[Congressional Record Volume 144, Number 16 (Thursday, February 26, 1998)]
[Senate]
[Pages S1076-S1079]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI:
  S. 1689. A bill to reform Federal election law; to the Committee on 
Rules and Administration.


the grassroots campaign and common sense federal election reform act of 
                                  1998

  Mr. DOMENICI. Mr. President, I rise today to introduce my own version 
of campaign finance reform, the ``Grassroots Campaign and Common Sense 
Federal Election Reform Act of 1998.''
  During the past several Congresses, I continuously have introduced 
straightforward reform legislation to deal with four specific campaign 
finance issues: (1) out-of-state contributions; (2) PACs; (3) soft 
money; and (4) super-wealthy candidates.
  This legislation again addresses these age-old concerns, and also 
attempts to deal with some of the new problems we discovered during the 
investigation of campaign abuses in the 1996 election cycle by the 
Senate Committee on Governmental Affairs.
  Before I get to those new issues, I'd like to talk a little about how 
this bill will address the major problem I have raised over and over 
again on the floor of the Senate whenever we have debated campaign 
finance reform. For many years, I have felt that the biggest problem 
with our elections is that they no longer belong to the voters, to 
those at the grassroots level, to the constituents we originally were 
sent here to serve.
  Instead, our campaigns now belong to special-interest PACs, super-
wealthy candidates who can essentially buy their congressional seats, 
and rich contributors who donate large sums of soft money to political 
parties and groups for use in so-called ``issue advocacy'' ads and 
contribute the maximum allowable under the law to candidates, even if 
those candidates do not come from their own home state.
  My bill begins by making four straightforward changes to return 
campaigns to the voters. First, it requires that candidates raise at 
least sixty percent of their money from sources within their own state. 
In my mind, the best campaigns are those funded by a large number of 
contributions from among the candidate's own constituents. This bill 
would make that a reality in virtually every federal campaign.

[[Page S1077]]

  Second, the bill bans all corporate, bank and labor union PACs and 
limits so-called ideological PAC contributions to $500 per candidate. I 
understand that there are concerns about a PAC ban, but I believe the 
best way to return elections to the electorate is to eliminate special 
interest PAC contributions to candidates.
  Third, the bill deals with the wealthy candidate problem in a way 
that I believe is consistent with the First Amendment. Rather than 
place arbitrary and unconstitutional limits on the amount of personal 
wealth a candidate could spend on behalf of his or her own campaign, 
the bill simply requires the candidate to disclose the fact that they 
plan to spend their own money and raises the contribution limits for 
the opponents of Senate candidates who intend to spend more than 
$250,000 of their own money or House candidates who intend to spend 
more than $100,000. The bill in no way prohibits wealthy candidates 
from spending their own money- that is their constitutional right. But 
the bill does level the playing field by raising contribution limits 
for candidates who face opponents with massive personal wealth at their 
disposal.
  Finally, the bill gets at the biggest problem we face today--soft 
money and its use for so-called issue advocacy. My bill limits soft 
money contributions to $100,000 per individual per party during each 
election cycle, while simultaneously increasing and indexing the limits 
on regulated federal contributions to candidates and national parties. 
I have long felt that Congress should limit soft money because soft 
money confuses the electorate and permits campaign contributions to 
come from clandestine, obscure sources.
  After the hearings in the Governmental Affairs Committee this year, I 
am convinced now more than ever that we must do something to eliminate 
the pernicious effect of soft money on our political system. Who can 
forget Roger Tamraz? He's the oil pipeline financier, who told the 
Committee that he had given $300,000 in soft money to the DNC and 
gladly would have given $600,000 for a meeting with the decision-makers 
at the White House and in the Executive Branch. My bill would prohibit 
the unlimited giving of soft money by wealthy individuals like Mr. 
Tamraz who use soft money to buy access to government.

