[House Report 109-439]
[From the U.S. Government Publishing Office]



109th Congress                                            Rept. 109-439
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

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



 
          LOBBYING ACCOUNTABILITY AND TRANSPARENCY ACT OF 2006

                                _______
                                

                 April 25, 2006.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 4975]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 4975) to provide greater transparency with 
respect to lobbying activities, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                       Purpose of the Legislation

    H.R. 4975, the Lobbying Accountability and Transparency Act 
of 2006, seeks to illuminate the dealings of Members of 
Congress and their staffs with members of the lobbying 
community. It provides greater transparency with respect to 
lobbying activities and thereby makes both lobbyists and 
Members of Congress more accountable for their actions. H.R. 
4975 makes clear what is ethically acceptable for Members of 
the House of Representatives and their staff. It also makes 527 
organizations more accountable and transparent, and prohibits 
them from continuing to accept unlimited soft money donations.
    The Committee on House Administration had jurisdiction over 
several sections of H.R. 4975. These sections were: Section 301 
in Title III; Title IV; Section 502 in Title V; Title VI and 
Title VII.
    Section 301 of Title III prohibits the acceptance of any 
privately financed travel by Members, employees and officers of 
the House for the duration of the 109th Congress. This 
moratorium is necessary to allow for study and reassessment of 
the adequacy of existing rules covering travel of this sort. It 
will stop all travel until rules can be put in place that will 
give Members and the public confidence that any travel 
undertaken by House personnel is legitimate and in the public 
interest.
    Title IV of H.R. 4975 requires the Inspector General of the 
House to audit lobbyist disclosure information and to refer 
potential violations of the Lobbying Disclosure Act (LDA) to 
the Department of Justice. It also provides for ongoing reviews 
and annual reports by the Inspector General on activities 
carried out by the Clerk of the House under the LDA.
    Section 502 of Title V requires House employees to attend 
ethics training once every Congress, while new employees must 
receive ethics training within 30 days of being hired. 
Requiring Members to attend such training before allowing them 
to serve could be construed as unconstitutionally adding an 
additional qualification for service. Members are, therefore, 
strongly encouraged, but not required, to attend similar 
training.
    Title VI will extend the fundraising restrictions of the 
Bi-Partisan Campaign Reform Act of 2002 to organizations 
registered under Section 527 of the IRS code. This language 
seeks to reduce the influence wealthy donors and their large 
contributions have over our political process. On April 5, 
2006, the House adopted the language of Title VI when it passed 
H.R. 513, the 527 Reform Act of 2006, by a vote of 218-209. 
Further information on the activities of 527 groups and the 
need for reform can be found in the following reports that were 
previously filed by this Committee; 109-181 (H.R. 513, 527 
Reform Act of 2005) and 109-146 (H.R. 1316, 527 Fairness Act of 
2005).
    Title VII of H.R. 4975 provides for loss of pension 
benefits when Members are convicted of certain crimes. Under 
this Title, time served as a Member could not be credited for 
pension benefits if they are convicted of bribery, acting as an 
agent of a foreign principal, or conspiracy to commit one of 
the previous offenses. The illegal conduct must be related to 
their official duties as a Member, and all the elements of the 
crime must have occurred while the Member was in Congress. The 
Office of Personnel Management is given authority to allow an 
innocent spouse and dependent children to continue to receive 
benefits in certain circumstances.

                       Summary of the Legislation

    The Committee on House Administration had jurisdiction over 
the following sections of H.R. 4975: Section 301 in Title III; 
Title IV; Section 502 in Title V; Title VI and Title VII.

  TITLE III--SUSPENSION OF PRIVATELY-FUNDED TRAVEL; CURBING LOBBYIST 
                                 GIFTS


Sec. 301.--No privately-funded travel

     Imposes a moratorium on privately funded travel. 
Does not allow Members, employees or officers of the House to 
accept travel from a private source.

            TITLE IV--OVERSIGHT OF LOBBYING AND ENFORCEMENT


Sec. 401.--Audits of lobbying reports by House Inspector General

     Requires the Inspector General of the House to 
audit Lobbying Disclosure Act (LDA) disclosure information, and 
to refer potential violations of the Act to the Department of 
Justice.

Sec. 402.--House Inspector General review and annual reports

     The measure provides for ongoing reviews and 
annual reports by the inspector general on activities carried 
out by the Clerk of the House under LDA.

                     TITLE V--INSTITUTIONAL REFORMS


Sec. 502.--Frequent and comprehensive ethics training

     Requires House Committee on Standards of Official 
Conduct to provide ethics training once per Congress for every 
Member and employee.
     New employees shall receive training not later 
than 30 days after employment.
     Does not make ethics training mandatory for 
Members.

             TITLE VI--REFORM OF SECTION 527 ORGANIZATIONS


Sec. 601.--Short Title

     The ``527 Reform Act of 2005''.

Sec. 602.--Treatment of Section 527 Organizations

     Requires an organization described in Section 527 
of the Internal Revenue Code of 1986 (``IRC'') to register and 
report with the Federal Election Commission (``FEC'') as a 
political committee, unless the organization:
         Has annual gross receipts of less than 
        $25,000;
         Is a political committee of a state and/or 
        local party or candidate;
         Exists solely to pay certain administrative 
        expenses of a qualified newsletter;
         Is composed exclusively of state and/or local 
        elected officials and does not reference federal 
        candidates in its voter drive activities; or
         Is exclusively devoted to elections where no 
        federal candidate is on the ballot, to ballot 
        initiatives and referenda, or to the appointment, 
        nomination, or confirmation of individuals to non-
        elected offices.
     The exceptions (listed above) will not apply if 
such organization:
         Transmits a public communication that 
        promotes, supports, attacks, or opposes a federal 
        candidate in the year prior to a federal election;
         Conducts voter drive activities in more than 
        one state;
         Refers to a federal candidate in its voter 
        drive activities;
         Is controlled by a federal candidate or a 
        national political party; or
         Makes contributions to federal candidates.
     Makes the amendments made by this section 
effective 60 days after their enactment.

Sec. 603.--Rules for Allocation of Expenses Between Federal and Non-
        Federal Activities

     Establishes the following allocation rules:
         100 percent of expenses for public 
        communications or voter drive activities that refer to 
        a federal candidate but do not refer to a non-federal 
        candidate must be paid for with hard money;
         At least 50 percent, or a greater percentage 
        if the FEC so determines by regulation, of expenses for 
        public communications or voter drive activities that 
        refer to a federal candidate and to a state candidate 
        must be paid for with hard money;
         At least 50 percent, or a greater percentage 
        if the FEC so determines by regulation, of expenses for 
        public communications or voter drive activities that 
        refer to a political party but not to a federal 
        candidate must be paid for with hard money;
         At least 50 percent, or a greater percentage 
        if the FEC so determines by regulation, of expenses for 
        public communications or voter drive activities that 
        refer to a political party and to a non-federal 
        candidate but not to a federal candidate must be paid 
        for with hard money;
         At least 50 percent, or a greater percentage 
        if the FEC so determines by regulation, of 
        administrative overhead expenses must be paid for with 
        hard money; and
         At least 50 percent, or a greater percentage 
        if the FEC so determines by regulation, of direct costs 
        of fundraising program that collects both federal and 
        non-federal funds must be paid for with hard money.
     Permits ``qualified'' non-federal accounts to 
allocate spending with federal accounts, provided the following 
requirements are observed:
         Such qualified non-federal accounts may not 
        accept more than $25,000 from any one individual during 
        a calendar year; and
         National political parties and federal 
        candidates are prohibited from soliciting funds for 
        non-federal accounts.
     Exempts funds raised for a qualified non-federal 
account from the limitations, prohibitions, and reporting 
requirements of the Federal Election Campaign Act (``FECA''):
        Requires the reporting of all receipts and 
        disbursements from a qualified non-federal account;
        Requires the FEC to promulgate implementing 
        regulations.

