[House Report 106-294]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-294

======================================================================



 
                     CAMPAIGN INTEGRITY ACT OF 1999

                                _______
                                

 August 5, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


 Mr. Thomas, from the Committee on House Administration, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1867]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on House Administration, to whom was referred 
the bill (H.R. 1867) to amend the Federal Election Campaign Act 
of 1971 to reform the financing of campaigns for elections for 
Federal office, and for other purposes, having considered the 
same, report without recommendation.

                       Purpose of the Legislation

    In order to provide the House with an opportunity for 
debate on a range of approaches to the campaign finance issue, 
the Committee is submitting without recommendation one of the 
more thoughtful measures which has garnered substantial support 
in the 105th and 106th Congresses.
    H.R. 1867 emerged in the 105th Congress as the ``bipartisan 
freshman bill'' (H.R. 2183) and was offered as the base text 
for the substitute amendment process on the floor in 1998. 
Among its featured provisions are: a ban of national party soft 
money, a ban on interstate transfers of non-federal funds, 
indexing contribution limits prospectively every four years 
starting in 1999, eliminating the coordinated expenditure 
limits for political parties, disclosure of the identity and 
cost of sponsors of broadcast ads referring to candidates by 
name once spending exceeds $25,000 a year for one or

$100,000 for all federal candidates in election years, and 
mandatory electronic filing for committees that raise over 
$50,000.

                       Summary of the Legislation


                     section-by-section description

  TITLE I--SOFT MONEY AND CONTRIBUTIONS AND EXPENDITURES OF POLITICAL 
                                PARTIES


Section 101. Banning soft money of national political parties and 
        candidates

    (a) Prohibits national party committees from raising, 
soliciting, directing, transferring or spending funds which are 
not subject to the limitations, prohibitions, and reporting 
requirements of the Act (i.e., soft money).
    (b) Prohibits federal candidates and officeholders from 
raising soft money in connection with a federal election, money 
from sources beyond federal limits and prohibitions in non-
federal elections, or soft money in connection with, or for a 
communication that identifies a federal candidate. Exempts 
solicitations of funds for an individual's non-federal campaign 
or attendance at a state or local party fundraiser in a 
candidate's home state.
    (c) Bans interstate transfers between state parties of 
funds not subject to the limitations, prohibitions, and 
reporting requirements of the Act.

Section 102. Increasing aggregate annual limit on contributions by 
        individuals to political parties

    (a) Raises aggregate annual limit to $50,000, with a 
maximum of $25,000 to parties and $25,000 to candidates and 
PACs.
    (b) Raises limit on individual donations to national 
parties to $25,000 per year.

Section 103. Repealing limitations on coordinated expenditures by 
        political parties

    (a) Repeals party coordinated expenditure limits (in 2 
U.S.C. Sec. 441a(d)).

Section 104. Increasing limit on contributions by multicandidate 
        political committees to national political parties

    (a) Increases limit on multicandidate PAC contributions to 
national parties to $20,000 per year.

                 TITLE II--INDEXING CONTRIBUTION LIMITS


Section 201. Indexing contribution limits

    (a) Indexes all contribution limits in 2001, based on price 
index increases in 1999 and 2000, and in 2005 and every fourth 
subsequent year, based on price index increases in the previous 
four years.
    (b) Requires increases to be rounded to the nearest 
multiple of $100.

    TITLE III--EXPANDING DISCLOSURE OF CAMPAIGN FINANCE INFORMATION


Section 301. Disclosing certain ``issue advocacy'' communications

    (a) Requires disclosure to the Clerk of the House or 
Secretary of the Senate concerning broadcast communications 
referring to House or Senate candidates--by name, 
representation, or likeness, once aggregate spending exceeds 
$25,000 a year for one or $100,000 for all federal candidates.
    (b) Requires reports to include amount expended for such 
communications, together with the person's address and phone 
number (or, if appropriate, the address and phone number of the 
person's principal officer).
    (c) Imposes a civil fine of not more than $50,000 for 
knowing violations of this provision.

