[Congressional Record Volume 145, Number 8 (Tuesday, January 19, 1999)]
[Senate]
[Pages S422-S428]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself, Mr. Feingold, Mr. Thompson, Mr. 
        Levin, Ms. Collins, Mr. Lieberman, Ms. Snowe, Mr. Wellstone, 
        Mr. Jeffords, Mr. Durbin, Mr. Schumer, Mr. Reid, Mr. Bryan, Mr. 
        Sarbanes, Mr. Robb, Mr. Dorgan, Mr. Moynihan, Mr. Kerry, Mr. 
        Kerrey, Mr. Cleland, Mr. Leahy, Mr. Bayh, Mrs. Feinstein, Mrs. 
        Boxer, Mr. Hollings, Mr. Graham, Mr. Johnson, and Mr. Chafee):
  S. 26. A bill entitled the ``Bipartisan Campaign Reform Act of 
1999''; to the Committee on Rules and Administration.


                 bipartisan campaign reform act of 1999

  Mr. FEINGOLD. Mr. President, the American campaign finance system is 
manifestly corrupt. So we are back. And here we will return until 
America's citizens regain dominion over their government. It is my 
great pleasure to join Sen. John McCain to once again introduce a 
bipartisan campaign finance reform bill in the United States Senate. 
This is the third Congress in which we have taken up this fight 
together. I want to thank my friend and colleague Senator McCain for 
his tireless devotion to this issue and his continued willingness to 
defy the leadership of his party to press it. It will take great effort 
to achieve consensus and pass this legislation. But I truly do believe 
that we can make a breakthrough this year, and the reintroduction of 
the McCain-Feingold bill is the first step toward making that happen.
  Mr. President, our democracy is sick. The corrupting influence of big 
money is taking a daily toll on our work here in the Congress and on 
the confidence of the American people in our ability to do that work 
fairly and in their interests. The future of our country is truly at 
stake in this fight for reform, and that is why, despite the setbacks 
we have suffered in the last two Congress, despite our inability in the 
last two Congresses to overcome filibusters by a minority of this body, 
we are back on the floor today. On the first day that bills can be 
introduced in the United States Senate, I am here to serve notice that 
reform is at the top of the list of things that we must do in this 
Congress. And I commit to the American people, and to my constituents 
in Wisconsin who reelected me to do precisely this job, that I will 
fight for reform throughout this year and the next year, if need be, 
until we win.
  Let me take a moment, Mr. President, to review what the McCain-
Feingold bill tries to accomplish. First and foremost, we ban soft 
money--the unlimited contributions that corporate, labor, and very 
wealthy individual donors can now give to the political parties. We 
must bring back some sanity to the campaign finance system by making 
the parties and donors live once again within the rules that the 
Congress passed back in the 1970's after the Watergate era. Perhaps 
some of those rules need to be updated, but throwing the rules out is 
not an option. The potential for corruption of our legislative process 
is too great. I will return to the issue of prohibiting soft money in a 
moment, because it is central to the goals of our bill.
  Mr. President, this bill also includes the amendment dealing with 
abuses of ``issue advocacy'' proposed by Senator Snowe of Maine and 
Senator Jeffords of Vermont and adopted by the Senate last year during 
debate on our bill. The Snowe-Jeffords amendment is a balanced approach 
to the ``phony issue ad'' problem that prohibits corporations and 
unions from purchasing television and radio advertisements within the 
last 2 months of a campaign if those ads refer to a clearly identified 
candidate. It is designed to prevent

[[Page S423]]