Sec. 604.t--Remove the Limit on Expenditures Coordinated Between Party 
        Committees and Candidates

     Political parties are currently able to make 
unlimited independent expenditures on behalf of their Senate 
and House candidate but are limited in the amount of 
coordinated expenditures they may make. This provision will 
allow parties to coordinate their spending with their own 
candidates.

Sec. 605.--Construction

     Specifically states that nothing in the language 
of the bill should be construed as:
        Approving, ratifying, or endorsing a FEC regulation;
        Establishing, modifying, or otherwise affecting the 
        IRS's definition of a political organization; or
        Affecting whether a 501(c) organization should be 
        considered a political committee.

Sec. 606.--Judicial Review

     Special Rules for Actions brought on 
Constitutional Grounds:
        Must be filed in United States District Court for the 
        District of Columbia and be heard by a 3-judge panel;
        A copy of the complaint must be delivered to the Clerk 
        of the House and the Secretary of the Senate;
        A final decision in the actions is only reviewable by 
        direct appeal to the Supreme Court.
     Intervention by Members of Congress:
        Members of Congress have the right to intervene either 
        in support or opposition to the position of a party to 
        the case regarding the constitutionality of the 
        provision or amendment.
     Challenge by Members of Congress:
        Any Member of Congress may bring an action for 
        declaratory or injunctive relief to challenge the 
        constitutionally of any provision of the bill.

Sec. 607.--Severability

     If any portion of the Act is found 
unconstitutional, the other portions will remain in effect.

              TITLE VII--FORFEITURE OF RETIREMENT BENEFITS


Sec. 701.--Loss of pensions accrued during service as a Member of 
        Congress for abusing the public trust

     Members would lose credit towards their federal 
pensions for all service as a Member of Congress if they are 
convicted of:
        bribery;
        acting as an agent of a foreign principal; or
        conspiracy to commit such offenses or to defraud U.S.
     When such conduct related to their official duties 
as a Member.
     Allows for certain flexibility in OPM for 
particular hardships for innocent spouse and dependent 
children.

               Committee Consideration of the Legislation


                       INTRODUCTION AND REFERRAL

    On March 16, 2006, Mr. Dreier introduced H.R. 4975, the 
``Lobbying Accountability and Transparency Act of 2006,'' which 
was referred to the Committee on House Administration.

                                 MARKUP

    The Committee on House Administration held a markup of H.R. 
4975 on April 6, 2006.
    Members present: Mr. Ehlers, Mr. Ney, Mr. Mica, Mr. 
Doolittle, Mr. Reynolds, Mrs. Miller, Ms. Millender-McDonald, 
and Mr. Brady.
    The Committee favorably reported H.R. 4975 by a record vote 
(5-2), a quorum being present.

             Matters Required Under the Rules of the House


                         COMMITTEE RECORD VOTES

    Clause 3(b) of House rule XIII requires the results of each 
record vote on an amendment or motion to report, together with 
the names of those voting for and against, to be printed in the 
committee report.

Amendment 1 to Title III, Section 301

    Offered by Ms. Millender-McDonald. The first vote during 
the markup came on the amendment to section 301 of Title III 
offered by Ms. Millender-McDonald. The amendment bans travel 
arrangements that have been arranged for, paid for and provided 
by lobbyists and organizations that retain or employ lobbyists. 
It prohibits lobbyists from funding, arranging, planning or 
participating in congressional travel. While the existing 
language of Section 301 prohibits acceptance of all privately 
funded travel, this amendment would have permitted the 
acceptance of privately funded travel provided there was no 
lobbyist involvement.
    The vote on the amendment was 2-5 and the amendment failed.
    Mr. Ehlers--no; Mr. Ney--no; Mr. Mica--not present; Mr. 
Doolittle--no; Mr. Reynolds--no; Mrs. Miller--no; Ms. 
Millender-McDonald--yes; Mr. Brady--yes; Ms. Lofgren--not 
present.

Amendment 2 to Title IV

    Offered by Ms. Millender-McDonald. The second vote during 
the markup came on the amendment in the nature of a substitute 
to Title IV offered by Ms. Millender-McDonald. This amendment 
established an Office of Public Integrity within the Office of 
the Inspector General of the House. In similar fashion to the 
existing language of Title IV, this amendment gives the 
Inspector General access to and responsibility for auditing 
lobbyist disclosure forms to ensure compliance with the 
Lobbying Disclosure Act.
    The vote on the amendment was 2-5 and the amendment failed.
    Mr. Ehlers--no; Mr. Ney--no; Mr. Mica--not present; Mr. 
Doolittle--no; Mr. Reynolds--no; Mrs. Miller--no; Ms. 
Millender-McDonald--yes; Mr. Brady--yes; Ms. Lofgren--not 
present.

Amendment 3 to Title VI

    Offered by Ms. Millender-McDonald. The third vote during 
the markup came on an amendment striking the entirety of Title 
VI offered by Ms. Millender-McDonald. A majority of the House 
demonstrated its support for the language of Title VI when it 
voted 218-209 to approve H.R. 513, the 527 Reform Act of 2006, 
on April 5.
    The vote on the amendment was 2-5 and the amendment failed.
    Mr. Ehlers--no; Mr. Ney--no; Mr. Mica--not present; Mr. 
Doolittle--no; Mr. Reynolds--no; Mrs. Miller--no; Ms. 
Millender-McDonald--yes; Mr. Brady--yes; Ms. Lofgren--not 
present.

Vote to Report H.R. 4975

    The Committee then voted to favorably report H.R. 4975. The 
vote to report favorably was approved by a recorded vote (5-2).
    Mr. Ehlers--yes; Mr. Ney--yes; Mr. Mica--not present; Mr. 
Doolittle--yes; Mr. Reynolds--yes; Mrs. Miller--yes; Ms. 
Millender-McDonald--no; Mr. Brady--no; Ms. Lofgren--not 
present.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) 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 
House of Representatives, are incorporated in the descriptive 
portions of this report.

                General Performance Goals and Objectives

    The Committee states, with respect to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, that 
the goal and objective of H.R. 4975 is to strengthen the 
transparency and accountability of the dealings of Members of 
Congress and their staffs with members of the lobbying 
community.

                        Constitutional Authority

    In compliance with clause 3(d)(1) of rule XIII, the 
Committee states that Article 1, Section 5 of the U.S. 
Constitution grants Congress the authority to determine the 
rules of its proceedings and to punish Members for disorderly 
behavior. Article 1, Section 4 of the U.S. Constitution grants 
Congress the authority to make law governing the time, place 
and manner of holding federal elections. Rule X, clause 
1(j)(14) of the Rules of the House gives the Committee 
authority to regulate the travel of House Members. Rule X, 
clause 1(j)(16) gives the Committee jurisdiction over the 
compensation, retirement, and other benefits of Members and 
employees of Congress. Rule X, clause 4(d)(1)(A) gives the 
Committee oversight of the Inspector General of the House.

