[Congressional Record Volume 147, Number 36 (Monday, March 19, 2001)]
[Senate]
[Pages S2421-S2428]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CAMPAIGN FINANCE REFORM

  Mr. SPECTER. Mr. President, I have sought recognition in morning 
business to reference legislation on campaign finance reform which I 
originally offered on September 18, 1997, as S. 1191. I refer to it 
today because there are a number of specific provisions which may form 
the basis for amendments to S. 27. I wanted to give my colleagues 
express notice that I might be offering such.
  My bill does six things: First, it eliminates soft money; second, 
defines express advocacy; third, requires affidavits for independent 
expenditures; fourth, adopts the Maine standby public financing 
provision; fifth, eliminates foreign transactions which funnel money 
into U.S. campaigns; sixth, limits and requires reporting of 
contributions to legal defense funds.
  A major portion of debate will occur on the issue of soft money. The 
Supreme Court of the United States in Buckley v. Valeo defined advocacy 
and issue ads in a way which has been very perplexing and very 
troubling, and in Buckley v. Valeo the Supreme Court said:

       In order to preserve the provision against invalidation on 
     vagueness grounds, section 6608(e)(1) must be construed to 
     apply only to expenditures for communications that in express 
     terms advocate the election or defeat of a clearly identified 
     candidate for Federal office.

  And then the Supreme Court went on to amplify what express advocacy 
meant, saying vote for X or vote against X.
  There have been decisions which have said that it is not mandatory to 
have a statement ``vote for'' or ``vote against'' in order to satisfy 
the requirements of express advocacy. It is my view that in the ensuing 
25 years we have seen advertisements which were clear cut advocacy ads 
which did not contain any

[[Page S2422]]

magic words such as ``vote for'' or ``vote against.'' I would give two 
illustrations--one from the Democratic National Committee and a second 
from the Republican National Committee in the 1996 Presidential 
election.
  A Democratic National Committee television commercial said:

       American values. Do our duty to our parents. President 
     Clinton protects Medicare. The Dole-Gingrich budget tried to 
     cut Medicare $270 billion. Protect families. President 
     Clinton cut taxes for millions of working families. The Dole-
     Gingrich budget tried to raise taxes on eight million of 
     them. Opportunity. President Clinton proposes tax breaks 
     for tuition. The Dole-Gingrich budget tried to slash 
     college scholarships. Only President Clinton's plan meets 
     our challenges. Protect our values.

  Inexplicably, this has been viewed as an issue ad, but nothing could 
be clearer on its face than that it advocates the election of then-
President Clinton and the defeat of then-candidate Senator Dole.
  Then compare a Republican National Committee ad. The announcer comes 
on and says:

       Compare the Clinton rhetoric with the Clinton record.

  Then President Clinton comes on in a video tape saying:

       We need to end welfare as we know it.

  Then the announcer comes back and says:

       But he vetoed welfare reform not once but twice. He vetoed 
     work requirements for the able-bodied. He vetoed putting time 
     limits on welfare, and Clinton still supports giving welfare 
     benefits to illegal immigrants. The Clinton record hasn't 
     matched the Clinton record.

  Then President Clinton's face comes on and he says on a video tape:

       Fool me once, shame on you. Fool me twice, shame on me.

  Then the announcer comes on and says:

       Tell President Clinton you won't be fooled again.

  Here again the other side of the coin--inexplicably interpreted to be 
an issue ad and not an advocacy ad. In my judgment, Mr. President, 
those ads clearly constitute advocacy. And when the Supreme Court in 
Buckley v. Valeo said they needed to preserve the act against 
invalidation on vagueness grounds, I would suggest that what has 
happened in the intervening 25 years is that advocacy ads may now be 
defined legislatively. And as Justice Jackson said in one of his famous 
comments, when there are close issues and there is a congressional 
declaration, that is weighed very heavily by the Court on the 
consideration even of constitutional issues. The Supreme Court has 
ruled in Buckley v. Valeo on the critical issue of coordination, saying 
that when ``expenditures are controlled by or coordinated with the 
candidate and his campaign,'' that such control or coordinated 
expenditures are treated as contributions rather than expenditures.
  So the Court said if you have coordination on soft money, it 
constitutes a contribution and would be governed by the limitations of 
the Federal election campaign law. But what has occurred is exactly the 
opposite. In a 6-0 vote on December 10, 1998, the Federal Election 
Commission rejected its auditor's recommendation that the 1996 Clinton 
and Dole campaigns repay $17.7 million and $7 million, respectively, 
because the national committee parties had closely coordinated their 
soft money issue.
  Here we have the Supreme Court saying that where there is 
coordination, they count, but you have coordination and the rule is 
flouted by the Federal Election Commission, which again illustrates the 
need for a modification of what is advocacy, what is coordination, and 
what ought to be subject to campaign finance limitations.
  In Buckley v. Valeo, the Supreme Court ruled that:

       Even a significant interference with protected rights of 
     political association may be sustained if the State 
     demonstrates a sufficiently important interest and employs 
     means closely drawn to avoid unnecessary abridgment of 
     associational freedoms.

