[Congressional Record Volume 144, Number 60 (Wednesday, May 13, 1998)]
[House]
[Pages H3247-H3258]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                               H.R. 3721

                          Offered By: Mr. Bass

         (Amendment in the Nature of a Substitute to H.R. 2183)

       Amendment No. 1: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Real 
     Campaign 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.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

Sec. 101. Soft money of political parties.
Sec. 102. Increased contribution limits for State committees of 
              political parties and aggregate contribution limit for 
              individuals.
Sec. 103. Reporting requirements.

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

Sec. 201. Definitions.
Sec. 202. Civil penalty.
Sec. 203. Reporting requirements for certain independent expenditures.
Sec. 204. Independent versus coordinated expenditures by party.
Sec. 205. Coordination with candidates.

                         TITLE III--DISCLOSURE

Sec. 301. Filing of reports using computers and facsimile machines.
Sec. 302. Prohibition of deposit of contributions with incomplete 
              contributor information.
Sec. 303. Audits.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Use of candidates' names.
Sec. 306. Prohibition of false representation to solicit contributions.
Sec. 307. Soft money of persons other than political parties.
Sec. 308. Campaign advertising.

                    TITLE IV--PERSONAL WEALTH OPTION

Sec. 401. Voluntary personal funds expenditure limit.

[[Page H3248]]

Sec. 402. Political party committee coordinated expenditures.

                         TITLE V--MISCELLANEOUS

Sec. 501. Prohibiting involuntary use of funds of employees of 
              corporations and other employers and members of unions 
              and organizations for political activities.
Sec. 502. Use of contributed amounts for certain purposes.
Sec. 503. Limit on congressional use of the franking privilege.
Sec. 504. Prohibition of fundraising on Federal property.
Sec. 505. Penalties for knowing and willful violations.
Sec. 506. Strengthening foreign money ban.
Sec. 507. Prohibition of contributions by minors.
Sec. 508. Expedited procedures.
Sec. 509. Initiation of enforcement proceeding.

 TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

Sec. 601. Severability.
Sec. 602. Review of constitutional issues.
Sec. 603. Effective date.
Sec. 604. Regulations.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

     SEC. 101. SOFT MONEY OF POLITICAL PARTIES.

       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. 323. SOFT MONEY OF POLITICAL PARTIES.

       ``(a) National Committees.--
       ``(1) In general.--A national committee of a political 
     party (including a national congressional campaign committee 
     of a political party) and any officers or agents of such 
     party committees, shall not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of 
     funds, or spend any funds, that are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(2) Applicability.--This subsection shall apply to an 
     entity that is directly or indirectly established, financed, 
     maintained, or controlled by a national committee of a 
     political party (including a national congressional campaign 
     committee of a political party), or an entity acting on 
     behalf of a national committee, and an officer or agent 
     acting on behalf of any such committee or entity.
       ``(b) State, District, and Local Committees.--
       ``(1) In general.--An 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 such committee or 
     entity) for Federal election activity shall be made from 
     funds subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(2) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot); and
       ``(iii) a communication that refers to a clearly identified 
     candidate for Federal office (regardless of whether a 
     candidate for State or local office is also mentioned or 
     identified) and is made for the purpose of influencing a 
     Federal election (regardless of whether the communication is 
     express advocacy).
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) campaign activity conducted solely on behalf of a 
     clearly identified candidate for State or local office, 
     provided the campaign activity is not a Federal election 
     activity described in subparagraph (A);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated or used 
     to pay for a Federal election activity described in 
     subparagraph (A);
       ``(iii) the costs of a State, district, or local political 
     convention;
       ``(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;
       ``(v) 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 an individual 
     who spends more than 20 percent of the individual's time on 
     Federal election activity) as determined by a regulation 
     promulgated by the Commission to determine the non-Federal 
     share of a State, district, or local party committee's 
     administrative and overhead expenses; and
       ``(vi) the cost of constructing or purchasing an office 
     facility or equipment for a State, district or local 
     committee.
       ``(c) Fundraising Costs.--An amount spent by a national, 
     State, district, or local committee of a political party, by 
     an entity that is established, financed, maintained, or 
     controlled by a national, 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 a Federal election activity 
     shall be made from funds subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(d) 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 or direct 
     any donations to, an organization that is described in 
     section 501(c) of the Internal Revenue Code of 1986 and 
     exempt from taxation under section 501(a) of such Code (or 
     has submitted an application to the Secretary of the 
     Internal Revenue Service for determination of tax-
     exemption under such section).
       ``(e) Candidates.--
       ``(1) In general.--A candidate, individual holding Federal 
     office, or agent of a candidate or individual holding Federal 
     office shall not solicit, receive, direct, transfer, or spend 
     funds for a Federal election activity on behalf of such 
     candidate, individual, agent or any other person, unless the 
     funds are subject to the limitation, prohibitions, and 
     reporting requirements of this Act.
       ``(2) State law.--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 any 
     activity other than a Federal election activity.
       ``(3) Fundraising events.--Paragraph (1) does not apply in 
     the case of a candidate who attends, speaks, or is a featured 
     guest at a fundraising event sponsored by a State, district, 
     or local committee of a political party.''.

     SEC. 102. INCREASED CONTRIBUTION LIMITS FOR STATE COMMITTEES 
                   OF POLITICAL PARTIES AND AGGREGATE CONTRIBUTION 
                   LIMIT FOR INDIVIDUALS.

       (a) Contribution Limit for State Committees of Political 
     Parties.--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) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year that, in the aggregate, exceed $10,000''.
       (b) Aggregate Contribution Limit for Individual.--Section 
     315(a)(3) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a(a)(3)) is amended by striking ``$25,000'' and 
     inserting ``$30,000''.

     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 203) is amended by inserting after subsection (d) the 
     following:
       ``(e) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any national 
     congressional campaign committee of a political party, and 
     any subordinate committee of either, shall report all 
     receipts and disbursements during the reporting period.
       ``(2) Other political committees to which section 323 
     applies.--A political committee (not described in paragraph 
     (1)) to which section 323(b)(1) applies shall report all 
     receipts and disbursements made for activities described in 
     subparagraphs (A) and (B)(v) of section 323(b)(2).
       ``(3) 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).
       ``(4) 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)(B) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xiv) as clauses 
     (viii) through (xiii), respectively.

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

     SEC. 201. DEFINITIONS.

       (a) 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 by a person--

[[Page H3249]]

       ``(i) for a communication that is express advocacy; and
       ``(ii) that is not provided in coordination with a 
     candidate or a candidate's agent or a person who is 
     coordinating with a candidate or a candidate's agent.''.
       (b) Definition of Express Advocacy.--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) Express advocacy.--
       ``(A) In general.--The term `express advocacy' means a 
     communication that advocates the election or defeat of a 
     candidate by--
       ``(i) containing a phrase such as `vote for', `re-elect', 
     `support', `cast your ballot for', `(name of candidate) for 
     Congress', `(name of candidate) in 1997', `vote against', 
     `defeat', `reject', or a campaign slogan or words that in 
     context can have no reasonable meaning other than to advocate 
     the election or defeat of 1 or more clearly identified 
     candidates;
       ``(ii) referring to 1 or more clearly identified candidates 
     in a paid advertisement that is broadcast by a radio 
     broadcast station or a television broadcast station within 60 
     calendar days preceding the date of an election of the 
     candidate and that appears in the State in which the election 
     is occurring, except that with respect to a candidate for the 
     office of Vice President or President, the time period is 
     within 60 calendar days preceding the date of a general 
     election; or
       ``(iii) expressing unmistakable and unambiguous support for 
     or opposition to 1 or more clearly identified candidates when 
     taken as a hole and with limited reference to external 
     events, such as proximity to an election.
       ``(B) Voting record and voting guide exception.--The term 
     `express advocacy' does not include a printed communication 
     that--
       ``(i) presents information in an educational manner solely 
     about the voting record or position on a campaign issue of 2 
     or more candidates;
       ``(ii) that is not made in coordination with a candidate, 
     political party, or agent of the candidate or party; or a 
     candidate's  agent or a person who is coordinating with a 
     candidate or a candidate's agent;
       ``(iii) does not contain a phrase such as `vote for', `re-
     elect', `support`, `cast your ballot for', `(name of 
     candidate) for Congress', `(name of candidate) in 1997', 
     `vote against', `defeat', or `reject', or a campaign slogan 
     or words that in context can have no reasonable meaning other 
     than to urge the election or defeat of 1 or more clearly 
     identified candidates.''.
       (c) Defintiion of Expenditure.--Section 301(9)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is 
     amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(iii) a payment for a communication that is express 
     advocacy; and
       ``(iv) a payment made by a person for a communication 
     that--
       ``(I) refers to a clearly identified candidate;
       ``(II) is provided in coordination with the candidate, the 
     candidate's agent, or the political party of the candidate; 
     and
       ``(III) is for the purpose of influencing a Federal 
     election (regardless of whether the communication is express 
     advocacy).''.

     SEC. 202. CIVIL PENALTY.

       Section 309 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 437g) is amended--
       (1) in subsection (a)--
       (A) in paragraph (4)(A)--
       (i) in clause (i), by striking ``clause (ii)'' and 
     inserting ``clauses (ii) and (iii)''; and
       (ii) by adding at the end the following:
       (iii) If the Commission determines by an affirmative vote 
     of 4 of its members that there is probable cause to believe 
     that a person has made a knowing and willful violation of 
     section 304(c), the Commission shall not enter into a 
     conciliation agreement under this paragraph and may institute 
     a civil action for relief under paragraph (6)(A).''; and
       ``(B) in paragraph (6)(B), by inserting ``(except an action 
     instituted in connection with a knowing and willful violation 
     of section 304(c))'' after ``subparagraph (A)''; and (2) in 
     subsection (d)(1)--
       (A) in subparagraph (A), by striking ``Any person'' and 
     inserting ``Except as provided in subparagraph (D), any 
     person''; and
       (B) by adding at the end the following:
       ``(D) In the case of a knowing and willful violation of 
     section 304(c) that involves the reporting of an independent 
     expenditure, the violation shall not be subject to this 
     subsection.''.

