[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[House]
[Pages 1099-1152]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                               H.R. 2356

                         Offered By: Mr. Flake

                           [Shays Substitute]

       Amendment No. 4: Add at the end the following new title:

       TITLE VI--DISCLOSURE OF EXEMPT IN-KIND MEDIA EXPENDITURES

     SEC. 601. DISCLOSURE OF EXEMPT IN-KIND MEDIA EXPENDITURES

       (a) Disclosure Required for Exempt In-Kind Media 
     Expenditures.--Section 304 of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 434), as amended by sections 103, 201, 
     212, and 309(b), is further amended by adding at the end the 
     following new subsection:
       ``(i) Requiring Broadcaster Disclosure of Expenditures for 
     Voluntary Personal Appearances by Federal Candidates.--

[[Page 1100]]

       ``(1) In general.--A broadcast network or station which is 
     a corporate media outlet shall file a disclosure report under 
     this subsection with respect to each media expenditure 
     communication described in paragraph (2) (including a 
     communication described in such paragraph which is 
     rebroadcast by the network or station). For purposes of this 
     paragraph, a broadcast network shall be considered to have 
     aired such a communication if the network or any station 
     affiliated with the network airs the communication.
       ``(2) Media expenditure communication described.--A media 
     expenditure communication described in this paragraph is a 
     broadcast, cable, or satellite communication--
       ``(A) which features or depicts a clearly identified 
     candidate for Federal office in a voluntary appearance by the 
     candidate (including but not limited to an interview with the 
     candidate); and
       ``(B) which is aired by the network or station during the 
     60-day period (or, in the case of a primary election, during 
     the 30-day period) which ends on the date of the election for 
     the office sought by the candidate.
       ``(3) Deadline for filing disclosure report.--Reports under 
     this subsection shall be filed with the Commission not later 
     than 10 days after the network or station airs the media 
     expenditure communication involved.
       ``(4) Contents of report.--A report filed by a broadcasting 
     network or station under this subsection with respect to a 
     media expenditure communication shall contain the following 
     information:
       ``(A) The identification of the network or station.
       ``(B) The name of candidate featured or depicted in the 
     communication.
       ``(C) The date on which the communication aired and the 
     duration of the appearance of the candidate in the 
     communication, including the appearance of the candidate in 
     any promotional communications aired by the network or 
     station with respect to the communication.
       ``(D) The value of the exempt in-kind media expenditure (as 
     calculated in accordance with paragraph (5)) derived from the 
     airing of the communication, itemized separately (in the case 
     of a network) by each station affiliated with the network.
       ``(E) All other costs and expenses paid by the network or 
     station which are associated with the appearance of the 
     candidate in the communication, including (but not limited 
     to) transportation of the Federal candidate, makeup, 
     extraordinary production or transmission costs, promotions, 
     and website broadcasts, itemized separately by each such 
     category.
       ``(5) Determining value of exempt in-kind media 
     expenditures.--
       ``(A) In general.--The value of the exempt in-kind media 
     expenditure derived from the airing of a media expenditure 
     communication described in paragraph (2) by a broadcasting 
     network or station shall be equal to the product of the per 
     unit cost of the advertising sold by the network or station 
     for the time during which the communication is aired and the 
     duration of the appearance of the candidate involved in the 
     communication.
       ``(B) Special rule for national broadcasts.--In the case of 
     a communication which is aired on a nationwide broadcast--
       ``(i) the broadcasting network from which the broadcast 
     originates shall be responsible for calculating the value of 
     exempt in-kind media expenditures under subparagraph (A); and
       ``(ii) the value derived from the airing of the 
     communication by the network shall be increased by the value 
     derived from the airing of the communication (as determined 
     under subparagraph (A)) by each station affiliated with the 
     network.
       ``(6) Corporate media outlet defined.--In this subsection, 
     the term `corporate media outlet' means a corporation--
       ``(A) which is owned, operated, or controlled by any other 
     corporation, entity, or holding company;
       ``(B) which derives income from any service, product, 
     enterprise, or source other than advertising which appears 
     within the media broadcast outlet involved;
       ``(C) which receives funds directly or indirectly from any 
     level of government; or
       ``(D) which retains, employs, or otherwise engages the 
     services (directly or indirectly) of any lobbyist who 
     represents the corporation as a registered lobbyist at any 
     level of government.''.
       (b) Loss of Exemption From Treatment as Expenditure for 
     Communications Aired by Broadcasters Failing to File 
     Reports.--Section 301(9)(B)(i) of such Act (2 U.S.C. 
     431(9)(B)(i)) is amended by striking the semicolon at the end 
     and inserting the following: ``, except that if a broadcast 
     network or station which is a corporate media outlet (as 
     defined in section 304(i)) fails to meet the requirements of 
     section 304(i) with respect to the airing of an media 
     expenditure communication described in section 304(i)(2), 
     this clause shall not apply with respect to the 
     communication, and the airing of the communication shall be 
     treated as an in-kind contribution by the corporate media 
     outlet to the candidate featured or depicted in the 
     communication (in an amount equal to the value determined in 
     accordance with such section);''.

                               H.R. 2356

                       Offered By: Mr. Goodlatte

                            [Ney Substitute]

       Amendment No. 5: Insert after title III the following:

    TITLE IV--DISCLOSURE OF INFORMATION BY PERSONS CONDUCTING POLLS

     SEC. 401. DISCLOSURE OF INFORMATION BY PERSONS CONDUCTING 
                   POLLS DURING FEDERAL ELECTION CAMPAIGNS.

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


  ``disclosure of information by persons conducting polls by telephone

       ``Sec. 324. (a) Disclosures to Respondents.--Any person who 
     conducts a Federal election poll shall disclose to each 
     respondent the identity of the person sponsoring the poll or 
     paying the expenses associated with the poll, except that if 
     the poll is conducted more than 30 days before the date of 
     the election, the person shall only disclose such information 
     upon the request of the respondent.
       ``(b) Disclosures to Commission.--Any person who conducts a 
     Federal election poll--
       ``(1) shall report to the Commission the number of 
     households contacted and include with such report a copy of 
     the poll questions; and
       ``(2) in the case of a poll for which the results are not 
     to be made public, shall report to the Commission the total 
     cost of the poll and all sources of funds for the poll.
       ``(c) Definition.--In this section, the term `Federal 
     election poll' means a survey conducted by telephone or 
     electronic means--
       ``(1) in which the respondents are interviewed on opinions 
     relating to an election for Federal office; and
       ``(2) in which not fewer than 1,200 respondents are 
     surveyed.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to elections occurring after the 
     date of the enactment of this Act.

                               H.R. 2356

                       Offered By: Mr. Goodlatte

       Amendment No. 6: Add at the end of title III the following:

     SEC. 323. DISCLOSURE OF INFORMATION BY PERSONS CONDUCTING 
                   POLLS DURING FEDERAL ELECTION CAMPAIGNS.

       (a) In General.--Title III of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431 et seq.), as amended by sections 
     101, 319, and 322, is further amended by adding at the end 
     the following new section:


  ``disclosure of information by persons conducting polls by telephone

       ``Sec. 326. (a) Disclosures to Respondents.--Any person who 
     conducts a Federal election poll shall disclose to each 
     respondent the identity of the person sponsoring the poll or 
     paying the expenses associated with the poll, except that if 
     the poll is conducted more than 30 days before the date of 
     the election, the person shall only disclose such information 
     upon the request of the respondent.
       ``(b) Disclosures to Commission.--Any person who conducts a 
     Federal election poll--
       ``(1) shall report to the Commission the number of 
     households contacted and include with such report a copy of 
     the poll questions; and
       ``(2) in the case of a poll for which the results are not 
     to be made public, shall report to the Commission the total 
     cost of the poll and all sources of funds for the poll.
       ``(c) Definition.--In this section, the term `Federal 
     election poll' means a survey conducted by telephone or 
     electronic means--
       ``(1) in which the respondents are interviewed on opinions 
     relating to an election for Federal office; and
       ``(2) in which not fewer than 1,200 respondents are 
     surveyed.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to elections occurring after the 
     date of the enactment of this Act.

                               H.R. 2356

                       Offered By: Mr. Goodlatte

                           [Armey Substitute]

       Amendment No. 7: Add at the end the following:

    TITLE __--DISCLOSURE OF INFORMATION BY PERSONS CONDUCTING POLLS

     SEC. __. DISCLOSURE OF INFORMATION BY PERSONS CONDUCTING 
                   POLLS DURING FEDERAL ELECTION CAMPAIGNS.

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


  ``disclosure of information by persons conducting polls by telephone

       ``Sec. 323. (a) Disclosures to Respondents.--Any person who 
     conducts a Federal election poll shall disclose to each 
     respondent the identity of the person sponsoring the poll or 
     paying the expenses associated with the poll, except that if 
     the poll is conducted more than 30 days before the date of 
     the election, the person shall only disclose such information 
     upon the request of the respondent.

[[Page 1101]]

       ``(b) Disclosures to Commission.--Any person who conducts a 
     Federal election poll--
       ``(1) shall report to the Commission the number of 
     households contacted and include with such report a copy of 
     the poll questions; and
       ``(2) in the case of a poll for which the results are not 
     to be made public, shall report to the Commission the total 
     cost of the poll and all sources of funds for the poll.
       ``(c) Definition.--In this section, the term `Federal 
     election poll' means a survey conducted by telephone or 
     electronic means--
       ``(1) in which the respondents are interviewed on opinions 
     relating to an election for Federal office; and
       ``(2) in which not fewer than 1,200 respondents are 
     surveyed.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to elections occurring after the 
     date of the enactment of this Act.

                               H.R. 2356

                       Offered by: Mr. Goodlatte

                           [Shays Substitute]

       Amendment No. 8: Add at the end of title III the following:

     SEC. 320. DISCLOSURE OF INFORMATION BY PERSONS CONDUCTING 
                   POLLS DURING FEDERAL ELECTION CAMPAIGNS.

       (a) In General.--Title III of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431 et seq.), as amended by sections 
     101 and 319, is further amended by adding at the end the 
     following new section:


  ``disclosure of information by persons conducting polls by telephone

       ``Sec. 325. (a) Disclosures to Respondents.--Any person who 
     conducts a Federal election poll shall disclose to each 
     respondent the identity of the person sponsoring the poll or 
     paying the expenses associated with the poll, except that if 
     the poll is conducted more than 30 days before the date of 
     the election, the person shall only disclose such information 
     upon the request of the respondent.
       ``(b) Disclosures to Commission.--Any person who conducts a 
     Federal election poll--
       ``(1) shall report to the Commission the number of 
     households contacted and include with such report a copy of 
     the poll questions; and
       ``(2) in the case of a poll for which the results are not 
     to be made public, shall report to the Commission the total 
     cost of the poll and all sources of funds for the poll.
       ``(c) Definition.--In this section, the term `Federal 
     election poll' means a survey conducted by telephone or 
     electronic means--
       ``(1) in which the respondents are interviewed on opinions 
     relating to an election for Federal office; and
       ``(2) in which not fewer than 1,200 respondents are 
     surveyed.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to elections occurring after the 
     date of the enactment of this Act.

                               H.R. 2356

                         Offered By: Mr. Shays

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Bipartisan 
     Campaign Reform Act of 2002''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

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

              TITLE II--NONCANDIDATE CAMPAIGN EXPENDITURES

               Subtitle A--Electioneering Communications

Sec. 201. Disclosure of electioneering communications.
Sec. 202. Coordinated communications as contributions.
Sec. 203. Prohibition of corporate and labor disbursements for 
              electioneering communications.
Sec. 204. Rules relating to certain targeted electioneering 
              communications.

          Subtitle B--Independent and Coordinated Expenditures

Sec. 211. Definition of independent expenditure.
Sec. 212. Reporting requirements for certain independent expenditures.
Sec. 213. Independent versus coordinated expenditures by party.
Sec. 214. Coordination with candidates or political parties.

                        TITLE III--MISCELLANEOUS

Sec. 301. Use of contributed amounts for certain purposes.
Sec. 302. Prohibition of fundraising on Federal property.
Sec. 303. Strengthening foreign money ban.
Sec. 304. Modification of individual contribution limits in response to 
              expenditures from personal funds.
Sec. 305. Television media rates.
Sec. 306. Limitation on availability of lowest unit charge for Federal 
              candidates attacking opposition.
Sec. 307. Software for filing reports and prompt disclosure of 
              contributions.
Sec. 308. Modification of contribution limits.
Sec. 309. Donations to Presidential inaugural committee.
Sec. 310. Prohibition on fraudulent solicitation of funds.
Sec. 311. Study and report on Clean Money Clean Elections laws.
Sec. 312. Clarity standards for identification of sponsors of election-
              related advertising.
Sec. 313. Increase in penalties.
Sec. 314. Statute of limitations.
Sec. 315. Sentencing guidelines.
Sec. 316. Increase in penalties imposed for violations of conduit 
              contribution ban.
Sec. 317. Restriction on increased contribution limits by taking into 
              account candidate's available funds.
Sec. 318. Clarification of right of nationals of the United States to 
              make political contributions.
Sec. 319. Prohibition of contributions by minors.

                 TITLE IV--SEVERABILITY; EFFECTIVE DATE

Sec. 401. Severability.
Sec. 402. Effective date.
Sec. 403. Judicial review.

               TITLE V--ADDITIONAL DISCLOSURE PROVISIONS

Sec. 501. Internet access to records.
Sec. 502. Maintenance of website of election reports.
Sec. 503. Additional disclosure reports.
Sec. 504. Public access to broadcasting records.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

     SEC. 101. SOFT MONEY OF POLITICAL PARTIES.

       (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:

     ``SEC. 323. SOFT MONEY OF POLITICAL PARTIES.

       ``(a) National Committees.--
       ``(1) In general.--A national committee of a political 
     party (including a national congressional campaign committee 
     of a political party) may not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of funds 
     or any other thing of value, or spend any funds, that are not 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(2) Applicability.--The prohibition established by 
     paragraph (1) applies to any such national committee, any 
     officer or agent acting on behalf of such a national 
     committee, and any entity that is directly or indirectly 
     established, financed, maintained, or controlled by such a 
     national committee.
       ``(b) State, District, and Local Committees.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     amount that is expended or disbursed for Federal election 
     activity by a State, district, or local committee of a 
     political party (including an entity that is directly or 
     indirectly established, financed, maintained, or controlled 
     by a State, district, or local committee of a political party 
     and an officer or agent acting on behalf of such committee or 
     entity), or by an association or similar group of candidates 
     for State or local office or of individuals holding State or 
     local office, shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(2) Applicability.--
       ``(A) In general.--Notwithstanding clause (i) or (ii) of 
     section 301(20)(A), and subject to subparagraph (B), 
     paragraph (1) shall not apply to any amount expended or 
     disbursed by a State, district, or local committee of a 
     political party for an activity described in either such 
     clause to the extent the amounts expended or disbursed for 
     such activity are allocated (under regulations prescribed by 
     the Commission) among amounts--
       ``(i) which consist solely of contributions subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act (other than amounts described in subparagraph (B)(iii)); 
     and
       ``(ii) other amounts which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act (other than any requirements of this subsection).
       ``(B) Conditions.--Subparagraph (A) shall only apply if--
       ``(i) the activity does not refer to a clearly identified 
     candidate for Federal office;
       ``(ii) the amounts expended or disbursed are not for the 
     costs of any broadcasting, cable, or satellite communication, 
     other than a communication which refers solely to a clearly 
     identified candidate for State or local office;
       ``(iii) the amounts expended or disbursed which are 
     described in subparagraph (A)(ii) are paid from amounts which 
     are donated in accordance with State law and which meet the 
     requirements of subparagraph (C), except that no person 
     (including any person established, financed, maintained, or 
     controlled

[[Page 1102]]

     by such person) may donate more than $10,000 to a State, 
     district, or local committee of a political party in a 
     calendar year for such expenditures or disbursements; and
       ``(iv) the amounts expended or disbursed are made solely 
     from funds raised by the State, local, or district committee 
     which makes such expenditure or disbursement, and do not 
     include any funds provided to such committee from--

       ``(I) any other State, local, or district committee of any 
     State party,
       ``(II) the national committee of a political party 
     (including a national congressional campaign committee of a 
     political party),
       ``(III) any officer or agent acting on behalf of any 
     committee described in subclause (I) or (II), or
       ``(IV) any entity directly or indirectly established, 
     financed, maintained, or controlled by any committee 
     described in subclause (I) or (II).

       ``(C) Prohibiting involvement of national parties, federal 
     candidates and officeholders, and state parties acting 
     jointly.--Notwithstanding subsection (e) (other than 
     subsection (e)(3)), amounts specifically authorized to be 
     spent under subparagraph (B)(iii) meet the requirements of 
     this subparagraph only if the amounts--
       ``(i) are not solicited, received, directed, transferred, 
     or spent by or in the name of any person described in 
     subsection (a) or (e); and
       ``(ii) are not solicited, received, or directed through 
     fundraising activities conducted jointly by 2 or more State, 
     local, or district committees of any political party or their 
     agents, or by a State, local, or district committee of a 
     political party on behalf of the State, local, or district 
     committee of a political party or its agent in one or more 
     other States.
       ``(c) Fundraising Costs.--An amount spent by a person 
     described in subsection (a) or (b) to raise funds that are 
     used, in whole or in part, for expenditures and disbursements 
     for a Federal election activity shall be made from funds 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(d) Tax-Exempt Organizations.--A national, State, 
     district, or local committee of a political party (including 
     a national congressional campaign committee of a political 
     party), an entity that is directly or indirectly established, 
     financed, maintained, or controlled by any such national, 
     State, district, or local committee or its agent, and an 
     officer or agent acting on behalf of any such party committee 
     or entity, shall not solicit any funds for, or make or direct 
     any donations to--
       ``(1) an organization that is described in section 501(c) 
     of the Internal Revenue Code of 1986 and exempt from taxation 
     under section 501(a) of such Code (or has submitted an 
     application for determination of tax exempt status under such 
     section) and that makes expenditures or disbursements in 
     connection with an election for Federal office (including 
     expenditures or disbursements for Federal election activity); 
     or
       ``(2) an organization described in section 527 of such Code 
     (other than a political committee, a State, district, or 
     local committee of a political party, or the authorized 
     campaign committee of a candidate for State or local office).
       ``(e) Federal Candidates.--
       ``(1) In general.--A candidate, individual holding Federal 
     office, agent of a candidate or an individual holding Federal 
     office, or an entity directly or indirectly established, 
     financed, maintained or controlled by or acting on behalf of 
     1 or more candidates or individuals holding Federal office, 
     shall not--
       ``(A) solicit, receive, direct, transfer, or spend funds in 
     connection with an election for Federal office, including 
     funds for any Federal election activity, unless the funds are 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act; or
       ``(B) solicit, receive, direct, transfer, or spend funds in 
     connection with any election other than an election for 
     Federal office or disburse funds in connection with such an 
     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), (2), and (3) of section 
     315(a); and
       ``(ii) are not from sources prohibited by this Act from 
     making contributions in connection with an election for 
     Federal office.
       ``(2) State law.--Paragraph (1) does not apply to the 
     solicitation, receipt, or spending of funds by an individual 
     described in such paragraph who is or was also a candidate 
     for a State or local office solely in connection with such 
     election for State or local office if the solicitation, 
     receipt, or spending of funds is permitted under State law 
     and refers only to such State or local candidate, or to any 
     other candidate for the State or local office sought by such 
     candidate, or both.
       ``(3) Fundraising events.--Notwithstanding paragraph (1) or 
     subsection (b)(2)(C), a candidate or an individual holding 
     Federal office may attend, speak, or be a featured guest at a 
     fundraising event for a State, district, or local committee 
     of a political party.
       ``(4) Permitting certain solicitations.--
       ``(A) General solicitations.--Notwithstanding any other 
     provision of this subsection, an individual described in 
     paragraph (1) may make a general solicitation of funds on 
     behalf of any organization that is described in section 
     501(c) of the Internal Revenue Code of 1986 and exempt from 
     taxation under section 501(a) of such Code (or has submitted 
     an application for determination of tax exempt status under 
     such section) (other than an entity whose principal purpose 
     is to conduct activities described in clauses (i) and (ii) of 
     section 301(20)(A)) where such solicitation does not specify 
     how the funds will or should be spent.
       ``(B) Certain specific solicitations.--In addition to the 
     general solicitations permitted under subparagraph (A), an 
     individual described in paragraph (1) may make a solicitation 
     explicitly to obtain funds for carrying out the activities 
     described in clauses (i) and (ii) of section 301(20)(A), or 
     for an entity whose principal purpose is to conduct such 
     activities, if--
       ``(i) the solicitation is made only to individuals; and
       ``(ii) the amount solicited from any individual during any 
     calendar year does not exceed $20,000.
       ``(f) State Candidates.--
       ``(1) In general.--A candidate for State or local office, 
     individual holding State or local office, or an agent of such 
     a candidate or individual may not spend any funds for a 
     communication described in section 301(20)(A)(iii) unless the 
     funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(2) Exception for certain communications.--Paragraph (1) 
     shall not apply to an individual described in such paragraph 
     if the communication involved is in connection with an 
     election for such State or local office and refers only to 
     such individual or to any other candidate for the State or 
     local office held or sought by such individual, or both.''.
       (b) Definitions.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431) is amended by adding at 
     the end thereof the following:
       ``(20) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot);
       ``(iii) a public communication that refers to a clearly 
     identified candidate for Federal office (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) services provided during any month by an employee of 
     a State, district, or local committee of a political party 
     who spends more than 25 percent of that individual's 
     compensated time during that month on activities in 
     connection with a Federal election.
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) a public communication that refers solely to a 
     clearly identified candidate for State or local office, if 
     the communication is not a Federal election activity 
     described in subparagraph (A)(i) or (ii);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated to pay 
     for a Federal election activity described in subparagraph 
     (A);
       ``(iii) the costs of a State, district, or local political 
     convention;
       ``(iv) the costs of grassroots campaign materials, 
     including buttons, bumper stickers, and yard signs, that name 
     or depict only a candidate for State or local office; and
       ``(v) the cost of constructing or purchasing an office 
     facility or equipment for a State, district, or local 
     committee.
       ``(21) Generic campaign activity.--The term `generic 
     campaign activity' means a campaign activity that promotes a 
     political party and does not promote a candidate or non-
     Federal candidate.
       ``(22) Public communication.--The term `public 
     communication' means a communication by means of any 
     broadcast, cable, or satellite communication, newspaper, 
     magazine, outdoor advertising facility, mass mailing, or 
     telephone bank to the general public, or any other form of 
     general public political advertising.
       ``(23) Mass mailing.--The term `mass mailing' means a 
     mailing by United States mail or facsimile of more than 500 
     pieces of mail matter of an identical or substantially 
     similar nature within any 30-day period.
       ``(24) Telephone bank.--The term `telephone bank' means 
     more than 500 telephone calls of an identical or 
     substantially similar nature within any 30-day period.''.

[[Page 1103]]



     SEC. 102. INCREASED CONTRIBUTION LIMIT FOR STATE COMMITTEES 
                   OF POLITICAL PARTIES.

       Section 315(a)(1) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(1)) is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.

     SEC. 103. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) is amended by 
     adding at the end the following:
       ``(e) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any national 
     congressional campaign committee of a political party, and 
     any subordinate committee of either, shall report all 
     receipts and disbursements during the reporting period.
       ``(2) Other political committees to which section 323 
     applies.--
       ``(A) In general.--In addition to any other reporting 
     requirements applicable under this Act, a political committee 
     (not described in paragraph (1)) to which section 323(b)(1) 
     applies shall report all receipts and disbursements made for 
     activities described in section 301(20)(A), unless the 
     aggregate amount of such receipts and disbursements during 
     the calendar year is less than $5,000.
       ``(B) Specific disclosure by state and local parties of 
     certain nonfederal amounts permitted to be spent on federal 
     election activity.--Each report by a political committee 
     under subparagraph (A) of receipts and disbursements made for 
     activities described in section 301(20)(A) shall include a 
     disclosure of all receipts and disbursements described in 
     section 323(b)(2)(A) and (B).
       ``(3) Itemization.--If a political committee has receipts 
     or disbursements to which this subsection applies from or to 
     any person aggregating in excess of $200 for any calendar 
     year, the political committee shall separately itemize its 
     reporting for such person in the same manner as required in 
     paragraphs (3)(A), (5), and (6) of subsection (b).
       ``(4) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods required for political committees under subsection 
     (a)(4)(B).''.
       (b) Building Fund Exception to the Definition of 
     Contribution.--Section 301(8)(B) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xv) as clauses 
     (viii) through (xiv), respectively.

              TITLE II--NONCANDIDATE CAMPAIGN EXPENDITURES

               Subtitle A--Electioneering Communications

     SEC. 201. DISCLOSURE OF ELECTIONEERING COMMUNICATIONS.

       (a) In General.--Section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434), as amended by section 
     103, is amended by adding at the end the following new 
     subsection:
       ``(f) Disclosure of Electioneering Communications.--
       ``(1) Statement required.--Every person who makes a 
     disbursement for the direct costs of producing and airing 
     electioneering communications in an aggregate amount in 
     excess of $10,000 during any calendar year shall, within 24 
     hours of each disclosure date, file with the Commission a 
     statement containing the information described in paragraph 
     (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any person sharing or exercising direction 
     or control over the activities of such person, and of the 
     custodian of the books and accounts of the person making the 
     disbursement.
       ``(B) The principal place of business of the person making 
     the disbursement, if not an individual.
       ``(C) The amount of each disbursement of more than $200 
     during the period covered by the statement and the 
     identification of the person to whom the disbursement was 
     made.
       ``(D) The elections to which the electioneering 
     communications pertain and the names (if known) of the 
     candidates identified or to be identified.
       ``(E) If the disbursements were paid out of a segregated 
     bank account which consists of funds contributed solely by 
     individuals who are United States citizens or nationals or 
     lawfully admitted for permanent residence as defined in 
     section 1101(a)(2) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(2)) directly to this account for 
     electioneering communications, the names and addresses of all 
     contributors who contributed an aggregate amount of $1,000 or 
     more to that account during the period beginning on the first 
     day of the preceding calendar year and ending on the 
     disclosure date. Nothing in this subparagraph is to be 
     construed as a prohibition on the use of funds in such a 
     segregated account for a purpose other than electioneering 
     communications.
       ``(F) If the disbursements were paid out of funds not 
     described in subparagraph (E), the names and addresses of all 
     contributors who contributed an aggregate amount of $1,000 or 
     more to the person making the disbursement during the period 
     beginning on the first day of the preceding calendar year and 
     ending on the disclosure date.
       ``(3) Electioneering communication.--For purposes of this 
     subsection--
       ``(A) In general.--(i) The term `electioneering 
     communication' means any broadcast, cable, or satellite 
     communication which--
       ``(I) refers to a clearly identified candidate for Federal 
     office;
       ``(II) is made within--

       ``(aa) 60 days before a general, special, or runoff 
     election for the office sought by the candidate; or
       ``(bb) 30 days before a primary or preference election, or 
     a convention or caucus of a political party that has 
     authority to nominate a candidate, for the office sought by 
     the candidate; and

       ``(III) in the case of a communication which refers to a 
     candidate for an office other than President or Vice 
     President, is targeted to the relevant electorate.
       ``(ii) If clause (i) is held to be constitutionally 
     insufficient by final judicial decision to support the 
     regulation provided herein, then the term `electioneering 
     communication' means any broadcast, cable, or satellite 
     communication which promotes or supports a candidate for that 
     office, or attacks or opposes a candidate for that office 
     (regardless of whether the communication expressly advocates 
     a vote for or against a candidate) and which also is 
     suggestive of no plausible meaning other than an exhortation 
     to vote for or against a specific candidate. Nothing in this 
     subparagraph shall be construed to affect the interpretation 
     or application of section 100.22(b) of title 11, Code of 
     Federal Regulations.
       ``(B) Exceptions.--The term `electioneering communication' 
     does not include--
       ``(i) a communication appearing in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, unless such facilities are owned 
     or controlled by any political party, political committee, or 
     candidate;
       ``(ii) a communication which constitutes an expenditure or 
     an independent expenditure under this Act;
       ``(iii) a communication which constitutes a candidate 
     debate or forum conducted pursuant to regulations adopted by 
     the Commission, or which solely promotes such a debate or 
     forum and is made by or on behalf of the person sponsoring 
     the debate or forum; or
       ``(iv) any other communication exempted under such 
     regulations as the Commission may promulgate (consistent with 
     the requirements of this paragraph) to ensure the appropriate 
     implementation of this paragraph, except that under any such 
     regulation a communication may not be exempted if it meets 
     the requirements of this paragraph and is described in 
     section 301(20)(A)(iii).
       ``(C) Targeting to relevant electorate.--For purposes of 
     this paragraph, a communication which refers to a clearly 
     identified candidate for Federal office is `targeted to the 
     relevant electorate' if the communication can be received by 
     50,000 or more persons--
       ``(i) in the district the candidate seeks to represent, in 
     the case of a candidate for Representative in, or Delegate or 
     Resident Commissioner to, the Congress; or
       ``(ii) in the State the candidate seeks to represent, in 
     the case of a candidate for Senator.
       ``(4) Disclosure date.--For purposes of this subsection, 
     the term `disclosure date' means--
       ``(A) the first date during any calendar year by which a 
     person has made disbursements for the direct costs of 
     producing or airing electioneering communications aggregating 
     in excess of $10,000; and
       ``(B) any other date during such calendar year by which a 
     person has made disbursements for the direct costs of 
     producing or airing electioneering communications aggregating 
     in excess of $10,000 since the most recent disclosure date 
     for such calendar year.
       ``(5) Contracts to disburse.--For purposes of this 
     subsection, a person shall be treated as having made a 
     disbursement if the person has executed a contract to make 
     the disbursement.
       ``(6) Coordination with other requirements.--Any 
     requirement to report under this subsection shall be in 
     addition to any other reporting requirement under this Act.
       ``(7) Coordination with Internal Revenue Code.--Nothing in 
     this subsection may be construed to establish, modify, or 
     otherwise affect the definition of political activities or 
     electioneering activities (including the definition of 
     participating in, intervening in, or influencing or 
     attempting to influence a political campaign on behalf of or 
     in opposition to any candidate for public office) for 
     purposes of the Internal Revenue Code of 1986.''.

[[Page 1104]]

       (b) Responsibilities of Federal Communications 
     Commission.--The Federal Communications Commission shall 
     compile and maintain any information the Federal Election 
     Commission may require to carry out section 304(f) of the 
     Federal Election Campaign Act of 1971 (as added by subsection 
     (a)), and shall make such information available to the public 
     on the Federal Communication Commission's website.

     SEC. 202. COORDINATED COMMUNICATIONS AS CONTRIBUTIONS.

       Section 315(a)(7) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(a)(7)) is amended --
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) if--
       ``(i) any person makes, or contracts to make, any 
     disbursement for any electioneering communication (within the 
     meaning of section 304(f)(3)); and
       ``(ii) such disbursement is coordinated with a candidate or 
     an authorized committee of such candidate, a Federal, State, 
     or local political party or committee thereof, or an agent or 
     official of any such candidate, party, or committee;

     such disbursement or contracting shall be treated as a 
     contribution to the candidate supported by the electioneering 
     communication or that candidate's party and as an expenditure 
     by that candidate or that candidate's party; and''.

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

       (a) In General.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by 
     inserting ``or for any applicable electioneering 
     communication'' before ``, but shall not include''.
       (b) Applicable Electioneering Communication.--Section 316 
     of such Act is amended by adding at the end the following:
       ``(c) Rules Relating to Electioneering Communications.--
       ``(1) Applicable electioneering communication.--For 
     purposes of this section, the term `applicable electioneering 
     communication' means an electioneering communication (within 
     the meaning of section 304(f)(3)) which is made by any entity 
     described in subsection (a) of this section or by any other 
     person using funds donated by an entity described in 
     subsection (a) of this section.
       ``(2) Exception.--Notwithstanding paragraph (1), the term 
     `applicable electioneering communication' does not include a 
     communication by a section 501(c)(4) organization or a 
     political organization (as defined in section 527(e)(1) of 
     the Internal Revenue Code of 1986) made under section 
     304(f)(2)(E) or (F) of this Act if the communication is paid 
     for exclusively by funds provided directly by individuals who 
     are United States citizens or nationals or lawfully admitted 
     for permanent residence as defined in section 1101(a)(2) of 
     the Immigration and Nationality Act (8 U.S.C. 1101(a)(2)). 
     For purposes of the preceding sentence, the term `provided 
     directly by individuals' does not include funds the source of 
     which is an entity described in subsection (a) of this 
     section.
       ``(3) Special operating rules.--
       ``(A) Definition under paragraph (1).--An electioneering 
     communication shall be treated as made by an entity described 
     in subsection (a) if an entity described in subsection (a) 
     directly or indirectly disburses any amount for any of the 
     costs of the communication.
       ``(B) Exception under paragraph (2).--A section 501(c)(4) 
     organization that derives amounts from business activities or 
     receives funds from any entity described in subsection (a) 
     shall be considered to have paid for any communication out of 
     such amounts unless such organization paid for the 
     communication out of a segregated account to which only 
     individuals can contribute, as described in section 
     304(f)(2)(E).
       ``(4) Definitions and rules.--For purposes of this 
     subsection--
       ``(A) the term `section 501(c)(4) organization' means--
       ``(i) an organization described in section 501(c)(4) of the 
     Internal Revenue Code of 1986 and exempt from taxation under 
     section 501(a) of such Code; or
       ``(ii) an organization which has submitted an application 
     to the Internal Revenue Service for determination of its 
     status as an organization described in clause (i); and
       ``(B) a person shall be treated as having made a 
     disbursement if the person has executed a contract to make 
     the disbursement.
       ``(5) Coordination with internal revenue code.--Nothing in 
     this subsection shall be construed to authorize an 
     organization exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986 to carry out any activity which 
     is prohibited under such Code.''.

     SEC. 204. RULES RELATING TO CERTAIN TARGETED ELECTIONEERING 
                   COMMUNICATIONS.

       Section 316(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441b), as added by section 203, is amended by 
     adding at the end the following:
       ``(6) Special rules for targeted communications.--
       ``(A) Exception does not apply.--Paragraph (2) shall not 
     apply in the case of a targeted communication that is made by 
     an organization described in such paragraph.
       ``(B) Targeted communication.--For purposes of subparagraph 
     (A), the term `targeted communication' means an 
     electioneering communication (as defined in section 
     304(f)(3)) that is distributed from a television or radio 
     broadcast station or provider of cable or satellite 
     television service and, in the case of a communication which 
     refers to a candidate for an office other than President or 
     Vice President, is targeted to the relevant electorate.
       ``(C) Definition.--For purposes of this paragraph, a 
     communication is `targeted to the relevant electorate' if it 
     meets the requirements described in section 304(f)(3)(C).''.

          Subtitle B--Independent and Coordinated Expenditures

     SEC. 211. DEFINITION OF INDEPENDENT EXPENDITURE.

       Section 301 of the Federal Election Campaign Act (2 U.S.C. 
     431) is amended by striking paragraph (17) and inserting the 
     following:
       ``(17) Independent expenditure.--The term `independent 
     expenditure' means an expenditure by a person--
       ``(A) expressly advocating the election or defeat of a 
     clearly identified candidate; and
       ``(B) that is not made in concert or cooperation with or at 
     the request or suggestion of such candidate, the candidate's 
     authorized political committee, or their agents, or a 
     political party committee or its agents.''.

     SEC. 212. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       (a) In General.--Section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 
     201) is amended--
       (1) in subsection (c)(2), by striking the undesignated 
     matter after subparagraph (C); and
       (2) by adding at the end the following:
       ``(g) Time for Reporting Certain Expenditures.--
       ``(1) Expenditures aggregating $1,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes or contracts to make independent 
     expenditures aggregating $1,000 or more after the 20th day, 
     but more than 24 hours, before the date of an election shall 
     file a report describing the expenditures within 24 hours.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person shall file an additional 
     report within 24 hours after each time the person makes or 
     contracts to make independent expenditures aggregating an 
     additional $1,000 with respect to the same election as that 
     to which the initial report relates.
       ``(2) Expenditures aggregating $10,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes or contracts to make independent 
     expenditures aggregating $10,000 or more at any time up to 
     and including the 20th day before the date of an election 
     shall file a report describing the expenditures within 48 
     hours.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person shall file an additional 
     report within 48 hours after each time the person makes or 
     contracts to make independent expenditures aggregating an 
     additional $10,000 with respect to the same election as that 
     to which the initial report relates.
       ``(3) Place of filing; contents.--A report under this 
     subsection--
       ``(A) shall be filed with the Commission; and
       ``(B) shall contain the information required by subsection 
     (b)(6)(B)(iii), including the name of each candidate whom an 
     expenditure is intended to support or oppose.''.
       (b) Conforming Amendment.--Section 304(a)(5) of such Act (2 
     U.S.C. 434(a)(5)) is amended by striking ``, or the second 
     sentence of subsection (c)(2)''.

     SEC. 213. INDEPENDENT VERSUS COORDINATED EXPENDITURES BY 
                   PARTY.

       Section 315(d) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(d)) is amended--
       (1) in paragraph (1), by striking ``and (3)'' and inserting 
     ``, (3), and (4)''; and
       (2) by adding at the end the following:
       ``(4) Independent versus coordinated expenditures by 
     party.--
       ``(A) In general.--On or after the date on which a 
     political party nominates a candidate, no committee of the 
     political party may make--
       ``(i) any coordinated expenditure under this subsection 
     with respect to the candidate during the election cycle at 
     any time after it makes any independent expenditure (as 
     defined in section 301(17)) with respect to the candidate 
     during the election cycle; or
       ``(ii) any independent expenditure (as defined in section 
     301(17)) with respect to the candidate during the election 
     cycle at any time after it makes any coordinated expenditure 
     under this subsection with respect to the candidate during 
     the election cycle.
       ``(B) Application.--For purposes of this paragraph, all 
     political committees established and maintained by a national 
     political party (including all congressional campaign 
     committees) and all political committees established and 
     maintained by a State political party (including any 
     subordinate committee of a State committee) shall be 
     considered to be a single political committee.

[[Page 1105]]

       ``(C) Transfers.--A committee of a political party that 
     makes coordinated expenditures under this subsection with 
     respect to a candidate shall not, during an election cycle, 
     transfer any funds to, assign authority to make coordinated 
     expenditures under this subsection to, or receive a transfer 
     of funds from, a committee of the political party that has 
     made or intends to make an independent expenditure with 
     respect to the candidate.''.

     SEC. 214. COORDINATION WITH CANDIDATES OR POLITICAL PARTIES.

       (a) In General.--Section 315(a)(7)(B) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 441a(a)(7)(B)) is 
     amended--
       (A) by redesignating clause (ii) as clause (iii); and
       (B) by inserting after clause (i) the following new clause:
       ``(ii) expenditures made by any person (other than a 
     candidate or candidate's authorized committee) in 
     cooperation, consultation, or concert, with, or at the 
     request or suggestion of, a national, State, or local 
     committee of a political party, shall be considered to be 
     contributions made to such party committee; and''.
       (b) Repeal of Current Regulations.--The regulations on 
     coordinated communications paid for by persons other than 
     candidates, authorized committees of candidates, and party 
     committees adopted by the Federal Election Commission and 
     published in the Federal Register at page 76138 of volume 65, 
     Federal Register, on December 6, 2000, are repealed as of the 
     date by which the Commission is required to promulgate new 
     regulations under subsection (c) (as described in the second 
     sentence of section 402(c)).
       (c) Regulations by the Federal Election Commission.--The 
     Federal Election Commission shall promulgate new regulations 
     on coordinated communications paid for by persons other than 
     candidates, authorized committees of candidates, and party 
     committees. The regulations shall not require agreement or 
     formal collaboration to establish coordination. In addition 
     to any subject determined by the Commission, the regulations 
     shall address--
       (A) payments for the republication of campaign materials;
       (B) payments for the use of a common vendor;
       (C) payments for communications directed or made by persons 
     who previously served as an employee of a candidate or a 
     political party; and
       (D) payments for communications made by a person after 
     substantial discussion about the communication with a 
     candidate or a political party.
       (d) Meaning of Contribution or Expenditure for the Purposes 
     of Section 316.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure, as those terms are defined in 
     section 301, and also includes''.

                        TITLE III--MISCELLANEOUS

     SEC. 301. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) is amended by striking section 313 and 
     inserting the following:

     ``SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

       ``(a) Permitted Uses.--A contribution accepted by a 
     candidate, and any other donation received by an individual 
     as support for activities of the individual as a holder of 
     Federal office, may be used by the candidate or individual--
       ``(1) for otherwise authorized expenditures in connection 
     with the campaign for Federal office of the candidate or 
     individual;
       ``(2) for ordinary and necessary expenses incurred in 
     connection with duties of the individual as a holder of 
     Federal office;
       ``(3) for contributions to an organization described in 
     section 170(c) of the Internal Revenue Code of 1986; or
       ``(4) for transfers to a national, State, or local 
     committee of a political party.
       ``(b) Prohibited Use.--
       ``(1) In general.--A contribution or donation described in 
     subsection (a) shall not be converted by any person to 
     personal use.
       ``(2) Conversion.--For the purposes of paragraph (1), a 
     contribution or donation shall be considered to be converted 
     to personal use if the contribution or amount is used to 
     fulfill any commitment, obligation, or expense of a person 
     that would exist irrespective of the candidate's election 
     campaign or individual's duties as a holder of Federal 
     office, including--
       ``(A) a home mortgage, rent, or utility payment;
       ``(B) a clothing purchase;
       ``(C) a noncampaign-related automobile expense;
       ``(D) a country club membership;
       ``(E) a vacation or other noncampaign-related trip;
       ``(F) a household food item;
       ``(G) a tuition payment;
       ``(H) admission to a sporting event, concert, theater, or 
     other form of entertainment not associated with an election 
     campaign; and
       ``(I) dues, fees, and other payments to a health club or 
     recreational facility.''.

     SEC. 302. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY.

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

     SEC. 303. STRENGTHENING FOREIGN MONEY BAN.

       Section 319 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441e) is amended--
       (1) by striking the heading and inserting the following: 
     ``contributions and donations by foreign nationals''; and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for--
       ``(1) a foreign national, directly or indirectly, to make--
       ``(A) a contribution or donation of money or other thing of 
     value, or to make an express or implied promise to make a 
     contribution or donation, in connection with a Federal, 
     State, or local election;
       ``(B) a contribution or donation to a committee of a 
     political party; or
       ``(C) an expenditure, independent expenditure, or 
     disbursement for an electioneering communication (within the 
     meaning of section 304(f)(3)); or
       ``(2) a person to solicit, accept, or receive a 
     contribution or donation described in subparagraph (A) or (B) 
     of paragraph (1) from a foreign national.''.