  My bill also would deal with one of the most pernicious uses of soft 
money- so-called ``issue advocacy'' political advertisements- and it 
does so in a way that clearly is constitutional. My bill takes the 
middle ground on issue advocacy and requires anyone who spends more 
than $25,000 or more on radio or television advertising which mentions 
a federal candidate by name or likeness to make certain disclosures to 
the FEC. I have long felt that disclosure is the best way to pursue 
campaign reform. It has been said that ``sunlight is the best 
disinfectant.'' In the context of campaign reform, the sunlight of 
disclosure also is the best policy because it does no damage to the 
constitutional rights of individuals and groups to engage in political 
speech.
  Mr. President, last year's Governmental Affairs Committee hearings 
exposed repeated and rampant violations of the existing campaign laws. 
We saw on numerous occasions blatant violations of the prohibitions 
against soliciting and receiving foreign money contributions, against 
money laundering- making contributions in the name of another, and the 
law against raising money on federal property. I thought that these 
laws were pretty clear.
  Now, the Attorney General tells us that because soft money is not a 
``contribution'' under the federal election laws, it was legal for the 
President and Vice President to solicit soft money contributions on 
federal property. While I do not necessarily agree with the Attorney 
General's interpretation of current law, I certainly believe we need to 
make it absolutely clear that government officials cannot use federal 
property to raise any campaign funds, including soft money. My bill 
does just that.
  Finally, Mr. President, my bill deals with one other major issue- the 
use of union dues for political purposes. Mr. President, I can think of 
no other campaign activity which is more un-American than the 
mandatory, compulsory taking of union dues for political purposes. The 
essence of democracy is that political speech must be voluntary. For 
many union workers today, that is not the case. My bill would require 
unions to get the permission of all members before using their dues for 
political purposes. I know many colleagues on the other side of the 
aisle are opposed to this idea, but I think they know it is the right 
thing to do.
  Mr. President, I introduce this bill today so my constituents in New 
Mexico will know where I stand on the issue of campaign finance reform. 
My record is clear- I have introduced at least three bills which have 
included the reforms I have discussed here today. But, I am unable to 
support McCain/Feingold for three key reasons.
  First, McCain/Feingold goes too far in its attempts to address the 
express advocacy-issue advocacy problem. While I am sympathetic to any 
efforts to deal with the problems of the 1996 election, I believe that 
we must do so in a way which passes constitutional muster. McCain/
Feingold's overly broad definition of ``express advocacy'' fails that 
test. McCain/Feingold defines express advocacy to include any radio or 
television ads referring to a federal candidate which are broadcast 
within 60 days of any election, regardless of whether those ads truly 
are ``issue advocacy'' ads. I believe that such a ban on the exercise 
of political speech would eventually be found unconstitutional.
  Second, McCain/Feingold fails to ban soft money in a way which will 
pass Supreme Court scrutiny. Under McCain/Feingold, state parties are 
prohibited from disbursing soft money for use in ``federal election 
activity.'' The bill goes on to define ``federal election activity'' to 
include any ``generic campaign activity'' conducted in connection with 
an election in which a candidate for Federal office appears on the 
ballot. To me, this means that a state party could not use non-federal 
soft money for activity which strictly supports a state candidate just 
because that candidate appears on the ballot with a federal candidate. 
While some may believe otherwise, I do not believe that Congress 
possesses the authority to so regulate state campaigns.
  Finally, Mr. President, I cannot support McCain/Feingold because it 
does very little to address the problem of the compulsory use of union 
dues for political purposes. McCain/Feingold codifies the Beck 
decision, which only applies to non-union workers and only requires 
unions to provide notice of the workers' right to request a refund of 
the portion of their dues used for political purposes. I believe unions 
should be prohibited from using any employee dues for political 
purposes, whether they are taken from members or non-members, unless 
the union receives permission up front and in advance from the 
employee.
  Mr. President, campaign finance reform is an issue which must be 
resolved thoughtfully and with respect for the First Amendment. I 
believe that my bill offers just such an approach. I also believe that, 
despite the earnest efforts of its proponents, many provisions of 
McCain/Feingold simply would not pass the constitutional scrutiny of 
the Supreme Court.
  I ask unanimous consent that a copy of my bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1689

       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 ``Grassroots 
     Campaign and Common Sense Federal Election Reform Act of 
     1998''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on out-of-state contributions.
Sec. 3. Limitation on political action committees.
Sec. 4. Use of personal wealth for campaign purposes.
Sec. 5. Increase in contribution limits.
Sec. 6. Limit on soft money donations to political parties.
Sec. 7. Increased disclosure for certain communications.
Sec. 8. Use of union dues for political purposes.
Sec. 9. Prohibition of fundraising on Federal property and other 
              criminal prohibitions.
Sec. 10. Contributions to defray legal expenses of certain officials.
Sec. 11. Increased criminal penalties for violations of foreign 
              national provisions and contributions in the name of 
              another.

[[Page S1078]]

Sec. 12. Filing of reports using computers and facsimile machines.
Sec. 13. Term limits for Federal Election Commission.

     SEC. 2. RESTRICTION ON OUT-OF-STATE CONTRIBUTIONS.

       (a) In General.--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. LIMIT ON OUT-OF-STATE CONTRIBUTIONS.