     SEC. 203. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended--
       (1) in subsection (c)(2), by striking the undesignated 
     matter after subparagraph (C);
       (2) by redesignating paragraph (3) of subsection (c) as 
     subsection (f); and
       (3) by inserting after subsection (c)(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 contracts to make independent 
     expenditures aggregating $1,000 or more after the 20th day, 
     but more than 24 hours, before the date of 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 within 24 hours after each time the person makes or 
     contracts to make independent expenditures 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 (including a political 
     committee) that makes or contracts to make independent 
     expenditures aggregating $10,000 or more at any time up to 
     and including the 20th day before the date of an election 
     shall file a report describing the expenditures within 48 
     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 within 48 hours after each time the person makes or 
     contracts to make independent expenditures aggregating an 
     additional $10,000 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. 204. INDEPENDENT VERSUS COORDINATED EXPENDITURES BY 
                   PARTY.

       Section 315(d) of the Federal Election Campaign Act (2 
     U.S.C. 441a(d)) is amended--
       (1) in paragraph (1), by striking ``and (3)'' and inserting 
     ``, (3), and (4)''; and
       (2) by adding at the end the following:
       ``(4) Independent versus coordinated expenditures by 
     party.--
       ``(A) In general.--On or after the date on which a 
     political party nominates a candidate, a committee of the 
     political party shall not make both expenditures under this 
     subsection and independent expenditures (as defined in 
     section 301(17)) with respect to the candidate during the 
     election cycle.
       ``(B) Certification.--Before making a coordinated 
     expenditure under this subsection with respect to a 
     candidate, a committee of a political party shall file with 
     the Commission a certificate, signed by the treasurer of the 
     committee, that the committee has not and shall not make any 
     independent expenditure with respect to the candidate during 
     the same election cycle.
       ``(C) Application.--For the purposes of this paragraph, all 
     political committees established and maintained by a national 
     political party (including all congressional campaign 
     committees) and all political committees established and 
     maintained by a State political party (including any 
     subordinate committee of a State committee) shall be 
     considered to be a single political committee.
       ``(D) Transfers.--A committee of a political party that 
     submits a certification under subparagraph (B) with respect 
     to a candidate shall not, during an election cycle, transfer 
     any funds to, assign authority to make coordinated 
     expenditures under this subsection to, or receive a transfer 
     of funds from, a committee of the political party that has 
     made or intends to make an independent expenditure with 
     respect to the candidate.''.

     SEC. 205. COORDINATION WITH CANDIDATES.

       (a) Definition of Coordination With Candidates.--
       (1) Section 301(8).--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (i);
       (ii) by striking the period at the end of clause (ii) and 
     inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(iii) anything of value provided by a person in 
     coordination with a candidate for the purpose of influencing 
     a Federal election, regardless of whether the value being 
     provided is a communication that is express advocacy, in 
     which such candidate seeks nomination or election to Federal 
     office.''; and
       (B) by adding at the end the following:
       ``(C) The term `provided in coordination with a candidate' 
     includes--
       ``(i) a payment made by a person in cooperation, 
     consultation, or concern with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, or an 
     agent acting on behalf of a candidate or authorized 
     committee;
       ``(ii) a payment made by a person for the production, 
     dissemination, distribution, or republication, in whole or in 
     part, of any broadcast or any written, graphic, or other form 
     of campaign material prepared by a candidate, a candidate's 
     authorized committee, or an agent of a candidate or 
     authorized committee (not including a communication described 
     in paragraph (9)(B)(i) or a communication that expressly 
     advocates the candidate's defeat);
       ``(iii) a payment made by a person based on information 
     about a candidate's plans, projects, or needs provided to the 
     person making the payment by the candidate or the candidate's 
     agent who provides the information with the intent that the 
     payment be made;
       ``(iv) a payment made by a person if, in the same election 
     cycle in which the payment is made, the person making the 
     payment is serving or has served as a member, employee, 
     fundraiser, or agent of the candidate's authorized committee 
     in an executive or policymaking position;

[[Page H3250]]

       ``(v) a payment made by a person if the person making the 
     payment has served in any formal policy making or advisory 
     position with the candidate's campaign or has participated in 
     formal strategic or formal policymaking discussions with the 
     candidate's campaign relating to the candidate's pursuit of 
     nomination for election, or election, to Federal office, in 
     the same election cycle as the election cycle in which the 
     payment is made;
       ``(vi) a payment made by a person if, in the same election 
     cycle, the person making the payment retains the professional 
     services of any person that has provided or is providing 
     campaign-related services in the same election cycle to a 
     candidate in connection with the candidate's pursuit of 
     nomination for election, or election, to Federal office, 
     including services relating to the candidate's decision to 
     seek Federal office, and the person retained is retained to 
     work on activities relating to that candidate's campaign;
       ``(vii) a payment made by a person who has engaged in a 
     coordinated activity with a candidate described in clauses 
     (i) through (vi) for a communication that clearly refers to 
     the candidate and is for the purpose of influencing an 
     election (regardless of whether the communication is express 
     advocacy);
       ``(viii) direct participation by a person in fundraising 
     activities with the candidate or in the solicitation or 
     receipt of contributions on behalf of the candidate;
       ``(ix) communication by a person with the candidate or an 
     agent of the candidate, occurring after the declaration of 
     candidacy (including a pollster, media consultant, vendor, 
     advisors, or staff member), acting on behalf of the 
     candidate, about advertising message, allocation of 
     resources, fundraising, or other campaign matters related to 
     the candidate's campaign, including campaign operations, 
     staffing, tactics, or strategy; or
       ``(x) the provision of in-kind professional services or 
     polling data to the candidate or candidate's agent.
       ``(D) For purposes of subparagraph (C), the term 
     `professional services' includes services in support of a 
     candidate's pursuit of nomination for election, or election, 
     to Federal office such as polling, media advice, direct mail, 
     fundraising, or campaign research.
       ``(E) For purposes of subparagraph (C), all political 
     committees established and maintained by a national political 
     party (including all congressional campaign committees) and 
     all political committees established and maintained by a 
     State political party (including any subordinate committee 
     of a State committee) shall be considered to be a single 
     political committee.''.
       (2) Section 315(a)(7).--Section 315(a)(7) (2 U.S.C. 
     441a(a)(7)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) a thing of value provided in coordination with a 
     candidate, as described in section 301(8)(A)(iii), shall be 
     considered to be a contribution to the candidate, and in the 
     case of a limitation on expenditures, shall be treated as an 
     expenditure by the candidate.
       (b) Meaning of Contribution or Expenditure for the Purposes 
     of Section 316.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure, as those terms are defined in 
     section 301, and also includes''.

                         TITLE III--DISCLOSURE

     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 the following:
       ``(11)(A) 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 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 electronic form or an alternative form, including 
     the use of a facsimile machine, if not required to do so 
     under the regulation promulgated under clause (i).
       ``(B) The Commission shall make a designation, statement, 
     report, or notification that is filed electronically with the 
     Commission accessible to the public on the Internet not later 
     than 24 hours after the designation, statement, report, or 
     notification is received by the Commission.
       ``(C) In promulgating a regulation 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 
     regulation. 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. PROHIBITION OF DEPOSIT OF CONTRIBUTIONS WITH 
                   INCOMPLETE CONTRIBUTOR INFORMATION.

       Section 302 of Federal Election Campaign Act of 1971 (2. 
     U.S.C. 432) is amended by adding at the end the following:
       ``(j) Deposit of Contributions.--The treasurer of a 
     candidate's authorized committee shall not deposit, except in 
     an escrow account, or otherwise negotiate a contribution from 
     a person who makes an aggregate amount of contributions in 
     excess of $200 during a calendar year unless the treasurer 
     verifies that the information required by this section with 
     respect to the contributor is complete.''.

     SEC. 303. 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) In general.--'' 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. The selection of 
     any candidate for a random audit or investigation shall be 
     based on criteria adopted by a vote of at least 4 members of 
     the Commission.
       ``(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. 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. 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 the 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. 306. 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) 
     In General.--''; and
       (2) by adding at the end the following:
       ``(b) Solicitation of Contributions.--No person shall 
     solicit contributions by falsely representing himself or 
     herself as a candidate or as a representative of a candidate, 
     a political committee, or a political party.''.

     SEC. 307. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

       (a) In General.--Section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 
     103(c) and section 203) is amended by adding at the end the 
     following:
       ``(g) Disbursements of Persons Other Than Political 
     Parties.--
       ``(1) In general.--A person, other than a political 
     committee or a person described in section 501(d) of the 
     Internal Revenue Code of 1986, that makes an aggregate amount 
     of disbursements in excess of $50,000 during a calendar year 
     for activities described in paragraph (2) shall file a 
     statement with the Commission--
       ``(A) on a monthly basis as described in subsection 
     (a)(4)(B); 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) Federal election activity;
       ``(B) an activity described in section 316(b)(2)(A) that 
     expresses support for or opposition to a candidate for 
     Federal office or a political party; and
       ``(C) an activity described in subparagraph (C) of section 
     316(b)(2).
       ``(3) Applicability.--This subsection does not apply to--
       ``(A) a candidate or a candidate's authorized committees; 
     or
       ``(B) an independent expenditure.
       ``(4) Contents.--A statement under this section shall 
     contain such information about the disbursements made during 
     the reporting period as the Commission shall prescribe, 
     including--
       ``(A) the aggregate amount of disbursements made;
       ``(B) the name and address of the person or entity to whom 
     a disbursement is made in an aggregate amount in excess of 
     $200;
       ``(C) the date made, amount, and purpose of the 
     disbursement; and

[[Page H3251]]

       ``(D) 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.''.
       (b) Definition of Generic Campaign Activity.--Section 301 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
     seq.) (as amended by section 201(b)) is further amended by 
     adding at the end the following:
       ``(21) Generic campaign activity.--The term `generic 
     campaign activity' means an activity that promotes a 
     political party and does not promote a candidate or non-
     Federal candidate.''.

     SEC. 308. 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--
       ``(1) be of sufficient type size to be clearly readable by 
     the recipient of the communication;
       ``(2) be contained in a printed box set apart from the 
     other contents of the communication; and
       ``(3) be printed with a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in paragraphs (1) or (2) of subsection (a) shall include, in 
     addition to the requirements of that paragraph, 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 
     that--
       ``(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 
     paragraph (3) of subsection (a) shall include, in addition to 
     the requirements of that paragraph, in a clearly spoken 
     manner, the following statement: `____________ is responsible 
     for the content of this advertisement.' (with the blank to be 
     filed 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.''.

                    TITLE IV--PERSONAL WEALTH OPTION

     SEC. 401. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.

       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. 324. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMITS.

