[House Report 106-295]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-295

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



 
           CAMPAIGN REFORM AND ELECTION 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

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2668]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 2668) to amend the Federal Election Campaign Act 
of 1971 to reform the financing of campaigns for election for 
Federal office, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Campaign Reform and 
Election Integrity Act of 1999''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References in act.

                 TITLE I--BAN ON FOREIGN CONTRIBUTIONS

Sec. 101. Extension of ban on foreign contributions to all campaign-
related disbursements; protecting equal participation of eligible 
voters.

              TITLE II--IMPROVING REPORTING OF INFORMATION

Sec. 201. Mandatory electronic filing for certain reports; expediting 
reporting of information.
Sec. 202. Reporting of secondary payments; expansion of other types of 
information reported.
Sec. 203. Disclosure requirements for certain soft money expenditures 
of political parties.

  TITLE III--STRENGTHENING ENFORCEMENT AND ADMINISTRATION OF FEDERAL 
                          ELECTION COMMISSION

Sec. 301. Standards for initiation of actions and written responses by 
Federal Election Commission.
Sec. 302. Banning acceptance of cash contributions greater than $100.
Sec. 303. Deposit of certain contributions and donations to be returned 
to donors in Treasury account.
Sec. 304. Alternative procedures for imposition of penalties for 
reporting violations.
Sec. 305. Abolition of ex officio membership of Clerk of House of 
Representatives and Secretary of Senate on Commission.
Sec. 306. Broader prohibition against force and reprisals.
Sec. 307. Signature authority of members of Commission for subpoenas 
and notification of intent to seek additional information.

       TITLE IV--SIMPLIFYING AND CLARIFYING FEDERAL ELECTION LAW

Sec. 401. Application of aggregate contribution limit on calendar year 
basis during non-election years.
Sec. 402. Treatment of lines of credit obtained by candidates as 
commercially reasonable loans.
Sec. 403. Repeal Secretary of Commerce reports on district-specific 
population.
Sec. 404. Technical correction regarding treatment of honoraria.

                        TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.

SEC. 2. REFERENCES IN ACT.

  Except as otherwise specifically provided, whenever in this Act an 
amendment is expressed in terms of an amendment to or repeal of a 
section or other provision, the reference shall be considered to be 
made to that section or other provision of the Federal Election 
Campaign Act of 1971.

                 TITLE I--BAN ON FOREIGN CONTRIBUTIONS

SEC. 101. EXTENSION OF BAN ON FOREIGN CONTRIBUTIONS TO ALL CAMPAIGN-
                    RELATED DISBURSEMENTS; PROTECTING EQUAL 
                    PARTICIPATION OF ELIGIBLE VOTERS.

  (a) Prohibition on Disbursements by Foreign Nationals.--Section 319 
(2 U.S.C. 441e) is amended--
          (1) in the heading, by striking ``contributions'' and 
        inserting ``donations and other disbursements'';
          (2) in subsection (a), by striking ``contribution'' each 
        place it appears and inserting ``donation or other 
        disbursement''; and
          (3) in subsection (a), by striking the semicolon and 
        inserting the following: ``, including any donation or other 
        disbursement to a political committee of a political party and 
        any donation or other disbursement for an independent 
        expenditure;''.
  (b) Codification of Regulations Prohibiting Use of Foreign Funds by 
Multicandidate Political Committees; Protecting Equal Participation of 
Eligible Voters in Campaigns and Elections.--Section 319 (2 U.S.C. 
441e) is amended--
          (1) by redesignating subsection (b) as subsection (d); and
          (2) by inserting after subsection (a) the following new 
        subsections:
  ``(b) It shall be unlawful for any person organized under or created 
by the laws of the United States or of any State or other place subject 
to the jurisdiction of the United States to make any donation or other 
disbursement to any candidate for political office in connection with 
an election for any political office, or to make any donation or other 
disbursement to any political committee or to any organization or 
account created or controlled by any United States political party, 
unless such donation or disbursement is derived solely from funds 
generated from such person's own business activities in the United 
States.
  ``(c) 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) Effective Date.--The amendments made by this section shall apply 
with respect to contributions, donations, and other disbursements made 
on or after the date of the enactment of this Act.

              TITLE II--IMPROVING REPORTING OF INFORMATION

SEC. 201. MANDATORY ELECTRONIC FILING FOR CERTAIN REPORTS; EXPEDITING 
                    REPORTING OF INFORMATION.

  (a) Requiring Electronic Filing Within 24 Hours of Certain 
Contributions and Independent Expenditures Made Within 90 Days of 
Election.--
          (1) In general.--Section 304(a) (2 U.S.C. 434(a)) is amended 
        by adding at the end the following new paragraph:
  ``(12)(A) Notwithstanding any other provision of this Act, each 
political committee described in subparagraph (B)(i) that receives a 
contribution in an amount equal to or greater than $200, and any person 
described in subparagraph (B)(ii) who makes an independent expenditure, 
during the period which begins on the 90th day before an election and 
ends at the time the polls close for such election shall, with respect 
to any information required to be filed with the Commission under this 
section with respect to such contribution or independent expenditure, 
file and preserve the information using electronic mail, the Internet, 
or such other method of instantaneous transmission as the Commission 
may permit, and shall file the information within 24 hours after the 
receipt of the contribution or the making of the independent 
expenditure.
  ``(B) For purposes of subparagraph (A)--
          ``(i) a political committee described in this clause is a 
        political committee that has received an aggregate amount of 
        contributions equal to or greater than $50,000 with respect to 
        the election cycle involved; and
          ``(ii) a person described in this clause is a person who 
        makes an aggregate amount of independent expenditures during 
        the election cycle involved or during any of the 2 previous 2-
        year general election cycles in an amount equal to or greater 
        than $10,000.
  ``(C) The Commission shall make the information filed under this 
paragraph available on the Internet immediately upon receipt.''.
          (2) Internet defined.--Section 301(19) (2 U.S.C. 431(19)) is 
        amended to read as follows:
  ``(19) The term `Internet' means the international computer network 
of both Federal and non-Federal interoperable packet-switched data 
networks.''.
  (b) Requiring Reports of Certain Filers to be Transmitted 
Electronically; Certification of Private Sector Software.--Section 
304(a)(11)(A) (2 U.S.C. 434(a)(11)(A)) is amended by striking the 
period at the end and inserting the following: ``, except that in the 
case of a report submitted by a person who reports an aggregate amount 
of contributions or expenditures (as the case may be) in all reports 
filed with respect to the election cycle involved (taking into account 
the period covered by the report) in an amount equal to or greater than 
$50,000, the Commission shall require the report to be filed and 
preserved by electronic mail, the Internet, or such other method of 
instantaneous transmission as the Commission may permit. The Commission 
shall certify (on an ongoing basis) private sector computer software 
which may be used for filing reports by such methods.''.
  (c) Requiring Reports for All Contributions Made Within 20 Days of 
Election; Requiring Reports To Be Made Within 24 Hours.--Section 
304(a)(6)(A) (2 U.S.C. 434(a)(6)(A)) is amended--
          (1) by striking ``after the 20th day, but more than 48 hours 
        before any election'' and inserting ``during the period which 
        begins on the 20th day before an election and ends at the time 
        the polls close for such election''; and
          (2) by striking ``48 hours'' the second place it appears and 
        inserting the following: ``24 hours (or, if earlier, by 
        midnight of the day on which the contribution is deposited)''.
  (d) Requiring Actual Receipt of Certain Independent Expenditure 
Reports Within 24 Hours.--
          (1) In general.--Section 304(c)(2) (2 U.S.C. 434(c)(2)) is 
        amended in the matter following subparagraph (C)--
                  (A) by striking ``shall be reported'' and inserting 
                ``shall be filed''; and
                  (B) by adding at the end the following new sentence: 
                ``Notwithstanding subsection (a)(5), the time at which 
                the statement under this subsection is received by the 
                Secretary, the Commission, or any other recipient to 
                whom the notification is required to be sent shall be 
                considered the time of filing of the statement with the 
                recipient.''.
          (2) Conforming amendment.--Section 304(a)(5) (2 U.S.C. 
        434(a)(5)) is amended by striking ``or (4)(A)(ii)'' and 
        inserting ``or (4)(A)(ii), or the second sentence of subsection 
        (c)(2)''.
  (e) Change in Certain Reporting From a Calendar Year Basis to an 
Election Cycle Basis.--
          (1) In general.--Section 304(b) (2 U.S.C. 434(b)) is 
        amended--
                  (A) by inserting ``(or election cycle, in the case of 
                an authorized committee of a candidate for Federal 
                office)'' after ``calendar year'' each place it appears 
                in paragraphs (2), (3), (4), and (7); and
                  (B) in paragraph (6)(A), by striking ``calendar 
                year'' and inserting ``election cycle''.
          (2) Election cycle defined.--Section 301 (2 U.S.C. 431) is 
        amended by adding at the end the following:
  ``(20) Election cycle.--Except as the Commission may otherwise 
provide, the term `election cycle' means, with respect to an election, 
the period beginning on the day after the date of the most recent 
general election for the office involved and ending on the date of the 
election.''.
  (f) Clarification of Permissible Use of Facsimile Machines and 
Electronic Mail to File Reports.--Section 304(a)(11)(A) (2 U.S.C. 
434(a)(11)(A)) is amended by striking ``method,'' and inserting the 
following: ``method (including by facsimile device or electronic mail 
in the case of any report required to be filed within 24 hours after 
the transaction reported has occurred),''.

SEC. 202. REPORTING OF SECONDARY PAYMENTS; EXPANSION OF OTHER TYPES OF 
                    INFORMATION REPORTED.