Section 302. Requiring monthly filing of reports

    (a) Requires monthly report filing by candidate committees 
in all years and by other committees in election years.

Section 303. Requiring electronic filing for certain reports

    (a) Requires electronic disclosure by all committees with 
financial activity of at least $50,000.
    (b) Requires FEC to make available at no cost a 
standardized package of software to enable electronic filing of 
reports.

Section 304. Ending ``best efforts'' exceptions for information on 
        contributor's occupation

    (a) Ends ``best efforts'' exception for disclosure of 
occupation and employer, for itemized donations of over $200.

                        TITLE IV--EFFECTIVE DATE


Section 401. Effective date

    (a) Makes these amendments to the Act effective as of all 
elections occurring after January 2001.

               Committee Consideration of the Legislation


                       INTRODUCTION AND REFERRAL

    On May 19, 1999, Mr. Hutchinson (for himself, Mr. Hill of 
Montana, Mr. Hulshof, Mr. Brady of Texas, Mr. Moran of Kansas, 
Mr. Petri, Mr. English, Mr. Bachus and Mr. Cook) introduced the 
following bill; which was referred to the Committee on House 
Administration.

                                HEARINGS

    The Committee on House Administration held four days of a 
hearing on Campaign Reform over two months in 1999.
    On June 17, 1999, the Committee held the first day of the 
hearing on Campaign Reform. Members present: Mr. Boehner, Mr. 
Ehlers, Mr. Mica, Mr. Ewing, Mr. Hoyer, and Mr. Davis. 
Witnesses: Mr. Gilchrest testified on H.R. 593 and H.R. 594. 
Mr. Calvert testified on H.R. 1880. Mr. Sabo testified on H.R. 
1171.
    On June 29, 1999, the Committee held the second day of the 
hearing on Campaign Reform. members present: Mr. Thomas, Mr. 
Boehner, Mr. Ney, Mr. Mica, Mr. Ewing, Mr. Hoyer, Mr. Fattah, 
and Mr. Davis. Witnesses: Mr. Shays testified on H.R. 417, Mr. 
Hutchinson testified on H.R. 1867, Mr. Regula testified on H.R. 
1641, Ms. Mink testified on H.R. 399 and H.R. 400, Mr. Gillmor 
testified on H.R. 1778 (sharing time with Mr. Tanner), and Mr. 
Andrews testified on H.R. 331.
    On July 13, 1999, the Committee held the third day of the 
hearing on Campaign Reform. Members present: Mr. Boehner, Mr. 
Ney, Mr. Ewing, Mr. Hoyer, and Mr. Davis. Witnesses: Mr. Dreier 
submitted written testimony on H.R. 32, Mr. Doolittle testified 
on H.R. 1922, Mr. Burton testified on H.R. 1747, Mr. Bereuter 
testified on H.R. 69, Mr. Pitts testified on H.R. 223, Mr. 
Goodling testified on H.R. 2467, Mr. Price testified on H.R. 
227, Mr. Paul testified on H.R. 2026 and H.R. 2027, and Mr. 
Watkins testified on H.R. 696.
    On July 22, 1999, the Committee held the fourth day of the 
hearing on Campaign Reform. Members present: Mr. Thomas, Mr. 
Boehner, Mr. Ehlers, Mr. Hoyer, Mr. Fattah, and Mr. Davis. 
Witnesses: Roger Pilon, Director, Center for Constitutional 
Studies, CATO Institute; Laura Murphy, Legislative Director, 
American Civil Liberties Union; Don Simon, Acting President, 
Common Cause; Jim Miller, Author of Monopoly Politics, Former 
Director OMB; Burt Neuborne, Director, Brennan Center for Law 
and Justice; James Bopp, James Madison Center for Free Speech; 
Bob Dahl, Fair Government Foundation; Paul Sullivan, Americans 
Back in Charge Foundation; David O'Steen, Executive Director, 
National Right to Life Committee; Cheryl Perrin, Executive 
Director, Campaign for America; Amy Kauffman, Research Fellow, 
Hudson Institute; and Kathleen Hall Jamieson, Dean, the 
Annenberg School of Communication.

