[House Report 107-131]
[From the U.S. Government Publishing Office]
107th Congress Rept. 107-131
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
BIPARTISAN CAMPAIGN REFORM ACT OF 2001
_______
July 10, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Ney, from the Committee on House Administration, submitted the
following
ADVERSE REPORT
together with
MINORITY VIEWS
[To accompany H.R. 2356]
[Including cost estimate of the Congressional Budget Office]
The Committee on House Administration, to whom was referred
the bill (H.R. 2356) to amend the Federal Election Campaign Act
of 1971 to provide bipartisan campaign reform, having
considered the same, report unfavorably thereon without
recommendation
The Committee on House Administration, to whom was referred
the bill (H.R. 2356) to amend the Federal Election Campaign Act
of 1971 to reform the financing of campaigns for elections for
Federal office, and for other purposes, having considered the
same, report unfavorably thereon.
Discussion of the Legislation
The Committee on House Administration has unfavorably
reported H.R. 2356, the ``Bipartisan Campaign Finance Reform
Act''. While the bills bearing the name of our colleagues Mr.
Shays and Mr. Meehan have changed and evolved over the years,
the core principal underlying their legislation had always been
their purported ``ban'' on soft money. In fact, no bill to ever
carry the Shays-Meehan label would have really banned soft
money, in as much as restrictions on soft money expenditures
were never even sought (except for the constitutionally suspect
attempt to restrict issue advertising). Rather, Shays-Meehan
and other reform proponents always used the term ``ban'' to
mean a prohibition on donations of soft money to political
parties. The true test of what constituted ``real'' reform had
always been whether or not soft money was ``banned'' as that
term was defined by reform proponents, i.e. a simple donation
ban. H.R. 2356 fails even this meager test. It permits
donations of soft money, in amounts up to $10,000 per source,
to state and local parties, and it does nothing to stop the
flow of soft money to any organization other than a political
party. Accordingly, H.R. 2356 fails to ban soft money under any
definition.
Though the recognition that political parties play an
important role in registering voters and getting them to the
polls, and should be able to raise non-federal funds for these
purposes, could be regarded as a modest improvement over the
complete assault on political parties in previous iterations of
Shays-Meehan, the Committee still reported H.R. 2356
unfavorably due to numerous fatal flaws. Though different in
many respects from prior versions, the new Shays-Meehan bill
remains an unconstitutional, ill-considered piece of
legislation. No evidence has been produced to this Committee of
a ``corruption'' problem stemming from soft moneycontributions
to political parties. Even if there had been such a showing, H.R. 2356
does not even attempt to be a narrowly tailored remedy. If it were ever
to become law, it would have precisely the opposite effect its
proponents intend. Rather than diminish the power of ``special
interest'' groups, it would actually make these groups even more
powerful than they are today. Independent advocacy groups, unions and
corporations would see their power and influence rise, while our
national political parties would be debilitated. The result would be
destabilization and factionalism, neither of which is in the best
interest of our country.
Under H.R. 2356, for the first time, House and Senate
candidates would be treated differently under federal election
law, in terms of individual contribution limits. As drafted,
H.R. 2356 would allow House candidates to raise only $1,000 per
individual per election, while Senate candidates would be
permitted to raise $2,000 per individual per election. There is
no substantive policy rationale for such disparate treatment of
candidates for the two different Houses of Congress. The
provision is cynically included for no reason other than its
sponsors' belief that it increases their chances of cobbling
together a majority on the House floor. No evidence was
provided at any point indicating that House Members are more
likely to be corrupted by a $1001 donation then our Senate
colleagues, yet that would be the only constitutionally
acceptable premise for this proposed disparate treatment. It is
understandable why our colleagues in the other body would have
no problem with such a provision, but it is inconceivable why
any House Member would support such an unfair and unbalanced
provision.
Additionally, Senate candidates receive more preferential
treatment in the form of a ``millionaire's amendment'' that
permits them to raise amounts five times greater than those
permitted all other candidates, when faced with an opponent who
spends over a certain amount of personal funds on their
campaign. House candidates who find themselves in a race
against a wealthy opponent receive no such relief. Again, the
provision is included only to maximize the bill's chances for
passage, there being no policy rationale for such disparate
treatment.
Constitutionally Protected Issue Advocacy
As it has in the past, H.R. 2356 attempts to impose
unconstitutional restrictions on protected expression. Those
who seek to impose such restrictions argue that they are
necessary because unions and corporations are using issue
advertisements to influence campaigns in a manner not intended
or permitted by the Federal Election Campaign Act.
The bright line test between express and issue advocacy was
laid down by the Supreme Court in Buckley v. Valeo, and it has
been reaffirmed repeatedly by lower courts since. Numerous
attempts by the Federal Election Commission to expand its
regulatory reach over communications which do not expressly
advocate the election or defeat of clearly identified federal
candidates (the definition of issue ads) have been rejected by
the courts.
Those who advocate new restrictions on non-express advocacy
communications are frustrated by these court decisions. But it
is the First Amendment on which the Supreme Court and other
courts rely for the proposition that express terms of advocacy
are required for a communication to be subject to government
regulation. Those who seek greater regulation seem to view the
First Amendment, not as a protection to the citizens from
government regulation of political speech, but rather as a
``loophole'' to be closed in order to expand Congress's ability
to regulate elections. Of course, the First Amendment, which
begins ``Congress shall make no law * * *'' was specifically
designed to preclude the government from restricting the speech
of the people. Some Members of Congress may feel frustrated by
the things being said about them, but the First Amendment
prevents Congress and its Members from using their powers to
restrict, regulate or punish their critics.
It is not as if, in some shortsighted fashion, the Supreme
Court failed to foresee the potential electoral impact of this
kind of issue advocacy. The decision to leave such
communications unrestricted was not an oversight that requires
Congressional correction, rather, it was a deliberate refusal
to permit government intrusion on protected expression. As the
Court said:
Discussion of public issues and debate on the
qualifications of candidates are integral to the
operation of the system of government established by
our Constitution. The First Amendment affords the
broadest protection to such political expression in
order ``to assure [the] unfettered interchange of ideas
for the bringing about of political and social changes
desired by the people.'' Buckley v. Valeo, 424 U.S. 1,
14 (1976).
The attempt by H.R. 2356 to restrict issue advocacy is an
unconstitutional overreach and would likely be struck down by
the Court. As this is the only provision in the bill which
attempts to restrict how unions, corporations, and advocacy
groups spend their organizations' treasury funds, as opposed to
donating them, the result will be a political world where
``special interest'' groups have absolutely unfettered ability
to spend soft dollars, while the political parties, forbidden
from receiving such funds, will not be able to spend any.
Clearly, H.R. 2356 is not a bill that will minimize the
influence of ``special interests'' as such interests are often
referenced by the advocates of H.R. 2356.
In addition, H.R. 2356 is not narrowly tailored to address
a particular or compelling governmental interest. In fact,
disclosure of the identity of sponsors of communications is the
only interest identified by the advocates of H.R. 2356 to
justify government regulation of speech which the Supreme Court
has previously ruled is not subject to government regulation.
If indeed disclosure is the compelling governmental interest,
the provisions of H.R. 2356 extend far beyond the degree of
regulation necessary to achieve the goal. In fact, H.R. 2356
has the ultimate effect of chilling and even precluding certain
communications by creating an expansive regulatory system which
dictates not only disclosure but also the permissible sources
of funding, the timing and content of speech otherwise
protected by the First Amendment.
Coordination
The expansive definition of behaviors that constitute
coordination between citizens, citizens groups and candidates
for public office would discourage (if not eliminate)
communications between citizens and their elected
representatives. Under H.R. 2356, any payment made pursuant to
a ``general or particular understanding'' with an elected
official would be treated as a contribution and therefore
severely limited. Further, such ``coordination'' does not even
require ``collaboration or agreement'' to establish
coordination. With such a vague and sweeping definition, a
simple meeting between an individual and his/her Member of
Congress could trigger an FEC investigation into the subject of
the meeting and the issues discussed. As Lawrence Gold,
Associate General Counsel for the AFL-CIO testified; ``In its
investigation into alleged coordination, the [FEC] has used its
subpoena power to seek to identify, and inquire intothe details
of virtually every contact between a corporation or union, acting
through it officers, directors, members and allies, and a candidate,
political party, or anyone else who might be acting on the candidate's
behalf.''
Unquestionably, this will have a chilling effect on the
rights of citizens and citizen groups to speak and associate
freely. This provision is in direct conflict with one of the
stated goals of the proponents, i.e. that reform will make
citizens more willing to become involved in politics. Clearly
the opposite is true. People who know that a simple meeting
with a Congressman could trigger a costly and burdensome
investigation will simply disassociate themselves from
politics.
The First Amendment not only protects political speech but
also the right of the citizens to petition their government for
redress of grievances. H.R. 2356 ignores this protected right
afforded the people by the First Amendment and would convert
such activities to potentially incriminating evidence of
illegal political campaign activity through ``coordination''.
The definition of ``coordination'' is largely left to the
Federal Election Commission, other than directing the
Commission to define ``coordination'' expansively and with
utter disregard for the applicable decisions of the Supreme
Court and other federal courts over the past twenty-five years.
Such important definitions should not and cannot be delegated
by the Congress with nothing more than a list of the factors
the Federal Election Commission should consider, with no
legislative guidance as to the decision the Commission is to
make with respect to each of the factors. H.R. 2356 also
repeals the regulations adopted by the Federal Election
Commission on the subject of ``coordination'' which resulted
from a decision of the federal district court in FEC v.
Christian Coalition. In other words, H.R. 2356 specifically
directs the federal agency charged with enforcing the law to
promulgate regulations on a subject in direct contravention of
an order of the federal court to that agency. Such disregard of
the law is not appropriate by either the agency or the
Congress.
Summary of the Legislation
SECTION-BY-SECTION DESCRIPTION
TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE
Sec. 101. Soft money of political parties
Prohibits national party committees (including an
officer or agent acting on their behalf and entities they
directly or indirectly establish, finance, maintain, or
control) from soliciting, receiving, directing, transferring,
or spending money that is not regulated by federal election law
(soft money).
In general, prohibits soft money spending for a
federal election activity by state and local party committees
(including an officer or agent acting on their behalf and
entities they directly or indirectly establish, finance,
maintain, or control) or by a group of state or local
candidates or officials.
Allows state and local parties to use some funds
raised in accord with state law (soft money) for voter
registration drives in the last 120 days of a federal election,
voter identification efforts, get-out-the-vote drives (GOTV),
and generic activities, if they: match soft money equally with
hard money (i.e., a 50-50 allocation formula); do not refer to
a clearly identified federal candidate; do not pay for
broadcast, cable, or satellite communications (unless they
refer solely to state and local candidates); receive no
donations from any person (including an entity established,
financed, maintained, or controlled by that person) in amounts
greater than $10,000 a year for such activities; and use only
funds raised by the state, district, or local party expressly
for such purposes and include no funds transferred from other
party committees (and agents or officers acting on their behalf
or entities they directly or indirectly establish, finance,
maintain, or control). Prohibits any funds for special soft
money accounts from being solicited, received, directed,
transferred, or spent in the name of national parties or
federal candidates or officials or by joint fundraising
activities by two or more party committees.
Defines federal election activity to include: (1)
voter registration drives in the last 120 days of a federal
election; (2) voter identification, GOTV, and generic activity
in connection with an election in which a federal candidate is
on the ballot; (3) public communications that refer to a
clearly identified federal candidate and promote, support,
attack, or oppose a candidate for that office (regardless of
whether it expressly advocates a vote for or against); or (4)
services by a state or local party employee who spends at least
25% of paid time in a month on activities in connection with a
federal election.
Defines generic campaign activity as one that
promotes a party but not a federal or non-federal candidate.
Defines public communications as communications by
broadcast, cable, satellite, newspaper, magazine, outdoor
advertising, mass mailing (over 500 identical or substantially
similar pieces mailed within 30 days of each other), or phone
bank (over 500 identical or substantially similar calls made
within 30 days of each other).
Allows state parties to spend soft money on
activities exclusively devoted to non-federal elections.
Prohibits party committees from using soft money
to raise funds for use at least in part on federal election
activities.
Prohibits party committees (and officers or agents
acting in their behalf and entities they directly or indirectly
establish, finance, maintain, or control) from raising money
for, or giving to, Internal Revenue Code Sec. 501(c) or
Sec. 527 tax-exempt organizations (other than political
committees as defined by federal election law).
Prohibits federal candidates, officeholders,
agents, or entities they directly or indirectly establish,
maintain, finance, or control from raising soft money in
connection with a federal election (including any federal
election activity) or any money from sources beyond federal
limits and prohibitions in non-federal elections (unless
candidate or official is also a state or local candidate,
raising funds for that campaign).
Allows federal candidates and officials to raise
money for tax-exempt organizations engaged primarily in voter
registration and GOTV, subject to a limit of $10,000 per donor
(i.e., limit on individual contributions to state party
committee under this bill).
Does not restrict ability of federal candidates
and officials to raise money to influence state reapportionment
decisions.
Sec. 102. Increased contribution limits for state committees of
political parties and aggregate contribution limit for
individuals
Raises limit on individual contributions to a
state party committee to $10,000 per year.
Raises aggregate individual limit to $30,000 per
year (*superceded by $37,500 limit in sec. 308).
Sec. 103. Reporting requirements
Codifies FEC regulations on disclosure of all
national party activity-federal and non-federal.
Requires disclosure by state and local parties of
spending on federal election activities, including any soft
money permitted to be used for such activities.
