reporting requirements.
Sec. 403. Report on fiduciary obligations of State agencies receiving 
              SSI payments.
Sec. 404. Allocation of administrative costs of determining eligibility 
              for medicaid and TANF.

                        TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.
TITLE I--REASONABLE EFFORTS AND SAFETY REQUIREMENTS FOR FOSTER CARE AND 
                          ADOPTION PLACEMENTS

     SEC. 101. CLARIFICATION OF THE REASONABLE EFFORTS 
                   REQUIREMENT.

       Section 471(a)(15) of the Social Security Act (42 U.S.C. 
     671(a)(15)) is amended to read as follows:
       ``(15) provides that--
       ``(A) in determining reasonable efforts, as described in 
     this section, the child's health and safety shall be the 
     paramount concern;
       ``(B) reasonable efforts shall be made to preserve and 
     reunify families when possible--
       ``(i) prior to the placement of a child in foster care, to 
     prevent or eliminate the need for removing the child from the 
     child's home when the child can be cared for at home without 
     endangering the child's health or safety; or
       ``(ii) to make it possible for the child to safely return 
     to the child's home;
       ``(C) reasonable efforts shall not be required on behalf of 
     any parent--
       ``(i) if a court of competent jurisdiction has made a 
     determination that the parent has--

       ``(I) committed murder of another child of the parent;
       ``(II) committed voluntary manslaughter of another child of 
     the parent;
       ``(III) aided or abetted, attempted, conspired, or 
     solicited to commit such murder or voluntary manslaughter; or
       ``(IV) committed a felony assault that results in serious 
     bodily injury to the child or another child of the parent;

       ``(ii) if a court of competent jurisdiction determines that 
     returning the child to the home of the parent would pose a 
     serious risk to the child's health or safety (including but 
     not limited to cases of abandonment, torture, chronic 
     physical abuse, sexual abuse, or a previous involuntary 
     termination of parental rights with respect to a sibling of 
     the child); or
       ``(iii) if the State, through legislation, has specified 
     cases in which the State is not required to make reasonable 
     efforts because of serious circumstances that endanger a 
     child's health or safety;
       ``(D) if reasonable efforts to preserve or reunify a family 
     are not made in accordance with subparagraph (C), and 
     placement with either parent would pose a serious risk to the 
     child's health or safety, or in any case in which a State's 
     goal for the child is adoption or placement in another 
     permanent home, reasonable efforts shall be made to place the 
     child in a timely manner with an adoptive family, with a 
     qualified relative or legal guardian, or in another planned 
     permanent living arrangement, and to complete whatever steps 
     are necessary to finalize the adoption or legal guardianship; 
     and
       ``(E) reasonable efforts of the type described in 
     subparagraph (D) may be made concurrently with reasonable 
     efforts of the type described in subparagraph (B);''.

     SEC. 102. INCLUDING SAFETY IN CASE PLAN AND CASE REVIEW 
                   SYSTEM REQUIREMENTS.

       Title IV of the Social Security Act (42 U.S.C. 601 et seq.) 
     is amended--
       (1) in section 422(b)(10)(B) (as redesignated by section 
     5592(a)(1)(A)(iii) of the Balanced Budget Act of 1997 (Public 
     Law 105-33; 111 Stat. 644))--
       (A) in clause (iii)(I), by inserting ``safe and'' after 
     ``where''; and
       (B) in clause (iv), by inserting ``safely'' after 
     ``remain''; and
       (2) in section 475--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``safety and'' after 
     ``discussion of the''; and
       (ii) in subparagraph (B)--

       (I) by inserting ``safe and'' after ``child receives''; and
       (II) by inserting ``safe'' after ``return of the child to 
     his own''; and

       (B) in paragraph (5)--
       (i) in subparagraph (A), in the matter preceding clause 
     (i), by inserting ``a safe setting that is'' after 
     ``placement in''; and
       (ii) in subparagraph (B)--

       (I) by inserting ``the safety of the child,'' after 
     ``determine''; and
       (II) by inserting ``and safely maintained in'' after 
     ``returned to''.

     SEC. 103. MULTIDISCIPLINARY/MULTIAGENCY CHILD DEATH REVIEW 
                   TEAMS.

       (a) State Child Death Review Teams.--Section 471 of the 
     Social Security Act (42 U.S.C. 671) is amended by adding at 
     the end the following:
       ``(c)(1) In order to investigate and prevent child death 
     from fatal abuse and neglect, not later than 2 years after 
     the date of the enactment of this subsection, a State, in 
     order to be eligible for payments under this part, shall 
     submit to the Secretary a certification that the State has 
     established and is maintaining, in accordance with applicable 
     confidentiality laws, a State child death review team, and if 
     necessary in order to cover all counties in the State, child 
     death review teams on the regional or local level, that shall 
     review child deaths, including deaths in which--
       ``(A) there is a record of a prior report of child abuse or 
     neglect or there is reason to suspect that the child death 
     was caused by, or related to, child abuse or neglect; or
       ``(B) the child who died was a ward of the State or was 
     otherwise known to the State or local child welfare service 
     agency.
       ``(2) A child death review team established in accordance 
     with this subsection should have a membership that will 
     present a range of viewpoints that are independent from any 
     specific agency, and shall include representatives from, at a 
     minimum, specific fields of expertise, such as law 
     enforcement, health, mental health, and substance abuse, and 
     from the community.
       ``(3) A State child death review team shall--
       ``(A) provide support to a regional or local child death 
     review team;
       ``(B) make public an annual summary of case findings;
       ``(C) provide recommendations for systemwide improvements 
     in services to investigate and prevent future fatal abuse and 
     neglect; and
       ``(D) if the State child death review team covers all 
     counties in the State on its own, carry out the duties of a 
     regional or local child death review team described in 
     paragraph (4).
       ``(4) A regional or local child death review team shall--
       ``(A) conduct individual case reviews;
       ``(B) recommend followup procedures for child death cases; 
     and
       ``(C) suggest and assist with system improvements in 
     services to investigate and prevent future fatal abuse and 
     neglect.''.
       (b) Federal Child Death Review Team.--Section 471 of the 
     Social Security Act (42 U.S.C. 671), as amended by subsection 
     (a), is amended by adding at the end the following:
       ``(d)(1) The Secretary shall establish a Federal child 
     death review team that shall consist of at least the 
     following:
       ``(A) Representatives of the following Federal agencies who 
     have expertise in the prevention or treatment of child abuse 
     and neglect:
       ``(i) Department of Health and Human Services.
       ``(ii) Department of Justice.
       ``(iii) Bureau of Indian Affairs.
       ``(iv) Department of Defense.
       ``(v) Bureau of the Census.
       ``(B) Representatives of national child-serving 
     organizations who have expertise in the prevention or 
     treatment of child abuse and neglect and that, at a minimum, 
     represent the health, child welfare, social services, and law 
     enforcement fields.
       ``(2) The Federal child death review team established under 
     this subsection shall--
       ``(A) review reports of child deaths on military 
     installations and other Federal lands, and coordinate with 
     Indian tribal organizations in the review of child deaths on 
     Indian reservations;
       ``(B) upon request, provide guidance and technical 
     assistance to States and localities seeking to initiate or 
     improve child death review teams and to prevent child 
     fatalities; and
       ``(C) develop recommendations on related policy and 
     procedural issues for Congress, relevant Federal agencies, 
     and States and localities for the purpose of preventing child 
     fatalities.''.

     SEC. 104. STATES REQUIRED TO INITIATE OR JOIN PROCEEDINGS TO 
                   TERMINATE PARENTAL RIGHTS FOR CERTAIN CHILDREN 
                   IN FOSTER CARE.

       (a) Requirement for Proceedings.--Section 475(5) of the 
     Social Security Act (42 U.S.C. 675(5)) is amended--
       (1) by striking ``and'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and

[[Page S9647]]

       (3) by adding at the end the following:
       ``(E) in the case of a child who has been in foster care 
     under the responsibility of the State for 12 of the most 
     recent 18 months, or for a lifetime total of 24 months, or, 
     if a court of competent jurisdiction has determined an infant 
     to have been abandoned (as defined under State law), or made 
     a determination that the parent has committed murder of 
     another child of such parent, committed voluntary 
     manslaughter of another child of such parent, aided or 
     abetted, attempted, conspired, or solicited to commit such 
     murder or voluntary manslaughter, or committed a felony 
     assault that results in serious bodily injury to the 
     surviving child or to another child of such parent, the State 
     shall file a petition to terminate the parental rights of the 
     child's parents (or, if such a petition has been filed by 
     another party, seek to be joined as a party to the petition), 
     and, concurrently, to identify, recruit, process, and approve 
     a qualified family for an adoption, unless--
       ``(i) at the option of the State, the child is being cared 
     for by a relative; or
       ``(ii) a State court or State agency has documented a 
     compelling reason for determining that filing such a petition 
     would not be in the best interests of the child.''.
       (b) Determination of Beginning of Foster Care.--Section 
     475(5) of the Social Security Act (42 U.S.C. 675(5)), as 
     amended by subsection (a), is amended--
       (1) by striking ``and'' at the end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) a child shall be considered to have entered foster 
     care on the latter of--
       ``(i) the first time the child is removed from the home; or
       ``(ii) the date of the first judicial hearing on removal of 
     the child from the home.''.
       (c) Elimination of Unnecessary Court Delays.--
       (1) One-year statute of limitations for appeals of orders 
     terminating parental rights.--Section 471(a) of the Social 
     Security Act (42 U.S.C. 671(a)), as amended by section 
     5591(b) of the Balanced Budget Act of 1997, is amended--
       (A) by striking ``and'' at the end of paragraph (18);
       (B) by striking the period at the end of paragraph (19) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(20) provides that an order terminating parental rights 
     shall only be appealable during the 1-year period that begins 
     on the date the order is issued.''.
       (2) One-year statute of limitations for appeals of orders 
     of removal.--Section 471(a) of the Social Security Act (42 
     U.S.C. 671(a)), as amended by subsection (a), is amended--
       (A) in paragraph (19), by striking ``and'' at the end;
       (B) in paragraph (20), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(21) provides that a court-ordered removal of a child 
     shall only be appealable during the 1-year period that begins 
     on the date the order is issued.''.
       (d) Rule of Construction.--Nothing in part E of title IV of 
     the Social Security Act (42 U.S.C. 670 et seq.), as amended 
     by this Act, shall be construed as precluding State courts or 
     State agencies from initiating or finalizing the termination 
     of parental rights for reasons other than, or for timelines 
     earlier than, those specified in part E of title IV of such 
     Act, when such actions are determined to be in the best 
     interests of the child.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     children entering foster care under the responsibility of the 
     State after the date of enactment of this Act.
       (2) Transition rule for current foster care children.--
     Subject to paragraph (3), with respect to any child in foster 
     care under the responsibility of the State on or before the 
     date of enactment of this Act, the amendments made by this 
     section shall not apply to such child until the date that is 
     1 year after the date of enactment of this Act.
       (3) Delay Permitted if State Legislation Required.--The 
     provisions of section 501(b) shall apply to the effective 
     date of the amendments made by this section.

     SEC. 105. NOTICE OF REVIEWS AND HEARINGS; OPPORTUNITY TO BE 
                   HEARD.

       Section 475(5) of the Social Security Act (42 U.S.C. 
     675(5)), as amended by section 104(b), is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(G) the foster parents (if any) of a child and any 
     relative providing care for the child are provided with 
     notice of, and an opportunity to be heard in, any review or 
     hearing to be held with respect to the child, except that 
     this subparagraph shall not be construed to make any foster 
     parent or relative a party to such a review or hearing solely 
     on the basis of such notice and opportunity to be heard.''.

     SEC. 106. USE OF THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD 
                   WELFARE SERVICES.

       Section 453 of the Social Security Act (42 U.S.C. 653), as 
     amended by section 5534 of the Balanced Budget Act of 1997, 
     is amended--
       (1) in subsection (a)(2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``or making or enforcing child custody or visitation orders'' 
     after ``obligations,''; and
       (B) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (ii);
       (ii) by striking the comma at the end of clause (iii) and 
     inserting ``; or''; and
       (iii) by inserting after clause (iii) the following:
       ``(iv) who has or may have parental rights with respect to 
     a child,''; and
       (2) in subsection (c)--
       (A) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (B) by adding at the end the following:
       ``(4) a State agency that is administering a program 
     operated under a State plan under subpart 1 of part B, or a 
     State plan approved under subpart 2 of part B or under part 
     E.''.

     SEC. 107. CRIMINAL RECORDS CHECKS FOR PROSPECTIVE FOSTER AND 
                   ADOPTIVE PARENTS AND GROUP CARE STAFF.