                                 markup

    On Monday August 2, 1999 the Committee met to mark up H.R. 
2668, H.R. 417, H.R. 1867, and H.R. 1922. The Committee 
reported H.R. 1867 without recommendation by voice vote a 
quorum being present. No amendments were offered.

             Matters Required Under the Rules of the House


                         committee record votes

    Clause 3(b) of House rule XIII requires the results of each 
record vote on an amendment or motion to report, together with 
the names of those voting for and against, to be printed in the 
committee report. No recorded votes were requested during 
consideration of H.R. 1867.

                      committee oversight findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

          oversight findings of committee on government reform

    The Committee states, with respect to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, that 
the Committee on Government Reform and Oversight did not submit 
findings or recommendations based on investigations under 
clause 4(c)(2) of rule X of the Rules of the House of 
Representatives.

                        constitutional authority

    In compliance with clause 3(d)(1) of rule XIII, the 
Committee states that Article 1, Section 4 of the U.S. 
Constitution grants Congress the authority to make laws 
governing the time, place and manner of holding Federal 
elections.

                            federal mandates

    The Committee states, with respect to section 423 of the 
Congressional Budget Act of 1974, that the bill does not 
include any significant Federal mandate.

                        preemption clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 1867 is not 
intended to preempt any state or local law.

            statement on budget authority and related items

    The bill does not provide new budget authority.

                        committee cost estimate

    Clause 3(c)(2) of rule XIII requires each committee report 
that accompanies a measure providing new budget authority, new 
spending authority, or new credit authority or changing 
revenues or tax expenditures to contain a cost estimate, as 
required by section 308(a)(1) of the Congressional Budget Act 
of 1974, as amended and, when practicable with respect to 
estimates of new budget authority, a comparison of the total 
estimated funding level for the relevant program (or programs) 
to the appropriate levels under current law.
    Clause 3(d)(2) of rule XIII requires committees to include 
their own cost estimates in certain committee reports, which 
include, when practicable, a comparison of the total estimated 
funding level for the relevant program (or programs) with the 
appropriate levels under current law.
    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office, pursuant to 
section 403 of the Congressional Budget Act of 1974.

               congressional budget office cost estimate

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974:

                                                    August 4, 1999.
Hon. William M. Thomas,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1867, the Campaign 
Integrity Act of 1999.
    If you wish further details in this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                          Dan L. Crippen, Director.
    Enclosure.

    Effective for elections held after January 2001, H.R. 1867 
would make numerous amendment to the Federal Election Campaign 
Act of 1971. It would ban the solicitation and use of ``soft 
money'' by national political parties and candidates, increase 
certain limits on contributions and expenditures, index limits 
on contributions, require additional filings by political 
committees, and require electronic filing for information for 
campaigns that spend or raise more than $50,000. Subject to the 
availability of appropriated funds, CBO estimates that 
implementing H.R. 1867 would cost the Federal Election 
Commission less than $500,000 a year.
    Because H.R. 1867 could affect the collection of fines and 
penalties from violations of campaign finance laws, pay-as-you-
go procedure would apply. CBO estimates that any change in the 
amount of penalties and fines, which are recorded as 
governmental receipts, would not be significant.
    H.R. 1867 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments. The bill would 
create new private-sector mandates, as defend in UMRA, on 
candidates, political parties, state party organizations, and 
certain individuals and advocacy groups. CBO has not yet 
completed an estimate of the cost of those mandates, but will 
provide such as estimate at a later date.
    The CBO staff contact is John R. Righter. This estimate was 
approved by Robert A. Sunshine, Deputy Assistant Director for 
Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

FEDERAL ELECTION CAMPAIGN ACT OF 1971

           *       *       *       *       *       *       *



                  organization of political committees

    Sec. 302. (a)  * * *

           *       *       *       *       *       *       *

    [(i) When the treasurer] (i)(1) Except as provided in 
paragraph (2), when the treasurer of a political committee 
shows that best efforts have been used to obtain, maintain, and 
submit the information required by this Act for the political 
committee, any report or any records of such committee shall be 
considered in compliance with this Act or chapter 95 or chapter 
96 of the Internal Revenue Code of 1954.
  (2) Paragraph (1) shall not apply with respect to information 
regarding the occupation or the name of the employer of any 
individual who makes a contribution or contributions 
aggregating more than $200 during a calendar year (as required 
to be provided under subsection (c)(3)).

