[Congressional Record Volume 144, Number 61 (Thursday, May 14, 1998)]
[House]
[Pages H3312-H3355]
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:

                        [Submitted May 13, 1998]

                               H.R. 2183

                          Offered By: Mr. Bass

               (Amendment in the Nature of a Substitute)

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

[[Page H3313]]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``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.
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 limitations, 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

[[Page H3314]]

     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 (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--
       ``(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 whole 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; and
       ``(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) Definition of Expenditure.--Section 301(9)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is 
     amended--
       (1) 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 certification, 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

[[Page H3315]]

       (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 concert with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, or an 
     agent acting on behalf of a candidate or authorized 
     committee;
       ``(ii) a payment made by a person for the 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;
       ``(v) a payment made by a person if the person making the 
     payment has served in any formal policymaking 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, 
     advisor, or staff member), acting on behalf of the candidate, 
     about advertising message, allocation of resources, 
     fundraising, or other campaign matters related to the 
     candidate's campaign, including campaign operations, 
     staffing, tactics, or strategy; or
       ``(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 
     of 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)

[[Page H3316]]

     (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
       ``(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 filled in with the name of the political 
     committee or other person paying for the communication and 
     the name of any connected organization of the payor). If 
     broadcast or cablecast by means of television, the statement 
     shall also appear in a clearly readable manner with a 
     reasonable degree of color contrast between the background 
     and the printed statement, for a period of at least 4 
     seconds.''.
                    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 LIMIT.

       ``(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 filed 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

[[Page H3317]]

     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 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.
       ``(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(c) of the Internal Revenue Code of 1986; or
       ``(4) for transfers to a national, State, or local 
     committee of a political party.
       ``(b) Prohibited Use.--
       ``(1) In general.--A contribution or amount described in 
     subsection (a) shall not be converted by any person to 
     personal use.
       ``(2) Conversion.--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 for 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 (5)(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)''.

[[Page H3318]]

     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 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. 2183

                        Offered By Mr. Campbell

               (Amendment in the Nature of a Substitute)

       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

[[Page H3319]]

     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 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.

                               H.R. 2183

                          Offered By: Mr. Obey

               (Amendment in the Nature of a Substitute)

       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.

[[Page H3320]]

       ``(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 
     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

[[Page H3321]]

     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--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. 2183

                          Offered by: Mr. Obey

               (Amendment in the Nature of a Substitute)

       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

[[Page H3322]]

     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 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,

[[Page H3323]]

     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 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

[[Page H3324]]

     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.''.

                        [Submitted May 14, 1998]

                               H.R. 2183

                       Offered By: Mr. Doolittle

               (Amendment in the Nature of a Substitute)

       Amendment No. 5: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Citizen Legislature and 
     Political Freedom Act''.

     SEC. 2. REMOVAL OF LIMITATIONS ON FEDERAL ELECTION CAMPAIGN 
                   CONTRIBUTIONS.

       Section 315(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(a)) is amended by adding at the end the 
     following new paragraph:
       ``(9) The limitations established under this subsection 
     shall not apply to contributions made during calendar years 
     beginning after 1998.''

     SEC. 3. TERMINATION OF TAXPAYER FINANCING OF PRESIDENTIAL 
                   ELECTION CAMPAIGNS.

       (a) Termination of Designation of Income Tax Payments.--
     Section 6096 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new subsection:
       ``(d) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 1997.''
       (b) Termination of Fund and Account.--
       (1) Termination of presidential election campaign fund.--
       (A) In general.--Chapter 95 of subtitle H of such Code is 
     amended by adding at the end the following new section:

     ``SEC. 9014. TERMINATION.

       ``The provisions of this chapter shall not apply with 
     respect to any presidential election (or any presidential 
     nominating convention) after December 31, 1998, or to any 
     candidate in such an election.''
       (B) Transfer of excess funds to general fund.--Section 9006 
     of such Code is amended by adding at the end the following 
     new subsection:
       ``(d) Transfer of Funds Remaining After 1998.--The 
     Secretary shall transfer all amounts in the fund after 
     December 31, 1998, to the general fund of the Treasury.''
       (2) Termination of account.--Chapter 96 of subtitle H of 
     such Code is amended by adding at the end the following new 
     section:

     ``SEC. 9043. TERMINATION.

       ``The provisions of this chapter shall not apply to any 
     candidate with respect to any presidential election after 
     December 31, 1998.''
       (c) Clerical Amendments.--
       (1) The table of sections for chapter 95 of subtitle H of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 9014. Termination.''

       (2) The table of sections for chapter 96 of subtitle H of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 9043. Termination.''

     SEC. 4. DISCLOSURE REQUIREMENTS FOR CERTAIN SOFT MONEY 
                   EXPENDITURES OF POLITICAL PARTIES.

       (a) Transfers of Funds by National Political Parties.--
     Section 304(b)(4) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 434(b)(4)) is amended--
       (1) by striking ``and'' at the end of subparagraph (H);
       (2) by adding ``and'' at the end of subparagraph (I); and
       (3) by adding at the end the following new subparagraph:
       ``(J) in the case of a political committee of a national 
     political party, all funds transferred to any political 
     committee of a State or local political party, without regard 
     to whether or not the funds are otherwise treated as 
     contributions or expenditures under this title;''.
       (b) Disclosure by State and Local Political Parties of 
     Information Reported Under State Law.--Section 304 of such 
     Act (2 U.S.C. 434) is amended by adding at the end the 
     following new subsection:
       ``(d) If a political committee of a State or local 
     political party is required under a State or local law, rule, 
     or regulation to submit a report on its disbursements to an 
     entity of the State or local government, the committee shall 
     file a copy of the report with the Commission at the time it 
     submits the report to such an entity.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to elections occurring after January 
     1999.

     SEC. 5. PROMOTING EXPEDITED AVAILABILITY OF FEC REPORTS.

       (a) Mandatory Electronic Filing.--Section 304(a)(11)(A) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     434(a)(11)(A)) is amended by striking ``permit reports 
     required by'' and inserting ``require reports under''.
       (b) Requiring Reports for All Contributions Made to Any 
     Political Committee Within 90 Days of Election; Requiring 
     Reports To Be Made Within 24 Hours.--Section 304(a)(6) of 
     such Act (2 U.S.C. 434(a)(6)) is amended to read as follows:
       ``(6)(A) Each political committee shall notify the 
     Secretary or the Commission, and the Secretary of State, as 
     appropriate, in writing, of any contribution received by the 
     committee during the period which begins on the 90th day 
     before an election and ends at the time the polls close for 
     such election. This notification shall be made within 24 
     hours (or, if earlier, by midnight of the day on which the 
     contribution is deposited) after the receipt of such 
     contribution and shall include the name of the candidate 
     involved (as appropriate) and the office sought by the 
     candidate, the indentification of the contributor, and the 
     date of receipt and amount of the contribution.
       ``(B) The notification required under this paragraph shall 
     be in addition to all other reporting requirements under this 
     Act.''.
       (c) Increasing Electronic Disclosure.--Section 304 of such 
     Act (2 U.S.C. 434(a)), as amended by section 4(b), is further 
     amended by adding at the end the following new subsection:
       ``(e)(1) The Commission shall make the information 
     contained in the reports submitted under this section 
     available on the Internet and publicly available at the 
     offices of the Commission as soon as practicable (but in no 
     case later than 24 hours) after the information is received 
     by the Commission.
       ``(2) In this subsection, the term `Internet' means the 
     international computer network of both Federal and non-
     Federal interoperable packet-switched data networks.''.
       (d) Effective Date.--The amendment made by this section 
     shall apply with respect to reports for periods beginning on 
     or after January 1, 1999.

     SEC. 6. WAIVER OF ``BEST EFFORTS'' EXCEPTION FOR INFORMATION 
                   ON IDENTIFICATION OF CONTRIBUTORS.

       (a) In General.--Section 302(i) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 432(i)) is amended--
       (1) by striking ``(i) When the treasurer'' and inserting 
     ``(i)(1) Except as provided in paragraph (2), when the 
     treasurer''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) shall not apply with respect to 
     information regarding the identification of any person who 
     makes a contribution or contributions aggregating more than 
     $200 during a calendar year (as required to be provided under 
     subsection (c)(3)).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to persons making contributions for 
     elections occurring after January 1999.

                               H.R. 2183

                       Offered By: Mr. Doolittle

               (Amendment in the Nature of a Substitute)

       Amendment No. 6: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. TERMINATION OF TAXPAYER FINANCING OF PRESIDENTIAL 
                   ELECTION CAMPAIGNS.

       (a) Termination of Designation of Income Tax Payments.--
     Section 6096 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new subsection:
       ``(d) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 1997.''
       (b) Termination of Fund and Account.--
       (1) Termination of presidential election campaign fund.--
       (A) In general.--Chapter 95 of subtitle H of such Code is 
     amended by adding at the end the following new section:

     ``SEC. 9014. TERMINATION.

       ``The provisions of this chapter shall not apply with 
     respect to any presidential election (or any presidential 
     nominating convention) after December 31, 1998, or to any 
     candidate in such an election.''
       (b) Transfer of excess funds to general fund.--Section 9006 
     of such Code is amended by adding at the end the following 
     new subsection:
       ``(d) Transfer of Funds Remaining After 1998.--The 
     Secretary shall transfer all amounts in the fund after 
     December 31, 1998, to the general fund of the Treasury.''
       (2) Termination of account.--Chapter 96 of subtitle H of 
     such Code is amended by adding a the end the following new 
     section:

     ``SEC. 9043. TERMINATION.

       ``The provisions of this chapter shall not apply to any 
     candidate with respect to any presidential election after 
     December 31, 1998.''
       (c) Clerical Amendments.--
       (1) Table of sections for chapter 95 of subtitle H of such 
     Code is amended by adding at the end the following new item:

``Sec. 09014. Termination.''

       (2) The table of sections for chapter 96 of subtitle H of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 9043. Termination.''

       Amend the title so as to read: ``A bill to amend the 
     Internal Revenue Code of 1986 to terminate public financing 
     of presidential election campaigns.''.

                               H.R. 2183

                   Offered By: Mr. Farr of California

               (Amendment in the Nature of a Substitute)

       Amendment No. 7: 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 ``American 
     Political Reform Act''.

[[Page H3325]]

       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

      TITLE I--CONGRESSIONAL CAMPAIGN SPENDING LIMITS AND BENEFITS

       Subtitle A--Election Campaign Spending Limits and Benefits

Sec. 101. Spending limits and benefits.

 Subtitle B--Limitations on Contributions to House of Representatives 
                               Candidates

Sec. 121. Limitations on political committees.
Sec. 122. Limitations on political committee and large donor 
              contributions that may be accepted by House of 
              Representatives candidates.

                     Subtitle C--Related Provisions

Sec. 131. Reporting requirements.
Sec. 132. Registration as eligible House of Representatives candidate.
Sec. 133. Definitions.

      Subtitle D--Tax on Excess Political Expenditures of Certain 
                      Congressional Campaign Funds

Sec. 141. Tax treatment of certain campaign funds.

                   TITLE II--INDEPENDENT EXPENDITURES

Sec. 201. Clarification of definitions relating to independent 
              expenditures.
Sec. 202. Reporting requirements for certain independent expenditures.

TITLE III--CONTRIBUTIONS AND EXPENDITURES BY POLITICAL PARTY COMMITTEES

Sec. 301. Definitions.
Sec. 302. Contributions to political party committees.
Sec. 303. Increase in the amount that multicandidate political 
              committees may contribute to national political party 
              committees.
Sec. 304. Merchandising and affinity cards.
Sec. 305. Provisions relating to national, State, and local party 
              committees.
Sec. 306. Restrictions on fundraising by candidates and officeholders.
Sec. 307. Reporting requirements.

                        TITLE IV--CONTRIBUTIONS

Sec. 401. Restrictions on bundling.
Sec. 402. Contributions by dependents not of voting age.
Sec. 403. Prohibition of acceptance by a candidate of cash 
              contributions from any one person aggregating more than 
              $100.
Sec. 404. Contributions to candidates from State and local committees 
              of political parties to be aggregated.
Sec. 405. Prohibition of false representation to solicit contributions.
Sec. 406. Limited exclusion of advances by campaign workers from the 
              definition of the term ``contribution''.
Sec. 407. Amendment to section 316 of the Federal Election Campaign Act 
              of 1971.
Sec. 408. Prohibition of certain election-related activities of foreign 
              nationals.

                    TITLE V--REPORTING REQUIREMENTS

Sec. 501. Change in certain reporting from a calendar year basis to an 
              election cycle basis.
Sec. 502. Disclosure of personal and consulting services.
Sec. 503. Political committees other than candidate committees.
Sec. 504. Use of candidates' names.
Sec. 505. Reporting requirements.
Sec. 506. Simultaneous registration of candidate and candidate's 
              principal campaign committee.
Sec. 507. Reporting on general campaign activities of persons other 
              than political parties.

           TITLE VI--BROADCAST RATES AND CAMPAIGN ADVERTISING

Sec. 601. Broadcast rates and campaign advertising.
Sec. 602. Campaign advertising amendments.
Sec. 603. Eligibility for nonprofit third class bulk rates of postage.

                        TITLE VII--MISCELLANEOUS

Sec. 701. Prohibition of leadership committees.
Sec. 702. Appearance by Federal Election Commission as amici curiae.
Sec. 703. Prohibiting solicitation of contributions by members in hall 
              of the House of Representatives.

              TITLE VIII--EFFECTIVE DATES; AUTHORIZATIONS

Sec. 801. Effective date.
Sec. 802. Severability.
Sec. 803. Expedited review of constitutional issues.
Sec. 804. Regulations.
      TITLE I--CONGRESSIONAL CAMPAIGN SPENDING LIMITS AND BENEFITS
       Subtitle A--Election Campaign Spending Limits and Benefits

     SEC. 101. SPENDING LIMITS AND BENEFITS.

       (a) In General.--The Federal Election Campaign Act of 1971 
     is amended by adding at the end the following new title:
            ``TITLE V--ELECTION SPENDING LIMITS AND BENEFITS

            ``TITLE V--ELECTION SPENDING LIMITS AND BENEFITS

   ``Subtitle A--Election Campaigns for the House of Representatives

``Sec. 501. Expenditure limitations.
``Sec. 502. Personal contribution limitations.
``Sec. 503. Definition.

                ``Subtitle B--Administrative Provisions

``Sec. 511. Certifications by Commission.
``Sec. 512. Examination and audits; repayments and civil penalties.
``Sec. 513. Judicial review.
``Sec. 514. Reports to Congress; certifications; regulations.
``Sec. 515. Closed captioning requirement for television commercials of 
              eligible candidates.

           ``Subtitle C--Congressional Election Campaign Fund

``Sec. 521. Establishment and operation of the Fund.
``Sec. 522. Designation of receipts to the Fund.
   ``Subtitle A--Election Campaigns for the House of Representatives

     ``SEC. 501. EXPENDITURE LIMITATIONS.

       ``(a) In General.--An eligible House of Representatives 
     candidate may not, in an election cycle, make expenditures 
     aggregating more than $600,000.
       ``(b) Runoff Election and Special Election Amounts.--
       ``(1) Runoff election amount.--If an eligible House of 
     Representatives candidate is a candidate in a runoff 
     election, the candidate may make additional expenditures 
     aggregating not more than $200,000 in the election cycle.
       ``(2) Special election amount.--An eligible House of 
     Representatives candidate who is a candidate in a special 
     election may make expenditures aggregating not more than 
     $600,000 with respect to the special election.
       ``(c) Closely Contested Primary.--If, as determined by the 
     Commission, an eligible House of Representatives candidate in 
     a contested primary election wins that primary election by a 
     margin of 20 percentage points or less, the candidate may 
     make additional expenditures aggregating not more than 
     $200,000 in the election cycle.
       ``(d) Exceptions to Limitations.--
       ``(1) Nonparticipating opponent.--The limitations imposed 
     by subsections (a) and (b) do not apply in the case of an 
     eligible House of Representatives candidate if any other 
     general election candidate seeking nomination or election to 
     that office--
       ``(A) is not an eligible House of Representatives 
     candidate; and
       ``(B) makes expenditures in excess of 30 percent of the 
     limitation under subsection (a).
       ``(2) Independent expenditures against eligible 
     candidate.--The limitations imposed by subsections (a) and 
     (b) do not apply in the case of an eligible House of 
     Representatives candidate if the total amount of independent 
     expenditures made during the election cycle on behalf of 
     candidates opposing such eligible candidate exceeds $15,000.
       ``(3) Continued eligibility for benefits.--An eligible 
     House of Representatives candidate referred to in paragraph 
     (1) or paragraph (2) shall continue to be eligible for all 
     benefits under this title.
       ``(e) Exemption for Legal Costs and Taxes.--
       ``(1) In general.--Any costs incurred by an eligible House 
     of Representatives candidate or his or her authorized 
     committee, or a Federal officeholder, for qualified legal 
     services, for Federal, State, or local income taxes on 
     earnings of a candidate's authorized committees, or to comply 
     with section 512 shall not be considered in the computation 
     of amounts subject to limitation under this section.
       ``(2) Qualified legal services.--For purposes of this 
     subsection, the term `qualified legal services' means--
       ``(A) any legal service performed on behalf of an 
     authorized committee; or
       ``(B) any legal service performed on behalf of a candidate 
     or Federal officeholder in connection with his or her duties 
     or activities as a candidate or Federal officeholder.
       ``(f) Exemption for Fundraising or Accounting Costs.--Any 
     costs incurred by an eligible House of Representatives 
     candidate or his or her authorized committee in connection 
     with the solicitation of contributions on behalf of such 
     candidate, or for accounting services to ensure compliance 
     with this Act, shall not be considered in the computation of 
     amounts subject to expenditure limitation under subsection 
     (a) to the extent that the aggregate of such costs does not 
     exceed 10 percent of the expenditure limitation under 
     subsection (a).
       ``(g) Indexing.--The dollar amounts specified in 
     subsections (a), (b), and (c) shall be adjusted at the 
     beginning of each calendar year based on the increase in the 
     price index determined under section 315(c), except that, for 
     the purposes of such adjustment, the base period shall be 
     calendar year 1996.
       ``(h) Recall Actions.--The limitations of this section do 
     not apply in the case of any recall action held pursuant to 
     State law.

     ``SEC. 502. PERSONAL CONTRIBUTION LIMITATIONS.

       ``(a) Personal Contributions.--An eligible House of 
     Representatives candidate may not, with respect to an 
     election cycle, make contributions or loans to the 
     candidate's own campaign totaling more than $50,000 from the 
     personal funds of the candidate. Contributions from the 
     personal funds of a candidate may not qualify for 
     certification for voter benefits under this title.
       ``(b) Limitation Exception.--The limitation imposed by 
     subsection (a) does not apply--

[[Page H3326]]

       ``(1) in the case of an eligible House of Representatives 
     candidate if any other general election candidate for that 
     office makes contributions or loans to the candidate's own 
     campaign totaling more than $50,000 from the personal funds 
     of the candidate; or
       ``(2) with respect to any contribution or loan used for 
     costs described in section 501 (e) or (f).
       ``(c) Aggregation.--For purposes of subsection (a), any 
     contribution or loan to a candidate's campaign by a member of 
     a candidate's immediate family shall be treated as made by 
     the candidate.

     ``SEC. 503. DEFINITION.

       ``As used in this title, the term `benefits' means, with 
     respect to an eligible House of Representatives candidate, 
     reduced charges for use of a broadcasting station under 
     section 315 of the Communications Act of 1934 (47 U.S.C. 315) 
     and eligibility for nonprofit third-class bulk rates of 
     postage under section 3626(e) of title 39, United States 
     Code.
                ``Subtitle B--Administrative Provisions

     ``SEC. 511. CERTIFICATIONS BY COMMISSION.

       ``(a) General Eligibility.--The Commission shall certify 
     whether a candidate is eligible to receive benefits under 
     subtitle A. The initial determination shall be based on the 
     candidate's filings under this title. Any subsequent 
     determination shall be based on relevant additional 
     information submitted in such form and manner as the 
     Commission may require.
       ``(b) Certification of Benefits.--
       ``(1) Deadline for response to requests.--The Commission 
     shall respond to a candidate's request for certification for 
     eligibility to receive benefits under this section not later 
     than 5 business days after the candidate submits the request.
       ``(2) Requests.--Any request for certification submitted by 
     a candidate shall contain--
       ``(A) such information and be made in accordance with such 
     procedures as the Commission may provide by regulation; and
       ``(B) a verification signed by the candidate and the 
     treasurer of the principal campaign committee of such 
     candidate stating that the information furnished in support 
     of the request, to the best of their knowledge, is correct 
     and fully satisfies the requirement of this title.
       ``(3) Partial certification.--If the Commission determines 
     that any portion of a request does not meet the requirement 
     for certification, the Commission shall withhold the 
     certification for that portion only and inform the candidate 
     as to how the request may be corrected.
       ``(4) Certification withheld.--The Commission may withhold 
     certification if it determines that a candidate who is 
     otherwise eligible has engaged in a pattern of activity 
     indicating that the candidate's filings under this title 
     cannot be relied upon.
       ``(c) Withdrawal of Certification.--If the Commission 
     determines that a candidate who is certified as an eligible 
     House of Representatives candidate pursuant to this section 
     has made expenditures in excess of any limit under subtitle A 
     or otherwise no longer meets the requirements for 
     certification under this title, the Commission shall revoke 
     the candidate's certification.

     ``SEC. 512. EXAMINATION AND AUDITS; REPAYMENTS AND CIVIL 
                   PENALTIES.

       ``(a) Examinations and Audits.--
       ``(1) General elections.--After each general election, the 
     Commission shall conduct an examination and audit of the 
     campaign accounts of 5 percent of the eligible House of 
     Representatives candidates, as designated by the Commission 
     through the use of an appropriate statistical method of 
     random selection, to determine whether such candidates have 
     complied with the conditions of eligibility and other 
     requirements of this title. The Commission shall conduct an 
     examination and audit of the accounts of all candidates for 
     election to an office where any eligible candidate for the 
     office is selected for examination and audit.
       ``(2) Special election.--After each special election 
     involving an eligible candidate, the Commission shall conduct 
     an examination and audit of the campaign accounts of all 
     candidates in the election to determine whether the 
     candidates have complied with the conditions of eligibility 
     and other requirements of this Act.
       ``(3) Affirmative vote.--The Commission may conduct an 
     examination and audit of the campaign accounts of any 
     eligible House of Representatives candidate in a general 
     election if the Commission determines that there exists 
     reason to believe whether such candidate may have violated 
     any provision of this title.
       ``(b) Notification of Excess Expenditures.--If the 
     Commission determines that any eligible candidate who has 
     received benefits under this title has made expenditures in 
     excess of any limit under subtitle A, the Commission shall 
     notify the candidate.
       ``(c) Civil Penalties.--
       ``(1) Excess expenditures.--
       ``(A) Low amount of excess expenditures.--Any eligible 
     House of Representatives candidate who makes expenditures 
     that exceed a limitation under subtitle A by 2.5 percent or 
     less shall pay to the Commission an amount equal to the 
     amount of the excess expenditures.
       ``(B) Medium amount of excess expenditures.--Any eligible 
     House of Representatives candidate who makes expenditures 
     that exceed a limitation under subtitle A by more than 2.5 
     percent and less than 5 percent shall pay to the Commission 
     an amount equal to three times the amount of the excess 
     expenditures.
       ``(C) Large amount of excess expenditures.--Any eligible 
     House of Representatives candidate who makes expenditures 
     that exceed a limitation under subtitle A by 5 percent or 
     more shall pay to the Commission an amount equal to three 
     times the amount of the excess expenditures plus, if the 
     Commission determines such excess expenditures were knowing 
     and willful, a civil penalty in an amount determined by the 
     Commission.
       ``(2) Misused benefits of candidates.--If the Commission 
     determines that an eligible House of Representatives 
     candidate used any benefit received under this title in a 
     manner not provided for in this title, the Commission may 
     assess a civil penalty against such candidate in an amount 
     not greater than 200 percent of the amount involved.
       ``(d) Limit on Period for Notification.--No notification 
     shall be made by the Commission under this section with 
     respect to an election more than 3 years after the date of 
     such election.

     ``SEC. 513. JUDICIAL REVIEW.

       ``(a) Judicial Review.--Any agency action by the Commission 
     made under the provisions of this title shall be subject to 
     review by the United States Court of Appeals for the District 
     of Columbia Circuit upon petition filed in such court within 
     30 days after the agency action by the Commission for which 
     review is sought. It shall be the duty of the Court of 
     Appeals, ahead of all matters not filed under this title, 
     to advance on the docket and expeditiously take action on 
     all petitions filed pursuant to this title.
       ``(b) Application of Title 5.--The provisions of chapter 7 
     of title 5, United States Code, shall apply to judicial 
     review of any agency action by the Commission.
       ``(c) Agency Action.--For purposes of this section, the 
     term `agency action' has the meaning given such term by 
     section 551(13) of title 5, United States Code.

     ``SEC. 514. REPORTS TO CONGRESS; CERTIFICATIONS; REGULATIONS.

       ``(a) Reports.--The Commission shall, as soon as 
     practicable after each election, submit a full report to the 
     House of Representatives setting forth--
       ``(1) the expenditures (shown in such detail as the 
     Commission determines appropriate) made by each eligible 
     candidate and the authorized committees of such candidate;
       ``(2) the benefits certified by the Commission as available 
     to each eligible candidate under this title; and
       ``(3) the names of any candidates against whom penalties 
     were imposed under section 512, together with the amount of 
     each such penalty and the reasons for its imposition.
       ``(b) Determinations by Commission.--Subject to sections 
     512 and 513, all determinations (including certifications 
     under section 511) made by the Commission under this title 
     shall be final and conclusive.
       ``(c) Rules and Regulations.--The Commission is authorized 
     to prescribe such rules and regulations, in accordance with 
     the provisions of subsection (d), to conduct such audits, 
     examinations and investigations, and to require the keeping 
     and submission of such books, records, and information, as it 
     deems necessary to carry out the functions and duties imposed 
     on it by this title.
       ``(d) Report of Proposed Regulations.--The Commission shall 
     submit to the House of Representatives a report containing a 
     detailed explanation and justification of each rule and 
     regulation of the Commission under this title. No such rule, 
     regulation, or form may take effect until a period of 60 
     legislative days has elapsed after the report is received. As 
     used in this subsection, the terms `rule' and `regulation' 
     mean a provision or series of interrelated provisions stating 
     a single, separable rule of law.