       Section 471(a) of the Social Security Act (42 U.S.C. 
     671(a)), as amended by section 104(c)(2), is amended--
       (1) by striking ``and'' at the end of paragraph (20);
       (2) by striking the period at the end of paragraph (21) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(22) provides procedures for criminal records checks and 
     checks of a State's child abuse registry for any prospective 
     foster parent or adoptive parent, and any employee of a 
     residential child-care institution before the foster parent 
     or adoptive parent, or the residential child-care institution 
     may be finally approved for placement of a child on whose 
     behalf foster care maintenance payments or adoption 
     assistance payments are to be made under the State plan under 
     this part, including procedures requiring that--
       ``(A) in any case in which a criminal record check reveals 
     a criminal conviction for child abuse or neglect, or spousal 
     abuse, a criminal conviction for crimes against children, or 
     a criminal conviction for a crime involving violence, 
     including violent drug-related offenses, rape, sexual or 
     other physical assault, battery, or homicide, approval shall 
     not be granted, unless the individual provides substantial 
     evidence to local law enforcement officials and the State 
     child protection agency proving that there are extraordinary 
     circumstances which demonstrate that approval should be 
     granted; and
       ``(B) in any case in which a criminal record check reveals 
     a criminal conviction for a felony or misdemeanor not 
     involving violence, or a check of any State child abuse 
     registry indicates that a substantiated report of abuse or 
     neglect exists, final approval may be granted only after 
     consideration of the nature of the offense or incident, the 
     length of time that has elapsed since the commission of the 
     offense or the occurrence of the incident, the individual's 
     life experiences during the period since the commission of 
     the offense or the occurrence of the incident, and any risk 
     to the child.''.

     SEC. 108. DEVELOPMENT OF STATE GUIDELINES TO ENSURE SAFE, 
                   QUALITY CARE TO CHILDREN IN OUT-OF-HOME 
                   PLACEMENTS.

       Section 471(a)(10) of the Social Security Act (42 U.S.C. 
     671(a)(10)) is amended--
       (1) by inserting ``and guidelines'' after ``standards'' 
     each place it appears; and
       (2) by inserting ``ensuring quality services that protect 
     the safety and health of children in foster care placements 
     with nonprofit and for-profit agencies,'' after ``related 
     to''.

     SEC. 109. DOCUMENTATION OF EFFORTS FOR ADOPTION OR LOCATION 
                   OF A PERMANENT HOME.

       Section 475 of the Social Security Act (42 U.S.C. 675) is 
     amended--
       (1) in paragraph (1)--
       (A) in the last sentence--
       (i) by striking ``the case plan must also include''; and
       (ii) by redesignating such sentence as subparagraph (D) and 
     indenting appropriately; and
       (B) by adding at the end, the following:
       ``(E) In the case of a child with respect to whom the 
     State's goal is adoption or placement in another permanent 
     home, documentation of the steps taken by the agency to find 
     an adoptive family or other permanent living arrangement for 
     the child, to place the child with an adoptive family, legal 
     guardian, or in another planned permanent living arrangement, 
     and to finalize the adoption or legal guardianship. At a 
     minimum, such documentation shall include child specific 
     recruitment efforts such as the use of State, regional, and 
     national adoption exchanges including electronic exchange 
     systems.''; and
       (2) in paragraph (5)(B), by inserting ``(including the 
     requirement specified in paragraph (1)(E))'' after ``case 
     plan''.
   TITLE II--INCENTIVES FOR PROVIDING PERMANENT FAMILIES FOR CHILDREN

     SEC. 201. ADOPTION INCENTIVE PAYMENTS.

       Part E of title IV of the Social Security Act (42 U.S.C. 
     670-679) is amended by inserting after section 473 the 
     following:

     ``SEC. 473A. ADOPTION INCENTIVE PAYMENTS.

       ``(a) Grant Authority.--Subject to the availability of such 
     amounts as may be provided in advance in appropriations Acts 
     for this purpose, the Secretary may make a grant to each 
     State that is an incentive-eligible State for a fiscal year 
     in an amount

[[Page S9648]]

     equal to the adoption incentive payment payable to the State 
     for the fiscal year under this section, which shall be 
     payable in the immediately succeeding fiscal year.
       ``(b) Incentive-Eligible State.--A State is an incentive-
     eligible State for a fiscal year if--
       ``(1) the State has a plan approved under this part for the 
     fiscal year;
       ``(2) the number of foster child adoptions in the State 
     during the fiscal year exceeds the base number of foster 
     child adoptions for the State for the fiscal year;
       ``(3) the State is in compliance with subsection (c) for 
     the fiscal year; and
       ``(4) the fiscal year is any of fiscal years 1998 through 
     2002.
       ``(c) Data Requirements.--
       ``(1) In general.--A State is in compliance with this 
     subsection for a fiscal year if the State has provided to the 
     Secretary the data described in paragraph (2) for fiscal year 
     1997 (or, if later, the fiscal year that precedes the first 
     fiscal year for which the State seeks a grant under this 
     section) and for each succeeding fiscal year.
       ``(2) Determination of numbers of adoptions.--
       ``(A) Determinations based on afcars data.--Except as 
     provided in subparagraph (B), the Secretary shall determine 
     the numbers of foster child adoptions and of special needs 
     adoptions in a State during each of fiscal years 1997 through 
     2002, for purposes of this section, on the basis of data 
     meeting the requirements of the system established pursuant 
     to section 479, as reported by the State in May of the fiscal 
     year and in November of the succeeding fiscal year, and 
     approved by the Secretary by April 1 of the succeeding fiscal 
     year.
       ``(B) Alternative data sources permitted for fiscal year 
     1997.--For purposes of the determination described in 
     subparagraph (A) for fiscal year 1997, the Secretary may use 
     data from a source or sources other than that specified in 
     subparagraph (A) that the Secretary finds to be of equivalent 
     completeness and reliability, as reported by a State by 
     November 30, 1997, and approved by the Secretary by March 1, 
     1998.
       ``(3) No waiver of afcars requirements.--This section shall 
     not be construed to alter or affect any requirement of 
     section 479 or any regulation prescribed under such section 
     with respect to reporting of data by States, or to waive any 
     penalty for failure to comply with the requirements.
       ``(d) Adoption Incentive Payment.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     adoption incentive payment payable to a State for a fiscal 
     year under this section shall be equal to the sum of--
       ``(A) $2,000, multiplied by amount (if any) by which the 
     number of foster child adoptions in the State during the 
     fiscal year exceeds the base number of foster child adoptions 
     for the State for the fiscal year; and
       ``(B) $2,000, multiplied by the amount (if any) by which 
     the number of special needs adoptions in the State during the 
     fiscal year exceeds the base number of special needs 
     adoptions for the State for the fiscal year.
       ``(2) Pro rata adjustment if insufficient funds 
     available.--For any fiscal year, if the total amount of 
     adoption incentive payments otherwise payable under this 
     section for a fiscal year exceeds the amount appropriated for 
     that fiscal year, the amount of the adoption incentive 
     payment payable to each State under this section for the 
     fiscal year shall be--
       ``(A) the amount of the adoption incentive payment that 
     would otherwise be payable to the State under this section 
     for the fiscal year; multiplied by
       ``(B) the percentage represented by the amount appropriated 
     for that year, divided by the total amount of adoption 
     incentive payments otherwise payable under this section for 
     the fiscal year.
       ``(e) 2-Year Availability of Incentive Payments.--Payments 
     to a State under this section in a fiscal year shall remain 
     available for use by the State through the end of the 
     succeeding fiscal year.
       ``(f) Limitations on Use of Incentive Payments.--A State 
     shall not expend an amount paid to the State under this 
     section except to provide to children or families any service 
     (including post adoption services) that may be provided under 
     part B or E. Amounts expended by a State in accordance with 
     the preceding sentence shall be disregarded in determining 
     State expenditures for purposes of Federal matching payments 
     under section 474.
       ``(g) Definitions.--As used in this section:
       ``(1) Foster child adoption.--The term `foster child 
     adoption' means the final adoption of a child who, at the 
     time of adoptive placement, was in foster care under the 
     supervision of the State.
       ``(2) Special needs adoption.--The term `special needs 
     adoption' means the final adoption of a child for whom an 
     adoption assistance agreement is in effect under section 473.
       ``(3) Base number of foster child adoptions.--The term 
     `base number of foster child adoptions for a State' means, 
     with respect to a fiscal year, the largest number of foster 
     child adoptions in the State in fiscal year 1997 (or, if 
     later, the first fiscal year for which the State has 
     furnished to the Secretary the data described in subsection 
     (c)(2)) or in any succeeding fiscal year preceding the fiscal 
     year.
       ``(4) Base number of special needs adoptions.--The term 
     `base number of special needs adoptions for a State' means, 
     with respect to a fiscal year, the largest number of special 
     needs adoptions in the State in fiscal year 1997 (or, if 
     later, the first fiscal year for which the State has 
     furnished to the Secretary the data described in subsection 
     (c)(2)) or in any succeeding fiscal year preceding the fiscal 
     year.
       ``(h) Limitations on Authorization of Appropriations.--
       ``(1) In general.--For grants under this section, there are 
     authorized to be appropriated to the Secretary $15,000,000 
     for each of fiscal years 1999 through 2003.
       ``(2) Availability.--Amounts appropriated under paragraph 
     (1) are authorized to remain available until expended, but 
     not after fiscal year 2003.''.

     SEC. 202. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL 
                   NEEDS.

       (a) In General.--Section 473(a) of the Social Security Act 
     (42 U.S.C. 673(a)) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2)(A) For purposes of paragraph (1)(B)(ii), a child 
     meets the requirements of this paragraph if such child--
       ``(i) prior to termination of parental rights and the 
     initiation of adoption proceedings was in the care of a 
     public or licensed private child care agency or Indian tribal 
     organization either pursuant to a voluntary placement 
     agreement (provided the child was in care for not more than 
     180 days) or as a result of a judicial determination to the 
     effect that continuation in the home would be contrary to the 
     safety and welfare of such child, or was residing in a foster 
     family home or child care institution with the child's minor 
     parent (either pursuant to such a voluntary placement 
     agreement or as a result of such a judicial determination); 
     and
       ``(ii) has been determined by the State pursuant to 
     subsection (c) to be a child with special needs, which needs 
     shall be considered by the State, together with the 
     circumstances of the adopting parents, in determining the 
     amount of any payments to be made to the adopting parents.
       ``(B) Notwithstanding any other provision of law, and 
     except as provided in paragraph (7), a child who is not a 
     citizen or resident of the United States and who meets the 
     requirements of subparagraph (A) and is otherwise determined 
     to be eligible for the receipt of adoption assistance 
     payments, shall be eligible for adoption assistance payments 
     under this part.
       ``(C) A child who meets the requirements of subparagraph 
     (A) and who is otherwise determined to be eligible for the 
     receipt of adoption assistance payments shall continue to be 
     eligible for such payments in the event that the child's 
     adoptive parent dies or the child's adoption is dissolved, 
     and the child is placed with another family for adoption.''.
       (b) Exception.--Section 473(a) of the Social Security Act 
     (42 U.S.C. 673(a)) is amended by adding at the end the 
     following:
       ``(7)(A) Notwithstanding any other provision of this 
     subsection, no payment may be made to parents with respect to 
     any child that--
       ``(i) would be considered a child with special needs under 
     subsection (c);
       ``(ii) is not a citizen or resident of the United States; 
     and
       ``(iii) was adopted outside of the United States or was 
     brought into the United States for the purpose of being 
     adopted.
       ``(B) Subparagraph (A) shall not be construed as 
     prohibiting payments under this part for a child described in 
     subparagraph (A) that is placed in foster care subsequent to 
     the failure, as determined by the State, of the initial 
     adoption of such child by the parents described in such 
     subparagraph.''.
       (c) Requirement for Use of State Savings.--Section 473(a) 
     of the Social Security Act (42 U.S.C. 673(a)), as amended by 
     subsection (b), is amended by adding at the end the 
     following:
       ``(8) A State shall spend an amount equal to the amount of 
     savings (if any) in State expenditures under this part 
     resulting from the application of paragraph (2) on and after 
     the effective date of the amendment to such paragraph made by 
     section 202(a) of the Promotion of Adoption, Safety, and 
     Support for Abused and Neglected Children (PASS) Act to 
     provide to children or families any service (including post-
     adoption services) that may be provided under this part or 
     part B.''.

     SEC. 203. TECHNICAL ASSISTANCE.

       (a) In General.--The Secretary of Health and Human Services 
     may, directly or through grants or contracts, provide 
     technical assistance to assist States and local communities 
     to reach their targets for increased numbers of adoptions 
     and, to the extent that adoption is not possible, alternative 
     permanent placements, for children in foster care.
       (b) Limitations.--The technical assistance provided under 
     subsection (a) shall support the goal of encouraging more 
     adoptions out of the foster care system, when adoptions 
     promote the best interests of children, and shall include the 
     following:
       (1) The development of best practice guidelines for 
     expediting termination of parental rights.
       (2) Models to encourage the use of concurrent planning.
       (3) The development of specialized units and expertise in 
     moving children toward adoption as a permanency goal.
       (4) The development of risk assessment tools to facilitate 
     early identification of the children who will be at risk of 
     harm if returned home.