  Then the Supreme Court goes on to talk about values to be preserved 
on the prevention of corruption and the appearance of corruption.
  It is obvious at this stage, some 25 years after Buckley v. Valeo, 
with the public indignation as to what has happened with the avalanche 
of soft money and with the concurrence of much official action in a 
close time sequence with the avalanche of enormous sums of soft money, 
so that when the Supreme Court talks about the appearance of 
corruption, which of course is different from corruption--it is very 
difficult to prove a bribe, very difficult to prove a quid pro quo to 
establish the existence of corruption--but when the Court recognizes 
the ``appearance of corruption'' as a factor which justifies limitation 
on speech, then, with the 25 years of experience, it is my view that 
legislation directed at soft money and directed at a modification of 
the definitions of advocacy and issue ads would be upheld as being 
constitutional.
  The legislation which I am introducing today with respect to soft 
money would prohibit the national committees or political parties from 
soliciting or receiving any contributions not subject to the provisions 
and caps of the Federal Election Campaign Act and provides further that 
State party committee expenditures that may influence the outcome of a 
Federal election may be made only from funds subject to the limitations 
and prohibitions imposed by Federal law.
  The bill requires affidavits for independent expenditures for the 
individual making the so-called independent expenditure and affidavits 
from the candidate, the campaign manager, and the campaign treasurer 
that, in fact, those so-called independent expenditures were not made 
in coordination with the campaign. There is obviously a great deal more 
attention paid on individual conduct where that conduct is subject to 
an affidavit which is prosecutable under the substantial penalties for 
perjury. There is continuing suspicion that these so-called independent 
expenditures are, in fact, not independent.
  The Supreme Court, in Buckley v. Valeo, has upheld independent 
expenditures saying that freedom of speech entitles someone to spend as 
much money as he or she may choose as long as it is not in coordination 
with the candidate or the campaign. In order to take a significant step 
forward in ascertaining and ensuring that so-called independent 
expenditures are really independent, my legislation calls for that kind 
of an affidavit.
  The provision relating to the Maine standby public financing 
provision is an interesting one, which provides for public funding when 
an individual spends a phenomenal sum of money for his or her own 
campaign. It is an open secret that individuals are prepared to spend 
virtually unlimited sums of money, as illustrated by the past election, 
or by prior elections. I oppose public financing generally, but it 
seems to me that where that sort of excessive expenditure is made, 
there ought to be public financing which would come into play to match 
that enormous outpouring of an individual's wealth. If public financing 
were available, it is obvious that the individual wouldn't be inclined 
to spend all of his or her own money if it were to be matched by public 
funding. In a day when seats in the Senate are subject to purchase, the 
Maine standby provision is one which ought to be adopted as a matter of 
Federal law.
  We are about to embark on the consideration of the McCain-Feingold, 
S. 27, at 1 o'clock. The provision of this legislation which I am 
submitting now, which, as I say, had been submitted on September 18, 
1997, as then S. 1191, contains a number of revisions which are 
possibilities for my offering as amendments to S. 27. There is no doubt 
that we are going to become very deeply involved in the constitutional 
issue on what is an issue ad and what is an advocacy ad and how we deal 
with soft money.
  In the 1996 Presidential elections, the line was blurred beyond 
recognition between party and candidate activities. There is 
substantial evidence that soft money was spent illegally during the 
1996 campaign by both parties. According to a November 18, 1996, 
article in Time magazine, President Clinton's media strategists 
collaborated in the creation of a DNC television commercial. The 
article describes a cadre of Clinton-Gore advisors, including Dick 
Morris, working side by side with DNC operatives to craft the DNC 
advertisement which extolled the President's accomplishments and 
criticized Republican policies. Republicans did the same.
  Such cooperation constitutes violation of the Federal Election 
Campaign Act [FECA] which provides:


[[Page S2423]]


       Expenditures made by any person in cooperation, 
     consultation, or concert, with, or at the request or 
     suggestion of, a candidate, his authorized political 
     committees, or their agents, shall be considered to be a 
     contribution to such candidate. 2 U.S.C. 441a(a)(7)(B)(1)

  Thus, if the alleged cooperation between the Clinton/Gore campaign 
and the DNC took place, then all of the money spent on those DNC 
advertisements constituted contributions to the Clinton campaign. Under 
FECA, such contributions would have to be reported upon receipt and 
would have to be included when calculating the campaign's compliance 
with FECA's strict contribution and expenditure limits. The failure to 
treat the expenditures as contributions would be a violation of FECA, 
and the knowing and willful failure to treat the expenditures as 
contributions would be a criminal violation of FECA.
  There are indications that the Clinton/Gore campaign advisors did 
realize they were violating the law at the time. The Time article 
quotes one as saying, ``If the Republicans keep the Senate, they're 
going to subpoena us.''
  The content of the DNC and RNC advertisements appears to have 
violated Federal election law. When an entity engages in issues 
advocacy to promote a particular policy, it is exempt from the 
limitation of FECA and can fund these activities from any source. When 
an entity engages in express advocacy on behalf of a particular 
candidate, it is subject to the limitations of FECA and is not 
permitted to fund such activities with soft money. Where the DNC and 
RNC advertisements did contain express advocacy, and funded these 
advertisements with soft money, then these committees violated FECA.
  The FEC defines ``express advocacy'' as follows:

       Communications using phrases such as ``vote for 
     President,'' ``reelect your Congressman,'' ``Smith for 
     Congress,'' or language which, when taken as a whole and with 
     limited reference to external events, can have no other 
     reasonable meaning than to urge the election or defeat of a 
     clearly identified federal candidate. 11 CFR 100.22

  In my judgment, both the DNC and RNC television advertisement crossed 
the line from issues advocacy to express advocacy. While the DNC and 
RNC ads did not use the words ``Vote for Clinton'' or ``Dole for 
President,'' these advertisements certainly urged the election of one 
candidate and the defeat of another. For example, the following is the 
script of a widely broadcast DNC television commercial:

       American values. Do our duty to our parents. President 
     Clinton protects Medicare. The Dole/Gingrich budget tried to 
     cut Medicare $270 billion. Protect families. President 
     Clinton cut taxes for millions of working families. The Dole/
     Gingrich budget tried to raise taxes on eight million of 
     them. Opportunity. President Clinton proposes tax breaks for 
     tuition. The Dole/Gingrich budget tried to slash college 
     scholarships. Only President Clinton's plan meets our 
     challenges, protects our values.