  (a) Requiring Record Keeping and Report of Secondary Payments by 
Campaign Committees.--
          (1) Reporting.--Section 304(b)(5)(A) (2 U.S.C. 434(b)(5)(A)) 
        is amended by striking the semicolon at the end and inserting 
        the following: ``, and, if such person in turn makes 
        expenditures which aggregate $5,000 or more in an election 
        cycle to other persons (not including employees) who provide 
        goods or services to the candidate or the candidate's 
        authorized committees, the name and address of such other 
        persons, together with the date, amount, and purpose of such 
        expenditures;''.
          (2) Record keeping.--Section 302 (2 U.S.C. 432) is amended by 
        adding at the end the following new subsection:
  ``(j) A person described in section 304(b)(5)(A) who makes 
expenditures which aggregate $5,000 or more in an election cycle to 
other persons (not including employees) who provide goods or services 
to a candidate or a candidate's authorized committees shall provide to 
a political committee the information necessary to enable the committee 
to report the information described in such section.''.
          (3) No effect on other reports.--Nothing in the amendments 
        made by this subsection may be construed to affect the terms of 
        any other recordkeeping or reporting requirements applicable to 
        candidates or political committees under title III of the 
        Federal Election Campaign Act of 1971.
  (b) Including Report on Cumulative Contributions and Expenditures in 
Post Election Reports.--Section 304(a)(7) (2 U.S.C. 434(a)(7)) is 
amended--
          (1) by striking ``(7)'' and inserting ``(7)(A)''; and
          (2) by adding at the end the following new subparagraph:
  ``(B) In the case of any report required to be filed by this 
subsection which is the first report required to be filed after the 
date of an election, the report shall include a statement of the total 
contributions received and expenditures made as of the date of the 
election.''.
  (c) Including Information on Aggregate Contributions in Report on 
Itemized Contributions.--Section 304(b)(3) (2 U.S.C. 434(b)(3)) is 
amended--
          (1) in subparagraph (A), by inserting after ``such 
        contribution'' the following: ``and the total amount of all 
        such contributions made by such person with respect to the 
        election involved''; and
          (2) in subparagraph (B), by inserting after ``such 
        contribution'' the following: ``and the total amount of all 
        such contributions made by such committee with respect to the 
        election involved''.

SEC. 203. DISCLOSURE REQUIREMENTS FOR CERTAIN SOFT MONEY EXPENDITURES 
                    OF POLITICAL PARTIES.

  (a) Transfers of Funds by National Political Parties.--Section 
304(b)(4) (2 U.S.C. 434(b)(4)) is amended--
          (1) by striking ``and'' at the end of subparagraph (H);
          (2) by adding ``and'' at the end of subparagraph (I); and
          (3) by adding at the end the following new subparagraph:
                  ``(J) in the case of a political committee of a 
                national political party, all funds transferred to any 
                political committee of a State or local political 
                party, without regard to whether or not the funds are 
                otherwise treated as contributions or expenditures 
                under this title;''.
  (b) Disclosure by State and Local Political Parties of Information 
Reported Under State Law.--Section 304 (2 U.S.C. 434) is amended by 
adding at the end the following new subsection:
  ``(d) If a political committee of a State or local political party is 
required under a State or local law, rule, or regulation to submit a 
report on its disbursements to an entity of the State or local 
government, the committee shall file a copy of the report with the 
Commission at the time it submits the report to such an entity.''.

  TITLE III--STRENGTHENING ENFORCEMENT AND ADMINISTRATION OF FEDERAL 
                          ELECTION COMMISSION

SEC. 301. STANDARDS FOR INITIATION OF ACTIONS AND WRITTEN RESPONSES BY 
                    FEDERAL ELECTION COMMISSION.

  (a) Standard for Initiation of Actions by FEC.--Section 309(a)(2) (2 
U.S.C. 437g(a)(2)) is amended by striking ``it has reason to believe'' 
and all that follows through ``of 1954,'' and inserting the following: 
``it has a reason to seek additional information regarding a possible 
violation of this Act or of chapter 95 or chapter 96 of the Internal 
Revenue Code of 1986 that has occurred or is about to occur (based on 
the same criteria applicable under this paragraph prior to the 
enactment of the Campaign Reform and Election Integrity Act of 
1999),''.
  (b) Requiring FEC to Provide Written Responses to Questions.--
          (1) In general.--Title III (2 U.S.C. 431 et seq.) is amended 
        by inserting after section 308 the following new section:
                 ``other written responses to questions
  ``Sec. 308A. (a) Permitting Responses.--In addition to issuing 
advisory opinions under section 308, the Commission shall issue written 
responses pursuant to this section with respect to a written request 
concerning the application of this Act, chapter 95 or chapter 96 of the 
Internal Revenue Code of 1986, a rule or regulation prescribed by the 
Commission, or an advisory opinion issued by the Commission under 
section 308, with respect to a specific transaction or activity by the 
person, if the Commission finds the application of the Act, chapter, 
rule, regulation, or advisory opinion to the transaction or activity to 
be clear and unambiguous.
  ``(b) Procedure for Response.--
          ``(1) Analysis by staff.--The staff of the Commission shall 
        analyze each request submitted under this section. If the staff 
        believes that the standard described in subsection (a) is met 
        with respect to the request, the staff shall circulate a 
        statement to that effect together with a draft response to the 
        request to the members of the Commission.
          ``(2) Issuance of response.--Upon the expiration of the 3-day 
        period beginning on the date the statement and draft response 
        is circulated (excluding weekends or holidays), the Commission 
        shall issue the response, unless during such period any member 
        of the Commission objects to issuing the response.
  ``(c) Effect of Response.--
          ``(1) Safe harbor.--Notwithstanding any other provisions of 
        law, any person who relies upon any provision or finding of a 
        written response issued under this section and who acts in good 
        faith in accordance with the provisions and findings of such 
        response shall not, as a result of any such act, be subject to 
        any sanction provided by this Act or by chapter 95 or chapter 
        96 of the Internal Revenue Code of 1986.
          ``(2) No reliance by other parties.--Any written response 
        issued by the Commission under this section may only be relied 
        upon by the person involved in the specific transaction or 
        activity with respect to which such response is issued, and may 
        not be applied by the Commission with respect to any other 
        person or used by the Commission for enforcement or regulatory 
        purposes.
  ``(d) Publication of Requests and Responses.--The Commission shall 
make public any request for a written response made, and the responses 
issued, under this section. In carrying out this subsection, the 
Commission may not make public the identity of any person submitting a 
request for a written response unless the person specifically 
authorizes to Commission to do so.
  ``(e) Compilation of Index.--The Commission shall compile, publish, 
and regularly update a complete and detailed index of the responses 
issued under this section through which responses may be found on the 
basis of the subjects included in the responses.''.
          (2) Conforming amendment.--Section 307(a)(7) (2 U.S.C. 
        437d(a)(7)) is amended by striking ``of this Act'' and 
        inserting ``and other written responses under section 308A''.
  (c) Standard Form for Complaints; Stronger Disclaimer Language.--
          (1) Standard form.--Section 309(a)(1) (2 U.S.C. 437g(a)(1)) 
        is amended by inserting after ``shall be notarized,'' the 
        following: ``shall be in a standard form prescribed by the 
        Commission, shall not include (but may refer to) extraneous 
        materials,''.
          (2) Disclaimer language.--Section 309(a)(1) (2 U.S.C. 
        437g(a)(1)) is amended--
                  (A) by striking ``(a)(1)'' and inserting 
                ``(a)(1)(A)''; and
                  (B) by adding at the end the following new 
                subparagraph:
  ``(B) The written notice of a complaint provided by the Commission 
under subparagraph (A) to a person alleged to have committed a 
violation referred to in the complaint shall include a cover letter (in 
a form prescribed by the Commission) and the following statement: `The 
enclosed complaint has been filed against you with the Federal Election 
Commission. The Commission has not verified or given official sanction 
to the complaint. The Commission will make no decision to pursue the 
complaint for a period of at least 15 days from your receipt of this 
complaint. You may, if you wish, submit a written statement to the 
Commission explaining why the Commission should take no action against 
you based on this complaint. If the Commission should decide to seek 
additional information, you will be notified and be given further 
opportunity to respond.' ''.

SEC. 302. BANNING ACCEPTANCE OF CASH CONTRIBUTIONS GREATER THAN $100.

  Section 315 (2 U.S.C. 441a) is amended by adding at the end the 
following new subsection:
  ``(i) No candidate or political committee may accept any 
contributions of currency of the United States or currency of any 
foreign country from any person which, in the aggregate, exceed 
$100.''.

SEC. 303. DEPOSIT OF CERTAIN CONTRIBUTIONS AND DONATIONS TO BE RETURNED 
                    TO DONORS IN TREASURY ACCOUNT.

  (a) In General.--Title III (2 U.S.C. 431 et seq.) is amended by 
adding at the end the following new section:
 ``treatment of certain contributions and donations to be returned to 
                                 donors
  ``Sec. 323. (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 90 days of 
                receipt by the committee); or
                  ``(B) the contribution or donation was made in 
                violation of section 315, 316, 317, 319, or 320 (other 
                than a contribution or donation returned within 90 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
                          ``(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) to seek 
                additional information regarding whether or not 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) (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 323, the amount 
of the donation involved shall be treated as the amount of the 
contribution involved.''.
  (c) Donation Defined.--Section 323, as added by subsection (a), is 
amended by adding at the end the following:
  ``(d) Donation Defined.--In this section, the term `donation' means a 
gift, subscription, loan, advance, or deposit of money or anything else 
of value made by any person to a national committee of a political 
party or a Senatorial or Congressional Campaign Committee of a national 
political party for any purpose, but does not include a contribution 
(as defined in section 301(8)).''.
  (d) Disgorgement Authority.--Section 309 (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 323.''.
  (e) Effective Date.--The amendments made by subsections (a), (b), and 
(c) 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 323 of the Federal Election Campaign Act of 1971 
(as added by subsection (a)) by such date.

SEC. 304. ALTERNATIVE PROCEDURES FOR IMPOSITION OF PENALTIES FOR 
                    REPORTING VIOLATIONS.

  (a) In General.--Section 309(a)(4) (2 U.S.C. 437g(a)(4)) is amended--
          (1) in subparagraph (A)(i), by striking ``clause (ii)'' and 
        inserting ``clause (ii) and subparagraph (C)''; and
          (2) by adding at the end the following new subparagraph:
  ``(C)(i) Notwithstanding subparagraph (A), in the case of a violation 
of any requirement under this Act relating to the reporting of receipts 
or disbursements, the Commission may--
          ``(I) find that a person committed such a violation on the 
        basis of information obtained pursuant to the procedures 
        described in paragraphs (1) and (2); and
          ``(II) based on such finding, require the person to pay a 
        civil money penalty in an amount determined under a schedule of 
        penalties which is established and published by the Commission 
        and which takes into account the amount of the violation 
        involved, the existence of previous violations by the person, 
        and such other factors as the Commission considers appropriate 
        (but which in no event exceeds $20,000).
  ``(ii) The Commission may not make any determination adverse to a 
person under clause (i) until the person has been given written notice 
and an opportunity to be heard before the Commission.
  ``(iii) Any person against whom an adverse determination is made 
under this subparagraph may obtain a review of such determination by 
filing in the United States District Court for the District of Columbia 
or for the district in which the person resides or transacts business 
(prior to the expiration of the 30-day period which begins on the date 
the person receives notification of the determination) a written 
petition requesting that the determination be modified or set aside.''.
  (b) Conforming Amendment.--Section 309(a)(6)(A) (2 U.S.C. 
437g(a)(6)(A)) is amended by striking ``paragraph (4)(A)'' and 
inserting ``paragraph (4)''.
  (c) Effective Date.--The amendments made by this section shall apply 
with respect to violations occurring on or after January 1, 2001.