       ``A candidate for nomination to, or election to, the Senate 
     or House of Representatives or the candidate's authorized 
     committees shall not accept an aggregate amount of funds 
     during an election cycle from individuals, separate 
     segregated funds, and multicandidate political committees 
     that do not reside or have their headquarters within the 
     candidate's State in excess of an amount equal to 40 percent 
     of the total amount of contributions accepted by the 
     candidate and the candidate's authorized committees.''.
       (b) Definition of Election Cycle.--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 the 
     period beginning on the day after the date of the most recent 
     general election for the specific office or seat that a 
     candidate is seeking and ending on the date of the next 
     general election for that office or seat.''.

     SEC. 3. LIMITATION ON POLITICAL ACTION COMMITTEES.

       (a) Prohibition of Separate Segregated Funds.--Section 
     316(b)(2) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441b(b)(2)) is amended--
       (1) in subparagraph (A), by inserting ``and'' after the 
     semicolon;
       (2) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (3) by striking subparagraph (C).
       (b) Prohibition of Certain Disbursements by Banks, 
     Corporations, and Labor Organizations.--Section 316 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is 
     amended by adding at the end the following:
       ``(c) Prohibited Disbursements.--A bank, labor 
     organization, or corporation referred to in subsection (a) 
     shall not make a disbursement for the establishment or 
     administration of a political committee or the solicitation 
     of contributions to such committee.''
       (c) Limitation on Contributions by Multicandidate Political 
     Committees.--Section 315(a)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)(2)) is amended--
       (1) in subparagraph (A), by striking ``$5,000'' and 
     inserting ``$500''; and
       (2) in subparagraph (C), by striking ``in any'' and all 
     that follows through ``$5,000''.

     SEC. 4. USE OF PERSONAL WEALTH FOR CAMPAIGN PURPOSES.

       Section 315 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a) is amended by adding at the end the following:
       ``(i)(1)(A) Not later than 15 days after the date a 
     candidate qualifies for a ballot, under State law, the 
     candidate shall file with the Commission a declaration 
     stating whether or not the candidate intends to expend 
     personal funds in connection with the candidate's election 
     for office, in an aggregate amount equal to or greater than--
       ``(i) in the case of a candidate for the Senate, $250,000, 
     ; and
       ``(ii) in the case of a candidate for the House of 
     Representatives, $100,000.
       ``(B) In this subsection, the term `personal funds' means--
       (i) funds of the candidate or funds from obligations 
     incurred by the candidate in connection with the candidate's 
     campaign; and
       (ii) funds of the candidate's spouse, a child, stepchild, 
     parent, grandparent, brother, sister, half-brother, or half-
     sister of the candidate and the spouse of any such person, 
     and a child, stepchild, parent, grandparent, brother, half-
     brother, sister, or half-sister of the candidate's spouse and 
     the spouse of such person.
       ``(C) The statement required by this subsection shall be in 
     such form, and shall contain such information, as the 
     Commission may, by regulation, require.
       ``(2) Notwithstanding any other provision of law, in any 
     election in which a candidate declares an intention to expend 
     more personal funds than the limits described in paragraph 
     (1)(A), expends personal funds in excess of such limits, or 
     fails to file the declaration required by this subsection--
       ``(A) subsection (h) shall apply to other eligible 
     candidates in the same election without regard to the $17,500 
     limit; and
       ``(B) the limitations on contributions in subsection (a) 
     for other eligible candidates in the same election shall be 
     increased for such election as follows:
       ``(i) The limitations under subsection (a)(1)(A) shall be 
     increased to an amount equal to 1,000 percent of such 
     limitation; and
       ``(ii) The limitations under subsection (a)(3) shall be 
     increased to an amount equal to 150 percent of such 
     limitation, but only to the extent that contributions above 
     such limitation are made to candidates affected by the 
     increased levels provided in clause (i).
       ``(3) For purposes of this paragraph, an eligible candidate 
     is a candidate who is not required to file a declaration 
     under paragraph (1) or notice under paragraph (5).
       ``(4) If the limitations described in paragraph (2) are 
     increased under paragraph (2) for a convention or a primary 
     election, as they relate to an individual candidate, and such 
     individual candidate is not a candidate in any subsequent 
     election in such campaign, including the general election, 
     the provisions of paragraph (2) shall no longer apply.
       ``(5) Any candidate who--
       ``(A) declares under paragraph (1) that the candidate does 
     not intend to expend personal funds in an aggregate amount in 
     excess of the limit described in paragraph (1)(A); and
       ``(B) subsequently does expend personal funds in excess of 
     such limit or intends to expend personal funds in excess of 
     such limits,