  Does this advertisement convey any core message other than urging us 
to vote for President Clinton?
  The RNC ads similarly crossed the line into express advocacy. The 
following is the script of a widely broadcast RNC television 
commercial:

       (Announcer) Compare the Clinton rhetoric with the Clinton 
     record.
       (Clinton) ``We need to end welfare as we know it.''
       (Announcer) But he vetoed welfare reform not once, but 
     twice. He vetoed work requirements for the able-bodied. He 
     vetoed putting time limits on welfare. And Clinton still 
     supports giving welfare benefits to illegal immigrants. The 
     Clinton rhetoric hasn't matched the Clinton record.
       (Clinton) ``Fool me once, shame on you. Fool me twice, 
     shame on me.''
       (Announcer) Tell President Clinton you won't be fooled 
     again.

  Similarly, the Democrats, through their shared use of campaign 
consultants such as Dick Morris for Clinton-Gore 1996 and the 
Democratic National Committee, crossed the line into illegal 
contributions on television advertisements.
  There has been substantial information in the public domain about the 
President's personal activities in preparing television commercials for 
the 1996 campaign. The activity of the President has been documented in 
a book by Dick Morris and in public statements by former Chief of 
Staff, Leon Panetta. There is no doubt--and the Attorney General 
conceded this in oversight hearings by the Judiciary Committee on April 
30, 1997--that there would be a violation of the Federal election law 
if, and when the President prepared campaign commercials that were 
express advocacy commercials contrasted with issue advocacy 
commercials.
  This bill will end the charade by providing a clear-cut statutory 
definition of express advocacy wherever the name or likeness of a 
candidate appears with language which praises or criticizes that 
candidate.
  This bill would put teeth into the law to make independent 
expenditures truly independent. Current law requires political 
committees or individuals to file reports quarterly until the end of a 
campaign and to report expenditures of more than $1,000 within 24 hours 
during the final 20 days of the campaign. This legislation would 
require reporting for independent expenditures of $10,000 or more 
within 24 hours during the last 3 months of a campaign. This bill would 
require the individual making the independent expenditure or the 
treasurer of the committee making the independent expenditure to take 
and file an affidavit with the FEC that the expenditures were not 
coordinated with the candidate or his-her committee. Then, the Federal 
Election Commission would notify within 48 hours the candidate, 
campaign treasurer, and campaign manager of that independent 
expenditure. Those individuals would then have 48 hours to take and 
file affidavits with the FEC that the expenditures were not coordinated 
with the candidate or his/her committees.
  Taking such affidavits coupled with the penalty for perjury would be 
significant steps to preclude illegal coordination.
  Anyone who watched the Governmental Affairs hearings in 1997 knows 
the alarming role of illegal foreign contributions in our 1996 
campaigns. This legislation would strengthen the existing law to better 
prevent transactions which effectively fund domestic political 
campaigns with foreign financing schemes.
  Under current law, it is illegal for a foreign national to contribute 
money or anything of value, including loan guarantees, either directly 
or indirectly through another person, in connection with an election to 
any political office. Knowing and willful violations can result in 
criminal penalties against the offending parties.
  Mr. Haley Barbour's testimony before the Governmental Affairs 
Committee in 1997 highlights the need to strengthen and more actively 
enforce the foreign money statute to ensure that foreign nationals do 
not circumvent this intended prohibition on foreign political 
contributions. This bill would clarify the law to cover all 
arrangements from foreign entities through third parties where funds 
from these transactions ultimately reach a U.S. political party or 
candidate.
  In his testimony, Mr. Barbour acknowledged that the National Policy 
Forum [NPF], which he headed, received a $2.1 million loan guarantee in 
October 1994, from Young Brothers Development, the U.S. subsidiary of a 
Hong Kong company which provided the money. The loan guarantee served 
as collateral for a loan NPF received from a U.S. bank. Shortly 
thereafter, NPF sent two checks totaling $1.6 million to the Republican 
National Committee [RNC]. NPF ultimately defaulted on its loan with the 
U.S. bank and Young Brothers eventually ended up paying approximately 
$700,000 to cover the default.
  The weak link in the existing law is that many people have argued 
that the Federal campaign finance law does not apply to soft money. 
Accordingly, there are those who would argue that the NPF transaction 
described above would be legal so long as only soft money was involved. 
We need to make it 100 percent clear that foreign nationals cannot 
contribute to U.S. political parties or candidates under any 
circumstances. My bill closes this potential loophole by explicitly 
stating that the foreign money provisions of the bill apply to all 
foreign contributions and donations, both soft and hard money.
  The decision of the Supreme Court of the United States in Buckley 
versus Valeo prohibits legislation limiting the amount of money an 
individual may spend on his-her campaign. Maine recently enacted a 
statute designed to deal with this issue which provides a model for 
Federal legislation.

[[Page S2424]]

  Under the Maine legislation, a voluntary cap is placed on the total 
amount that candidates can spend during their campaigns for public 
office. The law further provides that if one candidate exceeds the 
spending limit, an opponent who has complied with the limit will be 
given public matching funds in an amount equal to the amount by which 
the offending candidate exceeded the spending limit. With such matching 
funds available, it would be a real deterrent to prevent a candidate 
from exceeding the expenditure cap since that candidate would no longer 
receive an advantage from his or her additional expenditure. This 
provision would probably not result in significant public expenditures; 
and to the extent it did, it would be worth it.
  This bill would subject contributions for legal defense funds to 
limits and mandatory disclosure for all Federal office holders and 
candidates. Testimony before the Governmental Affairs Committee in 1997 
disclosed that Mr. Yah Lin ``Charlie'' Trie brought in $639,000 for 
President Clinton's legal defense fund. While those funds were 
ultimately returned, there was never any identification of the donors 
and the fact of those contributions was delayed until after the 1996 
election.
  Contributions to legal defense funds pose a public policy issue 
similar to campaign contributions.
  This bill would impose the same limits on contributions to legal 
defense funds which are required for political contributions.
  Mr. President, I ask unanimous consent that the legislation I 
introduced in 1997, along with an executive summary, be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1191

                    (Introduced September 18, 1997)

       In lieu of the matter proposed to be inserted, insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Senate 
     Campaign Finance 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--SENATE ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. Senate election spending limits and benefits.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

   Subtitle A--Provisions Relating to Soft Money of Political Party 
                               Committees

Sec. 201. Soft money of political party committees.
Sec. 202. State party grassroots funds.
Sec. 203. Reporting requirements.