       ``(a) Eligible House Candidate.--
       ``(1) Primary election.--
       ``(A) Declaration.--A candidate is an eligible primary 
     election House candidate if the candidate files with the 
     Commission a declaration that the candidate and the 
     candidate's authorized committees will not make expenditures 
     in excess of the personal funds expenditure limit.
       ``(B) Time to file.--The declaration under subparagraph (A) 
     shall be field not later than the date on which the candidate 
     files with the appropriate State officer as a candidate for 
     the primary election.
       ``(2) General election.--
       (a) Declaration.--A candidate is an eligible general 
     election House candidate if the candidate files with the 
     Commission--
       ``(i) a declaration under penalty of perjury, with 
     supporting documentation as required by the Commission, that 
     the candidate and the candidate's authorized committees did 
     not exceed the personal funds expenditure limit in connection 
     with the primary election; and
       ``(ii) a declaration that the candidate and the candidate's 
     authorized committees will not make expenditures in excess of 
     the personal funds expenditure limit.
       ``(B) Time to file.--The declaration under subparagraph (A) 
     shall be filed not later than 7 days after the earlier of--
       ``(i) the date on which the candidate qualifies for the 
     general election ballot under State law; or
       ``(ii) if under State law, a primary or run-off election to 
     qualify for the general election ballot occurs after 
     September 1, the date on which the candidate wins the primary 
     or runoff election.
       ``(b) Personal Funds Expenditure Limit.--
       ``(1) In general.--The aggregate amount of expenditures 
     that may be made in connection with an election by an 
     eligible House candidate or the candidate's authorized 
     committees from the sources described in paragraph (2) shall 
     not exceed $50,000.
       ``(2) Sources.--A source is described in this paragraph if 
     the source is--
       ``(A) personal funds of the candidate and members of the 
     candidate's immediate family; or
       ``(B) proceeds of indebtedness incurred by the candidate or 
     a member of the candidate's immediate family.
       ``(c) Certification by the Commission.--
       ``(1) In general.--The Commission shall determine whether a 
     candidate has met the requirements of this section and, based 
     on the determination, issue a certification stating whether 
     the candidate is an eligible House candidate.
       ``(2) Time for certification.--Not later than 7 business 
     days after a candidate files a declaration under paragraph 
     (1) or (2) of subsection (a), the Commission shall certify 
     whether the candidate is an eligible House candidate.
       ``(3) Revocation.--The Commission shall revoke a 
     certification under paragraph (1), based on information 
     submitted in such form and manner as the Commission may 
     require or on information that comes to the Commission by 
     other means, if the Commission determines that a candidate 
     violates the personal funds expenditure limit.
       ``(4) Determinations by commission.--A determination made 
     by the Commission under this subsection shall be final, 
     except to the extent that the determination is subject to 
     examination and audit by the Commission and to judicial 
     review.
       ``(d) Penalty.--If the Commission revokes the certification 
     of an eligible House candidate--
       ``(1) the Commission shall notify the candidate of the 
     revocation; and
       ``(2) the candidate and a candidate's authorized committees 
     shall pay to the Commission an amount equal to the amount of 
     expenditures made by a national committee of a political 
     party or a State committee of a political party in connection 
     with the general election campaign of the candidate under 
     section 315(d).''.

     SEC. 402. POLITICAL PARTY COMMITTEE COORDINATED EXPENDITURES

       Section 315(d) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(d)) (as amended by section 204) is amended by 
     adding at the end the following:
       ``(5) This subsection does not apply to expenditures made 
     in connection with the general election campaign of a 
     candidate for the House of Representatives who is not an 
     eligible House candidate (as defined in section 324(a)).''.

                         TITLE V--MISCELLANEOUS

     SEC. 501. PROHIBITING INVOLUNTARY USE OF FUNDS OF EMPLOYEES 
                   OF CORPORATIONS AND OTHER EMPLOYERS AND MEMBERS 
                   OF UNIONS AND ORGANIZATIONS FOR POLITICAL 
                   ACTIVITIES.

       (a) In General.--Section 316 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding at 
     the end the following new subsection:
       ``(c)(1)(A) Except with the separate, prior, written, 
     voluntary authorization of the individual involved, it shall 
     be unlawful--
       ``(i) for any national bank or corporation described in 
     this section to collect from or assess a stockholder or 
     employee any portion of any dues, initiation fee, or other 
     payment made as a condition of employment which will be used 
     for political activity in which the national bank or 
     corporation is engaged; and
       ``(ii) for any labor organization described in this section 
     to collect from or assess a member or non-member any portion 
     of any dues, initiation fee, or other payment which will be 
     used for political activity in which the labor organization 
     is engaged.
       ``(B) An authorization described in subparagraph (A) shall 
     remain in effect until revoked and may be revoked at any 
     time. Each entity collecting from or assessing amounts from 
     an individual with an authorization in effect under such 
     subparagraph shall provide the individual with a statement 
     that the individual may at any time revoke the authorization.
       ``(2)(A) Prior to the beginning of any 12-month period (as 
     determined by the corporation), each corporation described in 
     this section shall provide each of its shareholders with a 
     notice containing the following:
       ``(i) The proposed aggregate amount for disbursements for 
     political activities by the corporation for the period.
       ``(ii) The individual's applicable percentage and 
     applicable pro rata amount for the period.
       ``(iii) A form that the individual may complete and return 
     to the corporation to indicate the individual's objection to 
     the disbursement of amounts for political activities during 
     the period.
       ``(B) It shall be unlawful for a corporation to which 
     subparagraph (A) applies to make disbursements for political 
     activities during the 12-month period described in such 
     subparagraph in an amount greater than----
       ``(i) the proposed aggregate amount for such disbursements 
     for the period, as specified in the notice provided under 
     subparagraph (A); reduced by
       ``(ii) the sum of the applicable pro rata amounts for such 
     period of all shareholders who return the form described in 
     subparagraph (A)(iii) to the corporation prior to the 
     beginning of the period.

[[Page H3252]]

       ``(C) In this paragraph, the following definitions shall 
     apply
       ``(i) The term `applicable percentage' means, with respect 
     to a shareholder of a corporation, the amount (expressed as a 
     percentage) equal to the number of shares of the corporation 
     (within a particular class or type of stock) owned by the 
     shareholder at the time the notice described in subparagraph 
     (A) is provided, divided by the aggregate number of such 
     shares owned by all shareholders of the corporation at such 
     time.
       ``(ii) The term `applicable pro rata amount' means, with 
     respect to a shareholder for a 12-month period, the product 
     of the shareholder's applicable percentage for the period and 
     the proposed aggregate amount for disbursements for political 
     activities by the corporation for the period, as specified in 
     the notice provided under subparagraph (A).
       ``(3) For purposes of this subsection, the term `political 
     activity' means any activity carried out for the purpose of 
     influencing (in whole or in part) any election for Federal 
     office, influencing the consideration or outcome of any 
     Federal legislation or the issuance or outcome of any Federal 
     regulations, or educating individuals about candidates for 
     election for Federal office or any Federal legislation, law, 
     or regulations.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to amounts collected or assessed on or after the 
     date of the enactment of this Act.

     SEC. 502. 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(e) 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.--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
       ``(I) dues, fees, and other payments to a health club or 
     recreational facility.''.

     SEC. 503. LIMIT ON CONGRESSIONAL USE OF THE FRANKING 
                   PRIVILEGE.

       Section 3210(a)(6) of title 39, United States Code, is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(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.''.

     SEC. 504. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY.

       Section 607 of title 18, United States Code, is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Prohibition.--
       ``(1) In general.--It shall be unlawful for any person to 
     solicit or receive a donation of money or other thing of 
     value of a political committee or a candidate for Federal, 
     State or local office from a person who is located in a room 
     or building occupied in the discharge of official duties by 
     an officer or employee of the United States. An individual 
     who is an officer or employee of the Federal Government, 
     including the President, Vice President, and Members of 
     Congress, shall not solicit a donation of money or other 
     thing of value for a political committee or candidate for 
     Federal, State or local office, while in any room or building 
     occupied in the discharge of official duties by an officer or 
     employee of the United States, from any person.
       ``(2) Penalty.--A person who violates this section shall be 
     fined not more than $5,000, imprisoned more than 3 years, or 
     both.''; and
       (2) by inserting in subsection (b) after ``Congress'' ``or 
     Executive Office of the President''.

     SEC. 505. PENALTIES FOR KNOWING AND WILLFUL VIOLATIONS.

       (a) Increased Penalties.--Section 309(a) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--
       (1) in paragraphs (5)(A), (6)(A), and (6)(B), by striking 
     ``$5,000'' and inserting ``$10,000''; and
       (2) in paragraphs (b)(B) and (6)(C), by striking ``$10,000 
     or an amount equal to 200 percent'' and inserting ``$20,000 
     or an amount equal to 300 percent''.
       (b) Equitable Remedies.--Section 309(a)(5)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) 
     is amended by striking the period at the end and inserting 
     ``, and may include equitable remedies or penalties, 
     including disgorgement of funds to the Treasury or community 
     service requirements (including requirements to participate 
     in public education programs).''.
       (c) Automatic Penalty for Late Filing.--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) LTY for late filing.--
       ``(A) In general.--
       ``(i) Monetary penalties.--The Commission shall establish a 
     schedule of mandatory monetary penalties that shall be 
     imposed by the Commission for failure to meet a time 
     requirement for filing under section 304.
       ``(ii) Required filing.--In addition to imposing a penalty, 
     the Commission may require a report that has not been filed 
     within the time requirements of section 304 to be filed by a 
     specific date.
       ``(iii) Procedure.--A penalty or filing requirement imposed 
     under this paragraph shall not be subject to paragraph (1), 
     (2), (3), (4), (5), or (12).
       ``(B) Filing an exception.--
       ``(i) Time to file.--A political committee shall have 30 
     days after the imposition of a penalty or filing requirement 
     by the Commission under this paragraph in which to file an 
     exception with the Commission.
       ``(ii) Time for Commission to rule.--Within 30 days after 
     receiving an exception, the Commission shall make a 
     determination that is a final agency action subject to 
     exclusive review by the United States Court of Appeals for 
     the District of Columbia Circuit under section 706 of 
     title 5, United States Code, upon petition filed in that 
     court by the political committee or treasurer that is the 
     subject of the agency action, if the petition is filed 
     within 30 days after the date of the Commission action for 
     which review is sought.'';
       (2) in paragraph (5)(D)--
       (A) by inserting after the first sentence the following: 
     ``In any case in which a penalty or filing requirement 
     imposed on a political committee or treasurer under paragraph 
     (13) has not been satisfied, the Commission may institute a 
     civil action for enforcement under paragraph (6)(A).''; and
       (B) by inserting before the period at the end of the last 
     sentence the following: ``or has failed to pay a penalty or 
     meet a filing requirement imposed under paragraph (13)''; and
       (3) in paragraph (6)(A), by striking ``paragraph (4)(A)'' 
     and inserting ``paragraph (4)(A) or (13)''.