     SEC. 304. MODIFICATION OF INDIVIDUAL CONTRIBUTION LIMITS IN 
                   RESPONSE TO EXPENDITURES FROM PERSONAL FUNDS.

       (a) Increased Limits for Individuals.--Section 315 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a) is 
     amended--
       (1) in subsection (a)(1), by striking ``No person'' and 
     inserting ``Except as provided in subsection (i), no 
     person''; and
       (2) by adding at the end the following:
       ``(i) Increased Limit To Allow Response to Expenditures 
     From Personal Funds.--
       ``(1) Increase.--
       ``(A) In general.--Subject to paragraph (2), if the 
     opposition personal funds amount with respect to a candidate 
     for election to the office of Senator exceeds the threshold 
     amount, the limit under subsection (a)(1)(A) (in this 
     subsection referred to as the `applicable limit') with 
     respect to that candidate shall be the increased limit.
       ``(B) Threshold amount.--
       ``(i) State-by-state competitive and fair campaign 
     formula.--In this subsection, the threshold amount with 
     respect to an election cycle of a candidate described in 
     subparagraph (A) is an amount equal to the sum of--

       ``(I) $150,000; and
       ``(II) $0.04 multiplied by the voting age population.

       ``(ii) Voting age population.--In this subparagraph, the 
     term `voting age population' means in the case of a candidate 
     for the office of Senator, the voting age population of the 
     State of the candidate (as certified under section 315(e)).
       ``(C) Increased limit.--Except as provided in clause (ii), 
     for purposes of subparagraph (A), if the opposition personal 
     funds amount is over--
       ``(i) 2 times the threshold amount, but not over 4 times 
     that amount--

       ``(I) the increased limit shall be 3 times the applicable 
     limit; and
       ``(II) the limit under subsection (a)(3) shall not apply 
     with respect to any contribution made with respect to a 
     candidate if such contribution is made under the increased 
     limit of subparagraph (A) during a period in which the 
     candidate may accept such a contribution;

       ``(ii) 4 times the threshold amount, but not over 10 times 
     that amount--

       ``(I) the increased limit shall be 6 times the applicable 
     limit; and
       ``(II) the limit under subsection (a)(3) shall not apply 
     with respect to any contribution made with respect to a 
     candidate if such contribution is made under the increased 
     limit of subparagraph (A) during a period in which the 
     candidate may accept such a contribution; and

       ``(iii) 10 times the threshold amount--

       ``(I) the increased limit shall be 6 times the applicable 
     limit;
       ``(II) the limit under subsection (a)(3) shall not apply 
     with respect to any contribution made with respect to a 
     candidate if such contribution is made under the increased 
     limit of subparagraph (A) during a period in which

[[Page 1106]]

     the candidate may accept such a contribution; and
       ``(III) the limits under subsection (d) with respect to any 
     expenditure by a State or national committee of a political 
     party shall not apply.

       ``(D) Opposition personal funds amount.--The opposition 
     personal funds amount is an amount equal to the excess (if 
     any) of--
       ``(i) the greatest aggregate amount of expenditures from 
     personal funds (as defined in section 304(a)(6)(B)) that an 
     opposing candidate in the same election makes; over
       ``(ii) the aggregate amount of expenditures from personal 
     funds made by the candidate with respect to the election.
       ``(2) Time to accept contributions under increased limit.--
       ``(A) In general.--Subject to subparagraph (B), a candidate 
     and the candidate's authorized committee shall not accept any 
     contribution, and a party committee shall not make any 
     expenditure, under the increased limit under paragraph (1)--
       ``(i) until the candidate has received notification of the 
     opposition personal funds amount under section 304(a)(6)(B); 
     and
       ``(ii) to the extent that such contribution, when added to 
     the aggregate amount of contributions previously accepted and 
     party expenditures previously made under the increased limits 
     under this subsection for the election cycle, exceeds 110 
     percent of the opposition personal funds amount.
       ``(B) Effect of withdrawal of an opposing candidate.--A 
     candidate and a candidate's authorized committee shall not 
     accept any contribution and a party shall not make any 
     expenditure under the increased limit after the date on which 
     an opposing candidate ceases to be a candidate to the extent 
     that the amount of such increased limit is attributable to 
     such an opposing candidate.
       ``(3) Disposal of excess contributions.--
       ``(A) In general.--The aggregate amount of contributions 
     accepted by a candidate or a candidate's authorized committee 
     under the increased limit under paragraph (1) and not 
     otherwise expended in connection with the election with 
     respect to which such contributions relate shall, not later 
     than 50 days after the date of such election, be used in the 
     manner described in subparagraph (B).
       ``(B) Return to contributors.--A candidate or a candidate's 
     authorized committee shall return the excess contribution to 
     the person who made the contribution.
       ``(j) Limitation on Repayment of Personal Loans.--Any 
     candidate who incurs personal loans made after the effective 
     date of the Bipartisan Campaign Reform Act of 2002 in 
     connection with the candidate's campaign for election shall 
     not repay (directly or indirectly), to the extent such loans 
     exceed $250,000, such loans from any contributions made to 
     such candidate or any authorized committee of such candidate 
     after the date of such election.''.
       (b) Notification of Expenditures From Personal Funds.--
     Section 304(a)(6) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 434(a)(6)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (E); 
     and
       (2) by inserting after subparagraph (A) the following:
       ``(B) Notification of expenditure from personal funds.--
       ``(i) Definition of expenditure from personal funds.--In 
     this subparagraph, the term `expenditure from personal funds' 
     means--
       ``(I) an expenditure made by a candidate using personal 
     funds; and
       ``(II) a contribution or loan made by a candidate using 
     personal funds or a loan secured using such funds to the 
     candidate's authorized committee.
       ``(ii) Declaration of intent.--Not later than the date that 
     is 15 days after the date on which an individual becomes a 
     candidate for the office of Senator, the candidate shall file 
     a declaration stating the total amount of expenditures from 
     personal funds that the candidate intends to make, or to 
     obligate to make, with respect to the election that will 
     exceed the State-by-State competitive and fair campaign 
     formula with--
       ``(I) the Commission; and
       ``(II) each candidate in the same election.

       ``(iii) Initial notification.--Not later than 24 hours 
     after a candidate described in clause (ii) makes or obligates 
     to make an aggregate amount of expenditures from personal 
     funds in excess of 2 times the threshold amount in connection 
     with any election, the candidate shall file a notification 
     with--
       ``(I) the Commission; and
       ``(II) each candidate in the same election.
       ``(iv) Additional notification.--After a candidate files an 
     initial notification under clause (iii), the candidate shall 
     file an additional notification each time expenditures from 
     personal funds are made or obligated to be made in an 
     aggregate amount that exceed $10,000 with--
       ``(I) the Commission; and
       ``(II) each candidate in the same election.
     Such notification shall be filed not later than 24 hours 
     after the expenditure is made.
       ``(v) Contents.--A notification under clause (iii) or (iv) 
     shall include--
       ``(I) the name of the candidate and the office sought by 
     the candidate;
       ``(II) the date and amount of each expenditure; and
       ``(III) the total amount of expenditures from personal 
     funds that the candidate has made, or obligated to make, with 
     respect to an election as of the date of the expenditure that 
     is the subject of the notification.
       ``(C) Notification of disposal of excess contributions.--In 
     the next regularly scheduled report after the date of the 
     election for which a candidate seeks nomination for election 
     to, or election to, Federal office, the candidate or the 
     candidate's authorized committee shall submit to the 
     Commission a report indicating the source and amount of any 
     excess contributions (as determined under paragraph (1) of 
     section 315(i)) and the manner in which the candidate or the 
     candidate's authorized committee used such funds.
       ``(D) Enforcement.--For provisions providing for the 
     enforcement of the reporting requirements under this 
     paragraph, see section 309.''.
       (c) Definitions.--Section 301 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431), as amended by section 
     101(b), is further amended by adding at the end the 
     following:
       ``(25) Election cycle.--The term `election cycle' means the 
     period beginning on the day after the date of the most recent 
     election for the specific office or seat that a candidate is 
     seeking and ending on the date of the next election for that 
     office or seat. For purposes of the preceding sentence, a 
     primary election and a general election shall be considered 
     to be separate elections.
       ``(26) Personal funds.--The term `personal funds' means an 
     amount that is derived from--
       ``(A) any asset that, under applicable State law, at the 
     time the individual became a candidate, the candidate had 
     legal right of access to or control over, and with respect to 
     which the candidate had--
       ``(i) legal and rightful title; or
       ``(ii) an equitable interest;
       ``(B) income received during the current election cycle of 
     the candidate, including--
       ``(i) a salary and other earned income from bona fide 
     employment;
       ``(ii) dividends and proceeds from the sale of the 
     candidate's stocks or other investments;
       ``(iii) bequests to the candidate;
       ``(iv) income from trusts established before the beginning 
     of the election cycle;
       ``(v) income from trusts established by bequest after the 
     beginning of the election cycle of which the candidate is the 
     beneficiary;
       ``(vi) gifts of a personal nature that had been customarily 
     received by the candidate prior to the beginning of the 
     election cycle; and
       ``(vii) proceeds from lotteries and similar legal games of 
     chance; and
       ``(C) a portion of assets that are jointly owned by the 
     candidate and the candidate's spouse equal to the candidate's 
     share of the asset under the instrument of conveyance or 
     ownership, but if no specific share is indicated by an 
     instrument of conveyance or ownership, the value of \1/2\ of 
     the property.''.

     SEC. 305. TELEVISION MEDIA RATES.

       (a) Lowest Unit Charge.--Subsection (b) of section 315 of 
     the Communications Act of 1934 (47 U.S.C. 315) is amended--
       (1) by striking ``(b) The charges'' and inserting the 
     following:
       ``(b) Charges.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     charges'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (3) by adding at the end the following:
       ``(2) Television.--The charges made for the use of any 
     television broadcast station, or by a provider of cable or 
     satellite television service, to any person who is a legally 
     qualified candidate for any public office in connection with 
     the campaign of such candidate for nomination for election, 
     or election, to such office shall not exceed, during the 
     periods referred to in paragraph (1)(A), the lowest charge of 
     the station (at any time during the 180-day period preceding 
     the date of the use) for the same amount of time for the same 
     period.''.
       (b) Rate Available for National Parties.--Section 315(b)(2) 
     of such Act (47 U.S.C. 315(b)(2), as added by subsection 
     (a)(3), is amended by inserting ``, or to a national 
     committee of a political party making expenditures under 
     section 315(d) of the Federal Election Campaign Act of 1971 
     on behalf of such candidate in connection with such 
     campaign,'' after ``such office''.
       (c) Preemption.--Section 315 of such Act (47 U.S.C. 315) is 
     amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Preemption.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     licensee shall not preempt the use of a television broadcast 
     station, or a provider of cable or satellite television 
     service, by an eligible candidate or political committee of a 
     political party who has purchased and paid for such use 
     pursuant to subsection (b)(2).
       ``(2) Circumstances beyond control of licensee.--If a 
     program to be broadcast by a

[[Page 1107]]

     television broadcast station, or a provider of cable or 
     satellite television service, is preempted because of 
     circumstances beyond the control of the station, any 
     candidate or party advertising spot scheduled to be broadcast 
     during that program may also be preempted.''.
       (d) Random Audits.--Section 315 of such Act (47 U.S.C. 
     315), as amended by subsection (c), is amended by inserting 
     after subsection (c) the following new subsection:
       ``(d) Random Audits.--
       ``(1) In general.--During the 45-day period preceding a 
     primary election and the 60-day period preceding a general 
     election, the Commission shall conduct random audits of 
     designated market areas to ensure that each television 
     broadcast station, and provider of cable or satellite 
     television service, in those markets is allocating television 
     broadcast advertising time in accordance with this section 
     and section 312.
       ``(2) Markets.--The random audits conducted under paragraph 
     (1) shall cover the following markets:
       ``(A) At least 6 of the top 50 largest designated market 
     areas (as defined in section 122(j)(2)(C) of title 17, United 
     States Code).
       ``(B) At least 3 of the 51-100 largest designated market 
     areas (as so defined).
       ``(C) At least 3 of the 101-150 largest designated market 
     areas (as so defined).
       ``(D) At least 3 of the 151-210 largest designated market 
     areas (as so defined).
       ``(3) Broadcast stations.--Each random audit shall include 
     each of the 3 largest television broadcast networks, 1 
     independent network, and 1 cable network.''.
       (e) Definition of Broadcasting Station.--Subsection (e)(1) 
     of section 315 of such Act (47 U.S.C. 315(e)(1)), as 
     redesignated by subsection (c)(1) of this section, is amended 
     by inserting ``, a television broadcast station, and a 
     provider of cable or satellite television service'' before 
     the semicolon.
       (f) Stylistic Amendments.--Section 315 of such Act (47 
     U.S.C. 315) is amended--
       (1) in subsection (a), by inserting ``In General.--'' 
     before ``If any'';
       (2) in subsection (e), as redesignated by subsection (c)(1) 
     of this section, by inserting ``Definitions.--'' before ``For 
     purposes''; and
       (3) in subsection (f), as so redesignated, by inserting 
     ``Regulations.--'' before ``The Commission''.

     SEC. 306. LIMITATION ON AVAILABILITY OF LOWEST UNIT CHARGE 
                   FOR FEDERAL CANDIDATES ATTACKING OPPOSITION.

       (a) In General.--Section 315(b) of the Communications Act 
     of 1934 (47 U.S.C. 315(b)), as amended by this Act, is 
     amended by adding at the end the following:
       ``(3) Content of broadcasts.--
       ``(A) In general.--In the case of a candidate for Federal 
     office, such candidate shall not be entitled to receive the 
     rate under paragraph (1)(A) or (2) for the use of any 
     broadcasting station unless the candidate provides written 
     certification to the broadcast station that the candidate 
     (and any authorized committee of the candidate) shall not 
     make any direct reference to another candidate for the same 
     office, in any broadcast using the rights and conditions of 
     access under this Act, unless such reference meets the 
     requirements of subparagraph (C) or (D).
       ``(B) Limitation on charges.--If a candidate for Federal 
     office (or any authorized committee of such candidate) makes 
     a reference described in subparagraph (A) in any broadcast 
     that does not meet the requirements of subparagraph (C) or 
     (D), such candidate shall not be entitled to receive the rate 
     under paragraph (1)(A) or (2) for such broadcast or any other 
     broadcast during any portion of the 45-day and 60-day periods 
     described in paragraph (1)(A), that occur on or after the 
     date of such broadcast, for election to such office.
       ``(C) Television broadcasts.--A candidate meets the 
     requirements of this subparagraph if, in the case of a 
     television broadcast, at the end of such broadcast there 
     appears simultaneously, for a period no less than 4 seconds--
       ``(i) a clearly identifiable photographic or similar image 
     of the candidate; and
       ``(ii) a clearly readable printed statement, identifying 
     the candidate and stating that the candidate has approved the 
     broadcast and that the candidate's authorized committee paid 
     for the broadcast.
       ``(D) Radio broadcasts.--A candidate meets the requirements 
     of this subparagraph if, in the case of a radio broadcast, 
     the broadcast includes a personal audio statement by the 
     candidate that identifies the candidate, the office the 
     candidate is seeking, and indicates that the candidate has 
     approved the broadcast.
       ``(E) Certification.--Certifications under this section 
     shall be provided and certified as accurate by the candidate 
     (or any authorized committee of the candidate) at the time of 
     purchase.
       ``(F) Definitions.--For purposes of this paragraph, the 
     terms `authorized committee' and `Federal office' have the 
     meanings given such terms by section 301 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431).''.
       (b) Conforming Amendment.--Section 315(b)(1)(A) of the 
     Communications Act of 1934 (47 U.S.C. 315(b)(1)(A)), as 
     amended by this Act, is amended by inserting ``subject to 
     paragraph (3),'' before ``during the forty-five days''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to broadcasts made after the effective date of 
     this Act.

     SEC. 307. SOFTWARE FOR FILING REPORTS AND PROMPT DISCLOSURE 
                   OF CONTRIBUTIONS.

       Section 304(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(a)) is amended by adding at the end the 
     following:
       ``(12) Software for filing of reports.--
       ``(A) In general.--The Commission shall--
       ``(i) promulgate standards to be used by vendors to develop 
     software that--

       ``(I) permits candidates to easily record information 
     concerning receipts and disbursements required to be reported 
     under this Act at the time of the receipt or disbursement;
       ``(II) allows the information recorded under subclause (I) 
     to be transmitted immediately to the Commission; and
       ``(III) allows the Commission to post the information on 
     the Internet immediately upon receipt; and

       ``(ii) make a copy of software that meets the standards 
     promulgated under clause (i) available to each person 
     required to file a designation, statement, or report in 
     electronic form under this Act.
       ``(B) Additional information.--To the extent feasible, the 
     Commission shall require vendors to include in the software 
     developed under the standards under subparagraph (A) the 
     ability for any person to file any designation, statement, or 
     report required under this Act in electronic form.
       ``(C) Required use.--Notwithstanding any provision of this 
     Act relating to times for filing reports, each candidate for 
     Federal office (or that candidate's authorized committee) 
     shall use software that meets the standards promulgated under 
     this paragraph once such software is made available to such 
     candidate.
       ``(D) Required posting.--The Commission shall, as soon as 
     practicable, post on the Internet any information received 
     under this paragraph.''.

     SEC. 308. MODIFICATION OF CONTRIBUTION LIMITS.

       (a) Increase in Individual Limits for Certain 
     Contributions.--Section 315(a)(1) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``$1,000'' and 
     inserting the following: ``$2,000 (or, in the case of a 
     candidate for Representative in or Delegate or Resident 
     Commissioner to the Congress, $1,000)''; and
       (2) in subparagraph (B), by striking ``$20,000'' and 
     inserting ``$25,000''.
       (b) Increase in Annual Aggregate Limit on Individual 
     Contributions.--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) During the period which begins on January 1 of an 
     odd-numbered year and ends on December 31 of the next even-
     numbered year, no individual may make contributions 
     aggregating more than--
       ``(A) $37,500, in the case of contributions to candidates 
     and the authorized committees of candidates;
       ``(B) $57,500, in the case of any other contributions, of 
     which not more than $37,500 may be attributable to 
     contributions to political committees which are not political 
     committees of national political parties.''.
       (c) Increase in Senatorial Campaign Committee Limit.--
     Section 315(h) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(h)) is amended by striking ``$17,500'' and 
     inserting ``$35,000''.
       (d) Indexing of Contribution Limits.--Section 315(c) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(c)) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking the second and third sentences;
       (B) by inserting ``(A)'' before ``At the beginning''; and
       (C) by adding at the end the following:
       ``(B) Except as provided in subparagraph (C), in any 
     calendar year after 2002--
       ``(i) a limitation established by subsections (a)(1)(A), 
     (a)(1)(B), (a)(3), (b), (d), or (h) shall be increased by the 
     percent difference determined under subparagraph (A);
       ``(ii) each amount so increased shall remain in effect for 
     the calendar year; and
       ``(iii) if any amount after adjustment under clause (i) is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.
       ``(C) In the case of limitations under subsections 
     (a)(1)(A), (a)(1)(B), (a)(3), and (h), increases shall only 
     be made in odd-numbered years and such increases shall remain 
     in effect for the 2-year period beginning on the first day 
     following the date of the last general election in the year 
     preceding the year in which the amount is increased and 
     ending on the date of the next general election.''; and
       (2) in paragraph (2)(B), by striking ``means the calendar 
     year 1974'' and inserting ``means--
       ``(i) for purposes of subsections (b) and (d), calendar 
     year 1974; and
       ``(ii) for purposes of subsections (a)(1)(A), (a)(1)(B), 
     (a)(3), and (h), calendar year 2001''.
       (e) Effective Date.--The amendments made by this section 
     shall apply with respect

[[Page 1108]]

     to contributions made on or after January 1, 2003.

     SEC. 309. DONATIONS TO PRESIDENTIAL INAUGURAL COMMITTEE.

       (a) In General.--Chapter 5 of title 36, United States Code, 
     is amended by--
       (1) redesignating section 510 as section 511; and
       (2) inserting after section 509 the following:

     ``Sec. 510. Disclosure of and prohibition on certain 
       donations

       ``(a) In General.--A committee shall not be considered to 
     be the Inaugural Committee for purposes of this chapter 
     unless the committee agrees to, and meets, the requirements 
     of subsections (b) and (c).
       ``(b) Disclosure.--
       ``(1) In general.--Not later than the date that is 90 days 
     after the date of the Presidential inaugural ceremony, the 
     committee shall file a report with the Federal Election 
     Commission disclosing any donation of money or anything of 
     value made to the committee in an aggregate amount equal to 
     or greater than $200.
       ``(2) Contents of report.--A report filed under paragraph 
     (1) shall contain--
       ``(A) the amount of the donation;
       ``(B) the date the donation is received; and
       ``(C) the name and address of the person making the 
     donation.
       ``(c) Limitation.--The committee shall not accept any 
     donation from a foreign national (as defined in section 
     319(b) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     441e(b))).''.
       (b) Reports Made Available by FEC.--Section 304 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 434), as 
     amended by sections 103, 201, and 212 is amended by adding at 
     the end the following:
       ``(h) Reports From Inaugural Committees.--The Federal 
     Election Commission shall make any report filed by an 
     Inaugural Committee under section 510 of title 36, United 
     States Code, accessible to the public at the offices of the 
     Commission and on the Internet not later than 48 hours after 
     the report is received by the Commission.''.

     SEC. 310. PROHIBITION ON FRAUDULENT SOLICITATION OF FUNDS.

       Section 322 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441h) is amended--
       (1) by inserting ``(a) In General.--'' before ``No 
     person''; and
       (2) by adding at the end the following:
       ``(b) Fraudulent Solicitation of Funds.--No person shall--
       ``(1) fraudulently misrepresent the person as speaking, 
     writing, or otherwise acting for or on behalf of any 
     candidate or political party or employee or agent thereof for 
     the purpose of soliciting contributions or donations; or
       ``(2) willfully and knowingly participate in or conspire to 
     participate in any plan, scheme, or design to violate 
     paragraph (1).''.

     SEC. 311. STUDY AND REPORT ON CLEAN MONEY CLEAN ELECTIONS 
                   LAWS.

       (a) Clean Money Clean Elections Defined.--In this section, 
     the term ``clean money clean elections'' means funds received 
     under State laws that provide in whole or in part for the 
     public financing of election campaigns.
       (b) Study.--
       (1) In general.--The Comptroller General shall conduct a 
     study of the clean money clean elections of Arizona and 
     Maine.
       (2) Matters studied.--
       (A) Statistics on clean money clean elections candidates.--
     The Comptroller General shall determine--
       (i) the number of candidates who have chosen to run for 
     public office with clean money clean elections including--

       (I) the office for which they were candidates;
       (II) whether the candidate was an incumbent or a 
     challenger; and
       (III) whether the candidate was successful in the 
     candidate's bid for public office; and

       (ii) the number of races in which at least one candidate 
     ran an election with clean money clean elections.
       (B) Effects of clean money clean elections.--The 
     Comptroller General of the United States shall describe the 
     effects of public financing under the clean money clean 
     elections laws on the 2000 elections in Arizona and Maine.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to the Congress detailing the 
     results of the study conducted under subsection (b).

     SEC. 312. CLARITY STANDARDS FOR IDENTIFICATION OF SPONSORS OF 
                   ELECTION-RELATED ADVERTISING.

       Section 318 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441d) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (ii) by striking ``an expenditure'' and inserting ``a 
     disbursement''; and
       (iii) by striking ``direct''; and
       (iv) by inserting ``or makes a disbursement for an 
     electioneering communication (as defined in section 
     304(f)(3))'' after ``public political advertising''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address, telephone number, or World Wide Web address'' after 
     ``name''; and
       (2) by adding at the end the following:
       ``(c) Specification.--Any printed communication described 
     in subsection (a) shall--
       ``(1) be of sufficient type size to be clearly readable by 
     the recipient of the communication;
       ``(2) be contained in a printed box set apart from the 
     other contents of the communication; and
       ``(3) be printed with a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d) Additional Requirements.--
       ``(1) Communications by candidates or authorized persons.--
       ``(A) By radio.--Any communication described in paragraph 
     (1) or (2) of subsection (a) which is transmitted through 
     radio shall include, in addition to the requirements of that 
     paragraph, an audio statement by the candidate that 
     identifies the candidate and states that the candidate has 
     approved the communication.
       ``(B) By television.--Any communication described in 
     paragraph (1) or (2) of subsection (a) which is transmitted 
     through television shall include, in addition to the 
     requirements of that paragraph, a statement that identifies 
     the candidate and states that the candidate has approved the 
     communication. Such statement--
       ``(i) shall be conveyed by--

       ``(I) an unobscured, full-screen view of the candidate 
     making the statement, or
       ``(II) the candidate in voice-over, accompanied by a 
     clearly identifiable photographic or similar image of the 
     candidate; and

       ``(ii) shall also appear in writing at the end of the 
     communication in a clearly readable manner with a reasonable 
     degree of color contrast between the background and the 
     printed statement, for a period of at least 4 seconds.
       ``(2) Communications by others.--Any communication 
     described in paragraph (3) of subsection (a) which is 
     transmitted through radio or television shall include, in 
     addition to the requirements of that paragraph, in a clearly 
     spoken manner, the following audio statement: `_____ is 
     responsible for the content of this advertising.' (with the 
     blank to be filled in with the name of the political 
     committee or other person paying for the communication and 
     the name of any connected organization of the payor). If 
     transmitted through television, the statement shall be 
     conveyed by an unobscured, full-screen view of a 
     representative of the political committee or other person 
     making the statement, or by a representative of such 
     political committee or other person in voice-over, and shall 
     also appear in a clearly readable manner with a reasonable 
     degree of color contrast between the background and the 
     printed statement, for a period of at least 4 seconds.''.

     SEC. 313. INCREASE IN PENALTIES.

       (a) In General.--Subparagraph (A) of section 309(d)(1) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     437g(d)(1)(A)) is amended to read as follows:
       ``(A) Any person who knowingly and willfully commits a 
     violation of any provision of this Act which involves the 
     making, receiving, or reporting of any contribution, 
     donation, or expenditure--
       ``(i) 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
       ``(ii) 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 one year, or both.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to violations occurring on or after the effective 
     date of this Act.

     SEC. 314. STATUTE OF LIMITATIONS.

       (a) In General.--Section 406(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 455(a)) is amended by striking 
     ``3'' and inserting ``5''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to violations occurring on or after the effective 
     date of this Act.

     SEC. 315. SENTENCING GUIDELINES.

       (a) In General.--The United States Sentencing Commission 
     shall--
       (1) promulgate a guideline, or amend an existing guideline 
     under section 994 of title 28, United States Code, in 
     accordance with paragraph (2), for penalties for violations 
     of the Federal Election Campaign Act of 1971 and related 
     election laws; and
       (2) submit to Congress an explanation of any guidelines 
     promulgated under paragraph (1) and any legislative or 
     administrative recommendations regarding enforcement of the 
     Federal Election Campaign Act of 1971 and related election 
     laws.
       (b) Considerations.--The Commission shall provide 
     guidelines under subsection (a) taking into account the 
     following considerations:

[[Page 1109]]

       (1) Ensure that the sentencing guidelines and policy 
     statements reflect the serious nature of such violations and 
     the need for aggressive and appropriate law enforcement 
     action to prevent such violations.
       (2) Provide a sentencing enhancement for any person 
     convicted of such violation if such violation involves--
       (A) a contribution, donation, or expenditure from a foreign 
     source;
       (B) a large number of illegal transactions;
       (C) a large aggregate amount of illegal contributions, 
     donations, or expenditures;
       (D) the receipt or disbursement of governmental funds; and
       (E) an intent to achieve a benefit from the Federal 
     Government.
       (3) Assure reasonable consistency with other relevant 
     directives and guidelines of the Commission.
       (4) Account for aggravating or mitigating circumstances 
     that might justify exceptions, including circumstances for 
     which the sentencing guidelines currently provide sentencing 
     enhancements.
       (5) Assure the guidelines adequately meet the purposes of 
     sentencing under section 3553(a)(2) of title 18, United 
     States Code.
       (c) Effective Date; Emergency Authority To Promulgate 
     Guidelines.--
       (1) Effective date.--Notwithstanding section 402, the 
     United States Sentencing Commission shall promulgate 
     guidelines under this section not later than the later of--
       (A) 90 days after the effective date of this Act; or
       (B) 90 days after the date on which at least a majority of 
     the members of the Commission are appointed and holding 
     office.
       (2) Emergency authority to promulgate guidelines.--The 
     Commission shall promulgate guidelines under this section in 
     accordance with the procedures set forth in section 21(a) of 
     the Sentencing Reform Act of 1987, as though the authority 
     under such Act has not expired.

     SEC. 316. INCREASE IN PENALTIES IMPOSED FOR VIOLATIONS OF 
                   CONDUIT CONTRIBUTION BAN.

       (a) Increase in Civil Money Penalty for Knowing and Willful 
     Violations.--Section 309(a) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 437g(a)) is amended--
       (1) in paragraph (5)(B), by inserting before the period at 
     the end the following: ``(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 1000 percent of the amount involved in the 
     violation)''; and
       (2) in paragraph (6)(C), by inserting before the period at 
     the end the following: ``(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 1000 percent of the amount involved in the 
     violation)''.
       (b) Increase in Criminal Penalty.--Section 309(d)(1) of 
     such Act (2 U.S.C. 437g(d)(1)) is amended by adding at the 
     end the following new subparagraph:
       ``(D) 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--
       ``(i) imprisoned for not more than 2 years if the amount is 
     less than $25,000 (and subject to imprisonment under 
     subparagraph (A) if the amount is $25,000 or more);
       ``(ii) fined not less than 300 percent of the amount 
     involved in the violation and not more than the greater of--
       ``(I) $50,000; or
       ``(II) 1,000 percent of the amount involved in the 
     violation; or
       ``(iii) both imprisoned under clause (i) and fined under 
     clause (ii).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to violations occurring on or after 
     the effective date of this Act.

     SEC. 317. RESTRICTION ON INCREASED CONTRIBUTION LIMITS BY 
                   TAKING INTO ACCOUNT CANDIDATE'S AVAILABLE 
                   FUNDS.

       Section 315(i)(1) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441a(i)(1)), as added by this Act, is amended 
     by adding at the end the following:
       ``(E) Special rule for candidate's campaign funds.--
       ``(i) In general.--For purposes of determining the 
     aggregate amount of expenditures from personal funds under 
     subparagraph (D)(ii), such amount shall include the gross 
     receipts advantage of the candidate's authorized committee.
       ``(ii) Gross receipts advantage.--For purposes of clause 
     (i), the term `gross receipts advantage' means the excess, if 
     any, of--

       ``(I) the aggregate amount of 50 percent of gross receipts 
     of a candidate's authorized committee during any election 
     cycle (not including contributions from personal funds of the 
     candidate) that may be expended in connection with the 
     election, as determined on June 30 and December 31 of the 
     year preceding the year in which a general election is held, 
     over
       ``(II) the aggregate amount of 50 percent of gross receipts 
     of the opposing candidate's authorized committee during any 
     election cycle (not including contributions from personal 
     funds of the candidate) that may be expended in connection 
     with the election, as determined on June 30 and December 31 
     of the year preceding the year in which a general election is 
     held.''.

     SEC. 318. CLARIFICATION OF RIGHT OF NATIONALS OF THE UNITED 
                   STATES TO MAKE POLITICAL CONTRIBUTIONS.

       Section 319(b)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441e(b)(2)) is amended by inserting after 
     ``United States'' the following: ``or a national of the 
     United States (as defined in section 101(a)(22) of the 
     Immigration and Nationality Act)''.

     SEC. 319. PROHIBITION OF CONTRIBUTIONS BY MINORS.

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


                ``prohibition of contributions by minors

       ``Sec. 324. An individual who is 17 years old or younger 
     shall not make a contribution to a candidate or a 
     contribution or donation to a committee of a political 
     party.''.

                 TITLE IV--SEVERABILITY; EFFECTIVE DATE

     SEC. 401. SEVERABILITY.

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

     SEC. 402. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in section 
     308 and subsection (b), this Act and the amendments made by 
     this Act shall take effect November 6, 2002.
       (b) Transition Rule for Spending of Funds by National 
     Parties.--If a national committee of a political party 
     described in section 323(a)(1) of the Federal Election 
     Campaign Act of 1971 (as added by section 101(a)), including 
     any person who is subject to such section, has received funds 
     described in such section prior to the effective date 
     described in subsection (a), the following rules shall apply 
     with respect to the spending of such funds by such committee:
       (1) Prior to January 1, 2003, the committee may spend such 
     funds to retire outstanding debts or obligations incurred 
     prior to such effective date, so long as such debts or 
     obligations were incurred solely in connection with an 
     election held on or before November 5, 2002 (or any runoff 
     election or recount resulting from such an election).
       (2) At any time after such effective date, the committee 
     may spend such funds for activities which are solely to 
     defray the costs of the construction or purchase of any 
     office building or facility.
       (c) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Federal Election Commission 
     shall promulgate regulations to carry out title I of this Act 
     and the amendments made by such title. Not later than 270 
     days after the date of the enactment of this Act, the Federal 
     Election Commission shall promulgate regulations to carry out 
     all other titles of this Act and all other amendments made by 
     this Act which are under the Commission's jurisdiction.

     SEC. 403. JUDICIAL REVIEW.

       (a) Special Rules For Actions Brought on Constitutional 
     Grounds.--If any action is brought for declaratory or 
     injunctive relief to challenge the constitutionality of any 
     provision of this Act or any amendment made by this Act, the 
     following rules shall apply:
       (1) The action shall be filed in the United States District 
     Court for the District of Columbia and shall be heard by a 3-
     judge court convened pursuant to section 2284 of title 28, 
     United States Code.
       (2) A copy of the complaint shall be delivered promptly to 
     the Clerk of the House of Representatives and the Secretary 
     of the Senate.
       (3) A final decision in the action shall be reviewable only 
     by appeal directly to the Supreme Court of the United States. 
     Such appeal shall be taken by the filing of a notice of 
     appeal within 10 days, and the filing of a jurisdictional 
     statement within 30 days, of the entry of the final decision.
       (4) It shall be the duty of the United States District 
     Court for the District of Columbia and the Supreme Court of 
     the United States to advance on the docket and to expedite to 
     the greatest possible extent the disposition of the action 
     and appeal.
       (b) Intervention by Members of Congress.--In any action in 
     which the constitutionality of any provision of this Act or 
     any amendment made by this Act is raised (including but not 
     limited to an action described in subsection (a)), any member 
     of the House of Representatives (including a Delegate or 
     Resident Commissioner to the Congress) or Senate shall have 
     the right to intervene either in support of or opposition to 
     the position of a party to the case regarding the 
     constitutionality of the provision or amendment. To avoid 
     duplication of efforts and reduce the burdens placed on the 
     parties to the action, the court in any such action may make 
     such orders as it considers necessary, including orders to 
     require intervenors taking similar positions to file joint 
     papers or to be represented by a single attorney at oral 
     argument.

[[Page 1110]]



               TITLE V--ADDITIONAL DISCLOSURE PROVISIONS

     SEC. 501. INTERNET ACCESS TO RECORDS.

       Section 304(a)(11)(B) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 434(a)(11)(B)) is amended to read as 
     follows:
       ``(B) The Commission shall make a designation, statement, 
     report, or notification that is filed with the Commission 
     under this Act available for inspection by the public in the 
     offices of the Commission and accessible to the public on the 
     Internet not later than 48 hours (or not later than 24 hours 
     in the case of a designation, statement, report, or 
     notification filed electronically) after receipt by the 
     Commission.''.

     SEC. 502. MAINTENANCE OF WEBSITE OF ELECTION REPORTS.

       (a) In General.--The Federal Election Commission shall 
     maintain a central site on the Internet to make accessible to 
     the public all publicly available election-related reports 
     and information.
       (b) Election-related Report.--In this section, the term 
     ``election-related report'' means any report, designation, or 
     statement required to be filed under the Federal Election 
     Campaign Act of 1971.
       (c) Coordination With Other Agencies.--Any Federal 
     executive agency receiving election-related information which 
     that agency is required by law to publicly disclose shall 
     cooperate and coordinate with the Federal Election Commission 
     to make such report available through, or for posting on, the 
     site of the Federal Election Commission in a timely manner.

     SEC. 503. ADDITIONAL DISCLOSURE REPORTS.

       (a) Principal Campaign Committees.--Section 304(a)(2)(B) of 
     the Federal Election Campaign Act of 1971 is amended by 
     striking ``the following reports'' and all that follows 
     through the period and inserting ``the treasurer shall file 
     quarterly reports, which shall be filed not later than the 
     15th day after the last day of each calendar quarter, and 
     which shall be complete as of the last day of each calendar 
     quarter, except that the report for the quarter ending 
     December 31 shall be filed not later than January 31 of the 
     following calendar year.''.
       (b) National Committee of a Political Party.--Section 
     304(a)(4) of such Act (2 U.S.C. 434(a)(4)) is amended by 
     adding at the end the following flush sentence: 
     ``Notwithstanding the preceding sentence, a national 
     committee of a political party shall file the reports 
     required under subparagraph (B).''.

     SEC. 504. PUBLIC ACCESS TO BROADCASTING RECORDS.

       Section 315 of the Communications Act of 1934 (47 U.S.C. 
     315), as amended by this Act, is amended by redesignating 
     subsections (e) and (f) as subsections (f) and (g), 
     respectively, and inserting after subsection (d) the 
     following:
       ``(e) Political Record.--
       ``(1) In general.--A licensee shall maintain, and make 
     available for public inspection, a complete record of a 
     request to purchase broadcast time that--
       ``(A) is made by or on behalf of a legally qualified 
     candidate for public office; or
       ``(B) communicates a message relating to any political 
     matter of national importance, including--
       ``(i) a legally qualified candidate;
       ``(ii) any election to Federal office; or
       ``(iii) a national legislative issue of public importance.
       ``(2) Contents of record.--A record maintained under 
     paragraph (1) shall contain information regarding--
       ``(A) whether the request to purchase broadcast time is 
     accepted or rejected by the licensee;
       ``(B) the rate charged for the broadcast time;
       ``(C) the date and time on which the communication is 
     aired;
       ``(D) the class of time that is purchased;
       ``(E) the name of the candidate to which the communication 
     refers and the office to which the candidate is seeking 
     election, the election to which the communication refers, or 
     the issue to which the communication refers (as applicable);
       ``(F) in the case of a request made by, or on behalf of, a 
     candidate, the name of the candidate, the authorized 
     committee of the candidate, and the treasurer of such 
     committee; and
       ``(G) in the case of any other request, the name of the 
     person purchasing the time, the name, address, and phone 
     number of a contact person for such person, and a list of the 
     chief executive officers or members of the executive 
     committee or of the board of directors of such person.
       ``(3) Time to maintain file.--The information required 
     under this subsection shall be placed in a political file as 
     soon as possible and shall be retained by the licensee for a 
     period of not less than 2 years.''.

                               H.R. 2356

                         Offered By: Ms. Capito

                           [Shays Substitute]

       Amendment No. 10:  Add at the end of title III the 
     following new section:

     SEC. 320. MODIFICATION OF INDIVIDUAL CONTRIBUTION LIMITS FOR 
                   HOUSE CANDIDATES IN RESPONSE TO EXPENDITURES 
                   FROM PERSONAL FUNDS.

       (a) Increased Limits.--Title III of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended by 
     inserting after section 315 the following new section:


 ``modification of certain limits for house candidates in response to 
                personal fund expenditures of opponents

       ``Sec. 315A. (a) Availability of Increased Limit.--
       ``(1) In general.--Subject to paragraph (3), if the 
     opposition personal funds amount with respect to a candidate 
     for election to the office of Representative in, or Delegate 
     or Resident Commissioner to, the Congress exceeds $350,000--
       ``(A) the limit under subsection (a)(1)(A) with respect to 
     the candidate shall be tripled;
       ``(B) the limit under subsection (a)(3) shall not apply 
     with respect to any contribution made with respect to the 
     candidate if the contribution is made under the increased 
     limit allowed under subparagraph (A) during a period in which 
     the candidate may accept such a contribution; and
       ``(C) the limits under subsection (d) with respect to any 
     expenditure by a State or national committee of a political 
     party on behalf of the candidate shall not apply.
       ``(2) Determination of opposition personal funds amount.--
       ``(A) In general.--The opposition personal funds amount is 
     an amount equal to the excess (if any) of--
       ``(i) the greatest aggregate amount of expenditures from 
     personal funds (as defined in subsection (b)(1)) that an 
     opposing candidate in the same election makes; over
       ``(ii) the aggregate amount of expenditures from personal 
     funds made by the candidate with respect to the election.
       ``(B) Special rule for candidate's campaign funds.--
       ``(i) In general.--For purposes of determining the 
     aggregate amount of expenditures from personal funds under 
     subparagraph (A), such amount shall include the gross 
     receipts advantage of the candidate's authorized committee.
       ``(ii) Gross receipts advantage.--For purposes of clause 
     (i), the term `gross receipts advantage' means the excess, if 
     any, of--

       ``(I) the aggregate amount of 50 percent of gross receipts 
     of a candidate's authorized committee during any election 
     cycle (not including contributions from personal funds of the 
     candidate) that may be expended in connection with the 
     election, as determined on June 30 and December 31 of the 
     year preceding the year in which a general election is held, 
     over
       ``(II) the aggregate amount of 50 percent of gross receipts 
     of the opposing candidate's authorized committee during any 
     election cycle (not including contributions from personal 
     funds of the candidate) that may be expended in connection 
     with the election, as determined on June 30 and December 31 
     of the year preceding the year in which a general election is 
     held.