     Subtitle B--Soft Money of Persons Other Than Political Parties

Sec. 211. Soft money of persons other than political parties.

                       Subtitle C--Contributions

Sec. 221. Prohibition of contributions to Federal candidates and of 
              donations of anything of value to political parties by 
              foreign nationals.
Sec. 222. Closing of soft money loophole.
Sec. 223. Contribution to defray legal expenses of certain officials.

                  Subtitle D--Independent Expenditures

Sec. 231. Clarification of definitions relating to independent 
              expenditures.
Sec. 232. Reporting requirements for independent expenditures.

                       TITLE III--APPROPRIATIONS

Sec. 301. Authorization of appropriations.

  TITLE IV--SEVERABILITY; JUDICIAL REVIEW; EFFECTIVE DATE; REGULATIONS

Sec. 401. Severability.
Sec. 402. Expedited review of constitutional issues.
Sec. 403. Effective date.
Sec. 404. Regulations.

         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

     SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

       (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:

 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

     ``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.

       ``(a) In General.--For purposes of this title, a candidate 
     is an eligible Senate candidate if the candidate--
       ``(1) meets the primary and general election filing 
     requirements of subsections (c) and (d);
       ``(2) meets the primary and runoff election expenditure 
     limits of subsection (b); and
       ``(3) meets the threshold contribution requirements of 
     subsection (e).
       ``(b) Primary and Runoff Expenditure Limits.--The 
     requirements of this subsection are met if--
       ``(1) the candidate and the candidate's authorized 
     committees did not make expenditures for the primary election 
     in excess of 67 percent of the general election expenditure 
     limit under section 502(a); and
       ``(2) the candidate and the candidate's authorized 
     committees did not make expenditures for any runoff election 
     in excess of 20 percent of the general election expenditure 
     limit under section 502(a).
       ``(c) Primary Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files with the Commission a 
     certification that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) will meet the primary and runoff election expenditure 
     limits of subsection (b); and
       ``(ii) will accept only an amount of contributions for the 
     primary and runoff elections that does exceed those limits; 
     and
       ``(B) the candidate and the candidate's authorized 
     committees will meet the general election expenditure limit 
     under section 502(a).
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than the date 
     the candidate files as a candidate for the primary election.
       ``(d) General Election Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files a certification with the 
     Commission under penalty of perjury that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) met the primary and runoff election expenditure 
     limits under subsection (b); and
       ``(ii) did not accept contributions for the primary or 
     runoff election in excess of the primary or runoff 
     expenditure limit under subsection (b), whichever is 
     applicable, reduced by any amounts transferred to the current 
     election cycle from a preceding election cycle;
       ``(B) at least one other candidate has qualified for the 
     same general election ballot under the law of the candidate's 
     State; and
       ``(C) the candidate and the authorized committees of the 
     candidate--
       ``(i) except as otherwise provided by this title, will not 
     make expenditures that exceed the general election 
     expenditure limit under section 502(a);
       ``(ii) will not accept any contributions in violation of 
     section 315; and
       ``(iii) except as otherwise provided by this title, will 
     not accept any contribution for the general election involved 
     to the extent that the contribution would cause the aggregate 
     amount of contributions to exceed the sum of the amount of 
     the general election expenditure limit under section 502(a), 
     reduced by any amounts transferred to the current election 
     cycle from a previous election cycle and not taken into 
     account under subparagraph (A)(ii).
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than 7 days 
     after the earlier of--
       ``(A) the date on which the candidate qualifies for the 
     general election ballot under State law; or
       ``(B) if under State law, a primary or runoff election to 
     qualify for the general election ballot occurs after 
     September 1, the date on which the candidate wins the primary 
     or runoff election.
       ``(e) Threshold Contribution Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate and the candidate's authorized 
     committees have received allowable contributions during the 
     applicable period in an amount at least equal to the lesser 
     of--
       ``(A) 10 percent of the general election expenditure limit 
     under section 502(a); or
       ``(B) $250,000.
       ``(2) Definitions.--In this subsection:
       ``(A) Allowable contribution.--The term `allowable 
     contribution' means a contribution that is made as a gift of 
     money by an individual pursuant to a written instrument 
     identifying the individual as the contributor.
       ``(B) Applicable period.--The term `applicable period' 
     means--
       ``(i) the period beginning on January 1 of the calendar 
     year preceding the calendar year of the general election 
     involved and ending on the date on which the certification 
     under subsection (c)(2) is filed by the candidate; or
       ``(ii) in the case of a special election for the office of 
     Senator, the period beginning on the date on which the 
     vacancy in the office occurs and ending on the date of the 
     general election.

     ``SEC. 502. LIMITATION ON EXPENDITURES.

       ``(a) General Election Expenditure Limit.--
       ``(1) In general.--The aggregate amount of expenditures for 
     a general election by an eligible Senate candidate and the 
     candidate's authorized committees shall not exceed the 
     greater of--
       ``(A) $950,000; or
       ``(B) $400,000; plus
       ``(i) 30 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(ii) 25 cents multiplied by the voting age population in 
     excess of 4,000,000.
       ``(2) Indexing.--The amounts determined under paragraph (1) 
     shall be increased as of the beginning of each calendar year 
     based on the increase in the price index determined under 
     section 315(c), except that the base period shall be calendar 
     year 1997.

[[Page S2425]]

       ``(b) Payment of Taxes.--The limitation under subsection 
     (a) shall not apply to any expenditure for Federal, State, or 
     local taxes with respect to earnings on contributions raised.

     ``SEC. 503. MATCHING FUNDS FOR ELIGIBLE SENATE CANDIDATES IN 
                   RESPONSE TO EXPENDITURES BY NON-ELIGIBLE 
                   OPPONENTS.