           *       *       *       *       *       *       *


                                reports

    Sec. 304. (a)(1)  * * *

           *       *       *       *       *       *       *

    (2) If the political committee is the principal campaign 
committee of a candidate for the House of Representatives or 
for the Senate--
          (A) in any calendar year during which there is 
        regularly scheduled election for which such candidate 
        is seeking election, or nomination for election, the 
        treasurer shall file the following reports:
                  (i)  * * *

           *       *       *       *       *       *       *

                  [(iii) additional quarterly reports, which 
                shall be filed no 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 no later than January 31 of the following 
                calendar year; and]
                  (iii) monthly reports, which shall be filed 
                no later than the 20th day after the last day 
                of the month and shall be complete as of the 
                last day of the month, except that, in lieu of 
                filing the reports otherwise due in November 
                and December of the year, a pre-general 
                election report shall be filed in accordance 
                with clause (i), a post-general election report 
                shall be filed in accordance with clause (ii), 
                and a year end report shall be filed no later 
                than January 31 of the following calendar year.

           *       *       *       *       *       *       *

    [(4) All political committees other than authorized 
committees of a candidate shall file either--
          [(A)(i) quarterly reports, in a calendar year in 
        which a regularly scheduled general election is held, 
        which shall be filed no later than the 15th day after 
        the last day of each calendar quarter: except that the 
        report for the quarter ending on December 31 of such 
        calendar year shall be filed no later than January 31 
        of the following calendar year.
          [(ii) a pre-election report, which shall be filed no 
        later than the 12th day before (or posted by registered 
        or certified mail no later than the 15th day before) 
        any election in which the committee makes a 
        contribution to or expenditure on behalf of a candidate 
        in such election, and which shall be complete as of the 
        20th day before the election;
          [(iii) a post-general election report, which shall be 
        filed no later than the 30th day after the general 
        election and which shall be complete as of the 20th day 
        after such general election; and
          [(iv) in any other calendar year, a report covering 
        the period beginning January 1 and ending June 30, 
        which shall be filed no later than July 31 and a report 
        covering the period beginning July 1 and ending 
        December 31, which shall be filed no later than January 
        31 of the following calendar year; or
          [(B) monthly reports in all calendar years which 
        shall be filed no later than the 20th day after the 
        last day of the month and shall be complete as of the 
        last day of the month, except that, in lieu of filing 
        the reports otherwise due in November and December of 
        any year in which a regularly scheduled general 
        election is held, a pre-general election report shall 
        be filed in accordance with paragraph (2)(A)(i), a 
        post-general election report shall be filed in 
        accordance with paragraph (2)(A)(ii), and a year end 
        report shall be filed no later than January 31 of the 
        following calendar year.]
  (4)(A) In a calendar year in which a regularly scheduled 
general election is held, all political committees other than 
authorized committees of a candidate shall file--
          (i) monthly reports, which shall be filed no later 
        than the 20th day after the last day of the month and 
        shall be complete as of the last day of the month, 
        except that, in lieu of filing the reports otherwise 
        due in November and December of the year, a pre-general 
        election report shall be filed in accordance with 
        clause (ii), a post-general election report shall be 
        filed in accordance with clause (iii), and a year end 
        report shall be filed no later than January 31 of the 
        following calendar year;
          (ii) a pre-election report, which shall be filed no 
        later than the 12th day before (or posted by registered 
        or certified mail no later than the 15th day before) 
        any election in which the committee makes a 
        contribution to or expenditure on behalf of a candidate 
        in such election, and which shall be complete as of the 
        20th day before the election; and
          (iii) a post-general election report, which shall be 
        filed no later than the 30th day after the general 
        election and which shall be complete as of the 20th day 
        after such general election.
  (B) In any other calendar year, all political committees 
other than authorized committees of a candidate shall file a 
report covering the period beginning January 1 and ending June 
30, which shall be filed no later than July 31 and a report 
covering the period beginning July 1 and ending December 31, 
which shall be filed no later than January 31 of the following 
calendar year.