     such candidate shall notify and file an amended declaration 
     with the Commission and shall notify all other candidates for 
     such office within 24 hours after changing such declaration 
     or exceeding such limits, whichever first occurs, by sending 
     such notice by certified mail, return receipt requested. A 
     candidate that violates this paragraph shall be subject to a 
     civil penalty in an amount equal to 2 times the amount of 
     funds expended in excess of the limits.
       ``(6) Any candidate who incurs personal loans in connection 
     with his campaign under this Act shall not repay, either 
     directly or indirectly, such loans from any contributions 
     made to such candidate or any authorized committee of such 
     candidate after the date of such election.
       ``(7) Notwithstanding any other provision of law, no 
     candidate shall make expenditures from personal funds in 
     connection with a general, special, or runoff election for 
     office after the later of--
       ``(A) the date that is 90 days before the date of the 
     election; or
       ``(B) the day after the primary election for such office, 
     whichever date occurs later.

     The provisions of this paragraph shall apply to all 
     candidates regardless of whether such candidate has reached 
     the limits provided in paragraph (1) of this subsection. A 
     candidate that violates this paragraph shall be subject to a 
     civil penalty in an amount equal to 3 times the amount of 
     funds expended.
       ``(8) The Commission shall take such action as it deems 
     necessary under the enforcement provisions of this Act to 
     assure compliance with the provisions of this subsection.''.

     SEC. 5. INCREASE IN CONTRIBUTION LIMITS.

       (a) Increase in Limits.--Section 315(a) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``$1,000'' and 
     inserting ``$5,000''; and
       (B) in subparagraph (B), by striking ``$20,000'' and 
     inserting ``$50,000''; and
       (2) in paragraph (3), by striking ``$25,000'' and inserting 
     ``$50,000''.
       (b) Indexing.--Section 315(c) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking the second and third sentences;
       (B) by inserting before ``At the beginning'' the following: 
     ``(A)''; and
       (C) by adding at the end the following:
       ``(B) Each limitation established by subparagraphs (A) and 
     (B) of paragraph (1) and paragraph (3) of subsection (a) or 
     subsection (b) or (d) shall be increased by the percent 
     difference determined under subparagraph (A).
       ``(C) Each amount increased under subparagraph (B) shall 
     remain in effect for the calendar year in which the amount is 
     increased.''; 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), calendar year 
     1998.''.

     SEC. 6. LIMIT ON SOFT MONEY DONATIONS TO POLITICAL PARTIES.

       (a) Soft Money of National Political Party Committees.--
     Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) (as amended by section 2) is amended by 
     adding at the end the following:

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

       ``A national committee of a political party, any 
     subordinate committee of a national committee, a Senatorial 
     or Congressional Campaign Committee of a national political 
     party, or an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a 
     national committee or a Senatorial or Congressional Campaign 
     Committee of a national political party or that is an entity 
     acting on behalf of a national committee or a Senatorial or 
     Congressional Campaign Committee of a national political 
     party shall not accept donations from any person during a 
     calendar year in an aggregate amount that exceeds 
     $100,000.''.

     SEC. 7. INCREASED DISCLOSURE FOR CERTAIN COMMUNICATIONS.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following:
       ``(d) Disclosure of Certain Communications.--
       ``(1) In general.--A person shall file a report under 
     paragraph (2) if the person expends an aggregate amount of 
     funds during a calendar year for communications described in 
     paragraph (3) in excess of--
       ``(A) $25,000 with respect to a candidate; or
       ``(B) $100,000 with respect to all candidates.
       ``(2) Report.--
       ``(A) Time to file.--A report under this paragraph shall be 
     filed in accordance with subsection (a)(2).
       ``(B) Contents of report.--A report filed under this 
     paragraph shall contain the same

[[Page S1079]]

     information required for an independent expenditure under 
     subsection (c).
       ``(3) Communication described.--A communication described 
     in this paragraph is any communication that--
       ``(A) is broadcast to the general public through radio or 
     television;
       ``(B) mentions or refers to by name, representation, or 
     likeness any candidate for election to Federal office;
       ``(C) the payment for which is not a disbursement described 
     in clause (i) or (iii) of section 301(9)(B); and
       ``(D) the payment for which is not an independent 
     expenditure.''.

     SEC. 8. USE OF UNION DUES FOR POLITICAL PURPOSES.