       ``(a) In General.--Not later than 5 days after the 
     Commission determines that a Senate candidate has made or 
     obligated to make expenditures or accepted contributions 
     during an election in an aggregate amount in excess of the 
     applicable election expenditure limit under section 502(a) or 
     501(b), the Commission shall make available to an eligible 
     Senate candidate in the same election an aggregate amount of 
     funds equal to the amount in excess of the applicable limit.
       ``(b) Eligible Senate Candidate Opposed by More Than 1 Non-
     Eligible Senate Candidate.--For purposes of subsection (a), 
     if an eligible Senate candidate is opposed by more than 1 
     non-eligible Senate candidate in the same election, the 
     Commission shall take into account only the amount of 
     expenditures of the non-eligible Senate candidate that 
     expends, in the aggregate, the greatest amount of funds.
       ``(c) Time To Make Determinations.--The Commission may, on 
     the request of a candidate or on its own initiative, make a 
     determination whether a candidate has made or obligated to 
     make an aggregate amount of expenditures in excess of the 
     applicable limit under subsection (a).
       ``(d) Use of Funds.--Funds made available to a candidate 
     under subsection (a) shall be used in the same manner as 
     contributions are used.
       ``(e) Treatment of Funds.--An expenditure made with funds 
     made available to a candidate under this section shall not be 
     treated as an expenditure for purposes of the expenditure 
     limits under sections 501(b) and 502(a).

     ``SEC. 504. CERTIFICATION BY COMMISSION.

       ``(a) In General.--Not later than 48 hours after an 
     eligible candidate qualifies for a general election ballot, 
     the Commission shall certify the candidate's eligibility for 
     matching funds under section 503.
       ``(b) Determinations by Commission.--A determination 
     (including a certification under subsection (a)) made by the 
     Commission under this title shall be final, except to the 
     extent that the determination is subject to examination and 
     audit by the Commission under section 505.

     ``SEC. 505. REVOCATION; MISUSE OF BENEFITS.

       ``(a) Revocation of Status.--If the Commission determines 
     that any eligible Senate candidate has received contributions 
     or made or obligated to make expenditures in excess of--
       ``(1) the applicable primary election expenditure limit 
     under this title; or
       ``(2) the applicable general election expenditure limit 
     under this title,
     the Commission shall revoke the certification of the 
     candidate as an eligible Senate candidate and notify the 
     candidate of the revocation.
       ``(b) Misuse of Benefits.--If the Commission determines 
     that any benefit made available to an eligible Senate 
     candidate under this title was not used as provided for in 
     this title or that a candidate has violated any of the 
     spending limits contained in this Act, the Commission shall 
     notify the candidate, and the candidate shall pay the 
     Commission an amount equal to the value of the benefit.''.
       (b) Transition Period.--Expenditures made before January 1, 
     1998, shall not be counted as expenditures for purposes of 
     the limitations contained in the amendment made by subsection 
     (a).

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

   Subtitle A--Provisions Relating to Soft Money of Political Party 
                               Committees

     SEC. 201. SOFT MONEY OF POLITICAL PARTY COMMITTEES.

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

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

       ``(a) National Committees.--A national committee of a 
     political party (including a national congressional campaign 
     committee of a political party, an entity that is 
     established, financed, maintained, or controlled by the 
     national committee, a national congressional campaign 
     committee of a political party, and an officer or agent of 
     any such party or entity but not including an entity 
     regulated under subsection (b)) shall not solicit or receive 
     any contributions, donations, or transfers of funds, or spend 
     any funds, not subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(b) State, District, and Local Committees.--
       ``(1) Limitation.--Any amount that is expended or disbursed 
     by a State, district, or local committee of a political party 
     (including an entity that is established, financed, 
     maintained, or controlled by a State, district, or local 
     committee of a political party and an agent or officer of any 
     such committee or entity) during a calendar year in which a 
     Federal election is held, for any activity that might affect 
     the outcome of a Federal election, including any voter 
     registration or get-out-the-vote activity, any generic 
     campaign activity, and any communication that identifies a 
     candidate (regardless of whether a candidate for State or 
     local office is also mentioned or identified) shall be made 
     from funds subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(2) Activity not included in paragraph (1).--
       ``(A) In general.--Paragraph (1) shall not apply to an 
     expenditure or disbursement made by a State, district, or 
     local committee of a political party for--
       ``(i) a contribution to a candidate for State or local 
     office if the contribution is not designated or otherwise 
     earmarked to pay for an activity described in paragraph (1);
       ``(ii) the costs of a State, district, or local political 
     convention;
       ``(iii) the non-Federal share of a State, district, or 
     local party committee's administrative and overhead expenses 
     (but not including the compensation in any month of any 
     individual who spends more than 20 percent of the 
     individual's time on activity during the month that may 
     affect the outcome of a Federal election) except that for 
     purposes of this paragraph, the non-Federal share of a party 
     committee's administrative and overhead expenses shall be 
     determined by applying the ratio of the non-Federal 
     disbursements to the total Federal expenditures and non-
     Federal disbursements made by the committee during the 
     previous presidential election year to the committee's 
     administrative and overhead expenses in the election year in 
     question;
       ``(iv) the costs of grassroots campaign materials, 
     including buttons, bumper stickers, and yard signs that name 
     or depict only a candidate for State or local office; and
       ``(v) the cost of any campaign activity conducted solely on 
     behalf of a clearly identified candidate for State or local 
     office, if the candidate activity is not an activity 
     described in paragraph (1).
       ``(B) Fundraising.--Any amount that is expended or 
     disbursed by a national, State, district, or local committee, 
     by an entity that is established, financed, maintained, or 
     controlled by a State, district, or local committee of a 
     political party, or by an agent or officer of any such 
     committee or entity to raise funds that are used, in whole or 
     in part, to pay the costs of an activity described in 
     subparagraph (A) shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(c) Tax-exempt Organizations.--No national, State, 
     district, or local committee of a political party shall 
     solicit any funds for or make any donations to an 
     organization that is exempt from Federal taxation under 
     section 501(c) of the Internal Revenue Code of 1986.
       ``(d) Candidates.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     candidate, individual holding Federal office, or agent of a 
     candidate or individual holding Federal office may--
       ``(A) solicit or receive funds in connection with an 
     election for Federal office unless the funds are subject to 
     the limitations, prohibitions, and reporting requirements of 
     this Act; or
       ``(B) solicit or receive funds that are to be expended in 
     connection with any election for 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 paragraphs (1) and (2) of section 315(a); 
     and
       ``(ii) are not from sources prohibited by this Act from 
     making contributions with respect to an election for Federal 
     office.
       ``(2) Exception.--Paragraph (1) does not apply to the 
     solicitation or receipt of funds by an individual who is a 
     candidate for a State or local office if the solicitation or 
     receipt of funds is permitted under State law for the 
     individual's State or local campaign committee.''.