           *       *       *       *       *       *       *

    [(8) The requirement for a political committee to file a 
quarterly report under paragraph (2)(A)(iii) or paragraph 
(4)(A)(i) shall be waived if such committee is required to file 
a pre-election report under paragraph (2)(A)(i), or paragraph 
(4)(A)(ii) during the period beginning on the 5th day after the 
close of the calendar quarter and ending on the 15th day after 
the close of the calendar quarter.]

           *       *       *       *       *       *       *

  (11)(A) The Commission shall permit reports required by this 
Act to be filed and preserved by means of computer disk or any 
other appropriate electronic format or method, as determined by 
the Commission, except that the Commission shall require the 
reports to be filed and preserved by such means, format, or 
method, unless the aggregate amount of contributions or 
expenditures (as the case may be) reported by the committee in 
all reports filed with respect to the election involved (taking 
into account the period covered by the report) is less than 
$50,000.

           *       *       *       *       *       *       *

  (C) The Commission shall make available without charge a 
standardized package of software to enable persons filing 
reports by electronic means to meet the requirements of this 
paragraph.
  [(C)] (D) As used in this paragraph, the term ``report'' 
means, with respect to the Commission, a report, designation, 
or statement required by this Act to be filed with the 
Commission.

           *       *       *       *       *       *       *


                              enforcement

    Sec. 309. (a)  * * *

           *       *       *       *       *       *       *

    (b) Before taking any action under subsection (a) against 
any person who has failed to file a report required under 
section 304(a)(2)(A)(iii) [for the calendar quarter] for the 
month immediately preceding the election involved, or in 
accordance with section 304(a)(2)(A)(i), the Commission shall 
notify the person of such failure to file the required reports. 
If a satisfactory response is not received within 4 business 
days after the date of notification, the Commission shall, 
pursuant to section 311(a)(7), publish before theelection the 
name of the person and the report or reports such person has failed to 
file.

           *       *       *       *       *       *       *


             limitations on contributions and expenditures

    Sec. 315. (a)(1) No person shall make contributions--
          (A)  * * *

           *       *       *       *       *       *       *

          (B) to the political committees established and 
        maintained by a national political party, which are not 
        the authorized political committees of any candidate, 
        in any calendar year which, in the aggregate, exceed 
        [$20,000] $25,000; or

           *       *       *       *       *       *       *

    (2) No multicandidate political committee shall make 
contributions--
          (A)  * * *

           *       *       *       *       *       *       *

          (B) to the political committees established and 
        maintained by a national political party, which are not 
        the authorized political committees of any candidate, 
        in any calendar year, which, in the aggregate, exceed 
        [$15,000] $20,000; or

           *       *       *       *       *       *       *

    (3) No individual shall make contributions aggregating more 
than $25,000 [in any calendar year] to political committees of 
political parties, or contributions aggregating more than 
$25,000 to any other persons, in any calendar year. For 
purposes of this paragraph, any contribution made to a 
candidate in a year other than the calendar year in which the 
election is held with respect to which such contribution is 
made, is considered to be made during the calendar year in 
which such election is held.