     ``SEC. 515. CLOSED CAPTIONING REQUIREMENT FOR TELEVISION 
                   COMMERCIALS OF ELIGIBLE CANDIDATES.

       ``No eligible House of Representatives candidate may 
     receive benefits under subtitle A unless such candidate has 
     certified that any television commercial prepared or 
     distributed by the candidate will be prepared in a manner 
     that contains, is accompanied by, or otherwise readily 
     permits closed captioning of the oral content of the 
     commercial to be broadcast by way of line 21 of the vertical 
     blanking interval, or by way of comparable successor 
     technologies.''.
 Subtitle B--Limitations on Contributions to House of Representatives 
                               Candidates

     SEC. 121. LIMITATIONS ON POLITICAL COMMITTEES.

       (a) Multicandidate Political Committees.--Section 
     315(a)(2)(A) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a(a)(2)(A)) is amended by striking out ``with 
     respect'' and all that follows through ``$5,000,'' and 
     inserting in lieu thereof: ``which, in the aggregate, exceed 
     $5,000 with respect to an election for Federal office or 
     $8,000 with respect to an election cycle (not including a 
     runoff election);''.
       (b) Candidate's Committees.--(1) Section 315(a) of such Act 
     (2 U.S.C. 441a(a)) is amended by adding at the end the 
     following new paragraph:
       ``(9) For the purposes of the limitations provided by 
     paragraphs (1) and (2), any political committee which is 
     established or financed or maintained or controlled by any 
     candidate or Federal officeholder shall be deemed to be an 
     authorized committee of such candidate or officeholder. 
     Nothing in this paragraph shall be construed to permit the 
     establishment, financing, maintenance, or control of any 
     committee which is prohibited by paragraph (3) or (6) of 
     section 302(e).''

[[Page H3327]]

       (2) Section 302(e)(3) of such Act (2 U.S.C. 432(e)(3)) is 
     amended to read as follows:
       ``(3) No political committee that supports or has supported 
     more than one candidate may be designated as an authorized 
     committee, except that--
       ``(A) a candidate for the office of President nominated by 
     a political party may designate the national committee of 
     such political party as the candidate's principal campaign 
     committee, but only if that national committee maintains 
     separate books of account with respect to its functions as a 
     principal campaign committee; and
       ``(B) a candidate may designate a political committee 
     established solely for the purpose of joint fundraising by 
     such candidates as an authorized committee.''
       (c) Effective Dates.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall apply to 
     elections (and the election cycles relating thereto) 
     occurring after December 31, 1998.
       (2) In applying the amendments made by this section, there 
     shall not be taken into account--
       (A) contributions made or received before January 1, 1999; 
     or
       (B) contributions made to, or received by, a candidate on 
     or after January 1, 1999, to the extent such contributions 
     are not greater than the excess (if any) of--
       (i) such contributions received by any opponent of the 
     candidate before January 1, 1999, over
       (ii) such contributions received by the candidate before 
     January 1, 1999.

     SEC. 122. LIMITATIONS ON POLITICAL COMMITTEE AND LARGE DONOR 
                   CONTRIBUTIONS THAT MAY BE ACCEPTED BY HOUSE OF 
                   REPRESENTATIVES CANDIDATES.

       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) Limitations on Contributions Accepted by House of 
     Representatives Candidate.--
       ``(1) Political committees.--A candidate for the office of 
     Representative in, or Delegate or Resident Commissioner to, 
     the Congress may not, with respect to an election cycle, 
     accept contributions from political committees aggregating in 
     excess of $200,000.
       ``(2) Persons other than political committees.--A candidate 
     for the office of Representative in, or Delegate or Resident 
     Commissioner to, the Congress may not, with respect to an 
     election cycle, accept contributions aggregating in excess of 
     $200,000 from persons other than political committees whose 
     contributions total more than $200.
       ``(3) Contested primaries.--In addition to the 
     contributions under paragraphs (1) and (2), if a House of 
     Representatives candidate in a contested primary election 
     wins that primary election by a margin of 20 percentage 
     points or less, the candidate may accept contributions 
     of--
       ``(A) not more than $66,600 from political committees; and
       ``(B) not more than $66,600 from persons referred to in 
     paragraph (2).
       ``(4) Runoff elections.--In addition to the contributions 
     under paragraphs (1) and (2), a House of Representatives 
     candidate who is a candidate in a runoff election may accept 
     contributions of (A) not more than $100,000 from political 
     committees; and (B) not more than $100,000 from persons 
     referred to in paragraph (2).
       ``(5) Exemption for certain costs.--Any amount--
       ``(A) accepted by a House of Representatives candidate; and
       ``(B) used for costs incurred under section 501 (e) and 
     (f),
     shall not be considered in the computation of amounts subject 
     to limitation under this subsection.
       ``(6) Transfer provision.--The limitations imposed by this 
     subsection shall apply without regard to amounts transferred 
     from previous election cycles or other authorized committees 
     of the same candidate. Candidates shall not be required to 
     seek the redesignation of contributions in order to transfer 
     such contributions to a later election cycle.
       ``(7) Indexation of amounts.--The dollar amounts specified 
     in this subsection shall be adjusted at the beginning of each 
     calendar year based on the increase in the price index 
     determined under subsection (c), except that, for the 
     purposes of such adjustment, the base period shall be 
     calendar year 1996.''
                     Subtitle C--Related Provisions

     SEC. 131. REPORTING REQUIREMENTS.

       Title III of the Federal Election Campaign Act of 1971 is 
     amended by adding after section 304 the following new 
     section:


             ``reporting requirements for house candidates

       ``Sec. 304A. A candidate for the office of Representative 
     in, or Delegate or Resident Commissioner to, the Congress 
     who--
       ``(1) makes contributions in excess of $50,000 of personal 
     funds of the candidate to the authorized committee of the 
     candidate; or
       ``(2) makes expenditures in excess of 50 percent and 100 
     percent of the limitation under section 501(a);
     shall report that the threshold has been reached to the 
     Commission not later than 48 hours after reaching the 
     threshold. The Commission shall transmit a copy to each other 
     candidate for election to the same office within 48 hours of 
     receipt.''

     SEC. 132. REGISTRATION AS ELIGIBLE HOUSE OF REPRESENTATIVES 
                   CANDIDATE.

       Section 302(e) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(e)) is amended by adding at the end the 
     following new paragraphs:
       ``(6)(A) In the case of a candidate for the office of 
     Representative in, or Delegate or Resident Commissioner to, 
     the Congress, who desires to be an eligible House of 
     Representatives candidate, a declaration of participation of 
     the candidate to abide by the limits specified in sections 
     315(i), 501, and 502 and provide the information required 
     under section 503(b)(4) shall be included in the designation 
     required to be filed under paragraph (1).
       ``(B) A declaration of participation that is included in a 
     statement of candidacy may not thereafter be revoked.''

     SEC. 133. DEFINITIONS.

       (a) In General.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) is amended by striking 
     paragraph (19) and inserting the following new paragraphs:
       ``(19) The term `election cycle' means--
       ``(A) in the case of a candidate or the authorized 
     committees of a candidate, the term beginning on the day 
     after the date of the most recent general election for the 
     specific office or seat which such candidate seeks and ending 
     on the date of the next general election for such office or 
     seat; or
       ``(B) for all other persons, the term beginning on the 
     first day following the date of the last general election and 
     ending on the date of the next general election.
       ``(20) The term `general election' means any election which 
     will directly result in the election of a person to a Federal 
     office.
       ``(21) The term `general election period' means, with 
     respect to any candidate, the period beginning on the day 
     after the date of the primary or runoff election for the 
     specific office the candidate is seeking, whichever is later, 
     and ending on the earlier of--
       ``(A) the date of such general election; or
       ``(B) the date on which the candidate withdraws from the 
     campaign or otherwise ceases actively to seek election.
       ``(22) The term `immediate family' means--
       ``(A) a candidate's spouse;
       ``(B) a child, stepchild, parent, grandparent, brother, 
     half-brother, sister or half-sister of the candidate or the 
     candidate's spouse; and
       ``(C) the spouse of any person described in subparagraph 
     (B).
       ``(23) The term `primary election' means an election which 
     may result in the selection of a candidate for the ballot in 
     a general election for a Federal office.
       ``(24) The term `primary election period' means, with 
     respect to any candidate, the period beginning on the day 
     following the date of the last election for the specific 
     office the candidate is seeking and ending on the earlier 
     of--
       ``(A) the date of the first primary election for that 
     office following the last general election for that office; 
     or
       ``(B) the date on which the candidate withdraws from the 
     election or otherwise ceases actively to seek election.
       ``(25) The term `runoff election' means an election held 
     after a primary election which is prescribed by applicable 
     State law as the means for deciding which candidate will be 
     on the ballot in the general election for a Federal office.
       ``(26) The term `runoff election period' means, with 
     respect to any candidate, the period beginning on the day 
     following the date of the last primary election for the 
     specific office such candidate is seeking and ending on the 
     date of the runoff election for such office.
       ``(27) The term `special election' means any election 
     (whether primary, runoff, or general) for Federal office held 
     by reason of a vacancy in the office arising before the end 
     of the term of the office.
       ``(28) The term `special election period' means, with 
     respect to any candidate for any Federal office, the period 
     beginning on the date the vacancy described in paragraph (28) 
     occurs and ending on the earlier of--
       ``(A) the date the election resulting in the election of a 
     person to the office occurs; or
       ``(B) the date on which the candidate withdraws from the 
     campaign or otherwise ceases actively to seek election.
       ``(29) The term `eligible House of Representatives 
     candidate' means a candidate for election to the office of 
     Representative in, or Delegate or Resident Commissioner to, 
     the Congress, who, as determined by the Commission under 
     section 511, is eligible to receive benefits under subtitle A 
     of title V by reason of filing a declaration of participation 
     under section 302(e) and complying with the continuing 
     eligibility requirements under section 511.''
       (b) Identification.--Section 301(13)(A) of such Act (2 
     U.S.C. 431(13)(A)) is amended by striking ``mailing address'' 
     and inserting ``permanent residence address''.
      Subtitle D--Tax on Excess Political Expenditures of Certain 
                      Congressional Campaign Funds

     SEC. 141. TAX TREATMENT OF CERTAIN CAMPAIGN FUNDS.

       (a) General Rule.--Chapter 41 of the Internal Revenue Code 
     of 1986 is amended by adding at the end thereof the following 
     new subchapter:

``Subchapter B--Excess Political Expenditures of Certain Congressional 
                             Campaign Funds

``Sec. 4915. Tax on excess political expenditures of certain campaign 
              funds.

[[Page H3328]]

     ``SEC. 4915. TAX ON EXCESS POLITICAL EXPENDITURES OF CERTAIN 
                   CAMPAIGN FUNDS.

       ``(a) Imposition of Tax.--If any applicable campaign fund 
     has excess political expenditures for any election cycle, 
     there is hereby imposed on such excess political expenditures 
     a tax equal to the amount of such excess political 
     expenditures multiplied by the highest rate of tax specified 
     in section 11(b). Such tax shall be imposed for the taxable 
     year of such fund in which such election cycle ends.
       ``(b) Applicable Campaign Fund.--For purposes of this 
     section, the term `applicable campaign fund' means any 
     political organization if--
       ``(1) such organization is designated by a candidate for 
     election or nomination to the House of Representatives as 
     such candidate's principal campaign committee for purposes of 
     section 302(e) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(e)), and
       ``(2) such candidate has made contributions to such 
     political organization during the election cycle in excess of 
     the contribution limitation which would have been applicable 
     under section 501(a) or 512(a) of such Act, whichever is 
     applicable, if an election under such section had been made.
       ``(c) Excess Political Expenditures.--
       ``(1) In general.--For purposes of this section, the term 
     `excess political expenditures' means, with respect to any 
     election cycle, the excess (if any) of the political 
     expenditures incurred by the applicable campaign fund during 
     such cycle, over, in the case of a House of Representatives 
     candidate, the expenditure ceiling which would have been 
     applicable under subtitle B of title V of such Act if an 
     election under such subtitle had been made.
       ``(2) Special rule for determining amount of 
     expenditures.--For purposes of paragraph (1), in determining 
     the amount of political expenditures incurred by an 
     applicable campaign fund, there shall be excluded any such 
     expenditure which would not have been subject to the 
     expenditure limitations of title V of the Federal Election 
     Campaign Act of 1971 had such limitations been applicable, 
     other than any such expenditure which would have been exempt 
     from such limitations under section 501(e) or 501(f) of such 
     Act.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Election cycle.--The term `election cycle' has the 
     meaning given such term by section 301 of the Federal 
     Election Campaign Act of 1971.
       ``(2) Political organization.--The term `political 
     organization' has the meaning given to such term by section 
     527(e)(1).
       ``(3) Certain rules made applicable.--Rules similar to the 
     rules of section 4911(e)(4) shall apply.''
       (b) Clerical Amendments.--
       (1) Chapter 41 of such Code is amended by striking the 
     chapter heading and inserting the following:

     ``CHAPTER 41--LOBBYING AND POLITICAL EXPENDITURES OF CERTAIN 
                             ORGANIZATIONS

``Subchapter A. Public charities.
``Subchapter B. Excess political expenditures of certain campaign 
              funds.

                  ``Subchapter A--Public Charities''.

       (2) The table of sections for subtitle D of such Code is 
     amended by striking the item relating to chapter 41 and 
     inserting the following:

``Chapter 41. Lobbying and political expenditures of certain 
              organizations.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.
                   TITLE II--INDEPENDENT EXPENDITURES

     SEC. 201. CLARIFICATION OF DEFINITIONS RELATING TO 
                   INDEPENDENT EXPENDITURES.

       (a) Independent Expenditure Definition Amendment.--Section 
     301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431) is amended by striking paragraphs (17) and (18) and 
     inserting the following:
       ``(17)(A) The term `independent expenditure' means an 
     expenditure that--
       ``(i) contains express advocacy; and
       ``(ii) is made without the participation or cooperation of 
     and without consultation with a candidate or a candidate's 
     representative.
       ``(B) The following shall not be considered an independent 
     expenditure:
       ``(i) An expenditure made by an authorized committee of a 
     candidate for Federal office.
       ``(ii) An expenditure if there is any arrangement, 
     coordination, or direction with respect to the expenditure 
     between the candidate or the candidate's agent and the person 
     making the expenditure.
       ``(iii) An expenditure if, in the same election cycle, the 
     person making the expenditure is or has been--
       ``(I) authorized to raise or expend funds on behalf of the 
     candidate or the candidate's authorized committees; or
       ``(II) serving as a member, employee, or agent of the 
     candidate's authorized committees in an executive or 
     policymaking position.
       ``(iv) An expenditure if the person making the expenditure 
     retains the professional services of any individual or other 
     person also providing services in the same election cycle to 
     the candidate in connection with the candidate's pursuit of 
     nomination for election, or election, to Federal office, 
     including any services relating to the candidate's decision 
     to seek Federal office. For purposes of this clause, the term 
     `professional services' shall include any services (other 
     than legal and accounting services solely for purposes of 
     ensuring compliance with any Federal law) in support of any 
     candidate's or candidates' pursuit of nomination for 
     election, or election, to Federal office.
     For purposes of this subparagraph, the person making the 
     expenditure shall include any officer, director, employee, or 
     agent of such person.
       ``(18)(A) 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.
       ``(B) The term `expression of support for or opposition to' 
     includes a suggestion to take action with respect to an 
     election, such as to vote for or against, make contributions 
     to, or participate in campaign activity, or to refrain from 
     taking action.''.
       (b) Contribution Definition Amendment.--Section 301(8)(A) 
     of such Act (2 U.S.C. 431(8)(A)) is amended--
       (1) in clause (i), by striking ``or'' after the semicolon 
     at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new clause:
       ``(iii) any payment or other transaction referred to in 
     paragraph (17)(A)(i) that is not an independent expenditure 
     under paragraph (17).''.

     SEC. 202. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(c)) is amended--
       (1) in paragraph (2), by striking the undesignated matter 
     after subparagraph (C);
       (2) by redesignating paragraph (3) as paragraph (9); and
       (3) by inserting after paragraph (2), as amended by 
     paragraph (1), the following new paragraphs:
       ``(3)(A) Any person (including a political committee) 
     making independent expenditures (including those described in 
     subsection (b)(6)(B)(iii)) with respect to a candidate in an 
     election aggregating $1,000 or more made after the 20th day, 
     but more than 24 hours, before the election shall file a 
     report within 24 hours after such independent expenditures 
     are made. An additional report shall be filed each time 
     independent expenditures aggregating $1,000 are made with 
     respect to the same candidate after the latest report filed 
     under this subparagraph.
       ``(B) Any person (including a political committee) making 
     independent expenditures with respect to a candidate in an 
     election aggregating $2,500 or more made at any time up to 
     and including the 20th day before the election shall file a 
     report within 48 hours after such independent expenditures 
     are made. An additional report shall be filed each time 
     independent expenditures aggregating $2,500 are made with 
     respect to the same candidate after the latest report filed 
     under this paragraph.
       ``(C) A report under subparagraph (A) or (B) shall be filed 
     with the Commission and the Secretary of State of the State 
     involved, and shall identify each candidate whom the 
     expenditure is actually intended to support or to oppose. Not 
     later than 48 hours after the Commission receives a report, 
     the Commission shall transmit a copy of the report to each 
     candidate seeking nomination or election to that office.
       ``(D) For purposes of this section, an independent 
     expenditure shall be considered to have been made upon the 
     making of any payment or the taking of any action to incur an 
     obligation for payment.
       ``(4)(A) If any person (including a political committee) 
     intends to make independent expenditures with respect to a 
     candidate in an election totaling $2,500 or more during the 
     20 days before an election, such person shall file a report 
     no later than the 20th day before the election.
       ``(B) A report under subparagraph (A) shall be filed with 
     the Commission and the Secretary of State of the State 
     involved, and shall identify each candidate whom the 
     expenditure is actually intended to support or to oppose. Not 
     later than 48 hours after the Commission receives a report 
     under this paragraph, the Commission shall transmit a copy of 
     the statement to each candidate identified.
       ``(5) The Commission may, upon a request of a candidate or 
     on its own initiative, make its own determination that a 
     person has made, or has incurred obligations to make, 
     independent expenditures with respect to any candidate in any 
     election which in the aggregate exceed the applicable amounts 
     under paragraph (3) or (4). The Commission shall notify each 
     candidate in such election of such determination within 48 
     hours after making it. Any determination made at the request 
     of a candidate shall be made within 48 hours of the request.
       ``(6) At the time at which an eligible House of 
     Representatives candidate is notified under paragraph (3), 
     (4), or (5) with respect to expenditures during a general 
     election period, the Commission shall certify eligibility to 
     receive benefits under section 504(a)(3)(B) or section 
     513(f).
       ``(7)(A) A person that makes a reservation of broadcast 
     time to which section 315(a) of the Communications Act of 
     1947 (47 U.S.C. 315(a)) applies, the payment for which would 
     constitute an independent expenditure, shall at the time of 
     reservation--

[[Page H3329]]

       ``(i) inform the broadcast licensee that payment for the 
     broadcast time will constitute an independent expenditure;
       ``(ii) inform the broadcast licensee of the names of all 
     candidates for the office to which the proposed broadcast 
     relates and state whether the message to be broadcast is 
     intended to be made in support of or in opposition to each 
     such candidate;
       ``(iii) transmit to all candidates for the office to which 
     the proposed broadcast relates a script or tape recording of 
     the communication, or an accurate summary of the 
     communication if a script or tape recording is not 
     available.''.
TITLE III--CONTRIBUTIONS AND EXPENDITURES BY POLITICAL PARTY COMMITTEES

     SEC. 301. DEFINITIONS.

       (a) Contribution and Expenditure Exceptions.--(1) Section 
     301(8)(B) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431(8)(B)) is amended--
       (A) in clause (x)--
       (i) by striking ``and'' at the end of subclause (2),
       (ii) by inserting ``and'' at the end of subclause (3), and
       (iii) by adding at the end the following new subclause:
       ``(4) such activities are conducted solely by, and any 
     materials are prepared for distribution and mailing and are 
     distributed (if other than by mailing) solely by, 
     volunteers;'';
       (B) in clause (xi), by striking ``That'' and all that 
     follows through ``Act;'' and inserting ``That--
       ``(1) such payments are made from contributions subject to 
     the limitations and prohibitions of this Act; and
       ``(2) such activities are conducted solely by, and any 
     materials are prepared for distribution and mailing and are 
     distributed (if other than by mailing) solely by, 
     volunteers;'' and
       (C) in clause (xii)--
       (i) by inserting ``in connection with volunteer 
     activities'' after ``such committee'',
       (ii) by striking ``for President and Vice President'',
       (iii) by striking ``and'' at the end of subclause (2),
       (iv) by inserting ``and'' at the end of subclause (3), and
       (v) by adding at the end the following new subclause:
       ``(4) such activities are conducted solely by, and any 
     materials are prepared for distribution and mailing and are 
     distributed (if other than by mailing) solely by, 
     volunteers;''.
       (2) Section 301(9)(B) of such Act (2 U.S.C. 431(9)(B)) is 
     amended--
       (A) in clause (viii)--
       (i) by striking ``and'' at the end of subclause (2),
       (ii) by inserting ``and'' at the end of subclause (3), and
       (iii) by adding at the end the following new subclause:
       ``(4) such activities are conducted solely by, and any 
     materials are prepared for distribution and mailing and are 
     distributed (if other than by mailing) solely by, 
     volunteers;''; and
       (B) in clause (ix)--
       (i) by inserting ``in connection with volunteer 
     activities'' after ``such committee'',
       (ii) by striking ``for President or Vice President'', and
       (iii) by striking ``and'' at the end of subclause (2), by 
     inserting ``and'' at the end of subclause (3), and by adding 
     at the end the following new subclause:
       ``(4) such activities are conducted solely by, and any 
     materials are prepared for distribution and are distributed 
     (if other than by mailing) solely by, volunteers;''.
       (b) Generic Activities; State Party Grassroots Fund.--
     Section 301 of such Act (2 U.S.C. 431), as amended by section 
     133, is further amended by adding at the end the following 
     new paragraphs:
       ``(30) The term `generic campaign activity' means a 
     campaign activity that promotes a political party rather than 
     any particular Federal or non-Federal candidate.
       ``(31) The term `State Party Grassroots Fund' means a 
     separate segregated fund established and maintained by a 
     State committee of a political party solely for purposes of 
     making expenditures and other disbursements described in 
     section 324(d).''.

     SEC. 302. CONTRIBUTIONS TO POLITICAL PARTY COMMITTEES.

       (a) Individual Contributions to State Party.--Section 
     315(a)(1) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a(a)(1)) is amended--
       (1) by striking ``or'' at the end of subparagraph (B);
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $20,000; or
       ``(ii) any other political committee established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $5,000,
     except that the aggregate contributions described in this 
     subparagraph which may be made by a person to the State Party 
     Grassroots Fund and all committees of a State committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Multicandidate Committee Contributions to State 
     Party.--Section 315(a)(2) of such Act (2 U.S.C. 441a(a)(2)) 
     is amended--
       (1) by striking ``or'' at the end of subparagraph (B);
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $15,000; or
       ``(ii) to any other political committee established and 
     maintained by a State committee of a political party which, 
     in the aggregate, exceed $5,000,
     except that the aggregate contributions described in this 
     subparagraph which may be made by a multicandidate political 
     committee to the State Party Grassroots Fund and all 
     committees of a State committee of a political party in any 
     State in any calendar year shall not exceed $15,000; or''.
       (c) Overall Limit.--Section 315(a)(3) of such Act (2 U.S.C. 
     441a(a)(3)) is amended to read as follows:
       ``(3)(A) No individual shall make contributions during any 
     election cycle which, in the aggregate, exceed $100,000.
       ``(B) No individual shall make contributions during any 
     calendar year--
       ``(i) to all candidates and their authorized political 
     committees which, in the aggregate, exceed $25,000; or
       ``(ii) to all political committees established and 
     maintained by State committees of a political party which, in 
     the aggregate, exceed $20,000.
       ``(C) For purposes of subparagraph (B)(i), any contribution 
     made to a candidate or the candidate's authorized political 
     committees in a year other than the calendar year in which 
     the election is held with respect to which such contribution 
     is made shall be treated as made during the calendar year in 
     which the election is held.''.
       (d) Presidential Candidate Committee Transfers.--(1) 
     Section 315(b)(1) of such Act (2 U.S.C. 441a(b)(1)) is 
     amended to read as follows:
       ``(B) in the case of a campaign for election to such 
     office, an amount equal to the sum of--
       ``(i) $20,000,000, plus
       ``(ii) the amounts transferred by the candidate and the 
     authorized committees of the candidate to the national 
     committee of the candidate's political party for distribution 
     to State Party Grassroots Funds.
     In no event shall the amount under subparagraph (B)(ii) 
     exceed 2 cents multiplied by the voting age population of the 
     United States (as certified under subsection (e)). The 
     Commission may require reporting of the transfers described 
     in subparagraph (B)(ii), may conduct an examination and audit 
     of any such transfer, and may require the return of the 
     transferred amounts to the Presidential Election Campaign 
     Fund if not used for the appropriate purpose.''
       (2) Subparagraph (A) of section 9002(11) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by striking ``or'' at the end of clause (ii); and
       (B) in clause (iii), by striking ``offices,'' and inserting 
     the following: ``offices, or (iv) consisting of a transfer to 
     the national committee of the political party of a candidate 
     for the office of President or Vice President for 
     distribution to State Party Grassroots Funds (as defined in 
     the Federal Election Campaign Act of 1971) to the extent such 
     transfers do not exceed the amount determined under section 
     315(b)(1)(B)(ii) of such Act,''.