corporate and union treasury money, which has been banned from federal 
elections since early in this century, from making its way back into 
the elections in the form of advertisements that pretend to be about 
issues, but instead are about elections.
  Advocacy groups, on the other hand, are permitted to purchase what 
the bill calls ``electioneering communications,'' as long as they 
disclose their expenditures and the major donors to the effort and take 
steps to prevent the use of corporate and union treasury money for the 
ads. Mr. President, we worked long and hard to perfect this amendment 
last year, to make sure that it is constitutional, and that it will be 
effective in combating what has become a very serious subterfuge 
engaged in by entities that plainly want to influence elections but 
don't want to abide by the election laws. It is a crucial piece of the 
campaign finance reform puzzle, and we are proud to have the support of 
Senators Snowe and Jeffords for our effort and to include their 
proposal in our bill.
  The McCain-Feingold bill also takes a further step in addressing the 
spending of unions in elections by codifying the so-called Beck 
decision. Under our bill, non-union members who are required to pay 
agency fees to unions under their state laws will be able to demand an 
accounting of the use of their fees, and to prevent those fees from 
being spent for electoral purposes. This provision does not go as far 
as some of our colleagues might like, but it is a fair and balanced 
provision that recognizes the need to tread lightly on this issue to 
maintain bipartisan support for the bill.
  The bill also contains important provisions designed to improve 
enforcement and disclosure under our campaign finance laws. It requires 
electronic filing and posting of campaign finance information on the 
Internet to make sure that the public can quickly and easily determine 
who the major contributors are to candidates and parties. It doubles 
the penalties for ``knowing and willful'' violations of Federal 
election laws. It provides for more timely disclosure of independent 
expenditures. It requires campaigns to collect all required contributor 
information before depositing checks. And it permits the FEC to conduct 
random audits at the end of a campaign to ensure compliance with the 
Federal election laws.
  Our bill also requires political advertisements to carry a disclaimer 
identifying who is responsible for the content of the campaign ad; and 
it bars Members of Congress from sending out taxpayer-financed franked 
mass mailings during the calendar year of their election.
  It also addresses two important areas where we have learned in the 
past few years that the law is simply not clear enough or strong 
enough. Our bill makes it clear that it is unlawful to raise or solicit 
campaign contributions on Federal property, including the White House 
and the congressional office buildings. And it makes it clear that 
contributions from foreign governments and foreign nationals are 
prohibited in Federal, State and local elections, including donations 
of soft money.
  Mr. President, this fight is a fight for the soul and the survival of 
our American democracy. This democracy cannot survive without the 
confidence of the people in the integrity of the legislative and the 
electoral process. The prevalence--no--the dominance--of money in our 
system of elections and our legislature will in the end cause them to 
crumble. If we don't take steps to clean up this system it ultimately 
will consume us along with our finest American ideals.
  We are now engaged in an historic impeachment trial, in which we are 
asked to determine as jurors whether the President has committed ``high 
crimes and misdemeanors'' and should be removed from office. The 
American people are divided on this question.
  But the American people do think it's a crime that the tobacco 
companies can use money to block a bill to curtail teen smoking. They 
do think it's a crime that insurance companies can use money to block 
desperately needed health care reform. They do think it's a crime that 
telecommunication companies use money to force a bill through Congress 
that's supposed to increase competition and decrease prices, but leads 
to cable rates that keep on rising and rising. And they do think it's a 
crime that corporations and unions are able to give unlimited soft 
money contributions to the political parties to advance their narrow 
special interests.
  They think it's a crime. But here in Washington it is business as 
usual--until we manage to pass meaningful campaign finance reform.
  Let me be clear Mr. President, I'm not suggesting that any individual 
Member of Congress is corrupt. I don't know that any Member of this 
body has ever traded a vote for a contribution. But while Members are 
not corrupt, the system is riddled with corruption. It is only human to 
want to help those who have helped you get elected or reelected, to 
agree to the meeting, to take the phone call, to allow the opportunity 
to be persuaded by those who have given money. It is true of the 
parties, and it is true of the Members, even those who seek always to 
cast their votes on the merits. The result is that people who don't 
have money don't get heard. And in the end, those who get heard get 
their way.
  Mr. President, as you know, I won a very hard fought campaign last 
year in which soft money and issue ads and campaign spending were much 
discussed issues. I learned a lot from that campaign, and my experience 
has made me even more certain that the system we now live under must be 
changed and can be changed.
  As we once again take up this charge, I can tell you how enjoyable 
and rewarding it can be to run a campaign where endless fundraising is 
not part of your daily routine. And how it is possible to run a decent 
campaign without getting down in this soft money swamp.
  Mr. President, we don't need to point fingers at one another, we just 
have to rise above politics and do the right thing by the American 
people. We must clean up our own house, Mr. President. We cannot 
continue to ignore the corruption in our midst, the cancer that is 
eating the heart out of the great American compact of trust and faith 
between the people and their elected representatives.
  We know that unlimited soft money contributions make a mockery of our 
election laws and threaten the fairness of the legislative process. We 
know that phony issue ads paid for with unlimited corporate and union 
funds undermine the ability of citizens to understand who is 
bankrolling the candidates and why. We can find bipartisan solutions to 
these problems that respect all legitimate First Amendment rights if we 
are willing to put partisan political advantage aside and sit down and 
work it out.
  Senator McCain and I are ready--we have been ready ever since we 
introduced our bill--to make changes to our bill that will bring new 
supporters on board and get us past the 60 vote threshold that the 
Senate rules have placed in our way, so long as we stay true to the 
goal of a cleaner, fairer, system in which money will no longer 
dominate.
  We will all be proud of the results if we can do that Mr. President. 
And the American people will be proud of us. So I look forward to 
working with Senator McCain and will all my colleagues who want to give 
the American people a campaign finance system that will protect and 
nurture our democracy as we enter the 21st century.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 26