           *       *       *       *       *       *       *

    (c)(1)  * * *

           *       *       *       *       *       *       *

    (3)(A) The amount of each limitation established under 
subsection (a) shall be adjusted as follows:
          (i) For calendar year 2001, each such amount shall be 
        equal to the amount described in such subsection, 
        increased (in a compounded manner) by the percentage 
        increase in the price index (as defined in subsection 
        (c)(2)) for each of the years 1999 through 2000.
          (ii) For calendar year 2005 and each fourth 
        subsequent year, each such amount shall be equal to the 
        amount for the fourth previous year (as adjusted under 
        this subparagraph), increased (in a compounded manner) 
        by the percentage increase in the price index for each 
        of the four previous years.
    (B) In the case of any amount adjusted under this 
subparagraph which is not a multiple of $100, the amount shall 
be rounded to the nearest multiple of $100.

           *       *       *       *       *       *       *

    (d)[(1)] Notwithstanding any other provision of law with 
respect to limitations on expenditures or limitations on 
contributions, the national committee of a political party and 
a State committee of a political party, including any 
subordinate committee of a State committee, may make 
expenditures in connection with the general election campaign 
of candidates for Federal office[, subject to the limitations 
contained in paragraphs (2) and (3) of this subsection].
    [(2) The national committee of a political party may not 
make any expenditure in connection with the general election 
campaign of any candidate for President of the United States 
who is affiliated with such party which exceeds an amount equal 
to 2 cents multiplied by the voting age population of the 
United States (as certified under subsection (e)). Any 
expenditure under this paragraph shall be in addition to any 
expenditure by a national committee of a po-

litical party serving as the principal campaign committee of a 
candidate for the office of President of the United States.
    [(3) The national committee of a political party, or a 
State committee of a political party, including any subordinate 
committee of a State committee, may not make any expenditure in 
connection with the general election campaign of a candidate 
for Federal office in a State who is affiliated with such party 
which exceeds--
          [(A) in the case of a candidate for election to the 
        office of Senator, or of Representative from a State 
        which is entitled to only one Representative, the 
        greater of--
                  [(i) 2 cents multiplied by the voting age 
                population of the State (as certified under 
                subsection (e)); or
                  [(ii) $20,000; and
          [(B) in the case of a candidate for election to the 
        office of Representative, Delegate, or Resident 
        Commissioner in any other State, $10,000.]

           *       *       *       *       *       *       *



 ban on use of soft money by national political parties and candidates


    Sec. 323. (a) National Parties.--A national committee of a 
political party, including the national congressional campaign 
committees of a political party, and any officers or agents of 
such party committees, may not solicit, receive, or direct any 
contributions, donations, or transfers of funds, or spend any 
funds, which are not subject to the limitations, prohibitions, 
and reporting requirements of this Act. This subsection shall 
apply to any entity that is established, financed, maintained, 
or controlled (directly or indirectly) by, or acting on behalf 
of, a national committee of a political party, including the 
national congressional campaign committees of a political 
party, and any officers or agents of such party committees.
    (b) Candidates.--
          (1) In general.--No candidate for Federal office, 
        individual holding Federal office, or any agent of such 
        candidate or officeholder may solicit, receive, or 
        direct--
                  (A) any funds in connection with any Federal 
                election unless such funds are subject to the 
                limitations, prohibitions and reporting 
                requirements of this Act;
                  (B) any funds that are to be expended in 
                connection with any election for other than a 
                Federal office unless such funds are not in 
                excess of the amounts permitted with respect to 
                contributions to Federal candidates and 
                political committees under section 315(a)(1) 
                and (2), and are not from sources prohibited 
                from making contributions by this Act with 
                respect to elections for Federal office; or
                  (C) any funds on behalf of any person which 
                are not subject to the limitations, 
                prohibitions, and reporting requirements of 
                this Act if such funds are for the purpose of 
                financing any activity on behalf of a candidate 
                for election for Federal office or any 
                communication which refers to a clearly 
                identified candidate for election for Federal 
                office.
          (2) Exception for certain activities.--Paragraph (1) 
        shall not apply to--
                  (A) the solicitation or receipt of funds by 
                an individual who is a candidate for a non-
                Federal office if such activity is permitted 
                under State law for such individual's non-
                Federal campaign committee; or
                  (B) the attendance by an individual who holds 
                Federal office or is a candidate for election 
                for Federal office at a fundraising event for a 
                State or local committee of a political party 
                of the State which the individual represents or 
                seeks to represent as a Federal officeholder, 
                if the event is held in such State.
    (c) Prohibiting Transfers of Non-Federal Funds Between 
State Parties.--A State committee of a political party may not 
transfer any funds to a State committee of a political party of 
another State unless the funds are subject to the limitations, 
prohibitions, and reporting requirements of this Act.
    (d) Applicability to Funds From All Sources.--This section 
shall apply with respect to funds of any individual, 
corporation, labor organization, or other person.