     SEC. 303. INCREASE IN THE AMOUNT THAT MULTICANDIDATE 
                   POLITICAL COMMITTEES MAY CONTRIBUTE TO NATIONAL 
                   POLITICAL PARTY COMMITTEES.

       Section 315(a)(2)(B) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 441a(a)(2)(B)) is amended by striking 
     ``$15,000'' and inserting ``$25,000''.

     SEC. 304. MERCHANDISING AND AFFINITY CARDS.

       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) Notwithstanding the provisions of this section or any 
     other provision of this Act to the contrary, an amount 
     received from a corporation (including a State-chartered or 
     national bank) by any political committee (other than a 
     separate segregated fund established under section 
     316(b)(2)(C)) shall be deemed to meet the limitations and 
     prohibitions of this Act if such amount represents a 
     commission or royalty on the sale of goods or services, or on 
     the issuance of credit cards, by such corporation and if--
       ``(1) such goods, services, or credit cards are promoted by 
     or in the name of the political committee as a means of 
     contributing to or supporting the political committee and are 
     offered to consumers using the name of the political 
     committee or using a message, design, or device created and 
     owned by the political committee, or both;
       ``(2) the corporation is in the business of merchandising 
     such goods or services, or of issuing such credit cards;
       ``(3) the royalty or commission has been offered by the 
     corporation to the political committee in the ordinary course 
     of the corporation's business and on the same terms and 
     conditions as those on which such corporation offers 
     royalties or commissions to nonpolitical entities;

[[Page H3330]]

       ``(4) all revenue on which the commission or royalty is 
     based represents, or results from, sales to or fees paid by 
     individual consumers in the ordinary course of retail 
     transactions;
       ``(5) the costs of any unsold inventory of goods are 
     ultimately borne by the political committee in accordance 
     with rules to be prescribed by the Commission; and
       ``(6) except for any royalty or commission permitted to be 
     paid by this subsection, no goods, services, or anything else 
     of value is provided by such corporation to the political 
     committee, except that such corporation may advance or 
     finance costs or extend credit in connection with the 
     manufacture and distribution of goods, provision of services, 
     or issuance of credit cards pursuant to this subsection if 
     and to the extent such advance, financing, or extension is 
     undertaken in the ordinary course of the corporation's 
     business and is undertaken on similar terms by such 
     corporation in its transactions with nonpolitical entities in 
     like circumstances.''

     SEC. 305. PROVISIONS RELATING TO NATIONAL, STATE, AND LOCAL 
                   PARTY COMMITTEES.

       (a) Soft Money of Committees of Political Parties.--Title 
     III of the Federal Election Campaign Act of 1971 is amended 
     by inserting after section 323 the following new section:


                      ``political party committees

       ``Sec. 324. (a) Limitations on National Committee.--(1) A 
     national committee of a political party and the congressional 
     campaign committees of a political party may not solicit or 
     accept contributions or transfers not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(2) Paragraph (1) shall not apply to contributions--
       ``(A) that--
       ``(i) are to be transferred to a State committee of a 
     political party and are used solely for activities described 
     in clauses (xi) through (xvii) of paragraph (9)(B) of section 
     301; or
       ``(ii) are described in section 301(8)(B)(viii); and
       ``(B) with respect to which contributors have been notified 
     that the funds will be used solely for the purposes described 
     in subparagraph (A).
       ``(b) Activities Subject to This Act.--Any amount 
     solicited, received, expended, or disbursed directly or 
     indirectly by a national, State, district, or local committee 
     of a political party with respect to any of the following 
     activities shall be subject to the limitations, prohibitions, 
     and reporting requirements of this Act:
       ``(1)(A) Any get-out-the-vote activity conducted during a 
     calendar year in which an election for the office of 
     President is held.
       ``(B) Any other get-out-the-vote activity unless subsection 
     (c)(2) applies to the activity.
       ``(2) Any generic campaign activity.
       ``(3) Any activity that identifies or promotes a Federal 
     candidate, regardless of whether--
       ``(A) a State or local candidate is also identified or 
     promoted; or
       ``(B) any portion of the funds disbursed constitutes a 
     contribution or expenditure under this Act.
       ``(4) Voter registration.
       ``(5) Development and maintenance of voter files during an 
     even-numbered calendar year.
       ``(6) Any other activity that--
       ``(A) significantly affects a Federal election, or
       ``(B) is not otherwise described in section 
     301(9)(B)(xvii).
     Any amount spent to raise funds that are used, in whole or in 
     part, in connection with activities described in the 
     preceding paragraphs shall be subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(c) Get-Out-The-Vote Activities By State, District, and 
     Local Committees of Political Parties.--(1) Except as 
     provided in paragraph (2), any get-out-the-vote activity for 
     a State or local candidate, or for a ballot measure, which is 
     conducted by a State, district, or local committee of a 
     political party shall be subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(2) Paragraph (1) shall not apply to any activity which 
     the State committee of a political party certifies to the 
     Commission is an activity which--
       ``(A) is conducted during a calendar year other than a 
     calendar year in which an election for the office of 
     President is held,
       ``(B) is exclusively on behalf of (and specifically 
     identifies only) one or more State or local candidates or 
     ballot measures, and
       ``(C) does not include any effort or means used to identify 
     or turn out those identified to be supporters of any Federal 
     candidate (including any activity that is undertaken in 
     coordination with, or on behalf of, a candidate for Federal 
     office).
       ``(d) State Party Grassroots Funds.--(1) A State committee 
     of a political party may make disbursements and expenditures 
     from its State Party Grassroots Fund only for--
       ``(A) any generic campaign activity;
       ``(B) payments described in clauses (v), (x), and (xii) of 
     paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
     paragraph (9)(B) of section 301;
       ``(C) subject to the limitations of section 315(d), 
     payments described in clause (xii) of paragraph (8)(B), and 
     clause (ix) of paragraph (9)(B), of section 301 on behalf of 
     candidates other than for President and Vice President;
       ``(D) voter registration; and
       ``(E) development and maintenance of voter files during an 
     even-numbered calendar year.
       ``(2) Notwithstanding section 315(a)(4), no funds may be 
     transferred by a State committee of a political party from 
     its State Party Grassroots Fund to any other State Party 
     Grassroots Fund or to any other political committee, except a 
     transfer may be made to a district or local committee of the 
     same political party in the same State if such district or 
     local committee--
       ``(A) has established a separate segregated fund for the 
     purposes described in paragraph (1); and
       ``(B) uses the transferred funds solely for those purposes.
       ``(e) Amounts Received by Grassroots Fund From State and 
     Local Candidate Committees.--(1) Any amount received by a 
     State Party Grassroots Fund from a State or local candidate 
     committee for expenditures described in subsection (b) that 
     are for the benefit of that candidate shall be treated as 
     meeting the requirements of subsection (b) and section 304(e) 
     if--
       ``(A) such amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A); and
       ``(B) the State or local candidate committee--
       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether such requirements are met; and
       ``(ii) certifies that such requirements were met.
       ``(2) For purposes of paragraph (1)(A), in determining 
     whether the funds transferred meet the requirements of this 
     Act described in such paragraph--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee, and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains sufficient funds meeting such 
     requirements as are necessary to cover the transferred funds.
       ``(3) Notwithstanding paragraph (1), any State Party 
     Grassroots Fund receiving any transfer described in paragraph 
     (1) from a State or local candidate committee shall be 
     required to meet the reporting requirements of this Act, and 
     shall submit to the Commission all certifications received, 
     with respect to receipt of the transfer from such candidate 
     committee.
       ``(4) For purposes of this subsection, a State or local 
     candidate committee is a committee established, financed, 
     maintained, or controlled by a candidate for other than 
     Federal office.
       ``(f) Related Entities.--The provisions of this Act shall 
     apply to any entity that is established, financed, or 
     maintained by a national committee or State committee of a 
     political party in the same manner as they apply to the 
     national or State committee.''
       (b) Contributions and Expenditures.--
       (1) Contributions.--Section 301(8)(B) of such Act (2 U.S.C. 
     431(8)(B)) is amended--
       (A) in clause (viii), by inserting after ``Federal office'' 
     the following: ``, or any amounts received by the committees 
     of any national political party to support the operation of a 
     television and radio broadcast facility'';
       (B) by striking ``and'' at the end of clause (xiii);
       (C) by striking clause (xiv); and
       (D) by adding at the end the following new clauses:
       ``(xiv) any amount contributed to a candidate for other 
     than Federal office;
       ``(xv) any amount received or expended to pay the costs of 
     a State or local political convention;
       ``(xvi) any payment for campaign activities that are 
     exclusively on behalf of (and specifically identify only) 
     State or local candidates and do not identify any Federal 
     candidate, and that are not activities described in section 
     324(b) (without regard to paragraph (6)(B)) or section 
     324(c)(1);
       ``(xvii) any payment for administrative expenses of a State 
     or local committee of a political party, including expenses 
     for--

       ``(I) overhead, including party meetings;
       ``(II) staff (other than individuals devoting a significant 
     amount of their time to elections for Federal office and 
     individuals engaged in conducting get-out-the-vote activities 
     for a Federal election); and
       ``(III) conducting party elections or caucuses;

       ``(xviii) any payment for research pertaining solely to 
     State and local candidates and issues;
       ``(xix) any payment for development and maintenance of 
     voter files other than during the 1-year period ending on the 
     date during an even-numbered calendar year on which regularly 
     scheduled general elections for Federal office occur; and
       ``(xx) any payment for any other activity which is solely 
     for the purpose of influencing, and which solely affects, an 
     election for non-Federal office and which is not an activity 
     described in section 324(b) (without regard to paragraph 
     (6)(B)) or section 324(c)(1).''.
       (2) Expenditures.--Section 301(9)(B) of such Act (2 U.S.C. 
     431(9)(B)) is amended--
       (A) by striking ``and'' at the end of clause (ix);
       (B) by striking the period at the end of clause (x) and 
     inserting a semicolon; and

[[Page H3331]]

       (C) by adding at the end the following new clauses:
       ``(xi) any amount contributed to a candidate for other than 
     Federal office;
       ``(xii) any amount received or expended to pay the costs of 
     a State or local political convention;
       ``(xiii) any payment for campaign activities that are 
     exclusively on behalf of (and specifically identify only) 
     State or local candidates and do not identify any Federal 
     candidate, and that are not activities described in section 
     324(b) (without regard to paragraph (6)(B)) or section 
     324(c)(1);
       ``(xiv) any payment for administrative expenses of a State 
     or local committee of a political party, including expenses 
     for--

       ``(I) overhead, including party meetings;
       ``(II) staff (other than individuals devoting a significant 
     amount of their time to elections for Federal office and 
     individuals engaged in conducting get-out-the-vote activities 
     for a Federal election); and
       ``(III) conducting party elections or caucuses;

       ``(xv) any payment for research pertaining solely to State 
     and local candidates and issues;
       ``(xvi) any payment for development and maintenance of 
     voter files other than during the 1-year period ending on the 
     date during an even-numbered calendar year on which regularly 
     scheduled general elections for Federal office occur; and
       ``(xvii) any payment for any other activity which is solely 
     for the purpose of influencing, and which solely affects, an 
     election for non-Federal office and which is not an activity 
     described in section 324(b) (without regard to paragraph 
     (6)(B)) or section 324(c)(1).''.
       (c) Limitation Applied at National Level; Permitting 
     Committees To Match Independent Expenditures Made on 
     Opponent's Behalf.--Section 315(d) of such Act (2 U.S.C. 
     441a(d)) is amended--
       (1) in paragraph (3), by striking ``The national 
     committee'' and inserting ``Subject to paragraph (4), the 
     national committee''; and
       (2) by adding at the end the following new paragraph:
       ``(4)(A) Notwithstanding paragraph (3), the applicable 
     congressional campaign committee of a political party shall 
     make the expenditures described in such paragraph which are 
     authorized to be made by a national or State committee with 
     respect to a candidate in any State unless it allocates all 
     or a portion of such expenditures to either or both of such 
     committees.
       ``(B) For purposes of paragraph (3), in determining the 
     amount of expenditures of a national or State committee of a 
     political party in connection with the general election 
     campaign of a candidate for election to the office of 
     Representative, Delegate, or Resident Commissioner, there 
     shall be excluded an amount equal to the total amount of 
     independent expenditures made during the campaign on behalf 
     of candidates opposing the candidate.''.
       (d) Limitations Apply for Entire Election Cycle.--Section 
     315(d)(1) of such Act (2 U.S.C. 441a(d)(1)) is amended by 
     adding at the end the following new sentence: ``Each 
     limitation under the following paragraphs shall apply to the 
     entire election cycle for an office.''.

     SEC. 306. RESTRICTIONS ON FUNDRAISING BY CANDIDATES AND 
                   OFFICEHOLDERS.

       (a) State Fundraising Activities.--Section 315 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a), as 
     amended by section 122, is further amended by adding at the 
     end the following new subsection:
       ``(j) Limitations on Fundraising Activities of Federal 
     Candidates and Officeholders and Certain Political 
     Committees.--(1) For purposes of this Act, a candidate for 
     Federal office, an individual holding Federal office, or any 
     agent of the candidate or individual may not solicit funds 
     to, or receive funds on behalf of, any Federal or non-Federal 
     candidate or political committee--
       ``(A) which are to be expended in connection with any 
     election for Federal office unless such funds are subject to 
     the limitations, prohibitions, and requirements of this Act; 
     or
       ``(B) which are to be expended in connection with any 
     election for other than Federal office unless such funds are 
     not in excess of amounts permitted with respect to Federal 
     candidates and political committees under subsections (a) (1) 
     and (2), and are not from sources prohibited by such 
     subsections with respect to elections to Federal office.
       ``(2)(A) The aggregate amount which a person described in 
     subparagraph (B) may solicit from a multicandidate political 
     committee for State committees described in subsection 
     (a)(1)(C) (including subordinate committees) for any calendar 
     year shall not exceed the dollar amount in effect under 
     subsection (a)(2)(B) for the calendar year.
       ``(B) A person is described in this subparagraph if such 
     person is a candidate for Federal office, an individual 
     holding Federal office, an agent of such a candidate or 
     individual, or any national, State, district, or local 
     committee of a political party (including a subordinate 
     committee) and any agent of such a committee.
       ``(3) The appearance or participation by a candidate for 
     Federal office or individual holding Federal office in any 
     fundraising event conducted by a committee of a political 
     party or a candidate for other than Federal office shall not 
     be treated as a solicitation for purposes of paragraph (1) if 
     such candidate or individual does not solicit or receive, or 
     make disbursements from, any funds resulting from such 
     activity.
       ``(4) Paragraph (1) shall not apply to the solicitation or 
     receipt of funds, or disbursements, by an individual who is a 
     candidate for other than Federal office if such activity is 
     permitted under State law.
       ``(5) For purposes of this subsection, an individual shall 
     be treated as holding Federal office if such individual--
       ``(A) holds a Federal office; or
       ``(B) holds a position described in level I of the 
     Executive Schedule under section 5312 of title 5, United 
     States Code.''.
       (b) Tax-Exempt Organizations.--Section 315 of such Act (2 
     U.S.C. 441a), as amended by section 122 and subsection (a), 
     is further amended by adding at the end the following new 
     subsection:
       ``(k) Tax-Exempt Organizations.--(1) If an individual is a 
     candidate for, or holds, Federal office during any period, 
     such individual may not during such period solicit 
     contributions to, or on behalf of, any organization which is 
     described in section 501(c) of the Internal Revenue Code of 
     1986 if--
       ``(A) the organization is established, maintained, or 
     controlled by such individual; and
       ``(B) a significant portion of the activities of such 
     organization include voter registration or get-out-the-vote 
     campaigns.
       ``(2) For purposes of this subsection, an individual shall 
     be treated as holding Federal office if such individual--
       ``(A) holds a Federal office; or
       ``(B) holds a position described in level I of the 
     Executive Schedule under section 5312 of title 5, United 
     States Code.''.

     SEC. 307. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) is amended by 
     adding at the end the following new subsection:
       ``(d) Political Committees.--(1) The national committee of 
     a political party and any congressional campaign committee of 
     a political party, and any subordinate committee of either, 
     shall report all receipts and disbursements during the 
     reporting period, whether or not in connection with an 
     election for Federal office.
       ``(2) A State, district, or local committee of a political 
     party to which section 324 applies shall report all receipts 
     and disbursements for the reporting period, including 
     separate schedules for receipts and disbursements for State 
     Grassroots Funds.
       ``(3) Any political committee shall include in its report 
     under paragraph (1) or (2) the amount of any transfer 
     described in section 324(d)(2) and shall itemize such amounts 
     to the extent required by section 304(b)(3)(A).
       ``(4) The Commission may prescribe regulations to require 
     any political committee to which paragraph (1) or (2) does 
     not apply to report any receipts or disbursements used in 
     connection with a Federal election, including those which are 
     also used, directly or indirectly, to affect a State or local 
     election.
       ``(5) 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 subsection 
     (b) (3)(A), (5), or (6).
       ``(6) Reports required to be filed by this subsection shall 
     be filed for the same time periods required for political 
     committees under subsection (a).''.
       (b) Report of Exempt Contributions.--Section 301(8) of such 
     Act (2 U.S.C. 431(8)) is amended by inserting at the end the 
     following new subparagraph:
       ``(C) The exclusion provided in clause (viii) of 
     subparagraph (B) shall not apply for purposes of any 
     requirement to report contributions under this Act, and all 
     such contributions aggregating in excess of $200 (and 
     disbursements therefrom) shall be reported.''.
       (c) Reports by State Committees.--Section 304 of such Act 
     (2 U.S.C. 434), as amended by subsection (a), is further 
     amended by adding at the end the following new subsection:
       ``(e) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines such reports contain substantially 
     the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of such Act 
     (2 U.S.C. 434(b)(4)) is amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by adding ``and'' at the end of subparagraph (I); and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of such Act 
     (2 U.S.C. 434(b)(5)(A)) is amended--
       (A) by striking ``within the calendar year'', and
       (B) by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.
                        TITLE IV--CONTRIBUTIONS

     SEC. 401. RESTRICTIONS ON BUNDLING.

       Section 315(a)(8) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(8)) is amended to read as follows:

[[Page H3332]]

       ``(8)(A) No person, either directly or indirectly, may act 
     as a conduit or intermediary for any contribution to a 
     candidate.
       ``(B)(i) Nothing in this section shall prohibit--
       ``(I) joint fundraising conducted in accordance with rules 
     prescribed by the Commission by 2 or more candidates; or
       ``(II) fundraising for the benefit of a candidate that is 
     conducted by another candidate.
       ``(ii) No other person may conduct or otherwise participate 
     in joint fundraising activities with or on behalf of any 
     candidate.
       ``(C) The term `conduit or intermediary' means a person who 
     transmits a contribution to a candidate or candidate's 
     committee or representative from another person, except 
     that--
       ``(i) a House of Representatives candidate or 
     representative of a House of Representatives candidate is not 
     a conduit or intermediary for the purpose of transmitting 
     contributions to the candidate's principal campaign committee 
     or authorized committee;
       ``(ii) a professional fundraiser is not a conduit or 
     intermediary, if the fundraiser is compensated for 
     fundraising services at the usual and customary rate;
       ``(iii) a volunteer hosting a fundraising event at the 
     volunteer's home, in accordance with section 301(8)(b), is 
     not a conduit or intermediary for the purposes of that event; 
     and
       ``(iv) an individual is not a conduit or intermediary for 
     the purpose of transmitting a contribution from the 
     individual's spouse.
     For purposes of this section a conduit or intermediary 
     transmits a contribution when receiving or otherwise taking 
     possession of the contribution and forwarding it directly to 
     the candidate or the candidate's committee or representative.
       ``(D) For purposes of this section, the term 
     `representative'--
       ``(i) shall mean a person who is expressly authorized by 
     the candidate to engage in fundraising, and who, in the case 
     of an individual, is not acting as an officer, employee, or 
     agent of any other person;
       ``(ii) shall not include--
       ``(I) a political committee with a connected organization;
       ``(II) a political party;
       ``(III) a partnership or sole proprietorship;
       ``(IV) an organization prohibited from making contributions 
     under section 316; or
       ``(V) a person required to register under the Lobbying 
     Disclosure Act of 1995 (2 U.S.C. 1601 et seq.).
       ``(E) For purposes of this section, the term `acting as an 
     officer, employee, or agent of any other person' includes the 
     following activities by a salaried officer, employee, or paid 
     agent of a person described in subparagraph (D)(ii)(IV):
       ``(i) Soliciting contributions to a particular candidate in 
     the name of, or by using the name of, such a person.
       ``(ii) Soliciting contributions to a particular candidate 
     using other than the incidental resources of such a person.
       ``(iii) Soliciting contributions to a particular candidate 
     under the direction or control of other salaried officers, 
     employees, or paid agents of such a person.
     For purposes of this subparagraph, the term `agent' shall 
     include any person (other than individual members of an 
     organization described in subparagraph (b)(4)(C) of section 
     316) acting on authority or under the direction of such 
     organization.''.

     SEC. 402. CONTRIBUTIONS BY DEPENDENTS NOT OF VOTING AGE.

       Section 315 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a), as amended by sections 122 and 306, is further 
     amended by adding at the end the following new subsection:
       ``(l) For purposes of this section, any contribution by an 
     individual who--
       ``(1) is a dependent of another individual; and
       ``(2) has not, as of the time of such contribution, 
     attained the legal age for voting for elections to Federal 
     office in the State in which such individual resides,
     shall be treated as having been made by such other 
     individual. If such individual is the dependent of another 
     individual and such other individual's spouse, the 
     contribution shall be allocated among such individuals in the 
     manner determined by them.''.

     SEC. 403. PROHIBITION OF ACCEPTANCE BY A CANDIDATE OF CASH 
                   CONTRIBUTIONS FROM ANY ONE PERSON AGGREGATING 
                   MORE THAN $100.

       Section 321 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441g) is amended by inserting ``, and no candidate or 
     authorized committee of a candidate shall accept from any one 
     person,'' after ``make''.

     SEC. 404. CONTRIBUTIONS TO CANDIDATES FROM STATE AND LOCAL 
                   COMMITTEES OF POLITICAL PARTIES TO BE 
                   AGGREGATED.

       Section 315(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(a)), as amended by section 121, is further 
     amended by adding at the end the following new paragraph:
       ``(10) Notwithstanding paragraph (5)(B), a candidate for 
     Federal office may not accept, with respect to an election, 
     any contribution from a State or local committee of a 
     political party (including any subordinate committee of such 
     committee) if such contribution, when added to the total of 
     contributions previously accepted from all such committees of 
     that political party, exceeds a limitation on contributions 
     to a candidate under this section.''.

     SEC. 405. PROHIBITION OF FALSE REPRESENTATION TO SOLICIT 
                   CONTRIBUTIONS.

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

     SEC. 406. LIMITED EXCLUSION OF ADVANCES BY CAMPAIGN WORKERS 
                   FROM THE DEFINITION OF THE TERM 
                   ``CONTRIBUTION''.

       Section 301(8)(B) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 431(8)(B)), as amended by section 305, is 
     amended--
       (1) in clause (xix), by striking ``and'' after the 
     semicolon at the end;
       (2) in clause (xx), by striking the period at the end and 
     inserting: ``; and''; and
       (3) by adding at the end the following new clause:
       ``(xxi) any advance voluntarily made on behalf of an 
     authorized committee of a candidate by an individual in the 
     normal course of such individual's responsibilities as a 
     volunteer for, or employee of, the committee, if the advance 
     is reimbursed by the committee within 10 days after the date 
     on which the advance is made, and the value of advances on 
     behalf of a committee does not exceed $500 with respect to an 
     election.''.

     SEC. 407. AMENDMENT TO SECTION 316 OF THE FEDERAL ELECTION 
                   CAMPAIGN ACT OF 1971.

       Section 316(b)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441b(b)(2)) is amended--
       (1) by striking ``(2) For'' and inserting ``(2)(A) Except 
     as provided in subparagraph (B), for'';
       (2) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively; and
       (3) by adding at the end the following:
       ``(B) Payments by a corporation or labor organization for 
     candidate debates, voter guides, or voting records directed 
     to the general public shall be considered contributions 
     unless--
       ``(i) in the case of a candidate debate, the organization 
     staging the debate is either an organization described in 
     section 301 (9)(B)(i) whose broadcasts, cablecasts, or 
     publications are supported by commercial advertising, 
     subscriptions, or sales to the public, including a 
     noncommercial educational broadcaster, or a nonprofit 
     organization exempt from Federal taxation under section 
     501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986 
     that does not endorse, support, or oppose candidates or 
     political parties, and any such debate features at least 2 
     candidates competing for election to that office;
       ``(ii) in the case of a voter guide, the guide is prepared 
     and distributed by a corporation or labor organization and 
     consists of questions posed to at least two candidates for 
     election to that office; and
       ``(iii) in the case of a voting record, the record is 
     prepared and distributed by a corporation or labor 
     organization at the end of a session of Congress and consists 
     solely of votes by all Members of Congress in that session on 
     one or more issues;
     except that such payments shall be treated as contributions 
     if any communication made by a corporation or labor 
     organization in connection with the candidate debate, voter 
     guide, or voting record contains express advocacy, or any 
     structure or format of the candidate debate, voter guide, or 
     voting record, or any preparation or distribution of any such 
     guide or record, reflects a purpose of influencing the 
     election of a particular candidate.''.

     SEC. 408. PROHIBITION OF CERTAIN ELECTION-RELATED ACTIVITIES 
                   OF FOREIGN NATIONALS.

       Section 319 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441e) is amended by adding at the end the following 
     new subsection:
       ``(c) A foreign national shall not directly or indirectly 
     direct, control, influence, or participate in any person's 
     election-related activities, such as the making of 
     contributions or expenditures in connection with elections 
     for any local, State, or Federal office or the administration 
     of a political committee.''.
                    TITLE V--REPORTING REQUIREMENTS

     SEC. 501. CHANGE IN CERTAIN REPORTING FROM A CALENDAR YEAR 
                   BASIS TO AN ELECTION CYCLE BASIS.