     SEC. 506. STRENGTHENING FOREIGN MONEY BAN.

       Section 319 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441e) is amended--
       (1) by striking the heading and inserting the following: 
     ``contributions and donations by foreign nationals''; and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for--
       ``(1) a foreign national, directly or indirectly, to make--
       ``(A) a donation of money or other thing of value, or to 
     promise expressly or impliedly to make a donation, in 
     connection with a Federal, State, or local election to a 
     political committee or a candidate for Federal office; or
       ``(ii) a contribution or donation to a committee of a 
     political party; or
       ``(B) for a person to solicit, accept, or receive such 
     contribution or donation from a foreign national.''.

     SEC. 507. PROHIBITION OF CONTRIBUTIONS BY MINORS.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) (as amended by sections 101 and 401) is 
     amended by adding at the end the following:

     ``SEC. 325. PROHIBITION OF CONTRIBUTIONS BY MINORS.

       An individual who is 17 years old or younger shall not make 
     a contribution to a candidate or a contribution or donation 
     to a committee of a political party.''.

     SEC. 508. EXPEDITED PROCEDURES.

       (a) In General.--Section 309(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 437g(a)) (as amended by 
     section 505(c)) is amended by adding at the end the 
     following:
       ``(14)(A) If the complaint in a proceeding was filed within 
     60 days preceding the date of 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, the Commission may order expedited 
     proceedings, shortening the time periods for proceedings 
     under

[[Page H3253]]

     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.
       ``(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
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     summarily dismiss the complaint.''.
       (b) Referral to Attorney General.--Section 309(a)(5) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) 
     is amended by striking subparagraph (C) and inserting the 
     following:
       ``(C) The Commission may at any time, by an affirmative 
     vote of at least 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 limitation set forth in this 
     section.''.

     SEC. 509. INITIATION OF ENFORCEMENT PROCEEDING.

       Section 309(a)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437g(a)(2)) is amended by striking ``reason to 
     believe that'' and inserting ``reason to investigate 
     whether''.

 TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

     SEC. 601. 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. 602. 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. 603. EFFECTIVE DATE.

       Except as otherwise provided in this Act, this Act and the 
     amendments made by this Act take effect January 1, 1999.

     SEC. 604. 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.

                               H.R. 3721

                        Offered by Mr. Campbell

         (Amendment in the Nature of a Substitute to H.R. 2183)

       Amendment No. 2: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Can't Vote, Can't Contribute 
     Campaign Reform Act of 1998''.

                 TITLE I--LIMITATIONS ON CONTRIBUTIONS

     SEC. 101. LIMITATION ON AMOUNT OF CONTRIBUTIONS TO CANDIDATES 
                   BY INDIVIDUALS NOT ELIGIBLE TO VOTE IN STATE OR 
                   DISTRICT INVOLVED.

       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 ``in 
     the aggregate, exceed $1,000;'' and inserting the following: 
     ``in the aggregate--
       ``(i) in the case of contributions made to a candidate for 
     election for Senator or for Representative in or Delegate or 
     Resident Commissioner to the Congress by an individual who is 
     not eligible to vote in the State or Congressional district 
     involved (as the case may be) at the time the contribution is 
     made (other than an individual who would be eligible to vote 
     at such time but for the failure of the individual to 
     register to vote), exceed $100; or
       ``(ii) in the case of any other contributions, exceed 
     $1,000;''.

     SEC. 102. BAN ON ACCEPTANCE OF CONTRIBUTIONS MADE BY NONPARTY 
                   POLITICAL ACTION COMMITTEES.

       Section 315 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a) is amended by adding at the end the following 
     new subsection:
       ``(i)(1) Notwithstanding any other provision of this Act, 
     no candidate for election for Federal office may accept any 
     contribution from a political action committee.
       ``(2) In this subsection, the term `political action 
     committee' means any political committee which is not--
       ``(A) the principal campaign committee of a candidate; or
       ``(B) a national, State, local, or district committee of a 
     political party, including any subordinate committee 
     thereof.''.

  TITLE II--ENSURING VOLUNTARINESS OF CONTRIBUTIONS OF CORPORATIONS, 
               UNIONS, AND OTHER MEMBERSHIP ORGANIZATIONS

     SEC. 201. PROHIBITING INVOLUNTARY USE OF FUNDS OF EMPLOYEES 
                   OF CORPORATIONS AND OTHER EMPLOYERS AND MEMBERS 
                   OF UNIONS AND ORGANIZATIONS FOR POLITICAL 
                   ACTIVITIES.

       (a) In General.--Section 316 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding at 
     the end the following new subsection:
       ``(c)(1)(A) Except with the separate, prior, written, 
     voluntary authorization of the individual involved, it shall 
     be unlawful--
       ``(i) for any national bank or corporation described in 
     this section (other than a corporation exempt from Federal 
     taxation under section 501(c) of the Internal Revenue Code of 
     1986) to collect from or assess a stockholder or employee any 
     portion of any dues, initiation fee, or other payment made as 
     a condition of employment which will be used for political 
     activity in which the national bank or corporation is 
     engaged; and
       ``(ii) for any labor organization described in this section 
     to collect from or assess a member or nonmember any portion 
     of any dues, initiation fee, or other payment which will be 
     used for political activity in which the labor organization 
     is engaged.
       ``(B) An authorization described in subparagraph (A) shall 
     remain in effect until revoked and may be revoked at any 
     time. Each entity collecting from or assessing amounts from 
     an individual with an authorization in effect under such 
     subparagraph shall provide the individual with a statement 
     that the individual may at any time revoke the authorization.
       ``(2)(A) Prior to the beginning of any 12-month period (as 
     determined by the corporation), each corporation to which 
     paragraph (1) applies shall provide each of its shareholders 
     with a notice containing the following:
       ``(i) The proposed aggregate amount for disbursements for 
     political activities by the corporation for the period.
       ``(ii) The individual's applicable percentage and 
     applicable pro rata amount for the period.
       ``(iii) A form that the individual may complete and return 
     to the corporation to indicate the individual's objection to 
     or approval of the disbursement of amounts for political 
     activities during the period.
       ``(B) It shall be unlawful for a corporation to which 
     subparagraph (A) applies to make disbursements for political 
     activities during the 12-month period described in such 
     subparagraph in an amount greater than the sum of the 
     applicable pro rata amounts for such period of all 
     shareholders who return the form described in subparagraph 
     (A)(iii) to the corporation prior to the beginning of the 
     period and indicate their approval of such disbursements.
       ``(C) In this paragraph, the following definitions shall 
     apply:
       ``(i) The term `applicable percentage' means, with respect 
     to a shareholder of a corporation, the amount (expressed as a 
     percentage) equal to the number of shares of the corporation 
     (within a particular class or type of stock) owned by the 
     shareholder at the time the notice described in subparagraph 
     (A) is provided, divided by the aggregate number of such 
     shares owned by all shareholders of the corporation at such 
     time.
       ``(ii) The term `applicable pro rata amount' means, with 
     respect to a shareholder for a 12-month period, the product 
     of the shareholder's applicable percentage for the period and 
     the proposed aggregate amount for disbursements for political 
     activities by the corporation for the period, as specified in 
     the notice provided under subparagraph (A).
       ``(3) For purposes of this subsection, the term `political 
     activity' means any activity carried out for the purpose of 
     influencing (in whole or in part) any election for Federal 
     office, influencing the consideration or outcome of any 
     Federal legislation or the issuance or outcome of any Federal 
     regulations, or educating individuals about candidates for 
     election for Federal office or any Federal legislation, law, 
     or regulations.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to amounts collected or assessed on or after the 
     date of the enactment of this Act.

                 TITLE III--RESTRICTIONS ON SOFT MONEY

     SEC. 301. BAN ON SOFT MONEY OF NATIONAL POLITICAL PARTIES AND 
                   CANDIDATES; BAN ON USE OF SOFT MONEY BY STATE 
                   POLITICAL PARTIES FOR FEDERAL ELECTION 
                   ACTIVITY.

       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 new section:


``restrictions on use of soft money by political parties and candidates

       ``Sec. 323. (a) Ban on Use by National Parties.--
       ``(1) In general.--No political committee of a national 
     political party may solicit, receive, or direct any 
     contributions, donations, or transfers of funds, or spend any 
     funds, which are not subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(2) Applicability.--Paragraph (1) shall apply to any 
     entity which is established, financed, maintained, or 
     controlled (directly or indirectly) by, or which acts on 
     behalf of, a political committee of a national political 
     party, including any national congressional campaign 
     committee of such a party and any officer or agent of such an 
     entity or committee.
       ``(b) Candidates.--
       ``(1) In general.--No candidate for Federal office, 
     individual holding Federal office, or any agent of such a 
     candidate or officeholder may solicit, receive, or direct--
       ``(A) any funds in connection with any Federal election 
     unless the funds are subject to

[[Page H3254]]

     the limitations, prohibitions and reporting requirements of 
     this Act;
       ``(B) any funds that are to be expended in connection with 
     any election for other than a Federal office unless the funds 
     are not in excess of the applicable amounts permitted with 
     respect to contributions to candidates and political 
     committees under paragraphs (1) and (2) of section 315(a), 
     and are not from sources prohibited from making contributions 
     by this Act with respect to elections for Federal office; or
       ``(C) any funds on behalf of any person which are not 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act if such funds are for the purpose of 
     financing any activity on behalf of a candidate for election 
     for Federal office or any communication which refers to a 
     clearly identified candidate for election for Federal office.
       ``(2) Exception for certain activities.--Paragraph (1) 
     shall not apply to--
       ``(A) the solicitation, receipt, or direction of funds by 
     an individual who is a candidate for a non-Federal office if 
     such activity is permitted under State law for such 
     individual's non-Federal campaign committee; or
       ``(B) the attendance by an individual who holds Federal 
     office at a fundraising event for a State or local committee 
     of a political party of the State which the individual 
     represents as a Federal officeholder, if the event is held in 
     such State.
       ``(c) State Parties.--
       ``(1) In general.--Any payment by a State committee of a 
     political party for a mixed political activity--
       ``(A) shall be subject to limitation and reporting under 
     this Act as if such payment were an expenditure; and
       ``(B) may be paid only from an account that is subject to 
     the requirements of this Act.
       ``(2) Mixed political activity defined.--As used in this 
     section, the term `mixed political activity' means, with 
     respect to a payment by a State committee of a political 
     party, an activity (such as a voter registration program, a 
     get-out-the-vote drive, or general political advertising) 
     that is both for the purpose of influencing an election for 
     Federal office and for any purpose unrelated to influencing 
     an election for Federal office.
       ``(d) Prohibiting Transfers of Non-Federal Funds Between 
     State Parties.--A State committee of a political party may 
     not transfer any funds to a State committee of a political 
     party of another State unless the funds are subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(e) Applicability to Funds From All Sources.--This 
     section shall apply with respect to funds of any individual, 
     corporation, labor organization, or other person.''.