SEC. 305. ABOLITION OF EX OFFICIO MEMBERSHIP OF CLERK OF HOUSE OF 
                    REPRESENTATIVES AND SECRETARY OF SENATE ON 
                    COMMISSION.

  Section 306(a) (2 U.S.C. 437c(a)) is amended--
          (1) in paragraph (1), by striking ``the Secretary of the 
        Senate and the Clerk'' and all that follows through ``right to 
        vote, and''; and
          (2) in paragraphs (3), (4), and (5), by striking ``(other 
        than the Secretary of the Senate and the Clerk of the House of 
        Representatives)'' each place it appears.

SEC. 306. BROADER PROHIBITION AGAINST FORCE AND REPRISALS.

  Section 316(b)(3) (2 U.S.C. 441b(b)(3)) is amended--
          (1) by redesignating subparagraphs (A) through (C) as 
        subparagraphs (B) through (D); and
          (2) by inserting before subparagraph (B) (as so redesignated) 
        the following new subparagraph:
          ``(A) for such a fund to cause another person to make a 
        contribution or expenditure by physical force, job 
        discrimination, financial reprisals, or the threat of force, 
        job discrimination, or financial reprisal;''.

SEC. 307. SIGNATURE AUTHORITY OF MEMBERS OF COMMISSION FOR SUBPOENAS 
                    AND NOTIFICATION OF INTENT TO SEEK ADDITIONAL 
                    INFORMATION.

  (a) Issuance of Subpoenas.--Section 307(a)(3) (2 U.S.C. 437d(a)(3)) 
is amended by striking ``signed by the chairman or the vice chairman'' 
and inserting ``signed by any member of the Commission''.
  (b) Notifications of Intent to Seek Additional Information.--Section 
309(a)(2) (2 U.S.C. 437g(a)(2)) is amended by striking ``through its 
chairman or vice chairman'' and inserting ``through any of its 
members''.

       TITLE IV--SIMPLIFYING AND CLARIFYING FEDERAL ELECTION LAW

SEC. 401. APPLICATION OF AGGREGATE CONTRIBUTION LIMIT ON CALENDAR YEAR 
                    BASIS DURING NON-ELECTION YEARS.

  Section 315(a)(3) (2 U.S.C. 441a(a)(3)) is amended by striking the 
second sentence.

SEC. 402. TREATMENT OF LINES OF CREDIT OBTAINED BY CANDIDATES AS 
                    COMMERCIALLY REASONABLE LOANS.

  Section 301(8)(B) (2 U.S.C. 431(8)(B)) is amended--
          (1) by striking ``and'' at the end of clause (xiii);
          (2) by striking the period at the end of clause (xiv) and 
        inserting ``; and''; and
          (3) by adding at the end the following new clause:
          ``(xv) any loan of money derived from an advance on a 
        candidate's brokerage account, credit card, home equity line of 
        credit, or other line of credit available to the candidate, if 
        such loan is made in accordance with applicable law and under 
        commercially reasonable terms and if the person making such 
        loan makes loans in the normal course of the person's 
        business.''.

SEC. 403. REPEAL SECRETARY OF COMMERCE REPORTS ON DISTRICT-SPECIFIC 
                    POPULATION.

  (a) Repeal Report by Secretary of Commerce on District-Specific 
Voting Age Population.--Section 315(e) (2 U.S.C. 441a(e)) is amended by 
striking ``States, of each State, and of each congressional district'' 
and inserting ``States and of each State''.
  (b) Deadline for Reporting of Certain Annual Estimates to 
Commission.--
          (1) Price index.--Section 315(c)(1) (2 U.S.C. 441a(c)(1)) is 
        amended--
                  (A) by striking ``At the beginning'' and inserting 
                ``Not later than February 15''; and
                  (B) by striking ``as there become available necessary 
                data from the Bureau of Labor Statistics of the 
                Department of Labor,''.
          (2) Voting age population.--Section 315(e) (2 U.S.C. 441a(e)) 
        is amended by striking ``During the first week of January 1975, 
        and every subsequent year,'' and inserting ``Not later than 
        February 15 of 1975 and each subsequent year,''.

SEC. 404. TECHNICAL CORRECTION REGARDING TREATMENT OF HONORARIA.

  Section 301(8)(B) (2 U.S.C. 431(8)(B)), as amended by section 402, is 
further amended--
          (1) by adding ``and'' at the end of clause (xiii);
          (2) by striking clause (xiv); and
          (3) by redesignating clause (xv) as clause (xiv).

                        TITLE V--EFFECTIVE DATE

SEC. 501. EFFECTIVE DATE.

  Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall apply with respect to elections 
occurring after January 2001.

                       Purpose of the Legislation

    The purpose of H.R. 2668, the Campaign Reform and Integrity 
Act of 1999, is to reform the federal election process by: (1) 
providing citizens with timely information about campaign 
contributions and expenditures; (2) fostering election rules 
that encourage candidates to run for office and; (3) protecting 
the integrity of American elections from foreign influences.
    In a representative democracy, the critical link between 
the people and their government is a system of free, open, and 
honest elections through which people choose who will represent 
their views in matters of public policy. Election laws should 
encourage, not discourage, persons from running for public 
office.
    No element of our electoral process is more important than 
the Constitutionally guaranteed rights of free speech and 
assembly. The ability of individuals and candidates to speak 
their views freely and vigorously provides a strong foundation 
for competitive elections and is the ultimate protection 
against tyranny. The U.S. Supreme Court has held that excessive 
regulation of campaign processes interferes with these 
Constitutional rights. In the landmark case of Buckley v. Valeo 
(1976), the Supreme Court held that mandatory limits on 
campaign expenditures are unconstitutional and further held 
that only ``corruption or the appearance of corruption'' could 
justify limits on campaign contributions.
    We believe these objectives can be accomplished without any 
infringements on those freedoms.

                       Summary of the Legislation


strengthen the ban on foreign contributions while protecting rights of 
                             U.S. citizens

    This bill clarifies one of the principal areas of murkiness 
that fostered the abuses of 1996, thus closing a major loophole 
in the law. H.R. 2668 states clearly that the ban on foreign 
contributions extends to all campaign-related disbursements, 
including soft money. It is similar to provisions in bills 
offered by Reps. Shays (H.R. 417), Burton (H.R. 1747), Gillmor 
(H.R. 1778), and Hoyer (H.R. 1818). The Administration and a 
Federal District Judge have interpreted current law as banning 
only federal contributions from foreign sources. This provision 
bans any disbursement that would include donations or spending 
for any federal, state or local campaign.
    The bill also seeks to insure that contributed funds come 
from U.S. sources and protects the rights of all Americans to 
contribute. It codifies current Federal Election Commission 
(FEC) regulations that require PAC, corporation or union 
contributions to come from U.S. sources, i.e., generated from 
business activities within the U.S. (Also included in the 
Gillmor bill). And it protects the existence of PACs sponsored 
by U.S. subsidiaries of foreign-owned corporations, so long as 
their contributions come from eligible U.S. voters (included in 
the Gillmor and Shays bills). These sections effective upon 
enactment.

                    improve and expedite disclosure

    H.R. 2668 would greatly improve public access to campaign 
funding information. It requires electronic filing of 
contributions and expenditures by committees raising or 
spending over $50,000 in an election cycle (also included in 
the Hutchinson bill, with similar provisions in the Doolittle 
(H.R. 1922), Hoyer and Shay's bills). All major committees 
would be required to file reports electronically, and the FEC 
would be required to post such reports on the Internet within 
24 hours after they are received.
    Also, to expedite disclosure in the period leading up to an 
election, the bill requires electronic filing within 24 hours 
during the last 90 days of an election, identifying: (1) 
contributions of $200 or more by committees that file 
electronically; and (2) independent expenditures by committees 
that have spent more than $10,000 in the current or either two 
prior election cycles. (The Doolittle bill has a similar 
provision, but applies to all contributions in the last 90 
days.)
    The bill also would change reporting from a calendar year 
basis to an election cycle basis (as recommended by the FEC and 
by the Hoyer bill). This would reduce confusion and costly 
errors in many campaigns' FEC filings. Reports would aggregate 
all contributions made to date in an election cycle, rather 
than just the calendar year, so accidental receipt of excess 
contributions would be easier for candidates to prevent.
    Disclosure would also be enhanced by a requirement to 
report secondary payments by major entities (recommended by the 
FEC and the Dreier bill, H.R. 32). Major consultants and 
campaign subcontractors such as advertising agencies would be 
required to report their expenditures to the campaign for 
inclusion in the campaign's report, so that campaigns could not 
hide expenditures by subcontracting them. There is a $5,000 
threshold to ensure that small entities are not unduly 
burdened.
    Another area targeted for greater disclosure pertains to 
soft money. H.R. 2668 requires national parties to disclose to 
the FEC any transfers of funds to state and local affiliates, 
and it requires state and local parties to file with the FEC 
copies of any reports required under their respective state or 
local laws (contained in the Doolittle bill). This provision 
would increase the information available to the public on state 
and local political party finances, without usurping state 
prerogatives to regulate their own elections.
    The Committee's bill requires post-election reports to show 
cumulative contributions and expenditures (as recommended by 
the FEC and the Dreier bill). This will enable the public to 
see more readily the total amounts contributed and spent in 
each primary and general election. Similarly, the bill requires 
data on aggregate contributions in itemized contribution 
reports. When a particular contribution is reported, the report 
would also list the total contribution from that particular 
person in that election cycle.This will help campaigns to avoid 
accidental acceptance of contributions in amounts over the contribution 
limits.
    Finally, the bill ensures the permissibility of FAX and 
electronic mail to file reports, to allow candidates and 
committees not required to file electronically to use the 
latest technology for reporting (recommended by the FEC and the 
Hoyer bill).

