[Congressional Record Volume 155, Number 123 (Friday, August 7, 2009)]
[Senate]
[Pages S9083-S9090]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FEINGOLD (for himself and Mr. McCain):
  S. 1648. A bill to amend the Federal Election Campaign Act of 1971 to 
replace the Federal Election Commission with the Federal Election 
Administration, and for other purposes; to the Committee on Rules and 
Administration.
  Mr. FEINGOLD. Mr. President, I am pleased to join with my partner in 
reform, the senior Senator from Arizona, to introduce the Federal 
Election Administration Act of 2009. Americans naturally expect that 
elections in this country will be honest, fair, and above all, lawful. 
That is the purpose of the Federal Election Commission, yet the FEC's 
willingness to enforce the law has gone from bad to worse. Now more 
than ever, the health of our democracy depends on whether Congress will 
take decisive action to fix this unpardonably broken agency.
  Senator McCain and I originally introduced this bill in 2003, after 
giving the FEC a fair chance to implement the Bipartisan Campaign 
Reform Act, or BCRA. Despite our very best efforts and those of our 
House sponsors, Representatives Shays and Meehan, the FEC opened new 
loopholes rather than trying to faithfully discern the intent of the 
law. It acted as an unelected legislature, substituting its policy 
judgments for those of Congress.
  This is not my personal judgment. This is the judgment of the United 
States Court of Appeals for the D.C. Circuit, which has struck down 
over twenty of the FEC's implementing regulations as arbitrary and 
capricious or directly contrary to the will of Congress. In its most 
recent opinion in 2008, the court was merciless in its criticism of the 
FEC. It said some of the FEC's arguments were ``absurd'', or ``fl[y] in 
the face of common sense''; or ``disregard[] everything Congress, the 
Supreme Court, and this court have said about campaign finance 
regulation''; or ``ignore[] both history and human nature.'' It said 
that one regulation ``provides a clear roadmap'' for using soft money 
in connection with federal elections, ``directly frustrating BCRA's 
purpose.'' It said that the rule ``would lead to the exact perception 
and possibility of corruption Congress sought to stamp out in BCRA.'' 
This is not language that the American people should ever hear from a 
court about a law enforcement agency.
  The situation has only gotten worse. Earlier this year, the FEC blew 
a hole through the Honest Leadership and Open Government Act of 2007, 
issuing a regulation that allows lobbyists to hide the bundling of 
campaign contributions that the law was designed to make public. The 
FEC disregarded clear and deliberate statements of congressional 
intent, not only from me but from then-Senator Barack Obama.
  Those laws that the FEC cannot regulate out of existence, it smothers 
with inaction. During the first six months of 2008, the FEC was 
effectively closed for business because President Bush insisted on 
standing behind a nominee, Hans Von Spakovsky, whom the Senate would 
not confirm. We were in the middle of a presidential election year, 
with no enforcement of federal election law. That deadlock was broken 
when Mr. Von Spakovsky's nomination was finally withdrawn and four new 
Commissioners and one holdover Commissioner were confirmed in July 
2008.
  But the cure turned out to be worse than the disease. In the words of 
The Washington Post: ``What's worse than a federal agency that lacks 
the quorum of commissioners necessary to act on a matter? Answer: An 
agency that has a quorum in place but is paralyzed from acting anyway 
because it is deadlocked along party lines.''
  The whole point of having six commissioners, three Democrats and 
three Republicans, was to protect against partisan enforcement of the 
election laws. But over the past year we've seen election laws enforced 
against neither party. In well over a dozen cases, whether the likely 
lawbreaker was linked to George Soros or Mitt Romney, a 3-to-3 deadlock 
has prevented the FEC professional staff from doing their job. Even 
admitted offenders have been let off the hook: On at least two 
occasions, the FEC declined to collect fines that election law 
violators had already agreed to pay. That's like a district attorney 
tearing up a criminal's plea bargain.
  It gives me no pleasure to say this, but enough is enough. The 
current structure of the FEC cannot meet the challenges of enforcing 
our election laws in the 21st century. In this bill, we replace the FEC 
with a new agency, the Federal Election Administration. The FEA will be 
helmed by three members instead of six, so that there is always a 
tiebreaker and we stop seeing perpetual deadlock. The Chair will have a 
ten-year term to encourage independence. The other two members will 
have staggered six-year terms. Our hope is that this new agency will 
not be the captive of the political parties, but instead, led by a 
strong and independent Chair, will be the trustworthy law enforcement 
agency that the American people want to see.
  To that end, we have followed the model of more effective regulatory 
agencies such as the EPA, the NLRB, and the SEC. The FEA will have a 
corps of Administrative Law Judges to adjudicate complaints that the 
Administration's professional staff will bring. The new agency will 
have the power to determine violations of our election laws and to 
assess penalties subject, of course, to judicial review.
  Americans want our democratically enacted laws to be enforced, as a 
matter of public good and public trust. If the EPA doesn't enforce 
pollution laws, our drinking water gets poisoned. If the SEC doesn't 
enforce the securities laws, our economy gets poisoned. If the FEC does 
not enforce election laws, our democracy gets poisoned.
  The new Federal Election Administration will ensure that our 
democracy remains healthy, strong, and fair. I want to thank my friend 
Senator McCain for all of his work on campaign finance and other reform 
issues for well over a decade, and I look forward to working closely 
with him again to pass this bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1648

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Election Administration Act of 2009''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:
Sec. 1. Short title; table of contents.

                TITLE I--FEDERAL ELECTION ADMINISTRATION

Sec. 101. Establishment of the Federal Election Administration.
Sec. 102. Executive schedule positions.
Sec. 103. GAO examination of enforcement of campaign finance laws by 
              the Department of Justice.
Sec. 104. GAO study and report on appropriate funding levels.
Sec. 105. Conforming amendments.
Sec. 106. Authorization of appropriations.

                    TITLE II--TRANSITION PROVISIONS

Sec. 201. Transfer of functions of Federal Election Commission.
Sec. 202. Transfer of property, records, and personnel.
Sec. 203. Repeals.
Sec. 204. Conforming amendments.
Sec. 205. Effective date.

                TITLE I--FEDERAL ELECTION ADMINISTRATION

     SEC. 101. ESTABLISHMENT OF THE FEDERAL ELECTION 
                   ADMINISTRATION.

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

                ``Subtitle B--Administrative Provisions

   ``CHAPTER 1--ESTABLISHMENT OF THE FEDERAL ELECTION ADMINISTRATION

     ``SEC. 351. ESTABLISHMENT OF THE FEDERAL ELECTION 
                   ADMINISTRATION.

       ``(a) In General.--There is established the Federal 
     Election Administration (in this Act referred to as the 
     `Administration').
       ``(b) Independent Establishment.--The Administration shall 
     be an independent establishment (as defined in section 104 of 
     title 5, United States Code).
       ``(c) Purpose.--The Administration shall administer, seek 
     to obtain compliance with, enforce, and formulate policy in a 
     manner that is consistent with the language and intent of 
     Congress with respect to the following statutes:
       ``(1) This Act.

[[Page S9084]]

       ``(2) The Presidential Election Campaign Fund Act under 
     chapter 95 of the Internal Revenue Code of 1986.
       ``(3) The Presidential Primary Matching Payment Account Act 
     under chapter 96 of the Internal Revenue Code of 1986.
       ``(d) Exclusive Civil Jurisdiction.--The Administration 
     shall have exclusive jurisdiction with respect to the civil 
     enforcement of the statutes identified in subsection (c).
       ``(e) Voting Requirement.--All decisions of the 
     Administration with respect to the exercise of its duties and 
     powers under this Act, except those expressly reserved for 
     decision by the Chair, shall be made by a majority vote of 
     its members.
       ``(f) Meetings and Quorum.--
       ``(1) Meetings.--The Administration shall meet--
       ``(A) at least once each month; and
       ``(B) at the call of the Chair.
       ``(2) Quorum.--A majority of the members of the 
     Administration shall constitute a quorum.
       ``(g) Seal.--The Administration shall procure a proper 
     seal, with such suitable inscriptions and devices as the 
     President shall approve. This seal, to be known as the 
     official seal of the Federal Election Administration, shall 
     be kept and used to verify official documents, under such 
     rules and regulations as the Administration may prescribe. 
     Judicial notice shall be taken of the seal.
       ``(h) Principal Office.--The principal office of the 
     Administration shall be in or near the District of Columbia, 
     but the Administration may meet or exercise any of its powers 
     anywhere in the United States.