Ends building fund exemption.
TITLE II--NONCANDIDATE CAMPAIGN EXPENDITURES
Subtitle A--Electioneering Communications
Sec. 201. Disclosure of electioneering communications
Requires disclosure of electioneering
communications by any spender exceeding an aggregate of $10,000
per year in such disbursements (including contracts to
disburse), within 24 hours of the first and each subsequent
$10,000 disbursement.
Requires disclosure to include: identification of
spender, custodian of books, and any entity exercising control
over activity; principal place of business (if not an
individual); amount of disbursements of over $200 and
identification of recipient; identification of donors of $1,000
or more (either to a separate segregated fund devoted
exclusively to such activities or, if none, to organization
itself); and notation as to election and candidates to which
communications pertain.
Defines electioneering communication as a
broadcast, cable, or satellite advertisement that refers to a
clearly identified federal candidate, made within 60 days of a
general election or 30 days of a primary, and, if not for
President or Vice President, is targeted to relevant electorate
(i.e., communication is received by 50,000 or more persons in
state, for Senate elections, or district, for House elections);
exempts news events, expenditures, independent expenditures,
debates, and others who may be exempted by FEC.
If definition of electioneering communication is
ruled unconstitutional, provides alternate definition (based on
1987 9th Circuit ruling in FEC v. Furgatch): a broadcast,
cable, or satellite communication that promotes, supports,
attacks, oropposes a candidate, regardless of whether it
expressly advocates a vote for or against a candidate, and is
suggestive of no plausible meaning other than an exhortation to vote
for or against a candidate); nothing in provision alters 11 CFR
100.22(b), FEC regulation defining express advocacy.
Sec. 202. Coordinated communications as contributions
Treats an electioneering communication that is
coordinated with a candidate, agent, or party as a contribution
to and expenditure by candidate or party.
Sec. 203. Prohibition of corporate and labor disbursements for
electioneering communications
Bans funding of electioneering communications with
funds from union or certain corporate funds; but exempts
Internal Revenue Code Sec. 501(c)(4) or Sec. 527 tax-exempt
corporations making electioneering communications with funds
solely donated by individuals who are citizens or permanent
resident aliens.
Sec. 204. Rules relating to certain targeted electioneering
communications
Removes exemption for Sec. 501(c)(4) or Sec. 527
tax-exempt corporations making targeted electioneering
communications.
Subtitle B--Independent and Coordinated Expenditures
Sec. 211. Definition of independent expenditure
Defines independent expenditure as an expenditure
by a person expressly advocating the election or defeat of a
clearly identified candidate, and that is not made in concert
or cooperation with, at request or suggestion of, or pursuant
to any particular or general understanding with candidate,
party, or agent.
Sec. 212. Reporting requirements for certain independent expenditures
Requires a 48 hour notice of independent
expenditures of $10,000 or more, up to 20 days before an
election (and 24 hour notice of expenditures above $1,000 in
last 20 days, same as currently).
Sec. 213. Independent versus coordinated expenditures by party
Prohibits parties from making both independent and
coordinated expenditures for a general election candidate.
Sec. 214. Coordination with candidates or political parties
Includes in definition of contribution any
coordinated expenditure or other disbursement made in
connection with candidate's campaign, and expenditures or
disbursements made in coordination with party, regardless of
whether communication contains express advocacy.
Treats an electioneering communication that is
coordinated with a candidate, agent, or party as a contribution
to and expenditure by candidate or party.
Defines coordinated expenditure or other
disbursement as a payment made in concert or cooperation with,
at request or suggestion of, or pursuant to any particular or
general understanding with candidate or party.
Repeals new FEC rules, and directs FEC to
promulgate new regulations within 90 days of enactment on
coordination; specifies new rules will not require explicit
collaboration or agreement to establish coordination; specifies
rules will address issues of: republication of campaign
material, common vendors, prior employment status, and
substantial discussion with candidate or party.
TITLE III--MISCELLANEOUS
Sec. 301. Use of contributed amounts for certain purposes
Codifies FEC regulations on permissible uses for
campaign funds.
Retains ban on personal use.
Sec. 302. Prohibition of fundraising on federal property
Bans solicitation or receipt of contributions,
including soft money, by federal officials and from anyone, who
is located in any federal government building used to discharge
official duties.
Sec. 303. Strengthening foreign money ban
Bans direct or indirect contributions from foreign
nationals (including soft money), or their solicitation or
receipt, or any promise to make such donations, in connection
with any U.S. election, to any party committee, or for any
expenditure, independent expenditure, or electioneering
communication (retains permanent resident alien exemption).
Sec. 304. Modification of individual contribution limits in response to
expenditures from personal funds
In Senate elections: raises limits on individual
and party support for a Senate candidate whose opponent exceeds
designated level of spending from personal funds (as defined)
in campaign; creates threshold of $150,000 + 4 cents times
number of eligible voters in state; if opposition personal
funds amount (personal spending of candidate minus that of
opponent) exceeds threshold amount: (a) by 2-4 times, then
limit on individual contributions to opponent is tripled; (b)
by 4-10 times, then limit on individual contributions to
opponent is raised 6-fold; and (c) by 10 times, then limit on
individual contributions to opponent is raised 6-fold and limit
on party coordinated expenditures for opponent is removed;
aggregate individual limit would be raised to extent of
increased contribution limits; limits would be raised only to
extent of 110% of total opposition personal funds amount.
In all elections: limits repayment of candidate
loans to $250,000, from amounts contributed after election.
Sec. 305. Television media rates
Changes basis for lowest unit rate for TV, cable,
and satellite broadcast time (applicable in last 45 days of a
primary and 60 days of a general election) to comparison with
the same amount of time for the same period during prior 180
days.
Requires such rates to be available to national
parties buying time for ``coordinated expenditures'' on behalf
of their candidates.
Makes lowest unit rate time on broadcast TV,
cable, or satellite non-preemptible, unless for circumstances
beyond broadcaster's control.
Provides for random audits by FCC to ensure
compliance by broadcasters.
Sec. 306. Limitation on availability of lowest unit charge for federal
candidates attacking opposition
Requires federal candidate broadcast ads sold at
lowest unit rate and that include direct reference to opponents
to include candidate photo or image on TV and a statement of
candidate approval (printed on TV and spoken by candidate on
radio).
Sec. 307. Software for filing reports and prompt disclosure of
contributions
Requires FEC to promulgate standards for and to
provide standardized software for filing reports
electronically; requires candidates' use of such software; and
requires FEC to post information received electronically on
Internet as soon as practicable.
Sec. 308. Modification of contribution limits
In Presidential and Senate elections: raises limit
on individual contributions to candidates to $2,000 per
candidate, per election (in House elections: retains $1,000
limit).
Raises limit on individual contributions to
national party committees to $25,000 per year.
Raises aggregate individual limit on all
contributions to federal candidates, PACs, and parties to
$37,500 per year (*superceding $30,000 limit in sec. 102).
Raises special limit on combined contributions to
Senate candidates by national and senatorial party committees
to $35,000 in year of election.
Provides for indexing for inflation of limits on
individual contributions to candidates and national parties, on
aggregate annual individual contributions, and on party
contributions to Senate candidates, in odd-numbered years
beginning in 2003, with 2001 as the base year and all amounts
rounded to the nearest $100.
Sec. 309. Donations to presidential inaugural committee
Requires disclosure to FEC of donations of over
$200 to presidential inaugural committees within 90 days of
event.
Bans foreign national donations to inaugural
committees.
Sec. 310. Prohibition on fraudulent solicitation of funds
Prohibits fraudulent misrepresentation in the
solicitation of campaign funds.
Sec. 311. Study and report on clean money, clean elections laws
Directs GAO to study and report to Congress
statistics for and effects of public funding systems in Arizona
and Maine.
Sec. 312. Clarity standards for identification of sponsors of election-
related advertising
Requires sponsorship identification on all
election-related advertising (including electioneering
communications) by political committees and enhanced visibility
of such identification in the communication.
Sec. 313. Increase in penalties
Increases criminal penalties for knowing and
willful violations involving contributions, expenditures, or
donations in amounts aggregating from $2,000 to $25,000 in a
year: a fine under Title 18 or up to one year in prison, or
both.
Increases criminal penalties for knowing and
willful violations involving amounts aggregating $25,000 or
more: a fine under Title 18 or up to five years in prison, or
both.
Sec. 314. Statute of limitations
Changes statute of limitations for criminal
violations of federal election law, from three to five years.
Sec. 315. Sentencing guidelines
Directs U.S. Sentencing Commission to promulgate
guidelines and make legislative or administrative
recommendations regarding penalties for violating federal
election law, per specified considerations.
Sec. 316. Increase in penalties imposed for violations of conduit
contribution ban
Imposes specific penalties for knowing and willful
violations of ban on contributions made in the name of another:
(a) in civil cases: between 300% of violation amount and the
greater of $50,000 or 1000% of violation amount; and (b) in
criminal cases: two years in prison for up to $25,000 violation
amount, or fine of between 300% of violation amount and the
greater of $50,000 or 1000% of violation amount, or prison and
fine.
Sec. 317. Restriction on increased contribution limits by taking into
account candidate's available funds
In Senate elections: in calculating opposition
personal funds amount, considers candidate warchests, by
including gross receipts advantage of candidate opposed by
wealthy candidate (i.e., 50% of gross receipts of candidate
minus 50% of gross receipts of wealthy opponent, as of June 30
and Dec. 31 of year before election).
Sec. 318. Clarification of right of nationals of the United States to
make political contributions
Clarifies that ban on contributions and donations
from foreign nationals does not include U.S. nationals.
Sec. 319. Prohibition of contribution by minors
Prohibits contributions to candidates and
donations to party committees by individuals 17 years of age
and younger.
Sec. 320. Definition of contributions made through intermediary or
conduit for purposes of applying contribution limits
Considers contributions solicited by a candidate
to support his or her election and arranged or suggested to be
spent by or through an intermediary or conduit to assist that
candidate's election as a contribution to the candidate.
Sec. 321. Prohibiting authorized committees from forming joint
fundraising committees with political party committees
Prohibits federal candidates' authorized
committees from forming joint fundraising committees with any
party committee.
Sec. 322. Regulations to prohibit efforts to evade requirements
Requires FEC to promulgate regulations to prohibit
efforts to evade or circumvent limitations, prohibitions, and
reporting requirements of federal election law.
TITLE IV--SEVERABILITY; EFFECTIVE DATE
Sec. 401. Severability
If any provision of the Act or its amendments, or
its application to any person or circumstance, is held
unconstitutional, the remainder of the Act and its amendments,
and its application to any person or circumstance, shall not be
affected by the holding.
Sec. 402. Effective date
Generally, within 30 days of enactment.
Provides transition rules for spending of soft
money by national parties: (a) allows parties to spend without
restriction soft money raised between effective date and 90
days thereafter; (b) until March 31, 2002, national parties may
transfer soft money funds to state or local parties or to
Sec. 501(c) or Sec. 527 tax-exempt organizations; and (c) at
any time after the effective date, national parties may use
such funds to defray costs of construction or purchase of a
party office building or facility.
Sec. 403. Judicial review
Provides for expedited review to the U.S. District
Court for D.C. (and exclusive venue) for declaratory judgment
and injunctive relief on constitutional grounds; provides
direct appeal to the U.S. Supreme Court from any final order or
judgment; and provides for expedited consideration by both
courts.
Provides that if any person aggrieved by the
statute brings an action for declaratory or injunctive relief,
which challenges the constitutionality and names the U.S. as
defendant, within 90 days of enactment: (a) action shall be
heard by three-judge court in the U.S. District Court for D.C.;
(b) copy of complaint shall be delivered promptly to Clerk of
the House and Secretary of the Senate; (c) a final decision
shall be reviewable only by direct appeal to U.S. Supreme
Court; and (d) expedited consideration shall be provided by
both courts.
Further provides that in any action challenging
the constitutionality, any Member of the House or Senate shall
have the right to intervene.
TITLE V--ADDITIONAL DISCLOSURE PROVISIONS
Sec. 501. Internet access to records
Requires all reports filed with FEC to be posted
on Internet and available for inspection within 48 hours, or 24
hours if filed electronically.
Sec. 502. Maintenance of website of election reports
Requires FEC to maintain central web site of all
publicly available election-related reports
Sec. 503. Additional monthly and quarterly disclosure reports
Requires candidates to file monthly reports in
election years and quarterly reports in non-election years
Requires national party committees to file monthly
reports in all years
Sec. 504. Public access to broadcasting records
Requires broadcasters to maintain and make
available for public inspection: records of broadcast time
requests by candidates or by other entities whose message
relates to political matters of national importance, including
messages about a legally qualified candidate, a federal
election, or a legislative issue of public importance
Requires records to include: whether request was
accepted; rate charged; date and time message aired; class of
time purchased; identification of candidate and office,
election, or issue referred to; and identity of purchaser,
including officers of any non-candidate entity
Committee Consideration of the Legislation
INTRODUCTION AND REFFERAL
On January 31, 2001, Mr. Shays introduced H.R. 380, which
was referred to the Committee on House Administration, and in
addition to the Committees on Education and the Workforce,
Government Reform, the Judiciary, Ways and Means, and Rules,
for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned.
On May 22, 2001, the House received S. 27, a bill
introduced by Senator McCain and Senator Feingold that had been
adopted by the Senate, and was referred to the Committee on
House Administration, and in addition to the Committees on
Energy and Commerce, and the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the
jurisdiction of the committee concerned.