                 improve and streamline fec enforcement

    The Committee's bill changes FEC standards for initiation 
of actions from ``reason to believe'' a violation has been 
committed to ``reason to seek additional information'' 
regarding a possible violation, and requires a standard 
complaint form with a revised FEC disclaimer (a modified FEC 
recommendation). These provisions ensure that when the FEC 
announces the beginning of a more detailed inquiry into a 
possible violation, the phraseology does not imply guilt of the 
subject of the inquiry. When complaints are filed, the notice 
will contain language indicating that filing of the complaint 
does not reflect any verification or official sanction by the 
FEC regarding the merits of the compliant.
    The bill also establishes procedures for written responses 
to questions on election law by the FEC (included in the Dreier 
bill). Where the answers to election law questions are clear 
and unambiguous, the FEC could use a procedure for providing an 
answer in writing that the requester can rely upon. Currently 
such answers can be obtained on a toll-free telephone line, but 
they are not in writing, and the person requesting the answer 
cannot rely on them. ``Safe harbor protection'' would be 
afforded anyone who relies in good faith on a written response.
    Easing the regulatory burden on the FEC was the goal of 
another of the bill's provisions, to allow administrative 
procedures for imposing fines of up to $20,000 for reporting 
violations (as recommended in the recent Independent Audit). 
This creates a simplified procedure for the FEC to 
administratively handle reporting violations. Before imposing a 
fine, the FEC must provide an opportunity for the person to be 
heard before the Commission, and the person has the right to a 
court appeal.
    To deal with the complicated issues surrounding 
contributions of questionable legality, the Committee bill 
adopts a proposal by Rep. Gekas in the 105th Congress (H.R. 
1494), which is also contained in the Shays measure. This 
``tainted money'' provision requires that possibly illegal 
contributions, held longer than 90 days, be returned to the FEC 
and held in escrow instead of being returned directly to the 
donor, until the nature of any violation has been established.

                            other provisions

    The bill contains a number of provisions recommended by the 
FEC and contained in the Hoyer bill (H.R. 1818).
    First, it bans acceptance of cash contributions over $100; 
the law now only bans making them.
    Second, it clarifies that the aggregate individual 
contribution limit ($25,000 per year) is to be applied on a 
calendar year basis during non-election years. Current law 
applies a contribution to a candidate to the year of the next 
election, instead of when it was made; this creates confusion 
about which year to apply a contribution and creates accidental 
violations that consume needless energy and time at the FEC.
    Third, the bill treats lines of credit as commercially 
reasonable loans. New forms of credit such as credit card 
advances and home equity loans would be allowed for campaign 
purposes, if they were offered on commercially reasonable 
terms.
    Fourth, the bill broadens the law's prohibition against 
force and reprisals. Current law prohibits coerced 
contributions or expenditures by a PAC, but not necessarily 
contributions to a PAC. This would prohibit a corporation or 
labor union from using coercion to force contributions by an 
individual to a PAC or to a candidate.
    Fifth, the bill repeals a requirement for the Secretary of 
Commerce to file reports on congressional district population 
with the FEC. This was originally intended to be used to 
calculate congressional district spending limits enacted in 
1974, but struck down by the Supreme Court in the 1976 Buckley 
ruling.
    Sixth, H.R. 2668 deletes references to honoraria in the 
FECA, as the FEC no longer has jurisdiction in this area.
    Finally, the bill removes language authorizing ex officio 
FEC membership of the Clerk of the House and Secretary of the 
Senate (as recommended by the FEC). House and Senate rules no 
longer provide for membership of the Clerk and the Secretary; 
these provisions in federal election law are outdated and 
should be removed.

                     section-by-section description

            Section 1. Short title
    (a) Entitles bill the ``Campaign Reform and Election 
Integrity Act of 1999.''
    (b) Table of contents.
            Section 2. References in act
    (a) States that references in bill are to Federal Election 
Campaign Act of 1971, unless otherwise stated.

Title I--Ban on Foreign Contributions

            Section 101. Extending the ban on foreign contributions to 
                    all campaign disbursements; protecting equal 
                    participation of eligible voters
    (a) Adds soft money disbursements and independent 
expenditures to prohibited election-related financing by 
foreign nationals.
    (b) Codifies regulations prohibiting contributions or 
donations to candidates, committees, and parties from funds not 
generated from business activities in the U.S. of an entity 
``organized under or created by the laws of the U.S.''
    (c) States that nothing in the Act prohibits anyone 
eligible to vote in federal elections from contributing or 
spending money in support of candidates, including through a 
separate segregated fund set up by his/her employer or union.
    (d) Makes this section effective on date of enactment.

Title II--Improving Reporting of Information

            Section 201. Requiring electronic filing for certain 
                    activity and expediting its reporting
    (a) Requires electronic disclosure within 24 hours during 
last 90 days of election of contributions of $200 or more to 
committees required to file electronically, and of independent 
expenditures (if total independent expenditures by spender 
reached at least $10,000 in that or either two previous 
election cycles), with immediate Internet posting by FEC.
    (b) Requires electronic disclosure by all committees with 
aggregate election cycle contributions or expenditures of at 
least $50,000, with FEC to certify private sector software for 
such filings.
    (c) Requires candidate committee notices of contributions 
of $1,000 or more in the last 20 days of an election to cover 
activity through poll closing (rather than 48 hours before), 
and requires filing within 24 hours of receipt (rather than 48 
hours), or, if earlier, by midnight of the day of deposit.
    (d) Requires receipt of reports within 24 hours of 
independent expenditures made in the last 20 days of an 
election.
    (e) Requires reporting on election cycle, rather than 
calendar year basis, to facilitate monitoring of adherence to 
contribution limits. Defines election cycle as beginning on the 
day after the most recent general election for that office and 
ending on the date of that election.
    (f) Allows 24-hour notices to be filed by FAX or email.
            Section 202. Requiring reporting of secondary payments and 
                    of cumulative information
    (a) Requires record-keeping and disclosure by political 
committees of secondary payees once an intermediate agent 
spends at least $5,000 in that election cycle for goods and 
services in support of a candidate.
    (b) Requires post-election reports to include cumulative 
information on contributions and expenditures as of Election 
Day.
    (c) Requires itemized receipt reports to include total 
contributions by a contributor in that election.
            Section 203. Requiring disclosure of certain soft money by 
                    political parties
    (a) Requires disclosure by national parties of all funds 
transferred to state and local affiliates, whether or not funds 
are regulated by federal election law.
    (b) Requires state and local parties to file copies with 
the FEC of any disclosure reports required under state and 
local laws.

Title III--Strengthening Enforcement and Administration of Federal 
        Election Commission

            Section 301. Changing standards for initiating actions and 
                    allowing written responses to certain questions
    (a) Changes standard for initiating action from ``reason to 
believe'' to ``reason to seek additional information'' 
regarding possible violations.
    (b) Requires FEC to issue written responses to questions 
where the law is clear and unambiguous, and applies ``safe 
harbor'' protection for anyone acting in good faith, relying on 
written response. Requires FEC to publish requests and 
responses and to compile an index thereof.
    (c) Requires standard form for complaints. Requires clear 
statements by FEC to the object of any complaint filed that the 
matter is under investigation and has not been verified or 
proven.
            Section 302. Banning acceptance of cash contributions 
                    greater than $100
    (a) Prohibits receipt of cash contributions--in U.S. or 
foreign currency--in excess of $100.
    (b) Provides that money in the account may be used to 
determine the amount of fines and penalties.
    (c) Defines donation for the purposes of this section as 
applicable only to national party committees.
    (d) Permits conciliation agreement or other enforcement 
action to require forfeiture to the Treasury of funds held in 
escrow.
    (e) Makes this section effective on date of enactment.
            Section 303. Depositing certain contributions and donations 
                    to be returned in Treasury escrow account
    (a) Provides that contributions over $500 that a committee 
intends to return (after 90 days of receipt) be placed in an 
FEC escrow account, pending investigation of possible 
violations.
    (b) Provides that money in the account would be used toward 
fines, penalties, and investigation costs.
    (c) Provides that contributions in escrow account would be 
returned to donors if no reason to seek further information 
regarding a possible violation is found within 180 days of 
deposit.
            Section 304. Creating alternative procedures for imposing 
                    penalties for reporting violations
    (a) Allows FEC to create an administrative fine schedule 
for minor reporting violations, taking into account amount of 
violation (which may not exceed $20,000), any prior violations, 
and other factors.
            Section 305. Abolishing ex officio memberships on Federal 
                    Election Commission
    (a) Abolishes ex officio FEC membership of House Clerk and 
Secretary of Senate.
            Section 306. Broadening prohibition against force and 
                    reprisals
    (a) Broadens prohibition against force and reprisals by 
separate segregated funds, to cover causing another person to 
make a contribution or expenditure under said conditions.
            Section 307. Giving signature authority to members of 
                    Commission
    Allows the issuance of (a) subpoenas and (b) notifications 
of intent to seek additional information, with the signature of 
any member of the Commission (not just the chair or vice 
chair).

Title IV--Simplifying and Clarifying Federal Election Law

            Section 401. Applying aggregate contribution limit on 
                    calendar year basis in all years
    (a) Applies contributions in an off-election year toward an 
individual's aggregate limit for that year, not the election 
year.
            Section 402. Treating candidates' lines of credit as 
                    commercially reasonable loans
    (a) Exempts from ``contribution'' definition, candidate 
loans based on lines of credit, such as an advance on a 
candidate's credit card or home equity line of credit provided 
that the loan is made under commercially reasonable terms and 
in the normal course of business.
            Section 403. Repealing reports on district-specific 
                    population and changing deadlines for submitting 
                    certain information to FEC
    (a) Repeals requirement that Secretary of Commerce report 
voting age population by congressional district.
    (b) Requires price index and voting age population data by 
February 15 of each year.
            Section 404. Technical correction regarding treatment of 
                    honoraria
    (a) Deletes honoraria reference as exemption from 
``contribution'' definition

Title V--Effective Date

            Section 501. Effective with respect to elections occurring 
                    after January 2001 except as otherwise provided.

               Committee Consideration of the Legislation


                       Introduction and Referral

    On Monday, August 2, 1999, Mr. Thomas, Mr. Ney, Mr. 
Boehner, Mr. Ehlers, Mr. Mica and Mr. Ewing introduced H.R. 
2668 that 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 
favorably reported H.R. 2668, as amended, by voice vote a 
quorum being present. During the markup six amendments were 
offered by Mr. Hoyer. Mr. Hoyer's third amendment was agreed to 
by unanimous consent.