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Bipartisan 
     Campaign Reform Act of 1999''.
       (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.

[[Page S424]]

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

               Subtitle A--Electioneering Communications

Sec. 201. Disclosure of electioneering communications.
Sec. 202. Coordinated communications as contributions.
Sec. 203. Prohibition of corporate and labor disbursements for 
              electioneering communications.

          Subtitle B--Independent and Coordinated Expenditures

Sec. 211. Definition of independent expenditure.
Sec. 212. Civil penalty.
Sec. 213. Reporting requirements for certain independent expenditures.
Sec. 214. Independent versus coordinated expenditures by party.
Sec. 215. Coordination with candidates.

                         TITLE III--DISCLOSURE

Sec. 301. Filing of reports using computers and facsimile machines; 
              filing by Senate candidates with Commission.
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. 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 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 (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, if 
     the campaign activity is not a Federal election activity 
     described in subparagraph (A);
       ``(ii) a contribution to a candidate for State or local 
     office, if 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, 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 Treasury 
     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 in connection with an election for Federal office, 
     including funds for any Federal election activity, unless the 
     funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(2) Exceptions.--
       ``(A) 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 in connection with such 
     election for 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.
       ``(B) 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 213) 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 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

[[Page S425]]

     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) Repeal of 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
               Subtitle A--Electioneering Communications

     SEC. 201. DISCLOSURE OF ELECTIONEERING COMMUNICATIONS.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following new 
     subsection:
       ``(d) Additional Statements on Electioneering 
     Communications.--
       ``(1) Statement required.--Every person who makes a 
     disbursement for electioneering communications in an 
     aggregate amount in excess of $10,000 during any calendar 
     year shall, within 24 hours of each disclosure date, file 
     with the Commission a statement containing the information 
     described in paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any entity sharing or exercising direction 
     or control over the activities of such person, and of the 
     custodian of the books and accounts of the person making the 
     disbursement.
       ``(B) The State of incorporation and the principal place of 
     business of the person making the disbursement.
       ``(C) The amount of each disbursement during the period 
     covered by the statement and the identification of the person 
     to whom the disbursement was made.
       ``(D) The elections to which the electioneering 
     communications pertain and the names (if known) of the 
     candidates identified or to be identified.
       ``(E) If the disbursements were paid out of a segregated 
     account to which only individuals could contribute, the names 
     and addresses of all contributors who contributed an 
     aggregate amount of $500 or more to that account during the 
     period beginning on the first day of the preceding calendar 
     year and ending on the disclosure date.
       ``(F) If the disbursements were paid out of funds not 
     described in subparagraph (E), the names and addresses of all 
     contributors who contributed an aggregate amount of $500 or 
     more to the organization or any related entity during the 
     period beginning on the first day of the preceding calendar 
     year and ending on the disclosure date.
       ``(G) Whether or not any electioneering communication is 
     made in coordination, cooperation, consultation, or concert 
     with, or at the request or suggestion of, any candidate or 
     any authorized committee, any political party or committee, 
     or any agent of the candidate, political party, or committee 
     and if so, the identification of any candidate, party, 
     committee, or agent involved.
       ``(3) Electioneering communication.--For purposes of this 
     subsection--
       ``(A) In general.--The term `electioneering communication' 
     means any broadcast from a television or radio broadcast 
     station which--
       ``(i) refers to a clearly identified candidate for Federal 
     office;
       ``(ii) is made (or scheduled to be made) within--