     ``SEC. 352. COMPOSITION OF THE FEDERAL ELECTION 
                   ADMINISTRATION.

       ``(a) In General.--The Administration shall be composed of 
     3 members, 1 of whom shall serve as the Chair of the 
     Administration. No member of the Administration shall--
       ``(1) be affiliated with the same political party as any 
     other member of the Administration while serving as a member 
     of the Administration; or
       ``(2) have been affiliated with the same political party as 
     any other member of the Administration at any time during the 
     5-year period ending on the date on which such individual is 
     nominated to be a member of the Administration.
       ``(b) Appointment.--
       ``(1) In general.--Each member of the Administration shall 
     be appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(2) Chair.--The President shall, at the time of 
     nomination of the first 3 members of the Administration, 
     designate 1 of the 3 to serve as the Chair. Any individual 
     appointed to succeed, or to fill the unexpired term of, that 
     member (or any member succeeding that member) shall serve as 
     the Chair.
       ``(3) Qualifications.--
       ``(A) An individual who is appointed under paragraph (1) 
     shall--
       ``(i) possess demonstrated integrity, independence, and 
     public credibility; and
       ``(ii) shall have not less than 5 years professional 
     experience in law enforcement, including such experience 
     gained--

       ``(I) in service as a member of the judiciary;
       ``(II) as a member or an employee of a Federal, State, or 
     local campaign finance or ethics enforcement agency; or
       ``(III) as a law enforcement official in a Federal or State 
     enforcement agency or office.

       ``(B) An individual may not be appointed under paragraph 
     (1) if--
       ``(i) such individual is serving or has served as a member 
     of the Federal Election Commission subject to a term limit; 
     or
       ``(ii) at any time during the 4-year period ending on the 
     date of the nomination of such individual, the individual 
     was--

       ``(I) a candidate, an employee of a candidate, or an 
     attorney for a candidate;
       ``(II) an elected officeholder, an employee of an elected 
     officeholder, or an attorney for an elected officeholder;
       ``(III) an officer or employee of a political party or an 
     attorney for a political party; or
       ``(IV) employed in a position in the executive branch of 
     the Government of a confidential or policy-determining 
     character under Schedule C of subpart C of part 213 of title 
     5 of the Code of Federal Regulations.

       ``(c) Term of Office.--
       ``(1) In general.--
       ``(A) Chair.--The Chair of the Administration shall be 
     appointed for a term of 10 years.
       ``(B) Other members.--Subject to subparagraph (C), the 2 
     members of the Administration other than the Chair shall be 
     appointed for a term of 6 years.
       ``(C) Initial appointments.--Of the members initially 
     appointed under subparagraph (B), 1 member shall be appointed 
     for a term of 3 years.
       ``(2) Limitation to one term.--A member of the 
     Administration may only serve 1 term, except that--
       ``(A) the individual appointed under subparagraph (B) of 
     paragraph (1) who is appointed for the term described in 
     subparagraph (C) of such paragraph may be appointed to a 6-
     year term in addition to the term described in such 
     subparagraph; and
       ``(B) an individual appointed under paragraph (4) to fill 
     the remainder of an unexpired term that has less than \1/2\ 
     of the term remaining may be appointed to serve another term.
       ``(3) Expired terms.--An individual may continue to serve 
     as a member of the Administration after the expiration of 
     such individual's term until the earlier of--
       ``(A) the date on which such individual's successor has 
     taken office; or
       ``(B) 1 year following the date on which the term of such 
     member expired.
       ``(4) Vacancies.--An individual appointed upon a vacancy 
     occurring before the expiration of the term for which the 
     individual's predecessor was appointed shall be appointed 
     only for the unexpired term of the predecessor. Such vacancy 
     shall be filled in the same manner as the original 
     appointment.
       ``(5) Other activities.--An individual may not engage in 
     any other business, vocation, or employment while serving as 
     a member of the Administration.
       ``(d) Removal.--A member of the Administration may be 
     removed by the President only for inefficiency, neglect of 
     duty, or malfeasance in office.

     ``SEC. 353. STAFF DIRECTOR.

       ``(a) In General.--There shall be in the Administration a 
     staff director.
       ``(b) Responsibilities.--The staff director--
       ``(1) shall assist the Administration in its administration 
     and operations;
       ``(2) shall perform such responsibilities as the 
     Administration shall prescribe; and
       ``(3) may, with the approval of the Chair--
       ``(A) appoint and fix the pay of such additional personnel 
     as the staff director considers appropriate without regard to 
     the provisions of title 5, United States Code, governing 
     appointments in the competitive service; and
       ``(B) procure temporary and intermittent services to the 
     same extent as is authorized by section 3109(b) of title 5, 
     United States Code, but at rates for individuals not to 
     exceed the daily equivalent of the annual rate of basic pay 
     in effect for grade GS-15 of the General Schedule (5 U.S.C. 
     5332).
       ``(c) Appointment.--The staff director shall be appointed 
     by the Chair, after consultation with the other members of 
     the Administration.
       ``(d) Other Activities.--An individual may not engage in 
     any other business, vocation, or employment while serving as 
     the staff director.

     ``SEC. 354. GENERAL COUNSEL.

       ``(a) In General.--There shall be in the Administration a 
     general counsel.
       ``(b) Responsibilities.--The general counsel shall--
       ``(1) serve as the chief legal officer of the 
     Administration;
       ``(2) provide legal assistance to the Administration 
     concerning its programs and policies;
       ``(3) advise and assist the Administration in carrying out 
     its responsibilities under section 361; and
       ``(4) represent the Administration in any proceeding in 
     court or before an administrative law judge.
       ``(c) Appointment.--The general counsel shall be appointed 
     by the Chair, subject to approval by majority vote of the 
     members of the Administration.

     ``SEC. 355. INSPECTOR GENERAL.

       ``There shall be in the Administration an inspector 
     general. The inspector general and the office of inspector 
     general shall be subject to the Inspector General Act of 1978 
     (5 U.S.C. App.).

     ``CHAPTER 2--OPERATION OF THE FEDERAL ELECTION ADMINISTRATION

     ``SEC. 361. POWERS OF THE CHAIR AND ADMINISTRATION.