                            Federal Mandates

    The Committee states, with respect to section 423 of the 
Congressional Budget Act of 974, 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. 4975 does not 
preempt any state or local law.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 19, 2006.
Hon. Vernon J. Ehlers,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4975, the Lobbying 
Accountability and Transparency Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Matthew 
Pickford (for federal costs), and Craig Cammarata (for the 
private-sector impact).
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.
    Summary: H.R. 4975 would amend the Lobbying Disclosure Act 
of 1995 and the Federal Election Campaign Act of 1971. Major 
provisions of the legislation would expand reporting 
requirements for lobbyists and Members of Congress, temporarily 
ban privately funded travel, create additional restrictions on 
gifts and travel, and require training for Members and staff on 
ethics issues. The legislation also would eliminate pension 
benefits for Members convicted of certain offenses. In 
addition, H.R. 4975 would require certain political 
organizations involved in federal election activities to 
register with the Federal Election Commission (FEC).
    CBO estimates that implementing H.R. 4975 would cost about 
$2 million in fiscal year 2007 and $1 million a year in 
subsequent years, subject to the availability of appropriated 
funds. Enacting the bill could affect direct spending and 
revenues from reduced pensions for certain Members of Congress, 
and new violations of campaign finance laws, but CBO estimates 
that those effects would not be significant.
    H.R. 4975 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments.
    H.R. 4975 would impose several private-sector mandates, as 
defined in UMRA, on the lobbying industry and certain political 
organizations. Based on information from government sources, 
CBO estimates that the total direct cost of all of the mandates 
in the bill would fall below the annual threshold established 
by UMRA for private-sector mandates ($128 million in 2006, 
adjusted annually for inflation).
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 4975 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2007     2008     2009     2010     2011
----------------------------------------------------------------------------------------------------------------
                                CHANGES IN SPENDING SUBJECT TO APPROPRIATION \a\

Estimated Authorization Level......................................        2        1        1        1        1
Estimated Outlays..................................................        2        1        1        1       1
----------------------------------------------------------------------------------------------------------------
a Enacting the bill could also reduce pensions for certain Members of Congress, and increase revenues from civil
  penalties, but CBO estimates any such effects would be less than $500,000 a year.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the end of fiscal year 2006 and that 
spending will follow historical patterns for similar 
activities.

Spending subject to appropriation

    The legislation would expand reporting requirements for 
lobbyists and would require the Congress to provide Members and 
staff with additional training on ethics issues. Based on 
information from Congressional administrative staff, CBO 
estimates that Congressional offices and committees would spend 
about $1 million annually to collect and disseminate newly 
reported information from lobbyists and to provide the required 
ethics training.
    In addition, H.R. 4975 would require certain political 
organizations, defined by section 527 of the tax code, to 
register with the FEC. Based on information from the FEC and 
subject to the availability of appropriated funds, CBO 
estimates that implementing the legislation would cost the FEC 
about $1 million in fiscal year 2007. This cost covers the one-
time computer-related expenses as well as writing new 
regulations to implement the new provisions of the legislation. 
In future years, the legislation would increase general 
administrative costs to the FEC, but we estimate that those 
additional costs would not be significant.

Revenues and direct spending

    Enacting H.R. 4975 would likely increase collections of 
fines and penalties for violations of campaign finance law for 
failure to register with the FEC. Such collections are recorded 
in the budget as revenues. CBO estimates that the additional 
collections of penalties and fines would not be significant 
because of the relatively small number of cases likely to be 
involved.
    H.R. 4975 would also deny pension benefits (based on 
periods of elected service) to Members convicted of bribery, 
acting as foreign agents, or defrauding the federal government. 
CBO estimates that any savings in direct spending as a result 
of this provision would not be significant because we expect 
that the number of violations would be small.
    Estimated impact on State, local, and tribal governments: 
H.R. 4975 contains no intergovernmental mandates as defined in 
the UMRA and would impose no costs on State, local, or tribal 
governments.
    Estimated impact on the private sector: H.R. 4975 would 
impose several private-sector mandates, as defined in UMRA, on 
the lobbying industry and certain political organizations. The 
bill would impose new restrictions on lobbying activities and 
require lobbyists and lobbying organizations to submit 
additional reports and disclosures to the Senate Office of 
Public Records and the Office of the Clerk of the House. The 
bill also would require certain 527 organizations to register 
as political committees with the Federal Election Commission 
and comply with current regulations on federal campaign 
finance. Based on information from government sources, CBO 
estimates that the total direct cost of all of the mandates in 
the bill would fall below the annual threshold established by 
UMRA for private-sector mandates ($128 million in 2006, 
adjusted annually for inflation).
    The bill would impose several new requirements on lobbyists 
and lobbying organizations. Requirements on lobbyists and 
lobbying organizations would include but not be limited to:
           Electronic filing of lobbyist registrations 
        and disclosure reports filed with the Secretary of the 
        Senate or the Clerk of the House of Representatives;
           Quarterly, instead of semiannual, filing of 
        lobbying disclosure reports; and
           Additional information in registration and 
        disclosure reports including information on: 
        contributions to Members, Congressional staff, federal 
        officers and political entities by lobbyists; any gifts 
        distributed by lobbying entities; and whether or not 
        each registered lobbyist had prior experience as a 
        covered executive or legislative branch official.
    As of January 1, 2006, all lobbyists and lobbying 
organizations must register and file semiannual disclosure 
reports electronically to the Clerk of the House. However, 
electronic reporting is still optional for lobbyists and 
lobbying organizations filing in the Senate. Since all 
lobbyists must file similar reports to both the Clerk of the 
House and the Secretary of the Senate, the incremental cost of 
filing reports electronically to the Senate should be minimal. 
Generally, because such entities already collect the 
information requested in the registration and disclosure 
reports, CBO estimates that the incremental costs associated 
with the new reporting requirements in the bill would not be 
substantial relative to UMRA's annual threshold for private-
sector mandates.
    The bill also would prohibit lobbyists from traveling on an 
aircraft that is owned by a client and is not licensed by the 
FAA to operate for compensation if a Member, delegate, resident 
commissioner, officer or employee of the House is on board. 
According to government and industry sources, roughly 500 or 
less of those recorded flights are made each year. That 
estimate includes federal officials and staff from both the 
executive and legislative branches. H.R 4975 would only 
restrict the travel of a lobbyist with House officials and 
staff. The bill would not prohibit employees of the client from 
traveling on such planes with a Member, delegate, resident 
commissioner, officer or employee of the House. Thus, CBO 
estimates that the direct costs associated with complying with 
the mandate would be minimal compared to UMRA's threshold.
    The bill would change the definition of a political 
committee to include certain ``527'' organizations, as defined 
by section 527 of the Internal Revenue Code. Those 
organizations would be required to register as political 
committees with the FEC and comply with current regulations on 
federal campaign finance including certain limits on 
contributions and reporting and disclosure requirements. Based 
on information from the FEC, CBO estimates that the direct 
costs associated with those requirements would be minimal.
    Previous CBO estimates: Many of the lobbying reform and 
campaign finance provisions in the eight pieces of legislation 
listed below are contained in H.R. 4975. The differences among 
these bills are reflected in the cost estimates. However, the 
four versions of H.R. 4975 are very similar, and as such, their 
estimated costs are nearly identical.
           On April 19, 2006, CBO transmitted a cost 
        estimate for H.R. 4975 as ordered reported by the House 
        Committee on Government Reform on April 6, 2006.
           On April 19, 2006, CBO transmitted a cost 
        estimate for H.R. 4975 as ordered reported by the House 
        Committee on Rules on April 5, 2006.
           On April 19, 2006, CBO transmitted a cost 
        estimate for H.R. 4975 as ordered reported by the House 
        Committee on the Judiciary on April 5, 2006.
           On March 7, 2006, CBO transmitted a cost 
        estimate for S. 2349, the Legislative Transparency and 
        Accountability Act of 2006, as ordered reported by the 
        Senate Committee on Rules and Administration on March 
        1, 2006.
           On March 6, 2006, CBO transmitted a cost 
        estimate for S. 2128, the Lobbying Transparency and 
        Accountability Act of 2006, as ordered reported by the 
        Senate Committee on Homeland Security and Governmental 
        Affairs on March 3, 2006.
           On July 13, 2005, CBO transmitted a cost 
        estimate for H.R. 513, the 527 Reform Act of 2005, as 
        ordered reported by the House Committee on 
        Administration on June 29, 2005.
           On July 6, 2005, CBO transmitted a cost 
        estimate for S. 1053, the 527 Reform Act of 2005, as 
        ordered reported by the Senate Committee on Rules and 
        Administration on April 27, 2005.
           On June 17, 2005, CBO transmitted a cost 
        estimate for H.R. 1316, the 527 Fairness Act of 2005, 
        as ordered reported by the House Committee on House 
        Administration on June 8, 2005.
    Estimate prepared by: Federal costs: Matthew Pickford and 
Deborah Reis; Impact on State, local, and tribal Governments: 
Sarah Puro; Impact on the private sector: Craig Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the provisions of the bill referred to the Committee, 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) *  *  *