[[Page S9649]]

       (5) Models to encourage the fast tracking of children who 
     have not attained 1 year of age into adoptive and pre-
     adoptive placements.
       (6) Development of programs that place children in pre-
     adoptive families without waiting for termination of parental 
     rights.
       (7) Development of programs to recruit adoptive parents.

     SEC. 204. ADOPTIONS ACROSS STATE AND COUNTY JURISDICTIONS.

       (a) Elimination of Geographic Barriers to Interstate 
     Adoption.--Section 471(a) of the Social Security Act (42 
     U.S.C. 671(a)), as amended by section 106, is amended--
       (1) by striking ``and'' at the end of paragraph (21);
       (2) by striking the period at the end of paragraph (22) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(23) provides that neither the State nor any other entity 
     in the State that receives funds from the Federal Government 
     and is involved in adoption or foster care placements may--
       ``(A) deny to any person the opportunity to become an 
     applicant for custody of a child, licensure as a foster or 
     adoptive parent, or for foster care maintenance payments or 
     adoption assistance payments under this part on the basis of 
     the geographic residence of the person or of the child 
     involved; or
       ``(B) delay or deny the placement of a child for adoption, 
     into foster care, or in the child's original home on the 
     basis of the geographic residence of an adoptive or foster 
     parent or of the child involved.''.
       (b) Study of Interjurisdictional Adoption Issues.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this subsection referred to as the ``Secretary'') shall 
     appoint an advisory panel that shall--
       (A) study and consider how to improve procedures and 
     policies to facilitate the timely and permanent adoptions of 
     children across State and county jurisdictions;
       (B) examine, at a minimum, interjurisdictional adoption 
     issues--
       (i) concerning the recruitment of prospective adoptive 
     families from other States and counties;
       (ii) concerning the procedures to grant reciprocity to 
     prospective adoptive family home studies from other States 
     and counties;
       (iii) arising from a review of the comity and full faith 
     and credit provided to adoption decrees and termination of 
     parental rights orders from other States; and
       (iv) concerning the procedures related to the 
     administration and implementation of the Interstate Compact 
     on the Placement of Children; and
       (C) not later than 12 months after the final appointment to 
     the advisory panel, submit to the Secretary the report 
     described in paragraph (3).
       (2) Composition of advisory panel.--In establishing the 
     advisory panel required under paragraph (1), the Secretary 
     shall appoint members from the general public who are 
     individuals knowledgeable on adoption and foster care issues, 
     and with due consideration to representation of ethnic or 
     racial minorities and diverse geographic areas, and who, at a 
     minimum, include the following:
       (A) Adoptive and foster parents.
       (B) Public and private child welfare agencies that place 
     children in and out of home care.
       (C) Family court judges.
       (D) Adoption attorneys.
       (E) An Administrator of the Interstate Compact on the 
     Placement of Children and an Administrator of the Interstate 
     Compact on Adoption and Medical Assistance.
       (F) A representative cross-section of individuals from 
     other organizations and individuals with expertise or 
     advocacy experience in adoption and foster care issues.
       (3) Contents of report.--The report required under 
     paragraph (1)(C) shall include the results of the study 
     conducted under subparagraphs (A) and (B) of paragraph (1) 
     and recommendations on how to improve procedures to 
     facilitate the interjurisdictional adoption of children, 
     including interstate and intercounty adoptions, so that 
     children will be assured timely and permanent placements.
       (4) Congress.--The Secretary shall submit a copy of the 
     report required under paragraph (1)(C) to the appropriate 
     committees of Congress, and, if relevant, make 
     recommendations for proposed legislation.

     SEC. 205. FACILITATION OF VOLUNTARY MUTUAL REUNIONS BETWEEN 
                   ADOPTED ADULTS AND BIRTH PARENTS AND SIBLINGS.

       The Secretary of Health and Human Services, at no net 
     expense to the Federal Government, may use the facilities of 
     the Department of Health and Human Services to facilitate the 
     voluntary, mutually requested reunion of an adult adopted 
     child who is 21 years of age or older with--
       (1) any birth parent of the adult child; or
       (2) any adult adopted sibling who is 21 years of age or 
     older, of the adult child,

     if all such persons involved in any such reunion have, on 
     their own initiative, expressed a desire for a reunion and 
     agree to keep confidential the name and location of the other 
     birth parent of the adult adopted child and any other adult 
     adopted sibling of the adult adopted child.

     SEC. 206. ANNUAL REPORT ON STATE PERFORMANCE IN PROTECTING 
                   CHILDREN.

       (a) In General.--Part E of title IV of the Social Security 
     Act (42 U.S.C. 670 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 479A. ANNUAL REPORT.

       ``(a) In General.--The Secretary shall issue an annual 
     report containing ratings of the performance of each State in 
     protecting children who are placed in foster care, for 
     adoption, or with a relative or guardian. The report shall 
     include ratings on outcome measures for categories related to 
     safety and permanence for children.
       ``(b) Outcome Measures.--
       ``(1) In general.--The Secretary shall develop a set of 
     outcome measures to be used in preparing the report.
       ``(2) Categories.--In developing the outcome measures, the 
     Secretary shall develop measures that can track performance 
     over time for the following categories:
       ``(A) The number of children placed annually for adoption, 
     the number of placements of children with special needs, and 
     the number of children placed permanently in a foster family 
     home, with a relative, or with a guardian who is not a 
     relative.
       ``(B) The number of children, including those with parental 
     rights terminated, that annually leave foster care at the age 
     of majority without having been adopted or placed with a 
     guardian.
       ``(C) The median and mean length of stay of children in 
     foster care, for children with parental rights terminated, 
     and children for whom parental rights are retained by the 
     biological or adoptive parent.
       ``(D) The median and mean length of time between a child 
     having a plan of adoption and termination of parental rights, 
     between the availability of a child for adoption and the 
     placement of the child in an adoptive family, and between the 
     placement of the child in such a family and the finalization 
     of the adoption.
       ``(E) The number of deaths of children in foster care and 
     other out-of-home care, including kinship care, resulting 
     from substantiated child abuse and neglect.
       ``(F) The specific steps taken by the State to facilitate 
     permanence for children.
       ``(3) Measures.--In developing the outcome measures, the 
     Secretary shall use data from the Adoption and Foster Care 
     Analysis and Reporting System established under section 479 
     to the maximum extent possible.
       ``(c) Rating System.--The Secretary shall develop a system 
     (including using State census data and poverty rates) to rate 
     the performance of each State based on the outcome measures.
       ``(d) Information.--In order to receive funds under this 
     part, a State shall annually provide to the Secretary such 
     adoption, foster care, and guardianship information as the 
     Secretary may determine to be necessary to issue the report 
     for the State.
       ``(e) Preparation and Issuance.--On October 1, 1998, and 
     annually thereafter, the Secretary shall prepare, submit to 
     Congress, and issue to the States the report described in 
     subsection (a). Each report shall rate the performance of a 
     State on each outcome measure developed under subsection (b), 
     include an explanation of the rating system developed under 
     subsection (c) and the way in which scores are determined 
     under the rating system, analyze high and low performances 
     for the State, and make recommendations to the State for 
     improvement.''.
       (b) Conforming Amendments.--Section 471(a) of the Social 
     Security Act (42 U.S.C. 671(a)), as amended by section 
     204(a), is amended--
       (1) in paragraph (22), by striking ``and'' at the end;
       (2) in paragraph (23), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(24) provides that the State shall annually provide to 
     the Secretary the information required under section 479A.''.
             TITLE III--ADDITIONAL IMPROVEMENTS AND REFORMS

     SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS.

       Section 1130(a) of the Social Security Act (42 U.S.C. 
     1320a-9(a)) is amended by striking ``10'' and inserting 
     ``15''.

     SEC. 302. PERMANENCY PLANNING HEARINGS.

       Section 475(5)(C) of the Social Security Act (42 U.S.C. 
     675(5)(C)) is amended--
       (1) by striking ``dispositional'' and inserting 
     ``permanency planning'';
       (2) by striking ``no later than'' and all that follows 
     through ``12 months'' and inserting ``not later than 12 
     months after the original placement (and not less frequently 
     than every 6 months''; and
       (3) by striking ``future status of'' and all that follows 
     through ``long term basis)'' and inserting ``permanency plans 
     for the child (including whether and, if applicable, when, 
     the child will be returned to the parent, referred for 
     termination of parental rights, placed for adoption, or 
     referred for legal guardianship, or other planned permanent 
     living arrangement)''.

     SEC. 303. KINSHIP CARE.

       (a) Report.--
       (1) In general.--The Secretary of Health and Human Services 
     shall--
       (A) not later than March 1, 1998, convene the advisory 
     panel provided for in subsection (b)(1) and prepare and 
     submit to the advisory panel an initial report on the extent 
     to which children in foster care are placed in the care of a 
     relative (in this section referred to as ``kinship care''); 
     and
       (B) not later than November 1, 1998, submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a final report on 
     the matter described in subparagraph (A), which shall--
       (i) be based on the comments submitted by the advisory 
     panel pursuant to subsection

[[Page S9650]]

     (b)(2) and other information and considerations; and
       (ii) include the policy recommendations of the Secretary 
     with respect to the matter.
       (2) Required contents.--Each report required by paragraph 
     (1) shall--
       (A) include, to the extent available for each State, 
     information on--
       (i) the policy of the State regarding kinship care;
       (ii) the characteristics of the kinship care providers 
     (including age, income, ethnicity, and race);
       (iii) the characteristics of the household of such 
     providers (such as number of other persons in the household 
     and family composition);
       (iv) how much access to the child is afforded to the parent 
     from whom the child has been removed;
       (v) the cost of, and source of funds for, kinship care 
     (including any subsidies such as medicaid and cash 
     assistance);
       (vi) the goal for a permanent living arrangement for the 
     child and the actions being taken by the State to achieve the 
     goal;
       (vii) the services being provided to the parent from whom 
     the child has been removed; and
       (viii) the services being provided to the kinship care 
     provider; and
       (B) specifically note the circumstances or conditions under 
     which children enter kinship care.
       (b) Advisory Panel Review.--
       (1) In general.--The advisory board on child abuse and 
     neglect established under section 102 of the Child Abuse 
     Prevention and Treatment Act (42 U.S.C. 5102), or, if on the 
     date of enactment of this Act such advisory board does not 
     exist, the advisory panel authorized under paragraph (2), 
     shall review the report prepared pursuant to subsection (a) 
     and submit to the Secretary comments on the report not later 
     than July 1, 1998.
       (2) Authorization for appointments.--Subject to paragraph 
     (1), the Secretary of Health and Human Services, in 
     consultation with the Chairman of the Committee on Ways and 
     Means of the House of Representatives and the Chairman of the 
     Committee on Finance of the Senate, may appoint an advisory 
     board for the purpose of reviewing and commenting on the 
     report prepared pursuant to subsection (a). Such advisory 
     board shall include parents, foster parents, former foster 
     children, State and local public officials responsible for 
     administering child welfare programs, private persons 
     involved in the delivery of child welfare services, 
     representatives of tribal governments and tribal courts, 
     judges, and academic experts.

     SEC. 304. STANDBY GUARDIANSHIP.

       It is the sense of Congress that the States should have in 
     effect laws and procedures that permit any parent who is 
     chronically ill or near death, without surrendering parental 
     rights, to designate a standby guardian for the parent's 
     minor children, whose authority would take effect upon--
       (1) the death of the parent;
       (2) the mental incapacity of the parent; or
       (3) the physical debilitation and consent of the parent.

     SEC. 305. CLARIFICATION OF ELIGIBLE POPULATION FOR 
                   INDEPENDENT LIVING SERVICES.

       Section 477(a)(2)(A) of the Social Security Act (42 U.S.C. 
     677(a)(2)(A)) is amended by inserting ``(including children 
     with respect to whom such payments are no longer being made 
     because the child has accumulated assets, not to exceed 
     $5,000, which are otherwise regarded as resources for 
     purposes of determining eligibility for benefits under this 
     part)'' before the comma.

     SEC. 306. COORDINATION AND COLLABORATION OF SUBSTANCE ABUSE 
                   TREATMENT AND CHILD PROTECTION SERVICES.