       ``(I) 60 days before a general, special, or runoff election 
     for such Federal office; or
       ``(II) 30 days before a primary or preference election, or 
     a convention or caucus of a political party that has 
     authority to nominate a candidate, for such Federal office; 
     and

       ``(iii) is broadcast from a television or radio broadcast 
     station whose audience includes the electorate for such 
     election, convention, or caucus.
       ``(B) Exceptions.--Such term shall not include--
       ``(i) communications appearing in a news story, commentary, 
     or editorial distributed through the facilities of any 
     broadcasting station, unless such facilities are owned or 
     controlled by any political party, political committee, or 
     candidate; or
       ``(ii) communications which constitute expenditures or 
     independent expenditures under this Act.
       ``(4) Disclosure date.--For purposes of this subsection, 
     the term `disclosure date' means--
       ``(A) the first date during any calendar year by which a 
     person has made disbursements for electioneering 
     communications aggregating in excess of $10,000; and
       ``(B) any other date during such calendar year by which a 
     person has made disbursements for electioneering 
     communications aggregating in excess of $10,000 since the 
     most recent disclosure date for such calendar year.
       ``(5) Contracts to disburse.--For purposes of this 
     subsection, a person shall be treated as having made a 
     disbursement if the person has contracted to make the 
     disbursement.
       ``(6) Coordination with other requirements.--Any 
     requirement to report under this subsection shall be in 
     addition to any other reporting requirement under this Act.''

     SEC. 202. COORDINATED COMMUNICATIONS AS CONTRIBUTIONS.

       Section 315(a)(7)(B) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 441a(a)(7)(B)) is amended by inserting 
     after clause (ii) the following:
       ``(iii) if--

       ``(I) any person makes, or contracts to make, any payment 
     for any electioneering communication (within the meaning of 
     section 304(d)(3)); and
       ``(II) such payment is coordinated with a candidate or an 
     authorized committee of such candidate, a Federal, State, or 
     local political party or committee thereof, or an agent or 
     official of any such candidate, party, or committee;

     such payment or contracting shall be treated as a 
     contribution to such candidate and as an expenditure by such 
     candidate; and''.

     SEC. 203. PROHIBITION OF CORPORATE AND LABOR DISBURSEMENTS 
                   FOR ELECTIONEERING COMMUNICATIONS.

       (a) In General.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by 
     inserting ``or for any applicable electioneering 
     communication'' before ``, but shall not include''.
       (b) Applicable Electioneering Communication.--Section 316 
     of such Act is amended by adding at the end the following:
       ``(c) Rules Relating to Electioneering Communications.--
       ``(1) Applicable electioneering communication.--For 
     purposes of this section, the term `applicable electioneering 
     communication' means an electioneering communication (within 
     the meaning of section 304(d)(3)) which is made by--
       ``(A) any entity to which subsection (a) applies other than 
     a section 501(c)(4) organization; or
       ``(B) a section 501(c)(4) organization from amounts derived 
     from the conduct of a trade or business or from an entity 
     described in subparagraph (A).
       ``(2) Special operating rules.--For purposes of paragraph 
     (1), the following rules shall apply:
       ``(A) An electioneering communication shall be treated as 
     made by an entity described in paragraph (1)(A) if--
       ``(i) the entity described in paragraph (1)(A) directly or 
     indirectly disburses any amount for any of the costs of the 
     communication; or
       ``(ii) any amount is disbursed for the communication by a 
     corporation or organization or a State or local political 
     party or committee thereof that receives anything of value 
     from the entity described in paragraph (1)(A), except that 
     this clause shall not apply to any communication the costs of 
     which are defrayed entirely out of a segregated account to 
     which only individuals can contribute.
       ``(B) A section 501(c)(4) organization that derives amounts 
     from business activities or from any entity described in 
     paragraph (1)(A) shall be considered to have paid for any 
     communication out of such amounts unless such organization 
     paid for the communication out of a segregated account to 
     which only individuals can contribute.
       ``(3) Definitions and rules.--For purposes of this 
     subsection--
       ``(A) the term `section 501(c)(4) organization' means--
       ``(i) an organization described in section 501(c)(4) of the 
     Internal Revenue Code of 1986 and exempt from taxation under 
     section 501(a) of such Code; or
       ``(ii) an organization which has submitted an application 
     to the Internal Revenue Service for determination of its 
     status as an organization described in clause (i); and
       ``(B) a person shall be treated as having made a 
     disbursement if the person has contracted to make the 
     disbursement.
       ``(4) Coordination with internal revenue code.--Nothing in 
     this subsection shall be construed to authorize an 
     organization exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986 from carrying out any activity 
     which is prohibited under such Code.''
          Subtitle B--Independent and Coordinated Expenditures