       ``(3) Time to accept contributions under increased limit.--
       ``(A) In general.--Subject to subparagraph (B), a candidate 
     and the candidate's authorized committee shall not accept any 
     contribution, and a party committee shall not make any 
     expenditure, under the increased limit under paragraph (1)--
       ``(i) until the candidate has received notification of the 
     opposition personal funds amount under subsection (b)(1); and
       ``(ii) to the extent that such contribution, when added to 
     the aggregate amount of contributions previously accepted and 
     party expenditures previously made under the increased limits 
     under this subsection for the election cycle, exceeds 100 
     percent of the opposition personal funds amount.
       ``(B) Effect of withdrawal of an opposing candidate.--A 
     candidate and a candidate's authorized committee shall not 
     accept any contribution and a party shall not make any 
     expenditure under the increased limit after the date on which 
     an opposing candidate ceases to be a candidate to the extent 
     that the amount of such increased limit is attributable to 
     such an opposing candidate.
       ``(4) Disposal of excess contributions.--
       ``(A) In general.--The aggregate amount of contributions 
     accepted by a candidate or a candidate's authorized committee 
     under the increased limit under paragraph (1) and not 
     otherwise expended in connection with the election with 
     respect to which such contributions relate shall, not later 
     than 50 days after the date of such election, be used in the 
     manner described in subparagraph (B).
       ``(B) Return to contributors.--A candidate or a candidate's 
     authorized committee shall return the excess contribution to 
     the person who made the contribution.
       ``(b) Notification of Expenditures From Personal Funds.--
       ``(1) In general.--
       ``(A) Definition of expenditure from personal funds.--In 
     this paragraph, the term `expenditure from personal funds' 
     means--
       ``(i) an expenditure made by a candidate using personal 
     funds; and
       ``(ii) a contribution or loan made by a candidate using 
     personal funds or a loan secured using such funds to the 
     candidate's authorized committee.
       ``(B) Declaration of intent.--Not later than the date that 
     is 15 days after the date on which an individual becomes a 
     candidate

[[Page 1111]]

     for the office of Representative in, or Delegate or Resident 
     Commissioner to, the Congress, the candidate shall file a 
     declaration stating the total amount of expenditures from 
     personal funds that the candidate intends to make, or to 
     obligate to make, with respect to the election that will 
     exceed $350,000.
       ``(C) Initial notification.--Not later than 24 hours after 
     a candidate described in subparagraph (B) makes or obligates 
     to make an aggregate amount of expenditures from personal 
     funds in excess of $350,000 in connection with any election, 
     the candidate shall file a notification.
       ``(D) Additional notification.--After a candidate files an 
     initial notification under subparagraph (C), the candidate 
     shall file an additional notification each time expenditures 
     from personal funds are made or obligated to be made in an 
     aggregate amount that exceeds $10,000. Such notification 
     shall be filed not later than 24 hours after the expenditure 
     is made.
       ``(E) Contents.--A notification under subparagraph (C) or 
     (D) shall include--
       ``(i) the name of the candidate and the office sought by 
     the candidate;
       ``(ii) the date and amount of each expenditure; and
       ``(iii) the total amount of expenditures from personal 
     funds that the candidate has made, or obligated to make, with 
     respect to an election as of the date of the expenditure that 
     is the subject of the notification.
       ``(F) Place of filing.--Each declaration or notification 
     required to be filed by a candidate under subparagraph (C), 
     (D), or (E) shall be filed with--
       ``(i) the Commission; and
       ``(ii) each candidate in the same election and the national 
     party of each such candidate.
       ``(2) Notification of disposal of excess contributions.--In 
     the next regularly scheduled report after the date of the 
     election for which a candidate seeks nomination for election 
     to, or election to, Federal office, the candidate or the 
     candidate's authorized committee shall submit to the 
     Commission a report indicating the source and amount of any 
     excess contributions (as determined under subsection (a)) and 
     the manner in which the candidate or the candidate's 
     authorized committee used such funds.
       ``(3) Enforcement.--For provisions providing for the 
     enforcement of the reporting requirements under this 
     subsection, see section 309.''.
       (b) Conforming Amendment.--Section 315(a)(1) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 441a), as amended by 
     section 304(a), is amended by striking ``subsection (i),'' 
     and inserting ``subsection (i) and section 315A,''.

                               H.R. 2356,

                     Offered By: Mr. Green of Texas

                           [Shays Substitute]

       Amendment No: 11.  Strike section 305.
       In section 306(a), strike the subsection designation and 
     all that follows through ``Content of broadcasts.--'' and 
     insert the following:
       (a) In General.--Section 315(b) of the Communications Act 
     of 1934 (47 U.S.C. 315(b)) is amended--
       (1) by striking ``(b) The charges'' and inserting the 
     following:
       ``(b) Charges.--
       ``(1) In general.--The charges'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (3) by adding at the end the following:
       ``(2) Content of broadcasts.--
       In section 306(a), strike ``or (2)'' each place such term 
     appears.
       In section 306(b), strike ``(3)'' and insert ``(2)''.

                               H.R. 2356,

                          Offered By: Mr. Wamp

                           [Shays substitute]

       Amendment No. 12. In section 315(a)(1)(A) of the Federal 
     Election Campaign Act of 1971, as proposed to be amended by 
     section 308(a)(1) of the bill, strike ``(or, in the case of a 
     candidate for Representative in or Delegate or Resident 
     Commissioner to the Congress, $1,000)''.

                               H.R. 2356

                         Offered By: Mr. Armey

               [Amendment in the Nature of a Substitute]

       Amendment No. 13. Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Ban it All, Ban it Now 
     Act''.

        TITLE I--SOFT MONEY ACTIVITIES OF PARTIES AND CANDIDATES

     SEC. 101. SOFT MONEY OF POLITICAL PARTIES.

       (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:

     ``SEC. 323. SOFT MONEY OF POLITICAL PARTIES.

       ``(a) National Committees.--
       ``(1) In general.--A national committee of a political 
     party (including a national congressional or Senatorial 
     campaign committee of a political party) may not solicit, 
     receive, or direct to another person a contribution, 
     donation, or transfer of funds or any other thing of value, 
     or spend any funds, that are not subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(2) Applicability.-- The prohibition established by 
     paragraph (1) applies--
       ``(A) to any such national committee, any officer or agent 
     acting on behalf of such a national committee, and any entity 
     that is directly or indirectly established, financed, 
     maintained, or controlled by such a national committee; and
       ``(B) to all activities of such committee and the persons 
     described in subparagraph (A), including the construction or 
     purchase of an office building or facility, the influencing 
     of the reapportionment decisions of a State, and the 
     financing of litigation relating to the reapportionment 
     decisions of a State.
       ``(b) State, District, and Local Committees.--Any amount 
     that is expended or disbursed for Federal election activity 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of such committee or 
     entity), or by an association or similar group of candidates 
     for State or local office or individuals holding State or 
     local office, shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(c) Fundraising Costs.--An amount spent by a person 
     described in subsection (a) or (b) to raise funds that are 
     used, in whole or in part, for expenditures and disbursements 
     for a Federal election activity shall be made from funds 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(d) Tax-Exempt Organizations.--A national, State, 
     district, or local committee of a political party (including 
     a national congressional or Senatorial campaign committee of 
     a political party), an entity that is directly or indirectly 
     established, financed, maintained, or controlled by any such 
     national, State, district, or local committee or its agent, 
     and an officer or agent acting on behalf of any such party 
     committee or entity, shall not solicit any funds for, or make 
     or direct any donations to--
       ``(1) an organization that is described in section 501(c) 
     of the Internal Revenue Code of 1986 and exempt from taxation 
     under section 501(a) of such Code (or has submitted an 
     application for determination of tax exempt status under such 
     section) and that makes expenditures or disbursements in 
     connection with an election for Federal office (including 
     expenditures or disbursements for Federal election activity); 
     or
       ``(2) an organization described in section 527 of such Code 
     (other than a political committee, a State, district, or 
     local committee of a political party, or the authorized 
     campaign committee of a candidate for State or local office).
       ``(e) Federal Candidates.--
       ``(1) In general.--A candidate, individual holding Federal 
     office, agent of a candidate or an individual holding Federal 
     office, or an entity directly or indirectly established, 
     financed, maintained or controlled by or acting on behalf of 
     1 or more candidates or individuals holding Federal office, 
     shall not--
       ``(A) solicit, receive, direct, transfer, or spend funds in 
     connection with an election for Federal office, including 
     funds for any Federal election activity, unless the funds are 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act; or
       ``(B) solicit, receive, direct, transfer, or spend funds in 
     connection with any election other than an election for 
     Federal office or disburse funds in connection with such an 
     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), (2), and (3) of section 
     315(a); and
       ``(ii) are not from sources prohibited by this Act from 
     making contributions in connection with an election for 
     Federal office.
       ``(2) State law.--Paragraph (1) does not apply to the 
     solicitation, receipt, or spending of funds by an individual 
     described in such paragraph who is also a candidate for a 
     State or local office solely in connection with such election 
     for State or local office if the solicitation, receipt, or 
     spending of funds is permitted under State law and refers 
     only to such State or local candidate, or to any other 
     candidate for the State or local office sought by such 
     candidate, or both.
       ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
     candidate or an individual holding Federal office may attend, 
     speak, or be a featured guest at a fundraising event for a 
     State, district, or local committee of a political party.
       ``(4) Limitation applicable for purposes of solicitation of 
     donations by individuals to certain organizations.--In the 
     case of the solicitation of funds by any person described in 
     paragraph (1) on behalf of any entity described in subsection 
     (d) which is made specifically for funds to be used for 
     activities described in clauses (i) and (ii) of section 
     301(20)(A), or made for any such entity which engages 
     primarily in activities described in such clauses, the 
     limitation applicable for purposes of a donation of funds by 
     an individual shall be the limitation set forth in section 
     315(a)(1)(D).

[[Page 1112]]

       ``(f) State Candidates.--
       ``(1) In general.--A candidate for State or local office, 
     individual holding State or local office, or an agent of such 
     a candidate or individual may not spend any funds for a 
     communication described in section 301(20)(A)(iii) unless the 
     funds are subject to the limitations, prohibitions, and 
     reporting requirements of this Act.
       ``(2) Exception for certain communications.--Paragraph (1) 
     shall not apply to an individual described in such paragraph 
     if the communication involved is in connection with an 
     election for such State or local office and refers only to 
     such individual or to any other candidate for the State or 
     local office held or sought by such individual, or both.''.

     SEC. 102. DEFINITIONS.

       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) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot); or
       ``(iii) a public communication that refers to a clearly 
     identified candidate for Federal office (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate).
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) a public communication that refers solely to a 
     clearly identified candidate for State or local office, if 
     the communication is not a Federal election activity 
     described in subparagraph (A)(i) or (ii);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated or used 
     to pay for a Federal election activity described in 
     subparagraph (A); or
       ``(iii) 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.
       ``(21) Generic campaign activity.--The term `generic 
     campaign activity' means a campaign activity that promotes a 
     political party and does not promote a candidate or non-
     Federal candidate.
       ``(22) Public communication.--The term `public 
     communication' means a communication by means of any 
     broadcast, cable, or satellite communication, newspaper, 
     magazine, outdoor advertising facility, mass mailing, or 
     telephone bank to the general public, or any other form of 
     general public political advertising or political advertising 
     directed to an audience of 500 or more people.
       ``(23) Mass mailing.--The term `mass mailing' means a 
     mailing by United States mail or facsimile of more than 500 
     pieces of mail matter of an identical or substantially 
     similar nature within any 1-year period.
       ``(24) Telephone bank.--The term `telephone bank' means 
     more than 500 telephone calls of an identical or 
     substantially similar nature within any 1-year period.''.

TITLE II--SOFT MONEY ACTIVITIES OF CORPORATIONS AND LABOR ORGANIZATIONS

     SEC. 201. BAN ON USE OF SOFT MONEY FOR NONPARTISAN VOTER 
                   REGISTRATION AND GET-OUT-THE-VOTE ACTIVITIES.

       Section 316(b)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441b(b)(2)) is amended by striking ``(B) 
     nonpartisan registration and get-out-the-vote campaigns'' and 
     all that follows through ``and (C)'' and inserting ``and 
     (B)''.

                 TITLE III--OTHER SOFT MONEY ACTIVITIES

     SEC. 301. BAN ON USE OF SOFT MONEY FOR GET-OUT-THE-VOTE 
                   ACTIVITIES BY CERTAIN ORGANIZATIONS.

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


  ``ban on use of nonfederal funds for get-out-the-vote activities by 
                         certain organizations

       ``Sec. 324. (a) In General.--Any amount expended or 
     disbursed for get-out-the-vote activities by any organization 
     described in subsection (b) shall be made from amounts 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(b) Organizations Described.--An organization described 
     in this subsection is--
       ``(1) an organization that is described in section 
     501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986 
     and exempt from taxation under section 501(a) of such Code 
     (or has submitted an application for determination of tax 
     exempt status under such section); or
       ``(2) an organization described in section 527 of such Code 
     (other than a State, district, or local committee of a 
     political party, a candidate for State or local office, or 
     the authorized campaign committee of a candidate for State or 
     local office).''.

     SEC. 302. BAN ON USE OF SOFT MONEY FOR ANY PARTISAN VOTER 
                   REGISTRATION ACTIVITIES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.), as amended by sections 101 and 301, is 
     further amended by adding at the end the following new 
     section:


   ``ban on use of nonfederal funds for partisan voter registration 
                               activities

       ``Sec. 325. No person may expend or disburse any funds for 
     partisan voter registration activity which are not subject to 
     the limitations, prohibitions, and reporting requirements of 
     this Act.''.

                               H.R. 2356

                          Offered By: Mr. Ney

               [Amendment in the Nature of a Substitute]

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Bipartisan 
     Campaign Finance Reform Act of 2002''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

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

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

Sec. 201. Definitions.
Sec. 202. Express advocacy determined without regard to background 
              music.
Sec. 203. Civil penalty.
Sec. 204. Reporting requirements for certain independent expenditures.
Sec. 205. Independent Versus Coordinated Expenditures by Party.
Sec. 206. Coordination with candidates.

                         TITLE III--DISCLOSURE

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

                    TITLE IV--PERSONAL WEALTH OPTION

Sec. 401. Voluntary personal funds expenditure limit.
Sec. 402. Political party committee coordinated expenditures.

                         TITLE V--MISCELLANEOUS

Sec. 501. Use of contributed amounts for certain purposes.
Sec. 502. Prohibition of fundraising on Federal property.
Sec. 503. Penalties for violations.
Sec. 504. Strengthening foreign money ban.
Sec. 505. Prohibition of contributions by minors.
Sec. 506. Expedited procedures.
Sec. 507. Initiation of enforcement proceeding.
Sec. 508. Protecting equal participation of eligible voters in 
              campaigns and elections.
Sec. 509. Penalty for violation of prohibition against foreign 
              contributions.
Sec. 510. Expedited court review of certain alleged violations of 
              Federal Election Campaign Act of 1971.
Sec. 511. Deposit of certain contributions and donations in treasury 
              account.
Sec. 512. Establishment of a clearinghouse of information on political 
              activities within the Federal Election Commission.
Sec. 513. Clarification of right of nationals of the United States to 
              make political contributions.

      TITLE VI--INDEPENDENT COMMISSION ON CAMPAIGN FINANCE REFORM

Sec. 601. Establishment and purpose of Commission.
Sec. 602. Membership of Commission.
Sec. 603. Powers of Commission.
Sec. 604. Report and recommended legislation.
Sec. 605. Termination.
Sec. 606. Authorization of appropriations.

TITLE VII--PROHIBITING USE OF WHITE HOUSE MEALS AND ACCOMMODATIONS FOR 
                         POLITICAL FUNDRAISING

Sec. 701. Prohibiting use of white house meals and accommodations for 
              political fundraising.

  TITLE VIII--SENSE OF THE CONGRESS REGARDING FUNDRAISING ON FEDERAL 
                          GOVERNMENT PROPERTY

Sec. 801. Sense of the Congress regarding applicability of controlling 
              legal authority to fundraising on Federal government 
              property.

[[Page 1113]]

  TITLE IX--REIMBURSEMENT FOR USE OF GOVERNMENT PROPERTY FOR CAMPAIGN 
                                ACTIVITY

Sec. 901. Requiring national parties to reimburse at cost for use of 
              Air Force One for political fundraising.
Sec. 902. Reimbursement for use of government equipment for campaign-
              related travel.

            TITLE X--PROHIBITING USE OF WALKING AROUND MONEY

Sec. 1001. Prohibiting campaigns from providing currency to individuals 
              for purposes of encouraging turnout on date of election.

            TITLE XI--ENHANCING ENFORCEMENT OF CAMPAIGN LAW

Sec. 1101. Enhancing enforcement of campaign finance law.

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

Sec. 1201. Severability.
Sec. 1202. Review of constitutional issues.
Sec. 1203. Effective date.
Sec. 1204. Regulations.

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

     SEC. 101. SOFT MONEY OF POLITICAL PARTIES.

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


                   ``soft money of political parties

       ``Sec. 323. (a) National Committees.--
       ``(1) In general.--A national committee of a political 
     party (including a national congressional campaign committee 
     of a political party) and any officers or agents of such 
     party committees, shall not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of 
     funds, or spend any funds, that are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(2) Applicability.--This subsection shall apply to an 
     entity that is directly or indirectly established, financed, 
     maintained, or controlled by a national committee of a 
     political party (including a national congressional campaign 
     committee of a political party), or an entity acting on 
     behalf of a national committee, and an officer or agent 
     acting on behalf of any such committee or entity.
       ``(b) State, District, and Local Committees.--
       ``(1) In general.--An amount that is expended or disbursed 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of such committee or 
     entity) for Federal election activity shall be made from 
     funds subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(2) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot); and
       ``(iii) a communication that refers to a clearly identified 
     candidate for Federal office (regardless of whether a 
     candidate for State or local office is also mentioned or 
     identified) and is made for the purpose of influencing a 
     Federal election (regardless of whether the communication is 
     express advocacy).
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) campaign activity conducted solely on behalf of a 
     clearly identified candidate for State or local office, 
     provided the campaign activity is not a Federal election 
     activity described in subparagraph (A);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated or used 
     to pay for a Federal election activity described in 
     subparagraph (A);
       ``(iii) the costs of a State, district, or local political 
     convention;
       ``(iv) the costs of grassroots campaign materials, 
     including buttons, bumper stickers, and yard signs, that name 
     or depict only a candidate for State or local office;
       ``(v) the non-Federal share of a State, district, or local 
     party committee's administrative and overhead expenses (but 
     not including the compensation in any month of an individual 
     who spends more than 20 percent of the individual's time on 
     Federal election activity) as determined by a regulation 
     promulgated by the Commission to determine the non-Federal 
     share of a State, district, or local party committee's 
     administrative and overhead expenses; and
       ``(vi) the cost of constructing or purchasing an office 
     facility or equipment for a State, district or local 
     committee.
       ``(c) Fundraising Costs.--An amount spent by a national, 
     State, district, or local committee of a political party, by 
     an entity that is established, financed, maintained, or 
     controlled by a national, State, district, or local committee 
     of a political party, or by an agent or officer of any such 
     committee or entity, to raise funds that are used, in whole 
     or in part, to pay the costs of a Federal election activity 
     shall be made from funds subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(d) Tax-Exempt Organizations.--A national, State, 
     district, or local committee of a political party (including 
     a national congressional campaign committee of a political 
     party), an entity that is directly or indirectly established, 
     financed, maintained, or controlled by any such national, 
     State, district, or local committee or its agent, and an 
     officer or agent acting on behalf of any such party committee 
     or entity, shall not solicit any funds for, or make or direct 
     any donations to, an organization that is described in 
     section 501(c) of the Internal Revenue Code of 1986 and 
     exempt from taxation under section 501(a) of such Code (or 
     has submitted an application to the Commissioner of the 
     Internal Revenue Service for determination of tax-exemption 
     under such section).
       ``(e) Candidates.--
       ``(1) In general.--A candidate, individual holding Federal 
     office, agent of a candidate or individual holding Federal 
     office, or an entity directly or indirectly established, 
     financed, maintained or controlled by or acting on behalf of 
     one or more candidates or individuals holding Federal office, 
     shall not--
       ``(A) solicit, receive, direct, transfer, or spend funds in 
     connection with an election for Federal office, including 
     funds for any Federal election activity, unless the funds are 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act; or
       ``(B) solicit, receive, direct, transfer, or spend funds in 
     connection with any election other than an election for 
     Federal office or disburse funds in connection with such an 
     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) State law.--Paragraph (1) does not apply to the 
     solicitation, receipt, or spending of funds by an individual 
     who is a candidate for a State or local office in connection 
     with such election for State or local office if the 
     solicitation, receipt, or spending of funds is permitted 
     under State law for any activity other than a Federal 
     election activity.
       ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
     candidate may attend, speak, or be a featured guest at a 
     fundraising event for a State, district, or local committee 
     of a political party.''.

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

       (a) Contribution Limit for State Committees of Political 
     Parties.--Section 315(a)(1) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 441a(a)(1)) is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year that, in the aggregate, exceed $10,000''.
       (b) Aggregate Contribution Limit for Individual.--Section 
     315(a)(3) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441a(a)(3)) is amended by striking ``$25,000'' and 
     inserting ``$30,000''.

     SEC. 103. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by 
     section 204) is amended by inserting after subsection (e) the 
     following:
       ``(f) Political Committees.--
       ``(1) National and congressional political committees.--The 
     national committee of a political party, any national 
     congressional campaign committee of a political party, and 
     any subordinate committee of either, shall report all 
     receipts and disbursements during the reporting period.
       ``(2) Other political committees to which section 323 
     applies.--In addition to any other reporting requirements 
     applicable under this Act, a political committee (not 
     described in paragraph (1)) to which section 323(b)(1) 
     applies shall report all receipts and disbursements made for 
     activities described in paragraphs (2)(A) and (2)(B)(v) of 
     section 323(b).
       ``(3) Itemization.--If a political committee has receipts 
     or disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar

[[Page 1114]]

     year, the political committee shall separately itemize its 
     reporting for such person in the same manner as required in 
     paragraphs (3)(A), (5), and (6) of subsection (b).
       ``(4) Reporting periods.--Reports required to be filed 
     under this subsection shall be filed for the same time 
     periods required for political committees under subsection 
     (a).''.
       (b) Building Fund Exception to the Definition of 
     Contribution.--Section 301(8)(B) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
       (1) by striking clause (viii); and
       (2) by redesignating clauses (ix) through (xv) as clauses 
     (viii) through (xii), respectively.

           TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

     SEC. 201. DEFINITIONS.

       (a) Definition of Independent Expenditure.--Section 301 of 
     the Federal Election Campaign Act (2 U.S.C. 431) is amended 
     by striking paragraph (17) and inserting the following:
       ``(17) Independent expenditure.--
       ``(A) In general.--The term `independent expenditure' means 
     an expenditure by a person--
       ``(i) for a communication that is express advocacy; and
       ``(ii) that is not coordinated activity or is not provided 
     in coordination with a candidate or a candidate's agent or a 
     person who is coordinating with a candidate or a candidate's 
     agent.''.
       (b) Definition of Express Advocacy.--Section 301 of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431) is 
     amended by adding at the end the following:
       ``(20) Express advocacy.--
       ``(A) In general.--The term `express advocacy' means a 
     communication that advocates the election or defeat of a 
     candidate by--
       ``(i) containing a phrase such as `vote for', `re-elect', 
     `support', `cast your ballot for', `(name of candidate) for 
     Congress', `(name of candidate) in 1997', `vote against', 
     `defeat', `reject', or a campaign slogan or words that in 
     context can have no reasonable meaning other than to advocate 
     the election or defeat of one or more clearly identified 
     candidates;
       ``(ii) referring to one or more clearly identified 
     candidates in a paid advertisement that is transmitted 
     through radio or television within 60 calendar days preceding 
     the date of an election of the candidate and that appears in 
     the State in which the election is occurring, except that 
     with respect to a candidate for the office of Vice President 
     or President, the time period is within 60 calendar days 
     preceding the date of a general election; or
       ``(iii) expressing unmistakable and unambiguous support for 
     or opposition to one or more clearly identified candidates 
     when taken as a whole and with limited reference to external 
     events, such as proximity to an election.
       ``(B) Voting record and voting guide exception.--The term 
     `express advocacy' does not include a communication which is 
     in printed form or posted on the Internet that--
       ``(i) presents information solely about the voting record 
     or position on a campaign issue of one or more candidates 
     (including any statement by the sponsor of the voting record 
     or voting guide of its agreement or disagreement with the 
     record or position of a candidate), so long as the voting 
     record or voting guide when taken as a whole does not express 
     unmistakable and unambiguous support for or opposition to one 
     or more clearly identified candidates;
       ``(ii) is not coordinated activity or is not made in 
     coordination with a candidate, political party, or agent of 
     the candidate or party, or a candidate's agent or a person 
     who is coordinating with a candidate or a candidate's agent, 
     except that nothing in this clause may be construed to 
     prevent the sponsor of the voting guide from directing 
     questions in writing to a candidate about the candidate's 
     position on issues for purposes of preparing a voter guide or 
     to prevent the candidate from responding in writing to such 
     questions; and
       ``(iii) does not contain a phrase such as `vote for', `re-
     elect', `support', `cast your ballot for', `(name of 
     candidate) for Congress', `(name of candidate) in (year)', 
     `vote against', `defeat', or `reject', or a campaign slogan 
     or words that in context can have no reasonable meaning other 
     than to urge the election or defeat of one or more clearly 
     identified candidates.''.
       (c) Definition of Expenditure.--Section 301(9)(A) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is 
     amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(iii) a payment made by a political committee for a 
     communication that--
       ``(I) refers to a clearly identified candidate; and
       ``(II) is for the purpose of influencing a Federal election 
     (regardless of whether the communication is express 
     advocacy).''.

     SEC. 202. EXPRESS ADVOCACY DETERMINED WITHOUT REGARD TO 
                   BACKGROUND MUSIC.

       Section 301(20) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 431(20)), as added by section 201(b), is 
     amended by adding at the end the following new subparagraph:
       ``(C) Background music.--In determining whether any 
     communication by television or radio broadcast constitutes 
     express advocacy for purposes of this Act, there shall not be 
     taken into account any background music not including lyrics 
     used in such broadcast.''.

     SEC. 203. CIVIL PENALTY.

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

     SEC. 204. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       (a) In General.--Section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434) is amended--
       (1) in subsection (c)(2), by striking the undesignated 
     matter after subparagraph (C);
       (2) by redesignating paragraph (3) of subsection (c) as 
     subsection (g); and
       (3) by inserting after subsection (c)(2) (as amended by 
     paragraph (1)) the following:
       ``(e) Time for Reporting Certain Expenditures.--
       ``(1) Expenditures aggregating $1,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes or contracts to make independent 
     expenditures aggregating $1,000 or more after the 20th day, 
     but more than 24 hours, before the date of an election shall 
     file a report describing the expenditures within 24 hours 
     after that amount of independent expenditures has been made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person shall file an additional 
     report within 24 hours after each time the person makes or 
     contracts to make independent expenditures aggregating an 
     additional $1,000 with respect to the same election as that 
     to which the initial report relates.
       ``(2) Expenditures aggregating $10,000.--
       ``(A) Initial report.--A person (including a political 
     committee) that makes or contracts to make independent 
     expenditures aggregating $10,000 or more at any time up to 
     and including the 20th day before the date of an election 
     shall file a report describing the expenditures within 48 
     hours after that amount of independent expenditures has been 
     made.
       ``(B) Additional reports.--After a person files a report 
     under subparagraph (A), the person shall file an additional 
     report within 48 hours after each time the person makes or 
     contracts to make independent expenditures aggregating an 
     additional $10,000 with respect to the same election as that 
     to which the initial report relates.
       ``(3) Place of filing; contents.--A report under this 
     subsection--
       ``(A) shall be filed with the Commission; and
       ``(B) shall contain the information required by subsection 
     (b)(6)(B)(iii), including the name of each candidate whom an 
     expenditure is intended to support or oppose.''.
       (b) Conforming Amendment.--Section 304(a)(5) of such Act (2 
     U.S.C. 434(a)(5)) is amended by striking ``, or the second 
     sentence of subsection (c)(2)''.

     SEC. 205. INDEPENDENT VERSUS COORDINATED EXPENDITURES BY 
                   PARTY.

       Section 315(d) of the Federal Election Campaign Act (2 
     U.S.C. 441a(d)) is amended--
       (1) in paragraph (1), by striking ``and (3)'' and inserting 
     ``, (3), and (4)''; and
       (2) by adding at the end the following:
       ``(4) Independent versus coordinated expenditures by 
     party.--
       ``(A) In general.--On or after the date on which a 
     political party nominates a candidate, a committee of the 
     political party shall not make both expenditures under this 
     subsection and independent expenditures (as defined in 
     section 301(17)) with respect to the candidate during the 
     election cycle.
       ``(B) Certification.--Before making a coordinated 
     expenditure under this subsection with respect to a 
     candidate, a committee of a political party shall file with 
     the Commission a certification, signed by the treasurer of 
     the committee, that the committee has not and shall not make 
     any independent expenditure with respect to the candidate 
     during the same election cycle.

[[Page 1115]]

       ``(C) Application.--For the purposes of this paragraph, all 
     political committees established and maintained by a national 
     political party (including all congressional campaign 
     committees) and all political committees established and 
     maintained by a State political party (including any 
     subordinate committee of a State committee) shall be 
     considered to be a single political committee.
       ``(D) Transfers.--A committee of a political party that 
     submits a certification under subparagraph (B) with respect 
     to a candidate shall not, during an election cycle, transfer 
     any funds to, assign authority to make coordinated 
     expenditures under this subsection to, or receive a transfer 
     of funds from, a committee of the political party that has 
     made or intends to make an independent expenditure with 
     respect to the candidate.''.

     SEC. 206. COORDINATION WITH CANDIDATES.

       (a) Definition of Coordination With Candidates.--
       (1) Section 301(8).--Section 301(8) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``or'' at the end of clause (i);
       (ii) by striking the period at the end of clause (ii) and 
     inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(iii) coordinated activity (as defined in subparagraph 
     (C)).''; and
       (B) by adding at the end the following:
       ``(C) `Coordinated activity' means anything of value 
     provided by a person in coordination with a candidate, an 
     agent of the candidate, or the political party of the 
     candidate or its agent for the purpose of influencing a 
     Federal election (regardless of whether the value being 
     provided is a communication that is express advocacy) in 
     which such candidate seeks nomination or election to Federal 
     office, and includes any of the following:
       ``(i) A payment made by a person in cooperation, 
     consultation, or concert with, at the request or suggestion 
     of, or pursuant to any general or particular understanding 
     with a candidate, the candidate's authorized committee, the 
     political party of the candidate, or an agent acting on 
     behalf of a candidate, authorized committee, or the political 
     party of the candidate.
       ``(ii) A payment made by a person for the production, 
     dissemination, distribution, or republication, in whole or in 
     part, of any broadcast or any written, graphic, or other form 
     of campaign material prepared by a candidate, a candidate's 
     authorized committee, or an agent of a candidate or 
     authorized committee (not including a communication described 
     in paragraph (9)(B)(i) or a communication that expressly 
     advocates the candidate's defeat).
       ``(iii) A payment made by a person based on information 
     about a candidate's plans, projects, or needs provided to the 
     person making the payment by the candidate or the candidate's 
     agent who provides the information with the intent that the 
     payment be made.
       ``(iv) A payment made by a person if, in the same election 
     cycle in which the payment is made, the person making the 
     payment is serving or has served as a member, employee, 
     fundraiser, or agent of the candidate's authorized committee 
     in an executive or policymaking position.
       ``(v) A payment made by a person if the person making the 
     payment has served in any formal policy making or advisory 
     position with the candidate's campaign or has participated in 
     formal strategic or formal policymaking discussions (other 
     than any discussion treated as a lobbying contact under the 
     Lobbying Disclosure Act of 1995 in the case of a candidate 
     holding Federal office or as a similar lobbying activity in 
     the case of a candidate holding State or other elective 
     office) with the candidate's campaign relating to the 
     candidate's pursuit of nomination for election, or election, 
     to Federal office, in the same election cycle as the election 
     cycle in which the payment is made.
       ``(vi) A payment made by a person if, in the same election 
     cycle, the person making the payment retains the professional 
     services of any person that has provided or is providing 
     campaign-related services in the same election cycle to a 
     candidate (including services provided through a political 
     committee of the candidate's political party) in connection 
     with the candidate's pursuit of nomination for election, or 
     election, to Federal office, including services relating to 
     the candidate's decision to seek Federal office, and the 
     person retained is retained to work on activities relating to 
     that candidate's campaign.
       ``(vii) A payment made by a person who has directly 
     participated in fundraising activities with the candidate or 
     in the solicitation or receipt of contributions on behalf of 
     the candidate.
       ``(viii) A payment made by a person who has communicated 
     with the candidate or an agent of the candidate (including a 
     communication through a political committee of the 
     candidate's political party) after the declaration of 
     candidacy (including a pollster, media consultant, vendor, 
     advisor, or staff member acting on behalf of the candidate), 
     about advertising message, allocation of resources, 
     fundraising, or other campaign matters related to the 
     candidate's campaign, including campaign operations, 
     staffing, tactics, or strategy.
       ``(ix) The provision of in-kind professional services or 
     polling data (including services or data provided through a 
     political committee of the candidate's political party) to 
     the candidate or candidate's agent.
       ``(x) A payment made by a person who has engaged in a 
     coordinated activity with a candidate described in clauses 
     (i) through (ix) for a communication that clearly refers to 
     the candidate or the candidate's opponent and is for the 
     purpose of influencing that candidates's election (regardless 
     of whether the communication is express advocacy).
       ``(D) For purposes of subparagraph (C), the term 
     `professional services' means polling, media advice, 
     fundraising, campaign research or direct mail (except for 
     mailhouse services solely for the distribution of voter 
     guides as defined in section 431(20)(B)) services in support 
     of a candidate's pursuit of nomination for election, or 
     election, to Federal office.
       ``(E) For purposes of subparagraph (C), all political 
     committees established and maintained by a national political 
     party (including all congressional campaign committees) and 
     all political committees established and maintained by a 
     State political party (including any subordinate committee of 
     a State committee) shall be considered to be a single 
     political committee.''.
       (2) Section 315(a)(7).--Section 315(a)(7) (2 U.S.C. 
     441a(a)(7)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) a coordinated activity, as described in section 
     301(8)(C), shall be considered to be a contribution to the 
     candidate, and in the case of a limitation on expenditures, 
     shall be treated as an expenditure by the candidate.
       (b) Meaning of Contribution or Expenditure for the Purposes 
     of Section 316.--Section 316(b)(2) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by 
     striking ``shall include'' and inserting ``includes a 
     contribution or expenditure, as those terms are defined in 
     section 301, and also includes''.

                         TITLE III--DISCLOSURE

     SEC. 301. FILING OF REPORTS USING COMPUTERS AND FACSIMILE 
                   MACHINES.

       Section 304(a) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 434(a)) is amended by striking paragraph (11) and 
     inserting the following:
       ``(11)(A) The Commission shall promulgate a regulation 
     under which a person required to file a designation, 
     statement, or report under this Act--
       ``(i) is required to maintain and file a designation, 
     statement, or report for any calendar year in electronic form 
     accessible by computers if the person has, or has reason to 
     expect to have, aggregate contributions or expenditures in 
     excess of a threshold amount determined by the Commission; 
     and
       ``(ii) may maintain and file a designation, statement, or 
     report in electronic form or an alternative form, including 
     the use of a facsimile machine, if not required to do so 
     under the regulation promulgated under clause (i).
       ``(B) The Commission shall make a designation, statement, 
     report, or notification that is filed electronically with the 
     Commission accessible to the public on the Internet not later 
     than 24 hours after the designation, statement, report, or 
     notification is received by the Commission.
       ``(C) In promulgating a regulation under this paragraph, 
     the Commission shall provide methods (other than requiring a 
     signature on the document being filed) for verifying 
     designations, statements, and reports covered by the 
     regulation. Any document verified under any of the methods 
     shall be treated for all purposes (including penalties for 
     perjury) in the same manner as a document verified by 
     signature.''.

     SEC. 302. PROHIBITION OF DEPOSIT OF CONTRIBUTIONS WITH 
                   INCOMPLETE CONTRIBUTOR INFORMATION.

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

     SEC. 303. AUDITS.

       (a) Random Audits.--Section 311(b) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 438(b)) is amended--
       (1) by inserting ``(1) In general.--'' before ``The 
     Commission'';
       (2) by moving the text 2 ems to the right; and
       (3) by adding at the end the following:
       ``(2) Random audits.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     Commission may conduct random audits and investigations to 
     ensure voluntary compliance with this Act. The selection of 
     any candidate for a random audit or investigation shall be 
     based on criteria adopted by a vote of at least four members 
     of the Commission.
       ``(B) Limitation.--The Commission shall not conduct an 
     audit or investigation of a candidate's authorized committee 
     under subparagraph (A) until the candidate is no

[[Page 1116]]

     longer a candidate for the office sought by the candidate in 
     an election cycle.
       ``(C) Applicability.--This paragraph does not apply to an 
     authorized committee of a candidate for President or Vice 
     President subject to audit under section 9007 or 9038 of the 
     Internal Revenue Code of 1986.''.
       (b) Extension of Period During Which Campaign Audits May Be 
     Begun.--Section 311(b) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 438(b)) is amended by striking ``6 months'' 
     and inserting ``12 months''.

     SEC. 304. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR 
                   MORE.

       Section 304(b)(3)(A) of the Federal Election Campaign Act 
     at 1971 (2 U.S.C. 434(b)(3)(A) is amended--
       (1) by striking ``$200'' and inserting ``$50''; and
       (2) by striking the semicolon and inserting ``, except that 
     in the case of a person who makes contributions aggregating 
     at least $50 but not more than $200 during the calendar year, 
     the identification need include only the name and address of 
     the person;''.

     SEC. 305. USE OF CANDIDATES' NAMES.

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

     SEC. 306. PROHIBITION OF FALSE REPRESENTATION TO SOLICIT 
                   CONTRIBUTIONS.

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

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

       (a) In General.--Section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 
     103(c) and section 204) is amended by adding at the end the 
     following:
       ``(h) Disbursements of Persons Other Than Political 
     Parties.--
       ``(1) In general.--A person, other than a political 
     committee of a political party or a person described in 
     section 501(d) of the Internal Revenue Code of 1986, that 
     makes an aggregate amount of disbursements in excess of 
     $50,000 during a calendar year for activities described in 
     paragraph (2) shall file a statement with the Commission--
       ``(A) on a monthly basis as described in subsection 
     (a)(4)(B); or
       ``(B) in the case of disbursements that are made within 20 
     days of an election, within 24 hours after the disbursements 
     are made.
       ``(2) Activity.--The activity described in this paragraph 
     is--
       ``(A) Federal election activity;
       ``(B) an activity described in section 316(b)(2)(A) that 
     expresses support for or opposition to a candidate for 
     Federal office or a political party; and
       ``(C) an activity described in subparagraph (B) or (C) of 
     section 316(b)(2).
       ``(3) Applicability.--This subsection does not apply to--
       ``(A) a candidate or a candidate's authorized committees; 
     or
       ``(B) an independent expenditure.
       ``(4) Contents.--A statement under this section shall 
     contain such information about the disbursements made during 
     the reporting period as the Commission shall prescribe, 
     including--
       ``(A) the aggregate amount of disbursements made;
       ``(B) the name and address of the person or entity to whom 
     a disbursement is made in an aggregate amount in excess of 
     $200;
       ``(C) the date made, amount, and purpose of the 
     disbursement; and
       ``(D) if applicable, whether the disbursement was in 
     support of, or in opposition to, a candidate or a political 
     party, and the name of the candidate or the political 
     party.''.
       (b) Definition of Generic Campaign Activity.--Section 301 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et 
     seq.) (as amended by section 201(b)) is further amended by 
     adding at the end the following:
       ``(21) Generic campaign activity.--The term `generic 
     campaign activity' means an activity that promotes a 
     political party and does not promote a candidate or non-
     Federal candidate.''.

     SEC. 308. CAMPAIGN ADVERTISING.

       Section 318 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441d) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (ii) by striking ``an expenditure'' and inserting ``a 
     disbursement''; and
       (iii) by striking ``direct''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address'' after ``name''; and
       (2) by adding at the end the following:
       ``(c) Any printed communication described in subsection (a) 
     shall--
       ``(1) be of sufficient type size to be clearly readable by 
     the recipient of the communication;
       ``(2) be contained in a printed box set apart from the 
     other contents of the communication; and
       ``(3) be printed with a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any communication described in paragraphs (1) or 
     (2) of subsection (a) which is transmitted through radio or 
     television shall include, in addition to the requirements of 
     that paragraph, an audio statement by the candidate that 
     identifies the candidate and states that the candidate has 
     approved the communication.
       ``(2) If a communication described in paragraph (1) is 
     transmitted through television, the communication shall 
     include, in addition to the audio statement under paragraph 
     (1), a written statement that--
       ``(A) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(B) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e) Any communication described in paragraph (3) of 
     subsection (a) which is transmitted through radio or 
     television shall include, in addition to the requirements of 
     that paragraph, in a clearly spoken manner, the following 
     statement: `________ is responsible for the content of this 
     advertisement.' (with the blank to be filled in with the name 
     of the political committee or other person paying for the 
     communication and the name of any connected organization of 
     the payor). If transmitted through television, the statement 
     shall also appear in a clearly readable manner with a 
     reasonable degree of color contrast between the background 
     and the printed statement, for a period of at least 4 
     seconds.''.

                    TITLE IV--PERSONAL WEALTH OPTION

     SEC. 401. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.

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


              ``voluntary personal funds expenditure limit

       ``Sec. 324. (a) Eligible Congressional Candidate.--
       ``(1) Primary election.--
       ``(A) Declaration.--A candidate for election for Senator or 
     Representative in or Delegate or Resident Commissioner to the 
     Congress is an eligible primary election Congressional 
     candidate if the candidate files with the Commission a 
     declaration that the candidate and the candidate's authorized 
     committees will not make expenditures in excess of the 
     personal funds expenditure limit.
       ``(B) Time to file.--The declaration under subparagraph (A) 
     shall be filed not later than the date on which the candidate 
     files with the appropriate State officer as a candidate for 
     the primary election.
       ``(2) General election.--
       ``(A) Declaration.--A candidate for election for Senator or 
     Representative in or Delegate or Resident Commissioner to the 
     Congress is an eligible general election Congressional 
     candidate if the candidate files with the Commission--
       ``(i) a declaration under penalty of perjury, with 
     supporting documentation as required by the Commission, that 
     the candidate and the candidate's authorized committees did 
     not exceed the personal funds expenditure limit in connection 
     with the primary election; and
       ``(ii) a declaration that the candidate and the candidate's 
     authorized committees will not make expenditures in excess of 
     the personal funds expenditure limit.
       ``(B) Time to file.--The declaration under subparagraph (A) 
     shall be filed not later than 7 days after the earlier of--
       ``(i) the date on which the candidate qualifies for the 
     general election ballot under State law; or
       ``(ii) if under State law, a primary or run-off election to 
     qualify for the general election ballot occurs after 
     September 1, the date on which the candidate wins the primary 
     or runoff election.
       ``(b) Personal Funds Expenditure Limit.--
       ``(1) In general.--The aggregate amount of expenditures 
     that may be made in connection with an election by an 
     eligible Congressional candidate or the candidate's 
     authorized committees from the sources described in paragraph 
     (2) shall not exceed $50,000.