On June 28, 2001, Mr. Shays and Mr. Meehan introduced H.R.
2356, which was referred to the Committee on House
Administration, and in addition to the Committees on Energy and
Commerce, and the Judiciary, for a period to be subsequently
determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the
committee concerned.
HEARINGS
The Committee on House Administration held five hearings on
campaign finance reform over four months in 2001.
On March 17, 2001, the Committee held the first hearing on
Campaign Finance Reform. This hearing was a field hearing, held
in Phoenix, Arizona. Members present: Mr. Ney, Mr. Ehlers, Mr.
Mica, Mr. Linder, Mr. Doolittle. Witnesses: Eleanor Eisenberg,
Executive Director, Arizona Civil Liberties Union; Lynn Wardle,
Professor, J. Reuben Clarke Law School, Brigham Young
University; Ann Eschinger, President, Arizona League of Women
Voters; Landis Aiden, Citizen Activist; Senator Scott
Bundgaard, Arizona State Legislature; Dennis Burke, Executive
Director, Arizona Good Government Association; Joseph F. Yuhas,
Executive Director, Arizona Restaurant Association; Lee Ann
Elliott, Former Chairperson of the Federal Election Commission.
On May 1, 2001, the Committee held its second hearing on
Campaign Finance Reform. Members present: Mr. Ney, Mr. Ehlers,
Mr. Linder, Mr. Hoyer, Mr. Fattah, Mr. Davis Witnesses: Mr.
Gephardt, Mr. DeLay, Mr. Shays, Mr. Meehan, Senator Hagel,
Senator McConnell, Senator Feingold.
On June 14, 2001, the Committee held its third hearing on
Campaign Finance Reform. Members present were: Mr. Ney, Mr.
Mica, Mr. Linder, Mr. Reynolds, Mr. Hoyer and Mr. Davis.
Witnesses: James Bopp, Jr., Bopp, James Madison Center for Free
Speech; Cleta Mitchell, Foley & Lardner; Joel M. Gora,
Professor, Brooklyn Law School, former Associate Legal
Director, American Civil Liberties Union; Laurence Gold,
Associate General Counsel, AFL-CIO; E. Joshua Rosenkranz,
President & CEO, Brennan Center for Justice; Donald J. Simon,
General Counsel, Common Cause.
On June 21, 2001, the Committee held its fourth hearing on
Campaign Finance Reform. Members present: Mr. Ney, Mr. Ehlers,
Mr. Linder and Mr. Hoyer. Witnesses: Mr. Hutchinson testified
on H.R. 1150, Mr. Wynn, Mr. Price (NC) testified on H.R. 156,
Mr. Terry testified on H.R. 1039, Ms. Mink testified on H.R.
289, Mr. Linder testified on H.R. 1080, Mr. Moore testified on
H.R. 365, Mr. Doolittle testified on H.R. 1444, Mr. Tierney
testified on H.R. 1637, Mr. Faleomavaega testified on H.R.
1447. Mr Linder introduced the written testimony of Phil Kent,
President, Southeastern Legal Foundation.
On June 28, 2001, the Committee held its fifth hearing on
Campaign Finance reform. Members present: Mr. Ney, Mr. Ehlers,
Mr. Mica, Mr. Linder, Mr. Doolittle, Mr. Reynolds, Mr. Hoyer,
Mr. Fattah, Mr. Davis. Witnesses: Mr. Petri testified on H.R.
150 and H.R. 151, Mr. Bereuter testified on H.R. 35, Mr. Shaw
testified on H.R. 1516, Mr. English testified on H.R. 1445, Mr.
Calvert testified on H.R. 2122, Mr. Barr and Mr. Gonzalez.
MARKUP
On Thursday, June 28, 2001, the Committee met to mark up
H.R. 2360 and H.R. 2356. The Committee unfavorably reported
H.R. 2356 by recorded vote (5-3) a quorum being present. No
amendments were offered to H.R. 2356.
Matters Required Under the Rules of the House
COMMITTEE RECORD VOTES
Clause 3(b) of House rule XII 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. 2356 occurred on the vote to report the
bill unfavorably to the House.
------------------------------------------------------------------------
Member Yes No Present
------------------------------------------------------------------------
Mr. Ney................................ X ......... .........
Mr. Ehlers............................. X ......... .........
Mr. Mica............................... X ......... .........
Mr. Linder............................. X ......... .........
Mr. Doolittle.......................... X ......... .........
Mr. Reynolds........................... X ......... .........
Mr. Hoyer.............................. ......... X .........
Mr. Fattah............................. ......... X .........
Mr. Davis.............................. ......... X .........
--------------------------------
Total............................ 5 3 .........
------------------------------------------------------------------------
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 HOUSE ADMINISTRATION
The Committee states, with respect to clause 3(c)(4) of
rule XII of the Rules of the House of Representatives, that the
Committee on Government Reform and Oversight did not submit
findings or recommendations based on investigations under
clause 4(c)(2) of rule X of the Rules of the House of
Representatives.
CONSTITUTIONAL AUTHORITY
In compliance with clause 3(d)(1) of rule XIII, the
Committee states that Article 1, Section 4 of the U.S.
Constitution grants Congress the authority to make laws
governing the time, place and manner of holding Federal
elections.
FEDERAL MANDATES
The Committee states, with respect to section 423 of the
Congressional Budget Act of 1974, that the bill does not
include any significant Federal mandate.
PREEMPTION CLARIFICATION
Section 423 of the Congressional Budget Act of 1974
requires the report of any committee on a bill or joint
resolution to include a committee statement on the extent to
which the bill or joint resolution is intended to preempt state
or local law. The Committee states that H.R. 2360 is not
intended to preempt any state or local law.
COMMITTEE COST ESTIMATE
Clause 3(c)(2) of rule XII requires each committee report
that accompanies a measure providing new budget authority, new
spending 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 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.
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:
(CBO ESTIMATE NOT AVAILABLE AT TIME OF FILING)
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) The term ``contribution'' includes--
(i) any gift, subscription, loan, advance, or deposit
of money or anything of value made by any person for
the purpose of influencing any election for Federal
office; [or]
(ii) the payment by any person of compensation for
the personal services of another person which are
rendered to a political committee without charge for
any [purpose.] purpose;
(iii) any coordinated expenditure or other
disbursement made by any person in connection with a
candidate's election, regardless of whether the
expenditure or disbursement is for a communication that
contains express advocacy; or
(iv) any coordinated expenditure or other
disbursement made in coordination with a national
committee, State committee, or other political
committee of a political party by a person (other than
a candidate or a candidate's authorized committee) in
connection with an election, regardless of whether the
expenditure or disbursement is for a communication that
contains express advocacy.
(B) The term ``contribution'' does not include--
(i) * * *
* * * * * * *
[(viii) any gift, subscription, loan, advance, or
deposit of money or anything of value to a national or
a State committee of a political party specifically
designated to defray any cost for construction or
purchase of any office facility not acquired for the
purpose of influencing the election of any candidate in
any particular election for Federal office;]
[(ix)] (viii) any legal or accounting services
rendered to or on behalf of--
(I) * * *
* * * * * * *
[(x)] (ix) the payment by a State or local committee
of a political party of the costs of campaign materials
(such as pins, bumper stickers, handbills, brochures,
posters, party tabloids, and yard signs) used by such
committee in connection with volunteer activities on
behalf of nominees of such party: Provided, That--
(1) * * *
* * * * * * *
[(xi)] (x) the payment by a candidate, for nomination
or election to any public office (including State or
local office), or authorized committee of a candidate,
of the costs of campaign materials which include
information on or reference to any other candidate and
which are used in connection with volunteer activities
(including pins, bumper stickers, handbills, brochures,
posters, and yard signs, but not including the use of
broadcasting, newspapers, magazines, billboards, direct
mail, or similar types of general public communication
or political advertising): Provided, That such payments
are made from contributions subject to the limitations
and prohibitions of this Act;
[(xii)] (xi) the payment by a State or local
committee of a political party of the costs of voter
registration and get-out-the-vote activities conducted
by such committee on behalf of nominees of such party
for President and Vice President: Provided, That--
(1) * * *
* * * * * * *
[(xiii)] (xii) 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;
[(xiv)] (xiii) any honorarium (within the meaning of
section 323 of this Act); and
[(xv)] (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 derived from an advance on the
candidate's brokerage account, credit card, home equity
line of credit, or other line of credit in the normal
course of the person's business.
(C) For purposes of subparagraph (A)(iii) and (iv), the term
``coordinated expenditure or other disbursement'' means a
payment made in concert or cooperation with, at the request or
suggestion of, or pursuant to any general or particular
understanding with, such candidate, the candidate's authorized
political committee, or their agents, or a political party
committee or its agents.
* * * * * * *
[(17) The term ``independent expenditure'' means an
expenditure by a person expressly advocating the election or
defeat of a clearly identified candidate which is made without
cooperation or consultation with any candidate, or any
authorized committee or agent of such candidate, and which is
not made in concert with, or at the request or suggestion of,
any candidate, or any authorized committee or agent of such
candidate.]
(17) Independent expenditure.--The term ``independent
expenditure'' means an expenditure by a person--
(A) expressly advocating the election or
defeat of a clearly identified candidate; and
(B) that is not made in concert or
cooperation with, at the request or suggestion
of, or pursuant to any general or particular
understanding with, such candidate, the
candidate's authorized political committee, or
their agents, or a political party committee or
its agents.
* * * * * * *
(20) Federal election activity.--
(A) In general.--The term ``Federal election
activity'' means--
(i) voter registration activity
during the period that begins on the
date that is 120 days before the date a
regularly scheduled Federal election is
held and ends on the date of the
election;
(ii) voter identification, get-out-
the-vote activity, or generic campaign
activity conducted in connection with
an election in which a candidate for
Federal office appears on the ballot
(regardless of whether a candidate for
State or local office also appears on
the ballot);
(iii) a public communication that
refers to a clearly identified
candidate for Federal office
(regardless of whether a candidate for
State or local office is also mentioned
or identified) and that promotes or
supports a candidate for that office,
or attacks or opposes a candidate for
that office (regardless of whether the
communication expressly advocates a
vote for or against a candidate); or
(iv) services provided during any
month by an employee of a State,
district, or local committee of a
political party who spends more than 25
percent of that individual's
compensated time during that month on
activities in connection with a Federal
election.
(B) Excluded activity.--The term ``Federal
election activity'' does not include an amount
expended or disbursed by a State, district, or
local committee of a political party for--
(i) a public communication that
refers solely to a clearly identified
candidate for State or local office, if
the communication is not a Federal
election activity described in
subparagraph (A)(i) or (ii);
(ii) a contribution to a candidate
for State or local office, provided the
contribution is not designated or used
to pay for a Federal election activity
described in subparagraph (A);
(iii) the costs of a State, district,
or local political convention;
(iv) the costs of grassroots campaign
materials, including buttons, bumper
stickers, and yard signs, that name or
depict only a candidate for State or
local office; and
(v) the cost of constructing or
purchasing an office facility or
equipment for a State, district, or
local committee.
(21) Generic campaign activity.--The term ``generic
campaign activity'' means a campaign activity that
promotes a political party and does not promote a
candidate or non-Federal candidate.
(22) Public communication.--The term ``public
communication'' means a communication by means of any
broadcast, cable, or satellite communication,
newspaper, magazine, outdoor advertising facility, mass
mailing, or telephone bank to the general public, or
any other form of general public political advertising.
(23) Mass mailing.--The term ``mass mailing'' means a
mailing by United States mail or facsimile of more than
500 pieces of mail matter of an identical or
substantially similar nature within any 30-day period.
(24) Telephone bank.--The term ``telephone bank''
means more than 500 telephone calls of an identical or
substantially similar nature within any 30-day period.
(25) Election cycle.--The term ``election cycle''
means the period beginning on the day after the date of
the most recent election for the specific office or
seat that a candidate is seeking and ending on the date
of the next election for that office or seat. For
purposes of the preceding sentence, a primary election
and a general election shall be considered to be
separate elections.
(26) Personal funds.--The term ``personal funds''
means an amount that is derived from--
(A) any asset that, under applicable State
law, at the time the individual became a
candidate, the candidate had legal right of
access to or control over, and with respect to
which the candidate had--
(i) legal and rightful title; or
(ii) an equitable interest;
(B) income received during the current
election cycle of the candidate, including--
(i) a salary and other earned income
from bona fide employment;
(ii) dividends and proceeds from the
sale of the candidate's stocks or other
investments;
(iii) bequests to the candidate;
(iv) income from trusts established
before the beginning of the election
cycle;
(v) income from trusts established by
bequest after the beginning of the
election cycle of which the candidate
is the beneficiary;
(vi) gifts of a personal nature that
had been customarily received by the
candidate prior to the beginning of the
election cycle; and
(vii) proceeds from lotteries and
similar legal games of chance; and
(C) a portion of assets that are jointly
owned by the candidate and the candidate's
spouse equal to the candidate's share of the
asset under the instrument of conveyance or
ownership, but if no specific share is
indicated by an instrument of conveyance or
ownership, the value of \1/2\ of the property.
organization of political committees
Sec. 302. (a) * * *
* * * * * * *
(e)(1) * * *
* * * * * * *
(6) No authorized committee of a candidate for Federal office
may form a joint fundraising committee with any political
committee of a political party.