     SEC. 202. 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)) 
     (as amended by section 105) 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) Multicandidate Committee Contributions to State 
     Party.--Section 315(a)(2) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 441a(a)(2)) 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

[[Page S2426]]

     of a political party in any calendar year which in the 
     aggregate, exceed $15,000;
       ``(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 that 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.--
       (1) In general.--Section 315(a)(3) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is amended to read 
     as follows:
       ``(3) Overall limit.--
       ``(A) Election cycle.--No individual shall make 
     contributions during any election cycle that, in the 
     aggregate, exceed $60,000.
       ``(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.''.
       (2) Definition.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) is amended by adding at 
     the end the following:
       ``(20) Election cycle.--The term `election cycle' means--
       ``(A) in the case of a candidate or the authorized 
     committees of a candidate, the period beginning on the day 
     after the date of the most recent general election for the 
     specific office or seat that the candidate seeks and ending 
     on the date of the next general election for that office or 
     sea; and
       ``(B) in the case of all other persons, the period 
     beginning on the first day following the date of the last 
     general election and ending on the date of the next general 
     election.''.
       (d) State Party Grassroots Funds.--
       (1) In general.--Title III of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 301 et seq.) (as amended by section 
     201) is amended by adding at the end the following:

     ``SEC. 325. STATE PARTY GRASSROOTS FUNDS.

       ``(a) Definition.--In this section, the term `State or 
     local candidate committee' means a committee established, 
     financed, maintained, or controlled by a candidate for other 
     than Federal office.
       ``(b) Transfers.--Notwithstanding section 315(a)(4), no 
     funds may be transferred by a State committee of a political 
     party from its State Party Grassroots Fund to any other State 
     Party Grassroots Fund or to any other political committee, 
     except a transfer may be made to a district or local 
     committee of the same political party in the same State if 
     the district or local committee--
       ``(1) has established a separate segregated fund for the 
     purposes described in section 324(b)(1); and
       ``(2) uses the transferred funds solely for those purposes.
       ``(c) Amounts Received by Grassroots Funds From State and 
     Local Candidate Committees.--
       ``(1) In general.--Any amount received by a State Party 
     Grassroots Fund from a State or local candidate committee for 
     expenditures described in section 324(b)(1) that are for the 
     benefit of that candidate shall be treated as meeting the 
     requirements of 324(b)(1) and section 304(f) 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 
     paragraphs (1)(A) and (2)(A) of section 315(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 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.''.
       (2) Definition.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) (as amended by subsection 
     (c)(2)) is amended by adding at the end the following:
       ``(21) State party grassroots fund.--The term `State Party 
     Grassroots Fund' means a separate segregated fund established 
     and maintained by a State committee of a political party 
     solely for the purpose of making expenditures and other 
     disbursements described in section 325(a).''.

     SEC. 203. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 232) 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 325 
     applies.--A political committee (not described in paragraph 
     (1)) to which section 325(b)(1) applies shall report all 
     receipts and disbursements.
       ``(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) Transfers to State committees.--Any political 
     committee shall include in its report under paragraph (1) or 
     (2) the amount of any contribution received by a national 
     committee which is to be transferred to a State committee for 
     use directly (or primarily to support) activities described 
     in section 325(b)(2) and shall itemize such amounts to the 
     extent required by subsection (b)(3)(A).
       ``(5) 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 
     paragraph (3)(A), (5), or (6) of subsection (b).
       ``(6) 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) Report of Exempt Contributions.--Section 301(8) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)) is 
     amended by adding at the end the following:
       ``(C) The exclusion provided in subparagraph (B)(viii) 
     shall not apply for purposes of any requirement to report 
     contributions under this Act, and all such contributions 
     aggregating in excess of $200 shall be reported.''.
       (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 such reports contain substantially 
     the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Section 304(b)(4) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (H);
       (B) by inserting ``and'' at the end of subparagraph (I); 
     and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Section 304(b)(5)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
     is amended--
       (A) by striking ``within the calendar year''; and
       (B) by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.

     Subtitle B--Soft Money of Persons Other Than Political Parties

     SEC. 211. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) (as amended by section 203) is amended by adding 
     at the end the following:
       ``(h) Election Activity of Persons Other Than Political 
     Parties.--
       ``(1) In general.--A person other than a committee of a 
     political party that makes aggregate disbursements totaling 
     in excess of $10,000 for activities described in paragraph 
     (2) shall file a statement with the Commission--
       ``(A) within 48 hours after the disbursements are made; or
       ``(B) in the case of disbursements that are made within 20 
     days of an election, within 24 hours after the disbursements 
     are made.
       ``(2) Activity.--The activity described in this paragraph 
     is--
       ``(A) any activity described in section 315(b)(2)(A) that 
     refers to any candidate for Federal office, any political 
     party, or any Federal election; and
       ``(B) any activity described in subparagraph (B) or (C) of 
     section 315(b)(2).