                            amendment No. 1

    Offered by Mr. Hoyer. The amendment consisted of two 
sections: (1) required that all political action committees 
raising or spending more than $100,000 per year file monthly 
reports with the Federal Election Commission and; (2) provided 
the option that all political action committees may file 
monthly. The amendment was divided by unanimous consent. The 
first section was rejected by a show of hands. The second 
section was rejected by a show of hands.

                            amendment No. 2

    Offered by Mr. Hoyer. The amendment authorized the Federal 
Election Commission to audit a committee, for cause, for up to 
one (1) year after an election. Rejected by recorded vote. As 
required by Clause 3(b) of rule XIII the recorded vote is 
reported below.

------------------------------------------------------------------------
            Member                   Yes           No          Present
------------------------------------------------------------------------
Mr. Thomas....................  ............            X   ............
Mr. Boehner...................  ............            X   ............
Mr. Ehlers....................  ............            X   ............
Mr. Ney.......................  ............            X   ............
Mr. Mica......................  ............  ............  ............
Mr. Ewing.....................  ............            X   ............
Mr. Hoyer.....................            X   ............  ............
Mr. Fattah....................            X   ............  ............
Mr. Davis.....................            X   ............  ............
                               -----------------------------------------
      Total...................            3             5   ............
------------------------------------------------------------------------

                            amendment No. 3

    Offered by Mr. Hoyer. The amendment authorized all FEC 
Commissioner to sign subpoenas and reason-to-believe 
notifications approved by the Commission. Agreed to by 
unanimous consent.

                            amendment no. 4

    Offered by Mr. Hoyer. The amendment increased eligibility 
threshold for primary matching funds from 20 to 30 states, 
eliminate state specific expenditure limits for primary 
candidates, eliminate separate limit on expenditures for 
fundraising for primary candidates, change eligibility 
requirements for public financing, change deposit of repayments 
into the Presidential Election Campaign Fund instead of the 
general fund of the Treasury, and ban contributions to 
Presidential candidates certified to receive public financing. 
Withdrawn by Mr. Hoyer without objection.

                            amendment no. 5

    Offered by Mr. Hoyer. The amendment provided an 
authorization of $38.516 million for the Federal Election 
Commission budget. Rejected by voice vote.

                            amendment no. 6

    Offered by Mr. Hoyer. The amendment required the FEC to 
update national voting system standards. Rejected by a show of 
hands.

                        Need for the Legislation

    The Committee is reporting out four measures addressing the 
entire gamut of approaches to federal campaign finance reform. 
Three of them make fairly sweeping changes in the law--H.R. 417 
(Shays-Meehan), H.R. 1867 (Hutchinson), and H.R. 1922 
(Doolittle)--each taking vastly different approaches from one 
another. All of these are well intended, and all seek to reform 
federal campaign finance laws in accord with the philosophies 
of their sponsors. Supporters of each bill believe that it, 
maybe alone, constitutes ``true reform,'' the changes really 
needed to resolve the seemingly never-ending campaign finance 
debate. Too often over the years, and increasingly so it seems, 
the good has been seen as the enemy of the perfect when it 
comes to campaign finance reform.
    And while the debate continues, certain problems magnify in 
their seriousness, and yet nothing is enacted. It has been 20 
years since Congress has actually enacted any significant 
changes in the laws first passed in the 1970s. While waiting 
for a bipartisan consensus, so critical in this area, to 
develop, countless, sorely needed improvements in the operation 
of current law go unmade.
    The fourth bill the Committee is reporting--H.R. 2668 
(Chairman Thomas)--offers Congress the chance to make many of 
the changes to improve current law around which consensus has 
already developed. It contains a wide array of recommendations 
culled from bills introduced by Democrats and Republicans, 
endorsed by the FEC, or contained in recommendations of the 
recent Independent Audit of the FEC. The Committee believes 
that this bill will move the ball forward in creating a more 
workable, rational regulatory system.
    While the Committee is reporting H.R. 2668 favorably--and 
unanimously, it is sending forth the Shays-Meehan bill with an 
unfavorable recommendation. We believe that it is unbalanced, 
unworkable, and, most of all, unconstitutional. We find merit 
in the twoother bills--H.R. 1867 and H.R. 1922--which we are 
reporting without recommendation. We welcome the vigorous debate that 
the House will undoubtedly have on these measures. But, once again, 
while awaiting the much-desired consensus on sweeping reforms, we 
commend to your attention H.R. 2668, as a first step toward addressing 
the important issues raised in the conduct of our elections and their 
financing.

             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. The only recorded vote requested during 
consideration of H.R. 2668 occurred on Amendment No. 2 offered 
by Mr. Hoyer.

------------------------------------------------------------------------
            Member                   Yes           No          Present
------------------------------------------------------------------------
Mr. Thomas....................  ............            X   ............
Mr. Boehner...................  ............            X   ............
Mr. Ehlers....................  ............            X   ............
Mr. Ney.......................  ............            X   ............
Mr. Mica......................  ............  ............  ............
Mr. Ewing.....................  ............            X   ............
Mr. Hoyer.....................            X   ............  ............
Mr. Fattah....................            X   ............  ............
Mr. Davis.....................            X   ............  ............
                               -----------------------------------------
      Total...................            3             5   ............
------------------------------------------------------------------------

                      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 I, 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. 2668 is not 
intended to preempt any state or local law.

            statement on budget authority and related items

    The bill does not provide for 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. 2668, the Campaign 
Reform and Election Integrity Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are John R. 
Righter (for federal costs) and John Harris (for the private-
sector impact).
            Sincerely,
                                          Dan L. Crippen, Director.
    Enclosure.

    H.R. 2668 would make numerous amendments to the Federal 
Election Campaign Act of 1971, including:
          (1) banning political contributions by noncitizens,
          (2) expanding the reporting of information to the 
        Federal Election Commission (FEC),
          (3) requiring daily disclosure by political 
        committees of certain contributions and expenditures at 
        the end of an election cycle,
          (4) requiring the electronic filing of information 
        for campaigns that spend or raise more than $50,000,
          (5) requiring political committees to temporarily 
        deposit with the Treasury certain contributions to be 
        returned to the donor pending investigation by the FEC 
        of possible violations, and
          (6) authorizing the FEC to create an administrative 
        fine schedule for minor reporting violations.
    Subject to the availability of appropriated funds, CBO 
estimates that implementing H.R. 2668 would cost the FEC about 
$1 million in fiscal year 2000. In future years, the bill might 
increase or decrease costs to the FEC, but CBO estimates that 
the net change in costs is not likely to be significant.
    Enacting the bill also would increase collections of fines 
and penalties, but CBO estimates that any such increase would 
not be significant. Because the bill would affect receipts, 
pay-as-you-go procedures would apply.
    H.R. 2668 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 
impose new private-sector mandates on individuals, businesses, 
candidates for federal office, and political parties. CBO has 
not yet completed an estimate of the costs of these mandates, 
but will provide such an estimate at a later date.
    Estimated cost to the Federal Government: CBO estimates 
that implementing H.R. 2668 would increase discretionary 
spending for administrative costs of the FEC by about $1 
million in fiscal year 2000. For future years, CBO estimates 
that the net change in FEC costs would probably not be 
significant. Implementing the bill would also affect receipts, 
but CBO estimates that the annualamounts of such changes are 
also not likely to be significant. The cost of this legislation fall 
within budget function 800 (general government).
    Discretionary Spending.--After the 2000 cycle for federal 
elections, H.R. 2668 would require that political committees 
with aggregate contributions or expenditures of $50,000 or more 
file their reports electronically with the FEC. During the 90 
days preceding an election, the bill would require that 
committees report daily on any contribution of $200 or more 
that they receive and that individuals report daily on certain 
types of expenditures in support of or against a candidate or 
candidates. The FEC would be required to process and post the 
information immediately on its Internet site. In addition, the 
bill would make several minor changes in how the FEC 
administers and investigates violations of the Federal Election 
Campaign Act.
    Based on information from the FEC, and subject to the 
availability of appropriated funds, CBO estimates that 
implementing H.R. 2668 cost the FEC about $1 million in fiscal 
year 2000. This cost would cover the one-time expenses of 
reconfiguring the FED's information systems to handle the 
increased workload from accepting and processing daily reports, 
as well as writing new regulations implementing the bill's 
provisions and printing and mailing materials informing 
candidates and political committees of the new requirements.
    In future years, the FEC would have to monitor political 
parties' compliance with the bill's provisions and comply with 
the bill's changes in issuing opinions and investigating 
possible violations. The increase in costs from complying with 
the provisions would be offset by the bill's provision allowing 
the FEC to streamline its investigation of certain reporting 
requirements. CBO estimates that the net change in such costs 
would not be significant.
    Government Receipts.--Enacting H.R. 2668 would likely 
increase collections of fines and penalties for violations of 
campaign finance law. This bill also would require that 
campaigns deposit certain contributions with the Treasury, 
which could then be applied toward any fines or penalties, and 
would allow the FEC to administer an alternative fine schedule 
for minor reporting violations. CBO estimates that the 
additional collections of penalties and fines would not be 
significant.
    Escrow Fund.--H.R. 2668 would require political committees 
to deposit in an escrow fund at the Treasury any contribution 
or donation they receive that is equal to or greater than $500 
and that the committee has not returned within 90 days of its 
receipt. The contribution would be held pending an 
investigation by the FEC. Depending on the results of that 
investigation, the contribution could be returned--with 
interest--to the donor, applied toward any fines, penalties, or 
costs associated with the investigation, or some combination of 
the two. The FEC would have 180 days to complete its 
investigation. Deposits to or withdrawals from the escrow fund 
would not be considered budgetary transactions. However, the 
bill specifies that some of the amounts deposited into the 
escrow fund could be used to offset costs of FEC 
investigations. Any such use of escrow funds would affect 
direct spending, but CBO expects that the amounts involved 
would be less than $500,000 a year.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act specifies pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. These procedures would apply to H.R. 2668 because it 
could affect both direct spending and receipts, but CBO 
estimates that the annual of such changes would not be 
significant.
    Estimated impact on State, local, and tribal governments: 
H.R. 2668 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: The bill would 
impose new private-sector mandates on individuals, businesses, 
candidates for federal office, and political parties. CBO has 
not yet completed an estimate of the costs of these mandates, 
but will provide such an estimate at a later date.
    Estimate prepared by: Federal costs: John R. Righter; 
Impact on the private sector: John Harris.
    Estimate 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

           *       *       *       *       *       *       *



            TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS


                              definitions

  Sec. 301. When used in this Act:
  (1) * * *

           *       *       *       *       *       *       *

  (8)(A) * * *
  (B) The term ``contribution'' does not include--
          (i) * * *

           *       *       *       *       *       *       *

          (xiii) payments made by a candidate or the authorized 
        committee of a candidate as a condition of ballot 
        access and payments received by any political party 
        committee as a condition of ballot access; and
          [(xiv) any honorarium (within the meaning of section 
        323 of this Act).]
          (xiv) any loan of money derived from an advance on a 
        candidate's brokerage account, credit card, home equity 
        line of credit, or other line of credit available to 
        the candidate, if such loan is made in accordance with 
        applicable law and under commercially reasonable terms 
        and if the person making such loan makes loans in the 
        normal course of the person's business.