       (a) Study and Report on Sources of Support for Substance 
     Abuse Prevention and Treatment for Parents and Children and 
     Collaboration Among State Agencies.--
       (1) Study.--Not later than 12 months after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall--
       (A) prepare an inventory of all Federal and State programs 
     that may provide funds for substance abuse prevention and 
     treatment services for families receiving services directly 
     or through grants or contracts from public child welfare 
     agencies; and
       (B) examine--
       (i) the availability and results of joint prevention and 
     treatment activities conducted by State substance abuse 
     prevention and treatment agencies and State child welfare 
     agencies; and
       (ii) how such agencies (jointly or separately) are 
     responding to and addressing the needs of infants who are 
     exposed to substance abuse.
       (2) Report to congress.--Not later than 18 months after the 
     date of enactment of this Act, the Comptroller General of the 
     United States shall submit to the appropriate committees of 
     Congress a report on the study conducted under paragraph (1). 
     Such report shall include--
       (A) a description of the extent to which clients of child 
     welfare agencies have substance abuse treatment needs, the 
     nature of those needs, and the extent to which those needs 
     are being met;
       (B) a description of the barriers that prevent the 
     substance abuse treatment needs of clients of child welfare 
     agencies from being treated appropriately;
       (C) a description of the collaborative activities of State 
     child welfare and substance abuse prevention and treatment 
     agencies to jointly assess clients' needs, fund substance 
     abuse prevention and treatment, train and consult with staff, 
     and evaluate the effectiveness of programs serving clients in 
     both agencies' caseloads;
       (D) a summary of the available data on the treatment and 
     cost-effectiveness of substance abuse treatment services for 
     clients of child welfare agencies; and
       (E) recommendations, including recommendations for Federal 
     legislation, for addressing the needs and barriers, as 
     described in subparagraphs (A) and (B), and for promoting 
     further collaboration of the State child welfare and 
     substance abuse prevention and treatment agencies in meeting 
     the substance abuse treatment needs of families.
       (b) Priority in Providing Substance Abuse Treatment.--
     Section 1927 of the Public Health Service Act (42 U.S.C. 
     300x-27) is amended--
       (1) in the heading, by inserting ``AND CARETAKER PARENTS'' 
     after ``WOMEN''; and
       (2) in subsection (a)--
       (A) in paragraph (1)--
       (i) by inserting ``all caretaker parents who are referred 
     for treatment by the State or local child welfare agency and 
     who'' after ``referred for and''; and
       (ii) by striking ``is given'' and inserting ``are given''; 
     and
       (B) in paragraph (2)--
       (i) by striking ``such women'' and inserting ``such 
     pregnant women and caretaker parents''; and
       (ii) by striking ``the women'' and inserting ``the pregnant 
     women and caretaker parents''.
       (c) Foster Care Payments for Children With Parents in 
     Residential Facilities.--Section 472(b) of the Social 
     Security Act (42 U.S.C. 672(b)) is amended--
       (1) in paragraph (1), by striking ``or'' at the end;
       (2) in paragraph (2), by striking the period and inserting 
     ``, or''; and
       (3) by adding at the end the following:
       ``(3) placed with the child's parent in a residential 
     program that provides treatment and other necessary services 
     for parents and children, including parenting services, 
     when--
       ``(A) the parent is attempting to overcome--
       ``(i) a substance abuse problem and is complying with an 
     approved treatment plan;
       ``(ii) being a victim of domestic violence;
       ``(iii) homelessness;
       ``(iv) special needs resulting from being a teenage parent; 
     or
       ``(v) post-partum depression;
       ``(B) the safety of the child can be assured;
       ``(C) the range of services provided by the program is 
     designed to appropriately address the needs of the parent and 
     child;
       ``(D) the goal of the case plan for the child is to try to 
     reunify the child with the family within a specified period 
     of time;
       ``(E) the parent described in subparagraph (A)(i) has not 
     previously been treated in a residential program serving 
     parents and their children together; and
       ``(F) the amount of foster care maintenance payments made 
     to the residential program on behalf of such child do not 
     exceed the amount of such payments that would otherwise be 
     made on behalf of the child.''.

     SEC. 307. REAUTHORIZATION AND EXPANSION OF FAMILY 
                   PRESERVATION AND SUPPORT SERVICES.

       (a) Reauthorization of Family Preservation and Support 
     Services.--
       (1) In general.--Section 430(b) of the Social Security Act 
     (42 U.S.C. 629(b)) is amended--
       (A) in paragraph (4), by striking ``or'' at the end;
       (B) in paragraph (5), by striking the period and inserting 
     a semicolon; and
       (C) by adding at the end the following:
       ``(6) for fiscal year 1999, $275,000,000;
       ``(7) for fiscal year 2000, $295,000,000;
       ``(8) for fiscal year 2001, $315,000,000;
       ``(9) for fiscal year 2002, $335,000,000; and
       ``(10) for fiscal year 2003, $355,000,000.''.
       (2) Conforming amendment.--Section 430(d)(1) of the Social 
     Security Act (42 U.S.C. 630(d)(1)) is amended by striking 
     ``and 1998'' and inserting ``1998, 1999, 2000, 2001, 2002, 
     and 2003''.
       (b) Expansion for Time-Limited Family Reunification 
     Services.--
       (1) Addition to state plan; minimum spending requirement.--
     Section 432 of the Social Security Act (42 U.S.C. 629b) is 
     amended--
       (A) in subsection (a)--
       (i) in paragraph (4), by striking ``and community-based 
     family support services with significant portions'' and 
     inserting ``, community-based family support services, and 
     time-limited family reunification services, with not less 
     than 25 percent''; and
       (ii) in paragraph (5)(A), by striking ``and community-based 
     family support services'' and inserting ``, community-based 
     family support services, and time-limited family 
     reunification services''; and
       (B) in subsection (b)(1), by striking ``and family 
     support'' and inserting ``, family support, and family 
     reunification services''.
       (2) Definition of time-limited family reunification 
     services.--Section 431(a) of the Social Security Act (42 
     U.S.C. 631(a)) is amended--
       (A) by redesignating paragraphs (5) and (6) as paragraphs 
     (6) and (7), respectively; and

[[Page S9651]]

       (B) by inserting after paragraph (4) the following:
       ``(5) Time-limited family reunification services.--
       ``(A) In general.--The term `time-limited family 
     reunification services' means the services and activities 
     described in subparagraph (B) that are provided to a child 
     that is removed from the child's home and placed in a foster 
     family home or a child care institution and to the parents or 
     primary caregiver of such a child, in order to facilitate the 
     reunification of the child safely and appropriately within a 
     timely fashion, but only during the 1-year period that begins 
     on the date that the child is removed from the child's home.
       ``(B) Services and activities described.--The services and 
     activities described in this subparagraph are the following:
       ``(i) Individual, group, and family counseling.
       ``(ii) Inpatient, residential, or outpatient substance 
     abuse treatment services.
       ``(iii) Mental health services.
       ``(iv) Assistance to address domestic violence.
       ``(v) Transportation to or from any of the services and 
     activities described in this subparagraph.''.
       (3) Additional conforming amendments.--
       (A) Purposes.--Section 430(a) of the Social Security Act 
     (42 U.S.C. 629(a)) is amended by striking ``and community-
     based family support services'' and inserting ``, community-
     based family support services, and time-limited family 
     reunification services''.
       (B) Evaluations.--Subparagraphs (B) and (C) of section 
     435(a)(2) of the Social Security Act (42 U.S.C. 629d(a)(2)) 
     are each amended by striking ``and family support'' each 
     place it appears and inserting ``, family support, and family 
     reunification''.

     SEC. 308. INNOVATION GRANTS TO REDUCE BACKLOGS OF CHILDREN 
                   AWAITING ADOPTION AND FOR OTHER PURPOSES.

       Part E of title IV of the Social Security Act (42 U.S.C. 
     670 et seq.) is amended by inserting after section 477, the 
     following:

     ``SEC. 478. INNOVATION GRANTS.

       ``(a) Authority To Make Grants.--The Secretary may make 
     grants, in amounts determined by the Secretary, to States 
     with approved applications described in subsection (c), for 
     the purpose of carrying out the innovation projects described 
     in subsection (b).
       ``(b) Innovation Projects Described.--The innovation 
     projects described in this subsection are projects that are 
     designed to achieve 1 or more of the following goals:
       ``(1) Reducing a backlog of children in long-term foster 
     care or awaiting adoption placement.
       ``(2) Ensuring, not later than 1 year after a child enters 
     foster care, a permanent placement for the child.
       ``(3) Identifying and addressing barriers that result in 
     delays to permanent placements for children in foster care, 
     including inadequate representation of child welfare agencies 
     in termination of parental rights and adoption proceedings, 
     and other barriers to termination of parental rights.
       ``(4) Implementing or expanding community-based permanency 
     initiatives, particularly in communities where families 
     reflect the ethnic and racial diversity of children in the 
     State for whom foster and adoptive homes are needed.
       ``(5) Developing and implementing community-based child 
     protection activities that involve partnerships among State 
     and local governments, multiple child-serving agencies, the 
     schools, and community leaders in an attempt to keep children 
     free from abuse and neglect.
       ``(6) Establishing new partnerships with businesses and 
     religious organizations to promote safety and permanence for 
     children.
       ``(7) Assisting in the development and implementation of 
     the State guidelines described in section 471(a)(10).
       ``(8) Developing new staffing approaches to allow the 
     resources of several States to be used to conduct 
     recruitment, placement, adoption, and post-adoption services 
     on a regional basis.
       ``(9) Any other goal that the Secretary specifies by 
     regulation.
       ``(c) Application.--An application for a grant under this 
     section may be submitted for fiscal year 1998 or 1999 and 
     shall contain--
       ``(1) a plan, in such form and manner as the Secretary may 
     prescribe, for an innovation project described in subsection 
     (b) that will be implemented by the State for a period of not 
     more than 5 consecutive fiscal years, beginning with fiscal 
     year 1998 or 1999, as applicable;
       ``(2) an assurance that no waivers from provisions in law, 
     as in effect at the time of the submission of the 
     application, are required to implement the innovation 
     project; and
       ``(3) such other information as the Secretary may require 
     by regulation.
       ``(d) Duration.--An innovation project approved under this 
     section shall be conducted for not more than 5 consecutive 
     fiscal years, except that the Secretary may terminate a 
     project before the end of the period originally approved if 
     the Secretary determines that the State conducting the 
     project is not in compliance with the terms of the plan and 
     application approved by the Secretary under this section.
       ``(e) Matching Requirement.--A State shall not receive a 
     grant under this section unless, for each year for which a 
     grant is awarded, the State agrees to match the grant with $1 
     for every $3 received.
       ``(f) Nonsupplanting.--Any funds received by a State under 
     a grant made under this section shall supplement but not 
     replace any other funds that may be available for the same 
     purpose in the localities involved.
       ``(g) Evaluations and Reports.--
       ``(1) State evaluations.--Each State administering an 
     innovation project under this section shall--
       ``(A) provide for ongoing and retrospective evaluation of 
     the project, meeting such conditions and standards as the 
     Secretary may require; and
       ``(B) submit to the Secretary such reports, at such times, 
     in such format, and containing such information as the 
     Secretary may require.
       ``(2) Reports to congress.--The Secretary shall, on the 
     basis of reports received from States administering projects 
     under this section, submit interim reports, and, not later 
     than 6 months after the conclusion of all projects 
     administered under this section, a final report to Congress. 
     A report submitted under this subparagraph shall contain an 
     assessment of the effectiveness of the State projects 
     administered under this section and any recommendations for 
     legislative action that the Secretary considers appropriate.
       ``(h) Regulations.--Not later than 60 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     final regulations for implementing this section.
       ``(i) Authorization of Appropriations.--There is authorized 
     to be appropriated to make grants under this section not more 
     than $50,000,000 for each of fiscal years 1998 through 
     2003.''.
                        TITLE IV--MISCELLANEOUS

     SEC. 401. PRESERVATION OF REASONABLE PARENTING.

       Nothing in this Act is intended to disrupt the family 
     unnecessarily or to intrude inappropriately into family life, 
     to prohibit the use of reasonable methods of parental 
     discipline, or to prescribe a particular method of parenting.

     SEC. 402. REPORTING REQUIREMENTS.

       Any information required to be reported under this Act 
     shall be supplied to the Secretary of Health and Human 
     Services through data meeting the requirements of the 
     Adoption and Foster Care Analysis and Reporting System 
     established pursuant to section 479 of the Social Security 
     Act (42 U.S.C. 679), to the extent such data is available 
     under that system. The Secretary shall make such 
     modifications to regulations issued under section 479 of such 
     Act with respect to the Adoption and Foster Care Analysis and 
     Reporting System as may be necessary to allow States to 
     obtain data that meets the requirements of such system in 
     order to satisfy the reporting requirements of this Act.

     SEC. 403. REPORT ON FIDUCIARY OBLIGATIONS OF STATE AGENCIES 
                   RECEIVING SSI PAYMENTS.

       Not later than 12 months after the date of enactment of 
     this Act, the Commissioner of Social Security shall submit a 
     report to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 
     concerning State or local child welfare service agencies that 
     act as representative payees on behalf of children under the 
     care of such agencies for purposes of receiving supplemental 
     security income payments under title XVI of the Social 
     Security Act (42 U.S.C. 1381 et seq.) (including 
     supplementary payments pursuant to an agreement for Federal 
     administration under section 1616(a) of the Social Security 
     Act and payments pursuant to an agreement entered into under 
     section 212(b) of Public Law 93-66) for the benefit of such 
     children. Such report shall include an examination of the 
     extent to which such agencies--
       (1) have complied with the fiduciary responsibilities 
     attendant to acting as a representative payee under title XVI 
     of such Act; and
       (2) have received supplemental security income payments on 
     behalf of children that the agencies cannot identify or 
     locate, and if so, the disposition of such payments.