* * * * * * *
reports
Sec. 304. (a)(1) * * *
(2) If the political committee is the principal campaign
committee of a candidate for the House of Representatives or
for the Senate--
(A) in any calendar year during which there is
regularly scheduled election for which such candidate
is seeking election, or nomination for election, the
treasurer shall file the following reports:
(i) * * *
* * * * * * *
[(iii) additional quarterly reports, which
shall be filed no later than the 15th day after
the last day of each calendar quarter, and
which shall be complete as of the last day of
each calendar quarter: except that the report
for the quarter ending December 31 shall be
filed no later than January 31 of the following
calendar year; and]
(iii) additional monthly reports, which shall
be filed not later than the 20th day after the
last day of the month and shall be complete as
of the last day of the month, except that
monthly reports shall not be required under
this clause in November and December and a year
end report shall be filed not later than
January 31 of the following calendar year.
(B) in any other calendar year [the following reports
shall be filed:
[(i) a report covering the period beginning
January 1 and ending June 30, which shall be
filed no later than July 31; and
[(ii) a report covering the period beginning
July 1 and ending December 31, which shall be
filed no later than January 31 of the following
calendar year.] the treasurer shall file
quarterly reports, which shall be filed not
later than the 15th day after the last day of
each calendar quarter, and which shall be
complete as of the last day of each calendar
quarter, except that the report for the quarter
ending December 31 shall be filed not later
than January 31 of the following calendar year.
(3) If the committee is the principal campaign committee of a
candidate for the office of President--
(A) in any calendar year during which a general
election is held to fill such office--
(i) * * *
(ii) the treasurer of the other principal
campaign committees of a candidate for the
office of President shall file a pre-election
report or reports in accordance with paragraph
(2)(A)(i), a post-general election report in
accordance with paragraph (2)(A)(ii), and
[quarterly reports] monthly reports in
accordance with paragraph (2)(A)(iii); and
* * * * * * *
(4) All political committees other than authorized committees
of a candidate shall file either--
(A)(i) * * *
* * * * * * *
(iv) in any other calendar year, a report covering
the period beginning January 1 and ending June 30,
which shall be filed no later than July 31 and a report
covering the period beginning July 1 and ending
December 31, which shall be filed no later than January
31 of the following calendar year; or
Notwithstanding the preceding sentence, a national committee of
a political party shall file the reports required under
subparagraph (B).
* * * * * * *
(5) If a designation, report, or statement filed pursuant to
this Act (other than under paragraph (2)(A)(i) 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) * * *
(B) Notification of expenditure from personal funds.--
(i) Definition of expenditure from personal funds.--
In this subparagraph, the term ``expenditure from
personal funds'' means--
(I) an expenditure made by a candidate using
personal funds; and
(II) a contribution or loan made by a
candidate using personal funds or a loan
secured using such funds to the candidate's
authorized committee.
(ii) Declaration of intent.--Not later than the date
that is 15 days after the date on which an individual
becomes a candidate for the office of Senator, the
candidate shall file a declaration stating the total
amount of expenditures from personal funds that the
candidate intends to make, or to obligate to make, with
respect to the election that will exceed the State-by-
State competitive and fair campaign formula with--
(I) the Commission; and
(II) each candidate in the same election.
(iii) Initial notification.--Not later than 24 hours
after a candidate described in clause (ii) makes or
obligates to make an aggregate amount of expenditures
from personal funds in excess of 2 times the threshold
amount in connection with any election, the candidate
shall file a notification with--
(I) the Commission; and
(II) each candidate in the same election.
(iv) Additional notification.--After a candidate
files an initial notification under clause (iii), the
candidate shall file an additional notification each
time expenditures from personal funds are made or
obligated to be made in an aggregate amount that exceed
$10,000 with--
(I) the Commission; and
(II) each candidate in the same election.
Such notification shall be filed not later than 24
hours after the expenditure is made.
(v) Contents.--A notification under clause (iii) or
(iv) shall include--
(I) the name of the candidate and the office
sought by the candidate;
(II) the date and amount of each expenditure;
and
(III) the total amount of expenditures from
personal funds that the candidate has made, or
obligated to make, with respect to an election
as of the date of the expenditure that is the
subject of the notification.
(C) Notification of disposal of excess contributions.--In the
next regularly scheduled report after the date of the election
for which a candidate seeks nomination for election to, or
election to, Federal office, the candidate or the candidate's
authorized committee shall submit to the Commission a report
indicating the source and amount of any excess contributions
(as determined under paragraph (1) of section 315(i)) and the
manner in which the candidate or the candidate's authorized
committee used such funds.
(D) Enforcement.--For provisions providing for the
enforcement of the reporting requirements under this paragraph,
see section 309.
[(B)] (E) The notification required under this paragraph
shall be in addition to all other reporting requirements under
this Act.
* * * * * * *
(8) The requirement for a political committee to file a
[quarterly report under paragraph (2)(A)(iii) or paragraph
(4)(A)(i)] monthly report under paragraph (2)(A)(iii) or
paragraph (4)(A) shall be waived if such committee is required
to file a pre-election report under paragraph (2)(A)(i), or
paragraph (4)(A)(ii) during the period beginning on the 5th day
after the close of the calendar quarter and ending on the 15th
day after the close of the calendar quarter.
* * * * * * *
(11)(A) * * *
[(B) The Commission shall make a designation, statement,
report, or notification that is filed electronically with the
Commission accessible to the public on the Internet not later
than 24 hours after the designation, statement, report, or
notification is received by the Commission.]
(B) The Commission shall make a designation, statement,
report, or notification that is filed with the Commission under
this Act available for inspection by the public in the offices
of the Commission and accessible to the public on the Internet
not later than 48 hours (or not later than 24 hours in the case
of a designation, statement, report, or notification filed
electronically) after receipt by the Commission.
(12) Software for filing of reports.--
(A) In general.--The Commission shall--
(i) promulgate standards to be used
by vendors to develop software that--
(I) permits candidates to
easily record information
concerning receipts and
disbursements required to be
reported under this Act at the
time of the receipt or
disbursement;
(II) allows the information
recorded under subclause (I) to
be transmitted immediately to
the Commission; and
(III) allows the Commission
to post the information on the
Internet immediately upon
receipt; and
(ii) make a copy of software that
meets the standards promulgated under
clause (i) available to each person
required to file a designation,
statement, or report in electronic form
under this Act.
(B) Additional information.--To the extent
feasible, the Commission shall require vendors
to include in the software developed under the
standards under subparagraph (A) the ability
for any person to file any designation,
statement, or report required under this Act in
electronic form.
(C) Required use.--Notwithstanding any
provision of this Act relating to times for
filing reports, each candidate for Federal
office (or that candidate's authorized
committee) shall use software that meets the
standards promulgated under this paragraph once
such software is made available to such
candidate.
(D) Required posting.--The Commission shall,
as soon as practicable, post on the Internet
any information received under this paragraph.
(c)(1) * * *
(2) Statements required to be filed by this subsection shall
be filed in accordance with subsection (a)(2), and shall
include--
(A) * * *
* * * * * * *
(C) the identification of each person who made a
contribution in excess of $200 to the person filing
such statement which was made for the purpose of
furthering an independent expenditure.
[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 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.]
* * * * * * *
(e) Political Committees.--
(1) National and congressional political
committees.--The national committee of a political
party, any national congressional campaign committee of
a political party, and any subordinate committee of
either, shall report all receipts and disbursements
during the reporting period.
(2) Other political committees to which section 323
applies.--
(A) In general.--In addition to any other
reporting requirements applicable under this
Act, a political committee (not described in
paragraph (1)) to which section 323(b)(1)
applies shall report all receipts and
disbursements made for activities described in
section 301(20)(A).
(B) Specific disclosure by state and local
parties of certain nonfederal amounts permitted
to be spent on federal election activity.--Each
report by a political committee under
subparagraph (A) of receipts and disbursements
made for activities described in section
301(20)(A) shall include a disclosure of all
receipts and disbursements made section
323(b)(2)(A) and (B).
(3) Itemization.--If a political committee has
receipts or disbursements to which this subsection
applies from or to any person aggregating in excess of
$200 for any calendar year, the political committee
shall separately itemize its reporting for such person
in the same manner as required in paragraphs (3)(A),
(5), and (6) of subsection (b).
(4) Reporting periods.--Reports required to be filed
under this subsection shall be filed for the same time
periods required for political committees under
subsection (a)(4)(B).
(f) Disclosure of Electioneering Communications.--
(1) Statement required.--Every person who makes a
disbursement for the direct costs of producing and
airing electioneering communications in an aggregate
amount in excess of $10,000 during any calendar year
shall, within 24 hours of each disclosure date, file
with the Commission a statement containing the
information described in paragraph (2).
(2) Contents of statement.--Each statement required
to be filed under this subsection shall be made under
penalty of perjury and shall contain the following
information:
(A) The identification of the person making
the disbursement, of any person sharing or
exercising direction or control over the
activities of such person, and of the custodian
of the books and accounts of the person making
the disbursement.
(B) The principal place of business of the
person making the disbursement, if not an
individual.
(C) The amount of each disbursement of more
than $200 during the period covered by the
statement and the identification of the person
to whom the disbursement was made.
(D) The elections to which the electioneering
communications pertain and the names (if known)
of the candidates identified or to be
identified.
(E) If the disbursements were paid out of a
segregated bank account which consists of funds
contributed solely by individuals who are
United States citizens or nationals or lawfully
admitted for permanent residence as defined in
section 1101(a)(2) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(2)) directly
to this account for electioneering
communications, the names and addresses of all
contributors who contributed an aggregate
amount of $1,000 or more to that account during
the period beginning on the first day of the
preceding calendar year and ending on the
disclosure date. Nothing in this subparagraph
is to be construed as a prohibition on the use
of funds in such a segregated account for a
purpose other than electioneering
communications.
(F) If the disbursements were paid out of
funds not described in subparagraph (E), the
names and addresses of all contributors who
contributed an aggregate amount of $1,000 or
more to the person making the disbursement
during the period beginning on the first day of
the preceding calendar year and ending on the
disclosure date.
(3) Electioneering communication.--For purposes of
this subsection--
(A) In general.--(i) The term
``electioneering communication'' means any
broadcast, cable, or satellite communication
which--
(I) refers to a clearly identified
candidate for Federal office;
(II) is made within--
(aa) 60 days before a
general, special, or runoff
election for the office sought
by the candidate; or
(bb) 30 days before a primary
or preference election, or a
convention or caucus of a
political party that has
authority to nominate a
candidate, for the office
sought by the candidate; and
(III) in the case of a communication
which refers to a candidate for an
office other than President or Vice
President, is targeted to the relevant
electorate.
(ii) If clause (i) is held to be
constitutionally insufficient by final judicial
decision to support the regulation provided
herein, then the term ``electioneering
communication'' means any broadcast, cable, or
satellite communication which promotes or
supports a candidate for that office, or
attacks or opposes a candidate for that office
(regardless of whether the communication
expressly advocates a vote for or against a
candidate) and which also is suggestive of no
plausible meaning other than an exhortation to
vote for or against a specific candidate.
Nothing in this subparagraph shall be construed
to affect the interpretation or application of
section 100.22(b) of title 11, Code of Federal
Regulations.
(B) Exceptions.--The term ``electioneering
communication'' does not include--
(i) a communication appearing in a
news story, commentary, or editorial
distributed through the facilities of
any broadcasting station, unless such
facilities are owned or controlled by
any political party, political
committee, or candidate;
(ii) a communication which
constitutes an expenditure or an
independent expenditure under this Act;
(iii) a communication which
constitutes a candidate debate or forum
conducted pursuant to regulations
adopted by the Commission, or which
solely promotes such a debate or forum
and is made by or on behalf of the
person sponsoring the debate or forum;
or
(iv) any other communication exempted
under such regulations as the
Commission may promulgate (consistent
with the requirements of this
paragraph) to ensure the appropriate
implementation of this paragraph,
except that under any such regulation a
communication may not be exempted if it
meets the requirements of this
paragraph and is described in section
301(20)(A)(iii).
(C) Targeting to relevant electorate.--For
purposes of this paragraph, a communication
which refers to a clearly identified candidate
for Federal office is ``targeted to the
relevant electorate'' if the communication can
be received by 50,000 or more persons--
(i) in the district the candidate
seeks to represent, in the case of a
candidate for Representative in, or
Delegate or Resident Commissioner to,
the Congress; or
(ii) in the State the candidate seeks
to represent, in the case of a
candidate for Senator.
(4) Disclosure date.--For purposes of this
subsection, the term ``disclosure date'' means--
(A) the first date during any calendar year
by which a person has made disbursements for
the direct costs of producing or airing
electioneering communications aggregating in
excess of $10,000; and
(B) any other date during such calendar year
by which a person has made disbursements for
the direct costs of producing or airing
electioneering communications aggregating in
excess of $10,000 since the most recent
disclosure date for such calendar year.
(5) Contracts to disburse.--For purposes of this
subsection, a person shall be treated as having made a
disbursement if the person has executed a contract to
make the disbursement.
(6) Coordination with other requirements.--Any
requirement to report under this subsection shall be in
addition to any other reporting requirement under this
Act.
(7) Coordination with internal revenue code.--Nothing
in this subsection may be construed to establish,
modify, or otherwise affect the definition of political
activities or electioneering activities (including the
definition of participating in, intervening in, or
influencing or attempting to influence a political
campaign on behalf of or in opposition to any candidate
for public office) for purposes of the Internal Revenue
Code of 1986.