       Paragraphs (2), (3), (4), (6), and (7) of section 304(b) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 434(b) 
     (2)-(7)) are each amended by inserting ``(election cycle, in 
     the case of an authorized committee of a candidate for 
     Federal office)'' after ``calendar year'' each place it 
     appears.

     SEC. 502. DISCLOSURE OF PERSONAL AND CONSULTING SERVICES.

       (a) Reporting by Political Committees.--Section 
     304(b)(5)(A) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434(b)(5)(A)) is amended by adding before the 
     semicolon at the end the following: ``, except that if a 
     person to whom an expenditure is made by a candidate or the 
     candidate's authorized committees is merely providing 
     personal or consulting services and is in turn making 
     expenditures to other persons (not including its owners or 
     employees) who provide goods or services to the candidate or 
     the candidate's authorized committees, the name and 
     address of such other person, together with the date, 
     amount and purpose of such expenditure shall also be 
     disclosed''.
       (b) Recordkeeping and Reporting by Persons to Whom 
     Expenditures Are Passed

[[Page H3333]]

     Through.--Section 302 of such Act (2 U.S.C. 432) is amended 
     by adding at the end the following new subsection:
       ``(j) The person described in section 304(b)(5)(A) who is 
     providing personal or consulting services and who is in turn 
     making expenditures to other persons (not including 
     employees) for goods or services provided to a candidate 
     shall maintain records of and shall provide to a political 
     committee the information necessary to enable the political 
     committee to report the information described in section 
     304(b)(5)(A).''.

     SEC. 503. POLITICAL COMMITTEES OTHER THAN CANDIDATE 
                   COMMITTEES.

       Section 303(b) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 433(b)) is amended--
       (1) in paragraph (2), by inserting ``, and if the 
     organization or committee is incorporated, the State of 
     incorporation'' after ``committee''; and
       (2) by striking the ``name and address of the treasurer'' 
     in paragraph (4) and inserting ``the names and addresses of 
     any officers (including the treasurer)''.

     SEC. 504. USE OF CANDIDATES' NAMES.

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

     SEC. 505. REPORTING REQUIREMENTS.

       (a) Filing on the 20th Day of a Month.--Section 304(a) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 434(a)) 
     is amended--
       (1) in paragraph (2)(A)(iii), by striking ``15th'' and 
     inserting ``20th'';
       (2) in paragraph (3)(B)(ii), by striking ``15th'' and 
     inserting ``20th'';
       (3) in paragraph (4)(A)(i), by striking ``15th'' and 
     inserting ``20th''; and
       (4) in paragraph (8), by striking ``15th'' and inserting 
     ``20th''.
       (b) Option To File Monthly Reports.--Section 304(a)(2) of 
     such Act (2 U.S.C. 434(a)(2)) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by inserting the following new subparagraph at the end:
       ``(C) in lieu of the reports required by subparagraphs (A) 
     and (B), the treasurer may file monthly reports in all 
     calendar years, which shall be filed no later than the 20th 
     day after the last day of the month and shall be complete as 
     of the last day of the month, except that, in lieu of filing 
     the reports otherwise due in November and December of any 
     year in which a regularly scheduled general election is held, 
     a pre-primary election report and a pre-general election 
     report shall be filed in accordance with subparagraph (A)(i), 
     a post-general election report shall be filed in accordance 
     with subparagraph (A)(ii), and a year end report shall be 
     filed no later than January 31 of the following calendar 
     year.''.
       (c) Political Committees.--Section 304(a)(4) of such Act (2 
     U.S.C. 434(a)(4)) is amended in subparagraph (A)(i) by 
     inserting ``, and except that if at any time during the 
     election year a committee receives contributions in excess of 
     $100,000 ($10,000 in the case of a multicandidate political 
     committee), or makes disbursements in excess of $100,000 
     ($10,000 in the case of a multicandidate political 
     committee), monthly reports on the 20th day of each month 
     after the month in which that amount of contributions is 
     first received or that amount of disbursements is first 
     anticipated to be made during that year'' before the 
     semicolon.
       (d) Incomplete or False Contributor Information.--Section 
     302(i) of such Act (2 U.S.C. 432(i)) is amended--
       (1) by inserting ``(1)'' after ``(i)'';
       (2) by striking ``submit'' and inserting ``report''; and
       (3) by adding at the end the following new paragraph:
       ``(2) A treasurer shall be considered to have used best 
     efforts under this section only if--
       ``(A) all written solicitations include a clear and 
     conspicuous request for the contributor's identification and 
     inform the contributor of the committee's obligation to 
     report the identification in a statement prescribed by the 
     Commission;
       ``(B) the treasurer makes at least 1 additional request for 
     the contributor's identification for each contribution 
     received that aggregates in excess of $200 per calendar year 
     and which does not contain all of the information required by 
     this Act; and
       ``(C) the treasurer reports all information in the 
     committee's possession regarding contributor 
     identifications.''.
       (e) Waiver.--Section 304 of such Act (2 U.S.C. 434), as 
     amended by section 307, is further amended by adding at the 
     end the following new subsection:
       ``(f) Waiver.--The Commission may relieve any category of 
     political committees of the obligation to file 1 or more 
     reports required by this section, or may change the due dates 
     of such reports, if it determines that such action is 
     consistent with the purposes of this Act. The Commission may 
     waive requirements to file reports in accordance with this 
     subsection through a rule of general applicability or, in a 
     specific case, may waive or extend the due date of a report 
     by notifying all political committees affected.''.

     SEC. 506. SIMULTANEOUS REGISTRATION OF CANDIDATE AND 
                   CANDIDATE'S PRINCIPAL CAMPAIGN COMMITTEE.

       Section 303(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 433(a)) is amended in the first sentence by 
     striking ``no later than 10 days after designation'' and 
     inserting ``on the date of its designation''.

     SEC. 507. REPORTING ON GENERAL CAMPAIGN ACTIVITIES OF PERSONS 
                   OTHER THAN POLITICAL PARTIES.

       (a) Reporting Requirement.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434), as amended by 
     sections 307 and 505, is further amended by adding at the end 
     the following new subsection:
       ``(g) Certain Communications by Corporations and Labor 
     Organizations.--(1) Any person making disbursements to pay 
     the cost of applicable communication activities aggregating 
     $5,000 or more with respect to a candidate in an election 
     after the 20th day, but more than 24 hours, before the 
     election shall file a report of such disbursements within 24 
     hours after such disbursements are made.
       ``(2) Any person making disbursements to pay the cost of 
     applicable communications activities aggregating $5,000 or 
     more with respect to a candidate in an election at any time 
     up to and including the 20th day before the election shall 
     file a report within 48 hours after such disbursements are 
     made.
       ``(3) Any person required to file a report under paragraph 
     (1) or (2) which also makes disbursements to pay the cost 
     directly attributable to a get-out-the-vote campaign 
     described in section 316(b)(2)(B) aggregating $25,000 or more 
     with respect to an election shall file a report within 48 
     hours after such disbursements are made.
       ``(4) An additional report shall be filed each time 
     additional disbursements described in paragraph (1), (2), or 
     (3), whichever is applicable, aggregating $10,000 are made 
     with respect to the same candidate in the same election as 
     the initial report filed under this subsection. Each such 
     report shall be filed within 48 hours after the disbursements 
     are made.
       ``(5) For purposes of this subsection, the term `applicable 
     communication activities' means activities which are covered 
     by the exception to section 301(9)(B)(iii).
       ``(6) Any statement under this subsection--
       ``(A) shall be filed in the case of--
       ``(i) disbursements relating to candidates for the House of 
     Representatives, with the Clerk of the House of 
     Representatives and the Secretary of State of the State 
     involved, and
       ``(ii) any other disbursements, with the Commission, and
       ``(B) shall contain such information as the Commission 
     shall prescribe.''
       (b) Conforming Amendment.--Section 301(9)(B) of such Act (2 
     U.S.C. 431(9)(B)) is amended by inserting ``and shall, if 
     such costs exceeds the amount described in paragraph (1), 
     (2), or (4) of section 304(g), be reported in the manner 
     provided in section 304(g)'' before the semicolon at the end 
     of clause (iii).
           TITLE VI--BROADCAST RATES AND CAMPAIGN ADVERTISING

     SEC. 601. BROADCAST RATES AND CAMPAIGN ADVERTISING.

       (a) Broadcast Rates.--Section 315 of the Communications Act 
     of 1934 (47 U.S.C. 315) is amended--
       (1) by amending subsection (b) to read as follows:
       ``(b)(1) Except as provided in paragraph (2), the charges 
     made for the use of a broadcasting station by a person who is 
     a legally qualified candidate for public office in connection 
     with the person's campaign for nomination for election, or 
     election, to public office shall not exceed the charges made 
     for comparable use of such station by other users thereof.
       ``(2) In the case of an eligible House of Representatives 
     candidate, during the 30 days preceding the date of the 
     primary or primary runoff election and during the 60 days 
     preceding the date of a general or special election in which 
     the person is a candidate, the charges made for the use of a 
     broadcasting station by the candidate shall not exceed 50 
     percent of the lowest unit charge of the station for the same 
     class and amount of time for the same period.'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (f) and (g), respectively;
       (3) by inserting after subsection (b) the following new 
     subsections:
       ``(c)(1) Except as provided in paragraph (2), a licensee 
     shall not preempt the use, during any period specified in 
     subsection (b)(1)(A), of a broadcast station by a legally 
     qualified candidate for public office who has purchased and 
     paid for such use pursuant to subsection (b)(1)(A).
       ``(2) If a program to be broadcast by a broadcasting 
     station is preempted because of circumstances beyond the 
     control of the broadcasting station, any candidate 
     advertising spot scheduled to be broadcast during that 
     program may also be preempted.
       ``(d) If any person makes an independent expenditure 
     through a communication on a broadcasting station that 
     expressly advocates the defeat of an eligible House of 
     Representatives candidate, or the election of an

[[Page H3334]]

     eligible House of Representatives candidate (regardless of 
     whether such opponent is an eligible candidate), the 
     licensee, as applicable, shall, not later than 5 business 
     days after the date on which the communication is made (or 
     not later than 24 hours after the communication is made if 
     the communication occurs not more than 2 weeks before the 
     date of the election), transmit to the candidate--
       ``(1) a statement of the date and time on which the 
     communication was made;
       ``(2) a script or tape recording of the communication, or 
     an accurate summary of the communication if a script or tape 
     recording is not available; and
       ``(3) an offer of an equal opportunity for the candidate to 
     use the broadcasting station to respond to the communication 
     without having to pay for the use in advance.
       ``(e) A licensee that endorses a candidate for Federal 
     office in an editorial shall, within the time period stated 
     in subsection (d), provide to all other candidates for 
     election to the same office--
       ``(1) a statement of the date and time of the 
     communication;
       ``(2) a script or tape recording of the communication, or 
     an accurate summary of the communication if a script or tape 
     recording is not available; and
       ``(3) an offer of an equal opportunity for the candidate or 
     spokesperson for the candidate to use the broadcasting 
     station to respond to the communication.''; and
       (4) in subsection (f), as redesignated by paragraph (2)--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(3) the terms `eligible House of Representatives 
     candidate' and `independent expenditure' have the meanings 
     stated in section 301 of the Federal Election Campaign Act of 
     1971.''.
       (b) Revocation of License for Failure To Permit Access.--
     Section 312(a)(7) of such Act (47 U.S.C. 312(a)(7)) is 
     amended--
       (1) by striking ``or repeated'';
       (2) by inserting ``or cable system'' after ``broadcasting 
     station''; and
       (3) by striking ``his candidacy'' and inserting ``his or 
     her candidacy, under the same terms, conditions, and business 
     practices as apply to its most favored advertiser''.
       (c) Meeting Requirements for Rates as Condition of Granting 
     or Renewal of License.--Section 307 of such Act (47 U.S.C. 
     307) is amended by adding at the end the following new 
     subsection:
       ``(f) The continuation of an existing license, the renewal 
     of an expiring license, and the issuance of a new license 
     shall be expressly conditioned on the agreement by the 
     licensee or the applicant to meet the requirements of section 
     315(b), except that the Commission may waive this condition 
     in the case of a licensee or applicant who demonstrates (in 
     accordance with such criteria as the Commission may establish 
     in consultation with the Federal Election Commission) that 
     meeting such requirements will impose a significant financial 
     hardship.''.

     SEC. 602. CAMPAIGN ADVERTISING AMENDMENTS.

       Section 318 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441d) is amended--
       (1) in the matter before paragraph (1) of subsection (a), 
     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'';
       (2) in the matter before paragraph (1) of subsection (a), 
     by striking ``an expenditure'' and inserting ``a 
     disbursement'';
       (3) in the matter before paragraph (1) of subsection (a), 
     by striking ``direct'';
       (4) in paragraph (3) of subsection (a), by inserting after 
     ``name'' the following ``and permanent street address''; and
       (5) by adding at the end the following new subsections:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;
       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any communication described in subsection (a)(1) 
     or (a)(2) that is provided to and distributed by any 
     broadcasting station or cable system (as such terms are 
     defined in sections 315 and 602, respectively, of the Federal 
     Communications Act of 1934) shall include, in addition to the 
     requirements of subsections (a)(1) and (a)(2), an audio 
     statement by the candidate that identifies the candidate and 
     states that the candidate has approved the communication.
       ``(2) If a communication described in paragraph (1) 
     contains any visual images, the communication shall include a 
     written statement which contains the same information as the 
     audio statement and which--
       ``(A) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(B) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e)(1) Any communication described in subsection (a)(3) 
     that is provided to and distributed by any broadcasting 
     station or cable system described in subsection (d)(1) shall 
     include, in addition to the requirements of that subsection, 
     in a clearly spoken manner, the following statement: `        
          is responsible for the content of this advertisement.'; 
     with the blank to be filled in with the name of the political 
     committee or other person paying for the communication and 
     the name of any connected organization of the payor.
       ``(2) If the communication described in paragraph (1) 
     contains visual images, the communication shall include a 
     written statement which contains the same information as the 
     audio statement and which appears in a clearly readable 
     manner with a reasonable degree of color contrast between the 
     background and the printed statement for a period of at least 
     4 seconds.''.

     SEC. 603. ELIGIBILITY FOR NONPROFIT THIRD-CLASS BULK RATES OF 
                   POSTAGE.

       Paragraph (2) of section 3626(e) of title 39, United States 
     Code, is amended--
       (1) in subparagraph (A) by striking ``Committee, and the'' 
     and inserting ``Committee, the'', and by striking 
     ``Committee;'' and inserting ``Committee, and a qualified 
     campaign committee;'';
       (2) by striking ``and'' at the end of subparagraph (B);
       (3) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon; and
       (4) by adding at the end the following:
       ``(D) the term `qualified campaign committee' means the 
     campaign committee of an eligible House of Representatives 
     candidate; and
       ``(E) the term `eligible House of Representatives 
     candidate' has the meaning given that term in section 301 of 
     the Federal Election Campaign Act of 1971.''.
                        TITLE VII--MISCELLANEOUS

     SEC. 701. PROHIBITION OF LEADERSHIP COMMITTEES.

       Section 302(e) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(e)) is amended--
       (1) by amending paragraph (3) to read as follows:
       ``(3) No political committee that supports or has supported 
     more than one candidate may be designated as an authorized 
     committee, except that--
       ``(A) a candidate for the office of President nominated by 
     a political party may designate the national committee of 
     such political party as the candidate's principal campaign 
     committee, but only if that national committee maintains 
     separate books of account with respect to its functions as a 
     principal campaign committee; and
       ``(B) a candidate may designate a political committee 
     established solely for the purpose of joint fundraising by 
     such candidates as an authorized committee.''; and
       (2) by adding at the end the following new paragraph:
       ``(6)(A) A candidate for Federal office or any individual 
     holding Federal office may not establish, finance, maintain, 
     or control any Federal or non-Federal political committee 
     other than a principal campaign committee of the candidate, 
     authorized committee, party committee, or other political 
     committee designated in accordance with paragraph (3). A 
     candidate for more than one Federal office may designate a 
     separate principal campaign committee for each Federal 
     office. This paragraph shall not preclude a Federal 
     officeholder who is a candidate for State or local office 
     from establishing, financing, maintaining, or controlling a 
     political committee for election of the individual to such 
     State or local office.
       ``(B) For 2 years after the effective date of this 
     paragraph, any political committee established before such 
     date but which is prohibited under subparagraph (A) may 
     continue to make contributions. At the end of that period 
     such political committee shall disburse all funds by one or 
     more of the following means: making contributions to an 
     entity qualified under section 501(c)(3) of the Internal 
     Revenue Code of 1986; making a contribution to the treasury 
     of the United States; contributing to the national, State or 
     local committees of a political party; or making 
     contributions not to exceed $1,000 to candidates for elective 
     office.''.

     SEC. 702. APPEARANCE BY FEDERAL ELECTION COMMISSION AS AMICI 
                   CURIAE.

       Section 306(f) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437c(f)) is amended by striking out paragraph (4) 
     and inserting in lieu thereof the following new paragraph:
       ``(4)(A) Notwithstanding the provisions of paragraph (2), 
     or of any other provision of law, the Commission is 
     authorized to appear on its own behalf in any action related 
     to the exercise of its statutory duties or powers in any 
     court as either a party or as amicus curiae, either--
       ``(i) by attorneys employed in its office, or
       ``(ii) by counsel whom it may appoint, on a temporary basis 
     as may be necessary for such purpose, without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and whose 
     compensation it may fix without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of such title. 
     The compensation of counsel so appointed on a temporary basis 
     shall be paid out of any funds otherwise available to pay the 
     compensation of employees of the Commission.
       ``(B) The authority granted under subparagraph (A) includes 
     the power to appeal from, and petition the Supreme Court for 
     certiorari to review, judgments or decrees entered

[[Page H3335]]

     with respect to actions in which the Commission appears 
     pursuant to the authority provided in this section.''.

     SEC. 703. PROHIBITING SOLICITATION OF CONTRIBUTIONS BY 
                   MEMBERS IN HALL OF THE HOUSE OF 
                   REPRESENTATIVES.

       (a) In General.--A Member of the House of Representatives 
     may not solicit or accept campaign contributions in the Hall 
     of the House of Representatives, rooms leading thereto, or 
     the cloakrooms.
       (b) Definition.--In subsection (a), the term ``Member of 
     the House of Representatives'' means a Representative in, or 
     a Delegate or Resident Commissioner to, Congress.
       (c) Exercise of Rulemaking Authority.--This section is 
     enacted by Congress--
       (1) as an exercise of the rulemaking power of the House of 
     Representatives, and as such this section is deemed a part of 
     the rules of the House of Representatives and supersedes 
     other rules only to the extent inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     the House of Representatives to change the rule at any time, 
     in the same manner and to the same extent as in the case of 
     any other rule of the House of Representatives.
              TITLE VIII--EFFECTIVE DATES; AUTHORIZATIONS

     SEC. 801. EFFECTIVE DATE.

       Except as otherwise provided in this Act, the amendments 
     made by, and the provisions of, this Act shall take effect on 
     the date of the enactment of this Act, but shall not apply 
     with respect to activities in connection with any election 
     occurring before January 1, 1999.

     SEC. 802. SEVERABILITY.

       (a) In General.--Except as otherwise provided in this 
     section, if any provision of this Act (including any 
     amendment made by this Act), or the application of any such 
     provision to any person or circumstance, is held invalid, the 
     validity of any other provision of this Act, or the 
     application of such provision to other persons and 
     circumstances, shall not be affected thereby.
       (b) Exceptions.--If any provision of subtitle A of title V 
     of the Federal Election Campaign Act of 1971 (as added by 
     title I) is held to be invalid, all provisions of such 
     subtitle, and the amendment made by section 122, shall be 
     treated as invalid.

     SEC. 803. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.

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

     SEC. 804. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out the provisions of this Act 
     within 12 months after the effective date of this Act.

                               H.R. 2183

                       Offered By: Mr. Hutchinson

               (Amendment in the Nature of a Substitute)

       Amendment No. 8: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Bipartisan Campaign 
     Integrity Act of 1998''.
  TITLE I--SOFT MONEY AND CONTRIBUTIONS AND EXPENDITURES OF POLITICAL 
                                PARTIES

     SEC. 101. BAN ON SOFT MONEY OF NATIONAL POLITICAL PARTIES AND 
                   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 soft money by national political parties and candidates

       ``Sec. 323. (a) National Parties.--A national committee of 
     a political party, including the national congressional 
     campaign committees of a political party, and any officers or 
     agents of such party committees, may not 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. This 
     subsection shall apply to any entity that is established, 
     financed, maintained, or controlled (directly or indirectly) 
     by, or acting on behalf of, a national committee of a 
     political party, including the national congressional 
     campaign committees of a political party, and any officers or 
     agents of such party committees.
       ``(b) Candidates.--
       ``(1) In general.--No candidate for Federal office, 
     individual holding Federal office, or any agent of such 
     candidate or officeholder may solicit, receive, or direct--
       ``(A) any funds in connection with any Federal election 
     unless such funds are subject to 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 such 
     funds are not in excess of the amounts permitted with respect 
     to contributions to Federal candidates and political 
     committees under section 315(a)(1) and (2), 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 or receipt 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 or is a candidate for election for Federal office at a 
     fundraising event for a State or local committee of a 
     political party of the State which the individual represents 
     or seeks to represent as a Federal officeholder, if the event 
     is held in such State.
       ``(c) 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.
       ``(d) Applicability to Funds From All Sources.--This 
     section shall apply with respect to funds of any individual, 
     corporation, labor organization, or other person.''.

     SEC. 102. INCREASE IN AGGREGATE ANNUAL LIMIT ON CONTRIBUTIONS 
                   BY INDIVIDUALS TO POLITICAL PARTIES.

       (a) In General.--The first sentence of section 315(a)(3) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     441a(a)(3)) is amended by striking ``in any calendar year'' 
     and inserting the following: ``to political committees of 
     political parties, or contributions aggregating more than 
     $25,000 to any other persons, in any calendar year''.
       (b) Conforming Amendment.--Section 315(a)(1)(B) of such Act 
     (2 U.S.C. 441a(a)(1)(B)) is amended by striking ``$20,000'' 
     and inserting ``$25,000''.

     SEC. 103. REPEAL OF LIMITATIONS ON AMOUNT OF COORDINATED 
                   EXPENDITURES BY POLITICAL PARTIES.

       (a) In General.--Section 315(d) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(d)) is amended by 
     striking paragraphs (2) and (3).
       (b) Conforming Amendments.--Section 315(d)(1) of such Act 
     (2 U.S.C. 441a(d)(1)) is amended--
       (1) by striking ``(d)(1)'' and inserting ``(d)''; and
       (2) by striking ``, subject to the limitations contained in 
     paragraphs (2) and (3) of this subsection''.

     SEC. 104. INCREASE IN LIMIT ON CONTRIBUTIONS BY 
                   MULTICANDIDATE POLITICAL COMMITTEES TO NATIONAL 
                   POLITICAL PARTIES.

       Section 315(a)(2)(B) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 441a(a)(2)(B)) is amended by striking 
     ``$15,000'' and inserting ``$20,000''.
                 TITLE II--INDEXING CONTRIBUTION LIMITS

     SEC. 201. INDEXING CONTRIBUTION LIMITS.

       Section 315(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(c)) is amended by adding at the end the 
     following new paragraph:
       ``(3)(A) The amount of each limitation established under 
     subsection (a) shall be adjusted as follows:
       ``(i) For calendar year 1999, each such amount shall be 
     equal to the amount described in such subsection, increased 
     (in a compounded manner) by the percentage increase in the 
     price index (as defined in subsection (c)(2)) for each of the 
     years 1997 through 1998.
       ``(ii) For calendar year 2003 and each fourth subsequent 
     year, each such amount shall be equal to the amount for the 
     fourth previous year (as adjusted under this subparagraph), 
     increased (in a compounded manner) by the percentage increase 
     in the price index for each of the four previous years.
       ``(B) In the case of any amount adjusted under this 
     subparagraph which is not a multiple of $100, the amount 
     shall be rounded to the nearest multiple of $100.''.
    TITLE III--EXPANDING DISCLOSURE OF CAMPAIGN FINANCE INFORMATION

     SEC. 301. DISCLOSURE OF CERTAIN COMMUNICATIONS.

       (a) In General.--Any person who expends an aggregate amount 
     of funds during a calendar year in excess of $25,000 for 
     communications described in subsection (b) relating to a 
     single candidate for election for Federal office (or an 
     aggregate amount of funds during a calendar year in excess of 
     $100,000 for all such communications relating to all such 
     candidates) shall file a report describing the amount 
     expended for such communications, together with the person's 
     address and phone number (or, if appropriate, the address and 
     phone number of the person's principal officer).
       (b) Communications Described.--A communication described in 
     this subsection is any communication which is broadcast to 
     the general public through radio or television and which 
     mentions or includes (by name, representation, or likeness) 
     any candidate for election for Senator or for Representative 
     in (or Delegate or Resident Commissioner to) the Congress, 
     other than any

[[Page H3336]]

     communication which would be described in clause (i), (iii), 
     or (v) of section 301(9)(B) of the Federal Election Campaign 
     Act of 1971 if the payment were an expenditure under such 
     section.
       (c) Deadline for Filing.--A person shall file a report 
     required under subsection (a) not later than 7 days after the 
     person first expends the applicable amount of funds described 
     in such subsection, except that in the case of a person who 
     first expends such an amount within 10 days of an election, 
     the report shall be filed not later than 24 hours after the 
     person first expends such amount. For purposes of the 
     previous sentence, the term ``election'' shall have the 
     meaning given such term in section 301(1) of the Federal 
     Election Campaign Act of 1971.
       (d) Place of Submission.--Reports required under subsection 
     (a) shall be submitted--
       (1) to the Clerk of the House of Representatives, in the 
     case of a communication involving a candidate for election 
     for Representative in (or Delegate or Resident Commissioner 
     to) the Congress; and
       (2) to the Secretary of the Senate, in the case of a 
     communication involving a candidate for election for Senator.
       (e) Penalties.--Whoever knowingly fails to--
       (1) remedy a defective filing within 60 days after notice 
     of such a defect by the Secretary of the Senate or the Clerk 
     of the House of Representatives; or
       (2) comply with any other provision of this section,

     shall, upon proof of such knowing violation by a 
     preponderance of the evidence, be subject to a civil fine of 
     not more than $50,000, depending on the extent and gravity of 
     the violation.