     SEC. 404. ALLOCATION OF ADMINISTRATIVE COSTS OF DETERMINING 
                   ELIGIBILITY FOR MEDICAID AND TANF.

       (a) Medicaid.--Section 1903 of the Social Security Act (42 
     U.S.C. 1396b) is amended--
       (1) in subsection (a)(7), by striking ``section 
     1919(g)(3)(B)'' and inserting ``subsection (x) and section 
     1919(g)(3)(C)''; and
       (2) by adding at the end the following:
       ``(x)(1) Notwithstanding any other provision of law, for 
     purposes of determining the amount to be paid to a State 
     under subsection (a)(7) for quarters in any fiscal year, 
     beginning with fiscal year 1997, amounts expended for the 
     proper and efficient administration of the State plan under 
     this title (including under any waiver of such plan) shall 
     not include common costs related to determining the 
     eligibility under such State plan (or waiver) of individuals 
     in a household applying for or receiving benefits under the 
     State program under part A of title IV unless the State 
     elects the option described in paragraph (2).
       ``(2) A State that meets the requirements of paragraph (3) 
     may elect to allocate equally between the State program under 
     part A of title IV and the State plan under this title 
     (including any waiver of such plan) the administrative costs 
     associated with such programs that are incurred in serving 
     households and individuals eligible or applying for benefits 
     under the State program under part A of title IV and under 
     the State plan (or under a waiver of such plan) under this 
     title.

[[Page S9652]]

       ``(3) A State meets the requirements of this paragraph if 
     the Secretary determines that--
       ``(A) the State conforms the eligibility rules and 
     procedures of, and integrates the administration of the 
     eligibility procedures of, the State program funded under 
     part A of title IV and the State plan under this title 
     (including any waiver of such plan); and
       ``(B) the State uses the same application form for 
     assistance described in section 1931(e).''.
       (b) TANF.--
       (1) In general.--Section 408(a) of the Social Security Act 
     (42 U.S.C. 608(a)) is amended by adding at the end the 
     following:
       ``(12) Designation of grants under this part in allocating 
     administrative costs.--Subject to section 1903(x), a State to 
     which a grant is made under section 403 shall designate the 
     program funded under this part as the primary program for the 
     purpose of allocating common administrative costs incurred in 
     serving households eligible or applying for benefits under 
     such program and any other Federal means-tested public 
     benefit program administered by the State.''.
       (2) Effective date.--The amendment made by paragraph (1) to 
     section 408 of the Social Security Act (42 U.S.C. 608) shall 
     take effect as if included in the enactment of section 103(a) 
     of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
     2112).
                        TITLE V--EFFECTIVE DATE

     SEC. 501. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     the amendments made by this Act shall take effect on October 
     1, 1997.
       (b) Delay Permitted if State Legislation Required.--In the 
     case of a State plan under part B or E of title IV of the 
     Social Security Act which the Secretary of Health and Human 
     Services determines requires State legislation (other than 
     legislation appropriating funds) in order for the plan to 
     meet the additional requirements imposed by the amendments 
     made by this Act, the State plan shall not be regarded as 
     failing to comply with the requirements of such part solely 
     on the basis of the failure of the plan to meet such 
     additional requirements before the first day of the first 
     calendar quarter beginning after the close of the first 
     regular session of the State legislature that begins after 
     the date of the enactment of this Act. For purposes of the 
     previous sentence, in the case of a State that has a 2-year 
     legislative session, each year of such session shall be 
     deemed to be a separate regular session of the State 
     legislature.

  Mr. CRAIG. Mr. President, I am pleased to join my distinguished 
colleagues in introducing PASS, the Promotion of Adoption, Safety and 
Support for Abused and Neglected Children Act.
  Foster care was never intended to be anything more than a temporary 
refuge for children from troubled families. Yet all too often, 
``temporary'' becomes ``permanent,'' and decisions made for children in 
the system are driven by considerations other than the child's own 
well-being. Tragically, it's the children who ultimately pay for the 
flaws in the system--sometimes with their very lives.
  The problem does not lie with the vast majority of foster parents, 
relatives, and caseworkers who work valiantly to provide the care 
needed by these children. Rather, the problem is the system itself, and 
incentives built into it, that frustrate the goal of moving children to 
permanent, safe, loving homes.
  PASS will fundamentally shift the foster care paradigm, without 
destroying what is good and necessary in the system. For the first 
time, a child's health and safety will have to be the paramount 
concerns in any decisions made by the State. for the first time, 
efforts to find an adoptive or other permanent home will not only be 
required but documented and rewarded. For the first time, steps will 
have to be taken to free a child for adoption or other permanent 
placement if the child has been languishing in foster care for a year 
or more.
  These are only some of the many critical reforms in Pass, designed to 
promote adoption, ensure the safety of abused and neglected children, 
accelerate permanent placement, and fix flaws in the system. The 
package, taken as a whole, will make an enormous difference in the 
lives of thousands of children.
  This comprehensive bill is the product of extensive discussion and 
negotiation among Senators representing a veritable universe of 
viewpoints on adoption and foster care reform. Although we may have 
come to the table from different perspectives, we agreed on a 
fundamental principle: that reforms are needed to ensure that a child's 
health, safety and permanency are paramount concerns of the foster care 
system. In the end, on behalf of the children, we came together and 
resolved our differences. PASS is the result, and I commend it to all 
our colleagues.
  Change is needed now; every day of delay is an eternity to a child 
unfairly bearing the burdens of the current system. I hope every 
Senator will take a careful look at PASS, and work with us to achieve 
true reforms in this area.
  Mr. ROCKEFELLER. Mr. President, abused and neglected children are 
among the most vulnerable and poorly protected members of American 
society. Too many of these children are left to wander aimlessly 
through the foster care system--a system which, from the outset, was 
never designed or intended to be a permanent home. We can no longer 
continue to sentence these foster children to endless waits--a legal 
limbo in which they no longer feel welcome in their biological families 
but are unable to be adopted into new and loving homes. Despite the 
thousands of dedicated foster parents and child welfare workers who 
strive daily to effectively address the many needs of abused and 
neglected children in an overloaded system, we know that nothing can 
replace a permanent and loving home made by adults who can be counted 
on without condition or limitation.
  Acknowledging our collective obligation to allow no child to fall 
between the cracks, I am proud to join together with Senator John 
Chafee and my other colleagues in a truly extraordinary bipartisan 
effort to introduce the Promotion of Adoption Safety and Support for 
Abused and Neglected Children Act [PASS]. Under Senator Chafee's 
committed leadership on children's issues, this bipartisan group has 
worked extremely hard to forge an effective compromise--a compromise 
which offers concrete, practical strategies to provide permanency in 
lives of foster children and to ensure that health and safety are built 
into every level of America's abuse and neglect system. Central to this 
entire effort was also Senator Larry Craig, who brought focus and 
determination to the sometimes difficult bipartisan negotiations. I 
would like to take this opportunity to extend my most sincere thanks to 
my other colleagues, Senators Jeffords, DeWine, Coats, Bond, Landrieu, 
and Levin for making possible this outstanding example of bipartisan 
teamwork.
  The Promotion of Adoption Safety and Support for Abused and Neglected 
Children Act will fundamentally shift the focus of the foster care 
system by insisting that a child's health, safety, and opportunity to 
find a permanent home should be the paramount concern when a State 
makes any decision concerning the well-being of abused and neglected 
children. As a comprehensive package based on bipartisan consensus, 
PASS will accelerate and improve the response to these concerns, 
promote safe adoptions, and restore safety and permanency to the lives 
of abused and neglected children.
  The main objective of this bill is to move abused and neglected 
children into adoptive or other permanent homes and to do so more 
quickly and more safely than ever before. Right now, many foster care 
children are forced to wait years before being adopted--even in cases 
where loving families are ready and willing to adopt them. Some 
children lose their chance for adoption altogether. While PASS 
preserves the requirement to reunify families where appropriate, it 
does not require States to use reasonable efforts to reunify families 
that have been irreparably broken by abandonment, torture, physical 
abuse, sexual abuse, murder, manslaughter, and sexual assault. The PASS 
Act maintains the delicate balance in protecting the rights of parents 
and families while placing primary focus where it should be: on the 
health and safety of child.
  PASS encourages adoptions by rewarding States financial incentives 
for facilitating adoption for all foster children--especially those 
with special needs which, sadly, make them more difficult to place. For 
those situations where children cannot go home again, PASS requires 
States to use reasonable efforts to place them into safe adoptive homes 
or into the permanent care of loving relatives. In addition, PASS cuts 
by one-third the time that an abused and neglected child must wait in 
order to be placed in such adoptive homes. In response to a candid and 
focused look at today's foster care crisis,

[[Page S9653]]

the bill also seeks to rescue children from the legal limbo of the 
current system by requiring States to take the necessary legal steps to 
free for adoption those children who have been forced to linger in the 
system for a year or more. PASS also prevents further abuse of children 
in the foster care system by requiring criminal records checks for all 
foster and adoptive parents. PASS is about helping the individual child 
but, equally as importantly, fixing the system.
  It is always the right time to focus on the needs of children--
especially those unfortunate enough to find themselves in the sometimes 
dysfunctional labyrinth of the abuse and neglect system. Unfortunately, 
however, reform has never been more necessary. President Clinton's 
``Adoption 2002 Report'' found that there are currently half a million 
children in temporary foster care placements. One hundred thousand of 
those children should be adopted, but less than half of that number are 
legally eligible to become part of an adoptive family. In my home State 
of West Virginia alone, referrals to Child Protective Services are 
expected to rise to an all-time high of 17,000 this year. Foster care 
placements have jumped from 2,900 children in January 1996 to 3,113 
children in January 1997. These staggering figures reveal a foster care 
crisis of unprecedented proportions.
  PASS is the first step in a vital, ongoing effort to put children at 
the very top of our national agenda. It is time that we provide all 
children with their most profound wish: to live in a safe and loving 
home with caretakers who treat them with respect and dignity. If we are 
unable to address this most fundamental need, these children will not 
be able to grow, learn, and provide a secure place for their own 
families. It is unthinkable to deny abused and neglected children such 
vital opportunities.
  Mr. BOND. Mr. President, there may not be many things in life on 
which there is a consensus but I think we all can agree on the vital 
importance of ensuring the safety of abused and neglected children and 
moving them out of the foster care system more rapidly and into 
permanent homes. I am proud to join with my colleagues in this 
bipartisan effort to develop the new, consensus legislation called the 
Promotion of Adoption, Safety, and Support for Abused and Neglected 
Children [PASS] Act.
  The reality is that all too often children simply languish in the 
foster care system. Nationwide, there are more than 500,000 children in 
foster care. In Missouri, there are 10,361 children in the foster care 
system. Since 1975, the number of reported incidents of abuse and 
neglect has increased from less than 10,000 to 52,964 in 1995, an all-
time high and frightening statistic.
  Federal law has hindered State child welfare agencies from moving 
more quickly to place children who are in foster care because of abuse 
and neglect into permanent homes.
  The PASS Act will provide incentives to increase adoptions and reduce 
by one third the amount of time a child lingers in foster care waiting 
for a permanency plan, with a review required every six months so that 
foster care is truly viewed as a temporary care system for our most 
vulnerable children.
  The bill clarifies ``reasonable efforts'' and establishes a federal 
standard so that the health and safety of the child is the primary 
concern, above family reunification interest. There are some parents 
for whom reunification with their children is not reasonable--certainly 
sustained abuse or neglect or danger of physical harm would fit that 
category. In those cases, we need to move swiftly to get the children 
out of harm's way and then quickly to get them into permanent homes.
  Just count the number of cases of child abuse and neglect that has 
been reported over the past few months. One too many! A little, five-
year old Kansas City girl named Angel Hart was beaten and drowned to 
death by her mother's boyfriend because she could not recite the 
alphabet.
  Under the PASS Act, States are encouraged to enact laws that would 
make it easier to terminate parental rights in abusive cases and 
prevent abused and neglected children from returning to homes in which 
their health and safety are at risk. In addition, this legislation 
promotes adoption of all special needs children and ensures health 
coverage for special needs children who are adopted.
  I am very optimistic that Congress will move this bill forward this 
year. There are far too many innocent lives at stake and no child 
should be denied a loving home. Unfortunately, for thousands of kids 
now caught in permanent limbo in the foster care system, that is 
exactly what is happening. The PASS Act will improve child safety and 
permanency, enabling some children to return home safely and others to 
move to adoptive families more quickly.
                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. Gorton, Mr. Hollings, and Mr. 
        Ford):

  S. 1196. A bill to amend title 49, United States Code, to require the 
National Transportation Safety Board and individual foreign air 
carriers to address the needs of families of passengers involved in 
aircraft accidents involving foreign air carriers; to the Committee on 
Commerce, Science, and Transportation.