(g) Time for Reporting Certain Expenditures.--
(1) Expenditures aggregating $1,000.--
(A) Initial report.--A person (including a
political committee) that makes or contracts to
make independent expenditures aggregating
$1,000 or more after the 20th day, but more
than 24 hours, before the date of an election
shall file a report describing the expenditures
within 24 hours.
(B) Additional reports.--After a person files
a report under subparagraph (A), the person
shall file an additional report within 24 hours
after each time the person makes or contracts
to make independent expenditures aggregating an
additional $1,000 with respect to the same
election as that to which the initial report
relates.
(2) Expenditures aggregating $10,000.--
(A) Initial report.--A person (including a
political committee) that makes or contracts to
make independent expenditures aggregating
$10,000 or more at any time up to and including
the 20th day before the date of an election
shall file a report describing the expenditures
within 48 hours.
(B) Additional reports.--After a person files
a report under subparagraph (A), the person
shall file an additional report within 48 hours
after each time the person makes or contracts
to make independent expenditures aggregating an
additional $10,000 with respect to the same
election as that to which the initial report
relates.
(3) Place of filing; contents.--A report under this
subsection--
(A) shall be filed with the Commission; and
(B) shall contain the information required by
subsection (b)(6)(B)(iii), including the name
of each candidate whom an expenditure is
intended to support or oppose.
(h) Reports From Inaugural Committees.--The Federal Election
Commission shall make any report filed by an Inaugural
Committee under section 510 of title 36, United States Code,
accessible to the public at the offices of the Commission and
on the Internet not later than 48 hours after the report is
received by the Commission.
enforcement
Sec. 309. (a)(1) * * *
* * * * * * *
(5)(A) * * *
(B) If the Commission believes that a knowing and willful
violation of this Act or of chapter 95 or chapter 96 of the
Internal Revenue Code of 1954 has been committed, a
conciliation agreement entered into by the Commission under
paragraph (4)(A) may require that the person involved in such
conciliation agreement shall pay a civil penalty which does not
exceed the greater of $10,000 or an amount equal to 200 percent
of any contribution or expenditure involved in such violation
(or, in the case of a violation of section 320, which is not
less than 300 percent of the amount involved in the violation
and is not more than the greater of $50,000 or 1000 percent of
the amount involved in the violation).
(6)(A) * * *
* * * * * * *
(C) In any civil action for relief instituted by the
Commission under subparagraph (A), if the court determines that
the Commission has established that the person involved in such
civil action has committed a knowing and willful violation of
this Act or of chapter 95 or chapter 96 of the Internal Revenue
Code of 1954, the court may impose a civil penalty which does
not exceed the greater of $10,000 or an amount equal to 200
percent of any contribution or expenditure involved in such
violation (or, in the case of a violation of section 320, which
is not less than 300 percent of the amount involved in the
violation and is not more than the greater of $50,000 or 1000
percent of the amount involved in the violation).
(b) Before taking any action under subsection (a) against any
person who has failed to file a report required under section
304(a)(2)(A)(iii) for the [calendar quarter] month immediately
preceding the election involved, or in accordance with section
304(a)(2)(A)(i), the Commission shall notify the person of such
failure to file the required reports. If a satisfactory
response is not received within 4 business days after the date
of notification, the Commission shall, pursuant to section
311(a)(7), publish before the election the name of the person
and the report or reports such person has failed to file.
* * * * * * *
(d)(1)[(A) Any person who knowingly and willfully commits a
violation of any provision of this Act which involves the
making, receiving, or reporting of any contribution or
expenditure aggregating $2,000 or more during a calendar year
shall be fined, or imprisoned for not more than one year, or
both. The amount of this fine shall not exceed the greater of
$25,000 or 300 percent of any contribution or expenditure
involved in such violation.] (A) Any person who knowingly and
willfully commits a violation of any provision of this Act
which involves the making, receiving, or reporting of any
contribution, donation, or expenditure--
(i) aggregating $25,000 or more during a calendar
year shall be fined under title 18, United States Code,
or imprisoned for not more than 5 years, or both; or
(ii) aggregating $2,000 or more (but less than
$25,000) during a calendar year shall be fined under
such title, or imprisoned for not more than one year,
or both.
* * * * * * *
(D) Any person who knowingly and willfully commits a
violation of section 320 involving an amount aggregating more
than $10,000 during a calendar year shall be--
(i) imprisoned for not more than 2 years if the
amount is less than $25,000 (and subject to
imprisonment under subparagraph (A) if the amount is
$25,000 or more);
(ii) fined not less than 300 percent of the amount
involved in the violation and not more than the greater
of--
(I) $50,000; or
(II) 1,000 percent of the amount involved in
the violation; or
(iii) both imprisoned under clause (i) and fined
under clause (ii).
* * * * * * *
[use of contributed amounts for certain purposes
[Sec. 313. Amounts received by a candidate as contributions
that are in excess of any amount necessary to defray his
expenditures, and any other amounts contributed to an
individual for the purpose of supporting his or her activities
as a holder of Federal office, may be used by such candidate or
individual, as the case may be, to defray any ordinary and
necessary expenses incurred in connection with his or her
duties as a holder of Federal office, may be contributed to any
organization described in section 170(c) of the Internal
Revenue Code of 1954, or may be used for any other lawful
purpose, including transfers without limitation to any
national, State, or local committee of any political party;
except that no such amounts may be converted by any person to
any personal use, other than to defray any ordinary and
necessary expenses incurred in connection with his or her
duties as a holder of Federal office.]
SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.
(a) Permitted Uses.--A contribution accepted by a candidate,
and any other donation received by an individual as support for
activities of the individual as a holder of Federal office, may
be used by the candidate or individual--
(1) for otherwise authorized expenditures in
connection with the campaign for Federal office of the
candidate or individual;
(2) for ordinary and necessary expenses incurred in
connection with duties of the individual as a holder of
Federal office;
(3) for contributions to an organization described in
section 170(c) of the Internal Revenue Code of 1986; or
(4) for transfers to a national, State, or local
committee of a political party.
(b) Prohibited Use.--
(1) In general.--A contribution or donation described
in subsection (a) shall not be converted by any person
to personal use.
(2) Conversion.--For the purposes of paragraph (1), a
contribution or donation shall be considered to be
converted to personal use if the contribution or amount
is used to fulfill any commitment, obligation, or
expense of a person that would exist irrespective of
the candidate's election campaign or individual's
duties as a holder of Federal office, including--
(A) a home mortgage, rent, or utility
payment;
(B) a clothing purchase;
(C) a noncampaign-related automobile expense;
(D) a country club membership;
(E) a vacation or other noncampaign-related
trip;
(F) a household food item;
(G) a tuition payment;
(H) admission to a sporting event, concert,
theater, or other form of entertainment not
associated with an election campaign; and
(I) dues, fees, and other payments to a
health club or recreational facility.
* * * * * * *
limitations on contributions and expenditures
Sec. 315. (a)(1) [No person] Except as provided in subsection
(i), no person shall make contributions--
(A) to any candidate and his authorized political
committees with respect to any election for Federal
office which, in the aggregate, exceed [$1,000] $2,000
(or, in the case of a candidate for Representative in
or Delegate or Resident Commissioner to the Congress,
$1,000);
(B) to the political committees established and
maintained by a national political party, which are not
the authorized political committees of any candidate,
in any calendar year which, in the aggregate, exceed
[$20,000; or] $25,000;
(C) to any other political committee (other than a
committee described in subparagraph (D)) in any
calendar year which, in the aggregate, exceed
$5,000[.]; or
(D) to a political committee established and
maintained by a State committee of a political party in
any calendar year which, in the aggregate, exceed
$10,000.
(3) No individual shall make contributions aggregating more
than [$25,000] $37,500 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.
* * * * * * *
(7) For purposes of this subsection--
(A) * * *
[(B)(i) expenditures made by any person in
cooperation, consultation, or concert, with, or at the
request or suggestion of, a candidate, his authorized
political committees, or their agents shall be
considered to be a contribution to such candidate;
[(ii) the financing by any person of the
dissemination, distribution, or republication, in whole
or in part, of any broadcast or any written, graphic,
or other form of campaign materials prepared by the
candidate, his campaign committees, or their authorized
agents shall be considered to be an expenditure for
purposes of this paragraph; and]
(B) a coordinated expenditure or disbursement
described in--
(i) section 301(8)(A)(iii) shall be
considered to be a contribution to the
candidate and an expenditure by the candidate;
and
(ii) section 301(8)(A)(iv) shall be
considered to be a contribution to, and an
expenditure by, the political party committee;
(C) if--
(i) any person makes, or contracts to make,
any disbursement for any electioneering
communication (within the meaning of section
304(f)(3)); and
(ii) such disbursement is coordinated with a
candidate or an authorized committee of such
candidate, a Federal, State, or local political
party or committee thereof, or an agent or
official of any such candidate, party, or
committee;
such disbursement or contracting shall be treated as a
contribution to the candidate supported by the
electioneering communication or that candidate's party
and as an expenditure by that candidate or that
candidate's party; and
[(C)] (D) contributions made to or for the benefit of
any candidate nominated by a political party for
election to the office of Vice President of the United
States shall be considered to be contributions made to
or for the benefit of the candidate of such party for
election to the office of President of the United
States.
* * * * * * *
(8) For purposes of the limitations imposed by this section,
all contributions made by a person, either directly or
indirectly, on behalf of a particular candidate, [including
contributions which are in any way earmarked or otherwise
directed through an intermediary or conduit to such candidate,]
including contributions which are in any way earmarked or
otherwise arranged or directed through an intermediary or
conduit to such candidate, or solicited by such candidate to
support the candidate's election and arranged or suggested by
the candidate to be spent by or through an intermediary to
support or assist the candidate's election, shall be treated as
contributions from such person to such candidate. The
intermediary or conduit shall report the original source and
the intended recipient of such contribution to the Commission
and to the intended recipient.
* * * * * * *
(c)(1)(A) At the beginning 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.]
(B) Except as provided in subparagraph (C), in any calendar
year after 2002--
(i) a limitation established by subsection (a)(1)(A),
(a)(1)(B), (a)(3), (b), (d), or (h) shall be increased
by the percent difference determined under subparagraph
(A);
(ii) each amount so increased shall remain in effect
for the calendar year; and
(iii) if any amount after adjustment under clause (i)
is not a multiple of $100, such amount shall be rounded
to the nearest multiple of $100.
(C) In the case of limitations under subsections (a)(1)(A),
(a)(1)(B), (a)(3), and (h), increases shall only be made in
odd-numbered years and such increases shall remain in effect
for the 2-year period beginning on the first day following the
date of the last general election in the year preceding the
year in which the amount is increased and ending on the date of
the next general election.
(2) For purposes of paragraph (1)--
(A) * * *
(B) the term ``base period'' [means the calendar year
1974] means--
(i) for purposes of subsections (b) and (d),
calendar year 1974; and
(ii) for purposes of subsections (a)(1)(A),
(a)(1)(B), (a)(3), and (h) calendar year 2001.
(d)(1) Notwithstanding any other provision of law with
respect to limitations on expenditures or limitations on
contributions, the national committee of a political party and
a State committee of a political party, including any
subordinate committee of a State committee, may make
expenditures in connection with the general election campaign
of candidates for Federal office, subject to the limitations
contained in paragraphs (2) [and (3)], (3), and (4) of this
subsection.
* * * * * * *
(4) Independent versus coordinated expenditures by
party.--
(A) In general.--On or after the date on
which a political party nominates a candidate,
a committee of the political party shall not
make both expenditures under this subsection
and independent expenditures (as defined in
section 301(17)) with respect to the candidate
during the election cycle.
(B) Certification.--Before making a
coordinated expenditure under this subsection
with respect to a candidate, a committee of a
political party shall file with the Commission
a certification, signed by the treasurer of the
committee, that the committee, on or after the
date described in subparagraph (A), has not and
shall not make any independent expenditure with
respect to the candidate during the same
election cycle.
(C) Application.--For purposes of this
paragraph, all political committees established
and maintained by a national political party
(including all congressional campaign
committees) and all political committees
established and maintained by a State political
party (including any subordinate committee of a
State committee) shall be considered to be a
single political committee.
(D) Transfers.--A committee of a political
party that submits a certification under
subparagraph (B) with respect to a candidate
shall not, during an election cycle, transfer
any funds to, assign authority to make
coordinated expenditures under this subsection
to, or receive a transfer of funds from, a
committee of the political party that has made
or intends to make an independent expenditure
with respect to the candidate.
* * * * * * *
(h) Notwithstanding any other provision of this Act, amounts
totaling not more than [$17,500] $35,000 may be contributed to
a candidate for nomination for election, or for election, to
the United States Senate during the year in which an election
is held in which he is such a candidate, by the Republican or
Democratic Senatorial Campaign Committee, or the national
committee of a political party, or any combination of such
committees.
(i) Increased Limit to Allow Response to Expenditures From
Personal Funds.--
(1) Increase.--
(A) In general.--Subject to paragraph (2), if
the opposition personal funds amount with
respect to a candidate for election to the
office of Senator exceeds the threshold amount,
the limit under subsection (a)(1)(A) (in this
subsection referred to as the ``applicable
limit'') with respect to that candidate shall
be the increased limit.
(B) Threshold amount.--
(i) State-by-state competitive and
fair campaign formula.--In this
subsection, the threshold amount with
respect to an election cycle of a
candidate described in subparagraph (A)
is an amount equal to the sum of--
(I) $150,000; and
(II) $0.04 multiplied by the
voting age population.
(ii) Voting age population.--In this
subparagraph, the term ``voting age
population'' means in the case of a
candidate for the office of Senator,
the voting age population of the State
of the candidate (as certified under
section 315(e)).