[[Page 1117]]

       ``(2) Sources.--A source is described in this paragraph if 
     the source is--
       ``(A) personal funds of the candidate and members of the 
     candidate's immediate family; or
       ``(B) proceeds of indebtedness incurred by the candidate or 
     a member of the candidate's immediate family.
       ``(c) Certification by the Commission.--
       ``(1) In general.--The Commission shall determine whether a 
     candidate has met the requirements of this section and, based 
     on the determination, issue a certification stating whether 
     the candidate is an eligible Congressional candidate.
       ``(2) Time for certification.--Not later than 7 business 
     days after a candidate files a declaration under paragraph 
     (1) or (2) of subsection (a), the Commission shall certify 
     whether the candidate is an eligible Congressional candidate.
       ``(3) Revocation.--The Commission shall revoke a 
     certification under paragraph (1), based on information 
     submitted in such form and manner as the Commission may 
     require or on information that comes to the Commission by 
     other means, if the Commission determines that a candidate 
     violates the personal funds expenditure limit.
       ``(4) Determinations by commission.--A determination made 
     by the Commission under this subsection shall be final, 
     except to the extent that the determination is subject to 
     examination and audit by the Commission and to judicial 
     review.
       ``(d) Penalty.--If the Commission revokes the certification 
     of an eligible Congressional candidate--
       ``(1) the Commission shall notify the candidate of the 
     revocation; and
       ``(2) the candidate and a candidate's authorized committees 
     shall pay to the Commission an amount equal to the amount of 
     expenditures made by a national committee of a political 
     party or a State committee of a political party in connection 
     with the general election campaign of the candidate under 
     section 315(d).''.

     SEC. 402. POLITICAL PARTY COMMITTEE COORDINATED EXPENDITURES.

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

                         TITLE V--MISCELLANEOUS

     SEC. 501. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.) is amended by striking section 313 and 
     inserting the following:


           ``use of contributed amounts for certain purposes

       ``Sec. 313. (a) Permitted Uses.--A contribution accepted by 
     a candidate, and any other amount received by an individual 
     as support for activities of the individual as a holder of 
     Federal office, may be used by the candidate or individual--
       ``(1) for expenditures in connection with the campaign for 
     Federal office of the candidate or individual;
       ``(2) for ordinary and necessary expenses incurred in 
     connection with duties of the individual as a holder of 
     Federal office;
       ``(3) for contributions to an organization described in 
     section 170(c) of the Internal Revenue Code of 1986; or
       ``(4) for transfers to a national, State, or local 
     committee of a political party.
       ``(b) Prohibited Use.--
       ``(1) In general.--A contribution or amount described in 
     subsection (a) shall not be converted by any person to 
     personal use.
       ``(2) Conversion.--For the purposes of paragraph (1), a 
     contribution or amount shall be considered to be converted to 
     personal use if the contribution or amount is used to fulfill 
     any commitment, obligation, or expense of a person that would 
     exist irrespective of the candidate's election campaign or 
     individual's duties as a holder of Federal officeholder, 
     including--
       ``(A) a home mortgage, rent, or utility payment;
       ``(B) a clothing purchase;
       ``(C) a noncampaign-related automobile expense;
       ``(D) a country club membership;
       ``(E) a vacation or other noncampaign-related trip;
       ``(F) a household food item;
       ``(G) a tuition payment;
       ``(H) admission to a sporting event, concert, theater, or 
     other form of entertainment not associated with an election 
     campaign; and
       ``(I) dues, fees, and other payments to a health club or 
     recreational facility.''.

     SEC. 502. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY.

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

     SEC. 503. PENALTIES FOR VIOLATIONS.

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

     SEC. 504. STRENGTHENING FOREIGN MONEY BAN.

       (a) In General.--Section 319 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441e) is amended--
       (1) by striking the heading and inserting the following: 
     ``contributions and donations by foreign nationals''; and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for--
       ``(1) a foreign national, directly or indirectly, to make--
       ``(A) a donation of money or other thing of value, or to 
     promise expressly or impliedly to make a donation, in 
     connection with a Federal, State, or local election; or
       ``(B) a contribution or donation to a committee of a 
     political party; or
       ``(2) a person to solicit, accept, or receive such a 
     contribution or donation from a foreign national.''.
       (b) Prohibiting Use of Willful Blindness as Defense Against 
     Charge of Violating Foreign Contribution Ban.--
       (1) In general.--Section 319 of such Act (2 U.S.C. 441e) is 
     amended--
       (A) by redesignating subsection (b) as subsection (c); and
       (B) by inserting after subsection (a) the following new 
     subsection:

[[Page 1118]]

       ``(b) Prohibiting Use of Willful Blindness Defense.--It 
     shall not be a defense to a violation of subsection (a) that 
     the defendant did not know that the contribution originated 
     from a foreign national if the defendant should have known 
     that the contribution originated from a foreign national, 
     except that the trier of fact may not find that the defendant 
     should have known that the contribution originated from a 
     foreign national solely because of the name of the 
     contributor.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply with respect to violations occurring on or after 
     the date of the enactment of this Act.
       (c) Prohibition Applicable to All Individuals Who Are Not 
     Citizens or Nationals of the United States.--Section 
     319(b)(2) of such Act (2 U.S.C. 441e(b)(2)) is amended by 
     striking the period at the end and inserting the following: 
     ``, or in the case of an election for Federal office, an 
     individual who is not a citizen of the United States or a 
     national of the United States (as defined in section 
     101(a)(22) of the Immigration and Nationality Act).''.

     SEC. 505. PROHIBITION OF CONTRIBUTIONS BY MINORS.

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


                ``prohibition of contributions by minors

       ``Sec. 325. An individual who is 17 years old or younger 
     shall not make a contribution to a candidate or a 
     contribution or donation to a committee of a political 
     party.''.

     SEC. 506. EXPEDITED PROCEDURES.

       (a) In General.--Section 309(a) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 437g(a)) (as amended by 
     section 503(c)) is amended by adding at the end the 
     following:
       ``(14)(A) If the complaint in a proceeding was filed within 
     60 days preceding the date of a general election, the 
     Commission may take action described in this subparagraph.
       ``(B) If the Commission determines, on the basis of facts 
     alleged in the complaint and other facts available to the 
     Commission, that there is clear and convincing evidence that 
     a violation of this Act has occurred, is occurring, or is 
     about to occur, the Commission may order expedited 
     proceedings, shortening the time periods for proceedings 
     under paragraphs (1), (2), (3), and (4) as necessary to allow 
     the matter to be resolved in sufficient time before the 
     election to avoid harm or prejudice to the interests of the 
     parties.
       ``(C) If the Commission determines, on the basis of facts 
     alleged in the complaint and other facts available to the 
     Commission, that the complaint is clearly without merit, the 
     Commission may--
       ``(i) order expedited proceedings, shortening the time 
     periods for proceedings under paragraphs (1), (2), (3), and 
     (4) as necessary to allow the matter to be resolved in 
     sufficient time before the election to avoid harm or 
     prejudice to the interests of the parties; or
       ``(ii) if the Commission determines that there is 
     insufficient time to conduct proceedings before the election, 
     summarily dismiss the complaint.''.
       (b) Referral to Attorney General.--Section 309(a)(5) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) 
     is amended by striking subparagraph (C) and inserting the 
     following:
       ``(C) The Commission may at any time, by an affirmative 
     vote of at least 4 of its members, refer a possible violation 
     of this Act or chapter 95 or 96 of the Internal Revenue Code 
     of 1986, to the Attorney General of the United States, 
     without regard to any limitation set forth in this 
     section.''.

     SEC. 507. INITIATION OF ENFORCEMENT PROCEEDING.

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

     SEC. 508. PROTECTING EQUAL PARTICIPATION OF ELIGIBLE VOTERS 
                   IN CAMPAIGNS AND ELECTIONS.

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


 ``protecting equal participation of eligible voters in campaigns and 
                               elections

       ``Sec. 326. (a) In General.--Nothing in this Act may be 
     construed to prohibit any individual eligible to vote in an 
     election for Federal office from making contributions or 
     expenditures in support of a candidate for such an election 
     (including voluntary contributions or expenditures made 
     through a separate segregated fund established by the 
     individual's employer or labor organization) or otherwise 
     participating in any campaign for such an election in the 
     same manner and to the same extent as any other individual 
     eligible to vote in an election for such office.
       ``(b) No Effect on Geographic Restrictions on 
     Contributions.--Subsection (a) may not be construed to affect 
     any restriction under this title regarding the portion of 
     contributions accepted by a candidate from persons residing 
     in a particular geographic area.''.

     SEC. 509. PENALTY FOR VIOLATION OF PROHIBITION AGAINST 
                   FOREIGN CONTRIBUTIONS.

       (a) In General.--Section 319 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441e), as amended by section 
     504(b), is further amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), 
     notwithstanding any other provision of this title any person 
     who violates subsection (a) shall be sentenced to a term of 
     imprisonment which may not be more than 10 years, fined in an 
     amount not to exceed $1,000,000, or both.
       ``(2) Exception.--Paragraph (1) shall not apply with 
     respect to any violation of subsection (a) arising from a 
     contribution or donation made by an individual who is 
     lawfully admitted for permanent residence (as defined in 
     section 101(a)(22) of the Immigration and Nationality 
     Act).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to violations occurring on or after 
     the date of the enactment of this Act.

     SEC. 510. EXPEDITED COURT REVIEW OF CERTAIN ALLEGED 
                   VIOLATIONS OF FEDERAL ELECTION CAMPAIGN ACT OF 
                   1971.

       (a) In General.--Section 309 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 437g) is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Notwithstanding any other provision of this section, 
     if a candidate (or the candidate's authorized committee) 
     believes that a violation described in paragraph (2) has been 
     committed with respect to an election during the 90-day 
     period preceding the date of the election, the candidate or 
     committee may institute a civil action on behalf of the 
     Commission for relief (including injunctive relief) against 
     the alleged violator in the same manner and under the same 
     terms and conditions as an action instituted by the 
     Commission under subsection (a)(6), except that the court 
     involved shall issue a decision regarding the action as soon 
     as practicable after the action is instituted and to the 
     greatest extent possible issue the decision prior to the date 
     of the election involved.
       ``(2) A violation described in this paragraph is a 
     violation of this Act or of chapter 95 or chapter 96 of the 
     Internal Revenue Code of 1986 relating to--
       ``(A) whether a contribution is in excess of an applicable 
     limit or is otherwise prohibited under this Act; or
       ``(B) whether an expenditure is an independent expenditure 
     under section 301(17).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to elections occurring after the 
     date of the enactment of this Act.

     SEC. 511. DEPOSIT OF CERTAIN CONTRIBUTIONS AND DONATIONS IN 
                   TREASURY ACCOUNT.

       (a) In General.--Title III of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431 et seq.), as amended by sections 
     101, 401, 505, and 508, is further amended by adding at the 
     end the following new section:


 ``treatment of certain contributions and donations to be returned to 
                                 donors

       ``Sec. 327. (a) Transfer to Commission.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, if a political committee intends to return any 
     contribution or donation given to the political committee, 
     the committee shall transfer the contribution or donation to 
     the Commission if--
       ``(A) the contribution or donation is in an amount equal to 
     or greater than $500 (other than a contribution or donation 
     returned within 60 days of receipt by the committee); or
       ``(B) the contribution or donation was made in violation of 
     section 315, 316, 317, 319, 320, or 325 (other than a 
     contribution or donation returned within 30 days of receipt 
     by the committee).
       ``(2) Information included with transferred contribution or 
     donation.--A political committee shall include with any 
     contribution or donation transferred under paragraph (1)--
       ``(A) a request that the Commission return the contribution 
     or donation to the person making the contribution or 
     donation; and
       ``(B) information regarding the circumstances surrounding 
     the making of the contribution or donation and any opinion of 
     the political committee concerning whether the contribution 
     or donation may have been made in violation of this Act.
       ``(3) Establishment of escrow account.--
       ``(A) In general.--The Commission shall establish a single 
     interest-bearing escrow account for deposit of amounts 
     transferred under paragraph (1).
       ``(B) Disposition of amounts received.--On receiving an 
     amount from a political committee under paragraph (1), the 
     Commission shall--
       ``(i) deposit the amount in the escrow account established 
     under subparagraph (A); and

[[Page 1119]]

       ``(ii) notify the Attorney General and the Commissioner of 
     the Internal Revenue Service of the receipt of the amount 
     from the political committee.
       ``(C) Use of interest.--Interest earned on amounts in the 
     escrow account established under subparagraph (A) shall be 
     applied or used for the same purposes as the donation or 
     contribution on which it is earned.
       ``(4) Treatment of returned contribution or donation as a 
     complaint.--The transfer of any contribution or donation to 
     the Commission under this section shall be treated as the 
     filing of a complaint under section 309(a).
       ``(b) Use of Amounts Placed in Escrow To Cover Fines and 
     Penalties.--The Commission or the Attorney General may 
     require any amount deposited in the escrow account under 
     subsection (a)(3) to be applied toward the payment of any 
     fine or penalty imposed under this Act or title 18, United 
     States Code, against the person making the contribution or 
     donation.
       ``(c) Return of Contribution or Donation After Deposit in 
     Escrow.--
       ``(1) In general.--The Commission shall return a 
     contribution or donation deposited in the escrow account 
     under subsection (a)(3) to the person making the contribution 
     or donation if--
       ``(A) within 180 days after the date the contribution or 
     donation is transferred, the Commission has not made a 
     determination under section 309(a)(2) that the Commission has 
     reason to investigate whether that the making of the 
     contribution or donation was made in violation of this Act; 
     or
       ``(B)(i) the contribution or donation will not be used to 
     cover fines, penalties, or costs pursuant to subsection (b); 
     or
       ``(ii) if the contribution or donation will be used for 
     those purposes, that the amounts required for those purposes 
     have been withdrawn from the escrow account and subtracted 
     from the returnable contribution or donation.
       ``(2) No effect on status of investigation.--The return of 
     a contribution or donation by the Commission under this 
     subsection shall not be construed as having an effect on the 
     status of an investigation by the Commission or the Attorney 
     General of the contribution or donation or the circumstances 
     surrounding the contribution or donation, or on the ability 
     of the Commission or the Attorney General to take future 
     actions with respect to the contribution or donation.''.
       (b) Amounts Used To Determine Amount of Penalty for 
     Violation.--Section 309(a) of such Act (2 U.S.C. 437g(a)) is 
     amended by inserting after paragraph (9) the following new 
     paragraph:
       ``(10) For purposes of determining the amount of a civil 
     penalty imposed under this subsection for violations of 
     section 326, the amount of the donation involved shall be 
     treated as the amount of the contribution involved.''.
       (c) Disgorgement Authority.--Section 309 of such Act (2 
     U.S.C. 437g) is amended by adding at the end the following 
     new subsection:
       ``(e) Any conciliation agreement, civil action, or criminal 
     action entered into or instituted under this section may 
     require a person to forfeit to the Treasury any contribution, 
     donation, or expenditure that is the subject of the agreement 
     or action for transfer to the Commission for deposit in 
     accordance with section 326.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply to contributions or donations refunded on 
     or after the date of the enactment of this Act, without 
     regard to whether the Federal Election Commission or Attorney 
     General has issued regulations to carry out section 326 of 
     the Federal Election Campaign Act of 1971 (as added by 
     subsection (a)) by such date.

     SEC. 512. ESTABLISHMENT OF A CLEARINGHOUSE OF INFORMATION ON 
                   POLITICAL ACTIVITIES WITHIN THE FEDERAL 
                   ELECTION COMMISSION.

       (a) Establishment.--There shall be established within the 
     Federal Election Commission a clearinghouse of public 
     information regarding the political activities of foreign 
     principals and agents of foreign principals. The information 
     comprising this clearinghouse shall include only the 
     following:
       (1) All registrations and reports filed pursuant to the 
     Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.) 
     during the preceding 5-year period.
       (2) All registrations and reports filed pursuant to the 
     Foreign Agents Registration Act, as amended (22 U.S.C. 611 et 
     seq.), during the preceding 5-year period.
       (3) The listings of public hearings, hearing witnesses, and 
     witness affiliations printed in the Congressional Record 
     during the preceding 5-year period.
       (4) Public information disclosed pursuant to the rules of 
     the Senate or the House of Representatives regarding 
     honoraria, the receipt of gifts, travel, and earned and 
     unearned income.
       (5) All reports filed pursuant to title I of the Ethics in 
     Government Act of 1978 (5 U.S.C. App.) during the preceding 
     5-year period.
       (6) All public information filed with the Federal Election 
     Commission pursuant to the Federal Election Campaign Act of 
     1971 (2 U.S.C. 431 et seq.) during the preceding 5-year 
     period.
       (b) Disclosure of Other Information Prohibited.--The 
     disclosure by the clearinghouse, or any officer or employee 
     thereof, of any information other than that set forth in 
     subsection (a) is prohibited, except as otherwise provided by 
     law.
       (c) Director of Clearinghouse.--
       (1) Duties.--The clearinghouse shall have a Director, who 
     shall administer and manage the responsibilities and all 
     activities of the clearinghouse. In carrying out such duties, 
     the Director shall--
       (A) develop a filing, coding, and cross-indexing system to 
     carry out the purposes of this section (which shall include 
     an index of all persons identified in the reports, 
     registrations, and other information comprising the 
     clearinghouse);
       (B) notwithstanding any other provision of law, make copies 
     of registrations, reports, and other information comprising 
     the clearinghouse available for public inspection and 
     copying, beginning not later than 30 days after the 
     information is first available to the public, and permit 
     copying of any such registration, report, or other 
     information by hand or by copying machine or, at the request 
     of any person, furnish a copy of any such registration, 
     report, or other information upon payment of the cost of 
     making and furnishing such copy, except that no information 
     contained in such registration or report and no such other 
     information shall be sold or used by any person for the 
     purpose of soliciting contributions or for any profit-making 
     purpose; and
       (C) not later than 150 days after the date of the enactment 
     of this Act and at any time thereafter, to prescribe, in 
     consultation with the Comptroller General, such rules, 
     regulations, and forms, in conformity with the provisions of 
     chapter 5 of title 5, United States Code, as are necessary to 
     carry out the provisions of this section in the most 
     effective and efficient manner.
       (2) Appointment.--The Director shall be appointed by the 
     Federal Election Commission.
       (3) Term of service.--The Director shall serve a single 
     term of a period of time determined by the Commission, but 
     not to exceed 5 years.
       (d) Penalties for Disclosure of Information.--Any person 
     who discloses information in violation of subsection (b), and 
     any person who sells or uses information for the purpose of 
     soliciting contributions or for any profit-making purpose in 
     violation of subsection (c)(1)(B), shall be imprisoned for a 
     period of not more than 1 year, or fined in the amount 
     provided in title 18, United States Code, or both.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to conduct 
     the activities of the clearinghouse.
       (f) Foreign Principal.--In this section, the term ``foreign 
     principal'' shall have the same meaning given the term 
     ``foreign national'' under section 319 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 441e), as in effect 
     as of the date of the enactment of this Act.

     SEC. 513. CLARIFICATION OF RIGHT OF NATIONALS OF THE UNITED 
                   STATES TO MAKE POLITICAL CONTRIBUTIONS.

       Section 319(d)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441e(d)(2)), as amended by sections 504(b) and 
     509(a), is further amended by inserting after ``United 
     States'' the following: ``or a national of the United States 
     (as defined in section 101(a)(22) of the Immigration and 
     Nationality Act)''.

      TITLE VI--INDEPENDENT COMMISSION ON CAMPAIGN FINANCE REFORM

     SEC. 601. ESTABLISHMENT AND PURPOSE OF COMMISSION.

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

     SEC. 602. MEMBERSHIP OF COMMISSION.

       (a) Composition.--The Commission shall be composed of 12 
     members appointed within 15 days after the date of the 
     enactment of this Act by the President from among individuals 
     who are not incumbent Members of Congress and who are 
     specially qualified to serve on the Commission by reason of 
     education, training, or experience.
       (b) Appointment.--
       (1) In general.--Members shall be appointed as follows:
       (A) Three members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the Speaker of the House of Representatives.
       (B) Three members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the majority leader of the Senate.
       (C) Three members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the minority leader of the House of 
     Representatives.
       (D) Three members (one of whom shall be a political 
     independent) shall be appointed from among a list of nominees 
     submitted by the minority leader of the Senate.
       (2) Failure to submit list of nominees.--If an official 
     described in any of the subparagraphs of paragraph (1) fails 
     to submit a list

[[Page 1120]]

     of nominees to the President during the 15-day period which 
     begins on the date of the enactment of this Act--
       (A) such subparagraph shall no longer apply; and
       (B) the President shall appoint three members (one of whom 
     shall be a political independent) who meet the requirements 
     described in subsection (a) and such other criteria as the 
     President may apply.
       (3) Political independent defined.--In this subsection, the 
     term ``political independent'' means an individual who at no 
     time after January 1992--
       (A) has held elective office as a member of the Democratic 
     or Republican party;
       (B) has received any wages or salary from the Democratic or 
     Republican party or from a Democratic or Republican party 
     office-holder or candidate; or
       (C) has provided substantial volunteer services or made any 
     substantial contribution to the Democratic or Republican 
     party or to a Democratic or Republican party office-holder or 
     candidate.
       (c) Chairman.--At the time of the appointment, the 
     President shall designate one member of the Commission as 
     Chairman of the Commission.
       (d) Terms.--The members of the Commission shall serve for 
     the life of the Commission.
       (e) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (f) Political Affiliation.--Not more than four members of 
     the Commission may be of the same political party.

     SEC. 603. POWERS OF COMMISSION.

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

     SEC. 604. REPORT AND RECOMMENDED LEGISLATION.

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

     SEC. 605. TERMINATION.

       The Commission shall cease to exist 90 days after the date 
     of the submission of its report under section 604.

     SEC. 606. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission 
     such sums as are necessary to carry out its duties under this 
     title.

TITLE VII--PROHIBITING USE OF WHITE HOUSE MEALS AND ACCOMMODATIONS FOR 
                         POLITICAL FUNDRAISING

     SEC. 701. PROHIBITING USE OF WHITE HOUSE MEALS AND 
                   ACCOMMODATIONS FOR POLITICAL FUNDRAISING.

       (a) In General.--Chapter 29 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 612. Prohibiting use of meals and accommodations at 
       White House for political fundraising

       ``(a) It shall be unlawful for any person to provide or 
     offer to provide any meals or accommodations at the White 
     House in exchange for any money or other thing of value, or 
     as a reward for the provision of any money or other thing of 
     value, in support of any political party or the campaign for 
     electoral office of any candidate.
       ``(b) Any person who violates this section shall be fined 
     under this title or imprisoned not more than 3 years, or 
     both.
       ``(c) For purposes of this section, any official residence 
     or retreat of the President (including private residential 
     areas and the grounds of such a residence or retreat) shall 
     be treated as part of the White House.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     29 of title 18, United States Code, is amended by adding at 
     the end the following new item:

``612. Prohibiting use of meals and accommodations at White House for 
              political fundraising.''.

  TITLE VIII--SENSE OF THE CONGRESS REGARDING FUNDRAISING ON FEDERAL 
                          GOVERNMENT PROPERTY

     SEC. 801. SENSE OF THE CONGRESS REGARDING APPLICABILITY OF 
                   CONTROLLING LEGAL AUTHORITY TO FUNDRAISING ON 
                   FEDERAL GOVERNMENT PROPERTY.

       It is the sense of the Congress that Federal law clearly 
     demonstrates that ``controlling legal authority'' under title 
     18, United States Code, prohibits the use of Federal 
     Government property to raise campaign funds.

  TITLE IX--REIMBURSEMENT FOR USE OF GOVERNMENT PROPERTY FOR CAMPAIGN 
                                ACTIVITY

     SEC. 901. REQUIRING NATIONAL PARTIES TO REIMBURSE AT COST FOR 
                   USE OF AIR FORCE ONE FOR POLITICAL FUNDRAISING.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.), as amended by sections 101, 401, 505, 
     508, and 511, is further amended by adding at the end the 
     following new section:


   ``reimbursement by political parties for use of air force one for 
                         political fundraising

       ``Sec. 328. (a) In General.--If the President, Vice 
     President, or the head of any executive department (as 
     defined in section 101 of title 5, United States Code) uses 
     Air Force One for transportation for any travel which 
     includes a fundraising event for the benefit of any political 
     committee of a national political party, such political 
     committee shall reimburse the Federal Government for the fair 
     market value of the transportation of the individual 
     involved, based on the cost of an equivalent commercial 
     chartered flight.
       ``(b) Air Force One Defined.--In subsection (a), the term 
     `Air Force One' means the airplane operated by the Air Force 
     which has been specially configured to carry out the mission 
     of transporting the President.''.

     SEC. 902. REIMBURSEMENT FOR USE OF GOVERNMENT EQUIPMENT FOR 
                   CAMPAIGN-RELATED TRAVEL.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.), as amended by sections 101, 401, 505, 
     508, 511, and 901, is further amended by adding at the end 
     the following new section:


 ``reimbursement for use of government equipment for campaign-related 
                                 travel

       ``Sec. 329. If a candidate for election for Federal office 
     (other than a candidate who holds Federal office) uses 
     Federal government property as a means of transportation for 
     purposes related (in whole or in part) to the campaign for 
     election for such office, the principal campaign committee of 
     the candidate shall reimburse the Federal government for the 
     costs associated with providing the transportation.''.

            TITLE X--PROHIBITING USE OF WALKING AROUND MONEY

     SEC. 1001. PROHIBITING CAMPAIGNS FROM PROVIDING CURRENCY TO 
                   INDIVIDUALS FOR PURPOSES OF ENCOURAGING TURNOUT 
                   ON DATE OF ELECTION.

       Title III of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.), as amended by sections 101, 401, 505, 
     508, 511, 901, and 902, is further amended by adding at the 
     end the following new section:


     ``prohibiting use of currency to promote election day turnout

       ``Sec. 330. It shall be unlawful for any political 
     committee to provide currency to any individual (directly or 
     through an agent of the committee) for purposes of 
     encouraging the individual to appear at the polling place for 
     the election.''.

            TITLE XI--ENHANCING ENFORCEMENT OF CAMPAIGN LAW

     SEC. 1101. ENHANCING ENFORCEMENT OF CAMPAIGN FINANCE LAW.

       (a) Mandatory Imprisonment for Criminal Conduct.--Section 
     309(d)(1)(A) of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 437g(d)(1)(A)) is amended--
       (1) in the first sentence, by striking ``shall be fined, or 
     imprisoned for not more than one year, or both'' and 
     inserting ``shall be

[[Page 1121]]

     imprisoned for not fewer than 1 year and not more than 10 
     years''; and
       (2) by striking the second sentence.
       (b) Concurrent Authority of Attorney General To Bring 
     Criminal Actions.--Section 309(d) of such Act (2 U.S.C. 
     437g(d)) is amended by adding at the end the following new 
     paragraph:
       ``(4) In addition to the authority to bring cases referred 
     pursuant to subsection (a)(5), the Attorney General may at 
     any time bring a criminal action for a violation of this Act 
     or of chapter 95 or chapter 96 of the Internal Revenue Code 
     of 1986.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to actions brought with respect to 
     elections occurring after January 2002.

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

     SEC. 1201. SEVERABILITY.

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

     SEC. 1202. REVIEW OF CONSTITUTIONAL ISSUES.

       An appeal may be taken directly to the Supreme Court of the 
     United States from any final judgment, decree, or order 
     issued by any court ruling on the constitutionality of any 
     provision of this Act or amendment made by this Act.

     SEC. 1203. EFFECTIVE DATE.

       Except as otherwise provided in this Act, this Act and the 
     amendments made by this Act shall take effect upon the 
     expiration of the 90-day period which begins on the date of 
     the enactment of this Act.

     SEC. 1204. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out this Act and the amendments 
     made by this Act not later than 45 days after the date of the 
     enactment of this Act.

                               H.R. 2356

                          Offered By: Mr. Ney

       Amendment No. 15: Amend section 301(20) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(20) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot);
       ``(iii) a public communication that refers to a clearly 
     identified candidate for Federal office (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) services provided during any month by an employee of 
     a State, district, or local committee of a political party 
     who spends more than 25 percent of that individual's 
     compensated time during that month on activities in 
     connection with a Federal election.
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) a public communication that refers solely to a 
     clearly identified candidate for State or local office, if 
     the communication is not a Federal election activity 
     described in subparagraph (A)(i) or (ii);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated to pay 
     for a Federal election activity described in subparagraph 
     (A);
       ``(iii) the costs of a State, district, or local political 
     convention; and
       ``(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.

       In section 402(b), strike ``At any time after such 
     effective date, the committee may spend such funds for 
     activities which are solely to defray the costs of the 
     construction or purchase of any office building or 
     facility.'' and insert the following: ``At no time after such 
     effective date may the committee spend any such funds for 
     activities to defray the costs of the construction or 
     purchase of any office building or facility.''.

                               H.R. 2356

                          Offered By: Mr. Ney

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Campaign 
     Reform and Citizen Participation Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.
Sec. 202. Increase in limits on contributions to State parties.
Sec. 203. Treatment of contributions to national party under aggregate 
              annual limit on individual contributions.
Sec. 204. Exemption of costs of volunteer campaign materials produced 
              and distributed by parties from treatment as 
              contributions and expenditures.
Sec. 205. Indexing.
Sec. 206. Permitting national parties to establish accounts for making 
              expenditures in excess of limits on behalf of candidates 
              facing wealthy opponents.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior 
              to election.
Sec. 302. Disclosure of information on targeted mass communications.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

     SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL POLITICAL 
                   PARTIES.

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


               ``soft money of national political parties

       ``Sec. 323. (a) Prohibiting Use of Soft Money for Federal 
     Election Activity.--A national committee of a political party 
     (including a national congressional campaign committee of a 
     political party) may not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of funds 
     or any other thing of value for Federal election activity, or 
     spend any funds for Federal election activity, that are not 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(b) Limit on Amount of Nonfederal Funds Provided to Party 
     by Any Person for Any Purpose.--
       ``(1) Limit on amount.--No person shall make contributions, 
     donations, or transfers of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party in any calendar year in an aggregate 
     amount equal to or greater than $20,000.
       ``(2) Prohibiting provision of nonfederal funds by 
     individuals.--No individual may make any contribution, 
     donation, or transfer of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party.
       ``(c) Applicability.--This subsection shall apply to any 
     political committee established and maintained by a national 
     political party, any officer or agent of such a committee 
     acting on behalf of the committee, and any entity that is 
     directly or indirectly established, maintained, or controlled 
     by such a national committee.
       ``(d) Definitions.--
       ``(1) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election, unless the activity constitutes generic 
     campaign activity;
       ``(ii) voter identification or get-out-the-vote activity 
     conducted in connection with an election in which a candidate 
     for Federal office appears on the ballot (regardless of 
     whether a candidate for State or local office also appears on 
     the ballot), unless the activity constitutes generic campaign 
     activity;
       ``(iii) any public communication that refers to or depicts 
     a clearly identified candidate for Federal office (regardless 
     of whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) any public communication made by means of any 
     broadcast, cable, or satellite communication.
       ``(B) Exception for certain administrative activities.--The 
     term `Federal election

[[Page 1122]]

     activity' does not include any activity relating to 
     establishment, administration, or solicitation costs of a 
     political committee established and maintained by a national 
     political party, so long as the funds used to carry out the 
     activity are derived from funds or payments made to the 
     committee which are segregated and used exclusively to defray 
     the costs of such activities.
       ``(2) Generic campaign activity.--The term `generic 
     campaign activity' means any activity that does not mention, 
     depict, or otherwise promote a clearly identified Federal 
     candidate.
       ``(3) Public communication.--The term `public 
     communication' means a communication by means of any 
     broadcast, cable, or satellite communication, newspaper, 
     magazine, outdoor advertising facility, or direct mail.
       ``(4) Direct mail.--The term `direct mail' means a mailing 
     by a commercial vendor or any mailing made from a commercial 
     list.''.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

     SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

       (a) Contributions by Committees to National Parties.--
     Section 315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is 
     amended by striking ``$15,000'' and inserting ``$30,000''.
       (b) Aggregate Annual Limit on Contributions by 
     Individuals.--Section 315(a)(3) of such Act (2 U.S.C. 
     441a(a)(3)) is amended by striking ``$25,000'' and inserting 
     ``$37,500''.

     SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE 
                   PARTIES.

       (a) Contributions by Individuals.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.
       (b) Contributions by Committees.--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) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.

     SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER 
                   AGGREGATE ANNUAL LIMIT ON INDIVIDUAL 
                   CONTRIBUTIONS.

       Section 315(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441(a)(3)) is amended--
       (1) by striking ``(3)'' and inserting ``(3)(A)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Subparagraph (A) shall not apply with respect to any 
     contribution made to any political committee established and 
     maintained by a national political party which is not the 
     authorized political committee of any candidate.''.

     SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS 
                   PRODUCED AND DISTRIBUTED BY PARTIES FROM 
                   TREATMENT AS CONTRIBUTIONS AND EXPENDITURES.

       (a) Treatment as Contributions.--Section 301(8)(B)(x) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(8)(B)(x)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.
       (b) Treatment as Expenditures.--Section 301(9)(B)(viii) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(9)(B)(viii)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.

     SEC. 205. INDEXING.

       Section 315(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking the second and third sentences;
       (B) by inserting ``(A)'' before ``At the beginning''; and
       (C) by adding at the end the following:
       ``(B) Except as provided in subparagraph (C), in any 
     calendar year after 2002--
       ``(i) a limitation established by subsections (a), (b), 
     (d), or (h) shall be increased by the percent difference 
     determined under subparagraph (A);
       ``(ii) each amount so increased shall remain in effect for 
     the calendar year; and
       ``(iii) if any amount after adjustment under clause (i) is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.
       ``(C) In the case of limitations under subsections (a) and 
     (h), increases shall only be made in odd-numbered years and 
     such increases shall remain in effect for the 2-year period 
     beginning on the first day following the date of the last 
     general election in the year preceding the year in which the 
     amount is increased and ending on the date of the next 
     general election.''; and
       (2) in paragraph (2)(B), by striking ``means the calendar 
     year 1974'' and inserting ``means--
       ``(i) for purposes of subsections (b) and (d), calendar 
     year 1974; and
       ``(ii) for purposes of subsections (a) and (h), calendar 
     year 2001''.

     SEC. 206. PERMITTING NATIONAL PARTIES TO ESTABLISH ACCOUNTS 
                   FOR MAKING EXPENDITURES IN EXCESS OF LIMITS ON 
                   BEHALF OF CANDIDATES FACING WEALTHY OPPONENTS.

       (a) Establishment of Accounts.--Section 315(d) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is 
     amended by adding at the end the following new paragraph:
       ``(4)(A) Subject to subparagraph (B), the national 
     committee of a political party may make expenditures in 
     connection with the general election campaign of a candidate 
     for Federal office (other than a candidate for President) who 
     is affiliated with such party in an amount in excess of the 
     limit established under paragraph (3) if--
       ``(i) the candidate's opponent in the general election 
     campaign makes expenditures of personal funds in connection 
     with the campaign in an amount in excess of $100,000 (as 
     provided in the notifications submitted under section 
     304(a)(6)(B)); and
       ``(ii) the expenditures are made from a separate account of 
     the party used exclusively for making expenditures pursuant 
     to this paragraph.
       ``(B) The amount of expenditures made in accordance with 
     subparagraph (A) by the national committee of a political 
     party in connection with the general election campaign of a 
     candidate may not exceed the amount of expenditures of 
     personal funds made by the candidate's opponent in connection 
     with the campaign (as provided in the notifications submitted 
     under section 304(a)(6)(B)).''.
       (b) Waiver of Limits on Contributions to Accounts.--Section 
     315(a) of such Act (2 U.S.C. 441a(a)) is amended by adding at 
     the end the following new paragraph:
       ``(9) The limitations imposed by paragraphs (1)(B), (2)(B), 
     and (3) shall not apply with respect to contributions made to 
     the national committee of a political party which are 
     designated by the donor to be deposited solely into the 
     account established by the party under subsection (d)(4).''.
       (c) Notification of Expenditures of Personal Funds.--
     Section 304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is 
     amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B)(i) The principal campaign committee of a candidate 
     (other than a candidate for President) shall submit the 
     following notifications relating to expenditures of personal 
     funds by such candidate (including contributions by the 
     candidate or the candidate's spouse to such committee and 
     funds derived from loans made by the candidate or the 
     candidate's spouse to such committee):
       ``(I) A notification of the first such expenditure (or 
     contribution) by which the aggregate amount of personal funds 
     expended (or contributed) with respect to an election exceeds 
     $100,000.
       ``(II) After the notification is made under subclause (I), 
     a notification of each such subsequent expenditure (or 
     contribution) which, taken together with all such subsequent 
     expenditures (and contributions) in any amount not included 
     in the most recent report under this subparagraph, totals 
     $5,000 or more.
       ``(ii) Each of the notifications submitted under clause 
     (i)--
       ``(I) shall be submitted not later than 24 hours after the 
     expenditure or contribution which is the subject of the 
     notification is made;
       ``(II) shall include the name of the candidate, the office 
     sought by the candidate, and the date of the expenditure or 
     contribution and amount of the expenditure or contribution 
     involved; and
       ``(III) shall include the total amount of all such 
     expenditures and contributions made with respect to the same 
     election as of the date of expenditure or contribution which 
     is the subject of the notification.''.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

     SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS 
                   BROADCAST PRIOR TO ELECTION.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following new 
     subsection:
       ``(e) Disclosure of Information on Certain Communications 
     Broadcast Prior to Elections.--
       ``(1) In general.--Any person who makes a disbursement for 
     a communication described in paragraph (3) shall, not later 
     than 24 hours

[[Page 1123]]

     after making the disbursement, file with the Commission a 
     statement containing the information required under paragraph 
     (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of the disbursement.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Communications described.--
       ``(A) In general.--A communication described in this 
     paragraph is any communication--
       ``(i) which is disseminated to the public by means of any 
     broadcast, cable, or satellite communication during the 120-
     day period ending on the date of a Federal election; and
       ``(ii) which mentions a clearly identified candidate for 
     such election (by name, image, or likeness).
       ``(B) Exception.--A communication is not described in this 
     paragraph if--
       ``(i) the communication appears in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, unless such facilities are owned 
     or controlled by any political party, political committee, or 
     candidate; or
       ``(ii) the communication constitutes an expenditure under 
     this Act.
       ``(4) Coordination with other requirements.--Any 
     requirement to file a statement under this subsection shall 
     be in addition to any other reporting requirement under this 
     Act.
       ``(5) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

     SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS 
                   COMMUNICATIONS.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434), as amended by section 301, is further amended by 
     adding at the end the following new subsection:
       ``(f) Disclosure of Information on Targeted Mass 
     Communications.--
       ``(1) In general.--Any person who makes a disbursement for 
     targeted mass communications in an aggregate amount in excess 
     of $50,000 during any calendar year shall, within 24 hours of 
     each disclosure date, file with the Commission a statement 
     containing the information described in paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of each such disbursement of more than 
     $200 made by the person during the period covered by the 
     statement and the identification of the person to whom the 
     disbursement was made.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Targeted mass communication defined.--
       ``(A) In general.--In this subsection, the term `targeted 
     mass communication' means any communication--
       ``(i) which is disseminated during the 120-day period 
     ending on the date of a Federal election;
       ``(ii) which refers to or depicts a clearly identified 
     candidate for such election (by name, image, or likeness); 
     and
       ``(iii) which is targeted to the relevant electorate.
       ``(B) Targeting to relevant electorate.--
       ``(i) Broadcast communications.--For purposes of this 
     paragraph, a communication disseminated to the public by 
     means of any broadcast, cable, or satellite communication 
     which refers to or depicts a clearly identified candidate for 
     Federal office is `targeted to the relevant electorate' if 
     the communication is disseminated by a broadcaster whose 
     audience includes--

       ``(I) a substantial number of residents of the district the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Representative in, or Delegate or Resident 
     Commissioner to, the Congress; or
       ``(II) a substantial number of residents of the State the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Senator.

       ``(ii) Other communications.--For purposes of this 
     paragraph, a communication which is not described in clause 
     (i) which refers to or depicts a clearly identified candidate 
     for Federal office is `targeted to the relevant electorate' 
     if--

       ``(I) more than 10 percent of the total number of intended 
     recipients of the communication are members of the electorate 
     involved with respect to such Federal office; or
       ``(II) more than 10 percent of the total number of members 
     of the electorate involved with respect to such Federal 
     office receive the communication.

       ``(C) Exceptions.--The term `targeted mass communication' 
     does not include--
       ``(i) a communication appearing in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, newspaper, magazine, or other 
     periodical publication, unless such facilities are owned or 
     controlled by any political party, political committee, or 
     candidate;
       ``(ii) a communication made by any membership organization 
     (including a labor organization) or corporation solely to its 
     members, stockholders, or executive or administrative 
     personnel, if such membership organization or corporation is 
     not organized primarily for the purpose of influencing the 
     nomination for election, or election, of any individual to 
     Federal office; or
       ``(iii) a communication which constitutes an expenditure 
     under this Act.
       ``(4) Disclosure date.--For purposes of this subsection, 
     the term `disclosure date' means--
       ``(A) the first date during any calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000; and
       ``(B) any other date during such calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000 since the 
     most recent disclosure date for such calendar year.
       ``(5) Coordination with other requirements.--Any 
     requirement to report under this subsection shall be in 
     addition to any other reporting requirement under this Act.
       ``(6) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on the 
     date of the enactment of this Act.

                               H.R. 2356

                             Offered By: __

       Amendment No. 17: Add at the end title II the following new 
     subtitle:

   Subtitle C--Exemption of Communications Pertaining to the Second 
                     Amendment of the Constitution

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) The Second Amendment to the United States Constitution 
     protects the right of individual persons to keep and bear 
     arms.
       (2) There are more than 60,000,000 gun owners in the United 
     States.
       (3) The Second Amendment to the Constitution of the United 
     States protects the right of Americans to carry firearms in 
     defense of themselves and others.
       (4) The United States Court of Appeals in U.S. v. Emerson 
     reaffirmed the fact that the right to keep and bear arms is 
     an individual right protected by the Constitution.
       (5) Americans who are concerned about threats to their 
     ability to keep and bear arms have the right to petition 
     their government.
       (6) The Supreme Court, in U.S. v. Cruikshank (92 U.S. 542, 
     1876) recognized that the right to arms preexisted the 
     Constitution. The Court stated that the right to arms ``is 
     not a right granted by the Constitution. Neither is it in any 
     manner dependent upon that instrument for its existence.''.
       (7) In Beard v. United States (158 U.S. 550, 1895) the 
     Court approved the common-law rule that a person ``may repel 
     force by force'' in self-defense, and concluded that when 
     attacked a person ``was entitled to stand his ground and meet 
     any attack made upon him with a deadly weapon, in such a way 
     and with such force'' as needed to prevent ``great bodily 
     injury or death''. The laws of all 50 states, and the 
     constitutions of most States, recognize the right to use 
     armed force in self-defense.
       (8) In order to protect Americans' constitutional rights 
     under the Second Amendment, the First Amendment provides the 
     ability for citizens to address the Government.
       (9) The First Amendment to the United States Constitution 
     states that, ``Congress

[[Page 1124]]

     shall make no law respecting an establishment of religion, or 
     prohibiting the free exercise thereof; or abridging the 
     freedom of speech, or of the press; or of the right of the 
     people to peaceably assemble, and to petition the Government 
     for a redress of grievances.''.
       (10) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (11) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (12) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (13) Citizens who have an interest in issues about or 
     related to the Second Amendment of the Constitution have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communications in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (14) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning the right to keep and bear arms to their elected 
     officials and the general public.
       (15) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO THE 
                   SECOND AMENDMENT OF THE CONSTITUTION.