       ``(a) Chair.--
       ``(1) In general.--The Chair shall be the chief 
     administrative officer of the Administration with the 
     authority to administer the Administration and shall, after 
     consultation with the other 2 members of the Administration, 
     have the power to appoint or remove the staff director and to 
     establish the budget of the Administration.
       ``(2) Other powers.--The Chair has the power--
       ``(A) to the fullest extent practicable, to request the 
     assistance of other agencies and departments of the United 
     States, including the personnel and facilities of such 
     agencies and departments and the heads of such agencies and 
     departments may make available to the Chair such personnel, 
     facilities, and other assistance, with or without 
     reimbursement;
       ``(B) to appoint, assign, remove, and compensate 
     administrative law judges in accordance with title 5, United 
     States Code;
       ``(C) to require, by special or general orders, any person 
     to submit, under oath, such written reports and answers to 
     questions as the Chair may prescribe;
       ``(D) to administer oaths or affirmations;
       ``(E) to issue and enforce subpoenas in accordance with 
     section 364;
       ``(F) in any proceeding or investigation, to order 
     testimony to be taken by deposition before any person who is 
     designated by the Chair and has the power to administer oaths 
     and, in such instances, to compel testimony and the 
     production of evidence in the same manner as authorized under 
     subparagraph (E);
       ``(G) to pay witnesses fees and mileage in accordance with 
     section 364(d); and
       ``(H) to make independent budget requests to Congress in 
     accordance with section 362.
       ``(b) Administration.--The Administration shall have the 
     power--
       ``(1) to initiate, defend, or appeal, through the general 
     counsel, any civil action in the name of the Administration 
     to enforce the provisions of this Act and chapters 95 and 96 
     of the Internal Revenue Code of 1986;

[[Page S9085]]

       ``(2) to assess civil penalties for violations of this Act 
     and chapters 95 and 96 of the Internal Revenue Code of 1986;
       ``(3) to issue cease-and-desist orders to prevent 
     violations of this Act and chapters 95 and 96 of the Internal 
     Revenue Code of 1986;
       ``(4) to establish procedures and schedules for agency 
     adjudication that ensure timely enforcement of this Act and 
     chapters 95 and 96 of the Internal Revenue Code of 1986;
       ``(5) to render advisory opinions under section 363;
       ``(6) to develop prescribed forms, and to make, amend, and 
     repeal rules, pursuant to section 365;
       ``(7) to establish procedures for alternative dispute 
     resolution of violations of this Act or of chapters 95 or 96 
     of the Internal Revenue Code of 1986;
       ``(8) to conduct investigations and hearings expeditiously, 
     to encourage voluntary compliance, and to report apparent 
     violations to the appropriate law enforcement authorities; 
     and
       ``(9) to transmit to the President and to Congress not 
     later than June 1 of each year, a report which states in 
     detail the activities of the Administration in carrying out 
     its duties under this Act, and which includes any 
     recommendations for any legislative or other action the 
     Administration considers appropriate.

     ``SEC. 362. INDEPENDENT BUDGET REQUESTS AND LEGISLATIVE 
                   PROPOSALS.

       ``(a) Exemption From OMB Oversight.--Whenever the Chair 
     submits any budget estimate or request to the President or 
     the Office of Management and Budget, the Chair shall 
     concurrently transmit a copy of such estimate or request to 
     Congress.
       ``(b) Authority To Make Independent Legislative 
     Recommendations.--Whenever the Administration submits any 
     legislative recommendation, testimony, or comments on 
     legislation requested by Congress or by any Member of 
     Congress, to the President or the Office of Management and 
     Budget, the Administration shall concurrently transmit a copy 
     thereof to Congress or to the Member requesting the same. No 
     officer or agency of the United States shall have any 
     authority to require the Administration to submit its 
     legislative recommendations, testimony, or comments on 
     legislation, to any office or agency of the United States for 
     approval, comments, or review, prior to the submission of 
     such recommendations, testimony, or comments to Congress.

     ``SEC. 363. ADVISORY OPINIONS.

       ``(a) Requests for Advisory Opinions.--
       ``(1) In general.--Not later than 60 days after the 
     Administration receives from a person a complete written 
     request concerning the application of this Act, chapter 95 or 
     96 of the Internal Revenue Code of 1986, or a rule or 
     regulation prescribed by the Administration, with respect to 
     a specific transaction or activity by the person, the 
     Administration shall render a written advisory opinion 
     relating to such transaction or activity to the person.
       ``(2) Requests by candidates.--If an advisory opinion is 
     requested by a candidate, or any authorized committee of such 
     candidate, during the 60-day period before any election for 
     Federal office involving the requesting party, the 
     Administration shall render a written advisory opinion 
     relating to such request not later than 20 days after the 
     Administration receives a complete written request.
       ``(b) Rulemaking Required.--Any rule of law which is not 
     stated in this Act or in chapter 95 or 96 of the Internal 
     Revenue Code of 1986 may be initially proposed by the 
     Administration only as a rule or regulation pursuant to 
     procedures established in section 365. No opinion of an 
     advisory nature may be issued by the Administration or any 
     other officer or employee of the Administration except in 
     accordance with the provisions of this section.
       ``(c) Reliance on Advisory Opinions.--
       ``(1) In general.--Any advisory opinion rendered by the 
     Administration under subsection (a) may be relied upon by--
       ``(A) any person involved in the specific transaction or 
     activity with respect to which such advisory opinion is 
     rendered; and
       ``(B) any person involved in any specific transaction or 
     activity which is indistinguishable in all its material 
     aspects from the transaction or activity with respect to 
     which such advisory opinion is rendered.
       ``(2) Protection from liability.--Notwithstanding any other 
     provisions of law, any person who relies upon any provision 
     or finding of an advisory opinion in accordance with the 
     provisions of paragraph (1) and who acts in good faith in 
     accordance with the provisions and findings of such advisory 
     opinion shall not, as a result of any such act, be subject to 
     any sanction provided by this Act or by chapter 95 or 96 of 
     the Internal Revenue Code of 1986.
       ``(d) Publication of Requests.--The Administration shall 
     make public any request made under subsection (a) for an 
     advisory opinion. Before rendering an advisory opinion, the 
     Administration shall accept written comments submitted by any 
     interested party within the 10-day period following the date 
     on which the request is made public.
       ``(e) Judicial Review.--
       ``(1) In general.--Any person adversely affected by an 
     advisory opinion rendered by the Administration may obtain 
     judicial review of such advisory opinion by filing a petition 
     in the United States Court of Appeals for the District of 
     Columbia Circuit.
       ``(2) Scope of review.--For purposes of conducting the 
     judicial review described in paragraph (1), the provisions of 
     section 706 of title 5, United States Code, shall apply.

     ``SEC. 364. ISSUANCE AND ENFORCEMENT OF SUBPOENAS.

       ``(a) Issuance by the Chair.--If the Administration is 
     conducting an investigation pursuant to section 371 or 372, 
     the Chair shall, on behalf of the Administration, have the 
     power to require by subpoena the attendance and testimony of 
     witnesses and the production of all documentary evidence 
     relating to the execution of the Administration's duties.
       ``(b) Issuance by an Administrative Law Judge.--Any 
     administrative law judge presiding over an enforcement action 
     pursuant to section 373 shall have the power to require by 
     subpoena the attendance and testimony of witnesses and the 
     production of all documentary evidence relating to the 
     administrative law judge's duties.
       ``(c) Issuance and Enforcement of Subpoenas.--
       ``(1) Issuance.--Subpoenas issued under subsection (a) or 
     (b) shall bear the signature of the Chair or an 
     administrative law judge, respectively, and shall be served 
     by any person or class of persons designated by the Chair or 
     administrative law judge for that purpose.
       ``(2) Enforcement.--In the case of contumacy or failure to 
     obey a subpoena issued under subsection (a) or (b), the 
     Federal district court for the judicial district in which the 
     subpoenaed person resides, is served, or may be found may 
     issue an order requiring such person to appear at any 
     designated place to testify or to produce documentary or 
     other evidence. Any failure to obey the order of the court 
     may be punished by the court as a contempt of that court.
       ``(d) Witness Allowances and Fees.--Section 1821 of title 
     28, United States Code, shall apply to witnesses requested or 
     subpoenaed to appear at any hearing of the Administration. 
     The per diem and mileage allowances for witnesses shall be 
     paid from funds available to pay the expenses of the 
     Administration.
       ``(e) Jurisdiction.--Subpoenas for witnesses who are 
     required to attend a Federal district court may run into any 
     other district.

     ``SEC. 365. RULEMAKING AUTHORITY.