       Section 316 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441b) (as amended by section 3) is amended by adding 
     at the end the following:
       ``(d)(1) Except with the separate, prior, written, 
     voluntary authorization of each individual, it shall be 
     unlawful for any labor organization described in this section 
     to collect from or assess its members or nonmembers any dues, 
     initiation fee, or other payment, if any part of such dues, 
     fee, or payment will be used for political activities.
       ``(2) An authorization described in paragraph (1) shall 
     remain in effect until revoked and may be revoked at any 
     time.
       ``(3) In this subsection, the term `political activities' 
     includes communications or other activities which involve 
     carrying on propaganda, attempting to influence legislation, 
     or participating or intervening in any political campaign or 
     political party.''.

     SEC. 9. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY AND 
                   OTHER CRIMINAL PROHIBITIONS.

       (a) Definition of Donation.--Section 301 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431) (as amended by 
     section 2) is amended by adding at the end the following:
       ``(21) Donation.--The term `donation' means a gift, 
     subscription, loan, advance, or deposit of money or anything 
     else of value made by any person to a national committee of a 
     political party or a Senatorial or Congressional Campaign 
     Committee of a national political party for any purpose, but 
     does not include a contribution (as defined in paragraph 
     (8)).''.
       (b) Prohibition of Fundraising on Federal Property.--
     Section 607 of title 18, United States Code, is amended--
       (1) in subsection (a), by inserting ``or donation within 
     the meaning of section 301(20)'' after ``section 301(8)''; 
     and
       (2) in subsection (b)--
       (A) by inserting ``or donations'' after ``contributions'' 
     each place it appears;
       (B) by inserting ``or donation'' after ``contribution''; 
     and
       (C) by inserting ``donator'' after ``contributor''.
       (c) Amendment of Title 18 To Include Prohibition of 
     Donations.--Chapter 29 of title 18, United States Code, is 
     amended--
       (1) in section 602(a)(4), by inserting ``or donation within 
     the meaning of section 301(20)'' after ``section 301(8)''; 
     and
       (2) in section 603(a)--
       (A) by inserting ``or donation within the meaning of 
     section 301(20)'' after ``section 301(8)''; and
       (B) by inserting ``or donation'' after ``contribution'' the 
     second and third time it appears.
       (d) Effective Date.--The amendments made by this section 
     shall apply to violations occurring on or after the date of 
     enactment of this Act.

     SEC. 10. 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 any such individual, 
     to defray legal expenses of such individual--
       (A) 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
       (B) if the person is--
       (i) a foreign national (as defined in section 319(b) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441e(b))); or
       (ii) 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 any 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.

     SEC. 11. INCREASED CRIMINAL PENALTIES FOR VIOLATIONS OF 
                   FOREIGN NATIONAL PROVISIONS AND CONTRIBUTIONS 
                   IN THE NAME OF ANOTHER.

       Section 309(d)(1) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437g(d)(1)) is amended by adding at the end 
     the following:
       ``(D) In the case of a person who knowingly and willfully 
     violates section 319 or 320, the person shall be fined an 
     amount not to exceed $10,000, imprisoned for not more than 10 
     years, or both.''.

     SEC. 12. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       Section 304(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(a)) is amended by striking paragraph (11) and 
     inserting the following:
       ``(11) Filing reports using computers and facsimile 
     machines.--
       ``(A) Software.--The Commission shall--
       ``(i) develop software for use to file a designation, 
     statement, or report under this Act; and
       ``(ii) provide a copy of the software at no cost to a 
     person required to file a designation, statement, or report 
     under this Act.
       ``(B) Computers.--The Commission shall promulgate a 
     regulation under which a person required to file a 
     designation, statement, or report under this Act--
       ``(i) is required to maintain and file the 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 a 
     regulation promulgated under clause (i).
       ``(C) Facsimile machine.--The Commission shall promulgate a 
     regulation which allows a person to file a designation, 
     statement, or report required by this Act through the use of 
     a facsimile machine.
       ``(D) Verification of signature.--In promulgating a 
     regulation under this paragraph, the Commission shall provide 
     methods (other than requiring a signature on the document 
     being filed) for verifying a designation, statement, or 
     report covered by the regulation. A 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. 13. TERM LIMITS FOR FEDERAL ELECTION COMMISSION.

       (a) In General.--Section 306(a)(2)(A) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 437c(a)(2)(A)) is 
     amended in the matter preceding clause (i) by striking 
     ``terms of 6 years'' and inserting ``no more than 1 term of 8 
     years''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to appointments made after the date of enactment 
     of this Act and to Commissioners serving a term on the date 
     of enactment of this section except that such Commissioner 
     shall continue to serve until the expiration of such term.
                                 ______