     SEC. 211. 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.--The term `independent 
     expenditure' means an expenditure by a person--
       ``(A) expressly advocating the election or defeat of a 
     clearly identified candidate; and
       ``(B) 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.''

     SEC. 212. 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:

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       ``(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. 213. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 201) is amended--
       (1) in subsection (c)(2), by striking the undesignated 
     matter after subparagraph (C); and
       (2) by adding at the end the following:
       ``(e) 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. 214. 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, on or after the date 
     described in subparagraph (A), has not and shall not make any 
     independent expenditure with respect to the candidate during 
     the same election cycle.
       ``(C) Application.--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 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. 215. 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) coordinated activity (as defined in subparagraph 
     (C)).''; and
       (B) by adding at the end the following:
       ``(C) `Coordinated activity' means anything of value 
     provided by a person in coordination with a candidate, an 
     agent of the candidate, or the political party of the 
     candidate or its agent 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 includes any of the following:
       ``(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, the 
     political party of the candidate, or an agent acting on 
     behalf of a candidate, authorized committee, or the political 
     party of the candidate.
       ``(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 policy making or advisory 
     position with the candidate's campaign or has participated in 
     formal strategic or formal policymaking discussions (other 
     than any discussion treated as a lobbying contact under the 
     Lobbying Disclosure Act of 1995 in the case of a candidate 
     holding Federal office or as a similar lobbying activity in 
     the case of a candidate holding State or other elective 
     office) 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 (including services provided through a political 
     committee of the candidate's political party) 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 directly 
     participated in fundraising activities with the candidate or 
     in the solicitation or receipt of contributions on behalf of 
     the candidate.
       ``(viii) A payment made by a person who has communicated 
     with the candidate or an agent of the candidate (including a 
     communication through a political committee of the 
     candidate's political party) 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.
       ``(ix) The provision of in-kind professional services or 
     polling data (including services or data provided through a 
     political committee of the candidate's political party) to 
     the candidate or candidate's agent.
       ``(x) A payment made by a person who has engaged in a 
     coordinated activity with a candidate described in clauses 
     (i) through (ix) for a communication that clearly refers to 
     the candidate or the candidate's opponent and is for the 
     purpose of influencing that candidates's election (regardless 
     of whether the communication is express advocacy).
       ``(D) For purposes of subparagraph (C), the term 
     `professional services' means polling, media advice, 
     fundraising, campaign research or direct mail (except for 
     mailhouse services solely for the distribution of voter 
     guides as defined in section 431(20)(B)) services in support 
     of a candidate's pursuit of nomination for election, or 
     election, to Federal office.
       ``(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:

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       ``(B) a coordinated activity, as described in section 
     301(8)(C), 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; FILING BY SENATE CANDIDATES WITH 
                   COMMISSION.

       (a) Use of Computer and Facsimile Machine.--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.''.
       (b) Senate Candidates File With Commission.--Title III of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
     seq.) is amended--
       (1) in section 302, by striking subsection (g) and 
     inserting the following:
       ``(g) Filing With the Commission.--All designations, 
     statements, and reports required to be filed under this Act 
     shall be filed with the Commission.''; and
       (2) in section 304--
       (A) in subsection (a)(6)(A), by striking ``the Secretary 
     or''; and
       (B) in the matter following subsection (c)(2), by striking 
     ``the Secretary or''.

     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(a)) 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 of a political party 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.--An activity is described in this paragraph 
     if it 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; or
       ``(C) an activity described in subparagraph (B) or (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.) is amended by adding at the end the following:
       ``(20) 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.

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       ``(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: `________________