       ``(a) In General.--The Administration may, pursuant to the 
     provisions of chapter 5 of title 5, United States Code, 
     prescribe such rules and regulations as the Administration 
     deems necessary to carry out the provisions of this Act and 
     chapters 95 and 96 of the Internal Revenue Code of 1986, 
     including the authority to promulgate rules of practice and 
     procedure for agency adjudications.
       ``(b) Authority To Promulgate Independent Regulations.--
     Whenever the Administration promulgates any regulation, it 
     shall not be required to submit such regulation for review or 
     approval to the President or the Office of Management and 
     Budget.
       ``(c) Conduct of Activities.--The Administration shall 
     prepare written rules for the conduct of its activities, 
     including procedures for the conduct of enforcement actions 
     under sections 371, 372, and 373.
       ``(d) Forms.--
       ``(1) In general.--The Administration shall prescribe forms 
     necessary to implement this Act and chapters 95 and 96 of the 
     Internal Revenue Code of 1986.
       ``(2) Public protection.--Any forms prescribed by the 
     Administration under paragraph (1), and any information-
     gathering activities of the Administration under this Act, 
     shall not be subject to the provisions of section 3512 of 
     title 44, United States Code.
       ``(e) Reliance Upon Rules and Regulations.--Notwithstanding 
     any other provision of law, any person who relies upon any 
     rule or regulation prescribed by the Administration in 
     accordance with the provisions of this section and who acts 
     in good faith in accordance with such rule or regulation 
     shall not, as a result of such act, be subject to any 
     sanction provided by this Act or by chapter 95 or 96 of the 
     Internal Revenue Code of 1986.
       ``(f) Consultation With IRS.--In prescribing rules, 
     regulations, and forms under this section, the Administration 
     and the Secretary of the Treasury shall consult and work 
     together to promulgate rules, regulations, and forms which 
     are mutually consistent. The Administration shall report to 
     Congress annually on the steps it has taken to comply with 
     this subsection.
       ``(g) Judicial Review.--
       ``(1) In general.--Any person adversely affected by a rule, 
     regulation, or form promulgated by the Administration may 
     obtain judicial review of such rule, regulation, or form by 
     filing a petition in the United States Court of Appeals for 
     the District of Columbia Circuit.
       ``(2) Scope of review.--For purposes of conducting the 
     judicial review described in paragraph (1), the provisions of 
     section 706 of title 5, United States Code, shall apply.
       ``(h) Rule and Regulation Defined.--In this Act, the terms 
     `rule' and `regulation' mean a provision or series of 
     interrelated provisions stating a single, separable rule of 
     law.

     ``SEC. 366. LITIGATION AUTHORITY.

       ``(a) In General.--Notwithstanding sections 516 and 518 of 
     title 28, United States Code, and section 3106 of title 5, 
     United States Code, the Administration is authorized to 
     bring, appear in, defend against, and appeal any action 
     instituted under this Act or chapter 95 or 96 of the Internal 
     Revenue Code of 1986, in any court either--
       ``(1) by attorneys employed by the Administration; or

[[Page S9086]]

       ``(2) by counsel whom it may appoint, on a temporary basis 
     as may be necessary for such purpose, without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and whose 
     compensation it may fix without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of such title.
       ``(b) Compensation of Appointed Counsel.--The compensation 
     of counsel appointed on a temporary basis under subsection 
     (a)(2) shall be paid out of any funds otherwise available to 
     pay the compensation of employees of the Administration.
       ``(c) Independence From Attorney General.--In pursuing an 
     action under this section, the Administration may act 
     independently of the Attorney General.

     ``SEC. 367. AVAILABILITY OF REPORTS.

       ``(a) In General.--The Administration shall--
       ``(1) prepare, publish, and furnish to all persons required 
     to file reports and statements under this Act a manual 
     recommending uniform methods of bookkeeping and reporting;
       ``(2) develop a filing, coding, and cross-indexing system 
     consistent with the purposes of this Act;
       ``(3) within 48 hours after the time of the receipt by the 
     Administration of reports and statements filed with the 
     Administration, make them available for public inspection, 
     and copying, at the expense of the person requesting such 
     copying, except that any information copied from such reports 
     or statements may not be sold or used by any person for the 
     purpose of soliciting contributions or for commercial 
     purposes, other than using the name and address of any 
     political committee to solicit contributions from such 
     committee;
       ``(4) keep such designations, reports, and statements for a 
     period of 10 years from the date of receipt and maintain 
     computerized records of such designations, reports, and 
     statements thereafter;
       ``(5)(A) compile and maintain a cumulative index of 
     designations, reports, and statements filed under this Act, 
     publish the index at regular intervals, and make the index 
     available for purchase directly or by mail;
       ``(B) compile, maintain, and revise a separate cumulative 
     index of reports and statements filed by multicandidate 
     committees, including in such index a list of multicandidate 
     committees; and
       ``(C) compile and maintain a list of multicandidate 
     committees, which shall be revised and made available 
     monthly;
       ``(6) prepare and publish periodically lists of authorized 
     committees which fail to file reports as required by this 
     Act; and
       ``(7) serve as a national clearinghouse for the compilation 
     of information and review of procedures with respect to the 
     administration of Federal elections.
       ``(b) Pseudonyms.--For purposes of subsection (a)(3), a 
     political committee may submit 10 pseudonyms on each report 
     filed in order to protect against the illegal use of names 
     and addresses of contributors, but only if such committee 
     attaches a list of such pseudonyms to the appropriate report. 
     The Administration shall exclude these lists from the public 
     record.
       ``(c) Contracts.--The Administration may enter into 
     contracts for the purpose of performing the duties described 
     in subsection (a).
       ``(d) Availability of Reports.--Reports or other 
     information described in subsection (a) shall be available to 
     the public, except that--
       ``(1) copies shall be made available without cost, upon 
     request, to agencies and branches of the Federal Government; 
     and
       ``(2) information made available as a result of the 
     application of paragraph (7) of such subsection shall be made 
     available to the public only upon the payment of the cost 
     thereof.

     ``SEC. 368. AUDITS AND FIELD EXAMINATIONS.

       ``(a) In General.--The Administration may, in accordance 
     with the provisions of this section, conduct audits and field 
     investigations of any political committee required to file a 
     report under section 304.
       ``(b) Priority.--All audits and field investigations 
     concerning the verification for, and receipt and use of, any 
     payments received by a candidate or committee under chapter 
     95 or 96 of the Internal Revenue Code of 1986 shall be given 
     priority.
       ``(c) Audits and Field Examinations Where Thresholds Not 
     Met.--
       ``(1) Internal review.--The Administration shall conduct an 
     internal review of reports filed by selected committees to 
     determine if the reports filed by a particular committee meet 
     the threshold requirements for substantial compliance with 
     the Act. Such thresholds for compliance shall be established 
     by the Administration.
       ``(2) Audits and field examinations.--The Administration 
     may vote to conduct an audit and field investigation of any 
     committee which it determines under paragraph (1) does not 
     meet the threshold requirements established by the 
     Administration. Such audits shall be commenced within 30 days 
     of such vote, except that any audit under the provisions of 
     this subsection of an authorized committee of a candidate 
     shall be commenced within 6 months of the election for which 
     such committee is authorized.
       ``(d) Random Audits.--
       ``(1) In general.--In addition to any audits conducted 
     under subsection (c), the Administration may, subject to 
     paragraph (2), conduct audits of any committee selected at 
     random to ensure compliance with this Act. The selection of 
     any committee under this paragraph shall be based on 
     standards and procedures adopted by the Administration, 
     except that in any calendar year such audits may be initiated 
     against no more than 3 percent of all authorized candidate 
     campaign committees.
       ``(2) Applicable rules.--
       ``(A) In general.--If the Administration selects a 
     committee for audit under paragraph (1), the Administration 
     shall promptly notify the committee of the selection and 
     commence the audit within 30 days of the selection.
       ``(B) Special rules for authorized committees.--If the 
     committee selected under paragraph (1) is an authorized 
     committee of a candidate, the audit--
       ``(i) shall be commenced and actively undertaken within 6 
     months of the election for which the committee is authorized; 
     and
       ``(ii) may examine compliance with this Act only with 
     respect to that election.
       ``(3) Exception.--This subsection shall 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.