           *       *       *       *       *       *       *


                       Views of committee members

    Clause 3(a) of rule XIII requires each committee to afford 
a two day opportunity for members of the committee to file 
supplemental, minority, or additional views and to include the 
views in its report. The Committee on House Administration 
Minority members have submitted dissenting views.
                             MINORITY VIEWS

    H.R. 1867 does seek to address the two key problems in our 
campaign finance system, the proliferation of unlimited soft 
money and undisclosed issue advocacy. However, it is not a 
comprehensive effort to address either. It fails to staunch the 
total flow of soft money because it only addresses soft money 
activities conducted by the national political committees. To 
be sure, addressing soft money raised by national political 
parties and Federal candidates is an essential first step to 
ridding politics of unlimited, unregulated contributions. 
however, H.R. 1867 would not regulate, any more rigorously than 
current law does, soft money activities that are conducted by 
State and local political parties which have an indirect but 
unmistakable impact on candidates running in federal elections.
    H.R. 1867 would not stop a wealthy tobacco company from 
making a soft money contribution. Rather, it would simply 
redirect the contribution to the state party, possibly 
simultaneously attracting less public scrutiny. under the H.R. 
1867 soft money ``ban'' corporate and union contributions could 
still flood state and local parties in all 50 states. These 
contributions in turn could be spend on ``generic'' party state 
and local ``grass roots'' activities that boost a federal 
candidate's prospects. Failure to address soft money on the 
state and local level, even if it is prohibited on the national 
level, will only preserve the loophole so many Americans 
deplore, encouraging wealthy individuals and corporations to 
divert huge contributions that now go to national non-federal 
accounts to state parties. As a consequence, it is unlikely 
that H.R. 1867 would shrink the total volume of unregulated 
soft money, or neutralize its impact on federal elections. The 
bill merely re-channels where special interests send these 
unlimited contributions.
    The loopholes in H.R. 1867's reforms are not limited to 
soft money. Unlike the Shays-Meehan proposal reported out of 
the Committee, H.R. 1867 does not seek to make special 
interests that use the issue advocacy loophole to run thinly 
disguised campaign ads play by the same rules that govern the 
candidates themselves. H.R. 1867 contains no requirement that 
hard dollars be used to pay for ``sham'' issue ads, and 
requires disclosure of the advertising only when it exceeds 
$25,000.
    Perhaps most troubling, through, H.R. 1867 purports to 
require disclosure of issue advertising, but in fact fails to 
provide to the voter the necessary information about who is 
paying for these confusing advertisements. While H.R. 1867 
requires disclosure of the amount of money spent on a 
particular advertisement, unlike every other disclosure 
provision in the campaign finance system, it does not require 
disclosure of the source of funds used to pay for advertising. 
In her testimony before the Committee on July 22, 1999, Dean 
Kathleen Hall Jamison of the Annenberg School of Communication 
testified about the difficult that voters have in determining 
how much credibility to lend to a communication when they do 
not know the source of the communication. Without real 
disclosure of the sources of money funding sham issue ads, the 
ability of the voters to make informed decisions is severely 
undermined. For these reasons, we urge passage of H.R. 419 as a 
more comprehensive alternative to H.R. 1867.

                                   Steny H. Hoyer.
                                   Chaka Fattah.
                                   Jim Davis.

                                
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