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       Except as otherwise provided, the amendments made by this 
     Act shall apply with respect to elections occurring after 
     January 1999.

                          Offered by Mr. Obey

          Amendment in the Nature of a Substitute to H.R. 2183

       Amendment No. 3: Strike all after the enacting clause and 
     insert the following:

                    SECTION 1. SHORT TITLE; FINDING.

       (a) Short Title.--This Act may be cited as the ``Let the 
     Public Decide Campaign Finance Reform Act''.
       (b) Finding.--The Congress finds that the existing system 
     of private political contributions has become a fundamental 
     threat to the integrity of the national election process and 
     that the provisions contained in this Act are necessary to 
     prevent the corruption of the public's faith in the Nation's 
     system of governance.

  TITLE I--EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR HOUSE OF 
                   REPRESENTATIVES GENERAL ELECTIONS

     SEC. 101. NEW TITLE OF FEDERAL ELECTION CAMPAIGN ACT OF 1971.

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

 ``TITLE V--EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR HOUSE OF 
                   REPRESENTATIVES GENERAL ELECTIONS

     SEC. 501. LIMITATION ON EXPENDITURES IN HOUSE OF 
                   REPRESENTATIVES GENERAL ELECTIONS.

       ``A candidate in a House of Representatives general 
     election may not make expenditures other than as provided in 
     this title.

     SEC. 502. SOURCES OF AMOUNTS FOR EXPENDITURES BY CANDIDATES 
                   IN HOUSE OF REPRESENTATIVES GENERAL ELECTIONS.

       ``The only sources of amounts for expenditures by 
     candidates in House of Representatives general elections 
     shall be--
       ``(1) the Grassroots Good Citizenship Fund, under section 
     505; and
       ``(2) additional amounts from State and national party 
     committees under section 506.

     SEC. 503. DISTRICT LIMITATION ON EXPENDITURES BY MAJOR PARTY 
                   CANDIDATES.

       ``(a) In General.--Except as provided in section 506, the 
     maximum amounts of expenditures by major party candidates in 
     House of Representatives general elections shall be based on 
     the median household income of the districts involved, as 
     provided for in subsections (b) and (c).
       ``(b) Maximum for Wealthiest District.--In the 
     congressional district with the highest median household 
     income, maximum combined expenditures for all major party 
     candidates with respect to a House of Representatives general 
     election shall be a total of $1,000,000.
       ``(c) Maximum for Other Districts.--In each congressional 
     district, other than the district referred to in subsection 
     (b), the maximum combined expenditures for all major party 
     candidates with respect to a House of Representatives general 
     election shall be an amount equal to--
       ``(1) the maximum amount referred to in subsection (b), 
     less
       ``(2) the amount equal to--
       ``(A) \2/3\ of the percentage difference between the median 
     household income of the district involved and the median 
     household income of the district referred to in subsection 
     (b), times
       ``(B) the maximum amount referred to in subsection (b).
       ``(d) Allocation.--The maximum expenditure for a major 
     party candidate in a congressional district shall be 50 
     percent of the maximum amount under subsection (b) or (c), as 
     applicable.

     SEC. 504. DISTRICT LIMITATION ON EXPENDITURES BY THIRD PARTY 
                   AND INDEPENDENT CANDIDATES.

       ``(a) In General.--Except as provided in section 506, the 
     maximum amounts of expenditures by third party and 
     independent candidates in House of Representatives general 
     elections shall be the amount allocated under subsection (b).
       ``(b) Allocation.--The maximum expenditure for a third 
     party or independent candidate in a congressional district 
     shall be--
       ``(1) the amount that bears the same ratio to the maximum 
     amount under subsection (b) or (c) of section 503, as 
     applicable, as the total popular vote in the district for 
     candidates of the third party or for all independent 
     candidates (as the case may be) bears to the total popular 
     vote for all candidates in the 5 preceding general elections; 
     or
       ``(2) in the case of a candidate in a district in which no 
     third party or independent candidates (as the case may be) 
     received votes in the 5 preceding general elections, the 
     amount corresponding to the number of signatures presented to 
     and verified by the Commission according to the following 
     table:

      ``20,000 signatures.......................................$75,000
      30,000 signatures.........................................100,000
      40,000 signatures.........................................150,000
      50,000 signatures.........................................200,000

     SEC. 505. GRASSROOTS GOOD CITIZENSHIP FUND.

       ``(a) Creation of Fund.--There is established in the 
     Treasury a trust fund to be known as the `Grassroots Good 
     Citizenship Fund', consisting of such amounts as may be 
     credited to such fund as provided in this section.
       ``(b) District Accounts.--There shall be established within 
     the Grassroots Good Citizenship Fund an account for each 
     congressional district. The accounts so established shall be 
     administered by the Commission for the purpose of 
     distributing amounts under this title.
       ``(c) Payments to Candidates.--Subject to subsection (d), 
     the Commission shall pay to each candidate from the 
     Grassroots Good Citizenship Fund the maximum amount 
     calculated for such candidate under section 503 or 504.
       ``(d) Insufficient Amounts.--If, as determined by the 
     Commission, there are insufficient amounts in the Grassroots 
     Good Citizenship Fund for payments under subsection (c), the 
     Commission may reduce payments to candidates so that each 
     candidate receives a pro rata portion of the amounts that are 
     available.
       ``(e) Transfers to Fund.--There are hereby credited to the 
     Grassroots Good Citizenship Fund amounts equivalent to the 
     amounts designated under section 6097 of the Internal Revenue 
     Code of 1986.
       ``(f) Expenditures.--Amounts in the Grassroots Good 
     Citizenship Fund shall be available for the purpose of 
     providing amounts for expenditure by candidates in House of 
     Representatives general elections in accordance with this 
     title.

     SEC. 506. ADDITIONAL AMOUNTS FROM STATE AND NATIONAL PARTY 
                   COMMITTEES.

       ``(a) Contributions.--In addition to amounts made available 
     under section 503 or 504, in the case of a candidate in a 
     House of Representatives general election who is the 
     candidate of a political party, the State and national 
     committees of that political party may make contributions to 
     the candidate totaling not more than 5 percent of the maximum 
     expenditure applicable to the candidate under section 503 or 
     section 504.
       ``(b) Expenditures.--A House of Representatives candidate 
     who is the candidate of a political party may make 
     expenditures of the amounts received under subsection (a).

     SEC. 507. PUBLIC SERVICE ANNOUNCEMENTS.

       ``(a) In General.--Beginning on January 15, and continuing 
     through April 15 of each year, the Commission shall carry out 
     a program, utilizing broadcast announcements and other 
     appropriate means, to inform the public of the existence and 
     purpose of the Grassroots Good Citizenship Fund and the role 
     that individual citizens can play in the election process by 
     voluntarily contributing to the fund. The announcements shall 
     be broadcast during prime time viewing hours in 30-second 
     advertising segments equivalent to 200 gross rating points 
     per network per week. The Commission shall ensure that the

[[Page H3255]]

     maximum number of taxpayers shall be exposed to these 
     announcements. Television networks, as defined by the Federal 
     Communications Commission, shall provide the broadcast time 
     under this section as part of their obligations in the public 
     interest under the Communications Act of 1934. The Federal 
     Election Commission shall encourage broadcast outlets other 
     than the above mentioned television networks including radio 
     to provide similar announcements.
       ``(b) Gross Rating Point.--The term `gross rating point' is 
     a measure of the total gross weight delivered. It is the sum 
     of the ratings for individual programs. Since a household 
     rating period is 1 percent of the coverage base, 200 gross 
     rating points means 2 messages a week per average household.

     ``SEC. 508. DEFINITIONS.

       ``As used in this title--
       ``(1) the term `House of Representatives candidate' means a 
     candidate for the office of Representative in, or Delegate or 
     Resident Commissioner to, the Congress;
       ``(2) the term `median household income' means, with 
     respect to a congressional district, the median household 
     income of that district, as determined by the Commission, 
     using the most current data from the Bureau of the Census;
       ``(3) the term `major party' means, with respect to a House 
     of Representatives general election, a political party whose 
     candidate for the office of Representative in, or Delegate or 
     Resident Commissioner to, the Congress in the preceding 
     general election received, as the candidate of such party, 25 
     percent or more of the total number of popular votes received 
     by all candidates for such office;
       ``(4) the term `third party' means with respect to a House 
     of Representatives general election, a political party whose 
     candidate for the office of Representative in, or Delegate or 
     Resident Commissioner to, the Congress in the preceding 
     general election received, as the candidate of such party, 
     less than 25 percent of the total number of popular votes 
     received by all candidates for such office;
       ``(5) the term `independent candidate' means, with respect 
     to a House of Representatives general election, a candidate 
     for the office of Representative in, or Delegate or Resident 
     Commissioner to, the Congress who is not the candidate of a 
     major party or a third party; and
       ``(6) the term `House of Representatives general election' 
     means a general election for the office of Representative in, 
     or Delegate or Resident Commissioner to, the Congress.''.

     TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

     SEC. 201. DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR 
                   GRASSROOTS GOOD CITIZENSHIP FUND.

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

``PART IX--DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR GRASSROOTS 
                         GOOD CITIZENSHIP FUND

     ``Sec. 6097. Designation of overpayments for Grassroots Good 
                           Citizenship Fund.

     SEC. 6097. DESIGNATION OF OVERPAYMENTS FOR GRASSROOTS GOOD 
                   CITIZENSHIP FUND.