     ``SEC. 369. CONGRESSIONAL OVERSIGHT.

       ``Nothing in this Act shall be construed to limit, 
     restrict, or diminish any investigatory, informational, 
     oversight, supervisory, or disciplinary authority or function 
     of Congress or any committee of Congress with respect to 
     elections for Federal office.

                        ``CHAPTER 3--ENFORCEMENT

     ``SEC. 371. INITIATION OF ENFORCEMENT ACTIONS BY 
                   ADMINISTRATION.

       ``(a) In General.--The Administration may initiate a civil 
     enforcement action under section 373 if, after conducting an 
     investigation, the Administration finds reasonable grounds to 
     believe that a violation of this Act or of chapter 95 or 96 
     of the Internal Revenue Code of 1986 has occurred or is about 
     to occur.
       ``(b) Basis for Findings.--The Administration may make a 
     finding under subsection (a) based on any information 
     available to the Administration, including the filing of a 
     complaint under section 372.
       ``(c) Notice and Opportunity To Demonstrate No Violation.--
     Prior to initiating an enforcement action under subsection 
     (a), the Administration shall give any person under 
     investigation notice and the opportunity to demonstrate that 
     there are no reasonable grounds to believe a violation has 
     occurred or is about to occur, but the Administration's 
     decision on such matter shall not be subject to judicial 
     review.

     ``SEC. 372. COMPLAINT TO INITIATE ENFORCEMENT ACTION.

       ``(a) Filing of Complaint.--
       ``(1) In general.--Any person may file a complaint with the 
     Administration alleging a violation of this Act or of chapter 
     95 or 96 of the Internal Revenue Code of 1986.
       ``(2) Technical requirements.--A complaint filed under 
     paragraph (1) shall be--
       ``(A) in writing, signed, and sworn to by the person filing 
     such complaint;
       ``(B) notarized; and
       ``(C) made under penalty of perjury and subject to the 
     provisions of section 1001 of title 18, United States Code.
       ``(3) Action by the administration.--Subject to paragraph 
     (4), based on the allegations in a complaint filed under 
     paragraph (1), and such investigations the Administration 
     deems necessary and appropriate, the Administration may--
       ``(A) initiate a civil enforcement action under section 373 
     if the Administration finds reasonable grounds to believe a 
     violation has occurred or is about to occur; or
       ``(B) dismiss the complaint.
       ``(4) Prohibition of anonymous complaints.--The Commission 
     may not conduct any investigation or take any other action 
     under this section solely on the basis of a complaint of a 
     person whose identity is not disclosed to the Administration.
       ``(5) Recovery of costs.--Any person who has filed a 
     complaint under paragraph (1) shall be entitled to recover 
     from the Administration up to $1,000 of the costs incurred in 
     preparing and filing the complaint if, based on the 
     complaint, the Administration--
       ``(A) makes a finding under section 373(a) that a person 
     has violated (or is about to violate) the Act; or
       ``(B) enters into a conciliation agreement with a person 
     under section 373(c).
       ``(b) Notice and Opportunity To Demonstrate No Violation.--
     Prior to initiating an enforcement action under subsection 
     (a)(3)(A), the Administration shall give any person named in 
     a complaint notice and an opportunity to demonstrate that 
     there are no reasonable grounds to believe a violation 
     described in such subsection has occurred or is about to 
     occur, but the Administration's determination under 
     subsection (a)(3) shall not be subject to judicial review in 
     an action brought by such person.
       ``(c) Failure by the Administration To Take Timely 
     Action.--
       ``(1) In general.--If the Administration--
       ``(A) dismisses a complaint filed under subsection (a); or
       ``(B) fails to initiate a civil enforcement action under 
     section 373 within 180 days of the filing of such a 
     complaint, the person filing the complaint under subsection 
     (a) may seek judicial review of the Administration's 
     dismissal, or failure to act, in Federal district court in 
     the District of Columbia or in the district in which such 
     person resides.
       ``(2) Scope of review.--The court shall review the 
     Administration's dismissal of the

[[Page S9087]]

     complaint or failure to act in accordance with the provisions 
     of section 706 of title 5, United States Code.
       ``(3) Court orders.--The court may order the Administration 
     to initiate an enforcement action or to conduct a further 
     investigation of the complaint within a time set by the 
     court.

     ``SEC. 373. CIVIL ENFORCEMENT ACTIONS.

       ``(a) In General.--The Administration shall have the 
     authority to impose a civil monetary penalty under section 
     375, issue a cease-and-desist order under section 376, or do 
     both, if the Administration finds, by an order made on the 
     record after notice and an opportunity for hearing before an 
     administrative law judge pursuant to subchapter II of chapter 
     5 of title 5, United States Code, that a person has violated 
     (or, in the case of a cease-and-desist order, has violated or 
     is about to violate) this Act or chapter 95 or 96 of the 
     Internal Revenue Code of 1986. The general counsel shall 
     represent the Administration in any proceeding before an 
     administrative law judge.
       ``(b) Notice and Request for Hearing.--
       ``(1) Notice.--If the Administration finds under section 
     371 or 372 that there are reasonable grounds to believe a 
     violation has occurred or is about to occur, the 
     Administration shall serve written notice of the charges on 
     each respondent, and shall conduct such further investigation 
     as the Administration deems necessary and appropriate.
       ``(2) Request for hearing.--Each respondent shall have an 
     opportunity to request, prior to the date that is 30 days 
     after the date on which the notice is received, a hearing on 
     the charges before an administrative law judge.
       ``(3) Effect of failure to request a hearing.--If no 
     hearing is requested, the Administration shall make a finding 
     on the charges, and shall issue whatever relief the 
     Administration deems appropriate under sections 375 and 376.
       ``(c) Conciliation.--
       ``(1) Procedures for entering into conciliation 
     agreements.--
       ``(A) In general.--If the respondent requests a hearing 
     under subsection (b)(2), the Administration shall attempt, 
     for a period that does not exceed 60 days (or 15 days if the 
     hearing is requested within 60 days of an election), to 
     correct or prevent such violation by informal methods of 
     conference, conciliation, and persuasion, and to enter into a 
     conciliation agreement with the respondent. In the case of a 
     hearing that is requested at a time other than within 60 days 
     of an election, the period for conciliation shall not be less 
     than 30 days unless an agreement is reached before then.
       ``(B) Inclusion of civil monetary penalties.--A 
     conciliation agreement may include a requirement that the 
     person involved in such conciliation shall pay a civil 
     monetary penalty that does not exceed the amounts set forth 
     in subsection (a) of section 375 or, in the case of a knowing 
     and willful violation, the amounts set forth in subsection 
     (b) of such section. The conciliation agreement may also 
     include the requirement that the person involved consent to 
     the terms of a cease-and-desist order, as provided in section 
     376.
       ``(C) Representation by general counsel.--The general 
     counsel shall represent the Administration in any 
     negotiations for a conciliation agreement and any such 
     conciliation agreement shall be subject to the approval of 
     the Administration.
       ``(D) Bar to further action.--A conciliation agreement, 
     unless violated, is a complete bar to any further action by 
     the Administration.
       ``(2) Confidentiality.--No action by the Administration or 
     any other person, and no information derived in connection 
     with any conciliation attempt by the Administration may be 
     made public by the Administration, without the written 
     consent of the respondent, except that if a conciliation 
     agreement is agreed upon and signed by the Administration and 
     the respondent, the Administration shall make such agreement 
     public.
       ``(3) Violation of conciliation agreement.--In any case in 
     which a person has entered into a conciliation agreement with 
     the Administration under paragraph (1), the Administration 
     may institute a civil action for relief if the Administration 
     believes the person has violated any provision of such 
     conciliation agreement. Such civil action shall be brought in 
     the Federal district court for the district in which the 
     respondent resides or has its principal place of business, or 
     for the District of Columbia. Such court shall have 
     jurisdiction to issue any relief appropriate under sections 
     375 and 376. For the Administration to obtain relief in any 
     such action, the Administration need only establish that the 
     person has violated, in whole or in part, any requirement of 
     such conciliation agreement.
       ``(d) Hearing.--At the request of any respondent, a hearing 
     on the charges served under subsection (b)(1) shall be 
     conducted before an administrative law judge, who shall make 
     such findings of fact and conclusions of law as the 
     administrative law judge deems appropriate. The 
     administrative law judge shall also have the authority to 
     impose a civil monetary penalty on the respondent, issue a 
     cease-and-desist order, or both. The decision of the 
     administrative law judge shall constitute final agency action 
     unless an appeal is taken under subsection (e).
       ``(e) Appeal to Administration.--
       ``(1) Right to appeal.--The general counsel and each 
     respondent shall each have a right to appeal to the 
     Administration from any final determination made by an 
     administrative law judge.
       ``(2) Review of alj determinations.--In the event of an 
     appeal under paragraph (1), the Administration shall review 
     the determination of the administrative law judge to 
     determine whether--
       ``(A) a finding of material fact is not supported by 
     substantial evidence;
       ``(B) a conclusion of law is erroneous;
       ``(C) the determination of the administrative law judge is 
     contrary to law or to the duly promulgated rules or decisions 
     of the Administration;
       ``(D) a prejudicial error of procedure was committed; or
       ``(E) the decision or the relief ordered is otherwise 
     arbitrary, capricious, or an abuse of discretion.
       ``(3) Final agency action.--The decision of the 
     Administration shall constitute final agency action.
       ``(f) Judicial Review.--
       ``(1) In general.--Any party aggrieved by a final agency 
     action and who has exhausted all administrative remedies, 
     including requesting a hearing before an administrative law 
     judge and appealing an adverse decision of an administrative 
     law judge to the Administration, may obtain judicial review 
     of such action in the United States Court of Appeals for any 
     circuit wherein such person resides or has its principal 
     place of business, or in the United States Court of Appeals 
     for the District of Columbia Circuit.
       ``(2) Scope of review.--For purposes of conducting the 
     judicial review described in paragraph (1), the provisions of 
     section 706 of title 5, United States Code, shall apply.
       ``(3) Petition for judicial review.--To obtain judicial 
     review under paragraph (1), an aggrieved party described in 
     such paragraph shall file a petition with the court during 
     the 30-day period beginning on the date on which the order 
     was issued. A copy of such petition shall be transmitted 
     forthwith by the clerk of the court to the Administration, 
     and thereupon the Administration shall file in the court the 
     record upon which the order complained of was entered, as 
     provided in section 2112 of title 28, United States Code.