               THE FOREIGN AIR CARRIER FAMILY SUPPORT ACT

  Mr. McCAIN. Mr. President, I am pleased to join with my colleagues, 
Senator Gorton, Senator Hollings and Senator Ford, to introduce the 
Foreign Air Carrier Family Support Act. This bill would require foreign 
air carriers to implement disaster family assistance plans should an 
accident involving their carriers occur on American soil. I would like 
to recognize my colleagues in the House, especially Representative 
Underwood from Guam, who introduced the companion bill in the House of 
Representatives earlier this week.

  The legislation, if enacted, would build on the family assistance 
provisions that we enacted last year as part of the Federal Aviation 
Reauthorization Act of 1996. Let me be clear about one point. Domestic 
air carriers are already operating under the same legislative 
requirements set out in the legislation before us today.
  The need for extending the requirements to foreign air carriers came 
into a clear focus with the tragic crash of Korean Air Flight 801 in 
Guam. I do not intend to single out Korean Air for blame. An accident 
of this magnitude, involving the loss of more than 200 lives, in rough 
and isolated terrain, is bound to create mass confusion and hysteria. 
Even so, coverage of the accident made us all acutely aware of the 
criticisms made by the family members, and the pain they suffered in 
relation to the search and rescue efforts, as well as the media 
involvement following the accident.
  The U.S. civil, military and Federal personnel at the scene should be 
commended for their contributions toward the search and rescue efforts. 
I also praise their attempts to console and assist family members on 
Guam, as well as those who traveled to the accident site from South 
Korea and the continental United States. Without a doubt, though, their 
efforts would have been more productive had there been a prearranged 
plan in effect. Greater coordination would have made things easier not 
only for the victims' family members, but also for the National 
Transportation Safety Board [NTSB] officials and military personnel who 
were on-site and who had to respond immediately in an emotional and 
potentially hazardous situation.
  The Foreign Air Carrier Family Support Act would require a foreign 
air carrier to provide the Secretary of Transportation and the Chairman 
of the NTSB with a plan for addressing the needs of the families of 
passengers involved in an aircraft accident that involves an aircraft 
under the control of that foreign air carrier, and that involves a 
significant loss of life. The Secretary of Transportation could not 
grant permission for the foreign air carrier to operate in the United 
States unless the Secretary had received a sufficient family assistance 
plan.
  The family assistance plan required of the foreign air carrier would 
include a reliable, staffed toll-free number for the passengers' 
families, and a process for expedient family notification prior to 
public notice of the passengers' identities. An NTSB employee would 
serve as director of family support services, with the assistance of an 
independent nonprofit organization with experience in disasters and 
post-trauma communication with families. The foreign air

[[Page S9654]]

carrier would provide these family liaisons with updated passenger 
lists following the crash. The legislation would require that the 
carrier consult and coordinate with the families on the disposition of 
remains and personal effects.
  This is important legislation. It is critical, given the increasing 
global nature of aviation. As we work to promote and implement open 
skies agreements with foreign countries, these countries' carriers will 
have increasing freedom to operate in the United States and its 
territories.
  I plan to bring this legislation before the Commerce Committee for 
markup as early as next week. Unfortunate but true, we have already 
seen the positive effects of the congressionally mandated family 
assistance provisions, as they relate to domestic air carriers. I urge 
my colleagues to support extending these assistance provisions to 
foreign carriers operating in the United States.
  Mr. GORTON. Mr. President, I rise to join my distinguished 
colleagues, Senator McCain, Senator Hollings, and Senator Ford to 
introduce the Foreign Air Carrier Family Support Act. This act will 
provide assistance to the families of aviation accident victims who 
were flying on foreign airlines operating in the United States, 
assistance that is now provided in the event of the crash of a domestic 
airline. I would also take this opportunity to recognize Representative 
Underwood of Guam who recently introduced the companion bill in the 
House with Representative Duncan and Representative Lipinski.
  The recent tragic crash of Korean Air Flight 801 in Guam, which took 
the lives of more than 200 people, clearly shows the need for this 
legislation. As we all know, the news of an air disaster spreads 
quickly around the world, with pictures and reports about the crash. 
The media is often at the sight of crash as soon as, if not before, the 
rescue teams.
  You can imagine how devastating it was for the family members of 
those flying on Flight 801, as it would be for any family members, to 
receive media reports about a crash just after it happened. Anyone in 
such a situation wants to know as quickly as possible what has happened 
to their loved ones. That is why the Congress passed the Aviation 
Disaster Family Assistance Act of 1996, which obligates domestic air 
carriers to have disaster support plans in place. It is why we now need 
to extend this type of plan to foreign air carriers in the event that 
they have an accident on American soil.
  Despite the best efforts of rescue personnel and National 
Transportation Safety Board personnel, it is clear that family members 
would have been better served if an accident plan had been in effect 
following the crash of flight 801. Coverage of the accident made us 
aware that family members suffered a great deal of pain in relation to 
the search and rescue efforts. We have, sadly enough, already seen the 
positive effects of family assistance plans for the accidents of 
domestic air carriers.
  Simply stated, the bill would require that following an accident 
resulting in a significant loss of life, the foreign airline would have 
a plan in place to publicize a toll-free number, have staff available 
to take calls, have an up-to-date list of passengers, and have a 
process to notify families--in person if possible--before any public 
notification that a family member was onboard the crashed aircraft. A 
National Transportation Safety Board employee would serve as the 
director of family support services, with the assistance of an 
independent nonprofit organization with experience in disasters and 
post-trauma communication with families. The legislation also requires 
the Secretary of Transportation to refuse a foreign air carrier a 
permit to operate in the U.S. if the carrier does not have a plan in 
place.
  As Senator McCain indicated, he plans to bring this legislation 
before the Commerce Committee for markup as early as next week. I will 
work with Senator McCain to see that we move this legislation as 
expeditiously as possible.
  I hope that it will never be necessary for the plans required under 
this legislation to be used. However, should a foreign air carrier have 
an accident in the United States, we should extend to the family 
members of victims the consideration and compassion that this 
legislation provides. I would urge my colleagues to join me in 
supporting this bill.
  Mr. HOLLINGS. Mr. President, I rise to join my colleagues, Senators 
McCain, Gorton, and Ford in introducing the Foreign Air Carrier Family 
Support Act, which will assign to foreign air carriers the statutory 
duty to provide support to the families of victims of aircraft 
accidents.
  Last month, 228 people died in the crash of Korean Air flight 801 in 
Guam. The United States, as a policy matter, has decided that our air 
carriers must be prepared to work with the families of victims. In 
fact, we require our carriers to file plans covering items like toll-
free phone lines, notification of families of the accident, 
consultation on the disposition of the remains, and the return of 
family possessions.
  These changes came about following the crash of TWA flight 800 last 
July. It was clear, following the crash, that the families of the 
victims needed assistance, and in a coordinated way. The National 
Transportation Safety Board representatives worked night and day to let 
the families know what was going on, but the carriers, too, have a 
responsibility and those responsibilities, for U.S. carriers, were 
statutorily imposed. The bill today will make sure that foreign 
carriers like Korean Air will have similar responsibilities for crashes 
that occur in the United States.
  I urge my colleagues to support the bill.
  Mr. FORD. Mr. President, I want to join my colleagues in sponsoring 
the Foreign Air Carrier Family Support Act. The bill, which I hope will 
be considered shortly by the Commerce Committee, is intended to close a 
loophole in law. Last year, we passed legislation requiring U.S. air 
carriers to file plans with the Secretary and NTSB outlining how they 
would address the needs of the families of victims of aviation 
disasters. The bill today will require foreign airlines that serve the 
United States. In light of the tragic crash in Guam, this bill will 
make sure that carriers like Korean Air are prepared to deal with the 
families of victims when a crash occurs on U.S. soil.
  The bill is supported by the administration and I hope that we can 
pass it quickly.
                                 ______
                                 
      By Mrs. FEINSTEIN:
  S. 1197. A bill to reform the financing of Federal elections; to the 
Committee on Rules and Administration.


                THE CAMPAIGN FINANCE REFORM ACT OF 1997

  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
on campaign spending reform.
  I recognize that this is not the first bill introduced in Congress on 
this issue. In fact, at last count, there were 85 bills introduced in 
either the House or the Senate on campaign finance reform--17 of them 
in the Senate alone.
  Frankly, I would be quite satisfied if the bill I am introducing 
today was tabled in favor of a floor vote on the McCain-Feingold bill, 
of which I am a cosponsor.
  Last week, all 45 Democrats in the Senate pledged to vote for McCain-
Feingold if given the opportunity. Combined with the three Republican 
cosponsors of the bill, this legislation needs only three more votes 
for passage. Surely there are three more Republicans who will support 
this bill.
  But we are not there yet, and I believe strongly that action must be 
taken on this subject now. Today. This Congress. This session.
   This Congress has spent $10 million in taxpayer funds 
investigating wrongdoing in the last election cycle.
   Eighty-four Members of this Congress have called for special 
prosecutors.
   We've spent 6 months in public hearings decrying how bad the 
system is, how bad soft money is, and how badly we need reform.
  There is nothing to hide behind if this Congress does not act on 
reform.
  I do not believe Members of this body can or should be able to take a 
pass on reform based on disagreements with McCain-Feingold, or based on 
an all-or-nothing attitude. Therefore, I offer my legislation as a bill 
that contains the common denominators--the basic elements--of reform 
that many of us profess to agree on.
  Let me state clearly; I am a cosponsor of McCain-Feingold and will 
vote

[[Page S9655]]

for McCain-Feingold if it comes to the floor for approval, as I believe 
it should.
  My legislation is an alternative, focussed on what I, and what most 
of my colleagues, have said are the most pressing areas in need of 
reform: the elimination of soft money, greater disclosure on 
contributions, and regulation of dollars now unregulated.
  The cornerstone of any campaign reform bill must address the issue of 
soft money. After all the charges and disclosures about the abuse of 
soft money in federal campaigns, we would be hard-pressed to explain to 
the public why we did not take action at least on this issue.
  However, just banning soft money--for which there appears to be 
sufficient support in both Houses--cannot be our only action. A simple 
ban on soft money will force the shifting of these dollars into 
unregulated independent expenditure campaigns where huge amounts of 
anonymous money is used to influence campaigns and--most commonly--to 
attack candidates.
  Between $135 and $150 million was spent on so-called issue ads in 
1996--about 35 percent of the $400 million spent on all campaign 
advertising in 1996, according to a new study released yesterday by the 
Annenberg Center at the University of Pennsylvania. The study--the most 
comprehensive on this issue to date--showed that, compared with other 
forms of political advertising and coverage, the content of issue ads 
were the highest in ``pure attack.''
  To this end, I have prepared this small package of measures--many of 
which appear in other bills--which, taken together, is a step on the 
road to spending reform, and would be a solid step forward in the 
battle to decrease the flood of unregulated money in campaigns.
  Specifically, this bill would:
  Ban soft money to national parties. During the last election, both 
parties spent a combined total of over $270 million in soft money. 
Democrats spent $122 million and Republicans spent almost $150 million. 
Over the first 6 months of this year, both parties have raised $34 
million in soft money, with Republicans out-pacing Democrats $23 to $11 
million.
  Change the definition of ``express advocacy'' to include any 
communication that uses a candidate's name or picture within 60 days of 
an election as ``express advocacy''. Only ``hard'' dollars--limited in 
amount and fully disclosed--could be used to fund independent campaigns 
of a candidate's name or image is used in express advocacy for or 
against a candidate.
  Change the personal contribution limit from $1,000 per election to 
$2,000 per election and index those contribution limits for inflation 
in the future. The $1,000 per election limits have not been changed 
since 1974. That was 23 years ago and, as every candidate knows, the 
cost of printing postage and buying media has more than quadrupled in 
that time.
  Increase the disclosure requirements so that any group or individual 
spending more than $10,000 up to 20 days prior to an election would 
have to report that to the FEC within 48 hours. This threshold drops to 
$1,000 within 20 days of an election.
  Implement a policy whereby if a person is not eligible to vote in 
U.S. elections, he or she would not be permitted to contribute to 
candidates or parties.
  Lower the threshold for reporting contributions to candidates from 
$200 to $50. This increases disclosure.
  Allow the FEC to seek an injunction in U.S. District Court if it has 
evidence that a violation of campaign laws is about to occur.
  Permit the FEC to refer matters to the Attorney General for 
prosecution if any significant evidence of criminal wrongdoing exists.
  I believe a bill containing these elements is doable this year and I 
offer it as a package for the consideration of this body.
  In closing, it is my sincere hope we will move to enact meaningful 
campaign finance reform this year. If we can't act now, after all that 
has been said and done this year, I'm afraid we never will. The 
American people deserve more than lip service on campaign reform.
  I implore the majority leader to bring the McCain-Feingold bill to 
the floor and allow us to debate it, amend it, and vote on it. If we 
can't agree on the McCain-Feingold bill, then let us vote on an 
alternative such as mine. Either way, let us have at it.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1197

       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 ``Bipartisan 
     Campaign Reform Act of 1997''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:
Sec. 1. Short title; table of contents.