     SEC. 302. REQUIRING MONTHLY FILING OF REPORTS.

       (a) Principal Campaign Committees.--Section 
     304(a)(2)(A)(iii) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 434(a)(2)(A)(iii)) is amended to read as 
     follows:
       ``(iii) monthly reports, which shall be filed no later than 
     the 20th day after the last day of the month and shall be 
     complete as of the last day of the month, except that, in 
     lieu of filing the reports otherwise due in November and 
     December of the year, a pre-general election report shall be 
     filed in accordance with clause (i), a post-general election 
     report shall be filed in accordance with clause (ii), and a 
     year end report shall be filed no later than January 31 of 
     the following calendar year.''.
       (b) Other Political Committees.--Section 304(a)(4) of such 
     Act (2 U.S.C. 434(a)(4)) is amended to read as follows:
       ``(4)(A) In a calendar year in which a regularly scheduled 
     general election is held, all political committees other than 
     authorized committees of a candidate shall file--
       ``(i) monthly reports, which shall be filed no later than 
     the 20th day after the last day of the month and shall be 
     complete as of the last day of the month, except that, in 
     lieu of filing the reports otherwise due in November and 
     December of the year, a pre-general election report shall be 
     filed in accordance with clause (ii), a post-general election 
     report shall be filed in accordance with clause (iii), and a 
     year end report shall be filed no later than January 31 of 
     the following calendar year;
       ``(ii) a pre-election report, which shall be filed no later 
     than the 12th day before (or posted by registered or 
     certified mail no later than the 15th day before) any 
     election in which the committee makes a contribution to or 
     expenditure on behalf of a candidate in such election, and 
     which shall be complete as of the 20th day before the 
     election; and
       ``(iii) a post-general election report, which shall be 
     filed no later than the 30th day after the general election 
     and which shall be complete as of the 20th day after such 
     general election.
       ``(B) In any other calendar year, all political committees 
     other than authorized committees of a candidate shall file a 
     report covering the period beginning January 1 and ending 
     June 30, which shall be filed no later than July 31 and a 
     report covering the period beginning July 1 and ending 
     December 31, which shall be filed no later than January 31 of 
     the following calendar year.''.
       (c) Conforming Amendments.--(1) Section 304(a) of such Act 
     (2 U.S.C. 434(a)) is amended by striking paragraph (8).
       (2) Section 309(b) of such Act (2 U.S.C. 437g(b)) is 
     amended by striking ``for the calendar quarter'' and 
     inserting ``for the month''.

     SEC. 303. MANDATORY ELECTRONIC FILING FOR CERTAIN REPORTS.

       (a) In General.--Section 304(a)(11)(A) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434(a)(11)(A)) is 
     amended by striking the period at the end and inserting the 
     following: ``, except that the Commission shall require the 
     reports to be filed and preserved by such means, format, or 
     method, unless the aggregate amount of contributions or 
     expenditures (as the case may be) reported by the committee 
     in all reports filed with respect to the election involved 
     (taking into account the period covered by the report) is 
     less than $50,000.''.
       (b) Providing Standardized Software Package.--Section 
     304(a)(11) of such Act (2 U.S.C. 434(a)(11)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) The Commission shall make available without charge a 
     standardized package of software to enable persons filing 
     reports by electronic means to meet the requirements of this 
     paragraph.''.

     SEC. 304. WAIVER OF ``BEST EFFORTS'' EXCEPTION FOR 
                   INFORMATION ON OCCUPATION OF INDIVIDUAL 
                   CONTRIBUTORS.

       Section 302(i) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(i)) is amended--
       (1) by striking ``(i) When the treasurer'' and inserting 
     ``(i)(1) Except as provided in paragraph (2), when the 
     treasurer''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) shall not apply with respect to 
     information regarding the occupation or the name of the 
     employer of any individual who makes a contribution or 
     contributions aggregating more than $200 during a calendar 
     year (as required to be provided under subsection (c)(3)).''.
                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall apply 
     with respect to elections occurring after January 1999.

                               H.R. 2183

                          Offered by Mr. Paul

               (Amendment in the Nature of a Substitute)

       Amendment No. 9: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Voter Freedom Act of 1998''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress makes the following findings:
       (1) Voting participation in the United States is lower than 
     in any other advanced industrialized democracy.
       (2) The rights of eligible citizens to seek election to 
     office, vote for candidates of their choice and associate for 
     the purpose of taking part in elections, including the right 
     to create and develop new political parties, are fundamental 
     in a democracy. The rights of citizens to participate in the 
     election process, provided in and derived from the first and 
     fourteenth amendments to the Constitution, have consistently 
     been promoted and protected by the Federal Government. These 
     rights include the right to cast an effective vote and the 
     right to associate for the advancement of political beliefs, 
     which includes the ``constitutional right . . . to create and 
     develop new political parties.'' Norman v. Reed, 502 U.S. 
     279, 112 S.Ct. 699 (1992). It is the duty of the Federal 
     Government to see that these rights are not impaired in 
     elections for Federal office.
       (3) Certain restrictions on access to the ballot impair the 
     ability of citizens to exercise these rights and have a 
     direct and damaging effect on citizens' participation in the 
     electoral process.
       (4) Many States unduly restrict access to the ballot by 
     nonmajor party candidates and nonmajor political parties by 
     means of such devices as excessive petition signature 
     requirements, insufficient petitioning periods, 
     unconstitutionally early petition filing deadlines, petition 
     signature distribution criteria, and limitations on 
     eligibility to circulate and sign petitions.
       (5) Many States require political parties to poll an unduly 
     high number of votes or to register an unduly high number of 
     voters as a precondition for remaining on the ballot.
       (6) In 1983, the Supreme Court ruled unconstitutional an 
     Ohio law requiring a nonmajor party candidate for President 
     to qualify for the general election ballot earlier than major 
     party candidates. This Supreme Court decision, Anderson v. 
     Celebrezze, 460 U.S. 780 (1983) has been followed by many 
     lower courts in challenges by nonmajor parties and candidates 
     to early petition filing deadlines. See, e.g., Stoddard v. 
     Quinn, 593 F. Supp. 300 (D.Me. 1984); Cripps v. Seneca County 
     Board of Elections, 629 F. Supp. 1335 (N.D.Oh. 1985); 
     Libertarian Party of Nevada v. Swackhamer, 638 F. Supp. 565 
     (D. Nev. 1986); Cromer v. State of South Carolina, 917 F.2d 
     819 (4th Cir. 1990); New Alliance Party of Alabama v. Hand, 
     933 F. 2d 1568 (11th Cir. 1991).
       (7) In 1996, 34 States required nonmajor party candidates 
     for President to qualify for the ballot before the second 
     major party national convention (Arizona, California, 
     Colorado, Connecticut, Delaware, District of Columbia, 
     Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Maine, 
     Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, 
     New Hampshire, New Jersey, New York, North Carolina, Ohio, 
     Oklahoma, Pennsylvania, South Carolina, South Dakota, 
     Tennessee, Texas, Virginia, Washington, West Virginia, and 
     Wyoming). Twenty-six of these States required nonmajor party 
     candidates to qualify before the first major party national 
     convention (Arizona, California, Colorado, Connecticut 
     Florida, Georgia, Illinois, Indiana, Kansas, Maine, Maryland, 
     Massachusetts, Michigan, Missouri, Montana, Nevada, New 
     Hampshire, New Jersey, North Carolina, Oklahoma, 
     Pennsylvania, South Carolina, South Dakota, Texas, 
     Washington, and West Virginia).
       (8) Under present law, in 1996, nonmajor party candidates 
     for President were required to obtain at least 701,089 
     petition signatures to be listed on the ballots of all 50 
     States and the District of Columbia--28 times more signatures 
     than the 25,500 required of Democratic Party candidates and 
     13 times more signatures than the 54,250 required of 
     Republican Party candidates. To be listed on the

[[Page H3337]]

     ballot in all 50 States and the District of Columbia with a 
     party label, nonmajor party candidates for President were 
     required to obtain approximately 651,475 petition signatures 
     and 89,186 registrants. Thirty-two of the 41 States that hold 
     Presidential primaries required no signatures of major party 
     candidates for President (Arkansas, California, Colorado, 
     Connecticut, Florida, Georgia, Idaho, Kansas, Kentucky, 
     Louisiana, Maryland, Massachusetts, Michigan, Minnesota, 
     Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, 
     North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, 
     South Carolina, South Dakota, Tennessee, Texas, Virginia, 
     Washington, West Virginia, Wisconsin). Only three States 
     required no signatures of nonmajor party candidates for 
     President (Arkansas, Colorado, and Louisiana; Colorado and 
     Louisiana, however, required a $500 filing fee).
       (9) Under present law, the number of petition signatures 
     required by the States to list a major party candidate for 
     Senate on the ballot in 1996 ranged from zero to 15,000. The 
     number of petition signatures required to list a nonmajor 
     party candidate for Senate ranged from zero to 196,788. 
     Thirty-one States required no signatures of major party 
     candidates for Senate (Alabama, Alaska, Arkansas, Colorado, 
     Connecticut, Delaware, Florida, Georgia, Hawaii, Kansas, 
     Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, 
     Mississippi, Missouri, Montana, Nebraska, Nevada, New 
     Hampshire, North Carolina, North Dakota, Oklahoma, Oregon, 
     South Carolina, Texas, Utah, Washington, West Virginia, 
     Wyoming). Only one State required no signatures of nonmajor 
     party candidates for Senate, provided they were willing to be 
     listed on the ballot without a party label (Louisiana, 
     although a $600 filing fee was required, and to run with a 
     party label, a candidate was required to register 111,121 
     voters into his or her party).
       (10) Under present law, the number of petition signatures 
     required by the States to list a major party candidate for 
     Congress on the ballot in 1996 ranged from zero to 2,000. The 
     number of petition signatures required to list a nonmajor 
     party candidate for Congress ranged from zero to 13,653. 
     Thirty-one States required no signatures of major party 
     candidates for Congress (Alabama, Alaska, Arkansas, Colorado, 
     Connecticut, Delaware, Florida, Georgia, Hawaii, Kansas, 
     Kentucky, Louisiana, Maryland, Minnesota, Mississippi, 
     Missouri, Montana, Nebraska, Nevada, New Hampshire, North 
     Carolina, North Dakota, Oklahoma, Oregon, South Carolina, 
     Texas, Utah, Washington, West Virginia, Wyoming). Only one 
     State required no signatures of nonmajor party candidates for 
     Congress, provided they are willing to be listed on the 
     ballot without a party label (Louisiana, although a $600 
     filing fee was required).
       (11) Under present law, in 1996, eight States required 
     additional signatures to list a nonmajor party candidate for 
     President on the ballot with a party label (Alabama, Arizona, 
     Idaho, Kansas, Nebraska, North Dakota, Ohio, Tennessee). 
     Thirteen States required additional signatures to list a 
     nonmajor party candidate for Senate or Congress on the ballot 
     with a party label (Alabama, Arizona, Arkansas, California, 
     Idaho, Hawaii, Kansas, Louisiana, North Dakota, Nebraska, 
     Ohio, Oregon, Tennessee). Two of these States (Ohio and 
     Tennessee) required 5,000 signatures and 25 signatures, 
     respectively, to list a nonmajor party candidate for 
     President or Senate on the ballot in 1996, but required 
     33,463 signatures and 37,179 signatures, respectively, to 
     list the candidate on the ballot with her or his party label. 
     One State (California) required a nonmajor party to have 
     89,006 registrants in order to have its candidate for 
     President listed on the ballot with a party label.
       (12) Under present law, in 1996 one State (California) 
     required nonmajor party candidates for President or Senate to 
     obtain 147,238 signatures in 105 days, but required major 
     party candidates for Senate to obtain only 65 signatures in 
     105 days, and required no signatures of major party 
     candidates for President. Another State (Texas) required 
     nonmajor party candidates for President or Senate to obtain 
     43,963 signatures in 75 days, and required no signatures of 
     major party candidates for President or Senate.
       (13) Under present law, in 1996, seven States required 
     nonmajor party candidates for President or Senate to collect 
     a certain number or percentage of their petition signatures 
     in each congressional district or in a specified number of 
     congressional districts (Michigan, Missouri, Nebraska, New 
     Hampshire, New York, North Carolina, Virginia). Only three of 
     these States impose a like requirement on major party 
     candidates for President or Senate (Michigan, New York, 
     Virginia).
       (14) Under present law, in 1996, 20 States restricted the 
     circulation of petitions for nonmajor party candidates to 
     residents of those States (California, Colorado, Connecticut, 
     District of Columbia, Idaho, Illinois, Kansas, Michigan, 
     Missouri, Nebraska, Nevada, New Jersey, New York, Ohio, 
     Pennsylvania, South Dakota, Texas, Virginia, West Virginia, 
     Wisconsin). Two States restricted the circulation of 
     petitions for nonmajor party candidates to the county or 
     congressional district where the circulator lives (Kansas and 
     Virginia).
       (15) Under present law, in 1996, three States prohibited 
     people who voted in a primary election from signing petitions 
     for nonmajor party candidates (Nebraska, New York, Texas, 
     West Virginia). Twelve States restricted the signing of 
     petitions to people who indicate intent to support or vote 
     for the candidate or party (California, Delaware, Hawaii, 
     Illinois, Indiana, Maryland, New Jersey, New York, North 
     Carolina, Ohio, Oregon, Utah). Five of these 12 States 
     required no petitions of major party candidates (Delaware, 
     Maryland, North Carolina, Oregon, Utah), and only one of the 
     six remaining States restricted the signing of petitions for 
     major party candidates to people who indicate intent to 
     support or vote for the candidate or party (New Jersey).
       (16) In two States (Louisiana and Maryland), no nonmajor 
     party candidate for Senate has qualified for the ballot since 
     those States' ballot access laws have been in effect.
       (17) In two States (Georgia and Louisiana), no nonmajor 
     party candidate for the United States House of 
     Representatives has qualified for the ballot since those 
     States' ballot access laws have been in effect.
       (18) Restrictions on the ability of citizens to exercise 
     the rights identified in this subsection have 
     disproportionately impaired participation in the electoral 
     process by various groups, including racial minorities.
       (19) The establishment of fair and uniform national 
     standards for access to the ballot in elections for Federal 
     office would remove barriers to the participation of citizens 
     in the electoral process and thereby facilitate such 
     participation and maximize the rights identified in this 
     subsection.
       (20) The Congress has authority, under the provisions of 
     the Constitution of the United States in sections 4 and 8 of 
     article I, section 1 of article II, article VI, the 
     thirteenth, fourteenth, and fifteenth amendments, and other 
     provisions of the Constitution of the United States, to 
     protect and promote the exercise of the rights identified in 
     this subsection.
       (b) Purposes.--The purposes of this Act are--
       (1) to establish fair and uniform standards regulating 
     access to the ballot by eligible citizens who desire to seek 
     election to Federal office and political parties, bodies, and 
     groups which desire to take part in elections for Federal 
     office; and
       (2) to maximize the participation of eligible citizens in 
     elections for Federal office.

     SEC. 3. BALLOT ACCESS RIGHTS.

       (a) In General.--An individual shall have the right to be 
     placed as a candidate on, and to have such individual's 
     political party, body, or group affiliation in connection 
     with such candidacy placed on, a ballot or similar voting 
     materials to be used in a Federal election, if--
       (1) such individual presents a petition stating in 
     substance that its signers desire such individual's name and 
     political party, body or group affiliation, if any, to be 
     placed on the ballot or other similar voting materials to be 
     used in the Federal election with respect to which such 
     rights are to be exercised;
       (2) with respect to a Federal election for the office of 
     President, Vice President, or Senator, such petition has a 
     number of signatures of persons qualified to vote for such 
     office equal to one-tenth of one percent of the number of 
     persons who voted in the most recent previous Federal 
     election for such office in the State, or 1,000 signatures, 
     whichever is greater;
       (3) with respect to a Federal election for the office of 
     Representative in, or Delegate or Resident Commissioner to, 
     the Congress, such petition has a number of signatures of 
     persons qualified to vote for such office equal to one-half 
     of one percent of the number of persons who voted in the most 
     recent previous Federal election for such office, or, if 
     there was no previous Federal election for such office, 1,000 
     signatures;
       (4) with respect to a Federal election the date of which 
     was fixed 345 or more days in advance, such petition was 
     circulated during a period beginning on the 345th day and 
     ending on the 75th day before the date of the election; and
       (5) with respect to a Federal election the date of which 
     was fixed less than 345 days in advance, such petition was 
     circulated during a period established by the State holding 
     the election, or, if no such period was established, during a 
     period beginning on the day after the date the election was 
     scheduled and ending on the tenth day before the date of the 
     election, provided, however, that the number of signatures 
     required under paragraph (2) or (3) shall be reduced by \1/
     270\ for each day less than 270 in such period.
       (b) Special Rule.--An individual shall have the right to be 
     placed as a candidate on, and to have such individual's 
     political party, body, or group affiliation in connection 
     with such candidacy placed on, a ballot or similar voting 
     materials to be used in a Federal election, without having to 
     satisfy any requirement relating to a petition under 
     subsection (a), if that or another individual, as a candidate 
     of that political party, body, or group, received one percent 
     of the votes cast in the most recent general Federal election 
     for President or Senator in the State.
       (c) Savings Provision.--Subsections (a) and (b) shall not 
     apply with respect to any State that provides by law for 
     greater ballot access rights than the ballot access rights 
     provided for under such subsections.

     SEC. 4. RULEMAKING.

       The Attorney General shall make rules to carry out this 
     Act.

     SEC. 5. GENERAL DEFINITIONS.

       As used in this Act--
       (1) the term ``Federal election'' means a general or 
     special election for the office of--

[[Page H3338]]

       (A) President or Vice President;
       (B) Senator; or
       (C) Representative in, or Delegate or Resident Commissioner 
     to, the Congress;
       (2) the term ``State'' means a State of the United States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     and any other territory or possession of the United States;
       (3) the term ``individual'' means an individual who has the 
     qualifications required by law of a person who holds the 
     office for which such individual seeks to be a candidate;
       (4) the term ``petition'' includes a petition which 
     conforms to section 3(a)(1) and upon which signers' addresses 
     and/or printed names are required to be placed;
       (5) the term ``signer'' means a person whose signature 
     appears on a petition and who can be identified as a person 
     qualified to vote for an individual for whom the petition is 
     circulated, and includes a person who requests another to 
     sign a petition on his or her behalf at the time when, and at 
     the place where, the request is made;
       (6) the term ``signature'' includes the incomplete name of 
     a signer, the name of a signer containing abbreviations such 
     as first or middle initial, and the name of a signer preceded 
     or followed by titles such as ``Mr.'', ``Ms.'', ``Dr.'', 
     ``Jr.'', or ``III''; and
       (7) the term ``address'' means the address which a signer 
     uses for purposes of registration and voting.
       Amend the title so as to read: ``A bill to enforce the 
     guarantees of the first, fourteenth, and fifteenth amendments 
     to the Constitution of the United States by prohibiting 
     certain devices used to deny the right to participate in 
     certain elections.''.

                               H.R. 2183

                          Offered By: Mr. Paul

               (Amendment in the Nature of a Substitute)

       Amendment No. 10: Strike all after the enacting clause and 
     insert the folowing:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Freedom Debate Act of 
     1998''.

     SEC. 2. REQUIREMENT THAT CANDIDATES WHO RECEIVE CAMPAIGN 
                   FINANCING FROM THE PRESIDENTIAL ELECTION 
                   CAMPAIGN FUND AGREE NOT TO PARTICIPATE IN 
                   MULTICANDIDATE FORUMS THAT EXCLUDE CANDIDATES 
                   WITH BROAD-BASED PUBLIC SUPPORT.

       (a) In General.--In addition to the requirements under 
     subtitle H of the Internal Revenue Code of 1986, in order to 
     be eligible to receive payments from the Presidential 
     Election Campaign Fund, a candidate shall agree in writing 
     not to appear in any multicandidate forum with respect to the 
     election involved unless the following individuals are 
     invited to participate in the multicandidate forum:
       (1) Each other eligible candidate under such subtitle.
       (2) Each individual who is qualified in at least 40 States 
     for the ballot for the office involved.
       (b) Enforcement.--If the Federal Election Commission 
     determines that a candidate--
       (1) has received payments from the Presidential Election 
     Campaign Fund; and
       (2) has violated the agreement referred to in subsection 
     (a);

     the candidate shall pay to the Treasury an amount equal to 
     the amount of the payments so made.
       (c) Definition.--As used in this Act, the term 
     ``multicandidate forum'' means a meeting--
       (1) consisting of a moderated reciprocal discussion of 
     issues among candidates for the same office; and
       (2) to which any other person has access in person or 
     through an electronic medium.
       Amend the title so as to read: ``A bill to require that 
     candidates who receive campaign financing from the 
     Presidential Election Campaign Fund agree not to participate 
     in multicandidate forums that exclude candidates who have 
     broad-based public support.''.

                               H.R. 2183

                 Offered By: Mr. Peterson of Minnesota

               (Amendment in the Nature of a Substitute)

       Amendment No. 11: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Public Financing of House of 
     Representatives Elections Act of 1998''.

     SEC. 2. ESTABLISHMENT OF THE HOUSE OF REPRESENTATIVES 
                   CAMPAIGN TRUST FUND.

       (a) In General.--Subchapter A of chapter 98 of the Internal 
     Revenue Code of 1986 (relating to Trust Fund Code) is amended 
     by adding at the end the following new section:

     ``SEC. 9511. HOUSE OF REPRESENTATIVES CAMPAIGN TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `House of Representatives Campaign Trust Fund', consisting of 
     such amounts as may be appropriated or credited to such trust 
     fund as provided in this section.
       ``(b) Transfer to Fund of Amounts Designated by 
     Individuals.--There is hereby appropriated to the House of 
     Representatives Campaign Trust Fund amounts equivalent to the 
     amounts designated under section 6097.
       ``(c) Expenditure From Fund for Primary Elections.--
       ``(1) In general.--Amounts in the House of Representatives 
     Campaign Trust Fund shall be available to provide payments 
     with respect to a primary election to qualified House 
     candidates under title V of the Federal Election Campaign Act 
     of 1971.
       ``(2) Amount.--Payments from the Fund shall be made, in 
     such manner as the Federal Election Commission may prescribed 
     by regulation, to each qualified House candidate in a primary 
     election in an amount equal to the aggregate total of the 
     first $200 in contributions from individuals.
       ``(d) Expenditure From Fund for General Elections.--
       ``(1) In general.--Amounts in the House of Representatives 
     Campaign Trust Fund shall be available to provide payments 
     with respect to a general election to qualified House 
     candidates under title V of the Federal Election Campaign Act 
     of 1971.
       ``(2) Amount.--Payments from the Fund shall be made, in 
     such manner as the Federal Election Commission may prescribed 
     by regulation, to each qualified House candidate in a general 
     election in an amount determined as follows:
       ``(A) In the case of a major party candidate, $500,000.
       ``(B) In the case of a third party or independent 
     candidate, an amount that bears the same ratio to $1,000,000 
     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.
       ``(3) Definitions.--In this paragraph--
       ``(A) 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;
       ``(B) 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; and
       ``(C) 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.
       ``(e) Limitation on Total Amount of Payments.--The 
     aggregate amount of payments made from the Fund to any 
     candidate with respect to an election cycle may not exceed 50 
     percent of the expenditure limit applicable with respect to 
     the cycle under subtitle B of title V of the Federal Election 
     Campaign Act of 1971.
       ``(f) Repayment of Trust Fund From Excess Funds.--(1) If at 
     the conclusion of a primary election or general election in 
     which a candidate who has received payments from the House of 
     Representatives Campaign Trust Fund under this section has 
     excess campaign funds attributable to that election, such 
     candidate shall within thirty days refund to the trust fund 
     the amount of the excess campaign funds which equals the pro 
     rata share that payments provided to such candidate from the 
     trust fund accounted for of such candidate's total aggregated 
     receipts from all sources with respect to such election.
       ``(2) In no case shall the amount of refund required under 
     paragraph (1) exceed the total aggregated payments provided 
     to such candidate from the Trust Fund with respect to that 
     election.
       ``(g) Indexing of Amounts.--Each of the amounts provided in 
     this section shall be subject to indexing in the same manner 
     as amounts described in title V of the Federal Election 
     Campaign Act of 1971.''.
       (b) Clerical Amendment.--The table of sections for such 
     subchapter A is amended by adding at the end the following 
     new item:

``Sec. 9511. House of Representatives Campaign Trust Fund.''.

     SEC. 3. PUBLIC FINANCING FOR HOUSE CANDIDATES AGREEING TO 
                   LIMIT EXPENDITURES.

       (a) In General.--The Federal Election Campaign Act of 1971 
     (2 U.S.C. 431 et seq.) is amended by adding at the end the 
     following new title:
 ``TITLE V--VOLUNTARY EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR 
               HOUSE OF REPRESENTATIVES GENERAL ELECTIONS
     ``Subtitle A--Public Financing for Qualified House Candidates

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

       ``A qualified House candidate in a House of Representatives 
     election shall be entitled to payments from the House of 
     Representatives Campaign Trust Fund under subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986.

     ``SEC. 502. PROCEDURES FOR CERTIFICATION.