           *       *       *       *       *       *       *

          (4) The term ``political committee'' means--
                  (A) *  *  *

           *       *       *       *       *       *       *

                  (C) any local committee of a political party 
                which receives contributions aggregating in 
                excess of $5,000 during a calendar year, or 
                makes payments exempted from the definition of 
                contribution or expenditure as defined in 
                section 301(8) and (9) aggregating in excess of 
                $5,000 during a calendar year, or makes 
                contributions aggregating in excess of $1,000 
                during a calendar year or makes expenditures 
                aggregating in excess of $1,000 during a 
                calendar year[.]; or
                  (D) any applicable 527 organization.

           *       *       *       *       *       *       *

          (27) Applicable 527 organization.--
                  (A) In general.--For purposes of paragraph 
                (4)(D), the term ``applicable 527 
                organization'' means a committee, club, 
                association, or group of persons that--
                          (i) has given notice to the Secretary 
                        of the Treasury under section 527(i) of 
                        the Internal Revenue Code of 1986 that 
                        it is to be treated as an organization 
                        described in section 527 of such Code; 
                        and
                          (ii) is not described in subparagraph 
                        (B).
                  (B) Excepted organizations.--A committee, 
                club, association, or other group of persons 
                described in this subparagraph is--
                          (i) an organization described in 
                        section 527(i)(5) of the Internal 
                        Revenue Code of 1986;
                          (ii) an organization which is a 
                        committee, club, association or other 
                        group of persons that is organized, 
                        operated, and makes disbursements 
                        exclusively for paying expenses 
                        described in the last sentence of 
                        section 527(e)(2) of the Internal 
                        Revenue Code of 1986 or expenses of a 
                        newsletter fund described in section 
                        527(g) of such Code;
                          (iii) an organization which is a 
                        committee, club, association, or other 
                        group that consists solely of 
                        candidates for State or local office, 
                        individuals holding State or local 
                        office, or any combination of either, 
                        but only if the organization refers 
                        only to one or more non-Federal 
                        candidates or applicable State or local 
                        issues in all of its voter drive 
                        activities and does not refer to a 
                        Federal candidate or a political party 
                        in any of its voter drive activities; 
                        or
                          (iv) an organization described in 
                        subparagraph (C).
                  (C) Applicable organization.--For purposes of 
                subparagraph (B)(iv), an organization described 
                in this subparagraph is a committee, club, 
                association, or other group of persons whose 
                election or nomination activities relate 
                exclusively to--
                          (i) elections where no candidate for 
                        Federal office appears on the ballot; 
                        or
                          (ii) one or more of the following 
                        purposes:
                                  (I) Influencing the 
                                selection, nomination, 
                                election, or appointment of one 
                                or more candidates to non-
                                Federal offices.
                                  (II) Influencing one or more 
                                applicable State or local 
                                issues.
                                  (III) Influencing the 
                                selection, appointment, 
                                nomination, or confirmation of 
                                one or more individuals to non-
                                elected offices.
                  (D) Exclusivity test.--A committee, club, 
                association, or other group of persons shall 
                not be treated as meeting the exclusivity 
                requirement of subparagraph (C) if it makes 
                disbursements aggregating more than $1,000 for 
                any of the following:
                          (i) A public communication that 
                        promotes, supports, attacks, or opposes 
                        a clearly identified candidate for 
                        Federal office during the 1-year period 
                        ending on the date of the general 
                        election for the office sought by the 
                        clearly identified candidate (or, if a 
                        runoff election is held with respect to 
                        such general election, on the date of 
                        the runoff election).
                          (ii) Any voter drive activity during 
                        a calendar year, except that no 
                        disbursements for any voter drive 
                        activity shall be taken into account 
                        under this subparagraph if the 
                        committee, club, association, or other 
                        group of persons during such calendar 
                        year--
                                  (I) makes disbursements for 
                                voter drive activities with 
                                respect to elections in only 1 
                                State and complies with all 
                                applicable election laws of 
                                that State, including laws 
                                related to registration and 
                                reporting requirements and 
                                contribution limitations;
                                  (II) refers to one or more 
                                non-Federal candidates or 
                                applicable State or local 
                                issues in all of its voter 
                                drive activities and does not 
                                refer to any Federal candidate 
                                or any political party in any 
                                of its voter drive activities;
                                  (III) does not have a 
                                candidate for Federal office, 
                                an individual who holds any 
                                Federal office, a national 
                                political party, or an agent of 
                                any of the foregoing, control 
                                or materially participate in 
                                the direction of the 
                                organization, solicit 
                                contributions to the 
                                organization (other than funds 
                                which are described under 
                                clauses (i) and (ii) of section 
                                323(e)(1)(B)), or direct 
                                disbursements, in whole or in 
                                part, by the organization; and
                                  (IV) makes no contributions 
                                to Federal candidates.
                  (E) Certain references to federal candidates 
                not taken into account.--For purposes of 
                subparagraphs (B)(iii) and (D)(ii)(II), a voter 
                drive activity shall not be treated as 
                referring to a clearly identified Federal 
                candidate if the only reference to the 
                candidate in the activity is--
                          (i) a reference in connection with an 
                        election for a non-Federal office in 
                        which such Federal candidate is also a 
                        candidate for such non-Federal office; 
                        or
                          (ii) a reference to the fact that the 
                        candidate has endorsed a non-Federal 
                        candidate or has taken a position on an 
                        applicable State or local issue, 
                        including a reference that constitutes 
                        the endorsement or position itself.
                  (F) Certain references to political parties 
                not taken into account.--For purposes of 
                subparagraphs (B)(iii) and (D)(ii)(II), a voter 
                drive activity shall not be treated as 
                referring to a political party if the only 
                reference to the party in the activity is--
                          (i) a reference for the purpose of 
                        identifying a non-Federal candidate;
                          (ii) a reference for the purpose of 
                        identifying the entity making the 
                        public communication or carrying out 
                        the voter drive activity; or
                          (iii) a reference in a manner or 
                        context that does not reflect support 
                        for or opposition to a Federal 
                        candidate or candidates and does 
                        reflect support for or opposition to a 
                        State or local candidate or candidates 
                        or an applicable State or local issue.
                  (G) Applicable state or local issue.--For 
                purposes of this paragraph, the term 
                ``applicable State or local issue'' means any 
                State or local ballot initiative, State or 
                local referendum, State or local constitutional 
                amendment, State or local bond issue, or other 
                State or local ballot issue.
          (28) Voter drive activity.--The term ``voter drive 
        activity'' means any of the following activities 
        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):
                  (A) Voter registration activity.
                  (B) Voter identification.
                  (C) Get-out-the-vote activity.
                  (D) Generic campaign activity.
                  (E) Any public communication related to 
                activities described in subparagraphs (A) 
                through (D).
        Such term shall not include any activity described in 
        subparagraph (A) or (B) of section 316(b)(2).