        TITLE I--BAN ON SOFT MONEY OF POLITICAL PARTY COMMITTEES

Sec. 101. Soft money of political party committees.
Sec. 102. State party grassroots funds.
Sec. 103. Reporting requirements.

             TITLE II--INDEPENDENT EXPENDITURES; SOFT MONEY

Sec. 201. Express advocacy.
Sec. 202. Reporting requirements for certain independent expenditures.
Sec. 203. Soft money of persons other than political parties.

                         TITLE III--ENFORCEMENT

Sec. 301. Filing of reports using computers and facsimile machines.
Sec. 302. Audits.
Sec. 303. Authority to seek injunction.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Increase in penalty for knowing and willful violations.
Sec. 306. Prohibition of contributions by individuals not qualified to 
              register to vote.
Sec. 307. Use of candidates' names.
Sec. 308. Prohibition of false representation to solicit contributions.
Sec. 309. Expedited procedures.
Sec. 310. Reference of suspected violation to the attorney general.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Contribution limits; indexing.
Sec. 402. Use of contributed amounts for certain purposes.
Sec. 403. Campaign advertising.
Sec. 404. Limit on congressional use of the franking privilege.

        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

Sec. 501. Severability.
Sec. 502. Review of constitutional issues.
Sec. 503. Effective date.
Sec. 504. Regulations.
        TITLE I--BAN ON SOFT MONEY OF POLITICAL PARTY COMMITTEES

     SEC. 101. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

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

     ``SEC. 324. SOFT MONEY OF PARTY COMMITTEES.

       ``(a) National Committees.--
       ``(1) All contributions, donations, transfers, and spending 
     to be subject to this act.--A national committee of a 
     political party (including a national congressional campaign 
     committee of a political party), an entity that is directly 
     or indirectly established, financed, maintained, or 
     controlled by a national committee or its agent, an entity 
     acting on behalf of a national committee, and an officer or 
     agent acting on behalf of any such committee or entity (but 
     not including an entity regulated under subsection (b)) shall 
     not solicit or receive any contributions, donations, or 
     transfers of funds, or spend any funds, that are not subject 
     to the limitations, prohibitions, and reporting requirements 
     of this Act.
       ``(2) Donation limit.--In addition to the amount of 
     contributions that a person may make to a national committee 
     of a political party under section 315, a person may make 
     donations of anything of value to a national committee of a 
     political party (including a national congressional campaign 
     committee of a political party), an entity that is directly 
     or indirectly established, financed, maintained, or 
     controlled by a national committee or its agent, an entity 
     acting on behalf of a national committee, and an officer or 
     agent acting on behalf of any such committee or entity (but 
     not including an entity regulated under subsection (b)) in an 
     aggregate amount not exceeding $25,000 during the 24 months 
     preceding the date of a general election for Federal office.
       ``(b) State, District, and Local Committees.--
       ``(1) In general.--Any amount that is expended or disbursed 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of any such committee or 
     entity) during a calendar year in which a Federal election is 
     held, for any activity that might affect the outcome of a 
     Federal election, including any voter registration or get-
     out-the-vote activity, any generic campaign activity, and any 
     communication that refers to a candidate (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) shall be made from funds subject to 
     the limitations, prohibitions, and reporting requirements of 
     this Act.

[[Page S9656]]

       ``(2) Activity excluded from paragraph (1).--
       ``(A) In general.--Paragraph (1) shall not apply to an 
     expenditure or disbursement made by a State, district, or 
     local committee of a political party for--
       ``(i) a contribution to a candidate for State or local 
     office if the contribution is not designated or otherwise 
     earmarked to pay for an activity described in paragraph (1);
       ``(ii) the costs of a State, district, or local political 
     convention;
       ``(iii) the non-Federal share of a State, district, or 
     local party committee's administrative and overhead expenses 
     (but not including the compensation in any month of any 
     individual who spends more than 20 percent of the 
     individual's time on activity during the month that may 
     affect the outcome of a Federal election) except that for 
     purposes of this paragraph, the non-Federal share of a party 
     committee's administrative and overhead expenses shall be 
     determined by applying the ratio of the non-Federal 
     disbursements to the total Federal expenditures and non-
     Federal disbursements made by the committee during the 
     previous presidential election year to the committee's 
     administrative and overhead expenses in the election year in 
     question;
       ``(iv) the costs of grassroots campaign materials, 
     including buttons, bumper stickers, and yard signs that name 
     or depict only a candidate for State or local office; and
       ``(v) the cost of any campaign activity conducted solely on 
     behalf of a clearly identified candidate for State or local 
     office, if the candidate activity is not an activity 
     described in paragraph (1).
       ``(B) Fundraising costs.--Any amount spent by a national, 
     State, district, or local committee, by an entity that is 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party, or by an 
     agent or officer of any such committee or entity to raise 
     funds that are used, in whole or in part, to pay the costs of 
     an activity described in paragraph (1) shall be made from 
     funds subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(c) Tax-exempt organizations.--A national, State, 
     district, or local committee of a political party (including 
     a national congressional campaign committee of a political 
     party), an entity that is directly or indirectly established, 
     financed, maintained, or controlled by any such national, 
     State, district, or local committee or its agent, an agent 
     acting on behalf of any such party committee, and an officer 
     or agent acting on behalf of any such party committee or 
     entity), shall not solicit any funds for or make any 
     donations to an organization that is exempt from Federal 
     taxation under section 501(c) of the Internal Revenue Code of 
     1986.
       ``(d) Candidates.--
       ``(1) In general.--A candidate, individual holding Federal 
     office, or agent of a candidate or individual holding Federal 
     office shall not--
       ``(A) solicit, receive, transfer, or spend funds in 
     connection with an election for Federal office unless the 
     funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act;
       ``(B) solicit, receive, or transfer funds that are to be 
     expended in connection with any election other than a Federal 
     election unless the funds--
       ``(i) are not in excess of the amounts permitted with 
     respect to contributions to candidates and political 
     committees under section 315(a) (1) and (2); and
       ``(ii) are not from sources prohibited by this Act from 
     making contributions with respect to an election for Federal 
     office; or
       ``(C) solicit, receive, or transfer any funds on behalf of 
     any person that are not subject to the limitations, 
     prohibitions, and reporting requirements of the Act if the 
     funds are for use in financing any campaign-related activity 
     or any communication that refers to a clearly identified 
     candidate for Federal office.
       ``(2) Exception.--Paragraph (1) does not apply to the 
     solicitation or receipt of funds by an individual who is a 
     candidate for a State or local office if the solicitation or 
     receipt of funds is permitted under State law for the 
     individual's State or local campaign committee.''.

     SEC. 102. STATE PARTY GRASSROOTS FUNDS.

       (a) Individual Contributions.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     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;
       ``(ii) any other political committee established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $5,000;

     except that the aggregate contributions described in this 
     subparagraph that may be made by a person to the State Party 
     Grassroots Fund and all committees of a State Committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Limits.--
       (1) In general.--Section 315(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by 
     striking paragraph (3) and inserting the following:
       ``(3) Overall limits.--
       ``(A) Individual limit.--No individual shall make 
     contributions during any calendar year that, in the 
     aggregate, exceed $30,000.
       ``(B) Calendar year.--No individual shall make 
     contributions during any calendar year--
       ``(i) to all candidates and their authorized political 
     committees that, in the aggregate, exceed $25,000; or
       ``(ii) to all political committees established and 
     maintained by State committees of a political party that, in 
     the aggregate, exceed $20,000.
       ``(C) Nonelection years.--For purposes of subparagraph 
     (B)(i), any contribution made to a candidate or the 
     candidate's authorized political committees in a year other 
     than the calendar year in which the election is held with 
     respect to which the contribution is made shall be treated as 
     being made during the calendar year in which the election is 
     held.''.
       (c) Definitions.--Section 301 of the Federal Election 
     Campaign Act of 1970 (2 U.S.C. 431) is amended by adding at 
     the end the following:
       ``(20) Generic campaign activity.--The term `generic 
     campaign activity' means a campaign activity that promotes a 
     political party and does not refer to any particular Federal 
     or non-Federal candidate.
       ``(21) 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 purposes of making expenditures and other 
     disbursements described in section 325(d).''.
       (d) State Party Grassroots Funds.--Title III of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as 
     amended by section 101) 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 subsection (d); and
       ``(2) uses the transferred funds solely for those purposes.
       ``(c) Amounts Received by Grassroots Funds From State and 
     Local Candidate Committees.--
       ``(1) In general.--Any amount received by a State Party 
     Grassroots Fund from a State or local candidate committee for 
     expenditures described in subsection (d) that are for the 
     benefit of that candidate shall be treated as meeting the 
     requirements of 324(b)(1) and section 304(e) if--
       ``(A) the amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A)(i); and
       ``(B) the State or local candidate committee--
       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether those requirements are met; and
       ``(ii) certifies that the requirements were met.
       ``(2) Determination of compliance.--For purposes of 
     paragraph (1)(A), in determining whether the funds 
     transferred meet the requirements of this Act described in 
     paragraph (1)(A)--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee; and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains funds meeting those requirements 
     sufficient to cover the transferred funds.
       ``(3) Reporting.--Notwithstanding paragraph (1), any State 
     Party Grassroots Fund that receives a transfer described in 
     paragraph (1) from a State or local candidate committee shall 
     be required to meet the reporting requirements of this Act, 
     and shall submit to the Commission all certifications 
     received, with respect to receipt of the transfer from the 
     candidate committee.
       ``(d) Disbursements and Expenditures.--A State committee of 
     a political party may make disbursements and expenditures 
     from its State Party Grassroots Fund only for--
       ``(1) any generic campaign activity;
       ``(2) payments described in clauses (v), (x), and (xii) of 
     paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
     paragraph (9)(B) of section 301;
       ``(3) subject to the limitations of section 315(d), 
     payments described in clause (xii) of paragraph (8)(B), and 
     clause (ix) of paragraph (9)(B), of section 301 on behalf of 
     candidates other than for President and Vice President;
       ``(4) voter registration; and
       ``(5) development and maintenance of voter files during an 
     even-numbered calendar year.''.

[[Page S9657]]

     SEC. 103. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 202) is amended by adding at the end the following:
       ``(e) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any congressional 
     campaign committee of a political party, and any subordinate 
     committee of either, shall report all receipts and 
     disbursements during the reporting period, whether or not in 
     connection with an election for Federal office.
       ``(2) Other political committees to which section 324 
     applies.--A political committee (not described in paragraph 
     (1)) to which section 324(b)(1) applies shall report all 
     receipts and disbursements made for activities described in 
     section 324(b) (1) and (2)(iii).
       ``(3) Other political committees.--Any political committee 
     to which paragraph (1) or (2) does not apply shall report any 
     receipts or disbursements that are used in connection with a 
     Federal election.
       ``(4) Itemization.--If a political committee has receipts 
     or disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for such person in the same manner as required in 
     paragraphs (3)(A), (5), and (6) of subsection (b).
       ``(5) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods required for political committees under subsection 
     (a).''.
       (b) Building Fund Exception to the Definition of 
     Contribution.--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xiv) as clauses 
     (viii) through (xiii), respectively.
       (c) Reports by State Committees.--Section 304 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as 
     amended by subsection (a)) is amended by adding at the end 
     the following:
       ``(f) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines such reports contain substantially 
     the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
     is amended by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.
             TITLE II--INDEPENDENT EXPENDITURES; SOFT MONEY

     SEC. 201. EXPRESS ADVOCACY.