[[Page S2427]]

       ``(3) Additional statements.--An additional statement shall 
     be filed each time additional disbursements aggregating 
     $10,000 are made by a person described in paragraph (1).
       ``(4) Applicability.--This subsection does not apply to--
       ``(A) a candidate or a candidate's authorized committees; 
     or
       ``(B) an independent expenditure.
       ``(5) Contents.--A statement under this section shall 
     contain such information about the disbursements as the 
     Commission shall prescribe, including--
       ``(A) the name and address of the person or entity to whom 
     the disbursement was made;
       ``(B) the amount and purpose of the disbursement; and
       ``(C) if applicable, whether the disbursement was in 
     support of, or in opposition to, a candidate or a political 
     party, and the name of the candidate or the political 
     party.''.

                       Subtitle C--Contributions

     SEC. 221. PROHIBITION OF CONTRIBUTIONS TO FEDERAL CANDIDATES 
                   AND OF DONATIONS OF ANYTHING OF VALUE TO 
                   POLITICAL PARTIES BY FOREIGN NATIONALS.

       Section 319 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441e) is amended--
       (1) by striking the heading and inserting ``prohibition of 
     contributions to candidates and donations of anything of 
     value to political parties by foreign nationals''; and
       (2) in subsection (a)--
       (A) by inserting ``or to make a donation of money or any 
     other thing of value to a political committee of a political 
     party'' after ``office''; and
       (B) by inserting ``or donation'' after ``contribution'' the 
     second place it appears.

     SEC. 222. CLOSING OF SOFT MONEY LOOPHOLE.

       Section 315(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(3)) is amended by striking 
     ``contributions'' and inserting ``contributions (as defined 
     in section 301) to a candidate or donations (including a 
     contribution as defined in section 301) to political 
     committees''.

     SEC. 223. CONTRIBUTIONS TO DEFRAY LEGAL EXPENSES OF CERTAIN 
                   OFFICIALS.

       (a) Contributions to Defray Legal Expenses.--
       (1) Prohibition on making of contributions.--It shall be 
     unlawful for any person to make a contribution to a candidate 
     for nomination to, or election to, a Federal office (as 
     defined in section 301(3) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431(3))), an individual who is a holder 
     of a Federal office, or any head of an Executive department, 
     or any entity established on behalf of such individual, to 
     defray legal expenses of such individual--
       (1) to the extent it would result in the aggregate amount 
     of such contributions from such person to or on behalf of 
     such individual to exceed $10,000 for any calendar year; or
       (2) if the person is--
       (A) a foreign national (as defined in section 319(b) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441e(b)); or
       (B) a person prohibited from contributing to the campaign 
     of a candidate under section 316 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b).
       (2) Prohibition on acceptance of contributions.--No person 
     shall accept a contribution if the contribution would violate 
     paragraph (1).
       (3) Penalty.--A person that knowingly and willfully commits 
     a violation of paragraph (1) or (2) shall be fined an amount 
     not to exceed the greater of $25,000 or 300 percent of the 
     contribution involved in such violation, imprisoned for not 
     more than 1 year, or both.
       (4) Construction of prohibition.--Nothing in this section 
     shall be construed to permit the making of a contribution 
     that is otherwise prohibited by law.
       (b) Reporting Requirements.--A candidate for nomination to, 
     or election to, a Federal office, an individual who is a 
     holder of a Federal office, or any head of an Executive 
     department, or any entity established on behalf of such 
     individual, that accepts contributions to defray legal 
     expenses of such individual shall file a quarterly report 
     with the Federal Election Commission including the following 
     information:
       (1) The name and address of each contributor who makes a 
     contribution in excess of $25.
       (2) The amount of each contribution.
       (3) The name and address of each individual or entity 
     receiving disbursements from the fund.
       (4) A brief description of the nature and amount of each 
     disbursement.
       (5) The name and address of any provider of pro bono 
     services to the fund.
       (6) The fair market value of any pro bono services provided 
     to the fund.

                  Subtitle D--Independent Expenditures

     SEC. 231. CLARIFICATION OF DEFINITIONS RELATING TO 
                   INDEPENDENT EXPENDITURES.

       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) Independent expenditure.--The term `independent 
     expenditure' means an expenditure that--
       ``(A) contains express advocacy; and
       ``(B) is made without cooperation or consultation with any 
     candidate, or any authorized committee or agent of such 
     candidate, and which is not made in concert with, or at the 
     request or suggestion of, any candidate, or any authorized 
     committee or agent of such candidate.
       ``(18) Express advocacy.--
       ``(A) In general.--The term `express advocacy' means a 
     communication that, taken as a whole and with limited 
     reference to external events, makes positive statements about 
     or negative statements about or makes an expression of 
     support for or opposition to a specific candidate, a specific 
     group of candidates, or candidates of a particular political 
     party.
       ``(B) Expression of support for or opposition to.--In 
     subparagraph (A), 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.
       ``(C) Voting records.--The term `express advocacy' does not 
     include the publication and distribution of a communication 
     that is limited to providing information about votes by 
     elected officials on legislative matters and that does not 
     expressly advocate the election or defeat of a clearly 
     identified candidate.''.

     SEC. 232. REPORTING REQUIREMENTS FOR INDEPENDENT 
                   EXPENDITURES.