       ``(a) In General.--With respect to each taxpayer's return 
     for the taxable year of the tax imposed by chapter 1, such 
     taxpayer may designate that--
       ``(1) a specified portion (not less than $1 or more than 
     $10,000, and not less than $1 or more than $20,000 in the 
     case of a joint return) of any overpayment of tax for such 
     taxable year, and
       ``(2) any contribution which the taxpayer includes with 
     such return,

     shall be paid over to the Grassroots Good Citizenship Fund 
     under section 505 of the Federal Election Campaign Act of 
     1971.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year 
     only at the time of filing the return of tax imposed by 
     chapter 1 for such taxable year. Such designation shall be 
     made on the 1st page of the return.
       ``(c) Overpayments Treated as Refunded.--For purposes of 
     this title, any portion of an overpayment of tax designated 
     under subsection (a) shall be treated as being refunded to 
     the taxpayer as of the last date prescribed for filing the 
     return of tax imposed by chapter 1 (determined without regard 
     to extensions) or, if later, the date the return is filed.''
       (b) Clerical Amendment.--The table of parts for such 
     subchapter A is amended by adding at the end thereof the 
     following new item:

 ``Part IX. Designation of overpayments and contributions for certain 
       purposes relating to House of Representatives elections.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

     SEC. 202. INCREASE IN CORPORATE INCOME TAX ON TAXABLE INCOME 
                   ABOVE $10,000,000.

       (a) In General.--Paragraph (4) of subsection (b) of section 
     11 of the Internal Revenue Code of 1986 is amended by 
     striking ``35 percent'' and inserting ``35.1 percent''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
       (c) Use of Amounts Received.--Amounts received by reason of 
     the amendment made by subsection (a) shall be paid over to 
     the Grassroots Good Citizenship Fund under section 505 of the 
     Federal Election Campaign Act of 1971.

     TITLE III--BAN ON USE OF SOFT MONEY BY HOUSE CANDIDATES

     SEC. 301. BAN ON USE OF SOFT MONEY BY HOUSE CANDIDATES.

       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 new section:


        ``ban on use of non-regulated funds by house candidates

       ``Sec. 323. (a) In General.--No funds may be solicited, 
     disbursed, or otherwise used with respect to any House of 
     Representatives election unless the funds are subject to the 
     limitations and prohibitions of this Act.
       ``(b) House of Representatives Election Defined.--In this 
     section, the term `House of Representatives election' means 
     any election for the office of Representative in, or Delegate 
     or Resident Commissioner to, the Congress.''.

     TITLE IV--INDEPENDENT EXPENDITURES

     SEC. 401. BAN ON INDEPENDENT EXPENDITURES IN HOUSE OF 
                   REPRESENTATIVES ELECTIONS.

       (a) In General.--Section 315 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a) is amended by adding at 
     the end the following new subsection;
       ``(i) No person may make any independent expenditure with 
     respect to an election for the office of Representative in, 
     or Delegate or Resident Commissioner to, the Congress.''.
       (b) Clarification of Definitions Relating to Independent 
     Expenditures.--
       (1) In general.--Section 301 of such Act (2 U.S.C. 431) is 
     amended by striking paragraphs (17) and (18) and inserting 
     the following new paragraphs:
       ``(17) The term `independent expenditure' means an 
     expenditure for a communication (other than a communication 
     which is described in clause (i) or clause (iii) of paragraph 
     (9)(B) or which would be described in such clause if the 
     communication were otherwise treated as an expenditure under 
     this title)--
       ``(A) which is made during the 90-day period ending on the 
     date of a general election for Federal office and which 
     identifies a candidate for election for such office by name, 
     image, or likeness; or
       ``(B) which contains express advocacy and is made without 
     the participation or cooperation of, or consultation with, a 
     candidate or a candidate's representative.
       ``(18) The term `express advocacy' means, when a 
     communication is taken as a whole and with limited reference 
     to external events, an expression of support for or 
     opposition to a specific candidate, to a specific group of 
     candidates, or to candidates of a particular political party, 
     or 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 an expression which 
     would reasonably be construed as intending to influence the 
     outcome of an election.''.
       (2) Contribution definition amendment.--Section 301(8)(A) 
     of such Act (2 U.S.C. 431(8)(A)) is amended--
       (A) in clause (i), by striking ``or'' after the semicolon 
     at the end;
       (B) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following new clause:
       ``(iii) any payment or other transaction referred to in 
     paragraph (17)(A) that does not qualify as an independent 
     expenditure under paragraph (17)(B).''.

     SEC. 402. BAN ON USE OF SOFT MONEY FOR CERTAIN EXPENDITURES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.), as amended by section 301, is further 
     amended by adding at the end the following new section:


       ``ban on use of non-federal funds for certain expenditures

       ``Sec. 324. (a) In General.--No person may disburse any 
     funds for any expenditure described in subsection (b) unless 
     the funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(b) Expenditures Described.--The expenditures described 
     in this subsection are as follows:
       ``(1) An expenditure made by an authorized committee of a 
     candidate for Federal office or a political committee of a 
     political party.
       ``(2) An expenditure made by a person who, during the 
     election cycle, has made a contribution to a candidate, where 
     the expenditure is in support of that candidate or in 
     opposition to another candidate for the same office.
       ``(3) An expenditure made by a person, or a political 
     committee established, maintained or controlled by such 
     person, who is required to register, under section 308 of the 
     Federal Regulation of Lobbying Act (2 U.S.C. 267) or the 
     Foreign Agents Registration Act (22 U.S.C. 611) or any 
     successor Federal law requiring a person who is a lobbyist or 
     foreign agent to register.
       ``(4) An expenditure made by a person who, during the 
     election cycle, has communicated with or received information 
     from a candidate or a representative of that candidate 
     regarding activities that have the purpose of influencing 
     that candidate's election to Federal office, where the 
     expenditure is in support of that candidate or in opposition 
     to another candidate for that office.

[[Page H3256]]

       ``(5) An expenditure if, in the same election cycle, the 
     person making the expenditure is or has been--
       ``(A) authorized to raise or expend funds on behalf of the 
     candidate or the candidate's authorized committees; or
       ``(B) serving as a member, employee, or agent of the 
     candidate's authorized committees in an executive or 
     policymaking position.''.

   TITLE V--PROVISIONS RELATING TO HOUSE OF REPRESENTATIVES PRIMARY 
                               ELECTIONS

     SEC. 501. LIMITATION ON EXPENDITURES IN HOUSE OF 
                   REPRESENTATIVES ELECTIONS OTHER THAN GENERAL 
                   ELECTIONS.

       Section 315 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a), as amended by section 401, is further amended 
     by adding at the end the following new subsection:
       ``(j)(1) The maximum expenditures for a candidate for the 
     office of Representative in, or Delegate or Resident 
     Commissioner to, the Congress in any election other than a 
     general election may not exceed \1/3\ of the maximum 
     applicable to the candidate in a general election under title 
     V.
       ``(2) For purposes of limitations under this Act, any 
     expenditure by a candidate referred to in paragraph (1), 
     including an expenditure for the preparation, production, or 
     presentation of communications through electronic media or in 
     written form, shall, regardless of when the expenditure is 
     made, be attributed to the appropriate general election, 
     unless such expenditure is made solely for an election other 
     than a general election.''.

     SEC. 502. LIMITATION ON ACCEPTANCE OF LARGE DONOR 
                   MULTICANDIDATE POLITICAL COMMITTEE 
                   CONTRIBUTIONS BY HOUSE OF REPRESENTATIVES 
                   CANDIDATES.

       Section 315 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a), as amended by sections 401 and 501, is further 
     amended by adding at the end the following new subsection:
       ``(k)(1) A candidate for the office of Representative in, 
     or Delegate or Resident Commissioner to, the Congress, and 
     the authorized political committees of such candidate, may 
     not, with respect to an election other than a general 
     election, accept contributions from large donor 
     multicandidate political committees in excess of 20 percent 
     of the maximum amount which the candidate may expend with 
     respect to the election under subsection (j).
       ``(2) In paragraph (1), the term `large donor 
     multicandidate political committee' means a multicandidate 
     political committee that accepts contributions totaling more 
     than $200 from any single source in a calendar year.''.

     TITLE VI--CONSIDERATION OF CONSTITUTIONAL AMENDMENT

     SEC. 601. EXPEDITED CONSIDERATION OF CONSTITUTIONAL 
                   AMENDMENT.

       (a) In General.--If any provision of this Act or any 
     amendment made by this Act is found unconstitutional by the 
     Supreme Court, the provisions of section 2908 (other than 
     subsection (a)) of the Defense Base Closure and Realignment 
     Act of 1990 shall apply to the consideration of a joint 
     resolution described in section 602 in the same manner as 
     such provisions apply to a joint resolution described in 
     section 2908(a) of such Act.
       (b) Special rules.--For purposes of applying subsection (a) 
     with respect to such provisions, the following rules shall 
     apply:
       (1) Any reference to the Committee on Armed Services of the 
     House of Representatives shall be deemed a reference to the 
     Committee on the Judiciary of the House of Representatives 
     and any reference to the Committee on Armed Services of the 
     Senate shall be deemed a reference to the Committee on the 
     Judiciary of the Senate.
       (2) Any reference to the date on which the President 
     transmits a report shall be deemed a reference to the date on 
     which the Supreme Court finds a provision of this Act or an 
     amendment made by this Act unconstitutional.

     SEC. 602. CONSTITUTIONAL AMENDMENT DESCRIBED.

       For purposes of section 601, a joint resolution described 
     in this section is a joint resolution proposing the following 
     text as an amendment to the Constitution of the United 
     States:

                              ``Article --

       ``Section 1. Congress may provide for reasonable 
     restrictions on contributions and expenditures in campaigns 
     for election for Federal office as necessary to protect the 
     integrity of the electoral process.
       ``Sec. 2. Congress shall have power to enforce this article 
     by appropriate legislation. No legislation enacted to enforce 
     this article shall apply with respect to any election held 
     after the last day of the year of the third Presidential 
     election held after the date of the enactment of the 
     legislation, unless the period in which such legislation is 
     in effect is extended by an Act of Congress which is signed 
     into law by the President.''.

                               H.R. 3721

                   Offered by: Mr. Obey of Wisconsin

          Amendment in the Nature of a Substitute to H.R. 2183

       Amendment No. 4: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE; FINDING.