           *       *       *       *       *       *       *

  [(19) The term ``Act'' means the Federal Election Campaign 
Act of 1971 as amended.]
  (19) The term ``Internet'' means the international computer 
network of both Federal and non-Federal interoperable packet-
switched data networks.
  (20) Election cycle.--Except as the Commission may otherwise 
provide, the term ``election cycle'' means, with respect to an 
election, the period beginning on the day after the date of the 
most recent general election for the office involved and ending 
on the date of the election.

                  organization of political committees

  Sec. 302. (a) * * *

           *       *       *       *       *       *       *

  (j) A person described in section 304(b)(5)(A) who makes 
expenditures which aggregate $5,000 or more in an election 
cycle to other persons (not including employees) who provide 
goods or services to a candidate or a candidate's authorized 
committees shall provide to a political committee the 
information necessary to enable the committee to report the 
information described in such section.

           *       *       *       *       *       *       *


                                reports

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

           *       *       *       *       *       *       *

  (5) If a designation, report, or statement filed pursuant to 
this Act (other than under paragraph (2)(A)(i) or [(4)(A)(ii)] 
or (4)(A)(ii), or the second sentence of subsection (c)(2) is 
sent by registered or certified mail, the United States 
postmark shall be considered the date of filing of the 
designation, report, or statement.
  (6)(A) The principal campaign committee of a candidate shall 
notify the Secretary or the Commission, and the Secretary of 
State, as appropriate, in writing, of any contribution of 
$1,000 or more received by any authorized committee of such 
candidate [after the 20th day, but more than 48 hours before 
any election] during the period which begins on the 20th day 
before an election and ends at the time the polls close for 
such election. This notification shall be made within [48 
hours] 24 hours (or, if earlier, by midnight of the day on 
which the contribution is deposited) after the receipt of such 
contribution and shall include the name of the candidate and 
the office sought by the candidate, the identification of the 
contributor, and the date of receipt and amount of the 
contribution.
  (B) The notification required under this paragraph shall be 
in addition to all other reporting requirements under this Act.
  (7)(A) The reports required to be filed by this subsection 
shall be cumulative during the calendar year to which they 
relate, but where there has been no change in an item reported 
in a previous report during such year, only the amount need be 
carried forward.
  (B) In the case of any report required to be filed by this 
subsection which is the first report required to be filed after 
the date of an election, the report shall include a statement 
of the total contributions received and expenditures made as of 
the date of the election.

           *       *       *       *       *       *       *

  (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,] method 
(including by facsimile device or electronic mail in the case 
of any report required to be filed within 24 hours after the 
transaction reported has occurred), as determined by the 
Commission[.], except that in the case of a report submitted by 
a person who reports an aggregate amount of contributions or 
expenditures (as the case may be) in all reports filed with 
respect to the election cycle involved (taking into account the 
period covered by the report) in an amount equal to or greater 
than $50,000, the Commission shall require the report to be 
filed and preserved by electronic mail, the Internet, or such 
othermethod of instantaneous transmission as the Commission may 
permit. The Commission shall certify (on an ongoing basis) private 
sector computer software which may be used for filing reports by such 
methods.

           *       *       *       *       *       *       *

  (12)(A) Notwithstanding any other provision of this Act, each 
political committee described in subparagraph (B)(i) that 
receives a contribution in an amount equal to or greater than 
$200, and any person described in subparagraph (B)(ii) who 
makes an independent expenditure, during the period which 
begins on the 90th day before an election and ends at the time 
the polls close for such election shall, with respect to any 
information required to be filed with the Commission under this 
section with respect to such contribution or independent 
expenditure, file and preserve the information using electronic 
mail, the Internet, or such other method of instantaneous 
transmission as the Commission may permit, and shall file the 
information within 24 hours after the receipt of the 
contribution or the making of the independent expenditure.
  (B) For purposes of subparagraph (A)--
          (i) a political committee described in this clause is 
        a political committee that has received an aggregate 
        amount of contributions equal to or greater than 
        $50,000 with respect to the election cycle involved; 
        and
          (ii) a person described in this clause is a person 
        who makes an aggregate amount of independent 
        expenditures during the election cycle involved or 
        during any of the 2 previous 2-year general election 
        cycles in an amount equal to or greater than $10,000.
  (C) The Commission shall make the information filed under 
this paragraph available on the Internet immediately upon 
receipt.
  (b) Each report under this section shall disclose--
          (1) * * *
          (2) for the reporting period and the calendar year 
        (or election cycle, in the case of an authorized 
        committee of a candidate for Federal office), the total 
        amount of all receipts, and the total amount of all 
        receipts in the following categories:
                  (A) * * *

           *       *       *       *       *       *       *

          (3) the identification of each--
                  (A) person (other than a political committee) 
                who makes a contribution to the reporting 
                committee during the reporting period, whose 
                contribution or contributions have an aggregate 
                amount or value in excess of $200 within the 
                calendar year (or election cycle, in the case 
                of an authorized committee of a candidate for 
                Federal office), or in any lesser amount if the 
                reporting committee should so elect, together 
                with the date and amount of any such 
                contribution and the total amount of all such 
                contributions made by such committee with 
                respect to the election involved;
                  (B) political committee which makes a 
                contribution to the reporting committee during 
                the reporting period, together with the date 
                and amount of any such contribution and the 
                total amount of all such contributions made by 
                such committee with respect to the election 
                involved and the total amount of all such 
                contributions made by such person with respect 
                to the election involved;

           *       *       *       *       *       *       *

          (4) for the reporting period and the calendar year 
        (or election cycle, in the case of an authorized 
        committee of a candidate for Federal office), the total 
        amount of all disbursements, and all disbursements in 
        the following categories:
                  (A) * * *

           *       *       *       *       *       *       *

                  (H) for any political committee other than an 
                authorized committee--
                          (i) * * *

           *       *       *       *       *       *       *

                          (v) any other disbursements; [and]
                  (I) for an authorized committee of a 
                candidate for the office of President, 
                disbursements not subject to the limitation of 
                section 315(b); and
                  (J) in the case of a political committee of a 
                national political party, all funds transferred 
                to any political committee of a State or local 
                political party, without regard to whether or 
                not the funds are otherwise treated as 
                contributions or expenditures under this title;
          (5) the name and address of each--
                  (A) person to whom an expenditure in an 
                aggregate amount or value in excess of $200 
                within the calendar year is made by the 
                reporting committee to meet a candidate or 
                committee operating expense, together with the 
                date, amount, and purpose of such operating 
                expenditure[;], and, if such person in turn 
                makes expenditures which aggregate $5,000 or 
                more in an election cycle to other persons (not 
                including employees) who provide goods or 
                services to the candidate or the candidate's 
                authorized committees, the name and address of 
                such other persons, together with the date, 
                amount, and purpose of such expenditures;

           *       *       *       *       *       *       *

          (6)(A) for an authorized committee, the name and 
        address of each person who has received any 
        disbursement not disclosed under paragraph (5) in an 
        aggregate amount or value in excess of $200 within the 
        [calendar year] election cycle, together with the date 
        and amount of any such disbursement;

           *       *       *       *       *       *       *

          (7) the total sum of all contributions to such 
        political committee, together with the total 
        contributions less offsets to contributions and the 
        total sum of all operating expenditures made by such 
        political committee, together with total operating 
        expenditures less offsets to operating expenditures, 
        for both the reporting period and the calendar year (or 
        election cycle, in the case of an authorized committee 
        of a candidate for Federal office); and
  (c)(1) * * *
  (2) Statements required to be filed by this subsection shall 
be filed in accordance with subsection (a)(2), and shall 
include--
          (A) * * *

           *       *       *       *       *       *       *

Any independent expenditure (including those described in 
subsection (b)(6)(B)(iii) aggregating $1,000 or more made after 
the 20th day, but more than 24 hours, before any election shall 
be [reported] filed within 24 hours after such independent 
expenditure is made. Such statement shall be filed with the 
Secretary or the Commission and the Secretary of State and 
shall contain the information required by subsection 
(b)(6)(B)(iii) indicating whether the independent expenditure 
is in support of, or in opposition to, the candidate involved. 
Notwithstanding subsection (a)(5), the time at which the 
statement under this subsection is received by the Secretary, 
the Commission, or any other recipient to whom the notification 
is required to be sent shall be considered the time of filing 
of the statement with the recipient.

           *       *       *       *       *       *       *

  (d) If a political committee of a State or local political 
party is required under a State or local law, rule, or 
regulation to submit a report on its disbursements to an entity 
of the State or local government, the committee shall file a 
copy of the report with the Commission at the time it submits 
the report to such an entity.

           *       *       *       *       *       *       *


                      federal election commission

  Sec. 306. (a)(1) There is established a commission to be 
known as the Federal Election Commission. The Commission is 
composed of [the Secretary of the Senate and the Clerk of the 
House of Representatives or their designees, ex officio and 
without the right to vote, and] 6 members appointed by the 
President, by and with the advice and consent of the Senate. No 
more than 3 members of the Commission appointed under this 
paragraph may be affiliated with the same political party.
  (3) Members shall be chosen on the basis of their experience, 
integrity, impartiality, and good judgment and members [(other 
than the Secretary of the Senate and the Clerk of the House of 
Representatives)] shall be individuals who, at the time 
appointed to the Commission, are not elected or appointed 
officers or employees in the executive, legislative, or 
judicial branch of the Federal Government. Such members of the 
Commission shall not engage in any other business, vocation, or 
employment. Any individual who is engaging in any other 
business, vocation, or employment at the time of his or her 
appointment to the Commission shall terminate or liquidate such 
activity no later than 90 days after such appointment.
  (4) Members of the Commission [(other than the Secretary of 
the Senate and the Clerk of the House of Representatives)] 
shall receive compensation equivalent to the compensation paid 
at level IV of the Executive Schedule. (5 U.S.C. 5315)
  (5) The Commission shall elect a chairman and a vice chairman 
from among its members [(other than the Secretary of the Senate 
and the Clerk of the House of Representatives)] for a term of 
one year. A member may serve as chairman only once during any 
term of office to which such member is appointed. The chairman 
and the vice chairman shall not be affiliated with the same 
political party. The vice chairman shall act as chairman in the 
absence or disability of the chairman or in the event of a 
vacancy in such office.