                                REPORTS

    Sec. 304. (a) *  *  *

           *       *       *       *       *       *       *

    (e) Political Committees.--
          (1) *  *  *

           *       *       *       *       *       *       *

          (3) Receipts and disbursements from qualified 
        nonfederal accounts.--In addition to any other 
        reporting requirement applicable under this Act, a 
        political committee to which section 325(a) applies 
        shall report all receipts and disbursements from a 
        qualified non-Federal account (as defined in section 
        325(c)).
          [(3)] (4) 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)] (5) 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).

           *       *       *       *       *       *       *


             LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES

    Sec. 315. (a) *  *  *

           *       *       *       *       *       *       *

    (c)(1)(A) *  *  *
    (B) Except as provided in subparagraph (C), in any calendar 
year after 2002--
          (i) a limitation established by subsections 
        (a)(1)(A), (a)(1)(B), (a)(3), (b), [(d),] or (h) shall 
        be increased by the percent difference determined under 
        subparagraph (A);

           *       *       *       *       *       *       *

    (2) For purposes of paragraph (1)--
          (A) *  *  *
          (B) the term ``base period'' means--
                  (i) for purposes of [subsections (b) and (d)] 
                subsection (b), calendar year 1974; and

           *       *       *       *       *       *       *

    (d)[(1) Notwithstanding any other provision of law with 
respect to limitations on expenditures or limitations on 
contributions, the national committee] Notwithstanding any 
other provision of law with respect to limitations on amounts 
of expenditures or contributions, a 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] any election 
campaign of candidates for [Federal office, subject to the 
limitations contained in paragraphs (2), (3), and (4) of this 
subsection] Federal office in any amount.
    [(2) The national committee of a political party may not 
make any expenditure in connection with the general election 
campaign of any candidate for President of the United States 
who is affiliated with such party which exceeds an amount equal 
to 2 cents multiplied by the voting age population of the 
United States (as certified under subsection (e)). Any 
expenditure under this paragraph shall be in addition to any 
expenditure by a national committee of a political party 
serving as the principal campaign committee of a candidate for 
the office of President of the United States.
    [(3) The national committee of a political party, or a 
State committee of a political party, including any subordinate 
committee of a State committee, may not make any expenditure in 
connection with the general election campaign of a candidate 
for Federal office in a State who is affiliated with such party 
which exceeds--
          [(A) in the case of a candidate for election to the 
        office of Senator, or of Representative from a State 
        which is entitled to only one Representative, the 
        greater of--
                  [(i) 2 cents multiplied by the voting age 
                population of the State (as certified under 
                subsection (e)); or
                  [(ii) $20,000; and
          [(B) in the case of a candidate for election to the 
        office of Representative, Delegate, or Resident 
        Commissioner in any other State, $10,000.
    [(4) Independent versus coordinated expenditures by 
party.--
          [(A) In general.--On or after the date on which a 
        political party nominates a candidate, no committee of 
        the political party may make--
                  [(i) any coordinated expenditure under this 
                subsection with respect to the candidate during 
                the election cycle at any time after it makes 
                any independent expenditure (as defined in 
                section 301(17)) with respect to the candidate 
                during the election cycle; or
                  [(ii) any independent expenditure (as defined 
                in section 301(17)) with respect to the 
                candidate during the election cycle at any time 
                after it makes any coordinated expenditure 
                under this subsection with respect to the 
                candidate during the election cycle.
          [(B) Application.--For purposes of this paragraph, 
        all political committees established and maintained by 
        a national political party (including all congressional 
        campaign committees) and all political committees 
        established and maintained by a State political party 
        (including any subordinate committee of a State 
        committee) shall be considered to be a single political 
        committee.
          [(C) Transfers.--A committee of a political party 
        that makes coordinated expenditures under this 
        subsection with respect to a candidate shall not, 
        during an election cycle, transfer any funds to, assign 
        authority to make coordinated expenditures under this 
        subsection to, or receive a transfer of funds from, a 
        committee of the political party that has made or 
        intends to make an independent expenditure with respect 
        to the candidate.]

           *       *       *       *       *       *       *

    (i) Increased Limit To Allow Response to Expenditures From 
Personal Funds.--
          (1) Increase.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Increased limit.--Except as provided in 
                clause (ii), for purposes of subparagraph (A), 
                if the opposition personal funds amount is 
                over--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) 10 times the threshold 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) the limits under 
                                subsection (d) with respect to 
                                any expenditure by a State or 
                                national committee of a 
                                political party shall not 
                                apply.]

           *       *       *       *       *       *       *

          (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) * * *
                          (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 afterthe 
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.

           *       *       *       *       *       *       *


  MODIFICATION OF CERTAIN LIMITS FOR HOUSE CANDIDATES IN RESPONSE TO 
                PERSONAL FUND EXPENDITURES OF OPPONENTS

    Sec. 315A. (a) Availability of Increased Limit.--
          (1) In general.--Subject to paragraph (3), if the 
        opposition personal funds amount with respect to a 
        candidate for election to the office of Representative 
        in, or Delegate or Resident Commissioner to, the 
        Congress exceeds $350,000--
                  (A) the limit under subsection (a)(1)(A) with 
                respect to the candidate shall be tripled; and
                  (B) the limit under subsection (a)(3) shall 
                not apply with respect to any contribution made 
                with respect to the candidate if the 
                contribution is made under the increased limit 
                allowed under subparagraph (A) during a period 
                in which the candidate may accept such a 
                contribution[; and].
                  [(C) the limits under subsection (d) with 
                respect to any expenditure by a State or 
                national committee of a political party on 
                behalf of the candidate shall not apply.]