(C) Increased limit.--Except as provided in
clause (ii), for purposes of subparagraph (A),
if the opposition personal funds amount is
over--
(i) 2 times the threshold amount, but
not over 4 times that amount--
(I) the increased limit shall
be 3 times the applicable
limit; and
(II) the limit under
subsection (a)(3) shall not
apply with respect to any
contribution made with respect
to a candidate if such
contribution is made under the
increased limit of subparagraph
(A) during a period in which
the candidate may accept such a
contribution;
(ii) 4 times the threshold amount,
but not over 10 times that amount--
(I) the increased limit shall
be 6 times the applicable
limit; and
(II) the limit under
subsection (a)(3) shall not
apply with respect to any
contribution made with respect
to a candidate if such
contribution is made under the
increased limit of subparagraph
(A) during a period in which
the candidate may accept such a
contribution; and
(iii) 10 times the threshold amount--
(I) the increased limit shall
be 6 times the applicable
limit;
(II) the limit under
subsection (a)(3) shall not
apply with respect to any
contribution made with respect
to a candidate if such
contribution is made under the
increased limit of subparagraph
(A) during a period in which
the candidate may accept such a
contribution; and
(III) the limits under
subsection (d) with respect to
any expenditure by a State or
national committee of a
political party shall not
apply.
(D) Opposition personal funds amount.--The
opposition personal funds amount is an amount
equal to the excess (if any) of--
(i) the greatest aggregate amount of
expenditures from personal funds (as
defined in section 304(a)(6)(B)) that
an opposing candidate in the same
election makes; over
(ii) the aggregate amount of
expenditures from personal funds made
by the candidate with respect to the
election.
(E) Special rule for candidate's campaign
funds.--
(i) In general.--For purposes of
determining the aggregate amount of
expenditures from personal funds under
subparagraph (D)(ii), such amount shall
include the gross receipts advantage of
the candidate's authorized committee.
(ii) Gross receipts advantage.--For
purposes of clause (i), the term
``gross receipts advantage'' means the
excess, if any, of--
(I) the aggregate amount of
50 percent of gross receipts of
a candidate's authorized
committee during any election
cycle (not including
contributions from personal
funds of the candidate) that
may be expended in connection
with the election, as
determined on June 30 and
December 31 of the year
preceding the year in which a
general election is held, over
(II) the aggregate amount of
50 percent of gross receipts of
the opposing candidate's
authorized committee during any
election cycle (not including
contributions from personal
funds of the candidate) that
may be expended in connection
with the election, as
determined on June 30 and
December 31 of the year
preceding the year in which a
general election is held.
(2) Time to accept contributions under increased
limit.--
(A) In general.--Subject to subparagraph (B),
a candidate and the candidate's authorized
committee shall not accept any contribution,
and a party committee shall not make any
expenditure, under the increased limit under
paragraph (1)--
(i) until the candidate has received
notification of the opposition personal
funds amount under section
304(a)(6)(B); and
(ii) to the extent that such
contribution, when added to the
aggregate amount of contributions
previously accepted and party
expenditures previously made under the
increased limits under this subsection
for the election cycle, exceeds 110
percent of the opposition personal
funds amount.
(B) Effect of withdrawal of an opposing
candidate.--A candidate and a candidate's
authorized committee shall not accept any
contribution and a party shall not make any
expenditure under the increased limit after the
date on which an opposing candidate ceases to
be a candidate to the extent that the amount of
such increased limit is attributable to such an
opposing candidate.
(3) Disposal of excess contributions.--
(A) In general.--The aggregate amount of
contributions accepted by a candidate or a
candidate's authorized committee under the
increased limit under paragraph (1) and not
otherwise expended in connection with the
election with respect to which such
contributions relate shall, not later than 50
days after the date of such election, be used
in the manner described in subparagraph (B).
(B) Return to contributors.--A candidate or a
candidate's authorized committee shall return
the excess contribution to the person who made
the contribution.
(j) Limitation on Repayment of Personal Loans.--Any candidate
who incurs personal loans made after the date of enactment of
the Bipartisan Campaign Reform Act of 2001 in connection with
the candidate's campaign for election shall not repay (directly
or indirectly), to the extent such loans exceed $250,000, such
loans from any contributions made to such candidate or any
authorized committee of such candidate after the date of such
election.
contributions or expenditures by national banks, corporations, or labor
organizations
Sec. 316. (a) * * *
(b)(1) * * *
(2) For purposes of this section and section 12(h) of the
Public Utility Holding Company Act (15 U.S.C. 79l(h)), the term
``contribution or expenditure'' [shall include] includes a
contribution or expenditure, as those terms are defined in
section 301, and also includes any direct or indirect payment,
distribution, loan, advance, deposit, or gift of money, or any
services, or anything of value (except a loan of money by a
national or State bank made in accordance with the applicable
banking laws and regulations and in the ordinary course of
business) to any candidate, campaign committee, or political
party or organization, in connection with any election to any
of the offices referred to in this section or for any
applicable electioneering communication, but shall not include
(A) communications by a corporation to its stockholders and
executive or administrative personnel and their families or by
a labor organization to its members and their families on any
subject; (B) nonpartisan registration and get-out-the-vote
campaigns by a corporation aimed at its stockholders and
executive or administrative personnel and their families, or by
a labor organization aimed at its members and their families;
and (C) the establishment, administration, and solicitation of
contributions to a separate segregated fund to be utilized for
political purposes by a corporation, labor organization,
membership organization, cooperative, or corporation without
capital stock.
(c) Rules Relating to Electioneering Communications.--
(1) Applicable electioneering communication.--For
purposes of this section, the term ``applicable
electioneering communication'' means an electioneering
communication (within the meaning of section 304(f)(3))
which is made by any entity described in subsection (a)
of this section or by any other person using funds
donated by an entity described in subsection (a) of
this section.
(2) Exception.--Notwithstanding paragraph (1), the
term ``applicable electioneering communication'' does
not include a communication by a section 501(c)(4)
organization or a political organization (as defined in
section 527(e)(1) of such Code) made under section
304(f)(2)(E) or (F) of this Act if the communication is
paid for exclusively by funds provided directly by
individuals who are United States citizens or nationals
or lawfully admitted for permanent residence as defined
in section 1101(a)(2) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(2)). For purposes of
the preceding sentence, the term ``provided directly by
individuals'' does not include funds the source of
which is an entity described in subsection (a) of this
section.
(3) Special operating rules.--
(A) Definition under paragraph (1).--An
electioneering communication shall be treated
as made by an entity described in subsection
(a) if an entity described in subsection (a)
directly or indirectly disburses any amount for
any of the costs of the communication.
(B) Exception under paragraph (2).--A section
501(c)(4) organization that derives amounts
from business activities or receives funds from
any entity described in subsection (a) shall be
considered to have paid for any communication
out of such amounts unless such organization
paid for the communication out of a segregated
account to which only individuals can
contribute, as described in section
304(f)(2)(E).
(4) Definitions and rules.--For purposes of this
subsection--
(A) the term ``section 501(c)(4)
organization'' means--
(i) an organization described in
section 501(c)(4) of the Internal
Revenue Code of 1986 and exempt from
taxation under section 501(a) of such
Code; or
(ii) an organization which has
submitted an application to the
Internal Revenue Service for
determination of its status as an
organization described in clause (i);
and
(B) a person shall be treated as having made
a disbursement if the person has executed a
contract to make the disbursement.
(5) Coordination with internal revenue code.--Nothing
in this subsection shall be construed to authorize an
organization exempt from taxation under section 501(a)
of the Internal Revenue Code of 1986 to carry out any
activity which is prohibited under such Code.
(6) Special rules for targeted communications.--
(A) Exception does not apply.--Paragraph (2)
shall not apply in the case of a targeted
communication that is made by an organization
described in such paragraph.
(B) Targeted communication.--For purposes of
subparagraph (A), the term ``targeted
communication'' means an electioneering
communication (as defined in section 304(f)(3))
that is distributed from a television or radio
broadcast station or provider of cable or
satellite television service and, in the case
of a communication which refers to a candidate
for an office other than President or Vice
President, is targeted to the relevant
electorate.
(C) Definition.--For purposes of this
paragraph, a communication is ``targeted to the
relevant electorate'' if it meets the
requirements described in section 304(f)(3)(C).
* * * * * * *
publication and distribution of statements and solicitations
Sec. 318. (a) [Whenever] Whenever a political committee makes
a disbursement for the purpose of financing any communication
through any broadcasting station, newspaper, magazine, outdoor
advertising facility, mailing, or any other type of general
public political advertising, or whenever any person makes [an
expenditure] a disbursement for the purpose of financing
communications expressly advocating the election or defeat of a
clearly identified candidate, or solicits any contribution
through any broadcasting station, newspaper, magazine, outdoor
advertising facility, [direct] mailing, or any other type of
general public political advertising or makes a disbursement
for an electioneering communication (as defined in section
304(f)(3)), such communication--
(1) * * *
* * * * * * *
(3) if not authorized by a candidate, an authorized
political committee of a candidate, or its agents,
shall clearly state the name and permanent street
address, telephone number, or World Wide Web address of
the person who paid for the communication and state
that the communication is not authorized by any
candidate or candidate's committee.
* * * * * * *
(c) Specification.--Any printed communication described in
subsection (a) shall--
(1) be of sufficient type size to be clearly readable
by the recipient of the communication;
(2) be contained in a printed box set apart from the
other contents of the communication; and
(3) be printed with a reasonable degree of color
contrast between the background and the printed
statement.
(d) Additional Requirements.--
(1) Audio statement.--
(A) Candidate.--Any communication described
in paragraphs (1) or (2) of subsection (a)
which is transmitted through radio or
television shall include, in addition to the
requirements of that paragraph, an audio
statement by the candidate that identifies the
candidate and states that the candidate has
approved the communication.
(B) Other persons.--Any communication
described in paragraph (3) of subsection (a)
which is transmitted through radio or
television shall include, in addition to the
requirements of that paragraph, in a clearly
spoken manner, the following statement:
``__________ is responsible for the content of
this advertising.'' (with the blank to be
filled in with the name of the political
committee or other person paying for the
communication and the name of any connected
organization of the payor). If transmitted
through television, the statement shall also
appear in a clearly readable manner with a
reasonable degree of color contrast between the
background and the printed statement, for a
period of at least 4 seconds.
(2) Television.--If a communication described in
paragraph (1)(A) is transmitted through television, the
communication shall include, in addition to the audio
statement under paragraph (1), a written statement
that--
(A) appears at the end of the communication
in a clearly readable manner with a reasonable
degree of color contrast between the background
and the printed statement, for a period of at
least 4 seconds; and
(B) is accompanied by a clearly identifiable
photographic or similar image of the candidate.
[contributions by foreign nationals] contributions and donations by
foreign nationals
Sec. 319. [(a) It shall be unlawful for a foreign national
directly or through any other person to make any contribution
of money or other thing of value, or to promise expressly or
impliedly to make any such contribution, 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; or for any person to
solicit, accept, or receive any such contribution from a
foreign national.]
(a) Prohibition.--It shall be unlawful for--
(1) a foreign national, directly or indirectly, to
make--
(A) a contribution or donation of money or
other thing of value, or to make an express or
implied promise to make a contribution or
donation, in connection with a Federal, State,
or local election;
(B) a contribution or donation to a committee
of a political party; or
(C) an expenditure, independent expenditure,
or disbursement for an electioneering
communication (within the meaning of section
304(f)(3)); or
(2) a person to solicit, accept, or receive a
contribution or donation described in subparagraph (A)
or (B) of paragraph (1) from a foreign national.
(b) As used in this section, the term ``foreign national''
means--
(1) a foreign principal, as such term is defined by
section 1(b) of the Foreign Agents Registration Act of
1938 (22 U.S.C. 611(b)), except that the term ``foreign
national'' shall not include any individual who is a
citizen of the United States; or
(2) an individual who is not a citizen of the United
States or a national of the United States (as defined
in section 101(a)(22) of the Immigration and
Nationality Act) and who is not lawfully admitted for
permanent residence, as defined by section 101(a)(20)
of the Immigration and Nationality Act (8 U.S.C.
1101(a)(20)).
* * * * * * *
fraudulent misrepresentation of campaign authority
Sec. 322. (a) In General.--No person who is a candidate for
Federal office or an employee or agent of such a candidate
shall--
(1) * * *
* * * * * * *
(b) Fraudulent Solicitation of Funds.--No person shall--
(1) fraudulently misrepresent the person as speaking,
writing, or otherwise acting for or on behalf of any
candidate or political party or employee or agent
thereof for the purpose of soliciting contributions or
donations; or
(2) willfully and knowingly participate in or
conspire to participate in any plan, scheme, or design
to violate paragraph (1).
SEC. 323. SOFT MONEY OF POLITICAL PARTIES.
(a) National Committees.--
(1) In general.--A national committee of a political
party (including a national congressional campaign
committee of a political party) may not solicit,
receive, or direct to another person a contribution,
donation, or transfer of funds or any other thing of
value, or spend any funds, that are not subject to the
limitations, prohibitions, and reporting requirements
of this Act.
(2) Applicability.--The prohibition established by
paragraph (1) applies to any such national committee,
any officer or agent acting on behalf of such a
national committee, and any entity that is directly or
indirectly established, financed, maintained, or
controlled by such a national committee.