           *       *       *       *       *       *       *


                        powers of the commission

  Sec. 307. (a) The Commission has the power--
          (1) * * *

           *       *       *       *       *       *       *

          (3) to require by subpena, [signed by the chairman or 
        the vice chairman] signed by any member of the 
        Commission, the attendance and testimony of witnesses 
        and the production of all documentary evidence relating 
        to the execution of its duties;

           *       *       *       *       *       *       *

          (7) to render advisory opinions under section 308 [of 
        this Act] and other written responses under section 
        308A;

           *       *       *       *       *       *       *



                  other written responses to questions


  Sec. 308A. (a) Permitting Responses.--In addition to issuing 
advisory opinions under section 308, the Commission shall issue 
written responses pursuant to this section with respect to a 
written request concerning the application of this Act, chapter 
95 or chapter 96 of the Internal Revenue Code of 1986, a rule 
or regulation prescribed by the Commission, or an advisory 
opinion issued by the Commission under section 308, with 
respect to a specific transaction or activity by the person, if 
the Commission finds the application of the Act, chapter, rule, 
regulation, or advisory opinion to the transaction or activity 
to be clear and unambiguous.
  (b) Procedure for Response.--
          (1) Analysis by staff.--The staff of the Commission 
        shall analyze each request submitted under this 
        section. If the staff believes that the standard 
        described in subsection (a) is met with respect to the 
        request, the staff shall circulate a statement to that 
        effect together with a draft response to the request to 
        the members of the Commission.
          (2) Issuance of response.--Upon the expiration of the 
        3-day period beginning on the date the statement and 
        draft response is circulated (excluding weekends or 
        holidays), the Commission shall issue the response, 
        unless during such period any member of the Commission 
        objects to issuing the response.
  (c) Effect of Response.--
          (1) Safe harbor.--Notwithstanding any other 
        provisions of law, any person who relies upon any 
        provision or finding of a written response issued under 
        this section and who acts ingood faith in accordance 
with the provisions and findings of such response shall not, as a 
result of any such act, be subject to any sanction provided by this Act 
or by chapter 95 or chapter 96 of the Internal Revenue Code of 1986.
          (2) No reliance by other parties.--Any written 
        response issued by the Commission under this section 
        may only be relied upon by the person involved in the 
        specific transaction or activity with respect to which 
        such response is issued, and may not be applied by the 
        Commission with respect to any other person or used by 
        the Commission for enforcement or regulatory purposes.
  (d) Publication of Requests and Responses.--The Commission 
shall make public any request for a written response made, and 
the responses issued, under this section. In carrying out this 
subsection, the Commission may not make public the identity of 
any person submitting a request for a written response unless 
the person specifically authorizes to Commission to do so.
  (e) Compilation of Index.--The Commission shall compile, 
publish, and regularly update a complete and detailed index of 
the responses issued under this section through which responses 
may be found on the basis of the subjects included in the 
responses.

                              enforcement

  Sec. 309. (a)(1)(A) Any person who believes a violation of 
this Act or of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1954 has occurred, may file a complaint with the 
Commission. Such complaint shall be in writing, signed and 
sworn to by the person filing such complaint, shall be 
notarized, shall be in a standard form prescribed by the 
Commission, shall not include (but may refer to) extraneous 
materials, and shall be made under penalty of perjury and 
subject to the provisions of section 1001 of title 18, United 
States Code. Within 5 days after receipt of a complaint, the 
Commission shall notify, in writing, any person alleged in the 
complaint to have committed such a violation. Before the 
Commission conducts any vote on the complaint, other than a 
vote to dismiss, any person so notified shall have the 
opportunity to demonstrate, in writing, to the Commission 
within 15 days after notification that no action should be 
taken against such person on the basis of the complaint. The 
Commission may not conduct any investigation or take any other 
action under this section solely on the basis of a complaint of 
a person whose identity is not disclosed to the Commission.
  (B) The written notice of a complaint provided by the 
Commission under subparagraph (A) to a person alleged to have 
committed a violation referred to in the complaint shall 
include a cover letter (in a form prescribed by the Commission) 
and the following statement: ``The enclosed complaint has been 
filed against you with the Federal Election Commission. The 
Commission has not verified or given official sanction to the 
complaint. The Commission will make no decision to pursue the 
complaint for a period of at least 15 days from your receipt of 
this complaint. You may, if you wish, submit a written 
statement to the Commission explaining why the Commission 
should take no action against you based on this complaint. If 
the Commission should decide to seek additional information, 
you will be notified and be given further opportunity to 
respond.''
  (2) If the Commission, upon receiving a complaint under 
paragraph (1) or on the basis of information ascertained in the 
normal course of carrying out its supervisory responsibilities, 
determines, by an affirmative vote of 4 of its members, that 
[it has reason to believe that a person has committed, or is 
about to commit, a violation of this Act of chapter 95 or 
chapter 96 of the Internal Revenue Code of 1954,] it has a 
reason to seek additional information regarding a possible 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1986 that has occurred or is about to 
occur (based on the same criteria applicable under this 
paragraph prior to the enactment of the Campaign Reform and 
Election Integrity Act of 1999), the Commission shall, [through 
its chairman or vice chairman] through any of its members, 
notify the person of the alleged violation. Such notification 
shall set forth the factual basis for such alleged violation. 
The Commission shall make an investigation of such alleged 
violation, which may include a field investigation or audit, in 
accordance with the provisions of this section.

           *       *       *       *       *       *       *

  (4)(A)(i) Except as provided in [clause (ii)] clauses (ii) 
and subparagraph (C), if the Commission determines, by an 
affirmative vote of 4 of its members, that there is probable 
cause to believe that any person has committed, or is about to 
commit, a violation of this Act or of chapter 95 or chapter 96 
of the Internal Revenue Code of 1954, the Commission shall 
attempt, for a period of at least 30 days, to correct or 
prevent such violation by informal methods of conference, 
conciliation, and persuasion, and to enter into a conciliation 
agreement with any person involved. Such attempt by the 
Commission to correct or prevent such violation may continue 
for a period of not more than 90 days. The Commission may not 
enter into a conciliation agreement under this clause except 
pursuant to an affirmative vote of 4 of its members. A 
conciliation agreement, unless violated, is a complete bar to 
any further action by the Commission, including the bringing of 
a civil proceeding under paragraph (6)(A).

           *       *       *       *       *       *       *

  (C)(i) Notwithstanding subparagraph (A), in the case of a 
violation of any requirement under this Act relating to the 
reporting of receipts or disbursements, the Commission may--
          (I) find that a person committed such a violation on 
        the basis of information obtained pursuant to the 
        procedures described in paragraphs (1) and (2); and
          (II) based on such finding, require the person to pay 
        a civil money penalty in an amount determined under a 
        schedule of penalties which is established and 
        published by the Commission and which takes into 
        account the amount of the violation involved, the 
        existence of previous violations by the person, and 
        such other factors as the Commission considers 
        appropriate (but which in no event exceeds $20,000).
  (ii) The Commission may not make any determination adverse to 
a person under clause (i) until the person has been given 
written notice and an opportunity to be heard before the 
Commission.
  (iii) Any person against whom an adverse determination is 
made under this subparagraph may obtain a review of such 
determination by filing in the United States District Court for 
the District of Columbia or for the district in which the 
person resides or transacts business (prior to the expiration 
of the 30-day period which begins on the date the person 
receives notification of the determination) a written petition 
requesting that the determination be modified or set aside.
  (6)(A) If the Commission is unable to correct or prevent any 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954, by the methods specified in 
paragraph (4)[(A)], the Commission may, upon an affirmative 
vote of 4 of its members, insitute a civil action for relief, 
including a permanent or temporary injunction, restraining 
order, or any other appropriate order (including an order for a 
civil penalty which does not exceed the greater of $5,000 or an 
amount equal to any contribution or expenditure involved in 
such violation) in the district court of the United States for 
the district in which the person against whom such action is 
brought is found, resides, or transacts business.

           *       *       *       *       *       *       *

  (10) For purposes of determining the amount of a civil 
penalty imposed under this subsection for violations of section 
323, the amount of the donation involved shall be treated as 
the amount of the contribution involved.

           *       *       *       *       *       *       *

  (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 323.

           *       *       *       *       *       *       *


             limitations on contributions and expenditures

  Sec. 315. (a)(1) * * *

           *       *       *       *       *       *       *

  (3) No individual shall make contributions aggregating more 
than $25,000 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) [At the beginning] Not later than February 15 of each 
calendar year (commencing in 1976), [as there become available 
necessary data from the Bureau of Labor Statistics of the 
Department of Labor,] the Secretary of Labor shall certify to 
the Commission and publish in the Federal Register the percent 
difference between the price index for the 12 months preceding 
the beginning of such calendar year and the price index for the 
base period. Each limitation established by subsection (b) and 
subsection (d) shall be increased by such percent difference. 
Each amount so increased shall be the amount in effect for such 
calendar year.

           *       *       *       *       *       *       *

  (e) [During the first week of January 1975, and every 
subsequent year,] Not later than February 15 of 1975 and each 
subsequent year, the Secretary of Commerce shall certify to the 
Commission and publish in the Federal Register an estimate of 
the voting age population of the United [States, of each State, 
and of each congressional district] States and of each State as 
of the first day of July next preceding the date of 
certification. The term ``voting age population'' means 
resident population, 18 years of age or older.