           *       *       *       *       *       *       *

          (3) Time to accept contributions under increased 
        limit.--
                  (A) In general.--Subject to subparagraph (B), 
                a candidate and the candidate's authorized 
                committee shall not accept any contribution[, 
                and a party committee shall not make any 
                expenditure,] under the increased limit under 
                paragraph (1)--
                          (i) * * *
                          (ii) to the extent that such 
                        contribution, when added to the 
                        aggregate amount of contributions 
                        previously accepted [and party 
                        expenditures previously made] under the 
                        increased limits under this subsection 
                        for the election cycle, exceeds 100 
                        percent of the opposition personal 
                        funds amount.
                  (B) Effect of withdrawal of an opposing 
                candidate.--A candidate and a candidate's 
                authorized committee shall not accept any 
                contribution [and a party shall not make any 
                expenditure] under the increased limit after 
                the date on which an opposing candidate ceases 
                to be a candidate to the extent that the amount 
                of such increased limit is attributable to such 
                an opposing candidate.

           *       *       *       *       *       *       *


SEC. 325. ALLOCATION AND FUNDING RULES FOR CERTAIN EXPENSES RELATING TO 
                    FEDERAL AND NON-FEDERAL ACTIVITIES.

    (a) In General.--In the case of any disbursements by any 
political committee that is a separate segregated fund or 
nonconnected committee for which allocation rules are provided 
under subsection (b)--
          (1) the disbursements shall be allocated between 
        Federal and non-Federal accounts in accordance with 
        this section and regulations prescribed by the 
        Commission; and
          (2) in the case of disbursements allocated to non-
        Federal accounts, may be paid only from a qualified 
        non-Federal account.
    (b) Costs To Be Allocated and Allocation Rules.--
          (1) In General.--Disbursements by any separate 
        segregated fund or nonconnected committee, other than 
        an organization described in section 323(b)(1), for any 
        of the following categories of activity shall be 
        allocated as follows:
                  (A) 100 percent of the expenses for public 
                communications or voter drive activities that 
                refer to one or more clearly identified Federal 
                candidates, but do not refer to any clearly 
                identified non-Federal candidates, shall be 
                paid with funds from a Federal account, without 
                regard to whether the communication refers to a 
                political party.
                  (B) At least 50 percent, or a greater 
                percentage if the Commission so determines by 
                regulation, of the expenses for public 
                communications and voter drive activities that 
                refer to one or more clearly identified 
                candidates for Federal office and one or more 
                clearly identified non-Federal candidates shall 
                be paid with funds from a Federal account, 
                without regard to whether the communication 
                refers to a political party.
                  (C) At least 50 percent or a greater 
                percentage if the Commission so determines by 
                regulation, of the expenses for public 
                communications or voter drive activities that 
                refer to a political party, but do not refer to 
                any clearly identified Federal or non-Federal 
                candidate, shall be paid with funds from a 
                Federal account, except that this paragraph 
                shall not apply to communications or activities 
                that relate exclusively to elections where no 
                candidate for Federal office appears on the 
                ballot.
                  (D) At least 50 percent, or a greater 
                percentage if the Commission so determines by 
                regulation, of the expenses for public 
                communications or voter drive activities that 
                refer to a political party and refer to one or 
                more clearly identified non-Federal candidates, 
                but do not refer to any clearly identified 
                Federal candidates, shall be paid with funds 
                from a Federal account, except that this 
                paragraph shall not apply to communications or 
                activities that relate exclusively to elections 
                where no candidate for Federal office appears 
                on the ballot.
                  (E) Unless otherwise determined by the 
                Commission in its regulations, at least 50 
                percent of any administrative expenses, 
                including rent, utilities, office supplies, and 
                salaries not attributable to a clearly 
                identified candidate, shall be paid with funds 
                from a Federal account, except that for a 
                separate segregated fund such expenses may be 
                paid instead by its connected organization.
                  (F) At least 50 percent, or a greater 
                percentage if the commission so determines by 
                regulation, of the direct costs of a 
                fundraising program or event, including 
                disbursementsfor solicitation of funds and for 
planning and administration of actual fundraising events, where Federal 
and non-Federal funds are collected through such program or event shall 
be paid with funds from a Federal account, except that for a separate 
segregated fund such costs may be paid instead by its connected 
organization. This paragraph shall not apply to any fundraising 
solicitations or any other activity that constitutes a public 
communication.
          (2) Certain references to federal candidates not 
        taken into account.--For purposes of paragraph (1), a 
        public communication or voter drive activity shall not 
        be treated as referring to a clearly identified Federal 
        candidate if the only reference to the candidate in the 
        communication or activity is
                  (A) a reference in connection with an 
                election for a non-Federal office in which such 
                Federal candidate is also a candidate for such 
                non-Federal office; or
                  (B) a reference to the fact that the 
                candidate has endorsed a non-Federal candidate 
                or has taken a position on an applicable State 
                or local issue (as defined in section 301 
                (27)(G)), including a reference that 
                constitutes the endorsement or position itself.
          (3) Certain references to political parties not taken 
        into account.--For purposes of paragraph (1), a public 
        communication or voter drive activity shall not be 
        treated as referring to a political party if the only 
        reference to the party in the communication or activity 
        is
                  (A) a reference for the purpose of 
                identifying a non-Federal candidate;
                  (B) a reference for the purpose of 
                identifying the entity making the public 
                communication or carrying out the voter drive 
                activity; or
                  (C) a reference in a manner or context that 
                does not reflect support for or opposition to a 
                Federal candidate or candidates and does 
                reflect support for or opposition to a State or 
                local candidate or candidates or an applicable 
                State or local issue.
    (c) Qualified Non-Federal Account.--
          (1) In general.--For purposes of this section, the 
        term ``qualified non-Federal account'' means an account 
        which consists solely of amounts--
                  (A) that, subject to the limitations of 
                paragraphs (2) and (3), are raised by the 
                separate segregated fund or non-connected 
                committee only from individuals, and
                  (B) with respect to which all requirements of 
                Federal, State, or local law (including any law 
                relating to contribution limits) are met.
          (2) Limitation on individual donations.--
                  (A) In general.--A separate segregated fund 
                or non-connected committee may not accept more 
                than $25,000 in funds for its qualified non-
                Federal account from any one individual in any 
                calendar year.
                  (B) Affiliation.--For purposes of this 
                paragraph, all qualified non-Federal accounts 
                of separate segregated funds or non-connected 
                committees which are directly or indirectly 
                established, financed, maintained, or 
                controlled by the same person or persons shall 
                be treated as one account.
          (3) Fundraising limitation.--
                  (A) In general.--No donation to a qualified 
                non-Federal account may be solicited, received, 
                directed, transferred. or spent by or in the 
                name of any person described in subsection (a) 
                or (e) of section 323.
                  (B) Funds not treated as subject to act.--
                Except as provided in subsection (a)(2). and 
                this subsection, any funds raised for a 
                qualified non-Federal account in accordance 
                with the requirernents of this section shall 
                not be considered funds subject to the 
                limitations, prohibitions, and reporting 
                requirements of this Act for any purpose 
                (including for purposes of subsection (a) or 
                (e) of section 323 or subsection (d)(1) of this 
                section).
    (d) Definitions.--
          (1) Federal account.--The term ``Federal account'' 
        means an account which consists solely of contributions 
        subject to the limitations, prohibitions and reporting 
        requirements of this Act. Nothing in this section or in 
        section 323(b)(2)(B)(iii) shall be construed to infer 
        that a limit other than the limit under section 
        315(a)(1)(C) applies to contributions to the account.
          (2) Nonconnected committee.--The term ``non-connected 
        committee'' shall not include a political committee of 
        a political party.
          (3) Voter drive activity.--The term ``voter drive 
        activity'' has the meaning given such term in section 
        301(28).
                              ----------                              


TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *



PART III--EMPLOYEES

           *       *       *       *       *       *       *



SUBPART G--INSURANCE AND ANNUITIES

           *       *       *       *       *       *       *



CHAPTER 83--RETIREMENT

           *       *       *       *       *       *       *



                SUBCHAPTER III--CIVIL SERVICE RETIREMENT


Sec. 8332. Creditable service

    (a) * * *

           *       *       *       *       *       *       *

    (o)(1) Notwithstanding any other provision of this 
subchapter, the service of an individual finally convicted of 
an offense described in paragraph (2) shall not be taken into 
account for purposes of this subchapter, except that this 
sentence applies only to service rendered as a Member 
(irrespective of when rendered). Any such individual
(or other person determined under section 8342(c), if 
applicable) shall be entitled to be paid so much of such 
individual's lump-sum credit as is attributable to service to 
which the preceding sentence applies.
          (2)(A) An offense described in this paragraph is any 
        offense described in subparagraph (B) for which the 
        following apply:
                  (i) Every act or omission of the individual 
                (referred to in paragraph (l)) that is needed 
                to satisfy the elements of the offense occurs 
                while the individual is a Member.
                  (ii) Every act or omission of the individual 
                that is needed to satisfy the elements of the 
                offense directly relates to the performance of 
                the individual's official duties as a Member.
                  (iv) The offense is committed after the date 
                of enactment of this subsection.
          (B) An offense described in this subparagraph is only 
        the following, and only to the extent that the offense 
        is a felony under title 18:
                  (i) An offense under section 201 of title 18 
                (bribery of public officials and witnesses).
                  (ii) An offense under section 219 of title 18 
                (officers and employees acting as agents of 
                foreign principals).
                  (iii) An offense under section 371 of title 
                18 (conspiracy to commit offense or to defraud 
                United States) to the extent of any conspiracy 
                to commit an act which constitutes an offense 
                under clause (i) or (ii).
          (3) An individual convicted of an offense described 
        in paragraph (2) shall not, after the date of the final 
        conviction, be eligible to participate in the 
        retirement system under this subchapter or chapter 84 
        while serving as a Member.
          (4) The Office of Personnel Management shall 
        prescribe any regulations necessary to carry out this 
        subsection. Such regulations shall include--
                  (A) provisions under which interest on any 
                lump-sum payment under the second sentence of 
                paragraph (l) shall be limited in a manner 
                similar to that specified in the last sentence 
                of section 8316(b); and
                  (B) provisions under which the Office may 
                provide for--
                          (i) the payment, to the spouse or 
                        children of any individual referred to 
                        in the first sentence of paragraph (1) 
                        of any amounts which (but for this 
                        clause) would otherwise have been 
                        nonpayable by reason of such first 
                        sentence, but only to the extent that 
                        the application of this clause is 
                        considered necessary given the totality 
                        of the circumstances; and
                          (ii) an appropriate adjustment in the 
                        amount of any lump-sum payment under 
                        the second sentence of paragraph (1) to 
                        reflect the application of clause (i).
          (5) For purposes of this subsection--
                  (A) the term ``Member'' has the meaning given 
                such term by section 2106, notwithstanding 
                section 8331(2); and
                  (B) the term ``child'' has the meaning given 
                such term by section 8341.

           *       *       *       *       *       *       *


CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM

           *       *       *       *       *       *       *



                      SUBCHAPTER II--BASIC ANNUITY


Sec. 8411. Creditable service

    (a) * * *

           *       *       *       *       *       *       *

    (i)(1) Notwithstanding any other provision of this chapter, 
the service of an individual finally convicted of an offense 
described in paragraph (2) shall not be taken into account for 
purposes of this chapter, except that this sentence applies 
only to service rendered as a Member (irrespective of when 
rendered). Any such individual (or other person determined 
under section 8424(d)) if applicable) shall be entitled to be 
paid so much of such individual's lump-sum credit as is 
attributable to service to which the preceding sentence 
applies.
    (2) An offense described in this paragraph is any offense 
described in section 8332(0)(2)(B) for which the following 
apply:
          (A) Every act or omission of the individual (referred 
        to in paragraph (1)) that is needed to satisfy the 
        elements of the offense occurs while the individual is 
        a Member.
          (B) Every act or omission of the individual that is 
        needed to satisfy the elements of the offense directly 
        relates to the performance of the individual's official 
        duties as a Member.
          (C) The offense is committed after the date of 
        enactment of this subsection.
    (3) An individual finally convicted of an offense described 
in paragraph (2) shall not, after the date of the conviction, 
be eligible to participate in the retirement system under this 
chapter while serving as a A Member.
    (4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry aut this subsection. Such 
regulations shall include--
          (A) provisions under which interest on any lump-sum 
        pay. ment under the second sentence of paragraph (1) 
        shall be limited in a manner similar to that specified 
        in the last sentence of section 8316(b); and
          (B) provisions under which the Office may provide for
                  (i) the payment, to the spouse or children of 
                any individual referred to in the first 
                sentence of paragraph (1), of any amounts which 
                (but for this clause) would otherwise have been 
                nonpayable by reason of such first sentence, 
                but only to the extent that the application of 
                this clause is considered necessary given the 
                totality of the circumstances; and
                  (ii) an appropriate adjustment in the amount 
                of any lump-sum payment under the second 
                sentence of paragraph (1) to reflect the 
                application of clause (i).
    (5) For purposes of this subsection--
          (A) the term ``Member'' has the meaning given such 
        term by section 2106, notwithstanding section 8401(20); 
        and
          (B) the term ``child'' has the meaning given such 
        term by section 8341.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