       (a) Time for Reporting Certain 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 (4); and
       (3) by inserting after paragraph (2), as amended by 
     paragraph (1), the following:
       ``(d) Time for Reporting Certain Expenditures.--
       ``(1) Expenditures aggregating $1,000.--
       ``(A) Initial report.--A person that makes or obligates to 
     make independent expenditures aggregating $1,000 or more 
     after the 20th day, but more than 24 hours, before an 
     election shall file a report describing the expenditures 
     within 24 hours after that amount of independent expenditures 
     has been made or obligated to be made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person filing the report shall 
     file an additional report each time that independent 
     expenditures are made or obligated to be made 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 that makes or obligates to 
     make independent expenditures aggregating $10,000 or more 
     after the 90th day and up to and including the 20th day 
     before an election shall file a report describing the 
     expenditures within 24 hours after that amount of independent 
     expenditures has been made or obligated to be made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person filing the report shall 
     file an additional report each time that independent 
     expenditures are made or obligated to be made aggregating an 
     additional $10,000 with respect to the same election as that 
     to which the initial report relates.
       ``(3) Contents of Report.--A report under this subsection--
       ``(A) shall be filed with the Commission;
       ``(B) shall contain the information required by subsection 
     (c).''.
       (b) Affidavit Requirement.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     subsection (a)) is amended--
       (1) in subsection (c)(2)(B), by inserting ``(in the case of 
     a committee, by both the chief executive officer and the 
     treasurer of the committee)'' after ``certification''; and
       (2) by adding at the end the following:
       ``(e) Certification Requirements.--
       ``(1) Commission.--Not later than 48 hours after receipt of 
     a certification under subsection (c)(2)(B), the Commission 
     shall notify the candidate to which the independent 
     expenditure refers and the candidate's campaign manager and 
     campaign treasurer that an expenditure has been made and a 
     certification has been received.
       ``(2) Candidate.--Not later than 48 hours after receipt of 
     notification under paragraph (1), the candidate and the 
     candidate's campaign manager and campaign treasurer shall 
     each file with the Commission a certification, under penalty 
     of perjury, stating whether or not the independent 
     expenditure was made in cooperation, consultation, or 
     concert, with, or at the request or suggestion of, the 
     candidate or authorized committee or agent of such 
     candidate.''.

                       TITLE III--APPROPRIATIONS

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       The Federal Election Campaign Act of 1971 is amended--
       (1) by striking section 314 (2 U.S.C. 439c) and inserting 
     the following:

     ``SEC. 314. [REPEALED].'';

     and
       (2) by inserting after section 407 the following:

     ``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated for each fiscal 
     year such sums as are necessary to carry out this Act and 
     chapters 95 and 96 of the Internal Revenue Code of 1986.''.

[[Page S2428]]

  TITLE IV--SEVERABILITY; JUDICIAL REVIEW; EFFECTIVE DATE; REGULATIONS

     SEC. 401. SEVERABILITY.

       If any provision of this Act, an amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this Act, the amendments made by this Act, and 
     the application of the provisions of such to any person or 
     circumstance, shall not be affected thereby.

     SEC. 402. 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 
     interlocutory order or 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.
       (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. 403. EFFECTIVE DATE.

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

     SEC. 404. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out this Act not later than 9 
     months after the effective date of this Act.
                                  ____


       The Campaign Finance Reform Act of 1997--Executive Summary

       1. Spending Limits on Senate Campaigns.--The bill imposes 
     the following voluntary limits on the amounts that a 
     candidate can spend in a Senate primary and general election:
       Primary--67% of the state's general election expenditure 
     limit.
       General--$400,000 plus an additional amount based upon the 
     population of each state (with a floor of $950,000). Under 
     this formula, New York would have a general election 
     expenditure limit of $3,994,500, Pennsylvania would have a 
     limit of $2,899,000 and Delaware would have a limit of 
     $950,000.
       2. Standby Public Financing.--Similar to the recently-
     enacted Maine statute, when a candidate exceeds the voluntary 
     spending caps, his qualifying opponent(s) will receive public 
     funding in the amount of the excess. This provisions should 
     act primarily as a deterrent and should not result in 
     significant public outlays.
       3. Soft Money--Political Parties.--The bill prevents 
     candidates for Federal office from using soft money (i.e. 
     money not subject to the restrictions, caps and reporting 
     requirements of FECA--the Federal Election Campaign Act) to 
     fund their campaigns by doing the following:
       Prohibits national committees of political parties (e.g. 
     the DNC and the RNC) from soliciting, receiving or spending 
     soft money.
       Prohibits candidates for Federal office from soliciting or 
     receiving soft money.
       Prohibits state, district and local committees of political 
     parties from spending or disbursing soft money for any 
     activity that may affect the outcome of a Federal election.
       Caps the amount any individual or entity may contribute to 
     state parties for use in Federal elections at $20,000/year.
       4. Foreign Money.--The bill clarifies Federal election law 
     to provide that foreign nationals and other foreign entities 
     may not make any contributions to Federal elections. This 
     provision will make clear that the proscription on such 
     contributions applies to soft money as well as hard money 
     contributions.
       5. Clarifying the Definition of Independent Expenditures.--
     The bill ensures that ``independent expenditures'' on behalf 
     of a particular candidate by a third party will be truly 
     independent from the candidate by providing that:
       All entities which make independent expenditures relating 
     to a candidate for Federal office will have to sign an 
     affidavit stating whether or not such an expenditure was made 
     in coordination with any candidate.
       Within 48 hours of receipt of such a certification, the FEC 
     shall notify the candidate to which the expenditure refers 
     that such expenditure has been made.
       Within 48 hours of such notice, the candidate (and his 
     campaign manager and treasurer) will have to submit a signed 
     affidavit stating whether or not the independent expenditure 
     was made in coordination with the candidate.
       6. Donations to Legal Defense Funds.--The bill seeks to 
     control contributions to legal defense funds--the ``first 
     cousin'' of campaign contributions--by imposing the following 
     limitations and requirements:
       No person can make a contribution of over $10,000 a year in 
     the aggregate to the legal defense fund of a holder of 
     Federal office or a candidate for Federal office.
       A holder of Federal office or a candidate for Federal 
     office that accepts contributions to a legal defense fund 
     must file detailed quarterly reports on such contributions 
     and the identity of the donors with the Federal Election 
     Commission.

  Mr. SPECTER. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. MURKOWSKI. Mr. President, will you advise me of the time 
available under the special orders?
  The ACTING PRESIDENT pro tempore. Under the previous order, the time 
until 12:30 p.m. was under the control of the Senator from Illinois. 
However, that time has arrived. Under the previous order, the time 
until 12:50 p.m. will be under the control of the Senator from Alaska.
  Mr. MURKOWSKI. I thank the Chair.

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