       None of the restrictions or requirements contained in this 
     title shall apply to any form or mode of communication to the 
     public that consists of information or commentary regarding 
     the statements, actions, positions, or voting records of any 
     person who holds congressional or other Federal office, or 
     who is a candidate for congressional or other Federal office, 
     on any matter pertaining to the Second Amendment.

                               H.R. 2356

                             Offered By: __

       Amendment No.18: Add at the end of title II the following 
     new subtitle:

    Subtitle C--Exemption of Communications Pertaining to Veterans, 
                     Military Personnel, or Seniors

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 42,000,000 men and women have served in the 
     United States Armed Forces from the Revolution onward and 
     more than 25 million are still living. Living veterans and 
     their families, plus the living dependents of deceased 
     veterans, constitute a significant part of the present United 
     States population.
       (2) American veterans are black and they are white; they 
     are of every race and ethnic heritage. They are men, and they 
     are women. They are Christians, they are Muslims, they are 
     Jews. They are fathers, mothers, sisters, brothers, sons and 
     daughters. They are neighbors, down the street or right next 
     door. They are teachers in our schools, they are factory 
     workers. They are Americans living today who served in the 
     armed services, and they are the more than 1,000,000 who have 
     died in America's wars.
       (3) America's veterans are men and women who have fought to 
     protect the United States against foreign aggressors as 
     Soldiers, Sailors, Airmen, Coast Guardsmen and Marines. The 
     members of our elite organization are those who have 
     discharged their very special obligation of citizenship as 
     servicemen and women, and who today continue to expend great 
     time, effort and energy in the service of their fellow 
     veterans and their communities.
       (4) There is a bond joining every veteran from every branch 
     of the service. Whether drafted or enlisted, commissioned or 
     noncommissioned, each took an oath, lived by a code, and 
     stood ready to fight and die for their country.
       (5) American men and women in uniform risk their lives on a 
     daily basis to defend our freedom and democracy. Americans 
     have always believed that there are values worth fighting 
     for--values and liberties upon which America was founded and 
     which we have carried forward for more than 225 years, that 
     men and women of this great nation gave their lives to 
     preserve.
       (6) It is the sacrifice borne by generations of American 
     veterans that has made us strong and has rendered us the 
     beacon of freedom guiding the course of nations throughout 
     the world. American veterans have fought for freedom for 
     Americans, as well as citizens throughout the world. They 
     have helped to defend and preserve the values of freedom of 
     speech, democracy, voting rights, human rights, equal access 
     and the rights of the individual--those values felt and 
     nurtured on every continent in our world.
       (7) The freedoms and opportunities we enjoy today were 
     bought and paid for with their devotion to duty and their 
     sacrifices. We can never say it too many times: We are the 
     benefactors of their sacrifice, and we are grateful.
       (8) Of the 25,000,000 veterans currently alive, nearly 
     three of every four served during a war or an official period 
     of hostility. About a quarter of the Nation's population--
     approximately 70,000,000 people--are potentially eligible for 
     Veterans' Administration benefits and services because they 
     are veterans, family members or survivors of veterans.
       (9) The present veteran population is estimated at 
     25,600,000, as of July 1, 1997. Nearly 80 of every 100 living 
     veterans served during defined periods of armed hostilities. 
     Altogether, almost one-third of the nation's population-
     approximately 70,000,000 persons who are veterans, dependents 
     and survivors of deceased veterans--are potentially eligible 
     for Veterans' Administration benefits and services.
       (10) Care for veterans and dependents spans centuries. The 
     last dependent of a Revolutionary War veteran died in 1911; 
     the War of 1812's last dependent died in 1946; the Mexican 
     War's, in 1962.
       (11) The Veterans' Administration health care system has 
     grown from 54 hospitals in 1930, to include 171 medical 
     centers; more than 350 outpatient, community, and outreach 
     clinics; 126 nursing home care units; and 35 domiciliaries. 
     Veterans' Administration health care facilities provide a 
     broad spectrum of medical, surgical, and rehabilitative care.
       (12) World War II resulted in not only a vast increase in 
     the veteran population, but also in large number of new 
     benefits enacted by the Congress for veterans of the war. The 
     World War II GI Bill, signed into law on June 22, 1944, is 
     said to have had more impact on the American way of life than 
     any law since the Homestead Act more than a century ago.
       (13) About 2,700,000 veterans receive disability 
     compensation or pensions from VA. Also receiving Veterans' 
     Administration benefits are 592,713 widows, children and 
     parents of deceased veterans. Among them are 133,881 
     survivors of Vietnam era veterans and 295,679 survivors of 
     World War II veterans. In fiscal year 2001, Veterans' 
     Administration planned to spend $22,000,000,000 yearly in 
     disability compensation, death compensation and pension to 
     3,200,000 people.
       (14) Veterans' Administration manages the largest medical 
     education and health professions training program in the 
     United States. Veterans' Administration facilities are 
     affiliated with 107 medical schools, 55 dental schools and 
     more than 1,200 other schools across the country. Each year, 
     about 85,000 health professionals are trained in Veterans' 
     Administration medical centers. More than half of the 
     physicians practicing in the United States have had part of 
     their professional education in the Veterans' Administration 
     health care system.
       (15) 75 percent of Veterans' Administration researchers are 
     practicing physicians. Because of their dual roles, Veterans' 
     Administration research often immediately benefits patients. 
     Functional electrical stimulation, a technology using 
     controlled electrical current to activate paralyzed muscles, 
     is being developed at Veterans' Administration clinical 
     facilities and laboratories throughout the country. Through 
     this technology, paraplegic patients have been able to stand 
     and, in some instances, walk short distances and climb 
     stairs. Patients with quadriplegia are able to use their 
     hands to grasp objects.
       (16) There are more than 35,000,000 persons in the United 
     States aged 65 and over.

[[Page 1125]]

       (17) Seniors are a diverse population, each member having 
     his or her own political and economic issues.
       (18) Seniors and their families have many important issues 
     for which they seek congressional action. Some of these 
     issues include, but are not limited to, health care, Social 
     Security, and taxes.
       (19) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (20) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (21) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (22) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (23) Citizens who have an interest in issues about or 
     related to veterans, military personnel, seniors, and their 
     families have the Constitutional right to criticize or praise 
     their elected officials individually or collectively as a 
     group. Communications in the form of criticism or praise of 
     elected officials is preciously protected as free speech 
     under the First Amendment of the Constitution of the United 
     States.
       (24) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning veterans, military personnel, seniors, and their 
     families to their elected officials and the general public.
       (25) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO 
                   VETERANS, MILITARY PERSONNEL, OR SENIORS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to veterans, military personnel, or senior 
     citizens, or to the immediate family members of veterans, 
     military personnel, or senior citizens.

                               H.R. 2356

                             Offered By: __

       Amendment No. 19: Amend section 402 to read as follows:

     SEC. 402. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act shall take 
     effect February 14, 2002.
       (b) Transition Rule for Spending of Funds by National 
     Parties.--If a national committee of a political party 
     described in section 323(a)(1) of the Federal Election 
     Campaign Act of 1971 (as added by section 101(a)), including 
     any person who is subject to such section, has received funds 
     described in such section prior to the effective date 
     described in subsection (a) which remain unexpended as of 
     such date, the committee shall return the funds on a pro rata 
     basis to the persons who provided the funds to the committee.

                               H.R. 2356

                             Offered By: __

       Amendment No. 20. Add at the end of title II the following 
     new subtitle:

Subtitle C--Exemption of Communications Pertaining to Workers, Farmers, 
                       Families, and Individuals

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) There are approximately 138 million people employed in 
     the United States.
       (2) Thousands of organizations and associations represent 
     these employed persons and their employers in numerous forms 
     and forums, not least of which is by participating in our 
     electoral and political system in a number of ways, including 
     informing citizens of key votes that affect their common 
     interests, criticizing and praising elected officials for 
     their position on issues, contributing to candidates and 
     political parties, registering voters, and conducting get-
     out-the-vote activities.
       (3) The rights of American workers to bargain collectively 
     are protected by their First Amendment to the Constitution 
     and by provisions in the National Labor Relations Act. 
     Federal law guarantees the rights of workers to choose 
     whether to bargain collectively through a union.
       (4) Fourteen percent of the American workforce has chosen 
     to affiliate with a labor union. Federal law allows workers 
     and unions the opportunity to combine strength and to work 
     together to seek to improve the lives of America's working 
     families, bring fairness and dignity to the workplace and 
     secure social and economic equity in our nation.
       (5) Nearly three quarters of all United States business 
     firms have no payroll. Most are self-employed persons 
     operating unincorporated businesses, and may or may not be 
     the owner's principal source of income.
       (6) Minorities owned fewer than 7 percent of all United 
     States firms, excluding C corporations, in 1982, but this 
     share soared to about 15 percent by 1997. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (7) In 1999, women made up 46 percent of the labor force. 
     The labor force participation rate of American women was the 
     highest in the world.
       (8) Labor/Worker unions represent 16 million working women 
     and men of every race and ethnicity and from every walk of 
     life.
       (9) In recent years, union members and their families have 
     mobilized in growing numbers. In the 2000 election, 26 
     percent of the nation's voters came from union households.
       (10) According to the 2000 census, total United States 
     families were totaled at over 105 million.
       (11) In 2000, there were 8.7 million African American 
     families.
       (12) Asians have larger families than other groups. For 
     example, the average Asian family size is 3.6 persons, as 
     opposed to an average Caucasian family of 3.1 persons.
       (13) American farmers, ranchers, and agricultural managers 
     direct the activities of the world's largest and most 
     productive agricultural sectors. They produce enough food and 
     fiber to meet the needs of the United States and produce a 
     surplus for export.
       (14) About 17 percent of raw United States agricultural 
     products are exported yearly, including 83 million metric 
     tons of cereal grains, 1.6 billion pounds of poultry, and 1.4 
     million metric tons of fresh vegetables.
       (15) One-fourth of the world's beef and nearly one-fifth of 
     the world's grain, milk, and eggs are produced in the United 
     States.
       (16) With 96 percent of the world's population living 
     outside our borders, the world's most productive farmers need 
     access to international markets to compete.
       (17) Every State benefits from the income generated from 
     agricultural exports. 19 States have exports of $1 billion or 
     more.
       (18) America's total on United States exports is $49.1 
     billion and the number of imports is $37.5 billion.
       (19) By itself, farming-production agriculture-contributed 
     $60.4 billion toward the national GDP (Gross Domestic 
     Product).
       (20) Farmers and ranchers provide food and habitat for 75 
     percent of the Nation's wildlife.
       (21) More than 23 million jobs-17 percent of the civilian 
     workforce-are involved in some phase of growing and getting 
     our food and clothing to us. America now has fewer farmers, 
     but they are producing now more than ever before.
       (22) Twenty-two million American workers process, sell, and 
     trade the Nation's food and fiber. Farmers and ranchers work 
     with the Department of Agriculture to produce healthy crops 
     while caring for soil and water.
       (23) By February 8, the 39th day of 2002, the average 
     American has earned enough to pay

[[Page 1126]]

     for their family's food for the entire year. In 1970 it took 
     12 more days than it does now to earn a full food pantry for 
     the year. Even in 1980 it took 10 more days--49 total days--
     of earning to put a year's supply of food on the table.
       (24) Farmers are facing the 5th straight year of the lowest 
     real net farm income since the Great Depression. Last 
     October, prices farmers received made their sharpest drop 
     since United States Department of Agriculture began keeping 
     records 91 years ago. During this same period the cost of 
     production has hit record highs.
       (25) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (26) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (27) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (28) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (29) Citizens who have an interest in issues about or 
     related to their lives have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (30) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy.
       (31) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO WORKERS, 
                   FARMERS, FAMILIES, AND INDIVIDUALS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to any individual.

                               H.R. 2356

                             Offered By: __

       Amendment No. 21. Add at the end title II the following new 
     subtitle:

Subtitle C--Exemption of Communications Pertaining to Civil Rights and 
                      Issues Affecting Minorities

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 70 million people in the United States belong 
     to a minority race.
       (2) More than 34 million people in the United States are 
     African American, 35 million are Hispanic or Latino, 10 
     million are Asian, and 2 million are American Indian or 
     Alaska Native.
       (3) Minorities account for around 24 percent of the U.S. 
     workforce.
       (4) Minorities, who owned fewer than 7 percent of all U.S. 
     firms in 1982, now own more than 15 percent. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (5) Self-employment as a share of each group's 
     nonagricultural labor force (averaged over the 1991-1999 
     decade) was White, 9.7 percent; African American, 3.8 
     percent; American Indian, Eskimo, or Aleut, 6.4 percent; and 
     Asian or Pacific Islander, 10.1 percent.
       (6) Of U.S. businesses, 5.8 percent were owned by Hispanic 
     Americans, 4.4 percent by Asian Americans, 4.0 percent by 
     African Americans, and 0.9 percent by American Indians.
       (7) Of the 4,514,699 jobs in minority-owned businesses in 
     1997, 48.8 percent were in Asian-owned firms, 30.8 percent in 
     Hispanic-owned firms, 15.9 percent in African American-owned 
     firms, and 6.6 percent in American Native-owned firms.
       (8) Minority-owned firms had about $96 billion in payroll 
     in 1997. The average payroll per employee was roughly $21,000 
     in the major minority groups and ranged from just under 
     $15,000 to just over $27,000 in various subgroups of the 
     minority population.
       (9) African Americans were the only race or ethnic group to 
     show an increase in voter participation in congressional 
     elections, increasing their presence at the polls from 37 
     percent in 1994 to 40 percent in 1998. Nationwide, overall 
     turnout by the voting-age population was down from 45 percent 
     in 1994 to 42 percent in 1998.
       (10) In 2000, there were 8.7 million African American 
     families. The United States had 96,000 African American 
     engineers, 41,000 African American physicians and 47,000 
     African American lawyers in 1999.
       (11) The number of Asians and Pacific Islanders voting in 
     congressional elections increased by 366,000 between 1994 and 
     1998.
       (12) Businesses owned by Asians and Pacific Islanders made 
     up 4 percent of the nation's 20.8 million nonfarm businesses.
       (13) Asians tend to have larger families--the average 
     family size is 3.6 persons, as opposed to an average 
     Caucasian family of 3.1 persons.
       (14) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (15) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (16) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (17) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (18) Citizens who have an interest in issues about or 
     related to civil rights have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (19) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle

[[Page 1127]]

     and suppress individual and group advocacy pertaining to 
     politics and government--the political expression at the core 
     of the electoral process and of First Amendment freedoms--the 
     very engine of democracy. Such restrictions also hinder 
     citizens' ability to communicate their support or opposition 
     on issues concerning civil rights to their elected officials 
     and the general public.
       (20) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO CIVIL 
                   RIGHTS AND ISSUES AFFECTING MINORITIES.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to civil rights and issues affecting minorities.

                               H.R. 2356

                             Offered By: __

       Amendment No. 22: Add at the end the following title:

          TITLE VI--NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS

     SEC. 601. FINDINGS.

       Congress finds the following:
       (1) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''
       (2) The First Amendment affords the broadest protection to 
     such political expression in order ``to assure [the] 
     unfettered interchange of ideas for the bringing about of 
     political and social changes desired by the people. Roth v. 
     United States, 354 U.S. 476, 484 (1957).
       (3) According to Mills v. Alabama, 384 U.S. 214, 218 
     (1966), there is practically universal agreement that a major 
     purpose of that Amendment was to protect the free discussion 
     of governmental affairs, ``...of course including[ing] 
     discussions of candidates...''.
       (4) According to New York Times Co. v. Sullivan, 376 U.S. 
     254, 270 (1964), the First Amendment reflects our ``profound 
     national commitment to the principle that debate on public 
     issues should be uninhibited, robust, and wide-open''. In a 
     republic where the people are sovereign, the ability of the 
     citizenry to make informed choices among candidates for 
     office is essential, for the identities of those who are 
     elected will inevitably shape the course that we follow as a 
     nation.
       (5) The First Amendment protects political association as 
     well as political expression. The constitutional right of 
     association explicated in NAACP v. Alabama, 357 U.S. 449, 460 
     (1958), stemmed from the Court's recognition that 
     ``[e]ffective advocacy of both public and private points of 
     view, particularly controversial ones, is undeniably enhanced 
     by group association.'' Subsequent decisions have made clear 
     that the First and Fourteenth Amendments guarantee ``freedom 
     to associate with others for the common advancement of 
     political beliefs and ideas,'' a freedom that encompasses 
     ```[t]he right to associate with the political party of one's 
     choice.''' Kusper v. Pontikes, 414 U.S. 51, 56, 57, quoted in 
     Cousins v. Wigoda, 419 U.S. 477, 487 (1975).
       (6) In Buckley v. Valeo, the Supreme Court stated, ``A 
     restriction on the amount of money a person or group can 
     spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (7) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (8) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (9) The courts of the United States have consistently 
     reaffirmed and applied the teachings of Buckley, striking 
     down such government overreaching. The courts of the United 
     States have consistently upheld the rights of the citizens of 
     the United States, candidates for public office, political 
     parties, corporations, labor unions, trade associations, non-
     profit entities, among others. Such decisions provide a very 
     clear line as to what the government can and cannot do with 
     respect to the regulation of campaigns. See Federal Election 
     Comm'n v. Massachusetts Citizens for Life, Inc., 479 U.S. 238 
     (1986); Federal Election Comm'n v. National Conservative 
     Political Action Comm., 470 U.S. 480 (1985); California 
     Medical Assn. v. Federal Election Comm'n, 453 U.S. 182 
     (1981).
       (10) The FEC has lost time and time again in court 
     attempting to move away from the express advocacy bright line 
     test of Buckley v. Valeo. In fact, in some cases, the FEC has 
     had to pay fees and costs because the theory is frivolous. 
     See FEC v. Christian Action Network, 110 F.3d 1049 (4th Cir. 
     1997), aff'g 894 F. Supp. 946 (W.D.Va. 1995); Maine Right to 
     Life Comm. v. FEC, 914 F. Supp. 8 (D.Me. 1996), aff'd 98 F.3d 
     1 (1st Cir. 1996), cert. denied, 118 S. Ct. 52 (1997); 
     Clifton v. FEC, 114 F.3d 1309 (1st Cir. 1997); Faucher v. 
     FEC, 928 F.2d 468, 472 (1st Cir.), cert. denied, 502 U.S. 820 
     (1991); FEC v. Colorado Republican Federal Campaign Comm., 
     839 F. Supp. 1448 (D. Co.), rev'd on other grounds, 59 F.3d 
     1015 (10th Cir.), vacated on other grounds, 116 S. Ct. 2309 
     (1996); FEC v. Central Long Island Tax Reform Immediately 
     Comm., 616 F.2d 45, 53 (2d Cir. 1980); Minnesota Citizens 
     Concerned for Life, Inc. v. FEC, 936 F. Supp. 633 (D. Minn. 
     1996), aff'd 113 F.3d 129 (8th Cir. 1997), reh'g. en banc 
     denied, 1997 U.S. App. LEXIS 17528; West Virginians for Life, 
     Inc. v. Smith, 960 F. Supp. 1036, 1039 (S.D.W.Va. 1996); FEC 
     v. Survival Education Fund, 1994 U.S. Dist. Lexis 210 
     (S.D.N.Y. 1994), aff'd in part and rev'd in part, 65 F.3d 285 
     (2nd Cir. 1995); FEC v. National Organization for Women, 713 
     F. Supp. 428, 433-34 (D.D.C. 1989); FEC v. American 
     Federation of State, County and Municipal Employees, 471 F. 
     Supp. 315, 316-17 (D.D.C. 1979). Even the FEC abandoned the 
     ``electioneering communication'' standard soon after the 1996 
     election due to its vagueness.
       (11) The courts have also repeatedly upheld the rights of 
     political party committees. As Justice Kennedy noted: ``The 
     central holding in Buckley v. Valeo is that spending money on 
     one's own speech must be permitted, and that this is what 
     political parties do when they make expenditures FECA 
     restricts.'' Colo. Republican Fed. Campaign Comm. v. Federal 
     Election Comm'n, 518 U.S. 604, 627 (1996) (J. Kennedy, 
     concurring). Justice Thomas added: ``As applied in the 
     specific context of campaign funding by political parties, 
     the anticorruption rationale loses its force. See Nahra, 
     Political Parties and the Campaign Finance Laws: Dilemmas, 
     Concerns and Opportunities, 56 Ford L. Rev. 53, 105-106 
     (1987). What could it mean for a party to `corrupt' its 
     candidates or to exercise `coercive' influence over him? The 
     very aim of a political party is to influence its candidate's 
     stance on issues and, if the candidate takes office or is 
     reelected, his votes. When political parties achieve that 
     aim, that achievement does not, in my view, constitute `a 
     subversion of the political process.' Federal Election Comm'n 
     v. NCPAC, 470 U.S. at 497. For instance, if the Democratic 
     Party spends large sums of money in support of a candidate 
     who wins, takes office, and then implements the Party's 
     platform, that is not corruption; that is successful advocacy 
     of ideas in the political marketplace and representative 
     government in a party system. To borrow a phrase from Federal 
     Election Comm'n v. NCPAC, `the fact that candidates and 
     elected officials may alter or reaffirm their own positions 
     on issues in response to political messages paid for by 
     [political groups] can hardly be called corruption, for one 
     of the essential features of democracy is the presentation of 
     the electorate of varying points of view.' Id. at 498. Cf. 
     Federal Election Comm'n v. MCFL, 479 U.S. at 263 (suggesting 
     that `[v]oluntary political associations do not . . . present 
     the specter of corruption').''. Colo. Republican Fed. 
     Campaign Comm. v. Federal Election Comm'n, 518 U.S. 604, 647 
     (1996) (J. Thomas, concurring). Justice Thomas continued: 
     ``The structure of political parties is such that the 
     theoretical danger of those groups actually engaging in quid 
     pro quos with candidates is significantly less than the 
     threat of individuals or other groups doing so. See Nahra, 
     Political Parties and the Campaign Finance Laws: Dilemmas, 
     Concerns and Opportunities, 56 Ford L. Rev. 53, 97-98 (1987) 
     (citing F. Sorauf, Party Politics in America 15-18 (5th ed. 
     1984)). American political parties, generally speaking, have 
     numerous members with a wide variety of interests, features 
     necessary for success in majoritarian elections. 
     Consequently, the influence of any one person or the 
     importance of any single issue within a political party is 
     significantly diffused. For this reason, as the Party's amici 
     argue, see Brief for

[[Page 1128]]

     Committee for Party Renewal et al. as Amicus Curiae 16, 
     campaign funds donated by parties are considered to be some 
     of `the cleanest money in politics.' J. Bibby, Campaign 
     Finance Reform, 6 Commonsense 1, 10 (Dec. 1983). And, as long 
     as the Court continues to permit Congress to subject 
     individuals to limits on the amount they can give to parties, 
     and those limits are uniform as to all donors, see 2 U.S.C. 
     section 441a(a)(1), there is little risk that an individual 
     donor could use a party as a conduit for bribing candidates. 
     Id.''.
       (12) As recently as 2000, the Supreme Court reminded us 
     once again of the vital role that political parties play on 
     our democratic life, by serving as the primary vehicles for 
     the political views and voices of millions and millions of 
     Americans. ``Representative democracy in any populous unit of 
     governance is unimaginable without the ability of citizens to 
     band together in promoting the electoral candidates who 
     espouse their political views. The formation of national 
     political parties was almost concurrent with the formation of 
     the Republic itself.'' California Democratic Party v. Jones, 
     530 U.S. 567 (2000). Moreover, just last year, a Federal 
     court struck down a state law that included a so-called 
     ``soft money ban,'' which in reality was a ban on corporate 
     and union contributions to political parties--which as a 
     factual matter is correct. The Anchorage Daily News reported:
       (13) A Federal judge says corporations and unions have a 
     constitutional right to give unlimited amounts of ``soft 
     money'' to political parties, so long as none of the money is 
     used to get specific candidates elected. In a decision dated 
     June 11, U.S. District Judge James Singleton struck down a 
     section of Alaska's 1997 political contributions law that 
     barred corporations, unions and other businesses from 
     contributing any money to political candidates or parties. 
     The ban against corporate contributions to individual 
     candidates is fine, Singleton said. Public concern about the 
     corrupting influence or corporate contributions on a specific 
     candidate is legitimate and important enough to somewhat 
     limit freedom of speech and political association, the judge 
     concluded. But contributions to the noncandidate work of a 
     political party do not raise undue influence issues and 
     therefore may not be restricted, the judge concluded.
       (14) Sheila Toomey, Anchorage Daily News (June 14, 2001) 
     (reporting on Kenneth P. Jacobus, et al. vs. State of Alaska, 
     et al., No. A97-0272 (D. Alaska filed June 11, 2001).
       (15) Nor is speech any less protected by the First 
     Amendment simply because the one making the speech contacted 
     or communicated with others. For some time, the Federal 
     Election Commission held the view that such ``coordination'' 
     (an undefined term), even of communications that did not 
     contain express advocacy, somehow was problematic, and 
     subject to the limitations and prohibitions of the Act. This 
     view has been rejected by the courts. Federal Election 
     Commission v. Christian Coalition, 52 F. Supp. 2d 45 (D.D.C. 
     1999). In fact, lower Federal courts have held that even 
     political party committee limits on coordinated expenditures 
     are an unconstitutional restriction on speech. Federal 
     Election Commission v. Colo. Republican Fed. Campaign Comm., 
     213 F.3d 1221 (10th Cir. 2000). Unless a party committee's 
     expenditure is the functional equivalent of a contribution 
     (and thus not ``coordinated''), it cannot be limited. See 
     Federal Election Commission v. Colo. Republican Fed. Campaign 
     Comm., 150 L.Ed.2d 461, nt. 17, nt. 2 (J. Thomas, dissenting) 
     (2001). As a factual matter, many party committee 
     ``coordinated'' expenditures are not the functional 
     equivalent of contributions. See Amicus Curie Brief of the 
     National Republican Congressional Committee, Federal Election 
     Commission v. Colo. Republican Fed. Campaign Comm., 150 
     L.Ed.2d 461 (2001).
       (16) Commentators, legal experts and testimony in the 
     record echoes the need to be mindful of the First Amendment. 
     Whether it is the American Civil Liberties Union, see March 
     10, 2001 ACLU Letter to Senate (and all cases cited therein) 
     & June 14, 2001 ACLU testimony before the House 
     Administration Committee (and cases cited therein), or the 
     counsel to the National Right to Life Committee and the 
     Christian Coalition, see June 14, 2001 testimony of James 
     Bopp before the House Administration Committee (and cases 
     cited therein), experts across the political spectrum have 
     thoughtfully explained the need to ensure the First Amendment 
     rights of citizens of this country.
       (17) Citizens who have an interest in issues have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communication in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (18) This Act contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     to their elected officials and the general public.
       (19) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 602. NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS.

       Notwithstanding any provision of this Act, and in 
     recognition of the First Amendment to the United States 
     Constitution, nothing in this Act or in any amendment made by 
     this Act may be construed to abridge those freedoms found in 
     that Amendment, specifically the freedom of speech or of the 
     press, or the right of people to peaceably assemble, and to 
     petition the government for a redress of grievances, 
     consistent with the rulings of the courts of the United 
     States (as provided in section 601).

                               H.R. 2356

                             Offered By: __

       Amendment No. 23: Amend section 323(b) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(b) State, District, and Local Committees.--An amount 
     that is expended or disbursed for Federal election activity 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of such committee or 
     entity), or by an association or similar group of candidates 
     for State or local office or individuals holding State or 
     local office, shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.

       Amend section 323(e)(3) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 101(a) of the 
     bill, to read as follows:
       ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
     candidate or an individual holding Federal office may attend, 
     speak, or be a featured guest at a fundraising event for a 
     State, district, or local committee of a political party.

       Amend section 304(e)(2) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 103(a) of the 
     bill, to read as follows:
       ``(2) Other political committees to which section 323 
     applies.--In addition to any other reporting requirements 
     applicable under this Act, a political committee (not 
     described in paragraph (1)) to which section 323(b) applies 
     shall report all receipts and disbursements made for 
     activities described in section 301(20)(A).

                               H.R. 2356

                             Offered By: __

       Amendment No. 24: Add at the end of title III the following 
     new section:

     SEC. 323. BANNING POLITICAL CONTRIBUTIONS IN FEDERAL 
                   ELECTIONS BY ALL INDIVIDUALS NOT CITIZENS OR 
                   NATIONALS OF THE UNITED STATES.

       Section 319(b)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441e(b)(2)) is amended by striking the period 
     at the end and inserting the following: ``, or in the case of 
     an election for Federal office, an individual who is not a 
     citizen of the United States or a national of the United 
     States (as defined in section 101(a)(22) of the Immigration 
     and Nationality Act).''.

                               H.R. 2356

                          Offered By: Mr. Ney

       Amendment No 25: Amend section 301(20) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(20) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot);
       ``(iii) a public communication that refers to a clearly 
     identified candidate for Federal office (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) services provided during any month by an employee of 
     a State, district, or local committee of a political party 
     who spends more than 25 percent of that individual's 
     compensated time during that month on activities in 
     connection with a Federal election.
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State,

[[Page 1129]]

     district, or local committee of a political party for--
       ``(i) a public communication that refers solely to a 
     clearly identified candidate for State or local office, if 
     the communication is not a Federal election activity 
     described in subparagraph (A)(i) or (ii);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated to pay 
     for a Federal election activity described in subparagraph 
     (A);
       ``(iii) the costs of a State, district, or local political 
     convention; and
       ``(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.
       In section 402(b), strike ``At any time after such 
     effective date, the committee may spend such funds for 
     activities which are solely to defray the costs of the 
     construction or purchase of any office building or 
     facility.'' and insert the following: ``At no time after such 
     effective date may the committee spend any such funds for 
     activities to defray the costs of the construction or 
     purchase of any office building or facility.''.

                               H.R. 2356

                          Offered By: Mr. Ney

                           [Shays Substitute]

       Amendment No. 26. Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Campaign 
     Reform and Citizen Participation Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.
Sec. 202. Increase in limits on contributions to State parties.
Sec. 203. Treatment of contributions to national party under aggregate 
              annual limit on individual contributions.
Sec. 204. Exemption of costs of volunteer campaign materials produced 
              and distributed by parties from treatment as 
              contributions and expenditures.
Sec. 205. Indexing.
Sec. 206. Permitting national parties to establish accounts for making 
              expenditures in excess of limits on behalf of candidates 
              facing wealthy opponents.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior 
              to election.
Sec. 302. Disclosure of information on targeted mass communications.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

     SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL POLITICAL 
                   PARTIES.

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


               ``soft money of national political parties

       ``Sec. 323. (a) Prohibiting Use of Soft Money for Federal 
     Election Activity.--A national committee of a political party 
     (including a national congressional campaign committee of a 
     political party) may not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of funds 
     or any other thing of value for Federal election activity, or 
     spend any funds for Federal election activity, that are not 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(b) Limit on Amount of Nonfederal Funds Provided to Party 
     by Any Person for Any Purpose.--
       ``(1) Limit on amount.--No person shall make contributions, 
     donations, or transfers of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party in any calendar year in an aggregate 
     amount equal to or greater than $20,000.
       ``(2) Prohibiting provision of nonfederal funds by 
     individuals.--No individual may make any contribution, 
     donation, or transfer of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party.
       ``(c) Applicability.-- This subsection shall apply to any 
     political committee established and maintained by a national 
     political party, any officer or agent of such a committee 
     acting on behalf of the committee, and any entity that is 
     directly or indirectly established, maintained, or controlled 
     by such a national committee.
       ``(d) Definitions.--
       ``(1) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election, unless the activity constitutes generic 
     campaign activity;
       ``(ii) voter identification or get-out-the-vote activity 
     conducted in connection with an election in which a candidate 
     for Federal office appears on the ballot (regardless of 
     whether a candidate for State or local office also appears on 
     the ballot), unless the activity constitutes generic campaign 
     activity;
       ``(iii) any public communication that refers to or depicts 
     a clearly identified candidate for Federal office (regardless 
     of whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) any public communication made by means of any 
     broadcast, cable, or satellite communication.
       ``(B) Exception for certain administrative activities.--The 
     term `Federal election activity' does not include any 
     activity relating to establishment, administration, or 
     solicitation costs of a political committee established and 
     maintained by a national political party, so long as the 
     funds used to carry out the activity are derived from funds 
     or payments made to the committee which are segregated and 
     used exclusively to defray the costs of such activities.
       ``(2) Generic campaign activity.--The term `generic 
     campaign activity' means any activity that does not mention, 
     depict, or otherwise promote a clearly identified Federal 
     candidate.
       ``(3) Public communication.--The term `public 
     communication' means a communication by means of any 
     broadcast, cable, or satellite communication, newspaper, 
     magazine, outdoor advertising facility, or direct mail.
       ``(4) Direct mail.--The term `direct mail' means a mailing 
     by a commercial vendor or any mailing made from a commercial 
     list.''.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

     SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

       (a) Contributions by Committees to National Parties.--
     Section 315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is 
     amended by striking ``$15,000'' and inserting ``$30,000''.
       (b) Aggregate Annual Limit on Contributions by 
     Individuals.--Section 315(a)(3) of such Act (2 U.S.C. 
     441a(a)(3)) is amended by striking ``$25,000'' and inserting 
     ``$37,500''.

     SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE 
                   PARTIES.

       (a) Contributions by Individuals.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.
       (b) Contributions by Committees.--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) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.

     SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER 
                   AGGREGATE ANNUAL LIMIT ON INDIVIDUAL 
                   CONTRIBUTIONS.

       Section 315(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441(a)(3)) is amended--
       (1) by striking ``(3)'' and inserting ``(3)(A)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Subparagraph (A) shall not apply with respect to any 
     contribution made to any political committee established and 
     maintained by a national political party which is not the 
     authorized political committee of any candidate.''.

     SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS 
                   PRODUCED AND DISTRIBUTED BY PARTIES FROM 
                   TREATMENT AS CONTRIBUTIONS AND EXPENDITURES.

       (a) Treatment as Contributions.--Section 301(8)(B)(x) of 
     the Federal Election Campaign

[[Page 1130]]

     Act of 1971 (2 U.S.C. 431(8)(B)(x)) is amended by striking 
     ``a State or local committee of a political party of the 
     costs of'' and inserting ``a national, State, or local 
     committee of a political party of the costs of producing and 
     distributing''.
       (b) Treatment as Expenditures.--Section 301(9)(B)(viii) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(9)(B)(viii)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.

     SEC. 205. INDEXING.

       Section 315(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking the second and third sentences;
       (B) by inserting ``(A)'' before ``At the beginning''; and
       (C) by adding at the end the following:
       ``(B) Except as provided in subparagraph (C), in any 
     calendar year after 2002--
       ``(i) a limitation established by subsections (a), (b), 
     (d), or (h) shall be increased by the percent difference 
     determined under subparagraph (A);
       ``(ii) each amount so increased shall remain in effect for 
     the calendar year; and
       ``(iii) if any amount after adjustment under clause (i) is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.
       ``(C) In the case of limitations under subsections (a) and 
     (h), increases shall only be made in odd-numbered years and 
     such increases shall remain in effect for the 2-year period 
     beginning on the first day following the date of the last 
     general election in the year preceding the year in which the 
     amount is increased and ending on the date of the next 
     general election.''; and
       (2) in paragraph (2)(B), by striking ``means the calendar 
     year 1974'' and inserting ``means--
       ``(i) for purposes of subsections (b) and (d), calendar 
     year 1974; and
       ``(ii) for purposes of subsections (a) and (h), calendar 
     year 2001''.

     SEC. 206. PERMITTING NATIONAL PARTIES TO ESTABLISH ACCOUNTS 
                   FOR MAKING EXPENDITURES IN EXCESS OF LIMITS ON 
                   BEHALF OF CANDIDATES FACING WEALTHY OPPONENTS.

       (a) Establishment of Accounts.--Section 315(d) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is 
     amended by adding at the end the following new paragraph:
       ``(4)(A) Subject to subparagraph (B), the national 
     committee of a political party may make expenditures in 
     connection with the general election campaign of a candidate 
     for Federal office (other than a candidate for President) who 
     is affiliated with such party in an amount in excess of the 
     limit established under paragraph (3) if--
       ``(i) the candidate's opponent in the general election 
     campaign makes expenditures of personal funds in connection 
     with the campaign in an amount in excess of $100,000 (as 
     provided in the notifications submitted under section 
     304(a)(6)(B)); and
       ``(ii) the expenditures are made from a separate account of 
     the party used exclusively for making expenditures pursuant 
     to this paragraph.
       ``(B) The amount of expenditures made in accordance with 
     subparagraph (A) by the national committee of a political 
     party in connection with the general election campaign of a 
     candidate may not exceed the amount of expenditures of 
     personal funds made by the candidate's opponent in connection 
     with the campaign (as provided in the notifications submitted 
     under section 304(a)(6)(B)).''.
       (b) Waiver of Limits on Contributions to Accounts.--Section 
     315(a) of such Act (2 U.S.C. 441a(a)) is amended by adding at 
     the end the following new paragraph:
       ``(9) The limitations imposed by paragraphs (1)(B), (2)(B), 
     and (3) shall not apply with respect to contributions made to 
     the national committee of a political party which are 
     designated by the donor to be deposited solely into the 
     account established by the party under subsection (d)(4).''.
       (c) Notification of Expenditures of Personal Funds.--
     Section 304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is 
     amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B)(i) The principal campaign committee of a candidate 
     (other than a candidate for President) shall submit the 
     following notifications relating to expenditures of personal 
     funds by such candidate (including contributions by the 
     candidate or the candidate's spouse to such committee and 
     funds derived from loans made by the candidate or the 
     candidate's spouse to such committee):
       ``(I) A notification of the first such expenditure (or 
     contribution) by which the aggregate amount of personal funds 
     expended (or contributed) with respect to an election exceeds 
     $100,000.
       ``(II) After the notification is made under subclause (I), 
     a notification of each such subsequent expenditure (or 
     contribution) which, taken together with all such subsequent 
     expenditures (and contributions) in any amount not included 
     in the most recent report under this subparagraph, totals 
     $5,000 or more.
       ``(ii) Each of the notifications submitted under clause 
     (i)--
       ``(I) shall be submitted not later than 24 hours after the 
     expenditure or contribution which is the subject of the 
     notification is made;
       ``(II) shall include the name of the candidate, the office 
     sought by the candidate, and the date of the expenditure or 
     contribution and amount of the expenditure or contribution 
     involved; and
       ``(III) shall include the total amount of all such 
     expenditures and contributions made with respect to the same 
     election as of the date of expenditure or contribution which 
     is the subject of the notification.''.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

     SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS 
                   BROADCAST PRIOR TO ELECTION.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following new 
     subsection:
       ``(e) Disclosure of Information on Certain Communications 
     Broadcast Prior to Elections.--
       ``(1) In general.--Any person who makes a disbursement for 
     a communication described in paragraph (3) shall, not later 
     than 24 hours after making the disbursement, file with the 
     Commission a statement containing the information required 
     under paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of the disbursement.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Communications described.--
       ``(A) In general.--A communication described in this 
     paragraph is any communication--
       ``(i) which is disseminated to the public by means of any 
     broadcast, cable, or satellite communication during the 120-
     day period ending on the date of a Federal election; and
       ``(ii) which mentions a clearly identified candidate for 
     such election (by name, image, or likeness).
       ``(B) Exception.--A communication is not described in this 
     paragraph if--
       ``(i) the communication appears in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, unless such facilities are owned 
     or controlled by any political party, political committee, or 
     candidate; or
       ``(ii) the communication constitutes an expenditure under 
     this Act.
       ``(4) Coordination with other requirements.--Any 
     requirement to file a statement under this subsection shall 
     be in addition to any other reporting requirement under this 
     Act.
       ``(5) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

     SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS 
                   COMMUNICATIONS.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434), as amended by section 301, is further amended by 
     adding at the end the following new subsection:
       ``(f) Disclosure of Information on Targeted Mass 
     Communications.--
       ``(1) In general.--Any person who makes a disbursement for 
     targeted mass communications in an aggregate amount in excess 
     of $50,000 during any calendar year shall, within 24 hours of 
     each disclosure date, file with the Commission a statement 
     containing the information described in paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of each such disbursement of more than 
     $200 made by the person during the period covered by the 
     statement and the identification of the person to whom the 
     disbursement was made.

[[Page 1131]]

       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Targeted mass communication defined.--
       ``(A) In general.--In this subsection, the term `targeted 
     mass communication' means any communication--
       ``(i) which is disseminated during the 120-day period 
     ending on the date of a Federal election;
       ``(ii) which refers to or depicts a clearly identified 
     candidate for such election (by name, image, or likeness); 
     and
       ``(iii) which is targeted to the relevant electorate.
       ``(B) Targeting to relevant electorate.--
       ``(i) Broadcast communications.--For purposes of this 
     paragraph, a communication disseminated to the public by 
     means of any broadcast, cable, or satellite communication 
     which refers to or depicts a clearly identified candidate for 
     Federal office is `targeted to the relevant electorate' if 
     the communication is disseminated by a broadcaster whose 
     audience includes--

       ``(I) a substantial number of residents of the district the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Representative in, or Delegate or Resident 
     Commissioner to, the Congress; or
       ``(II) a substantial number of residents of the State the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Senator.

       ``(ii) Other communications.--For purposes of this 
     paragraph, a communication which is not described in clause 
     (i) which refers to or depicts a clearly identified candidate 
     for Federal office is `targeted to the relevant electorate' 
     if--

       ``(I) more than 10 percent of the total number of intended 
     recipients of the communication are members of the electorate 
     involved with respect to such Federal office; or
       ``(II) more than 10 percent of the total number of members 
     of the electorate involved with respect to such Federal 
     office receive the communication.