       (a) Definition of Expenditure.--Section 301(9)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is 
     amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(iii) any payment during an election year (or in a 
     nonelection year, during the period beginning on the date on 
     which a vacancy for Federal office occurs and ending on the 
     date of the special election for that office) for a 
     communication that is made through any broadcast medium, 
     newspaper, magazine, billboard, direct mail, or similar type 
     of general public communication or political advertising by a 
     national, State, district, or local committee of a political 
     party, including a congressional campaign committee of a 
     party, that refers to a clearly identified candidate; and
       ``(iv) any payment for a communication that contains 
     express advocacy.''.
       (b) Definition of Independent Expenditure.--Section 301 of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 431) is 
     amended by striking paragraph (17) and inserting the 
     following:
       ``(17) Independent expenditure.--
       ``(A) In general.--The term `independent expenditure' means 
     an expenditure that--
       ``(i) contains express advocacy; and
       ``(ii) is made without cooperation or consultation with any 
     candidate, or any authorized committee or agent of such 
     candidate, and which is not made in concert with, or at the 
     request or suggestion of, any candidate, or any authorized 
     committee or agent of such candidate.''.
       (b) Definition of Express Advocacy.--Section 301 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431) (as 
     amended by section 102(c)) is amended by adding at the end 
     the following:
       ``(22) Express advocacy.--
       ``(A) In general.--The term `express advocacy' includes--
       ``(i) a communication that conveys a message that advocates 
     the election or defeat of a clearly identified candidate for 
     Federal office by using an expression such as `vote for,' 
     `elect,' `support,' `vote against,' `defeat,' `reject,' 
     `(name of candidate) for Congress', `vote pro-life,' or `vote 
     pro-choice', accompanied by a listing or picture of a clearly 
     identified candidate described as `pro-life' or `pro-choice,' 
     `reject the incumbent', or a similar expression;
       ``(ii) a communication that is made through a broadcast 
     medium, newspaper, magazine, billboard, direct mail, or 
     similar type of general public communication or political 
     advertising that involves aggregate disbursements of $10,000 
     or more, that refers to a clearly identified candidate, that 
     a reasonable person would understand as advocating the 
     election or defeat of the candidate, and that is made within 
     60 days before the date of a primary election (and is 
     targeted to the State in which the primary is occurring), or 
     60 days before a general election; or
       ``(iii) a communication that is made through a broadcast 
     medium, newspaper, magazine, billboard, direct mail, or 
     similar type of general public communication or political 
     advertising that involves aggregate disbursements of $10,000 
     or more, that refers to a clearly identified candidate, that 
     a reasonable person would understand as advocating the 
     election or defeat of a candidate, that is made before the 
     date that is 30 days before the date of a primary election, 
     or 60 days before the date of a general election, and that is 
     made for the purpose of advocating the election or defeat of 
     the candidate, as shown by 1 or more factors such as a 
     statement or action by the person making the communication, 
     the targeting or placement of the communication, or the use 
     by the person making the communication of polling, 
     demographic, or other similar data relating to the 
     candidate's campaign or election.
       ``(B) Exclusion.--The term `express advocacy' does not 
     include the publication or distribution of a communication 
     that is limited solely to providing information about the 
     voting record of elected officials on legislative matters and 
     that a reasonable person would not understand as advocating 
     the election or defeat of a particular candidate.''.

     SEC. 202. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(c)) is amended--
       (1) in paragraph (2), by striking the undesignated matter 
     after subparagraph (C);
       (2) by redesignating paragraph (3) as paragraph (7); and
       (3) by inserting after paragraph (2), as amended by 
     paragraph (1), the following:
       ``(d) Time for Reporting Certain Expenditures.--
       ``(1) Expenditures aggregating $1,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes or obligates to make independent 
     expenditures aggregating $1,000 or more after the 20th day, 
     but more than 24 hours, before an election shall file a 
     report describing the expenditures within 24 hours after that 
     amount of independent expenditures has been made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person shall file an additional 
     report each time that independent expenditures aggregating an 
     additional $1,000 are made or obligated to be made with 
     respect to the same election as that to which the initial 
     report relates.
       ``(2) Expenditures aggregating $10,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes or obligates to make independent 
     expenditures aggregating $10,000 or more at any time up to 
     and including the 20th day before an election shall file a 
     report describing the expenditures within 48 hours after that 
     amount of independent expenditures has been made or obligated 
     to be made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person shall file an additional 
     report each time that independent expenditures aggregating an 
     additional $10,000 are made or obligated to be made with 
     respect to the same election as that to which the initial 
     report relates.
       ``(3) Place of filing; contents.--A report under this 
     subsection--
       ``(A) shall be filed with the Commission; and
       ``(B) shall contain the information required by subsection 
     (b)(6)(B)(iii), including the name of each candidate whom an 
     expenditure is intended to support or oppose.''.

     SEC. 203. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 103(c)) is amended by 
     adding at the end the following:
       ``(g) Election Activity of Persons Other Than Political 
     Parties.--
       ``(1) In general.--A person other than a committee of a 
     political party that makes aggregate disbursements totaling 
     in excess of $10,000 for activities described in paragraph 
     (2) shall file a statement with the Commission--
       ``(A) within 48 hours after the disbursements are made; or
       ``(B) in the case of disbursements that are made within 20 
     days of an election, within 24 hours after the disbursements 
     are made.
       ``(2) Activity.--The activity described in this paragraph 
     is--
       ``(A) any activity described in section 316(b)(2)(A) that 
     refers to any candidate for Federal office, any political 
     party, or any Federal election; and

[[Page S9658]]

       ``(B) any activity described in subparagraph (B) or (C) of 
     section 316(b)(2).
       ``(3) Additional statements.--An additional statement shall 
     be filed each time additional disbursements aggregating 
     $10,000 are made by a person described in paragraph (1).
       ``(4) Applicability.--This subsection does not apply to--
       ``(A) a candidate or a candidate's authorized committees; 
     or
       ``(B) an independent expenditure.
       ``(5) Contents.--A statement under this section shall 
     contain such information about the disbursements as the 
     Commission shall prescribe, including--
       ``(A) the name and address of the person or entity to whom 
     the disbursement was made;
       ``(B) the amount and purpose of the disbursement; and
       ``(C) if applicable, whether the disbursement was in 
     support of, or in opposition to, a candidate or a political 
     party, and the name of the candidate or the political 
     party.''.
                         TITLE III--ENFORCEMENT

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

       Section 302(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(a)) is amended by striking paragraph (11) and 
     inserting at the end the following:
       ``(11) Filing Reports.--
       ``(A) Computer accessibility.--The Commission may prescribe 
     regulations under which persons required to file 
     designations, statements, and reports under this Act--
       ``(i) are required to maintain and file a designation, 
     statement, or report for any calendar year in electronic form 
     accessible by computers if the person has, or has reason to 
     expect to have, aggregate contributions or expenditures in 
     excess of a threshold amount determined by the Commission; 
     and
       ``(ii) may maintain and file a designation, statement, or 
     report in that manner if not required to do so under 
     regulations prescribed under clause (i).
       ``(B) Facsimile machine.--The Commission shall prescribe 
     regulations which allow persons to file designations, 
     statements, and reports required by this Act through the use 
     of facsimile machines.
       ``(C) Verification of signature.--In prescribing 
     regulations under this paragraph, the Commission shall 
     provide methods (other than requiring a signature on the 
     document being filed) for verifying designations, statements, 
     and reports covered by the regulations. Any document verified 
     under any of the methods shall be treated for all purposes 
     (including penalties for perjury) in the same manner as a 
     document verified by signature.''.

     SEC. 302. AUDITS.

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

     SEC. 303. AUTHORITY TO SEEK INJUNCTION.

       Section 309(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) is amended--
       (1) by adding at the end the following:
       ``(13) Authority to seek injunction.--
       ``(A) In general.--If, at any time in a proceeding 
     described in paragraph (1), (2), (3), or (4), the Commission 
     believes that--
       ``(i) there is a substantial likelihood that a violation of 
     this Act is occurring or is about to occur;
       ``(ii) the failure to act expeditiously will result in 
     irreparable harm to a party affected by the potential 
     violation;
       ``(iii) expeditious action will not cause undue harm or 
     prejudice to the interests of others; and
       ``(iv) the public interest would be best served by the 
     issuance of an injunction;

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

     SEC. 304. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR 
                   MORE.

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

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

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

     SEC. 306. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS NOT 
                   QUALIFIED TO REGISTER 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 register to vote.--It 
     shall be unlawful for an individual who is not qualified to 
     register to vote in a Federal election to make a 
     contribution, or to promise expressly or impliedly to make a 
     contribution, in connection with a Federal election; or for 
     any person to solicit, accept, or receive a contribution in 
     connection with a Federal election from an individual who is 
     not qualified to register to vote in a Federal election.''.
       (b) Inclusion in Definition of Identification.--Section 
     301(13) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431(13)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``and'' the first place it appears; and
       (B) by inserting ``, and an affirmation that the individual 
     is an individual who is not prohibited by section 319 from 
     making a contribution'' after ``employer''; and
       (2) in subparagraph (B) by inserting ``and an affirmation 
     that the person is a person that is not prohibited by section 
     319 from making a contribution'' after ``such person''.

     SEC. 307. USE OF CANDIDATES' NAMES.

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

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

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

     SEC. 309. EXPEDITED PROCEDURES.

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

[[Page S9659]]

       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     summarily dismiss the complaint.''.

     SEC. 310. REFERENCE OF SUSPECTED VIOLATION TO THE ATTORNEY 
                   GENERAL.

       Section 309(a)(5) of Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) is amended by striking subparagraph (C) 
     and inserting the following:
       ``(C) Referral to the attorney general.--The Commission may 
     at any time, by an affirmative vote of 4 of its members, 
     refer a possible violation of this Act or chapter 95 or 96 of 
     the Internal Revenue Code of 1986 to the Attorney General of 
     the United States, without regard to any limitations set 
     forth in this section.''.
                        TITLE IV--MISCELLANEOUS

     SEC. 401. CONTRIBUTION LIMITS; INDEXING.

       (a) Increase in Candidate Contribution Limit.--Section 
     315(a)(1)(A) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a(a)(1)(A)) is amended by striking ``$1,000'' and 
     inserting ``$2,000''.
       (b) Indexing of Candidate Contribution Limit.--Section 
     315(c) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     441a(c)) is amended--
       (1) in the second sentence of paragraph (1), by striking 
     ``subsection (b) and subsection (d)'' and inserting 
     ``subsections (a)(1)(A), (b), and (d)''; and
       (2) in paragraph (2)(B), by striking ``means the calendar 
     year 1974.'' and inserting ``means--
       ``(i) for purposes of subsections (b) and (d), calendar 
     year 1974; and
       ``(ii) for purposes of subsection (a)(1)(A), calendar year 
     1997.''.

     SEC. 402. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

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

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

       ``(a) Permitted Uses.--A contribution accepted by a 
     candidate, and any other amount received by an individual as 
     support for activities of the individual as a holder of 
     Federal office, may be used by the candidate or individual--
       ``(1) for expenditures in connection with the campaign for 
     Federal office of the candidate or individual;
       ``(2) for ordinary and necessary expenses incurred in 
     connection with duties of the individual as a holder of 
     Federal office;
       ``(3) for contributions to an organization described in 
     section 170(c) of the Internal Revenue Code of 1986; or
       ``(4) for transfers to a national, State, or local 
     committee of a political party.
       ``(b) Prohibited Use.--
       ``(1) In general.--A contribution or amount described in 
     subsection (a) shall not be converted by any person to 
     personal use.
       ``(2) Conversion to personal use.--For the purposes of 
     paragraph (1), a contribution or amount shall be considered 
     to be converted to personal use if the contribution or amount 
     is used to fulfill any 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 officeholder, including--
       ``(A) a home mortgage, rent, or utility payment;
       ``(B) a clothing purchase;
       ``(C) a noncampaign-related automobile expense;
       ``(D) a country club membership;
       ``(E) a vacation or other noncampaign-related trip;
       ``(F) a household food item;
       ``(G) a tuition payment;
       ``(H) admission to a sporting event, concert, theater, or 
     other form of entertainment not associated with an election 
     campaign; and
       ``(G) dues, fees, and other payments to a health club or 
     recreational facility.''.

     SEC. 403. CAMPAIGN ADVERTISING.

       Section 318 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441d) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (ii) by striking ``an expenditure'' and inserting ``a 
     disbursement''; and
       (iii) by striking ``direct''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address'' after ``name''; and
       (2) by adding at the end the following:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;
       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in subsection (a)(1) or subsection (a)(2) shall include, in 
     addition to the requirements of those subsections, an audio 
     statement by the candidate that identifies the candidate and 
     states that the candidate has approved the communication.
       ``(2) If a broadcast or cablecast communication described 
     in paragraph (1) is broadcast or cablecast by means of 
     television, the communication shall include, in addition to 
     the audio statement under paragraph (1), a written statement 
     which--
       ``(A) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(B) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e) Any broadcast or cablecast communication described in 
     subsection (a)(3) shall include, in addition to the 
     requirements of those subsections, in a clearly spoken 
     manner, the following statement: `________ is responsible for 
     the content of this advertisement.' (with the blank to be 
     filled in with the name of the political committee or other 
     person paying for the communication and the name of any 
     connected organization of the payor). If broadcast or 
     cablecast by means of television, the statement shall also 
     appear in a clearly readable manner with a reasonable degree 
     of color contrast between the background and the printed 
     statement, for a period of at least 4 seconds.''.

     SEC. 404. LIMIT ON CONGRESSIONAL USE OF THE FRANKING 
                   PRIVILEGE.

       Section 3210(a)(6)(A) of title 39, United States Code, is 
     amended to read as follows:
       ``(A) A Member of Congress shall not mail any mass mailing 
     as franked mail during a year in which there will be an 
     election for the seat held by the Member during the period 
     between January 1 of that year and the date of the general 
     election for that Office, unless the Member has made a public 
     announcement that the Member will not be a candidate for 
     reelection to that year or for election to any other Federal 
     office.''.
        TITLE V--CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

     SEC. 501. SEVERABILITY.

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

     SEC. 502. REVIEW OF CONSTITUTIONAL ISSUES.

       An appeal may be taken directly to the Supreme Court of the 
     United States from any final judgment, decree, or order 
     issued by any court ruling on the constitutionality of any 
     provision of this Act or amendment made by this Act.

     SEC. 503. EFFECTIVE DATE.

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

     SEC. 504. REGULATIONS.

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

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