                       Lobbying and Ethics Reform

                               BACKGROUND

    On March 16, 2006, the Republican Leadership introduced 
H.R. 4975, the ``Lobbying Accountability and Transparency Act 
of 2006.'' It was marked up by five committees--the Committees 
on Rules, Judiciary, House Administration, Government Reform, 
and Standards of Official Conduct. This procedure was 
characterized by the Republican Leadership as ``regular 
order'', so as to allow each committee to work its will.
    While the Republican bill is titled to suggest that the 
Republican Leadership is getting serious about lobbying reform, 
the list of things which should have been included in the bill, 
but which were intentionally left out, provides a much clearer 
picture of the true intentions of the bill's drafters.
    Honest lobbying reform must include all of the following, 
none of which are addressed by the Republican Leadership bill 
before this committee:
           A complete ban on gifts and travel provided 
        by lobbyists and organizations that retain or employ 
        them;
           A requirement that Members pay the full 
        charter costs of corporate air travel and disclosure of 
        the passenger list for all privately funded travel;
           Reporting provisions and criminal penalties 
        to eliminate cronyism and corruption in government 
        employment and contracting;
           Criminal penalties for those who engage in 
        the type of partisan, political manipulation associated 
        with the ``K Street Project'';
           A return to fair and open debating and 
        voting procedures on the House floor, and in Conference 
        Committees;
           Radically new lobbyist disclosure 
        requirements, including the names of Members contacted, 
        and a listing of parties and events held to ``honor'' 
        Members;
           A two-year revolving door prohibition; and
           Earmark transparency provisions, including a 
        prohibition on linking earmarks to vote support.
    Because the Republican Leadership bill does not contain 
such lobbying reform provisions, Democrats attempted to include 
them during markup in the various committees. In our Committee, 
made up of six Republicans and three Democrats, we offered 
several substantive amendments, each of which was rejected by 
the Republicans on party line votes. The Republican Leadership 
bill was then ordered reported in the same form it was 
introduced, and without any Committee input by way of 
amendments.
    Our concern is that the Republican Leadership, and the 
Republican Party, may not be serious about lobbying reform, 
because they have been major beneficiaries of the manipulation 
attendant to the unconscionable ``K Street Project'', now 
personified by convicted lobbyist Jack Abramoff. Perhaps the 
Republican Leadership believes that a few superficial reforms 
will buy time, and temporarily paper over the ongoing 
corruption, thus allowing the outrage of the American People to 
dissipate, with the eventual return to business as usual. 
Contrary to this perception, Americans who strive for honest 
government will not allow the demand for serious lobbying 
reform to go away.

                        THE DEMOCRATIC APPROACH

    The American People are demanding bold action that strikes 
at the heart of congressional corruption. A temporary 
moratorium on travel, and a few lobbyist disclosure provisions, 
are an incredibly inadequate response to the clear evidence of 
massive corruption in the midst of this Congress.
    Throughout our democratic history, there has been a 
struggle to ensure that the People's interests are put ahead of 
special interests. Since the Republican Party took complete 
control of the government, cronyism and corruption have become 
widespread.
    Our goal is to restore accountability, honesty and openness 
to all levels of government. We must create enforceable ethical 
standards for every public servant, sever unethical ties 
between lawmakers and lobbyists, and establish clear standards 
that prevent trading on one's official office for personal or 
campaign benefits.
    In addition to an immediate and full investigation by the 
Ethics Committee of all aspects of the Abramoff matter, any 
serious reform plan must include effective enforcement, a total 
ban on travel provided by lobbyists and organizations which 
employ lobbyists, and full and timely public disclosure of all 
other privately funded travel.

                         COMMITTEE JURISDICTION

    Our Committee does not have general jurisdiction over 
Federal lobbying policy. That jurisdiction resides almost 
exclusively in the Judiciary Committee, in part because of the 
law's impact on Constitutional free speech and the right to 
redress grievances. Our Committee's jurisdictional interest is 
based upon oversight over one of the two offices tasked with 
administering the law (the House Clerk's Office--the other 
office being the Senate Secretary's Office), travel by Members, 
and Member pensions.

                         DEMOCRATIC AMENDMENTS

    We offered three amendments to the Republican Leadership 
Lobbying Reform bill--one to ban Member acceptance of travel 
provided by lobbyists and organizations employing lobbyists, 
one to authorize enforcement by a reorganized House Inspector 
General'soffice, with a specific focus on lobbying disclosure 
and enforcement, and one to delete a provision relating to 527 
organizations from the bill, because the provision has nothing to do 
with lobbying reform. Each amendment was intended to focus on, and move 
the Republican Leadership bill closer to true lobbying reform, and it 
was our Committee's responsibility, and only opportunity to correct 
this woefully inadequate, Republican Leadership effort, as the 
legislative train, controlled by the Republican Leadership, pulls away 
from the station.
    The first amendment banned travel arranged for, paid for, 
or provided by lobbyists and organizations that retain or 
employ lobbyists; it prohibited lobbyists from funding, 
arranging, planning, or participating in privately funded 
congressional travel.
    The second amendment established a new Office of Public 
Integrity within the Office of the House Inspector General, and 
charged that Office with auditing and investigating compliance 
with lobbying disclosure rules, and when necessary, referring 
matters to the United States Attorney.
    Our third amendment deleted a fake lobbying reform issue 
from the bill--relating to 527 organizations--for two reasons. 
First, Federal 527 organization policy has nothing whatsoever 
to do with lobbying reform, and second, the Republican 
Leadership had already brought the 527 provision to the House 
floor on the day preceding our markup, and the House had worked 
its will on that policy.
    All amendments were rejected by the Republican Majority. 
This lockstep rejection of even small steps toward real reform 
belies a Republican Leadership effort to avoid meaningful 
lobbying reform by fashioning a Republican bill in the Rules 
Committee, over which the Republican Leadership has total 
control. Chairman Ehlers even announced that, rather than 
offering a germane amendment to a portion of the bill which was 
exclusively within our Committee's jurisdiction, he would offer 
his amendment instead at the Rules Committee for its 
consideration.

                        WHERE WE SHOULD BE GOING

    Honest leadership is not a partisan goal. It is the key to 
a stronger union. Our government must reflect the absolute best 
of the people it serves.
    Without honest leadership and open government, America's 
bounty, and the hopes of the American People, will be plundered 
by special interests operating in conjunction with corrupt 
legislators, cronies, or dishonest public officials. America's 
urgent needs, such as real security overseas and at home, 
economic strength and educational excellence, affordable health 
care, energy independence, and retirement security, will be 
compromised or continue to go unaddressed. 163 Democrats have 
offered a comprehensive lobbying reform package as a real 
alternative to the Republican Leadership bill. The Democratic 
alternative is the Honest Leadership and Open Government Act--
H.R. 4682, the principle objectives of which are summarized 
below:
           Close the Revolving Door
           Toughen Public Disclosure of Lobbyist 
        Activity
           Ban Lobbyist Gifts and Travel
           Shut Down Pay-to-Play Schemes Like the ``K 
        Street Project.''
           Disclosure of Outside Job Negotiations
           Prohibit ``Dead of Night'' Special Interest 
        Provisions
           Zero Tolerance for Contract Cheaters
           Prohibit Cronyism in Key Appointments

                       WHERE WE SEEM TO BE HEADED

    Democrats think that the Jack Abramoff conviction is the 
tip of the iceberg. What it represents is a burning need to 
change the way the Congress, its Members, and other high 
ranking public officials do the American People's business. 
Nonetheless, the Republican Leadership bill, and the actions 
taken in our own Committee, suggest strongly that a watered-
down, Republican Leadership lobbying bill, which avoids any 
serious effort to reform the way congressional business is 
conducted, will shortly be presented to the House for an up or 
down vote. We are discouraged at this prospect, and will not 
support anything short of reform worthy of the trust of the 
American People to ensure honest leadership and an open 
government. This is why we opposed this bill in the Committee, 
and why we will work for its defeat on the House floor--not 
because of what the bill does--but because of what the bill 
fails to do to bring about honest leadership and open 
government.

                                   Juanita Millender-McDonald.
                                   Robert A. Brady.
                                   Zoe Lofgren.

                                  
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