       ``(C) Exceptions.--The term `targeted mass communication' 
     does not include--
       ``(i) a communication appearing in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, newspaper, magazine, or other 
     periodical publication, unless such facilities are owned or 
     controlled by any political party, political committee, or 
     candidate;
       ``(ii) a communication made by any membership organization 
     (including a labor organization) or corporation solely to its 
     members, stockholders, or executive or administrative 
     personnel, if such membership organization or corporation is 
     not organized primarily for the purpose of influencing the 
     nomination for election, or election, of any individual to 
     Federal office; or
       ``(iii) a communication which constitutes an expenditure 
     under this Act.
       ``(4) Disclosure date.--For purposes of this subsection, 
     the term `disclosure date' means--
       ``(A) the first date during any calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000; and
       ``(B) any other date during such calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000 since the 
     most recent disclosure date for such calendar year.
       ``(5) Coordination with other requirements.--Any 
     requirement to report under this subsection shall be in 
     addition to any other reporting requirement under this Act.
       ``(6) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on the 
     date of the enactment of this Act.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 27: Add at the end title II the following new 
     subtitle:

   Subtitle C--Exemption of Communications Pertaining to the Second 
                     Amendment of the Constitution

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) The Second Amendment to the United States Constitution 
     protects the right of individual persons to keep and bear 
     arms.
       (2) There are more than 60,000,000 gun owners in the United 
     States.
       (3) The Second Amendment to the Constitution of the United 
     States protects the right of Americans to carry firearms in 
     defense of themselves and others.
       (4) The United States Court of Appeals in U.S. v. Emerson 
     reaffirmed the fact that the right to keep and bear arms is 
     an individual right protected by the Constitution.
       (5) Americans who are concerned about threats to their 
     ability to keep and bear arms have the right to petition 
     their government.
       (6) The Supreme Court, in U.S. v. Cruikshank (92 U.S. 542, 
     1876) recognized that the right to arms preexisted the 
     Constitution. The Court stated that the right to arms ``is 
     not a right granted by the Constitution. Neither is it in any 
     manner dependent upon that instrument for its existence.''.
       (7) In Beard v. United States (158 U.S. 550, 1895) the 
     Court approved the common-law rule that a person ``may repel 
     force by force'' in self-defense, and concluded that when 
     attacked a person ``was entitled to stand his ground and meet 
     any attack made upon him with a deadly weapon, in such a way 
     and with such force'' as needed to prevent ``great bodily 
     injury or death''. The laws of all 50 states, and the 
     constitutions of most States, recognize the right to use 
     armed force in self-defense.
       (8) In order to protect Americans' constitutional rights 
     under the Second Amendment, the First Amendment provides the 
     ability for citizens to address the Government.
       (9) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (10) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (11) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (12) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and 'to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (13) Citizens who have an interest in issues about or 
     related to the Second Amendment of the Constitution have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communications in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (14) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning the right to keep and bear arms to their elected 
     officials and the general public.
       (15) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO THE 
                   SECOND AMENDMENT OF THE CONSTITUTION.

       None of the restrictions or requirements contained in this 
     title shall apply to any

[[Page 1132]]

     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any person who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to the Second Amendment.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 28: Add at the end of title II the following 
     new subtitle:

    Subtitle C--Exemption of Communications Pertaining to Veterans, 
                     Military Personnel, or Seniors

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 42,000,000 men and women have served in the 
     United States Armed Forces from the Revolution onward and 
     more than 25 million are still living. Living veterans and 
     their families, plus the living dependents of deceased 
     veterans, constitute a significant part of the present United 
     States population.
       (2) American veterans are black and they are white; they 
     are of every race and ethnic heritage. They are men, and they 
     are women. They are Christians, they are Muslims, they are 
     Jews. They are fathers, mothers, sisters, brothers, sons and 
     daughters. They are neighbors, down the street or right next 
     door. They are teachers in our schools, they are factory 
     workers. They are Americans living today who served in the 
     armed services, and they are the more than 1,000,000 who have 
     died in America's wars.
       (3) America's veterans are men and women who have fought to 
     protect the United States against foreign aggressors as 
     Soldiers, Sailors, Airmen, Coast Guardsmen and Marines. The 
     members of our elite organization are those who have 
     discharged their very special obligation of citizenship as 
     servicemen and women, and who today continue to expend great 
     time, effort and energy in the service of their fellow 
     veterans and their communities.
       (4) There is a bond joining every veteran from every branch 
     of the service. Whether drafted or enlisted, commissioned or 
     noncommissioned, each took an oath, lived by a code, and 
     stood ready to fight and die for their country.
       (5) American men and women in uniform risk their lives on a 
     daily basis to defend our freedom and democracy. Americans 
     have always believed that there are values worth fighting 
     for--values and liberties upon which America was founded and 
     which we have carried forward for more than 225 years, that 
     men and women of this great nation gave their lives to 
     preserve.
       (6) It is the sacrifice borne by generations of American 
     veterans that has made us strong and has rendered us the 
     beacon of freedom guiding the course of nations throughout 
     the world. American veterans have fought for freedom for 
     Americans, as well as citizens throughout the world. They 
     have helped to defend and preserve the values of freedom of 
     speech, democracy, voting rights, human rights, equal access 
     and the rights of the individual--those values felt and 
     nurtured on every continent in our world.
       (7) The freedoms and opportunities we enjoy today were 
     bought and paid for with their devotion to duty and their 
     sacrifices. We can never say it too many times: We are the 
     benefactors of their sacrifice, and we are grateful.
       (8) Of the 25,000,000 veterans currently alive, nearly 
     three of every four served during a war or an official period 
     of hostility. About a quarter of the Nation's population--
     approximately 70,000,000 people--are potentially eligible for 
     Veterans' Administration benefits and services because they 
     are veterans, family members or survivors of veterans.
       (9) The present veteran population is estimated at 
     25,600,000, as of July 1, 1997. Nearly 80 of every 100 living 
     veterans served during defined periods of armed hostilities. 
     Altogether, almost one-third of the nation's population--
     approximately 70,000,000 persons who are veterans, dependents 
     and survivors of deceased veterans--are potentially eligible 
     for Veterans' Administration benefits and services.
       (10) Care for veterans and dependents spans centuries. The 
     last dependent of a Revolutionary War veteran died in 1911; 
     the War of 1812's last dependent died in 1946; the Mexican 
     War's, in 1962.
       (11) The Veterans' Administration health care system has 
     grown from 54 hospitals in 1930, to include 171 medical 
     centers; more than 350 outpatient, community, and outreach 
     clinics; 126 nursing home care units; and 35 domiciliaries. 
     Veterans' Administration health care facilities provide a 
     broad spectrum of medical, surgical, and rehabilitative care.
       (12) World War II resulted in not only a vast increase in 
     the veteran population, but also in large number of new 
     benefits enacted by the Congress for veterans of the war. The 
     World War II GI Bill, signed into law on June 22, 1944, is 
     said to have had more impact on the American way of life than 
     any law since the Homestead Act more than a century ago.
       (13) About 2,700,000 veterans receive disability 
     compensation or pensions from VA. Also receiving Veterans' 
     Administration benefits are 592,713 widows, children and 
     parents of deceased veterans. Among them are 133,881 
     survivors of Vietnam era veterans and 295,679 survivors of 
     World War II veterans. In fiscal year 2001, Veterans' 
     Administration planned to spend $22,000,000,000 yearly in 
     disability compensation, death compensation and pension to 
     3,200,000 people.
       (14) Veterans' Administration manages the largest medical 
     education and health professions training program in the 
     United States. Veterans' Administration facilities are 
     affiliated with 107 medical schools, 55 dental schools and 
     more than 1,200 other schools across the country. Each year, 
     about 85,000 health professionals are trained in Veterans' 
     Administration medical centers. More than half of the 
     physicians practicing in the United States have had part of 
     their professional education in the Veterans' Administration 
     health care system.
       (15) 75 percent of Veterans' Administration researchers are 
     practicing physicians. Because of their dual roles, Veterans' 
     Administration research often immediately benefits patients. 
     Functional electrical stimulation, a technology using 
     controlled electrical current to activate paralyzed muscles, 
     is being developed at Veterans' Administration clinical 
     facilities and laboratories throughout the country. Through 
     this technology, paraplegic patients have been able to stand 
     and, in some instances, walk short distances and climb 
     stairs. Patients with quadriplegia are able to use their 
     hands to grasp objects.
       (16) There are more than 35,000,000 persons in the United 
     States aged 65 and over.
       (17) Seniors are a diverse population, each member having 
     his or her own political and economic issues.
       (18) Seniors and their families have many important issues 
     for which they seek congressional action. Some of these 
     issues include, but are not limited to, health care, Social 
     Security, and taxes.
       (19) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (20) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (21) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (22) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (23) Citizens who have an interest in issues about or 
     related to veterans, military personnel, seniors, and their 
     families have the Constitutional right to criticize or praise 
     their elected officials individually or collectively as a 
     group. Communications in the form of criticism or praise of 
     elected officials is preciously protected as free speech 
     under the First Amendment of the Constitution of the United 
     States.
       (24) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning veterans, military personnel, seniors, and their 
     families to their elected officials and the general public.

[[Page 1133]]

       (25) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO 
                   VETERANS, MILITARY PERSONNEL, OR SENIORS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to veterans, military personnel, or senior 
     citizens, or to the immediate family members of veterans, 
     military personnel, or senior citizens.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 29. Amend section 402 to read as follows:

     SEC. 402. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act shall take 
     effect February 14, 2002.
       (b) Transition Rule for Spending of Funds by National 
     Parties.--If a national committee of a political party 
     described in section 323(a)(1) of the Federal Election 
     Campaign Act of 1971 (as added by section 101(a)), including 
     any person who is subject to such section, has received funds 
     described in such section prior to the effective date 
     described in subsection (a) which remain unexpended as of 
     such date, the committee shall return the funds on a pro rata 
     basis to the persons who provided the funds to the committee.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 30. Add at the end of title II the following 
     new subtitle:

Subtitle C--Exemption of Communications Pertaining to Workers, Farmers, 
                       Families, and Individuals

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) There are approximately 138 million people employed in 
     the United States.
       (2) Thousands of organizations and associations represent 
     these employed persons and their employers in numerous forms 
     and forums, not least of which is by participating in our 
     electoral and political system in a number of ways, including 
     informing citizens of key votes that affect their common 
     interests, criticizing and praising elected officials for 
     their position on issues, contributing to candidates and 
     political parties, registering voters, and conducting get-
     out-the-vote activities.
       (3) The rights of American workers to bargain collectively 
     are protected by their First Amendment to the Constitution 
     and by provisions in the National Labor Relations Act. 
     Federal law guarantees the rights of workers to choose 
     whether to bargain collectively through a union.
       (4) Fourteen percent of the American workforce has chosen 
     to affiliate with a labor union. Federal law allows workers 
     and unions the opportunity to combine strength and to work 
     together to seek to improve the lives of America's working 
     families, bring fairness and dignity to the workplace and 
     secure social and economic equity in our nation.
       (5) Nearly three quarters of all United States business 
     firms have no payroll. Most are self-employed persons 
     operating unincorporated businesses, and may or may not be 
     the owner's principal source of income.
       (6) Minorities owned fewer than 7 percent of all United 
     States firms, excluding C corporations, in 1982, but this 
     share soared to about 15 percent by 1997. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (7) In 1999, women made up 46 percent of the labor force. 
     The labor force participation rate of American women was the 
     highest in the world.
       (8) Labor/Worker unions represent 16 million working women 
     and men of every race and ethnicity and from every walk of 
     life.
       (9) In recent years, union members and their families have 
     mobilized in growing numbers. In the 2000 election, 26 
     percent of the nation's voters came from union households.
       (10) According to the 2000 census, total United States 
     families were totaled at over 105 million.
       (11) In 2000, there were 8.7 million African American 
     families.
       (12) Asians have larger families than other groups. For 
     example, the average Asian family size is 3.6 persons, as 
     opposed to an average Caucasian family of 3.1 persons.
       (13) American farmers, ranchers, and agricultural managers 
     direct the activities of the world's largest and most 
     productive agricultural sectors. They produce enough food and 
     fiber to meet the needs of the United States and produce a 
     surplus for export.
       (14) About 17 percent of raw United States agricultural 
     products are exported yearly, including 83 million metric 
     tons of cereal grains, 1.6 billion pounds of poultry, and 1.4 
     million metric tons of fresh vegetables.
       (15) One-fourth of the world's beef and nearly one-fifth of 
     the world's grain, milk, and eggs are produced in the United 
     States.
       (16) With 96 percent of the world's population living 
     outside our borders, the world's most productive farmers need 
     access to international markets to compete.
       (17) Every State benefits from the income generated from 
     agricultural exports. 19 States have exports of $1 billion or 
     more.
       (18) America's total on United States exports is $49.1 
     billion and the number of imports is $37.5 billion.
       (19) By itself, farming-production agriculture-contributed 
     $60.4 billion toward the national GDP (Gross Domestic 
     Product).
       (20) Farmers and ranchers provide food and habitat for 75 
     percent of the Nation's wildlife.
       (21) More than 23 million jobs-17 percent of the civilian 
     workforce-are involved in some phase of growing and getting 
     our food and clothing to us. America now has fewer farmers, 
     but they are producing now more than ever before.
       (22) Twenty-two million American workers process, sell, and 
     trade the Nation's food and fiber. Farmers and ranchers work 
     with the Department of Agriculture to produce healthy crops 
     while caring for soil and water.
       (23) By February 8, the 39th day of 2002, the average 
     American has earned enough to pay for their family's food for 
     the entire year. In 1970 it took 12 more days than it does 
     now to earn a full food pantry for the year. Even in 1980 it 
     took 10 more days--49 total days--of earning to put a year's 
     supply of food on the table.
       (24) Farmers are facing the 5th straight year of the lowest 
     real net farm income since the Great Depression. Last 
     October, prices farmers received made their sharpest drop 
     since United States Department of Agriculture began keeping 
     records 91 years ago. During this same period the cost of 
     production has hit record highs.
       (25) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (26) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (27) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (28) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (29) Citizens who have an interest in issues about or 
     related to their lives have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (30) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the

[[Page 1134]]

     political expression at the core of the electoral process and 
     of First Amendment freedoms--the very engine of democracy.
       (31) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO WORKERS, 
                   FARMERS, FAMILIES, AND INDIVIDUALS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to any individual.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 31. Add at the end title II the following new 
     subtitle:

Subtitle C--Exemption of Communications Pertaining to Civil Rights and 
                      issues affecting minorities.

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 70 million people in the United States belong 
     to a minority race.
       (2) More than 34 million people in the United States are 
     African American, 35 million are Hispanic or Latino, 10 
     million are Asian, and 2 million are American Indian or 
     Alaska Native.
       (3) Minorities account for around 24 percent of the U.S. 
     workforce.
       (4) Minorities, who owned fewer than 7 percent of all U.S. 
     firms in 1982, now own more than 15 percent. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (5) Self-employment as a share of each group's 
     nonagricultural labor force (averaged over the 1991-1999 
     decade) was White, 9.7 percent; African American, 3.8 
     percent; American Indian, Eskimo, or Aleut, 6.4 percent; and 
     Asian or Pacific Islander, 10.1 percent.
       (6) Of U.S. businesses, 5.8 percent were owned by Hispanic 
     Americans, 4.4 percent by Asian Americans, 4.0 percent by 
     African Americans, and 0.9 percent by American Indians.
       (7) Of the 4,514,699 jobs in minority-owned businesses in 
     1997, 48.8 percent were in Asian-owned firms, 30.8 percent in 
     Hispanic-owned firms, 15.9 percent in African American-owned 
     firms, and 6.6 percent in American Native-owned firms.
       (8) Minority-owned firms had about $96 billion in payroll 
     in 1997. The average payroll per employee was roughly $21,000 
     in the major minority groups and ranged from just under 
     $15,000 to just over $27,000 in various subgroups of the 
     minority population.
       (9) African Americans were the only race or ethnic group to 
     show an increase in voter participation in congressional 
     elections, increasing their presence at the polls from 37 
     percent in 1994 to 40 percent in 1998. Nationwide, overall 
     turnout by the voting-age population was down from 45 percent 
     in 1994 to 42 percent in 1998.
       (10) In 2000, there were 8.7 million African American 
     families. The United States had 96,000 African American 
     engineers, 41,000 African American physicians and 47,000 
     African American lawyers in 1999.
       (11) The number of Asians and Pacific Islanders voting in 
     congressional elections increased by 366,000 between 1994 and 
     1998.
       (12) Businesses owned by Asians and Pacific Islanders made 
     up 4 percent of the nation's 20.8 million nonfarm businesses.
       (13) Asians tend to have larger families - the average 
     family size is 3.6 persons, as opposed to an average 
     Caucasian family of 3.1 persons.
       (14) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (15) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (16) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (17) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (18) Citizens who have an interest in issues about or 
     related to civil rights have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (19) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning civil rights to their elected officials and the 
     general public.
       (20) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO CIVIL 
                   RIGHTS AND ISSUES AFFECTING MINORITIES.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to civil rights and issues affecting minorities.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 32: Add at the end the following title:

          TITLE VI--NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS

     SEC. 601. FINDINGS.

       Congress finds the following:
       (1) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''
       (2) The First Amendment affords the broadest protection to 
     such political expression in order ``to assure [the] 
     unfettered interchange of ideas for the bringing about of 
     political and social changes desired by the people. Roth v. 
     United States, 354 U.S. 476, 484 (1957).
       (3) According to Mills v. Alabama, 384 U.S. 214, 218 
     (1966), there is practically universal agreement that a major 
     purpose of that Amendment was to protect the free discussion 
     of governmental affairs, ``...of course including[ing] 
     discussions of candidates...''.
       (4) According to New York Times Co. v. Sullivan, 376 U.S. 
     254, 270 (1964), the First Amendment reflects our ``profound 
     national commitment to the principle that debate on public 
     issues should be uninhibited, robust, and wide-open''. In a 
     republic where the people are sovereign, the ability of the 
     citizenry to make informed choices among candidates for 
     office is essential, for the identities of those who are 
     elected will inevitably shape the course that we follow as a 
     nation.
       (5) The First Amendment protects political association as 
     well as political expression. The constitutional right of 
     association explicated in NAACP v. Alabama, 357 U.S. 449, 460 
     (1958), stemmed from the Court's recognition that 
     ``[e]ffective advocacy of both public and private points of 
     view, particularly controversial ones, is undeniably enhanced 
     by group association.'' Subsequent decisions have made clear 
     that the First and Fourteenth Amendments guarantee ``freedom 
     to

[[Page 1135]]

     associate with others for the common advancement of political 
     beliefs and ideas,'' a freedom that encompasses ```[t]he 
     right to associate with the political party of one's 
     choice.''' Kusper v. Pontikes, 414 U.S. 51, 56, 57, quoted in 
     Cousins v. Wigoda, 419 U.S. 477, 487 (1975).
       (6) In Buckley v. Valeo, the Supreme Court stated, ``A 
     restriction on the amount of money a person or group can 
     spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (7) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (8) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (9) The courts of the United States have consistently 
     reaffirmed and applied the teachings of Buckley, striking 
     down such government overreaching. The courts of the United 
     States have consistently upheld the rights of the citizens of 
     the United States, candidates for public office, political 
     parties, corporations, labor unions, trade associations, non-
     profit entities, among others. Such decisions provide a very 
     clear line as to what the government can and cannot do with 
     respect to the regulation of campaigns. See Federal Election 
     Comm'n v. Massachusetts Citizens for Life, Inc., 479 U.S. 238 
     (1986); Federal Election Comm'n v. National Conservative 
     Political Action Comm., 470 U.S. 480 (1985); California 
     Medical Assn. v. Federal Election Comm'n, 453 U.S. 182 
     (1981).
       (10) The FEC has lost time and time again in court 
     attempting to move away from the express advocacy bright line 
     test of Buckley v. Valeo. In fact, in some cases, the FEC has 
     had to pay fees and costs because the theory is frivolous. 
     See FEC v. Christian Action Network, 110 F.3d 1049 (4th Cir. 
     1997), aff'g 894 F. Supp. 946 (W.D.Va. 1995); Maine Right to 
     Life Comm. v. FEC, 914 F. Supp. 8 (D.Me. 1996), aff'd 98 F.3d 
     1 (1st Cir. 1996), cert. denied, 118 S. Ct. 52 (1997); 
     Clifton v. FEC, 114 F.3d 1309 (1st Cir. 1997); Faucher v. 
     FEC, 928 F.2d 468, 472 (1st Cir.), cert. denied, 502 U.S. 820 
     (1991); FEC v. Colorado Republican Federal Campaign Comm., 
     839 F. Supp. 1448 (D. Co.), rev'd on other grounds, 59 F.3d 
     1015 (10th Cir.), vacated on other grounds, 116 S. Ct. 2309 
     (1996); FEC v. Central Long Island Tax Reform Immediately 
     Comm., 616 F.2d 45, 53 (2d Cir. 1980); Minnesota Citizens 
     Concerned for Life, Inc. v. FEC, 936 F. Supp. 633 (D. Minn. 
     1996), aff'd 113 F.3d 129 (8th Cir. 1997), reh'g. en banc 
     denied, 1997 U.S. App. LEXIS 17528; West Virginians for Life, 
     Inc. v. Smith, 960 F. Supp. 1036, 1039 (S.D.W.Va. 1996); FEC 
     v. Survival Education Fund, 1994 U.S. Dist. Lexis 210 
     (S.D.N.Y. 1994), aff'd in part and rev'd in part, 65 F.3d 285 
     (2nd Cir. 1995); FEC v. National Organization for Women, 713 
     F. Supp. 428, 433-34 (D.D.C. 1989); FEC v. American 
     Federation of State, County and Municipal Employees, 471 F. 
     Supp. 315, 316-17 (D.D.C. 1979). Even the FEC abandoned the 
     ``electioneering communication'' standard soon after the 1996 
     election due to its vagueness.
       (11) The courts have also repeatedly upheld the rights of 
     political party committees. As Justice Kennedy noted: ``The 
     central holding in Buckley v. Valeo is that spending money on 
     one's own speech must be permitted, and that this is what 
     political parties do when they make expenditures FECA 
     restricts.'' Colo. Republican Fed. Campaign Comm. v. Federal 
     Election Comm'n, 518 U.S. 604, 627 (1996) (J. Kennedy, 
     concurring). Justice Thomas added: ``As applied in the 
     specific context of campaign funding by political parties, 
     the anticorruption rationale loses its force. See Nahra, 
     Political Parties and the Campaign Finance Laws: Dilemmas, 
     Concerns and Opportunities, 56 Ford L. Rev. 53, 105-106 
     (1987). What could it mean for a party to `corrupt' its 
     candidates or to exercise `coercive' influence over him? The 
     very aim of a political party is to influence its candidate's 
     stance on issues and, if the candidate takes office or is 
     reelected, his votes. When political parties achieve that 
     aim, that achievement does not, in my view, constitute `a 
     subversion of the political process.' Federal Election Comm'n 
     v. NCPAC, 470 U.S. at 497. For instance, if the Democratic 
     Party spends large sums of money in support of a candidate 
     who wins, takes office, and then implements the Party's 
     platform, that is not corruption; that is successful advocacy 
     of ideas in the political marketplace and representative 
     government in a party system. To borrow a phrase from Federal 
     Election Comm'n v. NCPAC, `the fact that candidates and 
     elected officials may alter or reaffirm their own positions 
     on issues in response to political messages paid for by 
     [political groups] can hardly be called corruption, for one 
     of the essential features of democracy is the presentation of 
     the electorate of varying points of view.' Id. at 498. Cf. 
     Federal Election Comm'n v. MCFL, 479 U.S. at 263 (suggesting 
     that `[v]oluntary political associations do not...present the 
     specter of corruption').''. Colo. Republican Fed. Campaign 
     Comm. v. Federal Election Comm'n, 518 U.S. 604, 647 (1996) 
     (J. Thomas, concurring). Justice Thomas continued: ``The 
     structure of political parties is such that the theoretical 
     danger of those groups actually engaging in quid pro quos 
     with candidates is significantly less than the threat of 
     individuals or other groups doing so. See Nahra, Political 
     Parties and the Campaign Finance Laws: Dilemmas, Concerns and 
     Opportunities, 56 Ford L. Rev. 53, 97-98 (1987) (citing F. 
     Sorauf, Party Politics in America 15-18 (5th ed. 1984)). 
     American political parties, generally speaking, have numerous 
     members with a wide variety of interests, features necessary 
     for success in majoritarian elections. Consequently, the 
     influence of any one person or the importance of any single 
     issue within a political party is significantly diffused. For 
     this reason, as the Party's amici argue, see Brief for 
     Committee for Party Renewal et al. as Amicus Curiae 16, 
     campaign funds donated by parties are considered to be some 
     of `the cleanest money in politics.' J. Bibby, Campaign 
     Finance Reform, 6 Commonsense 1, 10 (Dec. 1983). And, as long 
     as the Court continues to permit Congress to subject 
     individuals to limits on the amount they can give to parties, 
     and those limits are uniform as to all donors, see 2 U.S.C. 
     section 441a(a)(1), there is little risk that an individual 
     donor could use a party as a conduit for bribing candidates. 
     Id.''.
       (12) As recently as 2000, the Supreme Court reminded us 
     once again of the vital role that political parties play on 
     our democratic life, by serving as the primary vehicles for 
     the political views and voices of millions and millions of 
     Americans. ``Representative democracy in any populous unit of 
     governance is unimaginable without the ability of citizens to 
     band together in promoting the electoral candidates who 
     espouse their political views. The formation of national 
     political parties was almost concurrent with the formation of 
     the Republic itself.'' California Democratic Party v. Jones, 
     530 U.S. 567 (2000). Moreover, just last year, a Federal 
     court struck down a state law that included a so-called 
     ``soft money ban,'' which in reality was a ban on corporate 
     and union contributions to political parties--which as a 
     factual matter is correct. The Anchorage Daily News reported:
       (13) A Federal judge says corporations and unions have a 
     constitutional right to give unlimited amounts of ``soft 
     money'' to political parties, so long as none of the money is 
     used to get specific candidates elected. In a decision dated 
     June 11, U.S. District Judge James Singleton struck down a 
     section of Alaska's 1997 political contributions law that 
     barred corporations, unions and other businesses from 
     contributing any money to political candidates or parties. 
     The ban against corporate contributions to individual 
     candidates is fine, Singleton said. Public concern about the 
     corrupting influence or corporate contributions on a specific 
     candidate is legitimate and important enough to somewhat 
     limit freedom of speech and political association, the judge 
     concluded. But contributions to the noncandidate work of a 
     political party do not raise undue influence issues and 
     therefore may not be restricted, the judge concluded.
       (14) Sheila Toomey, Anchorage Daily News (June 14, 2001) 
     (reporting on Kenneth P. Jacobus, et al. vs. State of Alaska, 
     et al., No. A97-0272 (D. Alaska filed June 11, 2001).
       (15) Nor is speech any less protected by the First 
     Amendment simply because the one making the speech contacted 
     or communicated with others. For some time, the Federal 
     Election Commission held the view that such ``coordination'' 
     (an undefined term), even of communications that did not 
     contain express advocacy, somehow was problematic, and 
     subject to the limitations and prohibitions of the Act. This 
     view has been rejected by the courts. Federal Election 
     Commission v. Christian Coalition, 52 F. Supp. 2d 45 (D.D.C. 
     1999). In fact, lower Federal courts have held that even 
     political party committee limits on coordinated expenditures 
     are an unconstitutional restriction on speech. Federal 
     Election Commission v. Colo. Republican Fed. Campaign Comm., 
     213 F.3d 1221 (10th Cir. 2000). Unless a party committee's 
     expenditure is the functional equivalent of a contribution 
     (and thus not ``coordinated''), it cannot be limited. See 
     Federal Election Commission v. Colo. Republican Fed. Campaign 
     Comm., 150

[[Page 1136]]

     L.Ed.2d 461, nt. 17, nt. 2 (J. Thomas, dissenting) (2001). As 
     a factual matter, many party committee ``coordinated'' 
     expenditures are not the functional equivalent of 
     contributions. See Amicus Curie Brief of the National 
     Republican Congressional Committee, Federal Election 
     Commission v. Colo. Republican Fed. Campaign Comm., 150 
     L.Ed.2d 461 (2001).
       (16) Commentators, legal experts and testimony in the 
     record echoes the need to be mindful of the First Amendment. 
     Whether it is the American Civil Liberties Union, see March 
     10, 2001 ACLU Letter to Senate (and all cases cited therein) 
     & June 14, 2001 ACLU testimony before the House 
     Administration Committee (and cases cited therein), or the 
     counsel to the National Right to Life Committee and the 
     Christian Coalition, see June 14, 2001 testimony of James 
     Bopp before the House Administration Committee (and cases 
     cited therein), experts across the political spectrum have 
     thoughtfully explained the need to ensure the First Amendment 
     rights of citizens of this country.
       (17) Citizens who have an interest in issues have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communication in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (18) This Act contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     to their elected officials and the general public.
       (19) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 602. NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS.

       Notwithstanding any provision of this Act, and in 
     recognition of the First Amendment to the United States 
     Constitution, nothing in this Act or in any amendment made by 
     this Act may be construed to abridge those freedoms found in 
     that Amendment, specifically the freedom of speech or of the 
     press, or the right of people to peaceably assemble, and to 
     petition the government for a redress of grievances, 
     consistent with the rulings of the courts of the United 
     States (as provided in section 601).

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 33. Amend section 323(b) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(b) State, District, and Local Committees.--An amount 
     that is expended or disbursed for Federal election activity 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of such committee or 
     entity), or by an association or similar group of candidates 
     for State or local office or individuals holding State or 
     local office, shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       Amend section 323(e)(3) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 101(a) of the 
     bill, to read as follows:
       ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
     candidate or an individual holding Federal office may attend, 
     speak, or be a featured guest at a fundraising event for a 
     State, district, or local committee of a political party.
       Amend section 304(e)(2) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 103(a) of the 
     bill, to read as follows:
       ``(2) Other political committees to which section 323 
     applies.--In addition to any other reporting requirements 
     applicable under this Act, a political committee (not 
     described in paragraph (1)) to which section 323(b) applies 
     shall report all receipts and disbursements made for 
     activities described in section 301(20)(A), unless the 
     aggregate amount of such receipts and disbursements during 
     the calendar year is less than $5,000.

                               H.R. 2356

                             Offered By: __

                           [Shays Substitute]

       Amendment No. 34. Add at the end of title III the following 
     new section:

     SEC. 320. BANNING POLITICAL CONTRIBUTIONS IN FEDERAL 
                   ELECTIONS BY ALL INDIVIDUALS NOT CITIZENS OR 
                   NATIONALS OF THE UNITED STATES.

       Section 319(b)(2) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441e(b)(2)) is amended by striking the period 
     at the end and inserting the following: ``, or in the case of 
     an election for Federal office, an individual who is not a 
     citizen of the United States or a national of the United 
     States (as defined in section 101(a)(22) of the Immigration 
     and Nationality Act).''.

                               H.R. 2356

                          Offered By: Mr. Ney

                           [Armey Substitute]

       Amendment No. 35: Amend section 301(20) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(20) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot);
       ``(iii) a public communication that refers to a clearly 
     identified candidate for Federal office (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) services provided during any month by an employee of 
     a State, district, or local committee of a political party 
     who spends more than 25 percent of that individual's 
     compensated time during that month on activities in 
     connection with a Federal election.
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) a public communication that refers solely to a 
     clearly identified candidate for State or local office, if 
     the communication is not a Federal election activity 
     described in subparagraph (A)(i) or (ii);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated to pay 
     for a Federal election activity described in subparagraph 
     (A);
       ``(iii) the costs of a State, district, or local political 
     convention; and
       ``(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.
       In section 402(b), strike ``At any time after such 
     effective date, the committee may spend such funds for 
     activities which are solely to defray the costs of the 
     construction or purchase of any office building or 
     facility.'' and insert the following: ``At no time after such 
     effective date may the committee spend any such funds for 
     activities to defray the costs of the construction or 
     purchase of any office building or facility.''.

                               H.R. 2356

                          Offered By: Mr. Ney

                           [Armey Substitute]

       Amendment No. 36: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Campaign 
     Reform and Citizen Participation Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.
Sec. 202. Increase in limits on contributions to State parties.
Sec. 203. Treatment of contributions to national party under aggregate 
              annual limit on individual contributions.
Sec. 204. Exemption of costs of volunteer campaign materials produced 
              and distributed by parties from treatment as 
              contributions and expenditures.
Sec. 205. Indexing.
Sec. 206. Permitting national parties to establish accounts for making 
              expenditures in excess of limits on behalf of candidates 
              facing wealthy opponents.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior 
              to election.
Sec. 302. Disclosure of information on targeted mass communications.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

[[Page 1137]]



                TITLE I--SOFT MONEY OF NATIONAL PARTIES

     SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL POLITICAL 
                   PARTIES.

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


               ``soft money of national political parties

       ``Sec. 323. (a) Prohibiting Use of Soft Money for Federal 
     Election Activity.--A national committee of a political party 
     (including a national congressional campaign committee of a 
     political party) may not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of funds 
     or any other thing of value for Federal election activity, or 
     spend any funds for Federal election activity, that are not 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(b) Limit on Amount of Nonfederal Funds Provided to Party 
     by Any Person for Any Purpose.--
       ``(1) Limit on amount.--No person shall make contributions, 
     donations, or transfers of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party in any calendar year in an aggregate 
     amount equal to or greater than $20,000.
       ``(2) Prohibiting provision of nonfederal funds by 
     individuals.--No individual may make any contribution, 
     donation, or transfer of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party.
       ``(c) Applicability.-- This subsection shall apply to any 
     political committee established and maintained by a national 
     political party, any officer or agent of such a committee 
     acting on behalf of the committee, and any entity that is 
     directly or indirectly established, maintained, or controlled 
     by such a national committee.
       ``(d) Definitions.--
       ``(1) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election, unless the activity constitutes generic 
     campaign activity;
       ``(ii) voter identification or get-out-the-vote activity 
     conducted in connection with an election in which a candidate 
     for Federal office appears on the ballot (regardless of 
     whether a candidate for State or local office also appears on 
     the ballot), unless the activity constitutes generic campaign 
     activity;
       ``(iii) any public communication that refers to or depicts 
     a clearly identified candidate for Federal office (regardless 
     of whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) any public communication made by means of any 
     broadcast, cable, or satellite communication.
       ``(B) Exception for certain administrative activities.--The 
     term `Federal election activity' does not include any 
     activity relating to establishment, administration, or 
     solicitation costs of a political committee established and 
     maintained by a national political party, so long as the 
     funds used to carry out the activity are derived from funds 
     or payments made to the committee which are segregated and 
     used exclusively to defray the costs of such activities.
       ``(2) Generic campaign activity.--The term `generic 
     campaign activity' means any activity that does not mention, 
     depict, or otherwise promote a clearly identified Federal 
     candidate.
       ``(3) Public communication.--The term `public 
     communication' means a communication by means of any 
     broadcast, cable, or satellite communication, newspaper, 
     magazine, outdoor advertising facility, or direct mail.
       ``(4) Direct mail.--The term `direct mail' means a mailing 
     by a commercial vendor or any mailing made from a commercial 
     list.''.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

     SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

       (a) Contributions by Committees to National Parties.--
     Section 315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is 
     amended by striking ``$15,000'' and inserting ``$30,000''.
       (b) Aggregate Annual Limit on Contributions by 
     Individuals.--Section 315(a)(3) of such Act (2 U.S.C. 
     441a(a)(3)) is amended by striking ``$25,000'' and inserting 
     ``$37,500''.

     SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE 
                   PARTIES.

       (a) Contributions by Individuals.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.
       (b) Contributions by Committees.--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) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.

     SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER 
                   AGGREGATE ANNUAL LIMIT ON INDIVIDUAL 
                   CONTRIBUTIONS.

       Section 315(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441(a)(3)) is amended--
       (1) by striking ``(3)'' and inserting ``(3)(A)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Subparagraph (A) shall not apply with respect to any 
     contribution made to any political committee established and 
     maintained by a national political party which is not the 
     authorized political committee of any candidate.''.

     SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS 
                   PRODUCED AND DISTRIBUTED BY PARTIES FROM 
                   TREATMENT AS CONTRIBUTIONS AND EXPENDITURES.

       (a) Treatment as Contributions.--Section 301(8)(B)(x) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(8)(B)(x)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.
       (b) Treatment as Expenditures.--Section 301(9)(B)(viii) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(9)(B)(viii)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.

     SEC. 205. INDEXING.

       Section 315(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking the second and third sentences;
       (B) by inserting ``(A)'' before ``At the beginning''; and
       (C) by adding at the end the following:
       ``(B) Except as provided in subparagraph (C), in any 
     calendar year after 2002--
       ``(i) a limitation established by subsections (a), (b), 
     (d), or (h) shall be increased by the percent difference 
     determined under subparagraph (A);
       ``(ii) each amount so increased shall remain in effect for 
     the calendar year; and
       ``(iii) if any amount after adjustment under clause (i) is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.
       ``(C) In the case of limitations under subsections (a) and 
     (h), increases shall only be made in odd-numbered years and 
     such increases shall remain in effect for the 2-year period 
     beginning on the first day following the date of the last 
     general election in the year preceding the year in which the 
     amount is increased and ending on the date of the next 
     general election.''; and
       (2) in paragraph (2)(B), by striking ``means the calendar 
     year 1974'' and inserting ``means--
       ``(i) for purposes of subsections (b) and (d), calendar 
     year 1974; and
       ``(ii) for purposes of subsections (a) and (h), calendar 
     year 2001''.

     SEC. 206. PERMITTING NATIONAL PARTIES TO ESTABLISH ACCOUNTS 
                   FOR MAKING EXPENDITURES IN EXCESS OF LIMITS ON 
                   BEHALF OF CANDIDATES FACING WEALTHY OPPONENTS.

       (a) Establishment of Accounts.--Section 315(d) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is 
     amended by adding at the end the following new paragraph:
       ``(4)(A) Subject to subparagraph (B), the national 
     committee of a political party may make expenditures in 
     connection with the general election campaign of a candidate 
     for Federal office (other than a candidate for President) who 
     is affiliated with such party in an amount in excess of the 
     limit established under paragraph (3) if--
       ``(i) the candidate's opponent in the general election 
     campaign makes expenditures of personal funds in connection 
     with the campaign in an amount in excess of $100,000 (as 
     provided in the notifications submitted under section 
     304(a)(6)(B)); and
       ``(ii) the expenditures are made from a separate account of 
     the party used exclusively for making expenditures pursuant 
     to this paragraph.

[[Page 1138]]

       ``(B) The amount of expenditures made in accordance with 
     subparagraph (A) by the national committee of a political 
     party in connection with the general election campaign of a 
     candidate may not exceed the amount of expenditures of 
     personal funds made by the candidate's opponent in connection 
     with the campaign (as provided in the notifications submitted 
     under section 304(a)(6)(B)).''.
       (b) Waiver of Limits on Contributions to Accounts.--Section 
     315(a) of such Act (2 U.S.C. 441a(a)) is amended by adding at 
     the end the following new paragraph:
       ``(9) The limitations imposed by paragraphs (1)(B), (2)(B), 
     and (3) shall not apply with respect to contributions made to 
     the national committee of a political party which are 
     designated by the donor to be deposited solely into the 
     account established by the party under subsection (d)(4).''.
       (c) Notification of Expenditures of Personal Funds.--
     Section 304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is 
     amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B)(i) The principal campaign committee of a candidate 
     (other than a candidate for President) shall submit the 
     following notifications relating to expenditures of personal 
     funds by such candidate (including contributions by the 
     candidate or the candidate's spouse to such committee and 
     funds derived from loans made by the candidate or the 
     candidate's spouse to such committee):
       ``(I) A notification of the first such expenditure (or 
     contribution) by which the aggregate amount of personal funds 
     expended (or contributed) with respect to an election exceeds 
     $100,000.
       ``(II) After the notification is made under subclause (I), 
     a notification of each such subsequent expenditure (or 
     contribution) which, taken together with all such subsequent 
     expenditures (and contributions) in any amount not included 
     in the most recent report under this subparagraph, totals 
     $5,000 or more.
       ``(ii) Each of the notifications submitted under clause 
     (i)--
       ``(I) shall be submitted not later than 24 hours after the 
     expenditure or contribution which is the subject of the 
     notification is made;
       ``(II) shall include the name of the candidate, the office 
     sought by the candidate, and the date of the expenditure or 
     contribution and amount of the expenditure or contribution 
     involved; and
       ``(III) shall include the total amount of all such 
     expenditures and contributions made with respect to the same 
     election as of the date of expenditure or contribution which 
     is the subject of the notification.''.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

     SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS 
                   BROADCAST PRIOR TO ELECTION.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following new 
     subsection:
       ``(e) Disclosure of Information on Certain Communications 
     Broadcast Prior to Elections.--
       ``(1) In general.--Any person who makes a disbursement for 
     a communication described in paragraph (3) shall, not later 
     than 24 hours after making the disbursement, file with the 
     Commission a statement containing the information required 
     under paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of the disbursement.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Communications described.--
       ``(A) In general.--A communication described in this 
     paragraph is any communication--
       ``(i) which is disseminated to the public by means of any 
     broadcast, cable, or satellite communication during the 120-
     day period ending on the date of a Federal election; and
       ``(ii) which mentions a clearly identified candidate for 
     such election (by name, image, or likeness).
       ``(B) Exception.--A communication is not described in this 
     paragraph if--
       ``(i) the communication appears in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, unless such facilities are owned 
     or controlled by any political party, political committee, or 
     candidate; or
       ``(ii) the communication constitutes an expenditure under 
     this Act.
       ``(4) Coordination with other requirements.--Any 
     requirement to file a statement under this subsection shall 
     be in addition to any other reporting requirement under this 
     Act.
       ``(5) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

     SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS 
                   COMMUNICATIONS.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434), as amended by section 301, is further amended by 
     adding at the end the following new subsection:
       ``(f) Disclosure of Information on Targeted Mass 
     Communications.--
       ``(1) In general.--Any person who makes a disbursement for 
     targeted mass communications in an aggregate amount in excess 
     of $50,000 during any calendar year shall, within 24 hours of 
     each disclosure date, file with the Commission a statement 
     containing the information described in paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of each such disbursement of more than 
     $200 made by the person during the period covered by the 
     statement and the identification of the person to whom the 
     disbursement was made.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Targeted mass communication defined.--
       ``(A) In general.--In this subsection, the term `targeted 
     mass communication' means any communication--
       ``(i) which is disseminated during the 120-day period 
     ending on the date of a Federal election;
       ``(ii) which refers to or depicts a clearly identified 
     candidate for such election (by name, image, or likeness); 
     and
       ``(iii) which is targeted to the relevant electorate.
       ``(B) Targeting to relevant electorate.--
       ``(i) Broadcast communications.--For purposes of this 
     paragraph, a communication disseminated to the public by 
     means of any broadcast, cable, or satellite communication 
     which refers to or depicts a clearly identified candidate for 
     Federal office is `targeted to the relevant electorate' if 
     the communication is disseminated by a broadcaster whose 
     audience includes--

       ``(I) a substantial number of residents of the district the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Representative in, or Delegate or Resident 
     Commissioner to, the Congress; or
       ``(II) a substantial number of residents of the State the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Senator.