       ``(a) In General.--The Commission shall certify that a 
     candidate initially meets the requirements for a qualified 
     House candidate under if the candidate submits to the 
     Commission in writing a statement with the following 
     information and assurances:

[[Page H3339]]

       ``(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 obtain and furnish to the Commission 
     such evidence as it may request to ensure that the candidate 
     meets the requirements relating to the receipt of matching 
     contributions under subtitle C.
       ``(3) An agreement to keep and furnish to the Commission 
     such records, books, and other information as it may request.
       ``(4) 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.
       ``(5) 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 qualified House candidate or 
     revoke a candidate's status as a qualified 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 Qualified House Candidates

     ``SEC. 511. LIMITATION ON EXPENDITURES.

       ``(a) In General.--Except as provided in subsection (b), a 
     qualified House candidate in a House of Representatives 
     election may not make expenditures with respect to the 
     election cycle involved in excess of $750,000, of which not 
     more than $250,000 may be expended with respect to any 
     primary election occurring within the cycle.
       ``(b) Exceptions.--
       ``(1) Nonparticipating opponent.--In the case of a 
     qualified House candidate with an opponent who is not a 
     qualified House candidate, the amount otherwise provided in 
     subsection (a) shall be increased by the amount by which the 
     amount expended by the opponent exceeds the amount under 
     subsection (a).
       ``(2) Closely contested primary.--In the case of a 
     qualified House candidate in a general election who won the 
     primary involved by a margin of 10 percentage points or less, 
     the amount otherwise provided under subsection (a) shall be 
     increased by 20 percent.
       ``(3) Runoff election.--In the case of a qualified House 
     candidate in a runoff election, the amount otherwise provided 
     under subsection (a) shall be increased by 20 percent.

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

       ``The only sources of amounts for expenditures by qualified 
     House candidates in House of Representatives general 
     elections shall be the House of Representatives Campaign 
     Trust Fund under subchapter A of chapter 61 of the Internal 
     Revenue Code of 1986, except that in the case of a primary 
     election, the candidate may expend an amount not in excess of 
     50 percent of the applicable expenditure limit from matching 
     contributions described in section 521.
 ``Subtitle C--Matching Contribution Requirement for Primary Elections

     ``SEC. 521. REQUIRING MATCHING INDIVIDUAL CONTRIBUTIONS FOR 
                   PRIMARY ELECTIONS.

       ``With respect to a primary election, a qualified House 
     candidate shall report to the Commission that the candidate 
     and the authorized committees of the candidate have received 
     contributions totaling at least $25,000 in contributions of 
     $200 or less from individual contributors.
                 ``Subtitle D--Miscellaneous Provisions

     ``SEC. 531. QUALIFIED HOUSE CANDIDATE DEFINED.

       ``In this title, the term `qualified House candidate' 
     means, with respect to an election for the office of 
     Representative in or Delegate or Resident Commissioner to the 
     House of Representatives, 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.

     ``SEC. 532. INDEXING OF AMOUNTS.

       ``The Commission shall issue regulations providing for the 
     biennial indexing of the amounts provided in this title.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to elections occurring after 
     December 1998.

     SEC. 4. DESIGNATION OF INCOME TAX PAYMENTS TO THE HOUSE OF 
                   REPRESENTATIVES CAMPAIGN TRUST 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 new part:

``PART IX--DESIGNATION OF INCOME TAX PAYMENTS TO BE USED FOR THE HOUSE 
                 OF REPRESENTATIVES CAMPAIGN TRUST FUND

``Sec. 6097. Designation by individuals.

     ``SEC. 6097. DESIGNATION BY INDIVIDUALS.

       ``(a) In General.--Every individual whose adjusted income 
     tax liability for the taxable year is $5 or more may 
     designate that $5 shall be paid over to the House of 
     Representatives Campaign Trust Fund.
       ``(b) Adjusted Income Tax Liability.--For purposes of this 
     section, the adjusted income tax liability of an individual 
     is the tax liability of such individual (as determined under 
     subsection (b) of section 6096) for the taxable year reduced 
     by the amount designated under section 6096 (relating to 
     designation of income tax payments to Presidential Election 
     Campaign Fund) for such taxable year.
       ``(c) Joint Returns.--In the case of a joint return showing 
     adjusted income tax liability of $5 or more, each spouse may 
     designate that $10 shall be paid over to the House of 
     Representatives Campaign Trust Fund.
       ``(d) Manner and Time of Designation.--Subsection (c) of 
     section 6096 shall apply to the manner and time of the 
     designation under this section.''.
       (b) Clerical Amendment.--The table of parts for such 
     subchapter A is amended by adding at the end the following 
     new item:

``Part IX. Designation of income tax payments to be used for the House 
              of Representatives Campaign Trust Fund.''.

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

                               H.R. 2183

                Offered By: Mr. Bob Schaffer of Colorado

               (Amendment in the Nature of a Substitute)

       Amendment No. 12: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Paycheck Protection Act''.

     SEC. 2. PROHIBITING INVOLUNTARY ASSESSMENT OF EMPLOYEE FUNDS 
                   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) Except with the separate, prior, written, 
     voluntary authorization of each individual, it shall be 
     unlawful--
       ``(A) for any national bank or corporation described in 
     this section to collect from or assess its stockholders or 
     employees any dues, initiation fee, or other payment as a 
     condition of employment if any part of such dues, fee, or 
     payment will be used for political activity in which the 
     national bank or corporation is engaged; and
       ``(B) for any labor organization described in this section 
     to collect from or assess its members or nonmembers any dues, 
     initiation fee, or other payment if any part of such dues, 
     fee, or payment will be used for political activity in which 
     the labor organization is engaged.
       ``(2) An authorization described in paragraph (1) 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 
     paragraph shall provide the individual with a statement that 
     the individual may at any time revoke the authorization.
       ``(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, or educating individuals about candidates for 
     election for Federal office.''.
       (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.
       Amend the title so as to read: ``A Bill to protect 
     individuals from having money involuntarily collected and 
     used for political activities by a corporation or labor 
     organization.''.

                               H.R. 2183

                         Offered by: Mr. Shays

               (Amendment in the Nature of a Substitute)

       Amendment No. 13: 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 ``Bipartisan 
     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 H3340]]

Sec. 402. Political party committee coordinated expenditures.

                         TITLE V--MISCELLANEOUS

Sec. 501. Codification of Beck decision.
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 Commissioner 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 limitations, 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 
     paragraphs (2)(A) and (3)(B)(v) of section 323(b).
       ``(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 (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--
       ``(i) for a communication that is express advocacy; and

[[Page H3341]]

       ``(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 transmitted through radio or 
     television 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 whole 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) Definition of Expenditure.--Section 301(9)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is 
     amended--
       (1) 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 certification, 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 concert with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, or an 
     agent acting on behalf of a candidate or authorized 
     committee;
       ``(ii) a payment made by a person for the 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;
       ``(v) a payment made by a person if the person making the 
     payment has served in

[[Page H3342]]

     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, 
     advisor, or staff member), acting on behalf of the candidate, 
     about advertising message, allocation of resources, 
     fundraising, or other campaign matters related to the 
     candidate's campaign, including campaign operations, 
     staffing, tactics, or strategy; or
       ``(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
       ``(D) if applicable, whether the disbursement was in 
     support of, or in opposition to,

[[Page H3343]]

     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 communication described in paragraphs (1) or 
     (2) of subsection (a) which is transmitted through radio or 
     television 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 communication described in paragraph (1) is 
     transmitted through 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 communication described in paragraph (3) of 
     subsection (a) which is transmitted through radio or 
     television 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 filled in with 
     the name of the political committee or other person paying 
     for the communication and the name of any connected 
     organization of the payor). If transmitted through 
     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 LIMIT.

       ``(a) Eligible Congressional Candidate.--
       ``(1) Primary election.--
       ``(A) Declaration.--A candidate for election for Senator or 
     Representative in or Delegate or Resident Commissioner to the 
     Congress is an eligible primary election Congressional 
     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 filed 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 for election for Senator or 
     Representative in or Delegate or Resident Commissioner to the 
     Congress is an eligible general election Congressional 
     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 Congressional 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 Congressional 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 Congressional 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 Congressional 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 Senator or Representative in or Delegate or 
     Resident Commissioner to the Congress who is not an eligible 
     Congressional candidate (as defined in section 324(a)).''.
                         TITLE V--MISCELLANEOUS

     SEC. 501. CODIFICATION OF BECK DECISION.

       Section 8 of the National Labor Relations Act (29 U.S.C. 
     158) is amended by adding at the end the following new 
     subsection:
       ``(h) Nonunion Member Payments to Labor Organization.--
       ``(1) In general.--It shall be an unfair labor practice for 
     any labor organization which receives a payment from an 
     employee pursuant to an agreement that requires employees who 
     are not members of the organization to make payments to such 
     organization in lieu of organization dues or fees not to 
     establish and implement the objection procedure described in 
     paragraph (2).
       ``(2) Objection procedure.--The objection procedure 
     required under paragraph (1) shall meet the following 
     requirements:
       ``(A) The labor organization shall annually provide to 
     employees who are covered by such agreement but are not 
     members of the organization--
       ``(i) reasonable personal notice of the objection 
     procedure, the employees eligible to invoke the procedure, 
     and the time, place, and manner for filing an objection; and
       ``(ii) reasonable opportunity to file an objection to 
     paying for organization expenditures supporting political 
     activities unrelated to collective bargaining, including but 
     not limited to the opportunity to file such objection by 
     mail.
       ``(B) If an employee who is not a member of the labor 
     organization files an objection under the procedure in 
     subparagraph (A), such organization shall--
       ``(i) reduce the payments in lieu of organization dues or 
     fees by such employee by an amount which reasonably reflects 
     the ratio that the organization's expenditures supporting 
     political activities unrelated to collective bargaining bears 
     to such organization's total expenditures;
       ``(ii) provide such employee with a reasonable explanation 
     of the organization's calculation of such reduction, 
     including calculating the amount of organization expenditures 
     supporting political activities unrelated to collective 
     bargaining.
       ``(3) Definition.--In this subsection, the term 
     `expenditures supporting political activities unrelated to 
     collective bargaining' means expenditures in connection with 
     a Federal, State, or local election or in connection with 
     efforts to influence legislation unrelated to collective 
     bargaining.''.

[[Page H3344]]

     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(c) of the Internal Revenue Code of 1986; or
       ``(4) for transfers to a national, State, or local 
     committee of a political party.
       ``(b) Prohibited Use.--
       ``(1) In general.--A contribution or amount described in 
     subsection (a) shall not be converted by any person to 
     personal use.
       ``(2) Conversion.--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 the 180-day period which ends on the 
     date of the general election for the office held by the 
     Member or during the 90-day period which ends on the date of 
     any primary election for that office, unless the Member has 
     made a public announcement that the Member will not be a 
     candidate for reelection during 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 for 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 (5)(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) Penalty 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
       ``(B) a contribution or donation to a committee of a 
     political party; or
       ``(2) a person to solicit, accept, or receive a 
     contribution or donation described in paragraph (1)(A) 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 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.''.

[[Page H3345]]

     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 180 days after the date of 
     the enactment of this Act.

                               H.R. 2183

                       Offered By: Mr. Snowbarger

               (Amendment in the Nature of a Substitute)

       Amendment No. 14: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fair Elections and Political 
     Accountability Act''.

     SEC. 2. REMOVAL OF LIMITATIONS ON FEDERAL ELECTION CAMPAIGN 
                   CONTRIBUTIONS.

       Section 315(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(a)) is amended by adding at the end the 
     following new paragraph:
       ``(9) The limitations established under this subsection 
     shall not apply to contributions made during calendar years 
     beginning after 1998.''.

     SEC. 3. PROMOTING EXPEDITED AVAILABILITY OF FEC REPORTS; 
                   LOWERING THRESHOLD FOR COLLECTION AND 
                   DISCLOSURE OF IDENTIFICATION OF CONTRIBUTORS.

       (a) Mandatory Electronic Filing.--Section 304(a)(11)(A) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     434(a)(11)(A)) is amended by striking ``permit reports 
     required by'' and inserting ``require reports under''.
       (b) Requiring Reports for Certain Contributions Made to Any 
     Political Committee Within 60 Days of Election; Requiring 
     Reports to Be Made Within 48 Hours.--Section 304(a)(6) of 
     such Act (2 U.S.C. 434(a)(6)) is amended to read as follows:
       ``(6)(A) Each political committee shall notify the 
     Secretary or the Commission, and the Secretary of State, as 
     appropriate, in writing, of any contribution in an aggregate 
     amount equal to or greater than $100 which is received by the 
     committee during the period which begins on the 60th day 
     before an election and ends at the time the polls close for 
     such election. This notification shall be made not later than 
     midnight of the day on which the contribution is deposited 
     (but in no event later than 48 hours after receipt) and shall 
     include the name of the candidate involved (as appropriate) 
     and the office sought by the candidate, the identification of 
     the contributor, and the date of receipt and amount of the 
     contribution.
       ``(B) If a political committee returns a contribution for 
     which notification is made under subparagraph (A), the 
     committee shall notify the Secretary or the Commission, and 
     the Secretary of State (as appropriate).
       ``(C) The notifications required under this paragraph shall 
     be in addition to all other reporting requirements under this 
     Act.''.
       (c) Increasing Electronic Disclosure.--Section 304 of such 
     Act (2 U.S.C. 434(a)) is amended by adding at the end the 
     following new subsection:
       ``(d)(1) The Commission shall make the information 
     contained in the reports submitted under this section 
     available on the Internet and publicly available at the 
     offices of the Commission as soon as practicable (but in no 
     case later than 24 hours) after the information is received 
     by the Commission.
       ``(2) In this subsection, the term `Internet' means the 
     international computer network of both Federal and non-
     Federal interoperable packet-switched data networks.''.
       (d) Lowering Threshold for Collection and Disclosure of 
     Identification of Contributors.--
       (1) Reporting requirements.--Section 304(b)(3) of such Act 
     (2 U.S.C. 434(b)(3)) is amended--
       (A) in subparagraph (A), by striking ``whose contribution 
     or contributions have an aggregate amount or value in excess 
     of $200 within the calendar year, or in any lesser amount if 
     the reporting committee should so elect,''; and
       (B) in subparagraphs (F) and (G), by striking ``in an 
     aggregate amount or value in excess of $200'' each place it 
     appears.
       (2) Information required to be forwarded to political 
     committees.--Section 302(b) of such Act (2 U.S.C. 432(b)) is 
     amended--
       (A) in paragraph (1), by striking ``and if the amount of 
     the contribution is in excess of $50'' and inserting 
     ``together with''; and
       (B) in paragraph (2), by striking ``shall--'' and all that 
     follows and inserting the following: ``shall forward to the 
     treasurer such contribution, the name and address of the 
     person making the contribution, and the date of receipt of 
     the contribution, no later than 10 days after receiving the 
     contribution.''.
       (3) Information required to be kept by political 
     committees.--Section 302(c) of such Act (2 U.S.C. 432(c)) is 
     amended--
       (A) by striking paragraph (2); and
       (B) in paragraph (3), by striking ``or contributions 
     aggregating more than $200''.
       (e) Effective Date.--The amendment made by this section 
     shall apply with respect to reports for periods beginning on 
     or after January 1, 1999.

     SEC. 4. PROHIBITING CONTRIBUTIONS BY FOREIGN NATIONALS AND 
                   INDIVIDUALS NOT QUALIFIED TO REGISTER TO VOTE 
                   IN FEDERAL ELECTIONS.

       (a) In General.--Section 319 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441e) is amended to read as 
     follows:


 ``contributions by foreign nationals and individuals not qualified to 
                 register to vote in federal elections

       ``Sec. 319. (a) Foreign Nationals.--
       ``(1) In general.--It shall be unlawful for a foreign 
     national directly or through any other person to make any 
     contribution of money or other thing of value, or to promise 
     expressly or impliedly to make any such contribution, in 
     connection with an election to any political office or in 
     connection with any primary election, convention, or caucus 
     held to select candidates for any political office; or for 
     any person to solicit, accept, or receive any such 
     contribution from a foreign national.
       ``(2) Definition.--As used in this subsection, the term 
     `foreign national' means a foreign principal, as defined by 
     section 1(b) of the Foreign Agents Registration Act of 1938 
     (22 U.S.C. 611(b)).
       ``(b) Individuals Not Qualified to Register to Vote in 
     Federal Elections.--
       ``(1) Prohibiting contributions.--It shall be unlawful for 
     any individual who is not qualified to register to vote in an 
     election for Federal office directly or through any other 
     person to make any contribution of money or other thing of 
     value, or to promise expressly or impliedly to make any such 
     contribution, in connection with an election to any political 
     office or in connection with any primary election, 
     convention, or caucus held to select candidates for any 
     political office.
       ``(2) Prohibiting solicitation or acceptance of 
     contributions.--It shall be unlawful for any person to 
     knowingly solicit, accept, or receive any contribution of 
     money or other thing of value from an individual who is not 
     qualified to register to vote in an election for Federal 
     office.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to elections occurring after January 
     1999.

     SEC. 5. FUNDING OF POLITICAL ACTIVITIES BY CORPORATIONS AND 
                   LABOR ORGANIZATIONS.

       (a) Prohibiting Donation of Funds to Political Parties.--
       (1) 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) No national bank, corporation, or labor 
     organization described in this section may make any payment 
     of any gift, subscription, loan, advance, or deposit of money 
     or anything of value to any political committee established 
     and maintained by a political party (including a 
     congressional campaign committee of a political party) in 
     support of the committee's activities.
       ``(2) Paragraph (1) shall not apply to a contribution or 
     expenditure made by a separate segregated fund of a 
     corporation or labor organization described in subsection 
     (b)(2)(C).''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to elections occurring after January 
     1999.
       (b) Prohibiting Involuntary Assessment of Employee Funds 
     for Political Activities.--
       (1) In general.--Section 316 of such Act (2 U.S.C. 441b), 
     as amended by subsection (a), is further amended by adding at 
     the end the following new subsection:
       ``(d)(1) Except with the separate, prior, written, 
     voluntary authorization of the individual involved, it shall 
     be unlawful--
       ``(A) for any national bank or corporation described in 
     this section to collect from or assess its stockholders any 
     dues, initiation fee, or other payment, or collect from or 
     assess its employees any dues, initiation fee, or other 
     payment as a condition of employment, if any part of such 
     dues, fee, or payment will be used for Federal campaign 
     activity in which the national bank or corporation is 
     engaged; and
       ``(B) for any labor organization described in this section 
     to collect from or assess its members or nonmembers any dues, 
     initiation fee, or other payment if any part of such dues, 
     fee, or payment will be used for Federal campaign activity in 
     which the labor organization is engaged.
       ``(2) An authorization described in paragraph (1) shall 
     remain in effect until revoked

[[Page H3346]]

     and may be revoked at any time. Each entity collecting from 
     or assessing amounts from an individual with an authorization 
     in effect under such paragraph shall provide the individual 
     with a statement that the individual may at any time revoke 
     the authorization.
       ``(3) For purposes of this subsection, the term `Federal 
     campaign activity' means any activity carried out for the 
     purpose of influencing (in whole or in part) any election for 
     Federal office or educating individuals about candidates for 
     election for Federal office, except that such term does not 
     include the making of any communication provided by a 
     corporation to its employees and their families or by a labor 
     organization to its members and their families on any 
     subject.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to amounts collected or assessed on or after the 
     date of the enactment of this Act.

     SEC. 6. PROHIBITING CONTRIBUTIONS DURING SIX MONTHS FOLLOWING 
                   GENERAL ELECTION.

       (a) In General.--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:


    ``prohibiting contributions during six months following general 
                                election

       ``Sec. 323. (a) In General.--No person may make any 
     contribution with respect to an election for Federal office 
     to any political committee of a candidate for election for 
     such office during the 180-day period which begins on the 
     date of the previous regularly scheduled general election for 
     such office, unless the election is a runoff or special 
     election.
       ``(b) Exception for Contributions in Connection With 
     Expenses of Previous Election.--Subsection (a) shall not 
     apply with respect to a contribution made solely in 
     connection with the expenses of an election held prior to the 
     date on which the contribution is made.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to elections occurring after January 
     1999.

     SEC. 7. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR 
                   FEDERAL ELECTION COMMISSION.

       Section 314 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 439c) is amended by adding at the end the following 
     new sentence: ``There are authorized to be appropriated to 
     the Commission $60,000,000 for each of the fiscal years 1999, 
     2000, and 2001, of which not less than $28,350,000 shall be 
     used during each such fiscal year for enforcement 
     activities.''.

     SEC. 8. ENHANCING ENFORCEMENT OF CAMPAIGN FINANCE LAW.

       (a) Mandatory Imprisonment for Criminal Conduct.--Section 
     309(d)(1)(A) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 437g(d)(1)(A)) is amended--
       (1) in the first sentence, by striking ``shall be fined, or 
     imprisoned for not more than one year, or both'' and 
     inserting ``shall be imprisoned for not fewer than 1 year and 
     not more than 10 years''; and
       (2) by striking the second sentence.
       (b) Concurrent Authority of Attorney General to Bring 
     Criminal Actions.--Section 309(d) of such Act (2 U.S.C. 
     437g(d)) is amended by adding at the end the following new 
     paragraph:
       ``(4) In addition to the authority to bring cases referred 
     pursuant to subsection (a)(5), the Attorney General may at 
     any time bring a criminal action for a violation of this Act 
     or of chapter 95 or chapter 96 of the Internal Revenue Code 
     of 1986.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to actions brought with respect to 
     elections occurring after January 1999.

                               H.R. 2183

                        Offered By: Mr. Tierney

               (Amendment in the Nature of a Substitute)

       Amendment No. 15: 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 ``Clean 
     Money, Clean Elections Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

       TITLE I--CLEAN MONEY FINANCING OF HOUSE ELECTION CAMPAIGNS

Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of clean money 
              financing of House election campaigns.

      ``TITLE V--CLEAN MONEY FINANCING OF HOUSE ELECTION CAMPAIGNS

``Sec. 501. Definitions.
``Sec. 502. Eligibility for clean money.
``Sec. 503. Requirements applicable to clean money candidates.
``Sec. 504. Seed money.
``Sec. 505. Certification by Commission.
``Sec. 506. Benefits for clean money candidates.
``Sec. 507. Administration of clean money.
``Sec. 508. Expenditures made from funds other than clean money.
``Sec. 509. Authorization of appropriations.''
Sec. 103. Reporting requirements for expenditures of private money 
              candidates.
Sec. 104. Transition rule for current election cycle.

    TITLE II--INDEPENDENT EXPENDITURES; COORDINATED POLITICAL PARTY 
                              EXPENDITURES

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

                      TITLE III--VOTER INFORMATION

Sec. 301. Free broadcast time.
Sec. 302. Broadcast rates and preemption.
Sec. 303. Campaign advertising.
Sec. 304. Limit on Congressional use of the franking privilege.

           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

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

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

Sec. 501. Appointment and terms of Commissioners.
Sec. 502. Audits.
Sec. 503. Authority to seek injunction.
Sec. 504. Standard for investigation.
Sec. 505. Petition for certiorari.
Sec. 506. Expedited procedures.
Sec. 507. Filing of reports using computers and facsimile machines.
Sec. 508. Power to issue subpoena without signature of chairperson.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Severability.
Sec. 602. Review of constitutional issues.
Sec. 603. Effective date.
       TITLE I--CLEAN MONEY FINANCING OF HOUSE ELECTION CAMPAIGNS

     SEC. 101. FINDINGS AND DECLARATIONS.

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

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

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

     ``SEC. 501. DEFINITIONS.

       ``In this title:

[[Page H3347]]

       ``(1) Allowable contribution.--The term `allowable 
     contribution' means a qualifying contribution or seed money 
     contribution.
       ``(2) Clean money.--The term `clean money' means funds that 
     are made available by the Commission to a clean money 
     candidate under this title.
       ``(3) Clean money candidate.--The term `clean money 
     candidate' means a candidate for Member of or Delegate or 
     Resident Commissioner to the Congress who is certified under 
     section 505 as being eligible to receive clean money.
       ``(4) Clean money qualifying period.--The term `clean money 
     qualifying period' means the period beginning on the date 
     that is 180 days before the date of the primary election and 
     ending on the date that is 30 days before the date of the 
     general election. In the event of a special election, the 
     clean money qualifying period shall begin on the earlier date 
     of either the date that is 180 days before the date of the 
     special election or on the date of announcement of such 
     special election date if same as within 180 days of the date 
     of the special election. It shall end on the date that is 30 
     days before the date of the special election.
       ``(5) General election period.--The term `general election 
     period' means, with respect to a candidate, the period 
     beginning on the day after the date of the primary or primary 
     runoff election for the specific office that the candidate is 
     seeking, whichever is later, and ending on the earlier of--
       ``(A) the date of the general election; or
       ``(B) the date on which the candidate withdraws from the 
     campaign or otherwise ceases actively to seek election.
       ``(6) General runoff election period.--The term `general 
     runoff election period' means, with respect to a candidate, 
     the period beginning on the day following the date of the 
     last general election for the specific office that the 
     candidate is seeking and ending on the date of the runoff 
     election for that office.
       ``(7) House of Representatives election fund.--The term 
     `House of Representatives Election Fund' means the fund 
     established by section 507(a).
       ``(8) Immediate family.--The term `immediate family' 
     means--
       ``(A) a candidate's spouse;
       ``(B) a child, stepchild, parent, grandparent, brother, 
     half-brother, sister, or half-sister of the candidate or the 
     candidate's spouse; and
       ``(C) the spouse of any person described in subparagraph 
     (B).
       ``(9) Major party candidate.--The term `major party 
     candidate' means a candidate of a political party of which a 
     candidate for Member of or Delegate or Resident Commissioner 
     to the Congress, for President, or for Governor in the 
     preceding 5 years received, as a candidate of that party, 25 
     percent or more of the total number of popular votes received 
     in the State (or Congressional district, if applicable) by 
     all candidates for the same office.
       ``(10) Personal funds.--The term `personal funds' means an 
     amount that is derived from--
       ``(A) the personal funds of the candidate or a member of 
     the candidate's immediate family; and
       ``(B) proceeds of indebtedness incurred by the candidate or 
     a member of the candidate's immediate family.
       ``(11) Personal use.--
       ``(A) In general.--The term `personal use' means the use of 
     funds to fulfill a commitment, obligation, or expense of a 
     person that would exist irrespective of the candidate's 
     election campaign or individual's duties as a holder of 
     Federal office.
       ``(B) Inclusions.--The term `personal use' includes, but is 
     not limited to--
       ``(i) a home mortgage, rent, or utility payment;
       ``(ii) a clothing purchase;
       ``(iii) a noncampaign-related automobile expense;
       ``(iv) a country club membership;
       ``(v) a vacation or other noncampaign-related trip;
       ``(vi) a household food item;
       ``(vii) a tuition payment;
       ``(viii) admission to a sporting event, concert, theater, 
     or other form of entertainment not associated with an 
     election campaign; and
       ``(ix) dues, fees, and other payments to a health club or 
     recreational facility.
       ``(12) Primary election period.--The term `primary election 
     period' means the period beginning on the date that is 90 
     days before the date of the primary election and ending on 
     the date of the primary election. In the event of a special 
     primary election, if applicable, the term `primary election 
     period' means the period beginning on the date that is the 
     longer of 90 days before the date of such special primary 
     election, or the date of establishment by the appropriate 
     election authority of the special primary election date and 
     ending on the date of the special primary election.
       ``(13) Primary runoff election period.--The term `primary 
     runoff election period' means, with respect to a candidate, 
     the period beginning on the day following the date of the 
     last primary election for the specific office that the 
     candidate is seeking and ending on the date of the runoff 
     election for that office.
       ``(14) Private money candidate.--The term `private money 
     candidate' means a candidate for Member of or Delegate or 
     Resident Commissioner to the Congress other than a clean 
     money candidate.
       ``(15) Qualifying contribution.--The term `qualifying 
     contribution' means a contribution that--
       ``(A) is in the amount of $5 exactly;
       ``(B) is made by an individual who is registered to vote in 
     the candidate's State;
       ``(C) is made during the clean money qualifying period; and
       ``(D) meets the requirements of section 502(a)(2)(D).
       ``(16) Seed money contribution.--The term `seed money 
     contribution' means a contribution (or contributions in the 
     aggregate made by any 1 person) of not more than $100.
       ``(17) State.--The term `State' includes the District of 
     Columbia, Puerto Rico, the Virgin Islands, American Samoa, 
     and Guam.