(b) State, District, and Local Committees.--
(1) In general.--Except as provided in paragraph (2),
an amount that is expended or disbursed for Federal
election activity by a State, district, or local
committee of a political party (including an entity
that is directly or indirectly established, financed,
maintained, or controlled by a State, district, or
local committee of a political party and an officer or
agent acting on behalf of such committee or entity), or
by an association or similar group of candidates for
State or local office or individuals holding State or
local office, shall be made from funds subject to the
limitations, prohibitions, and reporting requirements
of this Act.
(2) Applicability.--
(A) In general.--Notwithstanding clause (i)
or (ii) of section 301(20)(A), and subject to
subparagraph (B), paragraph (1) shall not apply
to any amount expended or disbursed by a State,
district, or local committee of a political
party in existence as of the date of the
enactment of the Bipartisan Campaign Reform Act
of 2001 for an activity described in either
such clause to the extent the amounts expended
or disbursed for such activity are allocated
under regulations prescribed by the Commission
which require not less than 50 percent of the
amounts expended or disbursed be paid from a
Federal allocation account consisting solely of
contributions subject to the limitations,
prohibitions, and reporting requirements of
this Act (not including funds specifically
authorized to be spent under subparagraph
(B)(iii)).
(B) Conditions.--Subparagraph (A) shall only
apply if--
(i) the activity does not refer to a
clearly identified candidate for
Federal office;
(ii) the amounts expended or
disbursed are not for the costs of any
broadcasting, cable, or satellite
communication, other than a
communication which refers solely to a
clearly identified candidate for State
or local office;
(iii) the amounts expended or
disbursed which are not from a Federal
allocation account described in
subparagraph (A) are paid from amounts
which are donated in accordance with
State law and which meet the
requirements of subparagraph (C),
except that no person (including any
person established, financed,
maintained, or controlled by such
person) may donate more than $10,000 to
a State, district, or local committee
of a political party in a calendar year
for such expenditures or disbursements;
and
(iv) the amounts expended or
disbursed are made solely from funds
raised by the State, local, or district
committee which makes such expenditure
or disbursement, and do not include any
funds provided to such committee from--
(I) any other State, local,
or district committee of any
State party,
(II) the national committee
of a political party (including
a national congressional
campaign committee of a
political party),
(III) any officer or agent
acting on behalf of any
committee described in
subclause (I) or (II), or
(IV) any entity directly or
indirectly established,
financed, maintained, or
controlled by any committee
described in subclause (I) or
(II).
(C) Prohibiting involvement of national
parties, federal candidates and officeholders,
and state parties acting jointly.--
Notwithstanding subsection (e) (other than
subsection (e)(3)), amounts specifically
authorized to be spent under subparagraph
(B)(iii) meet the requirements of this
subparagraph only if the amounts--
(i) are not solicited, received,
directed, transferred, or spent by or
in the name of any person described in
subsection (a) or (e); and
(ii) are not solicited, received, or
directed through fundraising activities
conducted jointly by 2 or more State,
local, or district committees of any
political party or their agents, or by
a State, local, or district committee
of a political party on behalf of the
State, local, or district committee of
a political party or its agent in one
or more other States.
(c) Fundraising Costs.--An amount spent by a person described
in subsection (a) or (b) to raise funds that are used, in whole
or in part, for expenditures and disbursements for a Federal
election activity shall be made from funds subject to the
limitations, prohibitions, and reporting requirements of this
Act.
(d) Tax-Exempt Organizations.--A national, State, district,
or local committee of a political party (including a national
congressional campaign committee of a political party), an
entity that is directly or indirectly established, financed,
maintained, or controlled by any such national, State,
district, or local committee or its agent, and an officer or
agent acting on behalf of any such party committee or entity,
shall not solicit any funds for, or make or direct any
donations to--
(1) an organization that is described in section
501(c) of the Internal Revenue Code of 1986 and exempt
from taxation under section 501(a) of such Code (or has
submitted an application for determination of tax
exempt status under such section) and that makes
expenditures or disbursements in connection with an
election for Federal office (including expenditures or
disbursements for Federal election activity); or
(2) an organization described in section 527 of such
Code (other than a political committee, a State,
district, or local committee of a political party, or
the authorized campaign committee of a candidate for
State or local office).
(e) Federal Candidates.--
(1) In general.--A candidate, individual holding
Federal office, agent of a candidate or an individual
holding Federal office, or an entity directly or
indirectly established, financed, maintained or
controlled by or acting on behalf of 1 or more
candidates or individuals holding Federal office, shall
not--
(A) solicit, receive, direct, transfer, or
spend funds in connection with an election for
Federal office, including funds for any Federal
election activity, unless the funds are subject
to the limitations, prohibitions, and reporting
requirements of this Act; or
(B) solicit, receive, direct, transfer, or
spend funds in connection with any election
other than an election for Federal office or
disburse funds in connection with such an
election unless the funds--
(i) are not in excess of the amounts
permitted with respect to contributions
to candidates and political committees
under paragraphs (1), (2), and (3) of
section 315(a); and
(ii) are not from sources prohibited
by this Act from making contributions
in connection with an election for
Federal office.
(2) State law.--Paragraph (1) does not apply to the
solicitation, receipt, or spending of funds by an
individual described in such paragraph who is also a
candidate for a State or local office solely in
connection with such election for State or local office
if the solicitation, receipt, or spending of funds is
permitted under State law and refers only to such State
or local candidate, or to any other candidate for the
State or local office sought by such candidate, or
both.
(3) Fundraising events.--Notwithstanding paragraph
(1) or subsection (b)(2)(C), a candidate or an
individual holding Federal office may attend, speak, or
be a featured guest at a fundraising event for a State,
district, or local committee of a political party.
(4) Limitation applicable for purposes of
solicitation of donations by individuals to certain
organizations.--In the case of the solicitation of
funds by any person described in paragraph (1) on
behalf of any entity described in subsection (d) which
is made specifically for funds to be used for
activities described in clauses (i) and (ii) of section
301(20)(A), or made for any such entity which engages
primarily in activities described in such clauses, the
limitation applicable for purposes of a donation of
funds by an individual shall be the limitation set
forth in section 315(a)(1)(D).
(5) Treatment of amounts used to influence or
challenge state reapportionment.--Nothing in this
subsection shall prevent or limit an individual
described in paragraph (1) from soliciting or spending
funds to be used exclusively for the purpose of
influencing the reapportionment decisions of a State or
the financing of litigation which relates exclusively
to the reapportionment decisions made by a State.
(f) State Candidates.--
(1) In general.--A candidate for State or local
office, individual holding State or local office, or an
agent of such a candidate or individual may not spend
any funds for a communication described in section
301(20)(A)(iii) unless the funds are subject to the
limitations, prohibitions, and reporting requirements
of this Act.
(2) Exception for certain communications.--Paragraph
(1) shall not apply to an individual described in such
paragraph if the communication involved is in
connection with an election for such State or local
office and refers only to such individual or to any
other candidate for the State or local office held or
sought by such individual, or both.
prohibition of contributions by minors
Sec. 324. An individual who is 17 years old or younger shall
not make a contribution to a candidate or a contribution or
donation to a committee of a political party.
regulations to prohibit efforts to evade requirements
Sec. 325. The Commission shall promulgate regulations to
prohibit efforts to evade or circumvent the limitations,
prohibitions, and reporting requirements of this Act.
TITLE IV--GENERAL PROVISIONS
* * * * * * *
period of limitations
Sec. 406. (a) No person shall be prosecuted, tried, or
punished for any violation of title III of this Act, unless the
indictment is found or the information is instituted within [3]
5 years after the date of the violation.
* * * * * * *
----------
SECTION 607 OF TITLE 18, UNITED STATES CODE
Sec. 607. Place of solicitation
[(a) It shall be unlawful for any person to solicit or
receive any contribution within the meaning of section 301(8)
of the Federal Election Campaign Act of 1971 in any room or
building occupied in the discharge of official duties by any
person mentioned in section 603, or in any navy yard, fort, or
arsenal. Any person who violates this section shall be fined
under this title or imprisoned not more than three years, or
both.]
(a) Prohibition.--
(1) In general.--It shall be unlawful for any person
to solicit or receive a donation of money or other
thing of value in connection with a Federal, State, or
local election from a person who is located in a room
or building occupied in the discharge of official
duties by an officer or employee of the United States.
It shall be unlawful for an individual who is an
officer or employee of the Federal Government,
including the President, Vice President, and Members of
Congress, to solicit or receive a donation of money or
other thing of value in connection with a Federal,
State, or local election, while in any room or building
occupied in the discharge of official duties by an
officer or employee of the United States, from any
person.
(2) Penalty.--A person who violates this section
shall be fined not more than $5,000, imprisoned more
than 3 years, or both.
(b) The prohibition in subsection (a) shall not apply to the
receipt of contributions by persons on the staff of a Senator
or Representative in, or Delegate or Resident Commissioner to,
the Congress or Executive Office of the President, provided,
that such contributions have not been solicited in any manner
which directs the contributor to mail or deliver a contribution
to any room, building, or other facility referred to in
subsection (a), and provided that such contributions are
transferred within seven days of receipt to a political
committee within the meaning of section 302(e) of the Federal
Election Campaign Act of 1971.
----------
SECTION 315 OF THE COMMUNICATIONS ACT OF 1934
SEC. 315. FACILITIES FOR CANDIDATES FOR PUBLIC OFFICE.
(a) In General.--If any licensee shall permit any person who
is a legally qualified candidate for any public office to use a
broadcasting station, he shall afford equal opportunities to
all other such candidates for that office in the use of such
broadcasting station: Provided, That such licensee shall have
no power of censorship over the material broadcast under the
provision of this section. No obligation is hereby imposed
under this subsection upon any licensee to allow the use of its
station by any such candidate. Appearance by a legally
qualified candidate on any--
(1) * * *
* * * * * * *
[(b) The charges]
(b) Charges.--
(1) In general.--Except as provided in paragraph (2),
the charges made for the use of any broadcasting
station by any person who is a legally qualified
candidate for any public office in connection with his
campaign for nomination for election, or election, to
such office shall not exceed--
[(1)] (A) subject to paragraph (3), during the forty-
five days preceding the date of a primary or primary
runoff election and during the sixty days preceding the
date of a general or special election in which such
person is a candidate, the lowest unit charge of the
station for the same class and amount of time for the
same period; and
[(2)] (B) at any other time, the charges made for
comparable use of such station by other users thereof.
(2) Television.--The charges made for the use of any
television broadcast station, or by a provider of cable
or satellite television service, to any person who is a
legally qualified candidate for any public office in
connection with the campaign of such candidate for
nomination for election, or election, to such office,
or to a national committee of a political party making
expenditures under section 315(d) of the Federal
Election Campaign Act of 1971 on behalf of such
candidate in connection with such campaign, shall not
exceed, during the periods referred to in paragraph
(1)(A), the lowest charge of the station (at any time
during the 180-day period preceding the date of the
use) for the same amount of time for the same period.
(3) Content of broadcasts.--
(A) In general.--In the case of a candidate
for Federal office, such candidate shall not be
entitled to receive the rate under paragraph
(1)(A) or (2) for the use of any broadcasting
station unless the candidate provides written
certification to the broadcast station that the
candidate (and any authorized committee of the
candidate) shall not make any direct reference
to another candidate for the same office, in
any broadcast using the rights and conditions
of access under this Act, unless such reference
meets the requirements of subparagraph (C) or
(D).
(B) Limitation on charges.--If a candidate
for Federal office (or any authorized committee
of such candidate) makes a reference described
in subparagraph (A) in any broadcast that does
not meet the requirements of subparagraph (C)
or (D), such candidate shall not be entitled to
receive the rate under paragraph (1)(A) or (2)
for such broadcast or any other broadcast
during any portion of the 45-day and 60-day
periods described in paragraph (1)(A), that
occur on or after the date of such broadcast,
for election to such office.
(C) Television broadcasts.--A candidate meets
the requirements of this subparagraph if, in
the case of a television broadcast, at the end
of such broadcast there appears simultaneously,
for a period no less than 4 seconds--
(i) a clearly identifiable
photographic or similar image of the
candidate; and
(ii) a clearly readable printed
statement, identifying the candidate
and stating that the candidate has
approved the broadcast and that the
candidate's authorized committee paid
for the broadcast.
(D) Radio broadcasts.--A candidate meets the
requirements of this subparagraph if, in the
case of a radio broadcast, the broadcast
includes a personal audio statement by the
candidate that identifies the candidate, the
office the candidate is seeking, and indicates
that the candidate has approved the broadcast.
(E) Certification.--Certifications under this
section shall be provided and certified as
accurate by the candidate (or any authorized
committee of the candidate) at the time of
purchase.
(F) Definitions.--For purposes of this
paragraph, the terms ``authorized committee''
and ``Federal office'' have the meanings given
such terms by section 301 of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431).
(c) Preemption.--
(1) In general.--Except as provided in paragraph (2),
a licensee shall not preempt the use of a television
broadcast station, or a provider of cable or satellite
television service, by an eligible candidate or
political committee of a political party who has
purchased and paid for such use pursuant to subsection
(b)(2).
(2) Circumstances beyond control of licensee.--If a
program to be broadcast by a television broadcast
station, or a provider of cable or satellite television
service, is preempted because of circumstances beyond
the control of the station, any candidate or party
advertising spot scheduled to be broadcast during that
program may also be preempted.
(d) Random Audits.--
(1) In general.--During the 45-day period preceding a
primary election and the 60-day period preceding a
general election, the Commission shall conduct random
audits of designated market areas to ensure that each
television broadcast station, and provider of cable or
satellite television service, in those markets is
allocating television broadcast advertising time in
accordance with this section and section 312.