       ``(ii) Other communications.--For purposes of this 
     paragraph, a communication which is not described in clause 
     (i) which refers to or depicts a clearly identified candidate 
     for Federal office is `targeted to the relevant electorate' 
     if--

       ``(I) more than 10 percent of the total number of intended 
     recipients of the communication are members of the electorate 
     involved with respect to such Federal office; or
       ``(II) more than 10 percent of the total number of members 
     of the electorate involved with respect to such Federal 
     office receive the communication.

       ``(C) Exceptions.--The term `targeted mass communication' 
     does not include--
       ``(i) a communication appearing in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, newspaper, magazine, or other 
     periodical publication, unless such facilities are owned or 
     controlled by any political party, political committee, or 
     candidate;
       ``(ii) a communication made by any membership organization 
     (including a labor organization) or corporation solely to its 
     members, stockholders, or executive or administrative 
     personnel, if such membership organization or corporation is 
     not organized primarily for the purpose of influencing the 
     nomination for election, or election, of any individual to 
     Federal office; or
       ``(iii) a communication which constitutes an expenditure 
     under this Act.
       ``(4) Disclosure date.--For purposes of this subsection, 
     the term `disclosure date' means--

[[Page 1139]]

       ``(A) the first date during any calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000; and
       ``(B) any other date during such calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000 since the 
     most recent disclosure date for such calendar year.
       ``(5) Coordination with other requirements.--Any 
     requirement to report under this subsection shall be in 
     addition to any other reporting requirement under this Act.
       ``(6) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on the 
     date of the enactment of this Act.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 37: Add at the end title II the following new 
     subtitle:

   Subtitle C--Exemption of Communications Pertaining to the Second 
                     Amendment of the Constitution

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) The Second Amendment to the United States Constitution 
     protects the right of individual persons to keep and bear 
     arms.
       (2) There are more than 60,000,000 gun owners in the United 
     States.
       (3) The Second Amendment to the Constitution of the United 
     States protects the right of Americans to carry firearms in 
     defense of themselves and others.
       (4) The United States Court of Appeals in U.S. v. Emerson 
     reaffirmed the fact that the right to keep and bear arms is 
     an individual right protected by the Constitution.
       (5) Americans who are concerned about threats to their 
     ability to keep and bear arms have the right to petition 
     their government.
       (6) The Supreme Court, in U.S. v. Cruikshank (92 U.S. 542, 
     1876) recognized that the right to arms preexisted the 
     Constitution. The Court stated that the right to arms ``is 
     not a right granted by the Constitution. Neither is it in any 
     manner dependent upon that instrument for its existence.''.
       (7) In Beard v. United States (158 U.S. 550, 1895) the 
     Court approved the common-law rule that a person ``may repel 
     force by force'' in self-defense, and concluded that when 
     attacked a person ``was entitled to stand his ground and meet 
     any attack made upon him with a deadly weapon, in such a way 
     and with such force'' as needed to prevent ``great bodily 
     injury or death''. The laws of all 50 states, and the 
     constitutions of most States, recognize the right to use 
     armed force in self-defense.
       (8) In order to protect Americans' constitutional rights 
     under the Second Amendment, the First Amendment provides the 
     ability for citizens to address the Government.
       (9) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (10) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (11) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (12) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (13) Citizens who have an interest in issues about or 
     related to the Second Amendment of the Constitution have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communications in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (14) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning the right to keep and bear arms to their elected 
     officials and the general public.
       (15) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO THE 
                   SECOND AMENDMENT OF THE CONSTITUTION.

       None of the restrictions or requirements contained in this 
     title shall apply to any form or mode of communication to the 
     public that consists of information or commentary regarding 
     the statements, actions, positions, or voting records of any 
     person who holds congressional or other Federal office, or 
     who is a candidate for congressional or other Federal office, 
     on any matter pertaining to the Second Amendment.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 38: Add at the end of title II the following 
     new subtitle:

    Subtitle C--Exemption of Communications Pertaining to Veterans, 
                     Military Personnel, or Seniors

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 42,000,000 men and women have served in the 
     United States Armed Forces from the Revolution onward and 
     more than 25 million are still living. Living veterans and 
     their families, plus the living dependents of deceased 
     veterans, constitute a significant part of the present United 
     States population.
       (2) American veterans are black and they are white; they 
     are of every race and ethnic heritage. They are men, and they 
     are women. They are Christians, they are Muslims, they are 
     Jews. They are fathers, mothers, sisters, brothers, sons and 
     daughters. They are neighbors, down the street or right next 
     door. They are teachers in our schools, they are factory 
     workers. They are Americans living today who served in the 
     armed services, and they are the more than 1,000,000 who have 
     died in America's wars.
       (3) America's veterans are men and women who have fought to 
     protect the United States against foreign aggressors as 
     Soldiers, Sailors, Airmen, Coast Guardsmen and Marines. The 
     members of our elite organization are those who have 
     discharged their very special obligation of citizenship as 
     servicemen and women, and who today continue to expend great 
     time, effort and energy in the service of their fellow 
     veterans and their communities.
       (4) There is a bond joining every veteran from every branch 
     of the service. Whether drafted or enlisted, commissioned or 
     noncommissioned, each took an oath, lived by a code, and 
     stood ready to fight and die for their country.
       (5) American men and women in uniform risk their lives on a 
     daily basis to defend our freedom and democracy. Americans 
     have always believed that there are values worth fighting 
     for--values and liberties upon which America was founded and 
     which we have carried forward for more than 225 years, that 
     men and women of this great nation gave their lives to 
     preserve.
       (6) It is the sacrifice borne by generations of American 
     veterans that has made us strong and has rendered us the 
     beacon of nations throughout the world. American veterans 
     have fought for freedom for Americans, as well as citizens 
     throughout the world. They have helped to defend and preserve 
     the values of freedom of speech, democracy, voting rights, 
     human rights, equal access and the rights of the individual--
     those values felt and nurtured on every continent in our 
     world.
       (7) The freedoms and opportunities we enjoy today were 
     bought and paid for with

[[Page 1140]]

     their devotion to duty and their sacrifices. We can never say 
     it too many times: We are the benefactors of their sacrifice, 
     and we are grateful.
       (8) Of the 25,000,000 veterans currently alive, nearly 
     three of every four served during a war or an official period 
     of hostility. About a quarter of the Nation's population--
     approximately 70,000,000 people--are potentially eligible for 
     Veterans' Administration benefits and services because they 
     are veterans, family members or survivors of veterans.
       (9) The present veteran population is estimated at 
     25,600,000, as of July 1, 1997. Nearly 80 of every 100 living 
     veterans served during defined periods of armed hostilities. 
     Altogether, almost one-third of the nation's population--
     approximately 70,000,000 persons who are veterans, dependents 
     and survivors of deceased veterans--are potentially eligible 
     for Veterans' Administration benefits and services.
       (10) Care for veterans and dependents spans centuries. The 
     last dependent of a Revolutionary War veteran died in 1911; 
     the War of 1812's last dependent died in 1946; the Mexican 
     War's, in 1962.
       (11) The Veterans' Administration health care system has 
     grown from 54 hospitals in 1930, to include 171 medical 
     centers; more than 350 outpatient, community, and outreach 
     clinics; 126 nursing home care units; and 35 domiciliaries. 
     Veterans' Administration health care facilities provide a 
     broad spectrum of medical, surgical, and rehabilitative care.
       (12) World War II resulted in not only a vast increase in 
     the veteran population, but also in large number of new 
     benefits enacted by the Congress for veterans of the war. The 
     World War II GI Bill, signed into law on June 22, 1944, is 
     said to have had more impact on the American way of life than 
     any law since the Homestead Act more than a century ago.
       (13) About 2,700,000 veterans receive disability 
     compensation or pensions from VA. Also receiving Veterans' 
     Administration benefits are 592,713 widows, children and 
     parents of deceased veterans. Among them are 133,881 
     survivors of Vietnam era veterans and 295,679 survivors of 
     World War II veterans. In fiscal year 2001, Veterans' 
     Administration planned to spend $22,000,000,000 yearly in 
     disability compensation, death compensation and pension to 
     3,200,000 people.
       (14) Veterans' Administration manages the largest medical 
     education and health professions training program in the 
     United States. Veterans' Administration facilities are 
     affiliated with 107 medical schools, 55 dental schools and 
     more than 1,200 other schools across the country. Each year, 
     about 85,000 health professionals are trained in Veterans' 
     Administration medical centers. More than half of the 
     physicians practicing in the United States have had part of 
     their professional education in the Veterans' Administration 
     health care system.
       (15) 75 percent of Veterans' Administration researchers are 
     practicing physicians. Because of their dual roles, Veterans' 
     Administration research often immediately benefits patients. 
     Functional electrical stimulation, a technology using 
     controlled electrical current to activate paralyzed muscles, 
     is being developed at Veterans' Administration clinical 
     facilities and laboratories throughout the country. Through 
     this technology, paraplegic patients have been able to stand 
     and, in some instances, walk short distances and climb 
     stairs. Patients with quadriplegia are able to use their 
     hands to grasp objects.
       (16) There are more than 35,000,000 persons in the United 
     States aged 65 and over.
       (17) Seniors are a diverse population, each member having 
     his or her own political and economic issues.
       (18) Seniors and their families have many important issues 
     for which they seek congressional action. Some of these 
     issues include, but are not limited to, health care, Social 
     Security, and taxes.
       (19) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (20) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (21) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (22) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (23) Citizens who have an interest in issues about or 
     related to veterans, military personnel, seniors, and their 
     families have the Constitutional right to criticize or praise 
     their elected officials individually or collectively as a 
     group. Communications in the form of criticism or praise of 
     elected officials is preciously protected as free speech 
     under the First Amendment of the Constitution of the United 
     States.
       (24) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning veterans, military personnel, seniors, and their 
     families to their elected officials and the general public.
       (25) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO 
                   VETERANS, MILITARY PERSONNEL, OR SENIORS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to veterans, military personnel, or senior 
     citizens, or to the immediate family members of veterans, 
     military personnel, or senior citizens.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 39: Amend section 402 to read as follows:

     SEC. 402. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act shall take 
     effect February 14, 2002.
       (b) Transition Rule for Spending of Funds by National 
     Parties.--If a national committee of a political party 
     described in section 323(a)(1) of the Federal Election 
     Campaign Act of 1971 (as added by section 101(a)), including 
     any person who is subject to such section, has received funds 
     described in such section prior to the effective date 
     described in subsection (a) which remain unexpended as of 
     such date, the committee shall return the funds on a pro rata 
     basis to the persons who provided the funds to the committee.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 40: Add at the end of title II the following 
     new subtitle:

Subtitle C--Exemption of Communications Pertaining to Workers, Farmers, 
                       Families, and Individuals

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) There are approximately 138 million people employed in 
     the United States.
       (2) Thousands of organizations and associations represent 
     these employed persons and their employers in numerous forms 
     and forums, not least of which is by participating in our 
     electoral and political system in a number of ways, including 
     informing citizens of key votes that affect their common 
     interests, criticizing and praising elected officials for 
     their position on issues, contributing to candidates and 
     political parties, registering voters, and conducting get-
     out-the-vote activities.
       (3) The rights of American workers to bargain collectively 
     are protected by their First Amendment to the Constitution 
     and by provisions in the National Labor Relations Act. 
     Federal law guarantees the rights of workers to choose 
     whether to bargain collectively through a union.
       (4) Fourteen percent of the American workforce has chosen 
     to affiliate with a

[[Page 1141]]

     labor union. Federal law allows workers and unions the 
     opportunity to combine strength and to work together to seek 
     to improve the lives of America's working families, bring 
     fairness and dignity to the workplace and secure social and 
     economic equity in our nation.
       (5) Nearly three quarters of all United States business 
     firms have no payroll. Most are self-employed persons 
     operating unincorporated businesses, and may or may not be 
     the owner's principal source of income.
       (6) Minorities owned fewer than 7 percent of all United 
     States firms, excluding C corporations, in 1982, but this 
     share soared to about 15 percent by 1997. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (7) In 1999, women made up 46 percent of the labor force. 
     The labor force participation rate of American women was the 
     highest in the world.
       (8) Labor/Worker unions represent 16 million working women 
     and men of every race and ethnicity and from every walk of 
     life.
       (9) In recent years, union members and their families have 
     mobilized in growing numbers. In the 2000 election, 26 
     percent of the nation's voters came from union households.
       (10) According to the 2000 census, total United States 
     families were totaled at over 105 million.
       (11) In 2000, there were 8.7 million African American 
     families.
       (12) Asians have larger families than other groups. For 
     example, the average Asian family size is 3.6 persons, as 
     opposed to an average Caucasian family of 3.1 persons.
       (13) American farmers, ranchers, and agricultural managers 
     direct the activities of the world's largest and most 
     productive agricultural sectors. They produce enough food and 
     fiber to meet the needs of the United States and produce a 
     surplus for export.
       (14) About 17 percent of raw United States agricultural 
     products are exported yearly, including 83 million metric 
     tons of cereal grains, 1.6 billion pounds of poultry, and 1.4 
     million metric tons of fresh vegetables.
       (15) One-fourth of the world's beef and nearly one-fifth of 
     the world's grain, milk, and eggs are produced in the United 
     States.
       (16) With 96 percent of the world's population living 
     outside our borders, the world's most productive farmers need 
     access to international markets to compete.
       (17) Every State benefits from the income generated from 
     agricultural exports. 19 States have exports of $1 billion or 
     more.
       (18) America's total on United States exports is $49.1 
     billion and the number of imports is $37.5 billion.
       (19) By itself, farming--production agriculture--
     contributed $60.4 billion toward the national GDP (Gross 
     Domestic Product).
       (20) Farmers and ranchers provide food and habitat for 75 
     percent of the Nation's wildlife.
       (21) More than 23 million jobs--17 percent of the civilian 
     workforce--are involved in some phase of growing and getting 
     our food and clothing to us. America now has fewer farmers, 
     but they are producing now more than ever before.
       (22) Twenty-two million American workers process, sell, and 
     trade the Nation's food and fiber. Farmers and ranchers work 
     with the Department of Agriculture to produce healthy crops 
     while caring for soil and water.
       (23) By February 8, the 39th day of 2002, the average 
     American has earned enough to pay for their family's food for 
     the entire year. In 1970 it took 12 more days than it does 
     now to earn a full food pantry for the year. Even in 1980 it 
     took 10 more days--49 total days--of earning to put a year's 
     supply of food on the table.
       (24) Farmers are facing the 5th straight year of the lowest 
     real net farm income since the Great Depression. Last 
     October, prices farmers received made their sharpest drop 
     since United States Department of Agriculture began keeping 
     records 91 years ago. During this same period the cost of 
     production has hit record highs.
       (25) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (26) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (27) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (28) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (29) Citizens who have an interest in issues about or 
     related to their lives have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (30) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy.
       (31) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO WORKERS, 
                   FARMERS, FAMILIES, AND INDIVIDUALS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to any individual.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 41: Add at the end title II the following new 
     subtitle:

Subtitle C--Exemption of Communications Pertaining to Civil Rights and 
                      issues affecting minorities.

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 70 million people in the United States belong 
     to a minority race.
       (2) More than 34 million people in the United States are 
     African American, 35 million are Hispanic or Latino, 10 
     million are Asian, and 2 million are American Indian or 
     Alaska Native.
       (3) Minorities account for around 24 percent of the U.S. 
     workforce.
       (4) Minorities, who owned fewer than 7 percent of all U.S. 
     firms in 1982, now own more than 15 percent. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (5) Self-employment as a share of each group's 
     nonagricultural labor force (averaged over the 1991-1999 
     decade) was White, 9.7 percent; African American, 3.8 
     percent; American Indian, Eskimo, or Aleut, 6.4 percent; and 
     Asian or Pacific Islander, 10.1 percent.
       (6) Of U.S. businesses, 5.8 percent were owned by Hispanic 
     Americans, 4.4 percent by Asian Americans, 4.0 percent by 
     African Americans, and 0.9 percent by American Indians.
       (7) Of the 4,514,699 jobs in minority-owned businesses in 
     1997, 48.8 percent were in Asian-owned firms, 30.8 percent in 
     Hispanic-owned firms, 15.9 percent in African American-owned 
     firms, and 6.6 percent in American Native-owned firms.
       (8) Minority-owned firms had about $96 billion in payroll 
     in 1997. The average payroll per employee was roughly $21,000 
     in the major minority groups and ranged from just under 
     $15,000 to just over $27,000 in various subgroups of the 
     minority population.
       (9) African Americans were the only race or ethnic group to 
     show an increase in voter participation in congressional 
     elections, increasing their presence at the polls from 37

[[Page 1142]]

     percent in 1994 to 40 percent in 1998. Nationwide, overall 
     turnout by the voting-age population was down from 45 percent 
     in 1994 to 42 percent in 1998.
       (10) In 2000, there were 8.7 million African American 
     families. The United States had 96,000 African American 
     engineers, 41,000 African American physicians and 47,000 
     African American lawyers in 1999.
       (11) The number of Asians and Pacific Islanders voting in 
     congressional elections increased by 366,000 between 1994 and 
     1998.
       (12) Businesses owned by Asians and Pacific Islanders made 
     up 4 percent of the nation's 20.8 million nonfarm businesses.
       (13) Asians tend to have larger families--the average 
     family size is 3.6 persons, as opposed to an average 
     Caucasian family of 3.1 persons.
       (14) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (15) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (16) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (17) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (18) Citizens who have an interest in issues about or 
     related to civil rights have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (19) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning civil rights to their elected officials and the 
     general public.
       (20) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO CIVIL 
                   RIGHTS AND ISSUES AFFECTING MINORITIES.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to civil rights.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 42: Add at the end the following title:

          TITLE VI--NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS

     SEC. 601. FINDINGS.

       Congress finds the following:
       (1) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''
       (2) The First Amendment affords the broadest protection to 
     such political expression in order ``to assure [the] 
     unfettered interchange of ideas for the bringing about of 
     political and social changes desired by the people. Roth v. 
     United States, 354 U.S. 476, 484 (1957).
       (3) According to Mills v. Alabama, 384 U.S. 214, 218 
     (1966), there is practically universal agreement that a major 
     purpose of that Amendment was to protect the free discussion 
     of governmental affairs, ``. . . of course including[ing] 
     discussions of candidates . . .''.
       (4) According to New York Times Co. v. Sullivan, 376 U.S. 
     254, 270 (1964), the First Amendment reflects our ``profound 
     national commitment to the principle that debate on public 
     issues should be uninhibited, robust, and wide-open''. In a 
     republic where the people are sovereign, the ability of the 
     citizenry to make informed choices among candidates for 
     office is essential, for the identities of those who are 
     elected will inevitably shape the course that we follow as a 
     nation.
       (5) The First Amendment protects political association as 
     well as political expression. The constitutional right of 
     association explicated in NAACP v. Alabama, 357 U.S. 449, 460 
     (1958), stemmed from the Court's recognition that 
     ``[e]ffective advocacy of both public and private points of 
     view, particularly controversial ones, is undeniably enhanced 
     by group association.'' Subsequent decisions have made clear 
     that the First and Fourteenth Amendments guarantee ``freedom 
     to associate with others for the common advancement of 
     political beliefs and ideas,'' a freedom that encompasses 
     ```[t]he right to associate with the political party of one's 
     choice.''' Kusper v. Pontikes, 414 U.S. 51, 56, 57, quoted in 
     Cousins v. Wigoda, 419 U.S. 477, 487 (1975).
       (6) In Buckley v. Valeo, the Supreme Court stated, ``A 
     restriction on the amount of money a person or group can 
     spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (7) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (8) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (9) The courts of the United States have consistently 
     reaffirmed and applied the teachings of Buckley, striking 
     down such government overreaching. The courts of the United 
     States have consistently upheld the rights of the citizens of 
     the United States, candidates for public office, political 
     parties, corporations, labor unions, trade associations, non-
     profit entities, among others. Such decisions provide a very 
     clear line as to what the government can and cannot do with 
     respect to the regulation of campaigns. See Federal Election 
     Comm'n v. Massachusetts Citizens for Life, Inc., 479 U.S. 238 
     (1986); Federal Election Comm'n v. National Conservative 
     Political Action Comm., 470 U.S. 480 (1985); California 
     Medical Assn. V. Federal Election Comm'n, 453 U.S. 182 
     (1981).
       (10) The FEC has lost time and time again in court 
     attempting to move away from the express advocacy bright line 
     test of Buckley v. Valeo. In fact, in some cases, the FEC has 
     had to pay fees and costs because the theory is frivolous. 
     See FEC v. Christian Action Network, 110 F.3d 1049 (4th Cir. 
     1997), aff'g 894 F. Supp. 946 (W.D.Va. 1995); Maine Right to 
     Life Comm. v. FEC, 914 F. Supp. 8 (D.Me. 1996), aff'd 98 F.3d 
     1 (1st Cir. 1996), cert. denied, 118 S. Ct. 52 (1997); 
     Clifton v. FEC, 114 F.3d 1309

[[Page 1143]]

     (1st Cir. 1997); Faucher v. FEC, 928 F.2d 468, 472 (1st 
     Cir.), cert. denied, 502 U.S. 820 (1991); FEC v. Colorado 
     Republican Federal Campaign Comm., 839 F. Supp. 1448 (D. 
     Co.), rev'd on other grounds, 59 F.3d 1015 (10th Cir.), 
     vacated on other grounds, 116 S. Ct. 2309 (1996); FEC v. 
     Central Long Island Tax Reform Immediately Comm., 616 F.2d 
     45, 53 (2d Cir. 1980); Minnesota Citizens Concerned for Life, 
     Inc. v. FEC, 936 F. Supp. 633 (D. Minn. 1996), aff'd 113 F.3d 
     129 (8th Cir. 1997), reh'g. en banc denied, 1997 U.S. App. 
     LEXIS 17528; West Virginians for Life, Inc. v. Smith, 960 F. 
     Supp. 1036, 1039 (S.D.W.Va. 1996); FEC v. Survival Education 
     Fund, 1994 U.S. Dist. Lexis 210 (S.D.N.Y. 1994), aff'd in 
     part and rev'd in part, 65 F.3d 285 (2nd Cir. 1995); FEC v. 
     National Organization for Women, 713 F. Supp. 428, 433-34 
     (D.D.C. 1989); FEC v. American Federation of State, County 
     and Municipal Employees, 471 F. Supp. 315, 316-17 (D.D.C. 
     1979). Even the FEC abandoned the ``electioneering 
     communication'' standard soon after the 1996 election due to 
     its vagueness.
       (11) The courts have also repeatedly upheld the rights of 
     political party committees. As Justice Kennedy noted: ``The 
     central holding in Buckley v. Valeo is that spending money on 
     one's own speech must be permitted, and that this is what 
     political parties do when they make expenditures FECA 
     restricts.'' Colo. Republican Fed. Campaign Comm. v. Federal 
     Election Comm'n, 518 U.S. 604, 627 (1996) (J. Kennedy, 
     concurring). Justice Thomas added: ``As applied in the 
     specific context of campaign funding by political parties, 
     the anticorruption rationale loses its force. See Nahra, 
     Political Parties and the Campaign Finance Laws: Dilemmas, 
     Concerns and Opportunities, 56 Ford L. Rev. 53, 105-106 
     (1987). What could it mean for a party to `corrupt' its 
     candidates or to exercise `coercive' influence over him? The 
     very aim of a political party is to influence its candidate's 
     stance on issues and, if the candidate takes office or is 
     reelected, his votes. When political parties achieve that 
     aim, that achievement does not, in my view, constitute `a 
     subversion of the political process.' Federal Election Comm'n 
     v. NCPAC, 470 U.S. at 497. For instance, if the Democratic 
     Party spends large sums of money in support of a candidate 
     who wins, takes office, and then implements the Party's 
     platform, that is not corruption; that is successful advocacy 
     of ideas in the political marketplace and representative 
     government in a party system. To borrow a phrase from Federal 
     Election Comm'n v. NCPAC, `the fact that candidates and 
     elected officials may alter or reaffirm their own positions 
     on issues in response to political messages paid for by 
     [political groups] can hardly be called corruption, for one 
     of the essential features of democracy is the presentation of 
     the electorate of varying points of view.' Id. at 498. Cf. 
     Federal Election Comm'n v. MCFL, 479 U.S. at 263 (suggesting 
     that `[v]oluntary political associations do not . . . present 
     the specter of corruption').''. Colo. Republican Fed. 
     Campaign Comm. v. Federal Election Comm'n, 518 U.S. 604, 647 
     (1996) (J. Thomas, concurring). Justice Thomas continued: 
     ``The structure of political parties is such that the 
     theoretical danger of those groups actually engaging in quid 
     pro quos with candidates is significantly less than the 
     threat of individuals or other groups doing so. See Nahra, 
     Political Parties and the Campaign Finance Laws: Dilemmas, 
     Concerns and Opportunities, 56 Ford L. Rev. 53, 97-98 (1987) 
     (citing F. Sorauf, Party Politics in America 15-18 (5th ed. 
     1984)). American political parties, generally speaking, have 
     numerous members with a wide variety of interests, features 
     necessary for success in majoritarian elections. 
     Consequently, the influence of any one person or the 
     importance of any single issue within a political party is 
     significantly diffused. For this reason, as the Party's amici 
     argue, see Brief for Committee for Party Renewal et al. as 
     Amicus Curiae 16, campaign funds donated by parties are 
     considered to be some of `the cleanest money in politics.' J. 
     Bibby, Campaign Finance Reform, 6 Commonsense 1, 10 (Dec. 
     1983). And, as long as the Court continues to permit Congress 
     to subject individuals to limits on the amount they can give 
     to parties, and those limits are uniform as to all donors, 
     see 2 U.S.C. section 441a(a)(1), there is little risk that an 
     individual donor could use a party as a conduit for bribing 
     candidates. Id.''.
       (12) As recently as 2000, the Supreme Court reminded us 
     once again of the vital role that political parties play on 
     our democratic life, by serving as the primary vehicles for 
     the political views and voices of millions and millions of 
     Americans. ``Representative democracy in any populous unit of 
     governance is unimaginable without the ability of citizens to 
     band together in promoting the electoral candidates who 
     espouse their political views. The formation of national 
     political parties was almost concurrent with the formation of 
     the Republic itself.'' California Democratic Party v. Jones, 
     530 U.S. 567 (2000). Moreover, just last year, a Federal 
     court struck down a state law that included a so-called 
     ``soft money ban,'' which in reality was a ban on corporate 
     and union contributions to political parties--which as a 
     factual matter is correct. The Anchorage Daily News reported:
       (13) A Federal judge says corporations and unions have a 
     constitutional right to give unlimited amounts of ``soft 
     money'' to political parties, so long as none of the money is 
     used to get specific candidates elected. In a decision dated 
     June 11, U.S. District Judge James Singleton struck down a 
     section of Alaska's 1997 political contributions law that 
     barred corporations, unions and other businesses from 
     contributing any money to political candidates or parties. 
     The ban against corporate contributions to individual 
     candidates is fine, Singleton said. Public concern about the 
     corrupting influence or corporate contributions on a specific 
     candidate is legitimate and important enough to somewhat 
     limit freedom of speech and political association, the judge 
     concluded. But contributions to the noncandidate work of a 
     political party do not raise undue influence issues and 
     therefore may not be restricted, the judge concluded.
       (14) Sheila Toomey, Anchorage Daily News (June 14, 2001) 
     (reporting on Kenneth P. Jacobus, et al. vs. State of Alaska, 
     et al., No. A97-0272 (D. Alaska filed June 11, 2001).
       (15) Nor is speech any less protected by the First 
     Amendment simply because the one making the speech contacted 
     or communicated with others. For some time, the Federal 
     Election Commission held the view that such ``coordination'' 
     (an undefined term), even of communications that did not 
     contain express advocacy, somehow was problematic, and 
     subject to the limitations and prohibitions of the Act. This 
     view has been rejected by the courts. Federal Election 
     Commission v. Christian Coalition, 52 F. Supp. 2d 45 (D.D.C. 
     1999). In fact, lower Federal courts have held that even 
     political party committee limits on coordinated expenditures 
     are an unconstitutional restriction on speech. Federal 
     Election Commission v. Colo. Republican Fed. Campaign Comm., 
     213 F.3d 1221 (10th Cir. 2000). Unless a party committee's 
     expenditure is the functional equivalent of a contribution 
     (and thus not ``coordinated''), it cannot be limited. See 
     Federal Election Commission v. Colo. Republican Fed. Campaign 
     Comm., 150 L.Ed.2d 461, nt. 17, nt. 2 (J. Thomas, dissenting) 
     (2001). As a factual matter, many party committee 
     ``coordinated'' expenditures are not the functional 
     equivalent of contributions. See Amicus Curie Brief of the 
     National Republican Congressional Committee, Federal Election 
     Commission v. Colo. Republican Fed. Campaign Comm., 150 
     L.Ed.2d 461 (2001).
       (16) Commentators, legal experts and testimony in the 
     record echoes the need to be mindful of the First Amendment. 
     Whether it is the American Civil Liberties Union, see March 
     10, 2001 ACLU Letter to Senate (and all cases cited therein) 
     & June 14, 2001 ACLU testimony before the House 
     Administration Committee (and cases cited therein), or the 
     counsel to the National Right to Life Committee and the 
     Christian Coalition, see June 14, 2001 testimony of James 
     Bopp before the House Administration Committee (and cases 
     cited therein), experts across the political spectrum have 
     thoughtfully explained the need to ensure the First Amendment 
     rights of citizens of this country.
       (17) Citizens who have an interest in issues have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communication in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (18) This Act contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     to their elected officials and the general public.
       (19) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 602. NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS.

       Notwithstanding any provision of this Act, and in 
     recognition of the First Amendment to the United States 
     Constitution, nothing in this Act or in any amendment made by 
     this Act may be construed to abridge those freedoms found in 
     that Amendment, specifically the freedom of speech or of the 
     press, or the right of people to peaceably assemble, and to 
     petition the government for a redress of grievances, 
     consistent with the rulings of the courts of the United 
     States (as provided in section 601).

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 43: Amend section 323(b) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(b) State, District, and Local Committees.--An amount 
     that is expended or disbursed for Federal election activity 
     by a

[[Page 1144]]

     State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of such committee or 
     entity), or by an association or similar group of candidates 
     for State or local office or individuals holding State or 
     local office, shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.

       Amend section 323(e)(3) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 101(a) of the 
     bill, to read as follows:
       ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
     candidate or an individual holding Federal office may attend, 
     speak, or be a featured guest at a fundraising event for a 
     State, district, or local committee of a political party.

       Amend section 304(e)(2) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 103(a) of the 
     bill, to read as follows:
       ``(2) Other political committees to which section 323 
     applies.--In addition to any other reporting requirements 
     applicable under this Act, a political committee (not 
     described in paragraph (1)) to which section 323(b) applies 
     shall report all receipts and disbursements made for 
     activities described in section 301(20)(A), unless the 
     aggregate amount of such receipts and disbursements during 
     the calendar year is less than $5,000.

                               H.R. 2356

                             Offered By: __

                           [Armey Substitute]

       Amendment No. 44: Add at the end the following:

               TITLE __--STRENGTHENING FOREIGN MONEY BAN

     SEC. __. STRENGTHENING FOREIGN MONEY BAN.

       (a) Banning All Donations to Candidates and Parties.--
     Section 319 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441e) is amended--
       (1) by striking the heading and inserting the following: 
     ``contributions and donations by foreign nationals''; and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for--
       ``(1) a foreign national, directly or indirectly, to make--
       ``(A) a contribution or donation of money or other thing of 
     value, or to make an express or implied promise to make a 
     contribution or donation, in connection with a Federal, 
     State, or local election; or
       ``(B) a contribution or donation to a committee of a 
     political party; or
       ``(2) a person to solicit, accept, or receive a 
     contribution or donation described in subparagraph (A) or (B) 
     of paragraph (1) from a foreign national.''.
       (b) Extension of Ban in Federal Elections to All 
     Noncitizens.--Section 319(b)(2) of such Act (2 U.S.C. 
     441e(b)(2)) is amended by striking the period at the end and 
     inserting the following: ``, or in the case of an election 
     for Federal office, an individual who is not a citizen of the 
     United States or a national of the United States (as defined 
     in section 101(a)(22) of the Immigration and Nationality 
     Act).''.

                               H.R. 2356

                          Offered By: Mr. Ney

                            [Ney Substitute]

       Amendment No. 45: Amend section 301(20) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(20) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election;
       ``(ii) voter identification, get-out-the-vote activity, or 
     generic campaign activity conducted in connection with an 
     election in which a candidate for Federal office appears on 
     the ballot (regardless of whether a candidate for State or 
     local office also appears on the ballot);
       ``(iii) a public communication that refers to a clearly 
     identified candidate for Federal office (regardless of 
     whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) services provided during any month by an employee of 
     a State, district, or local committee of a political party 
     who spends more than 25 percent of that individual's 
     compensated time during that month on activities in 
     connection with a Federal election.
       ``(B) Excluded activity.--The term `Federal election 
     activity' does not include an amount expended or disbursed by 
     a State, district, or local committee of a political party 
     for--
       ``(i) a public communication that refers solely to a 
     clearly identified candidate for State or local office, if 
     the communication is not a Federal election activity 
     described in subparagraph (A)(i) or (ii);
       ``(ii) a contribution to a candidate for State or local 
     office, provided the contribution is not designated to pay 
     for a Federal election activity described in subparagraph 
     (A);
       ``(iii) the costs of a State, district, or local political 
     convention; and
       ``(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.
       In section 402(b), strike ``At any time after such 
     effective date, the committee may spend such funds for 
     activities which are solely to defray the costs of the 
     construction or purchase of any office building or 
     facility.'' and insert the following: ``At no time after such 
     effective date may the committee spend any such funds for 
     activities to defray the costs of the construction or 
     purchase of any office building or facility.''.

                               H.R. 2356

                          Offered By: Mr. Ney

                            [Ney Substitute]

       Amendment No. 46: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Campaign 
     Reform and Citizen Participation Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.
Sec. 202. Increase in limits on contributions to State parties.
Sec. 203. Treatment of contributions to national party under aggregate 
              annual limit on individual contributions.
Sec. 204. Exemption of costs of volunteer campaign materials produced 
              and distributed by parties from treatment as 
              contributions and expenditures.
Sec. 205. Indexing.
Sec. 206. Permitting national parties to establish accounts for making 
              expenditures in excess of limits on behalf of candidates 
              facing wealthy opponents.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior 
              to election.
Sec. 302. Disclosure of information on targeted mass communications.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

     SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL POLITICAL 
                   PARTIES.

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


               ``soft money of national political parties

       ``Sec. 323. (a) Prohibiting Use of Soft Money for Federal 
     Election Activity.--A national committee of a political party 
     (including a national congressional campaign committee of a 
     political party) may not solicit, receive, or direct to 
     another person a contribution, donation, or transfer of funds 
     or any other thing of value for Federal election activity, or 
     spend any funds for Federal election activity, that are not 
     subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(b) Limit on Amount of Nonfederal Funds Provided to Party 
     by Any Person for Any Purpose.--
       ``(1) Limit on amount.--No person shall make contributions, 
     donations, or transfers of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party in any calendar year in an aggregate 
     amount equal to or greater than $20,000.
       ``(2) Prohibiting provision of nonfederal funds by 
     individuals.--No individual may make any contribution, 
     donation, or transfer of funds which are not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act to a political committee established and maintained by a 
     national political party.
       ``(c) Applicability.-- This subsection shall apply to any 
     political committee established and maintained by a national 
     political party, any officer or agent of such a committee 
     acting on behalf of the committee, and any entity that is 
     directly or indirectly established, maintained, or controlled 
     by such a national committee.

[[Page 1145]]

       ``(d) Definitions.--
       ``(1) Federal election activity.--
       ``(A) In general.--The term `Federal election activity' 
     means--
       ``(i) voter registration activity during the period that 
     begins on the date that is 120 days before the date a 
     regularly scheduled Federal election is held and ends on the 
     date of the election, unless the activity constitutes generic 
     campaign activity;
       ``(ii) voter identification or get-out-the-vote activity 
     conducted in connection with an election in which a candidate 
     for Federal office appears on the ballot (regardless of 
     whether a candidate for State or local office also appears on 
     the ballot), unless the activity constitutes generic campaign 
     activity;
       ``(iii) any public communication that refers to or depicts 
     a clearly identified candidate for Federal office (regardless 
     of whether a candidate for State or local office is also 
     mentioned or identified) and that promotes or supports a 
     candidate for that office, or attacks or opposes a candidate 
     for that office (regardless of whether the communication 
     expressly advocates a vote for or against a candidate); or
       ``(iv) any public communication made by means of any 
     broadcast, cable, or satellite communication.
       ``(B) Exception for certain administrative activities.--The 
     term `Federal election activity' does not include any 
     activity relating to establishment, administration, or 
     solicitation costs of a political committee established and 
     maintained by a national political party, so long as the 
     funds used to carry out the activity are derived from funds 
     or payments made to the committee which are segregated and 
     used exclusively to defray the costs of such activities.
       ``(2) Generic campaign activity.--The term `generic 
     campaign activity' means any activity that does not mention, 
     depict, or otherwise promote a clearly identified Federal 
     candidate.
       ``(3) Public communication.--The term `public 
     communication' means a communication by means of any 
     broadcast, cable, or satellite communication, newspaper, 
     magazine, outdoor advertising facility, or direct mail.
       ``(4) Direct mail.--The term `direct mail' means a mailing 
     by a commercial vendor or any mailing made from a commercial 
     list.''.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

     SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

       (a) Contributions by Committees to National Parties.--
     Section 315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is 
     amended by striking ``$15,000'' and inserting ``$30,000''.
       (b) Aggregate Annual Limit on Contributions by 
     Individuals.--Section 315(a)(3) of such Act (2 U.S.C. 
     441a(a)(3)) is amended by striking ``$25,000'' and inserting 
     ``$37,500''.

     SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE 
                   PARTIES.

       (a) Contributions by Individuals.--Section 315(a)(1) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) 
     is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.
       (b) Contributions by Committees.--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) in subparagraph (C)--
       (A) by inserting ``(other than a committee described in 
     subparagraph (D))'' after ``committee''; and
       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(D) to a political committee established and maintained 
     by a State committee of a political party in any calendar 
     year which, in the aggregate, exceed $10,000.''.

     SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER 
                   AGGREGATE ANNUAL LIMIT ON INDIVIDUAL 
                   CONTRIBUTIONS.

       Section 315(a)(3) of the Federal Election Campaign Act of 
     1971 (2 U.S.C. 441(a)(3)) is amended--
       (1) by striking ``(3)'' and inserting ``(3)(A)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Subparagraph (A) shall not apply with respect to any 
     contribution made to any political committee established and 
     maintained by a national political party which is not the 
     authorized political committee of any candidate.''.

     SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS 
                   PRODUCED AND DISTRIBUTED BY PARTIES FROM 
                   TREATMENT AS CONTRIBUTIONS AND EXPENDITURES.

       (a) Treatment as Contributions.--Section 301(8)(B)(x) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(8)(B)(x)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.
       (b) Treatment as Expenditures.--Section 301(9)(B)(viii) of 
     the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(9)(B)(viii)) is amended by striking ``a State or local 
     committee of a political party of the costs of'' and 
     inserting ``a national, State, or local committee of a 
     political party of the costs of producing and distributing''.

     SEC. 205. INDEXING.

       Section 315(c) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 441a(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking the second and third sentences;
       (B) by inserting ``(A)'' before ``At the beginning''; and
       (C) by adding at the end the following:
       ``(B) Except as provided in subparagraph (C), in any 
     calendar year after 2002--
       ``(i) a limitation established by subsections (a), (b), 
     (d), or (h) shall be increased by the percent difference 
     determined under subparagraph (A);
       ``(ii) each amount so increased shall remain in effect for 
     the calendar year; and
       ``(iii) if any amount after adjustment under clause (i) is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.
       ``(C) In the case of limitations under subsections (a) and 
     (h), increases shall only be made in odd-numbered years and 
     such increases shall remain in effect for the 2-year period 
     beginning on the first day following the date of the last 
     general election in the year preceding the year in which the 
     amount is increased and ending on the date of the next 
     general election.''; and
       (2) in paragraph (2)(B), by striking ``means the calendar 
     year 1974'' and inserting ``means--
       ``(i) for purposes of subsections (b) and (d), calendar 
     year 1974; and
       ``(ii) for purposes of subsections (a) and (h), calendar 
     year 2001''.

     SEC. 206. PERMITTING NATIONAL PARTIES TO ESTABLISH ACCOUNTS 
                   FOR MAKING EXPENDITURES IN EXCESS OF LIMITS ON 
                   BEHALF OF CANDIDATES FACING WEALTHY OPPONENTS.

       (a) Establishment of Accounts.--Section 315(d) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is 
     amended by adding at the end the following new paragraph:
       ``(4)(A) Subject to subparagraph (B), the national 
     committee of a political party may make expenditures in 
     connection with the general election campaign of a candidate 
     for Federal office (other than a candidate for President) who 
     is affiliated with such party in an amount in excess of the 
     limit established under paragraph (3) if--
       ``(i) the candidate's opponent in the general election 
     campaign makes expenditures of personal funds in connection 
     with the campaign in an amount in excess of $100,000 (as 
     provided in the notifications submitted under section 
     304(a)(6)(B)); and
       ``(ii) the expenditures are made from a separate account of 
     the party used exclusively for making expenditures pursuant 
     to this paragraph.
       ``(B) The amount of expenditures made in accordance with 
     subparagraph (A) by the national committee of a political 
     party in connection with the general election campaign of a 
     candidate may not exceed the amount of expenditures of 
     personal funds made by the candidate's opponent in connection 
     with the campaign (as provided in the notifications submitted 
     under section 304(a)(6)(B)).''.
       (b) Waiver of Limits on Contributions to Accounts.--Section 
     315(a) of such Act (2 U.S.C. 441a(a)) is amended by adding at 
     the end the following new paragraph:
       ``(9) The limitations imposed by paragraphs (1)(B), (2)(B), 
     and (3) shall not apply with respect to contributions made to 
     the national committee of a political party which are 
     designated by the donor to be deposited solely into the 
     account established by the party under subsection (d)(4).''.
       (c) Notification of Expenditures of Personal Funds.--
     Section 304(a)(6) of such Act (2 U.S.C. 434(a)(6)) is 
     amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B)(i) The principal campaign committee of a candidate 
     (other than a candidate for President) shall submit the 
     following notifications relating to expenditures of personal 
     funds by such candidate (including contributions by the 
     candidate or the candidate's spouse to such committee and 
     funds derived from loans made by the candidate or the 
     candidate's spouse to such committee):
       ``(I) A notification of the first such expenditure (or 
     contribution) by which the aggregate amount of personal funds 
     expended (or contributed) with respect to an election exceeds 
     $100,000.
       ``(II) After the notification is made under subclause (I), 
     a notification of each such subsequent expenditure (or 
     contribution) which, taken together with all such subsequent 
     expenditures (and contributions) in any amount not included 
     in the most recent report under this subparagraph, totals 
     $5,000 or more.