     ``SEC. 374. NOTIFICATION OF NONFILERS.

       ``(a) Notification.--Before taking any action under section 
     373 against any person who has failed to file a report 
     required under section 304(a)(2)(A)(iii) for the calendar 
     quarter immediately preceding the election involved, or in 
     accordance with section 304(a)(2)(A)(i), the Administration 
     shall notify the person of such failure to file the required 
     reports.
       ``(b) Opportunity for Response.--If a satisfactory response 
     is not received within 4 business days after the date of 
     notification, the Administration shall, pursuant to section 
     367(a)(6), publish before the election the name of the person 
     and the report or reports such person has failed to file.

     ``SEC. 375. CIVIL MONETARY PENALTIES.

       ``(a) In General.--Any person who violates this Act, or 
     chapter 95 or 96 of the Internal Revenue Code of 1986, shall 
     be liable to the United States for a civil monetary penalty 
     for each violation which does not exceed the greater of 
     $5,000 or an amount equal to any contribution or expenditure 
     involved in such violation. Such penalty shall be imposed by 
     the Administration pursuant to section 373.
       ``(b) Knowing and Willful Violations.--Any person who 
     commits a knowing and willful violation of this Act, or of 
     chapter 95 or 96 of the Internal Revenue Code of 1986, shall 
     be liable to the United States for a civil monetary penalty 
     for each violation which does not exceed the greater of 
     $10,000 or an amount equal to 200 percent of any contribution 
     or expenditure involved in such violation (or, in the case of 
     a violation of section 320, which is not less than 300 
     percent of the amount involved in the violation and is not 
     more than the greater of $50,000 or 1,000 percent of the 
     amount involved in the violation). Such penalty shall be 
     imposed by the Administration pursuant to section 373.
       ``(c) Determination of Civil Monetary Penalty.--In 
     determining the amount of a civil monetary penalty under this 
     section with respect to a violation described in this 
     section, the Administration or an administrative law judge 
     shall take into account the nature, circumstances, extent, 
     and gravity of the violation and, with respect to the 
     violator, any prior violation, the degree of culpability, and 
     such other matters as justice may require.
       ``(d) Referral to Attorney General.--
       ``(1) In general.--If the Administration determines that a 
     knowing and willful violation of this Act which is subject to 
     section 379, or a knowing and willful violation of chapter 95 
     or 96 of the Internal Revenue Code of 1986, has occurred or 
     is about to occur, the Administration may refer such apparent 
     violation to the Attorney General without regard to any 
     limitations set forth under section 373.
       ``(2) Reporting by the attorney general.--Whenever the 
     Administration refers an apparent violation to the Attorney 
     General, the Attorney General shall report to the 
     Administration any action taken by the Attorney General 
     regarding the apparent violation. Each report shall be 
     transmitted within 60 days after the date the Administration 
     refers an apparent violation, and every 30 days thereafter 
     until the final disposition of the apparent violation.

[[Page S9088]]

     ``SEC. 376. CEASE-AND-DESIST ORDERS.

       ``(a) In General.--If the Administration finds, after 
     notice and opportunity for hearing under section 373, that 
     any person is violating, has violated, or is about to violate 
     any provision of this Act, or chapter 95 or 96 of the 
     Internal Revenue Code of 1986, or any rule or regulation 
     thereunder, the Administration may publish any findings and 
     enter an order requiring such person, or any other person 
     that is, was, or would be a cause of the violation due to an 
     act or omission the person knew or should have known would 
     contribute to such violation, to cease and desist from 
     committing or causing such violation and any future violation 
     of the same provision, rule, or regulation. Such order may, 
     in addition to requiring a person to cease and desist from 
     committing or causing a violation, require such person to 
     comply (or to take steps to effect compliance) with such 
     provision, rule, or regulation, upon such terms and 
     conditions and within such time as the Administration may 
     specify in such order.
       ``(b) Temporary Order.--Whenever the Administration 
     determines that an alleged violation or threatened violation 
     specified in the notice initiating a civil enforcement action 
     under section 373, or the continuation thereof, is likely to 
     result in violation of this Act, or of chapter 95 or 96 of 
     the Internal Revenue Code of 1986, and substantial harm to 
     the public interest, the Administration may apply to the 
     Federal district court for the district in which the 
     respondent resides or has its principal place of business, in 
     which the alleged or threatened violation occurred or is 
     about to occur, or for the District of Columbia, for a 
     temporary restraining order or a preliminary injunction 
     requiring the respondent to cease and desist from the 
     violation or threatened violation and to take such action to 
     prevent the violation or threatened violation. The 
     Administration may apply for such order without regard to any 
     limitation under section 373.

     ``SEC. 377. COLLECTION.

       ``If any person fails to pay an assessment of a civil 
     penalty--
       ``(1) after the order making the assessment has become a 
     final order and such person has not timely filed a petition 
     for judicial review of the order in accordance with section 
     373(f)(3) or if the order of the Administration is upheld 
     after judicial review; or
       ``(2) after a court in an action brought under section 
     373(c)(3) has entered a final judgment no longer subject to 
     appeal in favor of the Administration, the Attorney General 
     shall recover the amount assessed (plus interest at currently 
     prevailing rates from the date of the expiration of the 30-
     day period referred to in section 373(f)(3) or the date of 
     such final judgment, as the case may be) in an action brought 
     in any appropriate district court of the United States. In 
     such an action, the validity, amount, and appropriateness of 
     such penalty shall not be subject to review.