     ``SEC. 502. ELIGIBILITY FOR CLEAN MONEY.

       ``(a) Primary Election Period and Primary Runoff Election 
     Period.--
       ``(1) In general.--A candidate qualifies as a clean money 
     candidate during the primary election period and primary 
     runoff election period if the candidate files with the 
     Commission a declaration, signed by the candidate and the 
     treasurer of the candidate's principal campaign committee, 
     that the candidate--
       ``(A) has complied and will comply with all of the 
     requirements of this title;
       ``(B) will not run in the general election as a private 
     money candidate; and
       ``(C) meets the qualifying contribution requirement of 
     paragraph (2).
       ``(2) Qualifying contribution requirement.--
       ``(A) Major party candidates and certain independent 
     candidates.--The requirement of this paragraph is met if, 
     during the clean money qualifying period, a major party 
     candidate (or an independent candidate who meets the minimum 
     vote percentage required for a major party candidate under 
     section 501(9)) receives 1,500 qualifying contributions.
       ``(B) Other candidates.--The requirement of this paragraph 
     is met if, during the clean money qualifying period, a 
     candidate who is not described in subparagraph (A) receives a 
     number of qualifying contributions that is at least 150 
     percent of the number of qualifying contributions that a 
     candidate described in subparagraph (A) in the same election 
     is required to receive under subparagraph (A).
       ``(C) Receipt of qualifying contribution.--A qualifying 
     contribution shall--
       ``(i) be accompanied by the contributor's name and home 
     address;
       ``(ii) be accompanied by a signed statement that the 
     contributor understands the purpose of the qualifying 
     contribution;
       ``(iii) be made by a personal check or money order payable 
     to the House of Representatives Election Fund or by cash; and
       ``(iv) be acknowledged by a receipt that is sent to the 
     contributor with a copy kept by the candidate for the 
     Commission and a copy kept by the candidate for the election 
     authorities in the candidate's State.
       ``(D) Deposit of qualifying contributions in house of 
     representatives election fund.--
       ``(i) In general.--Not later than the date that is 1 day 
     after the date on which the candidate is certified under 
     section 505, a candidate shall remit all qualifying 
     contributions to the Commission for deposit in the House of 
     Representatives Election Fund.
       ``(ii) Candidates that are not certified.--Not later than 
     the last day of the clean money qualifying period, a 
     candidate who has received qualifying contributions and is 
     not certified under section 505 shall remit all qualifying 
     contributions to the Commission for deposit in the House of 
     Representatives Election Fund.
       ``(3) Time to file declaration.--A declaration under 
     paragraph (1) shall be filed by a candidate not later than 
     the date that is 30 days before the date of the primary 
     election. With respect to any special primary election, a 
     declaration under paragraph (1) shall be filed by a candidate 
     not later than the date that is 30 days before the special 
     primary election.
       ``(b) General Election Period.--
       ``(1) In general.--A candidate qualifies as a clean money 
     candidate during the general election period if--
       ``(A)(i) the candidate qualified as a clean money candidate 
     during the primary election period (and primary runoff 
     election period, if applicable); or
       ``(ii) the candidate files with the Commission a 
     declaration, signed by the candidate and the treasurer of the 
     candidate's principal committee, that the candidate--
       ``(I) has complied and will comply with all the 
     requirements of this title; and
       ``(II) meets the qualifying contribution requirement of 
     subsection (a)(2);
       ``(B) the candidate files with the Commission a written 
     agreement between the candidate and the candidate's political 
     party in which the political party agrees not to make any 
     expenditures in connection with the general election of the 
     candidate in excess of the limit in section 315(d)(3)(C); and
       ``(C) the candidate's party nominated the candidate to be 
     placed on the ballot for the general election or the 
     candidate qualified to be placed on the ballot as an 
     independent candidate, and the candidate is qualified under 
     State law to be on the ballot.
       ``(2) Time to file declaration or statement.--A declaration 
     or statement required to be filed under paragraph (1) shall 
     be filed by a candidate not later than the date that is 30 
     days before the date of the general election. With respect to 
     any special general

[[Page H3348]]

     election, a declaration or statement required to be filed 
     under paragraph (1) shall be filed by a candidate not later 
     than the date that is 30 days before the date of the special 
     general election.
       ``(c) General Runoff Election Period.--A candidate 
     qualifies as a clean money candidate during the general 
     runoff election period if the candidate qualified as a clean 
     money candidate during the general election period.

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

       ``(a) Contributions and Expenditures.--
       ``(1) Prohibition of private contributions.--Except as 
     otherwise provided in this title, during the election cycle 
     of a clean money candidate, the candidate shall not accept 
     contributions other than clean money from any source.
       ``(2) Prohibition of expenditures from private sources.--
     Except as otherwise provided in this title, during the 
     election cycle of a clean money candidate, the candidate 
     shall not make expenditures from any amounts other than clean 
     money amounts.
       ``(b) Use of Personal Funds.--
       ``(1) In general.--A clean money candidate shall not use 
     personal funds to make an expenditure except as provided in 
     paragraph (2).
       ``(2) Exceptions.--A seed money contribution or qualifying 
     contribution from the candidate or a member of the 
     candidate's immediate family shall not be considered to be 
     use of personal funds.

     ``SEC. 504. SEED MONEY.

       ``(a) Seed Money Limit.--A clean money candidate may accept 
     seed money contributions in an aggregate amount not exceeding 
     $35,000.
       ``(b) Contribution Limit.--Except as provided in section 
     502(a)(2), a clean money candidate shall not accept a 
     contribution from any person except a seed money contribution 
     (as defined in section 501).
       ``(c) Records.--A clean money candidate shall maintain a 
     record of the contributor's name, street address, and amount 
     of the contribution.
       ``(d) Use of Seed Money.--
       ``(1) In general.--A clean money candidate may expend seed 
     money for any election campaign-related costs, including 
     costs to open an office, fund a grassroots campaign, or hold 
     community meetings.
       ``(2) Prohibited uses.--A clean money candidate shall not 
     expend seed money for--
       ``(A) a television or radio broadcast; or
       ``(B) personal use.
       ``(e) Report.--Unless a seed money contribution or 
     expenditure made with a seed money contribution has been 
     reported previously under section 304, a clean money 
     candidate shall file with the Commission a report disclosing 
     all seed money contributions and expenditures not later than 
     48 hours after--
       ``(1) the earliest date on which the Commission makes funds 
     available to the candidate for an election period under 
     paragraph (1) or (2) of section 506(b); or
       ``(2) the end of the clean money qualifying period,

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

     ``SEC. 505. CERTIFICATION BY COMMISSION.

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

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

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

     whichever occurs first.
       ``(3) Runoff election.--The Commission shall make funds 
     available to a clean money candidate not later than 48 hours 
     after the certification of the primary or general election 
     result (as applicable).
       ``(c) Clean Money Amounts.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     clean money amount paid to a clean money candidate with 
     respect to an election shall be equal to the applicable 
     percentage of 80 percent of the base amount for the election 
     cycle involved, except that in no event may the amount 
     determined under this subsection for a clean money candidate 
     for an election cycle be less than the amount determined 
     under this subsection for the candidate for the previous 
     election cycle.
       ``(2) Reduction for uncontested elections.--If a clean 
     money candidate has no opposition in an election for which a 
     payment is made under this section, the clean money amount 
     paid shall be 40 percent of the amount otherwise determined 
     under paragraph (1).
       ``(3) Definitions.--
       ``(A) Applicable percentage.--In this subsection, the 
     `applicable percentage' is as follows:
       ``(i) 25 percent, in the case of a candidate in a primary 
     election who is not a major party candidate.
       ``(ii) 40 percent, in the case of a major party candidate 
     in a primary election.
       ``(iii) 60 percent, in the case of any candidate in a 
     general election.
       ``(B) Base amount.--In this subsection, the term `base 
     amount' means (with respect to an election cycle) the 
     national average of all amounts expended by winning 
     candidates during the 3 most recent general elections for 
     Member of, or Delegate or Resident Commissioner to, the 
     Congress preceding the election cycle involved.
       ``(d) Matching Funds in Response to Independent 
     Expenditures and Expenditures of Private Money Candidates.--
       ``(1) In general.--If the Commission--
       ``(A) receives notification under--
       ``(i) subparagraphs (A) or (B) of section 304(c)(2) that a 
     person has made or obligated to make an independent 
     expenditure in an aggregate amount of $1,000 or more in an 
     election period or that a person has made or obligated to 
     make an independent expenditure in an aggregate amount of 
     $500 or more during the 20 days preceding the date of an 
     election in support of another candidate or against a clean 
     money candidate; or
       ``(ii) section 304(d)(1) that a private money candidate has 
     made or obligated to make expenditures in an aggregate amount 
     in excess of 100 percent of the amount of clean money 
     provided to a clean money candidate who is an opponent of the 
     private money candidate in the same election; and
       ``(B) determines that the aggregate amount of expenditures 
     reported under subparagraph (A) in an election period is in 
     excess of 125 percent of the amount of clean money provided 
     to a clean money candidate who is an opponent of the private 
     money candidate in the same election or against whom the 
     independent expenditure is made,

     the Commission shall make available to the clean money 
     candidate, not later than 24 hours after receiving a 
     notification under subparagraph (A), an aggregate amount of 
     increase in clean money in an amount equal to the aggregate 
     amount of expenditures that is in excess of 125 percent of 
     the amount of clean money provided to the clean money 
     candidate as determined under subparagraph (B).
       ``(2) Clean money candidates opposed by more than 1 private 
     money candidate.--For purposes of paragraph (1), if a clean 
     money candidate is opposed by more than 1 private money 
     candidate in the same election, the Commission shall take 
     into account only the amount of expenditures of the private 
     money candidate that expends, in the aggregate, the greatest 
     amount (as determined each time notification is received 
     under section 304(d)(1)).
       ``(3) Clean money candidates opposed by clean money 
     candidates.--If a clean money candidate is opposed by a clean 
     money candidate, the increase in clean money amounts under 
     paragraph (1) shall be made available to the clean money 
     candidate if independent expenditures are made against the 
     clean money candidate or in behalf of the opposing clean 
     money candidate in the same manner as the increase would be 
     made available for a clean money candidate who is opposed by 
     a private money candidate.
       ``(e) Limits on Matching Funds.--The aggregate amount of 
     clean money that a clean

[[Page H3349]]

     money candidate receives to match independent expenditures 
     and the expenditures of private money candidates under 
     subsection (d) shall not exceed 200 percent of the clean 
     money amount that the clean money candidate receives under 
     subsection (c).
       ``(f) Expenditures Made with Clean Money Amounts.--
       ``(1) In general.--The clean money amount received by a 
     clean money candidate shall be used only for the purpose of 
     making or obligating to make expenditures during the election 
     period for which the clean money is provided.
       ``(2) Expenditures in excess of clean money amount.--A 
     clean money candidate shall not make expenditures or incur 
     obligations in excess of the clean money amount.
       ``(3) Prohibited uses.--The clean money amount received by 
     a clean money candidate shall not be--
       ``(A) converted to a personal use; or
       ``(B) used in violation of law.
       ``(4) Repayment; civil penalties.--
       ``(A) If the Commission determines that any benefit made 
     available to a clean money candidate under this title was not 
     used as provided for in this title, or that a clean money 
     candidate has violated any of the spending limits or dates 
     for remission of funds contained in this Act, the Commission 
     shall so notify the candidate and the candidate shall pay to 
     the House of Representatives' Election Fund an amount equal 
     to the amount of benefits so used, or the amount spent in 
     excess of the limits or the amount not timely remitted, as 
     appropriate.
       ``(B) Any action by the Commission in accordance with this 
     section shall not preclude enforcement proceedings by the 
     Commission in accordance with section 309(a), including a 
     referral by the Commission to the Attorney General in the 
     case of an apparent knowing and willful violation of this 
     title.
       ``(g) Remitting of Clean Money Amounts.--Not later than the 
     date that is 14 days after the last day of the applicable 
     election period, a clean money candidate shall remit any 
     unspent clean money amount to the Commission for deposit in 
     the House of Representatives Election Fund.

     ``SEC. 507. ADMINISTRATION OF CLEAN MONEY.

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

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

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

     ``SEC. 509. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

     SEC. 104. TRANSITION RULE FOR CURRENT ELECTION CYCLE.

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

     SEC. 201. REPORTING REQUIREMENTS FOR INDEPENDENT 
                   EXPENDITURES.

       (a) Independent Expenditures.--Section 304(c) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(c)) is 
     amended--
       (1) by striking ``(c)(1) Every person'' and inserting the 
     following:
       ``(c) Independent Expenditures.--
       ``(1) In general.--
       ``(A) Required filing.--Except as provided in paragraph 
     (2), every person'';
       (2) in paragraph (2), by redesignating subparagraphs (A), 
     (B), and (C) as clauses (i), (ii), and (iii), respectively, 
     and adjusting the margins accordingly;
       (3) by redesignating paragraphs (2) and (3) as 
     subparagraphs (B) and (C), respectively, and adjusting the 
     margins accordingly;
       (4) by adding at the end the following:
       ``(2) House of representatives elections with a clean money 
     candidate.--
       ``(A) Independent expenditures more than 20 days before an 
     election.--
       ``(i) In general.--Not later than 48 hours after making an 
     independent expenditure, more than 20 days before the date of 
     an election, in support of an opponent of or in opposition to 
     a clean money candidate (as defined in section 501), a person 
     that makes independent expenditures in an aggregate amount in 
     excess of $1,000 during an election period (as defined in 
     section 501) shall file with the Commission a statement 
     containing the information described in clause (ii).
       ``(ii) Contents of statement.--A statement under 
     subparagraph (A) shall include a certification, under penalty 
     of perjury, that contains the information required by 
     subsection (b)(6)(B)(iii).
       ``(iii) Additional statements.--An additional statement 
     shall be filed for each aggregate of independent expenditures 
     that exceeds $1,000.
       ``(B) Independent expenditures during the 20 days preceding 
     an election.--Not later than 24 hours after making or 
     obligating to make an independent expenditure in support of 
     an opponent of or in opposition to a clean money candidate in 
     an aggregate amount in excess of $500, during the 20 days 
     preceding the date of an election, a person that makes or 
     obligates to make the independent expenditure shall file with 
     the Commission a statement stating the amount of each 
     independent expenditure made or obligated to be made.
       ``(C) Place of filing; notification.--
       ``(i) Place of filing.--A report or statement under this 
     paragraph shall be filed with the Commission.
       ``(ii) Notification of clean money candidates.--Not later 
     than 24 hours, but excluding the time from 5:00 p.m. Friday 
     through and until 9:00 a.m. the following Monday, and legal 
     holidays after receipt of a statement under this paragraph, 
     the Commission shall notify each clean money candidate 
     seeking nomination for election to, or election to, the 
     office in question of the receipt of a statement.
       ``(D) Determination by the commission.--
       ``(i) In general.--The Commission may, on request of a 
     candidate or on its own initiative, make a determination that 
     a person has made or obligated to make independent 
     expenditures with respect to a candidate that in the 
     aggregate exceed the applicable amount under subparagraph 
     (A).
       ``(ii) Notification.--Not later than 24 hours after making 
     a determination under clause (i), the Commission shall notify 
     each clean money candidate in the election of the making of 
     the determination.
       ``(iii) Time to comply with request for determination.--A 
     determination made at

[[Page H3350]]

     the request of a candidate shall be made not later than 48 
     hours after the date of the request.''.

     SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE.

       (a) In General.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) is amended by striking 
     paragraph (17) and inserting the following:
       ``(17) Independent expenditure.--
       ``(A) In general.--The term ``independent expenditure'' 
     means an expenditure made by a person other than a candidate 
     or candidate's authorized committee--
       ``(i) that is made for a communication that contains 
     express advocacy; and
       ``(ii) is made without the participation or cooperation of 
     and without coordination with a candidate (within the meaning 
     of section 301(8)(A)(iii)).
       ``(B) Express advocacy.--The term `express advocacy' means 
     a communication that is made through a broadcast medium, 
     newspaper, magazine, billboard, direct mail, or similar type 
     of communication and that--
       ``(i) advocates the election or defeat of a clearly 
     identified candidate, including any communication that--

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

       ``(ii)(I) refers to a clearly identified candidate;
       ``(II) is made not more than 60 days before the date of a 
     general election; and
       ``(III) is not solely devoted to a pending legislative 
     issue before an open session of Congress.''.
       (b) Definition Applicable When Provision Not in Effect.--
     For purposes of the Federal Election Campaign Act of 1971, 
     during any period beginning after the effective date of this 
     Act in which the definition, or any part of the definition, 
     under section 301(17)(B) of that Act (as added by subsection 
     (a)) is not in effect, the definition of ``express advocacy'' 
     shall mean, in addition to the part of the definition that is 
     in effect, a communication that clearly identifies a 
     candidate and taken as a whole and with limited reference to 
     external events, such as proximity to an election, expresses 
     unmistakable support for or opposition to 1 or more clearly 
     identified candidates.

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

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

     SEC. 204. PARTY INDEPENDENT EXPENDITURES AND OTHER 
                   COORDINATED EXPENDITURES.

       (a) Determination to Make Coordinated Expenditures.--
     Section 315(d) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(d)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``coordinated'' after ``make''; and
       (B) by striking ``(2) and (3)'' and inserting ``(2), (3), 
     and (4)''; and
       (2) by adding at the end the following:
       ``(4)(A) Before a committee of a political party makes a 
     coordinated expenditure in connection with a general election 
     campaign for Federal office in excess of $5,000, the 
     committee shall file with the Commission a certification, 
     signed by the treasurer, that the committee has not made and 
     will not make any independent expenditures in connection with 
     that campaign for Federal office. A party committee that 
     determines to make a coordinated expenditure shall not make 
     any transfer of funds in the same election cycle to, or 
     receive any transfer of funds in the same election cycle 
     from, any other party committee that determines to make 
     independent expenditures in connection with the same campaign 
     for Federal office.
       ``(B) A committee of a political party shall be considered 
     to be in coordination with a candidate of the party if the 
     committee--
       ``(i) makes a payment for a communication or anything of 
     value in coordination with the candidate, as described in 
     section 301(8)(A)(iii);
       ``(ii) makes a coordinated expenditure under this 
     subsection on behalf of the candidate;
       ``(iii) participates in joint fundraising with the 
     candidate or in any way solicits or receives a contribution 
     on behalf of the candidate;
       ``(iv) communicates with the candidate, or an agent of the 
     candidate (including a pollster, media consultant, vendor, 
     advisor, or staff member), acting on behalf of the candidate, 
     about advertising, message, allocation of resources, 
     fundraising, or other campaign matters related to the 
     candidate's campaign, including campaign operations, 
     staffing, tactics or strategy; or
       ``(v) provides in-kind services, polling data, or anything 
     of value to the candidate.
       ``(C) For purposes of this paragraph, all political 
     committees established and maintained by a national political 
     party (including all congressional campaign committees) and 
     all political committees established by State political 
     parties shall be considered to be a single political 
     committee.
       ``(D) For purposes of subparagraph (A), any coordination 
     between a committee of a political party and a candidate of 
     the party after the candidate has filed a statement of 
     candidacy constitutes coordination for the period beginning 
     with the filing of the statement of candidacy and ending at 
     the end of the election cycle.''.
       (b) Definitions.--
       (1) Amendment of definition of contribution.--Section 
     301(8) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(8)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (i);
       (ii) by striking the period at the end of clause (ii) and 
     inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(iii) a payment made for a communication or anything of 
     value that is for the purpose of influencing an election for 
     Federal office and that is made in coordination with a 
     candidate (as defined in subparagraph (C)).''; and
       (B) by adding at the end the following:
       ``(C) For the purposes of subparagraph (A)(iii), the term 
     `payment made in coordination with a candidate' includes--
       ``(i) a payment made by a person in cooperation, 
     consultation, or concert with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, or an 
     agent acting on behalf of a candidate or authorized 
     committee;
       ``(ii) a payment made by a person for the dissemination, 
     distribution, or republication, in whole or in part, of any 
     broadcast or any written, graphic, or other form of campaign 
     material prepared by a candidate, a candidate's authorized 
     committee, or an agent of a candidate or authorized committee 
     (not including a communication described in paragraph 
     (9)(B)(i) or a communication that expressly advocates the 
     candidate's defeat);
       ``(iii) a payment made based on information about a 
     candidate's plans, projects, or needs provided to the person 
     making the payment by the candidate or the candidate's agent 
     who provides the information with a view toward having the 
     payment made;
       ``(iv) a payment made by a person if, in the same election 
     cycle in which the payment is made, the person making the 
     payment is serving or has served as a member, employee, 
     fundraiser, or agent of the candidate's authorized committee 
     in an executive or policymaking position;
       ``(v) a payment made by a person if the person making the 
     payment has served in any formal policy or advisory position 
     with the candidate's campaign or has participated in 
     strategic or policymaking discussions with the candidate's 
     campaign relating to the candidate's pursuit of nomination 
     for election, or election, to Federal office, in the same 
     election cycle as the election cycle in which the payment is 
     made; and
       ``(vi) a payment made by a person if the person making the 
     payment retains the professional services of an individual or 
     person who has provided or is providing campaign-related 
     services in the same election cycle to a candidate in 
     connection with the candidate's pursuit of nomination for 
     election, or election, to Federal office, including services 
     relating to the candidate's decision to seek Federal office, 
     and the payment is for services of which the purpose is to 
     influence that candidate's election.
       ``(D) For purposes of subparagraph (C)(vi), the term 
     `professional services' includes services in support of a 
     candidate's pursuit of nomination for election, or election, 
     to Federal office such as polling, media advice, direct mail, 
     fundraising, or campaign research.''.
       (2) Definition of contribution in section 315(a)(7).--
     Section 315(a)(7) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(7)) is amended by striking paragraph 
     (B) and inserting the following:
       ``(B)(i) Except as provided in clause (ii), a payment made 
     in coordination with a candidate (as described in section 
     301(8)(A)(iii)) shall be considered to be a contribution to 
     the candidate, and, for the purposes of any provision of this 
     Act that imposes a limitation on the making of expenditures 
     by a candidate, shall be treated as an expenditure by the 
     candidate for purposes of this paragraph.
       ``(ii) In the case of a clean money candidate (as defined 
     in section 501), a payment made in coordination with a 
     candidate by a committee of a political party shall not be 
     treated as a contribution to the candidate for purposes of 
     section 503(b)(1) or an expenditure made by the candidate for 
     purposes of section 503(b)(2).''.
       (c) Meaning of Contribution or Expenditure for the Purposes 
     of Section 316.--Section 316(b)(2) of the Federal Election

[[Page H3351]]

     Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure (as those terms are defined in 
     section 301) and also includes''.
                      TITLE III--VOTER INFORMATION

     SEC. 301. FREE BROADCAST TIME.