(2) Markets.--The random audits conducted under
paragraph (1) shall cover the following markets:
(A) At least 6 of the top 50 largest
designated market areas (as defined in section
122(j)(2)(C) of title 17, United States Code).
(B) At least 3 of the 51-100 largest
designated market areas (as so defined).
(C) At least 3 of the 101-150 largest
designated market areas (as so defined).
(D) At least 3 of the 151-210 largest
designated market areas (as so defined).
(3) Broadcast stations.--Each random audit shall
include each of the 3 largest television broadcast
networks, 1 independent network, and 1 cable network.
(e) Political Record.--
(1) In general.--A licensee shall maintain, and make
available for public inspection, a complete record of a
request to purchase broadcast time that--
(A) is made by or on behalf of a legally
qualified candidate for public office; or
(B) communicates a message relating to any
political matter of national importance,
including--
(i) a legally qualified candidate;
(ii) any election to Federal office;
or
(iii) a national legislative issue of
public importance.
(2) Contents of record.--A record maintained under
paragraph (1) shall contain information regarding--
(A) whether the request to purchase broadcast
time is accepted or rejected by the licensee;
(B) the rate charged for the broadcast time;
(C) the date and time on which the
communication is aired;
(D) the class of time that is purchased;
(E) the name of the candidate to which the
communication refers and the office to which
the candidate is seeking election, the election
to which the communication refers, or the issue
to which the communication refers (as
applicable);
(F) in the case of a request made by, or on
behalf of, a candidate, the name of the
candidate, the authorized committee of the
candidate, and the treasurer of such committee;
and
(G) in the case of any other request, the
name of the person purchasing the time, the
name, address, and phone number of a contact
person for such person, and a list of the chief
executive officers or members of the executive
committee or of the board of directors of such
person.
(3) Time to maintain file.--The information required
under this subsection shall be placed in a political
file as soon as possible and shall be retained by the
licensee for a period of not less than 2 years.
[(c)] (f) Definitions.--For purposes of this section--
(1) the term ``broadcasting station'' includes a
community antenna television system, a television
broadcast station, and a provider of cable or satellite
television service; and
(2) the term ``licensee'' and ``station licensee''
when used with respect to a community antenna
television system mean the operator of such system.
[(d)] (g) Regulations.--The Commission shall prescribe
appropriate rules and regulations to carry out the provisions
of this section.
----------
TITLE 36, UNITED STATES CODE
* * * * * * *
SUBTITLE I--PATRIOTIC AND NATIONAL OBSERVANCES AND CEREMONIES
* * * * * * *
CHAPTER 5--PRESIDENTIAL INAUGURAL CEREMONIES
* * * * * * *
Sec. 510. Disclosure of and prohibition on certain donations
(a) In General.--A committee shall not be considered to be
the Inaugural Committee for purposes of this chapter unless the
committee agrees to, and meets, the requirements of subsections
(b) and (c).
(b) Disclosure.--
(1) In general.--Not later than the date that is 90
days after the date of the Presidential inaugural
ceremony, the committee shall file a report with the
Federal Election Commission disclosing any donation of
money or anything of value made to the committee in an
aggregate amount equal to or greater than $200.
(2) Contents of report.--A report filed under
paragraph (1) shall contain--
(A) the amount of the donation;
(B) the date the donation is received; and
(C) the name and address of the person making
the donation.
(c) Limitation.--The committee shall not accept any donation
from a foreign national (as defined in section 319(b) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 441e(b))).
[Sec. 510.] Sec. 511. Authorization of appropriations
(a) Authorization.--Necessary amounts are authorized to be
appropriated--
(1) * * *
* * * * * * *
MINORITY VIEWS OF STENY H. HOYER, CHAKA FATTAH, AND JIM DAVIS
The ``Bipartisan Campaign Reform Act of 2001'' (H.R. 2356),
sponsored by Rep. Christopher Shays and Rep. Martin Meehan, is
a serious, comprehensive proposal that addresses two of the
most serious ills infecting American political campaigns today:
(1) unregulated soft money contributions and (2) undisclosed
issue advocacy.
There simply is too much special-interest money from too
few sources flowing into party committees in the form of soft
money, and onto the airwaves in the form of thinly disguised
political advertisements paid for with unrestricted dollars
from entities that are permitted, under today's broken campaign
finance regime, to disclose as much or as little about their
operations as they choose. Many of these entities are barred by
the Federal Election Campaign Act (FECA) from raising and
spending any money to influence federal campaigns. Increased
reliance on soft money shows no signs of abating, and is of
particular concern.
On June 28, 2001, the Committee Majority chose to report
H.R. 2356 with an unfavorable recommendation. Given that nearly
identical legislation passed the House of Representatives by
strong bipartisan majorities in 1998 and 1999, we find it
unfortunate that Committee Majority acted as it did.
We urge our colleagues in both parties to ignore the
Committee's unfavorable recommendation and judge H.R. 2356 on
one simple strength: its ambition to require that all
activities aimed at influencing federal elections be paid for
only with fully disclosed and reasonably limited amounts of
money known as ``hard money'' and to eliminate the most
pernicious factor in today's political system, the unlimited,
largely undisclosed money known as ``soft money.''
soft money
H.R. 2356 is the only bill reported by the Committee that
contains a comprehensive ban on soft money. Simply put, Shays-
Meehan not only limits but outlaws all soft money contributions
to the national parties, ensuring that every penny collected by
the parties conforms with FECA. In practice, no individual,
however wealthy, could contribute more than $75,000 in a two-
year election cycle to influence federal elections under Shays-
Meehan. No corporation or union that has exploited the soft
money loophole to get around FECA's prohibition on direct
giving would be permitted to influence federal campaigns except
through a federally regulated political action committee.
H.R. 2356's soft money ban contrasts sharply with H.R.
2360, the other bill reported by the Committee, which would
place a very high $75,000 annual cap on soft money to the
national parties. In a nation where the median income for a
family of four is approximately $59,000, we believe a cap of
$75,000 is not a cap at all. To make matters worse, H.R. 2356's
``cap'' would apply to each of three national committee in the
two parties. In theory, a corporation, union, or wealthy
individual could give as much as $900,000 in soft money in a
two-year election cycle, assuming it sought to curry favor with
both parties and contributed the maximum amount to each.
Combined with H.R. 2360's proposed increases in hard money
contributions, a wealthy individual could contribute as much as
$1,335,000 in hard and soft money in a two-year election
cycles.
The very nature of soft money--unlimited contributions from
the corporations and unions that are prohibited from making
direct ``hard money'' contributions--violates the spirit and
intenet of the modern federal election system that traces its
origins back to 1907, when Republican President Theodore
Roosevelt signed legislation prohibiting corporations and
insurance companies from using treasury money to influence
federal elections.
Soft money includes money from corporations and unions that
is not supposed to be influencing federal elections at all.
Yet, it has gradually come to be the dominant form of campaign
dollars in the 27 years since Congress last enacted
comprehensive campaign finance reform. H.R. 2356 addresses
public concerns over soft money by prohibiting soft money
contributions to national political parties and curtailing soft
money activities conducted by state and local parties.
Soft money contributions to political parties exist solely
because of an unfortunate loophole opened by the Federal
Election Commission that elections lawyers, political
consultants, and wealthy special interests have exploited with
unusual skill and sophistication. With each passing election
cycle, soft money contributions to state and national parties
have increased in volume until a trickle has turned into a
torrent. Between 1996 and 2000, the total amount of soft money
contributed to national parties grew from approximately $250
million to over $500 million. Given the vast number of uses to
which political parties may legally put soft money, and the
relative ease with which they can raise soft money compared to
hard money, it is not surprising that parties have developed a
significant dependence on a handful of super-wealth soft money
contributors to finance their political and administrative
operations.
This increase has led to more direct and blatant attempts
by contributors to purchase access and influence the political
process, and has driven an ever-increasing ``dollars race''
between the party committees. In fact, the amounts of money
sought and the increasingly constant appeals for soft dollars
have led many leaders in the business community to join the
call for reforming the soft money system.
H.R. 2356 would prohibit all soft money contributions from
corporations, labor groups, and wealthy individuals. It would
also end virtually all ``backdoor'' soft money to state, local,
and district parties, while recognizing the role that sharply
limited soft money can play in legitimate voter turnout and
registration efforts at the state and local level. To that end,
H.R. 2356 allows soft money contributions to state and local
parties to be used for limited voter registration and get-out-
the-vote activity, but caps it at $10,000 per donor.
Furthermore, the measure doubles from $5,000 to $10,000 the
amount of hard money individuals may contribute to state
parties.
In short, under the Shays-Meehan bill, national, state,
local, and district parties could continue to raise and spend
sufficient resources to register and educate voters, support
candidates, and promote broad-based platforms that are central
ingredients of a healthy and vital representative-democracy.
Issue Advocacy
The Shays-Meehan bill also would provide a reasonable
solution to the problem of unlimited and undisclosed
advertising that fails to qualify as ``express advocacy'' under
federal election law, even though it clearly is designed to
influence the outcome of an election. As a result of a series
of court decisions, the term ``express advocacy'' currently
refers only to those communications that include the so-called
``magic words,'' such as ``vote for candidate X'' or ``defeat
candidate Y.''
There are three consequences when advertising does not meet
this narrow express advocacy standard: First, it may be paid
for with unlimited amounts of money from any source, including
corporations and labor groups. Second, neither the amount spent
nor the source of the funding need be disclosed to the public.
Third, the advertising is not required to carry a truthful
disclaimer to inform the voter who actually paid for the
communication.
Since 1996, so-called ``issue advertising'' abuses have
exploded. The Annenberg Public Policy Center estimates that
between $275 million and $340 million was spent on issue
advertising in 1998, the last election year for which data are
available. However, no one can be certain of the exact figure
since no disclosure is required. Both political parties, aswell
as a wide range of interest groups and entities whose origin and
purpose remain largely a mystery, have exploited issue advocacy in
recent elections to run ads that clearly are designed to advocate the
election or defeat of specific federal candidates, but evade federal
election regulations by avoiding the ``magic words.'' Since these ads
stop just short of using the magic words, their sponsors are not
subject to full public disclosure, the ads need carry no disclaimer,
and they may be paid for with unlimited dollars from any source.
Insufficient disclosure is a serious problem that real
reform must address. Messages are not identifiable for most
audiences until they are sourced. As a result, viewers rarely
interpret messages without interpreting the credibility of the
source who is sponsoring the message. As long as pseudonymous
groups are able to communicate to the electorate, the ability
of the electorate to judge the legitimacy of the message that
is being offered is seriously weakened. Voters cannot
confidently determine how much credibility to lend a
communication when they do not know the source of the
communication. In short, without real disclosure of the sources
of money funding sham issue ads, the ability of the voters to
make informed decisions is severely undermined.
H.R. 2356 addresses the problem by providing a clear
distinction between advertising seeking to persuade voters on
issues and ``sham'' issue advertising--advertising that clearly
is intended to promote the election or defeat of a federal
candidate. It would create a new class of ads called
``electioneering communications,'' defined as `'broadcast,
cable, or satellite ads that mention the name or show the
likeness of a clearly identified federal candidate within 60
days of a general or 30 days of a primary, and is targeted at
the candidate's state or district.'' Under this provision,
corporations and labor unions would have to finance their ads
through their PAC's, and a range of other groups would have to
disclose their spending and donors.
It bears emphasizing that passage of the `'electioneering
communications'' provision would in no way abridge the free
speech rights of any group or individual. For those groups and
individuals interested in promoting the election or defeat of
the federal candidates of their choice, it would simply require
that they play by the same rules that currently apply to
candidates and political action committees. These modest
burdens placed on groups and individuals seeking to engage in
what most reasonable people already assume is express advocacy
will not limit their ability to reach voters. In addition, the
increased disclosure and disclaimer requirements will cast
sunlight on political spending and fundraising by interest
groups, providing voters with valuable information with which
to judge their credibility and motives.
Other Provisions
Beyond correcting major systemic problems in today's
campaign finance system, H.R. 2356 would accomplish several
other necessary but less crucial fixes to the campaign finance
system.
For example, the measure retains the 1974 $1,000 limit on
individual contributions per election to House candidates,
while acknowledging that 27 years of inflation has sharply
reduced its purchasing power. To account for future inflation,
H.R. 2356 indexes this $1,000 limit, a sensible provision that
ensures increases in the hard money limit do not outpace the
economy as a whole and widen the gap between wealthy
contributors and contributors of more modest means.
H.R. 2356 also provides for better and more vigorous
enforcement of federal election laws, tougher penalties for
those who are found to have knowingly broken the laws, and more
rapid disclosure of campaign activities.
Conclusion
True campaign finance reform aims to accomplish three
goals:
1. Completely end the unregulated, unlimited flow of
soft money into the political parties;
2. Require that political advertising that any
reasonable viewer would say are designed to influence a
federal election be paid for with hard money.
3. Respect the right of organizations to communicate
with their members about key issues affecting them.
In our view, H.R. 2356 is the only measure before the House
that deserves to be called true reform. We are confident our
colleagues on both sides of the aisle will agree. If history is
any guide, they will. In 1998 and 1999, a similar Shays-Meehan
bill passed 252-179 and 252-177, respectively. We urge our
colleague to show this same strong bipartisan support this year
and pass H.R. 2356.
Steny H. Hoyer.
Chaka Fattah.
Jim Davis.