     ``SEC. 378. CONFIDENTIALITY.

       ``(a) Prior to a Finding of Reasonable Grounds.--Any 
     proceedings conducted by the Administration prior to a 
     finding that there are reasonable grounds to believe a 
     violation of the law has occurred or is about to occur, 
     including any investigation pursuant to section 371 or 
     pursuant to a complaint filed under section 372, shall be 
     confidential and none of the Administration's records 
     concerning the complaint shall be made public, except that 
     the person filing a complaint pursuant to section 372 is 
     permitted to make such complaint public.
       ``(b) After a Finding of Reasonable Grounds.--Except as 
     provided in subsection (d), if the Administration makes a 
     finding pursuant to section 371 or 372 that there are 
     reasonable grounds to believe that a violation of law has 
     occurred or is about to occur--
       ``(1) the finding of the Administration as well as any 
     complaint filed under section 372, any notice of charges, and 
     any answer or similar documents filed with the Administration 
     shall be made public; and
       ``(2) all proceedings conducted before an administrative 
     law judge under section 373, and all documents used during 
     such proceedings, shall be made public.
       ``(c) After Dismissal of a Complaint or Conclusion of 
     Proceedings Following a Finding of Reasonable Grounds.--
     Subject to subsection (d), following the Administration's 
     dismissal of a complaint filed under section 372 or the 
     termination of proceedings following a finding of reasonable 
     grounds under section 371 or 372, the Administration shall, 
     not later than the date that is 30 days after such dismissal 
     or termination, make public--
       ``(1) the complaint, any notice of charges, and any answer 
     or similar documents filed with the Administration (unless 
     such information has already been made public under 
     subsection (b)(1));
       ``(2) any order setting forth the Administration's final 
     action on the complaint;
       ``(3) any findings made by the Administration in relation 
     to the action; and
       ``(4) all documentary materials and testimony constituting 
     the record on which the Administration relied in taking its 
     actions.
     Subject to subsection (d), the affirmative disclosure 
     requirement of this subsection is without prejudice to the 
     right of any person to request and obtain records relating to 
     an investigation under section 552 of title 5, United States 
     Code.
       ``(d) Confidentiality of Records and Proceedings Otherwise 
     Subject to Disclosure.--
       ``(1) In general.--The Administration shall issue 
     regulations providing for the protection of information the 
     disclosure of which under subsection (b) or (c) would impair 
     any person's constitutionally protected right of privacy, 
     freedom of speech, or freedom of association. The 
     Administration shall also issue regulations addressing the 
     application of exemptions from disclosure contained in 
     section 552 of title 5, United States Code, to records 
     comprising the Administration's investigative files. Such 
     regulations shall consider the need to protect any person's 
     constitutionally protected rights to privacy, freedom of 
     speech, and freedom of association, as well as the need to 
     make information about the Administration's activities and 
     decisions widely accessible to the public.
       ``(2) Petition to maintain confidentiality.--
       ``(A) In general.--Any person who would be adversely 
     affected by any disclosure of information about the person 
     made pursuant to subsection (b) or (c), or by the conduct in 
     public of a hearing or other proceeding conducted pursuant to 
     section 373, shall have the right to petition the 
     Administration to maintain the confidentiality of such 
     information or such proceeding on the ground that such 
     information falls within the scope of any exemption from 
     disclosure contained in section 552 of title 5, United States 
     Code, or is prohibited from disclosure under the 
     Administration's regulations, the Constitution, or any other 
     provision of law. Upon the receipt of such petition, the 
     Administration shall make a prompt determination whether the 
     information should be kept confidential, and shall withhold 
     such information from disclosure pending this determination. 
     The Administration shall notify the petitioner in writing of 
     the determination.
       ``(B) Regulations.--The Administration shall prescribe 
     regulations governing the consideration of petitions under 
     this paragraph. Such regulations shall provide for public 
     notice of the pendancy of any petition filed under 
     subparagraph (A) and the right of any interested party to 
     respond to or comment on such petition.
       ``(e) Penalties.--Any member or employee of the 
     Administration, or any other person, who violates the 
     provisions of this section shall be fined not more than 
     $2,000. Any such member, employee, or other person who 
     knowingly and willfully violates the provisions of this 
     section shall be fined not more than $5,000.

     ``SEC. 379. CRIMINAL PENALTIES.

       ``(a) Knowing and Willful Violations.--Any person who 
     knowingly and willfully commits a violation of any provision 
     of this Act that involves the making, receiving, or reporting 
     of any contribution, donation, or expenditure--
       ``(1) aggregating $25,000 or more during a calendar year 
     shall be fined under title 18, United States Code, or 
     imprisoned for not more than 5 years, or both; or
       ``(2) aggregating $2,000 or more (but less than $25,000) 
     during a calendar year shall be fined under such title, or 
     imprisoned for not more than 1 year, or both.
       ``(b) Contributions or Expenditures by National Banks, 
     Corporations, or Labor Organizations.--In the case of a 
     knowing and willful violation of section 316(b)(3), the 
     penalties set forth in subsection (a) shall apply to each 
     violation involving an amount aggregating $250 or more during 
     a calendar year. Such a violation of section 316(b)(3) may 
     incorporate a violation of section 317(a), 320, or 321.
       ``(c) Fraudulent Misrepresentation of Campaign Authority.--
     In the case of a knowing and willful violation of section 
     322, the penalties set forth in subsection (a) shall apply 
     without regard to whether the making, receiving, or reporting 
     of a contribution or expenditure of $1,000 or more is 
     involved.
       ``(d) Prohibition of Contributions in Name of Another.--Any 
     person who knowingly and willfully commits a violation of 
     section 320 involving an amount aggregating more than $10,000 
     during a calendar year shall be--
       ``(1) imprisoned for not more than 2 years if the amount is 
     less than $25,000 and subject to imprisonment under 
     subsection (a) if the amount is $25,000 or more;
       ``(2) fined not less than 300 percent of the amount 
     involved in the violation and not more than the greater of--
       ``(A) $50,000; or
       ``(B) 1,000 percent of the amount involved in the 
     violation; or
       ``(3) both imprisoned as provided under paragraph (1) and 
     fined as provided under paragraph (2).
       ``(e) Effect of Conciliation Agreements.--
       ``(1) Evidence of lack of knowledge and intent.--In any 
     criminal action brought for a violation of any provision of 
     this Act or of chapter 95 or 96 of the Internal Revenue Code 
     of 1986, any defendant may evidence their lack of knowledge 
     or intent to commit the alleged violation by introducing as 
     evidence a conciliation agreement entered into between the 
     defendant and the Administration under section 373(c)(1) 
     which specifically deals with the act or failure to act 
     constituting such violation and which is still in effect.
       ``(2) Consideration by courts.--In any criminal action 
     brought for a violation of any provision of this Act or of 
     chapter 95 or 96 of the Internal Revenue Code of 1986, the 
     court before which such action is brought

[[Page S9089]]

     shall take into account, in weighing the seriousness of the 
     violation and in considering the appropriateness of the 
     penalty to be imposed if the defendant is found guilty, 
     whether--
       ``(A) the specific act or failure to act which constitutes 
     the violation for which the action was brought is the subject 
     of a conciliation agreement entered into between the 
     defendant and the Administration under section 373(c)(1);
       ``(B) the conciliation agreement is in effect; and
       ``(C) the defendant is, with respect to the violation 
     involved, in compliance with the conciliation agreement.

     ``SEC. 380. PERIOD OF LIMITATIONS.

       ``No person shall be prosecuted, tried, or punished for any 
     violation of this Act, unless the indictment is found or the 
     information is instituted within 5 years after the date of 
     the violation.

     ``SEC. 381. AUTHORIZATION OF APPROPRIATIONS.