[[Page 1146]]

       ``(ii) Each of the notifications submitted under clause 
     (i)--
       ``(I) shall be submitted not later than 24 hours after the 
     expenditure or contribution which is the subject of the 
     notification is made;
       ``(II) shall include the name of the candidate, the office 
     sought by the candidate, and the date of the expenditure or 
     contribution and amount of the expenditure or contribution 
     involved; and
       ``(III) shall include the total amount of all such 
     expenditures and contributions made with respect to the same 
     election as of the date of expenditure or contribution which 
     is the subject of the notification.''.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

     SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS 
                   BROADCAST PRIOR TO ELECTION.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434) is amended by adding at the end the following new 
     subsection:
       ``(e) Disclosure of Information on Certain Communications 
     Broadcast Prior to Elections.--
       ``(1) In general.--Any person who makes a disbursement for 
     a communication described in paragraph (3) shall, not later 
     than 24 hours after making the disbursement, file with the 
     Commission a statement containing the information required 
     under paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of the disbursement.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Communications described.--
       ``(A) In general.--A communication described in this 
     paragraph is any communication--
       ``(i) which is disseminated to the public by means of any 
     broadcast, cable, or satellite communication during the 120-
     day period ending on the date of a Federal election; and
       ``(ii) which mentions a clearly identified candidate for 
     such election (by name, image, or likeness).
       ``(B) Exception.--A communication is not described in this 
     paragraph if--
       ``(i) the communication appears in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, unless such facilities are owned 
     or controlled by any political party, political committee, or 
     candidate; or
       ``(ii) the communication constitutes an expenditure under 
     this Act.
       ``(4) Coordination with other requirements.--Any 
     requirement to file a statement under this subsection shall 
     be in addition to any other reporting requirement under this 
     Act.
       ``(5) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

     SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS 
                   COMMUNICATIONS.

       Section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434), as amended by section 301, is further amended by 
     adding at the end the following new subsection:
       ``(f) Disclosure of Information on Targeted Mass 
     Communications.--
       ``(1) In general.--Any person who makes a disbursement for 
     targeted mass communications in an aggregate amount in excess 
     of $50,000 during any calendar year shall, within 24 hours of 
     each disclosure date, file with the Commission a statement 
     containing the information described in paragraph (2).
       ``(2) Contents of statement.--Each statement required to be 
     filed under this subsection shall be made under penalty of 
     perjury and shall contain the following information:
       ``(A) The identification of the person making the 
     disbursement, of any individual or entity sharing or 
     exercising direction or control over the activities of such 
     person, and of the custodian of the books and accounts of the 
     person making the disbursement.
       ``(B) The principal place of business and phone number of 
     the person making the disbursement, if not an individual.
       ``(C) The amount of each such disbursement of more than 
     $200 made by the person during the period covered by the 
     statement and the identification of the person to whom the 
     disbursement was made.
       ``(D) The clearly identified candidate or candidates to 
     which the communication pertains and the names (if known) of 
     the candidates identified or to be identified in the 
     communication.
       ``(E) The text of the communication involved.
       ``(3) Targeted mass communication defined.--
       ``(A) In general.--In this subsection, the term `targeted 
     mass communication' means any communication--
       ``(i) which is disseminated during the 120-day period 
     ending on the date of a Federal election;
       ``(ii) which refers to or depicts a clearly identified 
     candidate for such election (by name, image, or likeness); 
     and
       ``(iii) which is targeted to the relevant electorate.
       ``(B) Targeting to relevant electorate.--
       ``(i) Broadcast communications.--For purposes of this 
     paragraph, a communication disseminated to the public by 
     means of any broadcast, cable, or satellite communication 
     which refers to or depicts a clearly identified candidate for 
     Federal office is `targeted to the relevant electorate' if 
     the communication is disseminated by a broadcaster whose 
     audience includes--

       ``(I) a substantial number of residents of the district the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Representative in, or Delegate or Resident 
     Commissioner to, the Congress; or
       ``(II) a substantial number of residents of the State the 
     candidate seeks to represent (as determined in accordance 
     with regulations of the Commission), in the case of a 
     candidate for Senator.

       ``(ii) Other communications.--For purposes of this 
     paragraph, a communication which is not described in clause 
     (i) which refers to or depicts a clearly identified candidate 
     for Federal office is `targeted to the relevant electorate' 
     if--

       ``(I) more than 10 percent of the total number of intended 
     recipients of the communication are members of the electorate 
     involved with respect to such Federal office; or
       ``(II) more than 10 percent of the total number of members 
     of the electorate involved with respect to such Federal 
     office receive the communication.

       ``(C) Exceptions.--The term `targeted mass communication' 
     does not include--
       ``(i) a communication appearing in a news story, 
     commentary, or editorial distributed through the facilities 
     of any broadcasting station, newspaper, magazine, or other 
     periodical publication, unless such facilities are owned or 
     controlled by any political party, political committee, or 
     candidate;
       ``(ii) a communication made by any membership organization 
     (including a labor organization) or corporation solely to its 
     members, stockholders, or executive or administrative 
     personnel, if such membership organization or corporation is 
     not organized primarily for the purpose of influencing the 
     nomination for election, or election, of any individual to 
     Federal office; or
       ``(iii) a communication which constitutes an expenditure 
     under this Act.
       ``(4) Disclosure date.--For purposes of this subsection, 
     the term `disclosure date' means--
       ``(A) the first date during any calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000; and
       ``(B) any other date during such calendar year by which a 
     person has made disbursements for targeted mass 
     communications aggregating in excess of $50,000 since the 
     most recent disclosure date for such calendar year.
       ``(5) Coordination with other requirements.--Any 
     requirement to report under this subsection shall be in 
     addition to any other reporting requirement under this Act.
       ``(6) Clarification of treatment of vendors.--A person 
     shall not be considered to have made a disbursement for a 
     communication under this subsection if the person made the 
     disbursement solely as a vendor acting pursuant to a 
     contractual agreement with the person responsible for 
     sponsoring the communication.''.

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on the 
     date of the enactment of this Act.

                               H.R. 2356

                             Offered By:__

                            [Ney substitute]

       Amendment No. 47: Add at the end title II the following new 
     subtitle:

   Subtitle C--Exemption of Communications Pertaining to the Second 
                     Amendment of the Constitution

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) The Second Amendment to the United States Constitution 
     protects the right of individual persons to keep and bear 
     arms.
       (2) There are more than 60,000,000 gun owners in the United 
     States.
       (3) The Second Amendment to the Constitution of the United 
     States protects the right of Americans to carry firearms in 
     defense of themselves and others.
       (4) The United States Court of Appeals in U.S. v. Emerson 
     reaffirmed the fact that the

[[Page 1147]]

     right to keep and bear arms is an individual right protected 
     by the Constitution.
       (5) Americans who are concerned about threats to their 
     ability to keep and bear arms have the right to petition 
     their government.
       (6) The Supreme Court, in U.S. v. Cruikshank (92 U.S. 542, 
     1876) recognized that the right to arms preexisted the 
     Constitution. The Court stated that the right to arms ``is 
     not a right granted by the Constitution. Neither is it in any 
     manner dependent upon that instrument for its existence.''.
       (7) In Beard v. United States (158 U.S. 550, 1895) the 
     Court approved the common-law rule that a person ``may repel 
     force by force'' in self-defense, and concluded that when 
     attacked a person ``was entitled to stand his ground and meet 
     any attack made upon him with a deadly weapon, in such a way 
     and with such force'' as needed to prevent ``great bodily 
     injury or death''. The laws of all 50 states, and the 
     constitutions of most States, recognize the right to use 
     armed force in self-defense.
       (8) In order to protect Americans' constitutional rights 
     under the Second Amendment, the First Amendment provides the 
     ability for citizens to address the Government.
       (9) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (10) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (11) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (12) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (13) Citizens who have an interest in issues about or 
     related to the Second Amendment of the Constitution have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communications in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (14) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning the right to keep and bear arms to their elected 
     officials and the general public.
       (15) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO THE 
                   SECOND AMENDMENT OF THE CONSTITUTION.

       None of the restrictions or requirements contained in this 
     title shall apply to any form or mode of communication to the 
     public that consists of information or commentary regarding 
     the statements, actions, positions, or voting records of any 
     person who holds congressional or other Federal office, or 
     who is a candidate for congressional or other Federal office, 
     on any matter pertaining to the Second Amendment.

                    [Ney Substitute] Offered By: __

       Amendment No. 48: Add at the end of title II the following 
     new subtitle:

    Subtitle C--Exemption of Communications Pertaining to Veterans, 
                     Military Personnel, or Seniors

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 42,000,000 men and women have served in the 
     United States Armed Forces from the Revolution onward and 
     more than 25 million are still living. Living veterans and 
     their families, plus the living dependents of deceased 
     veterans, constitute a significant part of the present United 
     States population.
       (2) American veterans are black and they are white; they 
     are of every race and ethnic heritage. They are men, and they 
     are women. They are Christians, they are Muslims, they are 
     Jews. They are fathers, mothers, sisters, brothers, sons and 
     daughters. They are neighbors, down the street or right next 
     door. They are teachers in our schools, they are factory 
     workers. They are Americans living today who served in the 
     armed services, and they are the more than 1,000,000 who have 
     died in America's wars.
       (3) America's veterans are men and women who have fought to 
     protect the United States against foreign aggressors as 
     Soldiers, Sailors, Airmen, Coast Guardsmen and Marines. The 
     members of our elite organization are those who have 
     discharged their very special obligation of citizenship as 
     servicemen and women, and who today continue to expend great 
     time, effort and energy in the service of their fellow 
     veterans and their communities.
       (4) There is a bond joining every veteran from every branch 
     of the service. Whether drafted or enlisted, commissioned or 
     noncommissioned, each took an oath, lived by a code, and 
     stood ready to fight and die for their country.
       (5) American men and women in uniform risk their lives on a 
     daily basis to defend our freedom and democracy. Americans 
     have always believed that there are values worth fighting 
     for--values and liberties upon which America was founded and 
     which we have carried forward for more than 225 years, that 
     men and women of this great nation gave their lives to 
     preserve.
       (6) It is the sacrifice borne by generations of American 
     veterans that has made us strong and has rendered us the 
     beacon of freedom guiding the course of nations throughout 
     the world. American veterans have fought for freedom for 
     Americans, as well as citizens throughout the world. They 
     have helped to defend and preserve the values of freedom of 
     speech, democracy, voting rights, human rights, equal access 
     and the rights of the individual--those values felt and 
     nurtured on every continent in our world.
       (7) The freedoms and opportunities we enjoy today were 
     bought and paid for with their devotion to duty and their 
     sacrifices. We can never say it too many times: We are the 
     benefactors of their sacrifice, and we are grateful.
       (8) Of the 25,000,000 veterans currently alive, nearly 
     three of every four served during a war or an official period 
     of hostility. About a quarter of the Nation's population--
     approximately 70,000,000 people--are potentially eligible for 
     Veterans' Administration benefits and services because they 
     are veterans, family members or survivors of veterans.
       (9) The present veteran population is estimated at 
     25,600,000, as of July 1, 1997. Nearly 80 of every 100 living 
     veterans served during defined periods of armed hostilities. 
     Altogether, almost one-third of the nation's population-
     approximately 70,000,000 persons who are veterans, dependents 
     and survivors of deceased veterans--are potentially eligible 
     for Veterans' Administration benefits and services.
       (10) Care for veterans and dependents spans centuries. The 
     last dependent of a Revolutionary War veteran died in 1911; 
     the War of 1812's last dependent died in 1946; the Mexican 
     War's, in 1962.
       (11) The Veterans' Administration health care system has 
     grown from 54 hospitals in 1930, to include 171 medical 
     centers; more than 350 outpatient, community, and outreach 
     clinics; 126 nursing home care units; and 35 domiciliaries. 
     Veterans' Administration health care facilities provide a 
     broad spectrum of medical, surgical, and rehabilitative care.
       (12) World War II resulted in not only a vast increase in 
     the veteran population, but also in large number of new 
     benefits enacted by the Congress for veterans of the war. The 
     World War II GI Bill, signed into law on June 22, 1944, is 
     said to have had more impact on the American way of life than 
     any law since the Homestead Act more than a century ago.
       (13) About 2,700,000 veterans receive disability 
     compensation or pensions from VA. Also receiving Veterans' 
     Administration benefits are 592,713 widows, children and 
     parents of deceased veterans. Among them are 133,881 
     survivors of Vietnam era veterans and 295,679 survivors of 
     World War II veterans. In

[[Page 1148]]

     fiscal year 2001, Veterans' Administration planned to spend 
     $22,000,000,000 yearly in disability compensation, death 
     compensation and pension to 3,200,000 people.
       (14) Veterans' Administration manages the largest medical 
     education and health professions training program in the 
     United States. Veterans' Administration facilities are 
     affiliated with 107 medical schools, 55 dental schools and 
     more than 1,200 other schools across the country. Each year, 
     about 85,000 health professionals are trained in Veterans' 
     Administration medical centers. More than half of the 
     physicians practicing in the United States have had part of 
     their professional education in the Veterans' Administration 
     health care system.
       (15) 75 percent of Veterans' Administration researchers are 
     practicing physicians. Because of their dual roles, Veterans' 
     Administration research often immediately benefits patients. 
     Functional electrical stimulation, a technology using 
     controlled electrical current to activate paralyzed muscles, 
     is being developed at Veterans' Administration clinical 
     facilities and laboratories throughout the country. Through 
     this technology, paraplegic patients have been able to stand 
     and, in some instances, walk short distances and climb 
     stairs. Patients with quadriplegia are able to use their 
     hands to grasp objects.
       (16) There are more than 35,000,000 persons in the United 
     States aged 65 and over.
       (17) Seniors are a diverse population, each member having 
     his or her own political and economic issues.
       (18) Seniors and their families have many important issues 
     for which they seek congressional action. Some of these 
     issues include, but are not limited to, health care, Social 
     Security, and taxes.
       (19) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (20) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (21) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (22) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (23) Citizens who have an interest in issues about or 
     related to veterans, military personnel, seniors, and their 
     families have the Constitutional right to criticize or praise 
     their elected officials individually or collectively as a 
     group. Communications in the form of criticism or praise of 
     elected officials is preciously protected as free speech 
     under the First Amendment of the Constitution of the United 
     States.
       (24) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning veterans, military personnel, seniors, and their 
     families to their elected officials and the general public.
       (25) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO 
                   VETERANS, MILITARY PERSONNEL, OR SENIORS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to veterans, military personnel, or senior 
     citizens, or to the immediate family members of veterans, 
     military personnel, or senior citizens.

                               H.R. 2356

                             Offered By: __

                            [Ney Substitute]

       Amendment No. 49: Amend section 402 to read as follows:

     SEC. 402. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act shall take 
     effect February 14, 2002.
       (b) Transition Rule for Spending of Funds by National 
     Parties.--If a national committee of a political party 
     described in section 323(a)(1) of the Federal Election 
     Campaign Act of 1971 (as added by section 101(a)), including 
     any person who is subject to such section, has received funds 
     described in such section prior to the effective date 
     described in subsection (a) which remain unexpended as of 
     such date, the committee shall return the funds on a pro rata 
     basis to the persons who provided the funds to the committee.

                               H.R. 2356

                             Offered By: __

                            [Ney Substitute]

       Amendment No. 50: Add at the end of title II the following 
     new subtitle:

Subtitle C--Exemption of Communications Pertaining to Workers, Farmers, 
                       Families, and Individuals

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) There are approximately 138 million people employed in 
     the United States.
       (2) Thousands of organizations and associations represent 
     these employed persons and their employers in numerous forms 
     and forums, not least of which is by participating in our 
     electoral and political system in a number of ways, including 
     informing citizens of key votes that affect their common 
     interests, criticizing and praising elected officials for 
     their position on issues, contributing to candidates and 
     political parties, registering voters, and conducting get-
     out-the-vote activities.
       (3) The rights of American workers to bargain collectively 
     are protected by their First Amendment to the Constitution 
     and by provisions in the National Labor Relations Act. 
     Federal law guarantees the rights of workers to choose 
     whether to bargain collectively through a union.
       (4) Fourteen percent of the American workforce has chosen 
     to affiliate with a labor union. Federal law allows workers 
     and unions the opportunity to combine strength and to work 
     together to seek to improve the lives of America's working 
     families, bring fairness and dignity to the workplace and 
     secure social and economic equity in our nation.
       (5) Nearly three quarters of all United States business 
     firms have no payroll. Most are self-employed persons 
     operating unincorporated businesses, and may or may not be 
     the owner's principal source of income.
       (6) Minorities owned fewer than 7 percent of all United 
     States firms, excluding C corporations, in 1982, but this 
     share soared to about 15 percent by 1997. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (7) In 1999, women made up 46 percent of the labor force. 
     The labor force participation rate of American women was the 
     highest in the world.
       (8) Labor/Worker unions represent 16 million working women 
     and men of every race and ethnicity and from every walk of 
     life.
       (9) In recent years, union members and their families have 
     mobilized in growing numbers. In the 2000 election, 26 
     percent of the nation's voters came from union households.
       (10) According to the 2000 census, total United States 
     families were totaled at over 105 million.
       (11) In 2000, there were 8.7 million African American 
     families.
       (12) Asians have larger families than other groups. For 
     example, the average Asian family size is 3.6 persons, as 
     opposed to an average Caucasian family of 3.1 persons.
       (13) American farmers, ranchers, and agricultural managers 
     direct the activities of the world's largest and most 
     productive agricultural sectors. They produce enough food and 
     fiber to meet the needs of the United States and produce a 
     surplus for export.
       (14) About 17 percent of raw United States agricultural 
     products are exported yearly,

[[Page 1149]]

     including 83 million metric tons of cereal grains, 1.6 
     billion pounds of poultry, and 1.4 million metric tons of 
     fresh vegetables.
       (15) One-fourth of the world's beef and nearly one-fifth of 
     the world's grain, milk, and eggs are produced in the United 
     States.
       (16) With 96 percent of the world's population living 
     outside our borders, the world's most productive farmers need 
     access to international markets to compete.
       (17) Every State benefits from the income generated from 
     agricultural exports. 19 States have exports of $1 billion or 
     more.
       (18) America's total on United States exports is $49.1 
     billion and the number of imports is $37.5 billion.
       (19) By itself, farming-production agriculture-contributed 
     $60.4 billion toward the national GDP (Gross Domestic 
     Product).
       (20) Farmers and ranchers provide food and habitat for 75 
     percent of the Nation's wildlife.
       (21) More than 23 million jobs--17 percent of the civilian 
     workforce--are involved in some phase of growing and getting 
     our food and clothing to us. America now has fewer farmers, 
     but they are producing now more than ever before.
       (22) Twenty-two million American workers process, sell, and 
     trade the Nation's food and fiber. Farmers and ranchers work 
     with the Department of Agriculture to produce healthy crops 
     while caring for soil and water.
       (23) By February 8, the 39th day of 2002, the average 
     American has earned enough to pay for their family's food for 
     the entire year. In 1970 it took 12 more days than it does 
     now to earn a full food pantry for the year. Even in 1980 it 
     took 10 more days--49 total days--of earning to put a year's 
     supply of food on the table.
       (24) Farmers are facing the 5th straight year of the lowest 
     real net farm income since the Great Depression. Last 
     October, prices farmers received made their sharpest drop 
     since United States Department of Agriculture began keeping 
     records 91 years ago. During this same period the cost of 
     production has hit record highs.
       (25) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (26) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (27) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (28) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people' ''.
       (29) Citizens who have an interest in issues about or 
     related to their lives have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (30) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy.
       (31) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO WORKERS, 
                   FARMERS, FAMILIES, AND INDIVIDUALS.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to any individual.

                               H.R. 2356

                             Offered By: __

                            [Ney Substitute]

       Amendment No. 51: Add at the end title II the following new 
     subtitle:

Subtitle C--Exemption of Communications Pertaining to Civil Rights and 
                      Issues Affecting Minorities

     SEC. 221. FINDINGS.

       Congress finds the following:
       (1) More than 70 million people in the United States belong 
     to a minority race.
       (2) More than 34 million people in the United States are 
     African American, 35 million are Hispanic or Latino, 10 
     million are Asian, and 2 million are American Indian or 
     Alaska Native.
       (3) Minorities account for around 24 percent of the U.S. 
     workforce.
       (4) Minorities, who owned fewer than 7 percent of all U.S. 
     firms in 1982, now own more than 15 percent. Minorities owned 
     more than 3 million businesses in 1997, of which 615,222 had 
     paid employees, generated more than $591 billion in revenues, 
     created more than 4.5 million jobs, and provided about $96 
     billion in payroll to their workers.
       (5) Self-employment as a share of each group's 
     nonagricultural labor force (averaged over the 1991-1999 
     decade) was White, 9.7 percent; African American, 3.8 
     percent; American Indian, Eskimo, or Aleut, 6.4 percent; and 
     Asian or Pacific Islander, 10.1 percent.
       (6) Of U.S. businesses, 5.8 percent were owned by Hispanic 
     Americans, 4.4 percent by Asian Americans, 4.0 percent by 
     African Americans, and 0.9 percent by American Indians.
       (7) Of the 4,514,699 jobs in minority-owned businesses in 
     1997, 48.8 percent were in Asian-owned firms, 30.8 percent in 
     Hispanic-owned firms, 15.9 percent in African American-owned 
     firms, and 6.6 percent in American Native-owned firms.
       (8) Minority-owned firms had about $96 billion in payroll 
     in 1997. The average payroll per employee was roughly $21,000 
     in the major minority groups and ranged from just under 
     $15,000 to just over $27,000 in various subgroups of the 
     minority population.
       (9) African Americans were the only race or ethnic group to 
     show an increase in voter participation in congressional 
     elections, increasing their presence at the polls from 37 
     percent in 1994 to 40 percent in 1998. Nationwide, overall 
     turnout by the voting-age population was down from 45 percent 
     in 1994 to 42 percent in 1998.
       (10) In 2000, there were 8.7 million African American 
     families. The United States had 96,000 African American 
     engineers, 41,000 African American physicians and 47,000 
     African American lawyers in 1999.
       (11) The number of Asians and Pacific Islanders voting in 
     congressional elections increased by 366,000 between 1994 and 
     1998.
       (12) Businesses owned by Asians and Pacific Islanders made 
     up 4 percent of the nation's 20.8 million nonfarm businesses.
       (13) Asians tend to have larger families--the average 
     family size is 3.6 persons, as opposed to an average 
     Caucasian family of 3.1 persons.
       (14) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''.
       (15) The Supreme Court recognized and emphasized the 
     importance of free speech rights in Buckley v. Valeo, where 
     it stated, ``A restriction on the amount of money a person or 
     group can spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.

[[Page 1150]]

       (16) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (17) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (18) Citizens who have an interest in issues about or 
     related to civil rights have the Constitutional right to 
     criticize or praise their elected officials individually or 
     collectively as a group. Communications in the form of 
     criticism or praise of elected officials is preciously 
     protected as free speech under the First Amendment of the 
     Constitution of the United States.
       (19) This title contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     concerning civil rights to their elected officials and the 
     general public.
       (20) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 222. EXEMPTION FOR COMMUNICATIONS PERTAINING TO CIVIL 
                   RIGHTS AND ISSUES AFFECTING MINORITIES.

       None of the restrictions or requirements contained in this 
     title or the amendments made by this title shall apply to any 
     form or mode of communication to the public that consists of 
     information or commentary regarding the statements, actions, 
     positions, or voting records of any individual who holds 
     congressional or other Federal office, or who is a candidate 
     for congressional or other Federal office, on any matter 
     pertaining to civil rights and issues affecting minorities.

                               H.R. 2356

                             Offered By: __

                            [Ney Substitute]

       Amendment No. 52: Add at the end the following title:

          TITLE VI--NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS

     SEC. 601. FINDINGS.

       Congress finds the following:
       (1) The First Amendment to the United States Constitution 
     states that, ``Congress shall make no law respecting an 
     establishment of religion, or prohibiting the free exercise 
     thereof; or abridging the freedom of speech, or of the press; 
     or of the right of the people to peaceably assemble, and to 
     petition the Government for a redress of grievances.''
       (2) The First Amendment affords the broadest protection to 
     such political expression in order ``to assure [the] 
     unfettered interchange of ideas for the bringing about of 
     political and social changes desired by the people. Roth v. 
     United States, 354 U.S. 476, 484 (1957).
       (3) According to Mills v. Alabama, 384 U.S. 214, 218 
     (1966), there is practically universal agreement that a major 
     purpose of that Amendment was to protect the free discussion 
     of governmental affairs, ``...of course including[ing] 
     discussions of candidates...''.
       (4) According to New York Times Co. v. Sullivan, 376 U.S. 
     254, 270 (1964), the First Amendment reflects our ``profound 
     national commitment to the principle that debate on public 
     issues should be uninhibited, robust, and wide-open''. In a 
     republic where the people are sovereign, the ability of the 
     citizenry to make informed choices among candidates for 
     office is essential, for the identities of those who are 
     elected will inevitably shape the course that we follow as a 
     nation.
       (5) The First Amendment protects political association as 
     well as political expression. The constitutional right of 
     association explicated in NAACP v. Alabama, 357 U.S. 449, 460 
     (1958), stemmed from the Court's recognition that 
     ``[e]ffective advocacy of both public and private points of 
     view, particularly controversial ones, is undeniably enhanced 
     by group association.'' Subsequent decisions have made clear 
     that the First and Fourteenth Amendments guarantee ``freedom 
     to associate with others for the common advancement of 
     political beliefs and ideas,'' a freedom that encompasses 
     ```[t]he right to associate with the political party of one's 
     choice.''' Kusper v. Pontikes, 414 U.S. 51, 56, 57, quoted in 
     Cousins v. Wigoda, 419 U.S. 477, 487 (1975).
       (6) In Buckley v. Valeo, the Supreme Court stated, ``A 
     restriction on the amount of money a person or group can 
     spend on political communication during a campaign 
     necessarily reduces the quantity of expression by restricting 
     the number of issues discussed, the depth of their 
     exploration, and the size of the audience reached. This is 
     because virtually every means of communicating ideas in 
     today's mass society requires the expenditure of money. The 
     distribution of the humblest handbill or leaflet entails 
     printing, paper, and circulation costs. Speeches and rallies 
     generally necessitate hiring a hall and publicizing the 
     event. The electorate's increasing dependence on television, 
     radio, and other mass media for news and information has made 
     these expensive modes of communication indispensable 
     instruments of effective political speech.''.
       (7) In response to the relentlessly repeated claim that 
     campaign spending has skyrocketed and should be legislatively 
     restrained, the Buckley Court stated that the First Amendment 
     denied the government the power to make that determination: 
     ``In the free society ordained by our Constitution, it is not 
     the government but the people--individually as citizens and 
     candidates and collectively as associations and political 
     committees--who must retain control over the quantity and 
     range of debate on public issues in a political campaign.''.
       (8) In Buckley, the Court also stated, ``The concept that 
     government may restrict the speech of some elements of our 
     society in order to enhance the relative voice of others is 
     wholly foreign to the First Amendment, which was designed `to 
     secure the widest possible dissemination of information from 
     diverse and antagonistic sources,' and `to assure unfettered 
     exchange of ideas for the bringing about of political and 
     societal changes desired by the people'''.
       (9) The courts of the United States have consistently 
     reaffirmed and applied the teachings of Buckley, striking 
     down such government overreaching. The courts of the United 
     States have consistently upheld the rights of the citizens of 
     the United States, candidates for public office, political 
     parties, corporations, labor unions, trade associations, non-
     profit entities, among others. Such decisions provide a very 
     clear line as to what the government can and cannot do with 
     respect to the regulation of campaigns. See Federal Election 
     Comm'n v. Massachusetts Citizens for Life, Inc., 479 U.S. 238 
     (1986); Federal Election Comm'n v. National Conservative 
     Political Action Comm., 470 U.S. 480 (1985); California 
     Medical Assn. V. Federal Election Comm'n, 453 U.S. 182 
     (1981).
       (10) The FEC has lost time and time again in court 
     attempting to move away from the express advocacy bright line 
     test of Buckley v. Valeo. In fact, in some cases, the FEC has 
     had to pay fees and costs because the theory is frivolous. 
     See FEC v. Christian Action Network, 110 F.3d 1049 (4th Cir. 
     1997), aff'g 894 F. Supp. 946 (W.D.Va. 1995); Maine Right to 
     Life Comm. v. FEC, 914 F. Supp. 8 (D.Me. 1996), aff'd 98 F.3d 
     1 (1st Cir. 1996), cert. denied, 118 S. Ct. 52 (1997); 
     Clifton v. FEC, 114 F.3d 1309 (1st Cir. 1997); Faucher v. 
     FEC, 928 F.2d 468, 472 (1st Cir.), cert. denied, 502 U.S. 820 
     (1991); FEC v. Colorado Republican Federal Campaign Comm., 
     839 F. Supp. 1448 (D. Co.), rev'd on other grounds, 59 F.3d 
     1015 (10th Cir.), vacated on other grounds, 116 S. Ct. 2309 
     (1996); FEC v. Central Long Island Tax Reform Immediately 
     Comm., 616 F.2d 45, 53 (2d Cir. 1980); Minnesota Citizens 
     Concerned for Life, Inc. v. FEC, 936 F. Supp. 633 (D. Minn. 
     1996), aff'd 113 F.3d 129 (8th Cir. 1997), reh'g. en banc 
     denied, 1997 U.S. App. LEXIS 17528; West Virginians for Life, 
     Inc. v. Smith, 960 F. Supp. 1036, 1039 (S.D.W.Va. 1996); FEC 
     v. Survival Education Fund, 1994 U.S. Dist. Lexis 210 
     (S.D.N.Y. 1994), aff'd in part and rev'd in part, 65 F.3d 285 
     (2nd Cir. 1995); FEC v. National Organization for Women, 713 
     F. Supp. 428, 433-34 (D.D.C. 1989); FEC v. American 
     Federation of State, County and Municipal Employees, 471 F. 
     Supp. 315, 316-17 (D.D.C. 1979). Even the FEC abandoned the 
     ``electioneering communication'' standard soon after the 1996 
     election due to its vagueness.
       (11) The courts have also repeatedly upheld the rights of 
     political party committees. As Justice Kennedy noted: ``The 
     central holding in Buckley v. Valeo is that spending money on 
     one's own speech must be permitted, and that this is what 
     political parties do when they make expenditures FECA 
     restricts.'' Colo. Republican Fed. Campaign Comm. v. Federal 
     Election Comm'n, 518 U.S. 604, 627 (1996) (J. Kennedy, 
     concurring). Justice Thomas added: ``As applied in the 
     specific context of campaign funding by political parties, 
     the anticorruption rationale loses its force. See Nahra, 
     Political Parties and the Campaign Finance Laws: Dilemmas, 
     Concerns and Opportunities, 56 Ford L. Rev. 53, 105-106 
     (1987). What could it mean for a party to `corrupt' its 
     candidates or to exercise `coercive' influence over him? The 
     very aim of a political party is to influence its candidate's 
     stance on issues and, if the candidate takes office or is 
     reelected, his votes. When political parties achieve that 
     aim, that achievement does not, in my view, constitute `a 
     subversion of the political process.' Federal Election Comm'n 
     v. NCPAC, 470 U.S. at 497. For instance, if the

[[Page 1151]]

     Democratic Party spends large sums of money in support of a 
     candidate who wins, takes office, and then implements the 
     Party's platform, that is not corruption; that is successful 
     advocacy of ideas in the political marketplace and 
     representative government in a party system. To borrow a 
     phrase from Federal Election Comm'n v. NCPAC, `the fact that 
     candidates and elected officials may alter or reaffirm their 
     own positions on issues in response to political messages 
     paid for by [political groups] can hardly be called 
     corruption, for one of the essential features of democracy is 
     the presentation of the electorate of varying points of 
     view.' Id. at 498. Cf. Federal Election Comm'n v. MCFL, 479 
     U.S. at 263 (suggesting that `[v]oluntary political 
     associations do not...present the specter of corruption').''. 
     Colo. Republican Fed. Campaign Comm. v. Federal Election 
     Comm'n, 518 U.S. 604, 647 (1996) (J. Thomas, concurring). 
     Justice Thomas continued: ``The structure of political 
     parties is such that the theoretical danger of those groups 
     actually engaging in quid pro quos with candidates is 
     significantly less than the threat of individuals or other 
     groups doing so. See Nahra, Political Parties and the 
     Campaign Finance Laws: Dilemmas, Concerns and Opportunities, 
     56 Ford L. Rev. 53, 97-98 (1987) (citing F. Sorauf, Party 
     Politics in America 15-18 (5th ed. 1984)). American political 
     parties, generally speaking, have numerous members with a 
     wide variety of interests, features necessary for success in 
     majoritarian elections. Consequently, the influence of any 
     one person or the importance of any single issue within a 
     political party is significantly diffused. For this reason, 
     as the Party's amici argue, see Brief for Committee for Party 
     Renewal et al. as Amicus Curiae 16, campaign funds donated by 
     parties are considered to be some of `the cleanest money in 
     politics.' J. Bibby, Campaign Finance Reform, 6 Commonsense 
     1, 10 (Dec. 1983). And, as long as the Court continues to 
     permit Congress to subject individuals to limits on the 
     amount they can give to parties, and those limits are uniform 
     as to all donors, see 2 U.S.C. section 441a(a)(1), there is 
     little risk that an individual donor could use a party as a 
     conduit for bribing candidates. Id.''.
       (12) As recently as 2000, the Supreme Court reminded us 
     once again of the vital role that political parties play on 
     our democratic life, by serving as the primary vehicles for 
     the political views and voices of millions and millions of 
     Americans. ``Representative democracy in any populous unit of 
     governance is unimaginable without the ability of citizens to 
     band together in promoting the electoral candidates who 
     espouse their political views. The formation of national 
     political parties was almost concurrent with the formation of 
     the Republic itself.'' California Democratic Party v. Jones, 
     530 U.S. 567 (2000). Moreover, just last year, a Federal 
     court struck down a state law that included a so-called 
     ``soft money ban,'' which in reality was a ban on corporate 
     and union contributions to political parties--which as a 
     factual matter is correct. The Anchorage Daily News reported:
       (13) A Federal judge says corporations and unions have a 
     constitutional right to give unlimited amounts of ``soft 
     money'' to political parties, so long as none of the money is 
     used to get specific candidates elected. In a decision dated 
     June 11, U.S. District Judge James Singleton struck down a 
     section of Alaska's 1997 political contributions law that 
     barred corporations, unions and other businesses from 
     contributing any money to political candidates or parties. 
     The ban against corporate contributions to individual 
     candidates is fine, Singleton said. Public concern about the 
     corrupting influence or corporate contributions on a specific 
     candidate is legitimate and important enough to somewhat 
     limit freedom of speech and political association, the judge 
     concluded. But contributions to the noncandidate work of a 
     political party do not raise undue influence issues and 
     therefore may not be restricted, the judge concluded.
       (14) Sheila Toomey, Anchorage Daily News (June 14, 2001) 
     (reporting on Kenneth P. Jacobus, et al. vs. State of Alaska, 
     et al., No. A97-0272 (D. Alaska filed June 11, 2001).
       (15) Nor is speech any less protected by the First 
     Amendment simply because the one making the speech contacted 
     or communicated with others. For some time, the Federal 
     Election Commission held the view that such ``coordination'' 
     (an undefined term), even of communications that did not 
     contain express advocacy, somehow was problematic, and 
     subject to the limitations and prohibitions of the Act. This 
     view has been rejected by the courts. Federal Election 
     Commission v. Christian Coalition, 52 F. Supp. 2d 45 (D.D.C. 
     1999). In fact, lower Federal courts have held that even 
     political party committee limits on coordinated expenditures 
     are an unconstitutional restriction on speech. Federal 
     Election Commission v. Colo. Republican Fed. Campaign Comm., 
     213 F.3d 1221 (10th Cir. 2000). Unless a party committee's 
     expenditure is the functional equivalent of a contribution 
     (and thus not ``coordinated''), it cannot be limited. See 
     Federal Election Commission v. Colo. Republican Fed. Campaign 
     Comm., 150 L.Ed.2d 461, nt. 17, nt. 2 (J. Thomas, dissenting) 
     (2001). As a factual matter, many party committee 
     ``coordinated'' expenditures are not the functional 
     equivalent of contributions. See Amicus Curie Brief of the 
     National Republican Congressional Committee, Federal Election 
     Commission v. Colo. Republican Fed. Campaign Comm., 150 
     L.Ed.2d 461 (2001).
       (16) Commentators, legal experts and testimony in the 
     record echoes the need to be mindful of the First Amendment. 
     Whether it is the American Civil Liberties Union, see March 
     10, 2001 ACLU Letter to Senate (and all cases cited therein) 
     & June 14, 2001 ACLU testimony before the House 
     Administration Committee (and cases cited therein), or the 
     counsel to the National Right to Life Committee and the 
     Christian Coalition, see June 14, 2001 testimony of James 
     Bopp before the House Administration Committee (and cases 
     cited therein), experts across the political spectrum have 
     thoughtfully explained the need to ensure the First Amendment 
     rights of citizens of this country.
       (17) Citizens who have an interest in issues have the 
     Constitutional right to criticize or praise their elected 
     officials individually or collectively as a group. 
     Communication in the form of criticism or praise of elected 
     officials is preciously protected as free speech under the 
     First Amendment of the Constitution of the United States.
       (18) This Act contains restrictions on the rights of 
     citizens, either individually or collectively, to communicate 
     with or about their elected representatives and to the 
     general public. Such restrictions would stifle and suppress 
     individual and group advocacy pertaining to politics and 
     government--the political expression at the core of the 
     electoral process and of First Amendment freedoms--the very 
     engine of democracy. Such restrictions also hinder citizens' 
     ability to communicate their support or opposition on issues 
     to their elected officials and the general public.
       (19) Candidate campaigns and issue campaigns are the 
     primary vehicles for giving voice to popular grievances, 
     raising issues and proposing solutions. An election, and the 
     time leading up to it, is when political speech should be at 
     its most robust and unfettered.

     SEC. 602. NO RESTRICTIONS ON FIRST AMENDMENT RIGHTS.

       Notwithstanding any provision of this Act, and in 
     recognition of the First Amendment to the United States 
     Constitution, nothing in this Act or in any amendment made by 
     this Act may be construed to abridge those freedoms found in 
     that Amendment, specifically the freedom of speech or of the 
     press, or the right of people to peaceably assemble, and to 
     petition the government for a redress of grievances, 
     consistent with the rulings of the courts of the United 
     States (as provided in section 601).

                               H.R. 2356

                             Offered By: __

                            [Ney Substitute]

       Amendment No. 53: Amend section 323(b) of the Federal 
     Election Campaign Act of 1971, as proposed to be added by 
     section 101(a) of the bill, to read as follows:
       ``(b) State, District, and Local Committees.--An amount 
     that is expended or disbursed for Federal election activity 
     by a State, district, or local committee of a political party 
     (including an entity that is directly or indirectly 
     established, financed, maintained, or controlled by a State, 
     district, or local committee of a political party and an 
     officer or agent acting on behalf of such committee or 
     entity), or by an association or similar group of candidates 
     for State or local office or individuals holding State or 
     local office, shall be made from funds subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       Amend section 323(e)(3) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 101(a) of the 
     bill, to read as follows:
       ``(3) Fundraising events.--Notwithstanding paragraph (1), a 
     candidate or an individual holding Federal office may attend, 
     speak, or be a featured guest at a fundraising event for a 
     State, district, or local committee of a political party.
       Amend section 304(e)(2) of the Federal Election Campaign 
     Act of 1971, as proposed to be added by section 103(a) of the 
     bill, to read as follows:
       ``(2) Other political committees to which section 323 
     applies.--In addition to any other reporting requirements 
     applicable under this Act, a political committee (not 
     described in paragraph (1)) to which section 323(b) applies 
     shall report all receipts and disbursements made for 
     activities described in section 301(20)(A), unless the 
     aggregate amount of such receipts and disbursements during 
     the calendar year is less than $5,000.

                               H.R. 2356

                             Offered By: __

                            [Ney Substitute]

       Amendment No. 54: Insert at the end of the Act:

                    STRENGTHENING FOREIGN MONEY BAN

     SEC. __. STRENGTHENING FOREIGN MONEY BAN.

       (a) Banning All Donations to Candidates and Parties; 
     Banning Disbursements for Certain Communications.--Section 
     319 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     441e) is amended--
       (1) by striking the heading and inserting the following: 
     ``contributions and donations by foreign nationals''; and

[[Page 1152]]

       (2) by striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for--
       ``(1) a foreign national, directly or indirectly, to make--
       ``(A) a contribution or donation of money or other thing of 
     value, or to make an express or implied promise to make a 
     contribution or donation, in connection with a Federal, 
     State, or local election;
       ``(B) a contribution or donation to a committee of a 
     political party; or
       ``(C) an expenditure, independent expenditure, or 
     disbursement for a communication described in section 
     304(e)(3) or a targeted mass communication (as defined in 
     section 304(f)(3)); or
       ``(2) a person to solicit, accept, or receive a 
     contribution or donation described in subparagraph (A) or (B) 
     of paragraph (1) from a foreign national.''.
       (b) Extension of Ban in Federal Elections to All 
     Noncitizens.--Section 319(b)(2) of such Act (2 U.S.C. 
     441e(b)(2)) is amended by striking the period at the end and 
     inserting the following: ``, or in the case of an election 
     for Federal office, an individual who is not a citizen of the 
     United States or a national of the United States (as defined 
     in section 101(a)(22) of the Immigration and Nationality 
     Act).''.