       Section 315 of the Communications Act of 1934 (47 U.S.C. 
     315) is amended--
       (1) in subsection (a), in the third sentence, by striking 
     ``within the meaning of this subsection'' and inserting 
     ``within the meaning of this subsection or subsection (c)'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Free Broadcast Time.--
       ``(1) Amount of time.--A clean money candidate shall be 
     entitled to receive--
       ``(A) 30 minutes of free broadcast time during each of the 
     primary election period and the primary runoff election 
     period; and
       ``(B) 75 minutes of free broadcast time during the general 
     election period and general runoff election period.
       ``(2) Time during which the broadcast is shown.--The 
     broadcast time under paragraph (1) shall be--
       ``(A) with respect to a television broadcast, the time 
     between 6:00 p.m. and 10:00 p.m. on any day that falls on 
     Monday through Friday;
       ``(B) with respect to a radio broadcast, the time between 
     7:00 a.m. and 9:30 a.m. or between 4:30 p.m. and 7:00 p.m. on 
     any day that falls on Monday through Friday; or
       ``(C) with respect to any broadcast, such other time to 
     which the candidate and broadcaster may agree.
       ``(3) Maximum required of any station.--The amount of free 
     broadcast time that any 1 station is required to make 
     available to any 1 clean money candidate during each of the 
     primary election period, primary runoff election period, and 
     general election period shall not exceed 15 minutes.''; and
       (4) in subsection (d) (as redesignated by paragraph (1))--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting a semicolon, and by redesignating that paragraph as 
     paragraph (4);
       (C) by inserting after paragraph (1) the following:
       ``(2) the term `clean money candidate' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;
       ``(3) the terms `general election period' and `general 
     runoff election period' have the meaning given in section 501 
     of the Federal Election Campaign Act of 1971;''; and
       (D) by adding at the end the following:
       ``(5) the term `primary election period' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971;
       ``(6) the term `private money candidate' has the meaning 
     given in section 501 of the Federal Election Campaign Act of 
     1971; and
       ``(7) the term `primary runoff election period' has the 
     meaning given in section 501 of the Federal Election Campaign 
     Act of 1971.''.

     SEC. 302. BROADCAST RATES AND PREEMPTION.

       (a) Broadcast Rates.--Section 315(b) of the Communications 
     Act of 1934 (47 U.S.C. 315(b)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and adjusting the 
     margins accordingly;
       (2) by striking ``The charges'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     charges''; and
       (3) by adding at the end the following:
       ``(2) Clean money candidates.--In the case of a clean money 
     candidate, the charges for the use of a television 
     broadcasting station shall not exceed 50 percent of the 
     lowest charge described in paragraph (1)(A) during--
       ``(A) the 30 days preceding the date of a primary or 
     primary runoff election in which the candidate is opposed; 
     and
       ``(B) the 60 days preceding the date of a general or 
     special election in which the candidate is opposed.
       ``(3) Other house candidates.--In the case of a candidate 
     for election for Member of, or Delegate or Resident 
     Commissioner to, the Congress who is not a clean money 
     candidate, paragraph (1)(A) shall not apply.
       ``(4) Rate cards.--A licensee shall provide to a candidate 
     for Member of or Delegate or Resident Commissioner to the 
     Congress a rate card that discloses--
       ``(A) the rate charged under this subsection; and
       ``(B) the method that the licensee uses to determine the 
     rate charged under this subsection.''.
       (b) Preemption.--Section 315 of the Communications Act of 
     1934 (47 U.S.C. 315) (as amended by section 301) is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Preemption.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     licensee shall not preempt the use of a broadcasting station 
     by a legally qualified candidate for Member of or Delegate or 
     Resident Commissioner to the Congress who has purchased and 
     paid for such use.
       ``(2) Circumstances beyond control of licensee.--If a 
     program to be broadcast by a broadcasting station is 
     preempted because of circumstances beyond the control of the 
     broadcasting station, any candidate advertising spot 
     scheduled to be broadcast during that program may also be 
     preempted.''.
       (c) Revocation of License for Failure to Permit Access.--
     Section 312(a)(7) of the Communications Act of 1934 (47 
     U.S.C. 312(a)(7)) is amended--
       (1) by striking ``or repeated'';
       (2) by inserting ``or cable system'' after ``broadcasting 
     station''; and
       (3) by striking ``his candidacy'' and inserting ``the 
     candidacy of the candidate, under the same terms, conditions, 
     and business practices as apply to the most favored 
     advertiser of the licensee''.

     SEC. 303. CAMPAIGN ADVERTISING.

       (a) Contents of Campaign Advertisements.--Section 318 of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 441d) is 
     amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever''; and
       (ii) by striking ``direct''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address'' after ``name''; and
       (2) by adding at the end the following:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;
       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in subsection (a)(1) or subsection (a)(2) shall include, in 
     addition to the requirements of those subsections, an audio 
     statement that identifies the candidate and states that the 
     candidate has approved the communication.
       ``(2) If a broadcast or cablecast communication described 
     in paragraph (1) is broadcast or cablecast by means of 
     television, the communication shall include, in addition to 
     the audio statement under paragraph (1), a written statement 
     which 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.
       ``(e) Any broadcast or cablecast communication described in 
     subsection (a)(3) shall include, in addition to the 
     requirements of those subsections, in a clearly spoken 
     manner, the following statement: `________________ is 
     responsible for the content of this advertisement.' (with the 
     blank to be filled in with the name of the political 
     committee or other person paying for the communication and 
     the name of any connected organization of the payor). If 
     broadcast or cablecast by means of television, the statement 
     shall also appear in a clearly readable manner with a 
     reasonable degree of color contrast between the background 
     and the printed statement, for a period of at least 4 
     seconds.''.
       (b) Reporting Requirements for Issue Advertisements.--
     Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 103) is amended by adding 
     at the end the following:
       ``(e) Issue Advertisements.--
       ``(1) In general.--A person that makes or obligates to make 
     a disbursement to purchase an issue advertisement shall file 
     a report with the Commission not later than 48 hours after 
     making or obligating to make the disbursement, containing the 
     following information--
       ``(A) the amount of the disbursement;
       ``(B) the information required under subsection (b)(3)(A) 
     for each person that makes a contribution, in an aggregate 
     amount of $1,000 or greater in a calendar year, to the person 
     who makes the disbursement;
       ``(C) the name and address of the person making the 
     disbursement; and
       ``(D) the purpose of the issue advertisement.
       ``(2) Definition of issue advertisement.--In this 
     subsection, the term `issue advertisement' means a 
     communication through a broadcasting station, newspaper, 
     magazine, outdoor advertising facility, mailing, or any other 
     type of general public political advertising--
       ``(A) the purchase of which is not an independent 
     expenditure or a contribution;
       ``(B) that contains the name or likeness of a candidate for 
     Member of or Delegate or Resident Commissioner to the 
     Congress;
       ``(C) that is communicated during an election year; and
       ``(D) that recommends a position on a political issue.''.

     SEC. 304. 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)(i) Except as provided in clause (ii), a Member of 
     Congress shall not mail any mass mailing as franked mail 
     during the period which begins on the first day of the 
     primary election period (as described in section 501(12) of 
     the Federal Election Campaign Act of 1971) and ends on the 
     date of the general election for that office (other than any 
     portion of such period between the date of the

[[Page H3352]]

     primary election and the first day of the general election 
     period), unless the Member has made a public announcement 
     that the Member will not be a candidate for reelection in 
     that year or for election to any other Federal office.
       ``(ii) A Member of Congress may mail a mass mailing as 
     franked mail if--
       ``(I) the purpose of the mailing is to communicate 
     information about a public meeting; and
       ``(II) the content of the mailed matter includes only the 
     Representative's name, and the date, time, and place of the 
     public meeting.''.
           TITLE IV--SOFT MONEY OF POLITICAL PARTY COMMITTEES

     SEC. 401. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

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

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

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

     SEC. 402. STATE PARTY GRASSROOTS FUNDS.

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

     except that the aggregate contributions described in this 
     subparagraph that may be made by a person to the State Party 
     Grassroots Fund and all committees of a State Committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Limits.--
       (1) In general.--Section 315(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by 
     striking paragraph (3) and inserting the following:
       ``(3) Overall limits.--
       ``(A) Individual limit.--No individual shall make 
     contributions during any calendar year that, in the 
     aggregate, exceed $25,000.
       ``(B) Calendar year.--No individual shall make 
     contributions during any calendar year--
       ``(i) to all candidates and their authorized political 
     committees that, in the aggregate, exceed $25,000; or
       ``(ii) to all political committees established and 
     maintained by State committees of a political party that, in 
     the aggregate, exceed $20,000.
       ``(C) Nonelection years.--For purposes of subparagraph 
     (B)(i), any contribution made to a candidate or the 
     candidate's authorized political committees in a year other 
     than the calendar year in which the election is held with 
     respect to which the contribution is made shall be treated as 
     being made during the calendar year in which the election is 
     held.''.
       (c) Definitions.--Section 301 of the Federal Election 
     Campaign Act of 1970 (2 U.S.C. 431) is amended by adding at 
     the end the following:
       ``(20) The term `generic campaign activity' means a 
     campaign activity that promotes a political party and does 
     not refer to any particular Federal or non-Federal candidate.
       ``(21) The term `State Party Grassroots Fund' means a 
     separate segregated fund established and maintained by a 
     State committee of a political party solely for purposes of 
     making expenditures and other disbursements described in 
     section 326(d).''.
       (d) State Party Grassroots Funds.--Title III of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as 
     amended by section 401) is amended by adding at the end the 
     following:

     ``SEC. 325. STATE PARTY GRASSROOTS FUNDS.

       ``(a) In General.--A State committee of a political party 
     shall only make disbursements and expenditures from the 
     committee's State Party Grassroots Fund that are described in 
     subsection (d).
       ``(b) Transfers.--
       ``(1) In general.--Notwithstanding section 315(a)(4), a 
     State committee of a political party shall not transfer any 
     funds from the committee's State Party Grassroots Fund to any 
     other State Party Grassroots Fund or to any other political 
     committee, except as provided in paragraph (2).
       ``(2) Exception.--A committee of a political party may 
     transfer funds from the committee's State Party Grassroots 
     Fund to a district or local committee of the same political 
     party in the same State if the district or local committee--
       ``(A) has established a separate segregated fund for the 
     purposes described in subsection (d); and
       ``(B) uses the transferred funds solely for those purposes.
       ``(c) Amounts Received by Grassroots Funds From State and 
     Local Candidate Committees.--
       ``(1) In general.--Any amount received by a State Party 
     Grassroots Fund from a State or local candidate committee for 
     expenditures described in subsection (d) that are for the 
     benefit of that candidate shall be treated as meeting the 
     requirements of 324(b)(1) and section 304(d) if--
       ``(A) the amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A)(i); and
       ``(B) the State or local candidate committee--

[[Page H3353]]

       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether those requirements are met; and
       ``(ii) certifies that the requirements were met.
       ``(2) Determination of compliance.--For purposes of 
     paragraph (1)(A), in determining whether the funds 
     transferred meet the requirements of this Act described in 
     paragraph (1)(A)--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee; and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains funds meeting those requirements 
     sufficient to cover the transferred funds.
       ``(3) Reporting.--Notwithstanding paragraph (1), any State 
     Party Grassroots Fund that receives a transfer described in 
     paragraph (1) from a State or local candidate committee shall 
     be required to meet the reporting requirements of this Act, 
     and shall submit to the Commission all certifications 
     received, with respect to receipt of the transfer from the 
     candidate committee.
       ``(d) Disbursements and Expenditures.--A State committee of 
     a political party may make disbursements and expenditures 
     from its State Party Grassroots Fund only for--
       ``(1) any generic campaign activity;
       ``(2) payments described in clauses (v), (ix), and (xi) of 
     paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
     paragraph (9)(B) of section 301;
       ``(3) subject to the limitations of section 315(d), 
     payments described in clause (xii) of paragraph (8)(B), and 
     clause (ix) of paragraph (9)(B), of section 301 on behalf of 
     candidates other than for President and Vice President;
       ``(4) voter registration; and
       ``(5) development and maintenance of voter files during an 
     even-numbered calendar year.
       ``(e) Definition.--In this section, the term `State or 
     local candidate committee' means a committee established, 
     financed, maintained, or controlled by a candidate for other 
     than Federal office.''.

     SEC. 403. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 303(b)) is amended by adding at the end the 
     following:
       ``(f) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any congressional 
     campaign committee of a political party, and any subordinate 
     committee of either, shall report all receipts and 
     disbursements during the reporting period, whether or not in 
     connection with an election for Federal office.
       ``(2) Other political committees to which section 324 
     applies.--A political committee to which section 324(b)(1) 
     applies shall report all receipts and disbursements made for 
     activities described in section 324(b) (1) and (2)(A)(iii).
       ``(3) Other political committees.--Any political committee 
     to which paragraph (1) or (2) does not apply shall report any 
     receipts or disbursements that are used in connection with a 
     Federal election.
       ``(4) Itemization.--If a political committee has receipts 
     or disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for the person in the same manner as required in 
     paragraphs (3)(A), (5), and (6) of subsection (b).
       ``(5) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods as reports are required for political committees 
     under subsection (a).''.
       (b) Building Fund Exception to the Definition of 
     Contribution.--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xiv) as clauses 
     (viii) through (xiii), respectively.
       (c) Reports by State Committees.--Section 304 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as 
     amended by subsection (a)) is amended by adding at the end 
     the following:
       ``(g) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines that such reports contain 
     substantially the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
     is amended by striking ``operating expense'' and inserting 
     ``operating expenditure, and the election to which the 
     operating expenditure relates''.
   TITLE V--RESTRUCTURING AND STRENGTHENING OF THE FEDERAL ELECTION 
                               COMMISSION

     SEC. 501. APPOINTMENT AND TERMS OF COMMISSIONERS.

       (a) In General.--Section 306(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 437c(a)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) There is established'' and inserting 
     ``(1)(A) There is established'';
       (B) by striking the second sentence and inserting the 
     following:
       ``(B) Composition of commission.--The Commission is 
     composed of 6 members appointed by the President, by and with 
     the advice and consent of the United States Senate, and 1 
     member appointed by the President from among persons 
     recommended by the Commission as provided in subparagraph 
     (D).'';
       (C) by striking ``No more than'' and inserting the 
     following:
       ``(C) Party affiliation.--Not more than''; and
       (D) by adding at the end the following:
       ``(D) Nomination by commission of additional member.--
       ``(i) In general.--The members of the Commission shall 
     recommend to the President, by a vote of 4 members, 3 persons 
     for the appointment to the Commission.
       ``(ii) Vacancy.--On vacancy of the position of the member 
     appointed under this subparagraph, a member shall be 
     appointed to fill the vacancy in the same manner as provided 
     in clause (i).''; and
       (2) in paragraphs (3) and (4), by striking ``(other than 
     the Secretary of the Senate and the Clerk of the House of 
     Representatives)''.
       (b) Transition Rule.--Not later than 90 days after the date 
     of enactment of this Act, the Commission shall recommend 
     persons for appointment under section 306(a)(1)(D) of the 
     Federal Election Campaign Act of 1971, as added by subsection 
     (a)(1)(D).

     SEC. 502. AUDITS.

       (a) Random audit.--Section 311(b) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 438(b)) is amended--
       (1) by inserting ``(1)'' before ``The Commission''; and
       (2) by adding at the end the following:
       ``(2) Random audits.--
       ``(A) In general.--Notwithstanding paragraph (1), after 
     every primary, general, and runoff election, the Commission 
     may conduct random audits and investigations to ensure 
     voluntary compliance with this Act.
       ``(B) Selection of subjects.--The subjects of audits and 
     investigations under this paragraph shall be selected on the 
     basis of impartial criteria established by a vote of at least 
     4 members of the Commission.
       ``(C) Exclusion.--This paragraph does not apply to an 
     authorized committee of a candidate for President or Vice 
     President subject to audit under chapter 95 or 96 of the 
     Internal Revenue Code of 1986.''.

     SEC. 503. AUTHORITY TO SEEK INJUNCTION.

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

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

     SEC. 504. STANDARD FOR INVESTIGATION.

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

     SEC. 505. PETITION FOR CERTIORARI.

       Section 307(a)(6) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437d(a)) is amended by inserting ``(including 
     a proceeding before the Supreme Court on certiorari)'' after 
     ``appeal''.

     SEC. 506. EXPEDITED PROCEDURES.

       Section 309(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 437g(a)) (as amended by section 503) is amended by 
     adding at the end the following:
       ``(14) Expedited procedure.--
       ``(A) 60 days before a general election.--If the complaint 
     in a proceeding was filed within 60 days before the date of a 
     general election, the Commission may take action described in 
     this subparagraph.
       ``(B) Resolution before an election.--If the Commission 
     determines, on the basis of facts alleged in the complaint 
     and other facts available to the Commission, that

[[Page H3354]]

     there is clear and convincing evidence that a violation of 
     this Act has occurred, is occurring, or is about to occur and 
     it appears that the requirements for relief stated in clauses 
     (ii), (iii), and (iv) of paragraph (13)(A) are met, the 
     Commission may--
       ``(i) order expedited proceedings, shortening the time 
     periods for proceedings under paragraphs (1), (2), (3), and 
     (4) as necessary to allow the matter to be resolved in 
     sufficient time before the election to avoid harm or 
     prejudice to the interests of the parties; or
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     immediately seek relief under paragraph (13)(A).
       ``(C) Meritless complaints.--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.''.

     SEC. 507. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       Section 302(g) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(g)) is amended by adding at the end the 
     following:
       ``(5) Filing of reports using computers and facsimile 
     machines.--
       ``(A) Computers.--The Commission shall issue a regulation 
     under which a person required to file a designation, 
     statement, or report under this Act--
       ``(i) is required to maintain and file the designation, 
     statement, or report for any calendar year in electronic form 
     accessible by computers if the person has, or has reason to 
     expect to have, aggregate contributions or expenditures in 
     excess of a threshold amount determined by the Commission; 
     and
       ``(ii) may maintain and file the designation, statement, or 
     report in that manner if not required to do so under a 
     regulation under clause (i).
       ``(B) Facsimile machines.--The Commission shall prescribe a 
     regulation that allows a person to file a designation, 
     statement, or report required by this Act through the use of 
     a facsimile machine.
       ``(C) Verification.--In a regulation under this paragraph, 
     the Commission shall provide methods (other than requiring a 
     signature on the document being filed) for verifying a 
     designation, statement, or report. 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.
       ``(D) Compatibility of systems.--The Secretary of the 
     Senate shall ensure that any computer or other system that 
     the Secretary may develop and maintain to receive 
     designations, statements, and reports in the forms required 
     or permitted under this paragraph is compatible with any 
     system that the Commission may develop and maintain.''.

     SEC. 508. POWER TO ISSUE SUBPOENA WITHOUT SIGNATURE OF 
                   CHAIRPERSON.

       Section 307(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 437d(a)(3)) is amended by striking ``, signed 
     by the chairman or the vice chairman,''.
                   TITLE VI--MISCELLANEOUS PROVISIONS

     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.

       This Act and the amendments made by this Act shall take 
     effect on January 1, 1999.

                               H.R. 2183

                   Offered by Mr. White of Washington

               (Amendment in the Nature of a Substitute)

       Amendment No. 16: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Independent Commission on 
     Campaign Finance Reform Act of 1998''.

     SEC. 2. ESTABLISHMENT AND PURPOSE OF COMMISSION.

       There is established a commission to be known as the 
     ``Independent Commission on Campaign Finance Reform'' 
     (referred to in this Act as the ``Commission''). The purposes 
     of the Commission are to study the laws relating to the 
     financing of political activity and to report and recommend 
     legislation to reform those laws.

     SEC. 3. MEMBERSHIP OF COMMISSION.

       (a) Composition.--The Commission shall be composed of 12 
     members appointed within 15 days after the date of the 
     enactment of this Act by the President from among individuals 
     who are not incumbent Members of Congress and who are 
     specially qualified to serve on the Commission by reason of 
     education, training, or experience.
       (b) Appointment.--
       (1) In general.--Members shall be appointed as follows:
       (A) 3 members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the Speaker of the House of Representatives.
       (B) 3 members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the majority leader of the Senate.
       (C) 3 members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the minority leader of the House of 
     Representatives.
       (D) 3 members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the minority leader of the Senate.
       (2) Failure to submit list of nominees.--If an official 
     described in any of the subparagraphs of paragraph (1) fails 
     to submit a list of nominees to the President during the 15-
     day period which begins on the date of the enactment of this 
     Act--
       (A) such subparagraph shall no longer apply; and
       (B) the President shall appoint 3 members (one of whom 
     shall be a political independent) who meet the requirements 
     described in subsection (a) and such other criteria as the 
     President may apply.
       (3) Political independent defined.--In this subsection, the 
     term ``political independent'' means an individual who at no 
     time after January 1992--
       (A) has held elective office as a member of the Democratic 
     or Republican party;
       (B) has received any wages or salary from the Democratic or 
     Republican party or from a Democratic or Republican party 
     office-holder or candidate; or
       (C) has provided substantial volunteer services or made any 
     substantial contribution to the Democratic or Republican 
     party or to a Democratic or Republican party office-holder or 
     candidate.
       (c) Chairman.--At the time of the appointment, the 
     President shall designate one member of the Commission as 
     Chairman of the Commission.
       (d) Terms.--The members of the Commission shall serve for 
     the life of the Commission.
       (e) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (f) Political Affiliation.--Not more than 4 members of the 
     Commission may be of the same political party.

     SEC. 4. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may, for the purpose of 
     carrying out this Act, hold hearings, sit and act at times 
     and places, take testimony, and receive evidence as the 
     Commission considers appropriate. In carrying out the 
     preceding sentence, the Commission shall ensure that a 
     substantial number of its meetings are open meetings, with 
     significant opportunities for testimony from members of the 
     general public.
       (b) Quorum.--Seven members of the Commission shall 
     constitute a quorum, but a lesser number may hold hearings. 
     The approval of at least 9 members of the Commission is 
     required when approving all or a portion of the recommended 
     legislation. Any member of the Commission may, if authorized 
     by the Commission, take any action which the Commission is 
     authorized to take under this section.

     SEC. 5. ADMINISTRATIVE PROVISIONS.

       (a) Pay and Travel Expenses of Members.--(1) Each member of 
     the Commission shall be paid at a rate equal to the daily 
     equivalent of the annual rate of basic pay payable for level 
     IV of the Executive Schedule under section 5315 of title 5, 
     United States Code, for each day (including travel time) 
     during which the member is engaged in the actual performance 
     of duties vested in the Commission.
       (2) Members of the Commission shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       (b) Staff Director.--The Commission shall, without regard 
     to section 5311(b) of title 5, United States Code, appoint a 
     staff director, who shall be paid at the rate of basic pay 
     payable for level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.
       (c) Staff of Commission; Services.--
       (1) In general.--With the approval of the Commission, the 
     staff director of the Commission may appoint and fix the pay 
     of additional personnel. The Director may make such 
     appointments without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service, and any personnel so appointed may be paid without 
     regard to the provisions of chapter 51 and subchapter III of 
     chapter 53 of that title relating to classification and 
     General Schedule pay rates, except that an individual so 
     appointed may not receive pay in excess of the maximum annual 
     rate of basic pay payable for grade GS-15 of the General 
     Schedule under section 5332 of title 5, United States Code.
       (2) Experts and consultants.--The Commission may procure by 
     contract the temporary or intermittent services of experts or 
     consultants pursuant to section 3109 of title 5, United 
     States Code.

[[Page H3355]]

     SEC. 6. REPORT AND RECOMMENDED LEGISLATION.

       (a) Report.--Not later than the expiration of the 180-day 
     period which begins on the date on which the second session 
     of the One Hundred Fifth Congress adjourns sine die, the 
     Commission shall submit to the President, the Speaker and 
     minority leader of the House of Representatives, and the 
     majority and minority leaders of the Senate a report of the 
     activities of the Commission.
       (b) Recommendations; Draft of Legislation.--The report 
     under subsection (a) shall include any recommendations for 
     changes in the laws (including regulations) governing the 
     financing of political activity, including any changes in the 
     rules of the Senate or the House of Representatives, to which 
     9 or more members of the Commission may agree, together with 
     drafts of--
       (1) any legislation (including technical and conforming 
     provisions) recommended by the Commission to implement such 
     recommendations; and
       (2) any proposed amendment to the Constitution recommended 
     by the Commission as necessary to implement such 
     recommendations, except that if the Commission includes such 
     a proposed amendment in its report, it shall also include 
     recommendations (and drafts) for legislation which may be 
     implemented prior to the adoption of such proposed amendment.
       (c) Goals of Recommendations and Legislation.--In making 
     recommendations and preparing drafts of legislation under 
     this section, the Commission shall consider the following to 
     be its primary goals:
       (1) Encouraging fair and open Federal elections which 
     provide voters with meaningful information about candidates 
     and issues.
       (2) Eliminating the disproportionate influence of special 
     interest financing of Federal elections.
       (3) Creating a more equitable electoral system for 
     challengers and incumbents.

     SEC. 7. EXPEDITED CONGRESSIONAL CONSIDERATION OF LEGISLATION.

       (a) In General.--If any legislation is introduced the 
     substance of which implements a recommendation of the 
     Commission submitted under section 6(b) (including a joint 
     resolution proposing an amendment to the Constitution), 
     subject to subsection (b), 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 
     the legislation 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 House Oversight 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 Rules 
     and Administration 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 recommendation involved is submitted under section 
     6(b).
       (3) Notwithstanding subsection (d)(2) of section 2908 of 
     such Act--
       (A) debate on the legislation in the House of 
     Representatives, and on all debatable motions and appeals in 
     connection with the legislation, shall be limited to not more 
     than 10 hours, divided equally between those favoring and 
     those opposing the legislation;
       (B) debate on the legislation in the Senate, and on all 
     debatable motions and appeals in connection with the 
     legislation, shall be limited to not more than 10 hours, 
     divided equally between those favoring and those opposing the 
     legislation; and
       (C) debate in the Senate on any single debatable motion and 
     appeal in connection with the legislation shall be limited to 
     not more than 1 hour, divided equally between the mover and 
     the manager of the bill (except that in the event the manager 
     of the bill is in favor of any such motion or appeal, the 
     time in opposition thereto shall be controlled by the 
     minority leader or his designee), and the majority and 
     minority leader may each allot additional time from time 
     under such leader's control to any Senator during the 
     consideration of any debatable motion or appeal.

     SEC. 8. TERMINATION.

       The Commission shall cease to exist 90 days after the date 
     of the submission of its report under section 6.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission 
     such sums as are necessary to carry out its duties under this 
     Act.
       Amend the title so as to read: ``A bill to establish the 
     Independent Commission on Campaign Finance Reform to 
     recommend reforms in the laws relating to the financing of 
     political activity.''.