       ``For each fiscal year, there are authorized to be 
     appropriated to the Administration such sums as may be 
     necessary for the purpose of carrying out its functions under 
     this Act and under chapters 95 and 96 of the Internal Revenue 
     Code of 1986.''.

     SEC. 102. EXECUTIVE SCHEDULE POSITIONS.

       (a) Executive Schedule Level III Position.--Section 5314 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``Chair, Federal Election Administration.''.
       (b) Executive Schedule Level IV Positions.--Section 5315 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``Members (other than the Chair), Federal Election 
     Administration.
       ``Staff Director, Federal Election Administration.
       ``Inspector General, Federal Election Administration.''.
       (c) Executive Schedule Level V Position.--Section 5316 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``General Counsel, Federal Election Administration.''.

     SEC. 103. GAO EXAMINATION OF ENFORCEMENT OF CAMPAIGN FINANCE 
                   LAWS BY THE DEPARTMENT OF JUSTICE.

       (a) Examination.--The Comptroller General of the United 
     States shall conduct a thorough examination of the 
     enforcement of the criminal provisions of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) and 
     chapters 95 and 96 of the Internal Revenue Code of 1986 by 
     the Attorney General.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Attorney General and Congress a report on the 
     examination conducted under subsection (a) together with 
     recommendations on how the Attorney General may improve the 
     enforcement of the criminal provisions of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) and 
     chapters 95 and 96 of the Internal Revenue Code of 1986, 
     including recommendations on the resources that the Attorney 
     General would require to effectively enforce such criminal 
     provisions.

     SEC. 104. GAO STUDY AND REPORT ON APPROPRIATE FUNDING LEVELS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct an ongoing study on the level of funding that 
     constitutes an adequate level of resources for the Federal 
     Election Administration to competently execute the 
     responsibilities imposed on the Administration by this Act.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, and once every 2 years thereafter, the 
     Comptroller General shall submit to the Director of the 
     Office of Management and Budget and Congress a report on the 
     study conducted under subsection (a) together with 
     recommendations for such legislation and administrative 
     action as the Comptroller General determines to be 
     appropriate.

     SEC. 105. CONFORMING AMENDMENTS.

       (a) Independent Agency.--Section 104 of title 5, United 
     States Code, is amended--
       (1) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) the Federal Election Administration.''.
       (b) Coverage Under Inspector General Act.--Section 8G(a)(2) 
     of the Inspector General Act of 1978 (5 U.S.C. App.) is 
     amended by striking ``Federal Election Commission'' and 
     inserting ``Federal Election Administration''.
       (c) Coverage of Personnel Under Hatch Act.--Section 7323(b) 
     of title 5, United States Code, is amended--
       (1) in paragraph (1), by striking ``Federal Election 
     Commission'' and inserting ``Federal Election 
     Administration''; and
       (2) in paragraph (2)(B)(i)(I), by striking ``Federal 
     Election Commission'' and inserting ``Federal Election 
     Administration''.
       (d) Exclusion From Senior Executive Service.--Section 
     3132(a)(1)(C) of title 5, United States Code, is amended by 
     striking ``Federal Election Commission'' and inserting 
     ``Federal Election Administration''.
       (e) Subtitle A.--Title III of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431 et seq.) is amended by inserting 
     before section 301 the following:

                  ``Subtitle A--General Provisions''.

                    TITLE II--TRANSITION PROVISIONS

     SEC. 201. TRANSFER OF FUNCTIONS OF FEDERAL ELECTION 
                   COMMISSION.

       There are transferred to the Federal Election 
     Administration established under section 351 of the Federal 
     Election Campaign Act of 1971 (as added by section 101) all 
     functions that the Federal Election Commission exercised 
     before the date described in section 205(a).

     SEC. 202. TRANSFER OF PROPERTY, RECORDS, AND PERSONNEL.

       (a) Property and Records.--The contracts, liabilities, 
     records, property, and other assets and interests of, or made 
     available in connection with, the offices and functions of 
     the Federal Election Commission which are transferred by this 
     title are transferred to the Federal Election Administration.
       (b) Personnel.--The personnel employed in connection with 
     the offices and functions of the Federal Election Commission 
     which are transferred by this title are transferred to the 
     Federal Election Administration.

     SEC. 203. REPEALS.

       The following provisions of the Federal Election Campaign 
     Act of 1971 are repealed:
       (1) Section 306 (2 U.S.C. 437c).
       (2) Section 307 (2 U.S.C. 437d).
       (3) Section 308 (2 U.S.C. 437f).
       (4) Section 309 (2 U.S.C. 437g).
       (5) Section 310 (2 U.S.C. 437h).
       (6) Section 311 (2 U.S.C. 438).
       (7) Section 314 (2 U.S.C. 439c).
       (8) Section 406 (2 U.S.C. 455).

     SEC. 204. CONFORMING AMENDMENTS.

       (a) Title III of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 431 et seq.) is amended--
       (1) in section 301, by striking paragraph (10) and 
     inserting the following:
       ``(10) The term `Administration' means the Federal Election 
     Administration.'';
       (2) by striking ``Federal Election Commission'' and 
     inserting ``Administration'' each place it appears; and
       (3) by striking ``Commission'' and inserting 
     ``Administration'' each place it appears.
       (b) Section 3502(1)(B) of title 44, United States Code, is 
     amended by striking ``Federal Election Commission'' and 
     inserting ``Federal Election Administration''.
       (c) Section 207(j)(7)(B)(i) of title 18, United States 
     Code, is amended by striking ``the Federal Election 
     Commission by a former officer or employee of the Federal 
     Election Commission'' and inserting ``the Federal Election 
     Administration by a former officer or employee of the Federal 
     Election Commission or the Federal Election Administration''.
       (d) Section 103 of the Ethics in Government Act of 1978 (5 
     U.S.C. App.) is amended--
       (1) in subsection (e), by striking ``the Federal Election 
     Commission'' and inserting ``the Federal Election 
     Administration''; and
       (2) in subsection (k), by striking ``the Federal Election 
     Commission'' and inserting ``the Federal Election 
     Administration''.
       (e)(1) Section 9002(3) of the Internal Revenue Code of 1986 
     is amended to read as follows:
       ``(3) The term `Administration' means the Federal Election 
     Administration established under section 351 of the Federal 
     Election Campaign Act of 1971.''.
       (2) Chapter 95 of the Internal Revenue Code of 1986 is 
     amended by striking ``Commission'' and inserting 
     ``Administration'' each place it appears.
       (f)(1) Section 9032(3) of the Internal Revenue Code of 1986 
     is amended to read as follows:
       ``(3) The term `Administration' means the Federal Election 
     Administration established under section 351 of the Federal 
     Election Campaign Act of 1971.''.
       (2) Chapter 96 of the Internal Revenue Code of 1986 is 
     amended by striking ``Commission'' and inserting 
     ``Administration'' each place it appears.
       (g) Section 3(c) of the Voting Accessibility for the 
     Elderly and Handicapped Act (42 U.S.C. 1973ee-1(c)) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``Federal Election Commission'' and 
     inserting ``Federal Election Administration''; and
       (B) by striking ``Commission'' and inserting 
     ``Administration''; and
       (2) in paragraph (2), by striking ``Federal Election 
     Commission'' and inserting ``Federal Election 
     Administration''.
       (h) Section 6(9) of the Lobbying Disclosure Act 1995 (2 
     U.S.C. 1605(9)) is amended by striking ``the Federal Election 
     Commission'' and inserting ``the Federal Election 
     Administration''.

     SEC. 205. EFFECTIVE DATE.

       (a) In General.--This title and the amendments made by this 
     title shall take effect on the date that is 6 months after 
     the date of enactment of this Act.
       (b) Termination of the Federal Election Commission.--
     Notwithstanding any other provision of, or amendment made by, 
     this Act, the members of the Federal Election Commission 
     shall be removed from office on the date described in 
     subsection (a).

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