           *       *       *       *       *       *       *

  (i) No candidate or political committee may accept any 
contributions of currency of the United States or currency of 
any foreign country from any person which, in the aggregate, 
exceed $100.

contributions or expenditures by national banks, corporations, or labor 
                             organizations

  Sec. 316. (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  (3) It shall be unlawful--
          (A) for such a fund to cause another person to make a 
        contribution or expenditure by physical force, job 
        discrimination, financial reprisals, or the threat of 
        force, job discrimination, or financial reprisal;
          [(A)] (B) for such a fund to make a contribution or 
        expenditure by utilizing money or anything of value 
        secured by physical force, job discrimination, 
        financial reprisals, or the threat of force, job 
        discrimination, or financial reprisal; or by dues, 
        fees, or other moneys required as a condition of 
        membership in a labor organization or as a condition of 
        employment, or by moneys obtained in any commercial 
        transaction;
          [(B)] (C) for any person soliciting an employee for a 
        contribution to such a fund to fail to inform such 
        employee of the political purposes of such fund at the 
        time of such solicitation; and
          [(C)] (D) for any person soliciting an employee for a 
        contribution to such a fund to fail to inform such 
        employee, at the time of such solicitation, of his 
        right to refuse to so contribute without any reprisal.

           *       *       *       *       *       *       *


 [contributions] donations and other disbursements by foreign nationals

  Sec. 319. (a) It shall be unlawful for a foreign national 
directly or through any other person to make any [contribution] 
donation or other disbursement of money or other thing of 
value, or to promiseexpressly or impliedly to make any such 
[contribution] donation or other disbursement, in connection with an 
election to any political office or in connection with any primary 
election, convention, or caucus held to select candidates for any 
political office[;], including any donation or other disbursement to a 
political committee of a political party and any donation or other 
disbursement for an independent expenditure; or for any person to 
solicit, accept, or receive any such [contribution] donation or other 
disbursement from a foreign national.
  (b) It shall be unlawful for any person organized under or 
created by the laws of the United States or of any State or 
other place subject to the jurisdiction of the United States to 
make any donation or other disbursement to any candidate for 
political office in connection with an election for any 
political office, or to make any donation or other disbursement 
to any political committee or to any organization or account 
created or controlled by any United States political party, 
unless such donation or disbursement is derived solely from 
funds generated from such person's own business activities in 
the United States.
  (c) 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)] (d) As used in this section, the term ``foreign 
national'' means--
          (1) * * *

           *       *       *       *       *       *       *



  treatment of certain contributions and donations to be returned to 
                                 donors


  Sec. 323. (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 
                90 days of receipt by the committee); or
                  (B) the contribution or donation was made in 
                violation of section 315, 316, 317, 319, or 320 
                (other than a contribution or donation returned 
                within 90 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
                          (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) to seek additional 
                information regarding whether or not 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.
  (d) Donation Defined.--In this section, the term ``donation'' 
means a gift, subscription, loan, advance, or deposit of money 
or anything else of value made by any person to a national 
committee of a political party or a Senatorial or Congressional 
Campaign Committee of a national political party for any 
purpose, but does not include a contribution (as defined in 
section 301(8)).

                       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.

                            ADDITIONAL VIEWS

    On August 2, 1999, the Committee on House Administration 
reported out four bills: three measures aimed at reforming the 
campaign finance system, and the Chairman's Federal Election 
Commission reform bill, H.R. 2668. Only H.R. 2668 received the 
unanimous support of the Committee. In fact, it was the only 
bill favorably reported by the Committee. While we believe that 
the Chairman's bill contains much-needed and long-overdue 
process and housekeeping fixes related to the Federal Election 
Commission (FEC), it does nothing to address soft money or the 
explosion of undisclosed issue advocacy, and has little to do 
with campaign finance reform. As Rep. Hoyer noted at the 
Committee meeting, it would be a ``cynical, Machiavellian 
ruse'' if H.R. 2668 were used to prevent H.R. 417, the 
bipartisan Shays-Meehan bill that passed the House by a 
significant Majority of 252-179 less than a year ago, from once 
again receiving a vote on the floor.
    In 1996, Meg Greenfield, a columnist for Newsweek magazine, 
compared the campaign finance laws to a squirrel baffle, a 
device designed to keep squirrels from reaching food. While it 
took humans months to construct the baffle, it took a 
particular determined squirrel only one day to penetrate it. 
And once one squirrel was through, a veritable army of 
squirrels was soon going back and forth. Her point was not that 
campaign finance reform was a fruitless endeavor, but rather 
that ``pretty much all reforms have a limit on them: the number 
of years it will take for motivated people to learn how to 
manipulate the system to their advantage.'' We agree that 
reform is a cyclical process, and that it is to be expected 
that in the 20 years since we last visited this area, new ways 
of penetrating the baffle of campaign finance laws have 
emerged.
    Two key ``penetrations'' have come in the form of unlimited 
``soft'' money contributions from corporations, unions and 
individuals and in the explosion of ``issue'' advertisements 
that are not about issues at all, but instead are designed to 
advocate the election or defeat of particular candidates 
without abiding by rules that govern the candidates themselves. 
We believe that any real campaign finance reform must address 
both problems.
    Despite the bipartisan support H.R. 417, the Majority voted 
it out of Committee unfavorably, unwilling to accord it even 
the courtesy granted to H.R. 1922 and H.R. 1867, both of which 
were reported without recommendation. In essence, the Committee 
favorably reported a bill that has little to do with campaign 
finance, was undecided as to two bills that failed to receive 
150 votes each last year, and opposed the one campaign finance 
reform bill that has the demonstrated bipartisan support needed 
to pass the House.
    H.R. 2668 in and of itself is a worthy bill. The Federal 
Election Commission faces a formidable task not faced by any 
other executive branch agency in that it is directly 
responsible for regulating the behavior of the very Members of 
Congress who in turn determine the agency's budget. As a 
result, even small procedural changes that would normally be 
routine often fail to get accomplished. H.R. 2668 combines many 
of these needed small fixes in one legislative package. While 
it does not hold itself out as a campaign finance reform bill, 
and makes no attempt to address the two key problems with the 
campaign finance system--soft money and the explosion of sham 
issue advertisements we support H.R. 2668.
    In fact, 15 of the 26 provisions contained in H.R. 2668 
were taken from H.R. 1818, sponsored by Rep. Hoyer along with 
Reps. Fattah and Davis. H.R. 1818 is designated to fine-tune 
current FEC pracatices and clarify inconsistencies in current 
law that have confused FEC officials, contributors, and 
candidates alike. Almost every provision either has the support 
of all six FEC Commissioners, or is taken directly from the 
recommendations of the audit of the FEC by 
PricewaterhouseCoopers last year. As Rep. Hoyer stated when 
H.R. 1818 was introduced in May, ``The Congress needs to take 
steps to restore the public trust and ensure that laws are 
fully enforced. A fully empowered FEC is step 1, and campaign 
finance reform is step 2.''
    Like H.R. 1818, H.R. 2668 accomplishes step 1. It mandates 
much needed electronic filing, ensuring that public access to 
information about a candidate's sources of funding keeps pace 
in the emerging age of the Internet. H.R. 2668 also requires 
quicker disclosure of independent expenditures and last minute 
contributions, and make it simplier for contributors to comply 
with the annual $25,000 limit. H.R. 2668 also places 
significant new reporting requirements on all political 
committees, requiring a daily reporting of all contributions 
received in excess of $200 in the 90-day period preceding both 
the primary and the primary and the general election. While in 
the electronic age, this requirement certainly does not 
constitute the burden on candidates and PACs that it once would 
have, we remain concerned that this provision may need some 
further consideration and perhaps modification prior to 
enactement.
    In additional to laudable enhancements of public disclose, 
H.R. 2668, like H.R. 1818, broadens candidates ability to use 
brokerage accounts and other available lines of credit commonly 
available, and it creates an automatic fine system for minor 
reporting violations.
    While we support H.R. 2668, we nonetheless regret that a 
number of provisions contained in H.R. 1818 are not included in 
this bill. During the Committee's consideration, we offered six 
amendments, each provisions of H.R. 1818 that we believe should 
be included in any FEC reform bill.
    Amendment 1 would have required all PACs raising or 
spending in excess of $100,000 to file monthly reports, and it 
would have created an optional structure to allow other 
committees to file monthly reports if they wished. While this 
amendment was intended to serve the interests of public 
disclosure and also to reduce the bookkeeping demands upon 
Committees, the Majority chose not to adopt this non-
controversal provision. Although the provision has the support 
of all six FEC Commissioners, the Majority claimed there had 
been insufficient time to consult with those affected by the 
amendment.
    Amendment 2 would have extended the period during which the 
FEC could initiate audits for cause from six months to one year 
after an election. Because it takes two months for financial 
information to be filed, much less analyzed, staff has 
insufficient time to determine what Committees should be 
audited for cause. Although this provision was again supported 
by all six FEC Commissioners, the Majority did not adopt the 
amendment. Amendment 3 consisted of a tiny housekeeping change 
regarding Commissioners authority to sign documents which was 
accepted.
    Amendment 4 included a series of non-controversial changes 
to the Presidential public financing system. These changes 
would have included a prohibition on individuals previously 
convicted of fraudulent use of public funding receiving funds 
in future elections. The provisions would also have reduced 
bookkeeping burdens on those candidates receiving public funds. 
This amendment was laid aside at the request of the Chairman, 
who stated a preference to revisit this issue in a suspension 
bill at a later time. We look forward to working with the 
Chairman and the Majority on this issue in the future.
    Amendment 5 would have authorized the FEC for the first 
time in many years. This amendment would have lent the stamp of 
legitimacy to an agency that is perpetually under-funded and 
under-staffed. Amendment 6 would have mandated that the FEC 
update the election equipment standards used by states to 
ensure that voting equipment is accurate and secure. The 
standards have not been updated since 1990 and the FEC 
generally will not agree to an update without explicit 
Congressional instruction. Although this provision has the 
support of every Secretary of State in the country, the 
Majority voted not to accept this amendment. We regret the 
Majority's unwillingness to accept such a straightforward 
amendment that goes to the heart of the Committee's 
jurisdiction, and would ensure the accuracy and security of 
voting equipment used in elections nationwide.
    Thus, given the fact that H.R. 2688 addresses much-needed 
FEC reform, we believe this legislation should receive a vote 
separate and apart from consideration of meaningful campaign 
finance reform such as the Shays-Meehan bill, H.R. 417. We are 
particularly concerned that opponents of meaningful campaign 
finance reform intend to use H.R. 2668 in a cynical attempt to 
kill the Shays-Meehan bill in this session. For example, we 
oppose any attempt to permit H.R. 2668 to become a substitute 
bill for H.R. 417. These two bills, as discussed above, address 
two different topics--campaign finance reform and FEC reform--
and should not be equated.

                                   Steny H. Hoyer.
                                   Chaka Fattah.
                                   Jim Davis.

                                  
