[Congressional Record Volume 143, Number 125 (Thursday, September 18, 1997)]
[Senate]
[Pages S9654-S9659]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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: `________