       (a) Short Title.--This Act may be cited as the ``Let the 
     Public Decide Campaign Finance Reform Act''.
       (b) Finding.--The Congress finds that the existing system 
     of private political contributions has become a fundamental 
     threat to the integrity of the national election process and 
     that the provisions contained in this Act are necessary to 
     prevent the corruption of the public's faith in the Nation's 
     system of governance.

  TITLE I--VOLUNTARY EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR 
               HOUSE OF REPRESENTATIVES GENERAL ELECTIONS

     SEC. 101. NEW TITLE OF FEDERAL ELECTION CAMPAIGN ACT OF 1971.

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

 ``TITLE V--VOLUNTARY EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR 
               HOUSE OF REPRESENTATIVES GENERAL ELECTIONS

     ``Subtitle A--Public Financing for Certified House Candidates

     ``SEC. 501. PUBLIC FINANCING FOR CERTIFIED HOUSE CANDIDATES.

       ``A certified House candidate in a House of Representatives 
     general election shall be entitled to payments from the 
     Grassroots Good Citizenship Fund under section 521.

     ``SEC. 502. PROCEDURES FOR CERTIFICATION.

       ``(a) In General.--The Commission shall certify that a 
     candidate initially meets the requirements for a certified 
     House candidate under if the candidate submits to the 
     Commission in writing a statement with the following 
     information and assurances:
       ``(1) An agreement to obtain and furnish to the Commission 
     such evidence as it may request to ensure that the candidate 
     meets the requirements relating to limitations on 
     expenditures under subtitle B.
       ``(2) An agreement to keep and furnish to the Commission 
     such records, books, and other information as it may request.
       ``(3) An agreement to audit and examination by the 
     Commission and to the payment of any amounts found to be paid 
     erroneously to the candidate under this title.
       ``(4) Such other information and assurances as the 
     Commission may require.
       ``(b) Authority of Commission to Reject or Revoke 
     Certification.--The Commission may reject a candidate's 
     application for treatment as a certified House candidate or 
     revoke a candidate's status as a certified House candidate if 
     the candidate knowingly and willfully violates or has 
     violated any of the applicable requirements of this title 
     with respect to the election involved or any previous 
     election.
``Subtitle B--Limitations on Expenditures by Certified House Candidates

     ``SEC. 511. LIMITATION ON EXPENDITURES.

       ``A certified House candidate in a House of Representatives 
     general election may not make expenditures other than as 
     provided in this subtitle.

     ``SEC. 512. SOURCES OF AMOUNTS FOR EXPENDITURES BY CERTIFIED 
                   HOUSE CANDIDATES.

       ``The only sources of amounts for expenditures by certified 
     House candidates in House of Representatives general 
     elections shall be--
       ``(1) the Grassroots Good Citizenship Fund, under section 
     521; and
       ``(2) additional amounts from State and national party 
     committees under section 522.

     ``SEC. 513. DISTRICT LIMITATION ON EXPENDITURES BY MAJOR 
                   PARTY CANDIDATES.

       ``(a) In General.--Except as provided in section 515 and 
     section 522, the maximum amounts of expenditures by certified 
     House candidates in House of Representatives general 
     elections who are major party candidates shall be based on 
     the median household income of the districts involved, as 
     provided for in subsections (b) and (c).
       ``(b) Maximum for Wealthiest District.--In the 
     congressional district with the highest median household 
     income, maximum combined expenditures for all certified House 
     candidates who are major party candidates with respect to a 
     House of Representatives general election shall be a total of 
     $1,000,000.
       ``(c) Maximum for Other Districts.--In each congressional 
     district, other than the district referred to in subsection 
     (b), the maximum combined expenditures for all certified 
     House candidates who are major party candidates with respect 
     to a House of Representatives general election shall be an 
     amount equal to--
       ``(1) the maximum amount referred to in subsection (b), 
     less
       ``(2) the amount equal to--
       ``(A) \2/3\ of the percentage difference between the median 
     household income of the district involved and the median 
     household income of the district referred to in subsection 
     (b), times
       ``(B) the maximum amount referred to in subsection (b).
       ``(d) Allocation.--The maximum expenditure for a certified 
     House candidate who is a major party candidate in a 
     congressional district shall be 50 percent of the maximum 
     amount under subsection (b) or (c), as applicable.

     ``SEC. 514. DISTRICT LIMITATION ON EXPENDITURES BY THIRD 
                   PARTY AND INDEPENDENT CANDIDATES.

       ``(a) In General.--Except as provided in section 515 and 
     section 522, the maximum amounts of expenditures by certified 
     House candidates who are third party and independent 
     candidates in House of Representatives general elections 
     shall be the amount allocated under subsection (b).
       ``(b) Allocation.--The maximum expenditure for a certified 
     House candidate who is a

[[Page H3257]]

     third party or independent candidate in a congressional 
     district shall be--
       ``(1) the amount that bears the same ratio to the maximum 
     amount under subsection (b) or (c) of section 503, as 
     applicable, as the total popular vote in the district for 
     candidates of the third party or for all independent 
     candidates (as the case may be) bears to the total popular 
     vote for all candidates in the 5 preceding general elections; 
     or
       ``(2) in the case of a candidate in a district in which no 
     third party or independent candidates (as the case may be) 
     received votes in the 5 preceding general elections, the 
     amount corresponding to the number of signatures presented to 
     and verified by the Commission according to the following 
     table:

      ``20,000 signatures.......................................$75,000
      30,000 signatures.........................................100,000
      40,000 signatures.........................................150,000
      50,000 signatures.........................................200,000

     ``SEC. 515. INCREASE IN AMOUNT FOR CANDIDATES WITH 
                   NONPARTICIPATING OPPONENT.

       ``In the case of a certified House candidate in a House of 
     Representatives general election with an opponent who is a 
     major party candidate who is not a certified House candidate, 
     the amount otherwise provided in section 513 or section 514 
     (as the case may be) shall be increased by 100 percent.
          ``Subtitle C--Payments to Certified House Candidates

     ``SEC. 521. GRASSROOTS GOOD CITIZENSHIP FUND.

       ``(a) Creation of Fund.--There is established in the 
     Treasury a trust fund to be known as the `Grassroots Good 
     Citizenship Fund', consisting of such amounts as may be 
     credited to such fund as provided in this section.
       ``(b) District Accounts.--There shall be established within 
     the Grassroots Good Citizenship Fund an account for each 
     congressional district. The accounts so established shall be 
     administered by the Commission for the purpose of 
     distributing amounts under this title.
       ``(c) Payments to Candidates.--Subject to subsection (d), 
     the Commission shall pay to each certified House candidate 
     from the Grassroots Good Citizenship Fund the maximum amount 
     calculated for such candidate under section 513 or 514.
       ``(d) Insufficient Amounts.--If, as determined by the 
     Commission, there are insufficient amounts in the Grassroots 
     Good Citizenship Fund for payments under subsection (c), the 
     Commission may reduce payments to certified House candidates 
     so that each candidate receives a pro rata portion of the 
     amounts that are available.
       ``(e) Transfers to Fund.--There are hereby credited to the 
     Grassroots Good Citizenship Fund amounts equivalent to the 
     amounts designated under section 6097 of the Internal Revenue 
     Code of 1986.
       ``(f) Expenditures.--Amounts in the Grassroots Good 
     Citizenship Fund shall be available for the purpose of 
     providing amounts for expenditure by certified House 
     candidates in House of Representatives general elections in 
     accordance with this title.

     ``SEC. 522. ADDITIONAL AMOUNTS FROM STATE AND NATIONAL PARTY 
                   COMMITTEES.

       ``(a) Contributions.--In addition to amounts made available 
     under section 521, in the case of a certified House candidate 
     in a House of Representatives general election who is the 
     candidate of a political party, the State and national 
     committees of that political party may make contributions to 
     the candidate totaling not more than 5 percent of the maximum 
     expenditure applicable to the candidate under section 513 or 
     section 514.
       ``(b) Expenditures.--A certified House candidate who is the 
     candidate of a political party may make expenditures of the 
     amounts received under subsection (a).
                 ``Subtitle D--Miscellaneous Provisions

     ``SEC. 531. PUBLIC SERVICE ANNOUNCEMENTS.

       ``(a) In General.--Beginning on January 15, and continuing 
     through April 15 of each year, the Commission shall carry out 
     a program, utilizing broadcast announcements and other 
     appropriate means, to inform the public of the existence and 
     purpose of the Grassroots Good Citizenship Fund and the role 
     that individual citizens can play in the election process by 
     voluntarily contributing to the fund. The announcements shall 
     be broadcast during prime time viewing hours in 30-second 
     advertising segments equivalent to 200 gross rating points 
     per network per week. The Commission shall ensure that the 
     maximum number of taxpayers shall be exposed to these 
     announcements. Television networks, as defined by the Federal 
     Communications Commission, shall provide the broadcast time 
     under this section as part of their obligations in the public 
     interest under the Communications Act of 1934. The Federal 
     Election Commission shall encourage broadcast outlets other 
     than the above mentioned television networks including radio 
     to provide similar announcements.
       ``(b) Gross Rating Point.--The term `gross rating point' is 
     a measure of the total gross weight delivered. It is the sum 
     of the ratings for individual programs. Since a household 
     rating period is 1 percent of the coverage base, 200 gross 
     rating points means 2 messages a week per average household.

     ``SEC. 532. DEFINITIONS.

       ``As used in this title--
       ``(1) the term `certified House candidate' means, with 
     respect to a House of Representatives general election, a 
     candidate in such election who is certified by the Commission 
     under subtitle A as meeting the requirements for receiving 
     public financing under this title;
       ``(2) the term `median household income' means, with 
     respect to a congressional district, the median household 
     income of that district, as determined by the Commission, 
     using the most current data from the Bureau of the Census;
       ``(3) the term `major party' means, with respect to a House 
     of Representatives general election, a political party whose 
     candidate for the office of Representative in, or Delegate or 
     Resident Commissioner to, the Congress in the preceding 
     general election received, as the candidate of such party, 25 
     percent or more of the total number of popular votes received 
     by all candidates for such office;
       ``(4) the term `third party' means with respect to a House 
     of Representatives general election, a political party whose 
     candidate for the office of Representative in, or Delegate or 
     Resident Commissioner to, the Congress in the preceding 
     general election received, as the candidate of such party, 
     less than 25 percent of the total number of popular votes 
     received by all candidates for such office;
       ``(5) the term `independent candidate' means, with respect 
     to a House of Representatives general election, a candidate 
     for the office of Representative in, or Delegate or Resident 
     Commissioner to, the Congress who is not the candidate of a 
     major party or a third party; and
       ``(6) the term `House of Representatives general election' 
     means a general election for the office of Representative in, 
     or Delegate or Resident Commissioner to, the Congress.''.

         TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

     SEC. 201. DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR 
                   GRASSROOTS GOOD CITIZENSHIP FUND.

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

``PART IX--DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR GRASSROOTS 
                         GOOD CITIZENSHIP FUND

``Sec. 6097. Designation of overpayments for Grassroots Good 
              Citizenship Fund.

     ``SEC. 6097. DESIGNATION OF OVERPAYMENTS FOR GRASSROOTS GOOD 
                   CITIZENSHIP FUND.

       ``(a) In General.--With respect to each taxpayer's return 
     for the taxable year of the tax imposed by chapter 1, such 
     taxpayer may designate that--
       ``(1) a specified portion (not less than $1 or more than 
     $10,000, and not less than $1 or more than $20,000 in the 
     case of a joint return) of any overpayment of tax for such 
     taxable year, and
       ``(2) any contribution which the taxpayer includes with 
     such return,

     shall be paid over to the Grassroots Good Citizenship Fund 
     under section 521 of the Federal Election Campaign Act of 
     1971.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year 
     only at the time of filing the return of tax imposed by 
     chapter 1 for such taxable year. Such designation shall be 
     made on the 1st page of the return.
       ``(c) Overpayments Treated as Refunded.--For purposes of 
     this title, any portion of an overpayment of tax designated 
     under subsection (a) shall be treated as being refunded to 
     the taxpayer as of the last date prescribed for filing the 
     return of tax imposed by chapter 1 (determined without regard 
     to extensions) or, if later, the date the return is filed.''
       (b) Clerical Amendment.--The table of parts for such 
     subchapter A is amended by adding at the end thereof the 
     following new item:

``Part IX. Designation of overpayments and contributions for certain 
              purposes relating to House of Representatives 
              elections.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

     SEC. 202. INCREASE IN CORPORATE INCOME TAX ON TAXABLE INCOME 
                   ABOVE $10,000,000.

       (a) In General.--Paragraph (4) of subsection (b) of section 
     11 of the Internal Revenue Code of 1986 is amended by 
     striking ``35 percent'' and inserting ``35.1 percent''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
       (c) Use of Amounts Received.--Amounts received by reason of 
     the amendment made by subsection (a) shall be paid over to 
     the Grassroots Good Citizenship Fund under section 521 of the 
     Federal Election Campaign Act of 1971.

        TITLE III--BAN ON USE OF SOFT MONEY BY HOUSE CANDIDATES

     SEC. 301. BAN ON USE OF SOFT MONEY BY HOUSE CANDIDATES.

       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 new section:


        ``ban on use of non-regulated funds by house candidates

       ``Sec. 323. (a) In General.--No funds may be solicited, 
     disbursed, or otherwise used

[[Page H3258]]

     with respect to any House of Representatives election unless 
     the funds are subject to the limitations and prohibitions of 
     this Act.
       ``(b) House of Representatives Election Defined.--In this 
     section, the term `House of Representatives election' means 
     any election for the office of Representative in, or Delegate 
     or Resident Commissioner to, the Congress.''.

                   TITLE IV--INDEPENDENT EXPENDITURES

     SEC. 401. BAN ON INDEPENDENT EXPENDITURES IN HOUSE OF 
                   REPRESENTATIVES ELECTIONS.

       (a) In General.--Section 315 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a) is amended by adding at 
     the end the following new subsection;
       ``(i) No person may make any independent expenditure with 
     respect to an election for the office of Representative in, 
     or Delegate or Resident Commissioner to, the Congress.''.
       (b) Clarification of Definitions Relating to Independent 
     Expenditures.--
       (1) In general.--Section 301 of such Act (2 U.S.C. 431) is 
     amended by striking paragraphs (17) and (18) and inserting 
     the following new paragraphs:
       ``(17) The term `independent expenditure' means an 
     expenditure for a communication (other than a communication 
     which is described in clause (i) or clause (iii) of paragraph 
     (9)(B) or which would be described in such clause if the 
     communication were otherwise treated as an expenditure under 
     this title)--
       ``(A) which is made during the 90-day period ending on the 
     date of a general election for Federal office and which 
     identifies a candidate for election for such office by name, 
     image, or likeness; or
       ``(B) which contains express advocacy and is made without 
     the participation or cooperation of, or consultation with, a 
     candidate or a candidate's representative.
       ``(18) The term `express advocacy' means, when a 
     communication is taken as a whole and with limited reference 
     to external events, an expression of support for or 
     opposition to a specific candidate, to a specific group of 
     candidates, or to candidates of a particular political party, 
     or 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 an expression which 
     would reasonably be construed as intending to influence the 
     outcome of an election.''.
       (2) Contribution definition amendment.--Section 301(8)(A) 
     of such Act (2 U.S.C. 431(8)(A)) is amended--
       (A) in clause (i), by striking ``or'' after the semicolon 
     at the end;
       (B) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following new clause:
       ``(iii) any payment or other transaction referred to in 
     paragraph (17)(A) that does not qualify as an independent 
     expenditure under paragraph (17)(B).''.

     SEC. 402. BAN ON USE OF SOFT MONEY FOR CERTAIN EXPENDITURES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.), as amended by section 301, is further 
     amended by adding at the end the following new section:


       ``ban on use of non-federal funds for certain expenditures

       ``Sec. 324. (a) In General.--No person may disburse any 
     funds for any expenditure described in subsection (b) unless 
     the funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(b) Expenditures Described.--The expenditures described 
     in this subsection are as follows:
       ``(1) An expenditure made by an authorized committee of a 
     candidate for Federal office or a political committee of a 
     political party.
       ``(2) An expenditure made by a person who, during the 
     election cycle, has made a contribution to a candidate, where 
     the expenditure is in support of that candidate or in 
     opposition to another candidate for the same office.
       ``(3) An expenditure made by a person, or a political 
     committee established, maintained or controlled by such 
     person, who is required to register, under section 308 of the 
     Federal Regulation of Lobbying Act (2 U.S.C. 267) or the 
     Foreign Agents Registration Act (22 U.S.C. 611) or any 
     successor Federal law requiring a person who is a lobbyist or 
     foreign agent to register.
       ``(4) An expenditure made by a person who, during the 
     election cycle, has communicated with or received information 
     from a candidate or a representative of that candidate 
     regarding activities that have the purpose of influencing 
     that candidate's election to Federal office, where the 
     expenditure is in support of that candidate or in opposition 
     to another candidate for that office.
       ``(5) An expenditure if, in the same election cycle, the 
     person making the expenditure is or has been--
       ``(A) authorized to raise or expend funds on behalf of the 
     candidate or the candidate's authorized committees; or
       ``(B) serving as a member, employee, or agent of the 
     candidate's authorized committees in an executive or 
     policymaking position.''.

TITLE V--LIMITATIONS ON ACCEPTANCE OF LARGE DONOR PAC CONTRIBUTIONS IN 
               HOUSE OF REPRESENTATIVES PRIMARY ELECTIONS

     SEC. 501. LIMITATION ON ACCEPTANCE OF LARGE DONOR 
                   MULTICANDIDATE POLITICAL COMMITTEE 
                   CONTRIBUTIONS BY HOUSE OF REPRESENTATIVES 
                   CANDIDATES.

       Section 315 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a), as amended by section 401, is further amended 
     by adding at the end the following new subsection:
       ``(j)(1) A candidate for the office of Representative in, 
     or Delegate or Resident Commissioner to, the Congress who is 
     not a certified House candidate under title V (and the 
     authorized political committees of such candidate) may not, 
     with respect to an election other than a general election, 
     accept contributions from large donor multicandidate 
     political committees in excess of 20 percent of the maximum 
     amount which a certified House candidate may expend with 
     respect to the general election under title V.
       ``(2) In paragraph (1), the term `large donor 
     multicandidate political committee' means a multicandidate 
     political committee that accepts contributions totaling more 
     than $200 from any single source in a calendar year.''.

          TITLE VI--CONSIDERATION OF CONSTITUTIONAL AMENDMENT

     SEC. 601. EXPEDITED CONSIDERATION OF CONSTITUTIONAL 
                   AMENDMENT.

       (a) In General.--If any provision of this Act or any 
     amendment made by this Act is found unconstitutional by the 
     Supreme Court, the provisions of section 2908 (other than 
     subsection (a)) of the Defense Base Closure and Realignment 
     Act of 1990 shall apply to the consideration of a joint 
     resolution described in section 602 in the same manner as 
     such provisions apply to a joint resolution described in 
     section 2908(a) of such Act.
       (b) Special rules.--For purposes of applying subsection (a) 
     with respect to such provisions, the following rules shall 
     apply:
       (1) Any reference to the Committee on Armed Services of the 
     House of Representatives shall be deemed a reference to the 
     Committee on the Judiciary of the House of Representatives 
     and any reference to the Committee on Armed Services of the 
     Senate shall be deemed a reference to the Committee on the 
     Judiciary of the Senate.
       (2) Any reference to the date on which the President 
     transmits a report shall be deemed a reference to the date on 
     which the Supreme Court finds a provision of this Act or an 
     amendment made by this Act unconstitutional.

     SEC. 602. CONSTITUTIONAL AMENDMENT DESCRIBED.

       For purposes of section 601, a joint resolution described 
     in this section is a joint resolution proposing the following 
     text as an amendment to the Constitution of the United 
     States:

                              ``Article--

       ``Section 1. In campaigns for election for Federal office, 
     as necessary to protect the integrity of the electoral 
     process, Congress may provide for reasonable restrictions on 
     the making of independent expenditures for public 
     communications made during the 90-day period ending on the 
     date of a general election and on the making of expenditures 
     for public communications which contain express advocacy.
       ``Sec. 2. Nothing in clause 1 may be construed to affect 
     the validity of any restrictions on expenditures in campaigns 
     for election for Federal office which are in effect prior to 
     the adoption of this article.
       ``Sec. 3. Congress shall have power to enforce this article 
     by appropriate legislation. No legislation enacted to enforce 
     this article shall apply with respect to any election held 
     after the last day of the year of the third Presidential 
     election held after the date of the enactment of the 
     legislation, unless the period in which such legislation is 
     in effect is extended by an Act of Congress which is signed 
     into law by the President.''.