Campaign Finance Reform and Disclosure Act of 1996

Summary: Campaign Finance Reform and Disclosure Act of 1996 - Amends the Federal Election Campaign Act of 1971 to limit acceptance of out-of-State contributions by Senate candidates. 
Limits reimbursement from campaigns for contributions by Senate candidates and the immediate families of Senate candidates.  Restricts the use of campaign funds by Senate candidates for personal purposes. 
Limits congressional use of the franking privilege during a year in which there will be an election for the seat held by the member unless the member makes a public announcement that the Member will not be a candidate for election to any Federal office in that year. 
Decreases and indexes the PAC contribution limit. 
Restricts the acceptance of contributions by political party committees. 
Exempts communications between a political party and members of the political party from specified spending limitations. 
Excludes from the definition of contribution State or local political party committee payments for certain State and local activities. 
Excepts from receipt and disbursement reporting requirements PACs which have accepted contributions or made expenditures aggregating less than $25,000 during an election cycle. 
Amends the National Labor Relations Act to revise the rights of employees relating to the payment and use of labor organization dues. 
Provides for expedited Supreme Court review of constitutional issues of this Act or any amendment made by this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Finance Reform and 
Disclosure Act of 1996''.

SEC. 2. DEFINITIONS.

    Section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431) is amended by adding at the end the following:
            ``(20) Election cycle.--The term `election cycle' means--
                    ``(A) in the case of a candidate or the authorized 
                committees of a candidate, the period beginning on the 
                day after the date of the most recent general election 
                for the specific office or seat that the candidate 
                seeks and ending on the date of the next general 
                election for that office or seat; and
                    ``(B) in the case of all other persons, the period 
                beginning on the first day following the date of the 
                last general election and ending on the date of the 
                next general election.
            ``(21) Senate candidate.--The term `Senate candidate' means 
        a candidate who seeks nomination for election, or election, to 
        the Senate.
            ``(22) Campaign expense.--The term `campaign expense' means 
        an expense that is attributable solely to a bona fide campaign 
        purpose.
            ``(23) Inherently personal purpose.--The term `inherently 
        personal purpose' means a purpose that, by its nature, confers 
        a personal benefit on a candidate, including a home mortgage 
        rent or utility payment, clothing purchase, noncampaign 
        automobile expense, country club membership, vacation, or trip 
        of a noncampaign nature, household food item, tuition payment, 
        admission to a sporting event, concert, theater, or other form 
        of entertainment not associated with a campaign, dues, fees, or 
        contribution to a health club or recreational facility, and any 
        other inherently personal living expense as determined under a 
        regulation issued under section 326.''.

SEC. 3. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE CONTRIBUTIONS BY 
              SENATE CANDIDATES.

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

``SEC. 324. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE CONTRIBUTIONS BY 
              SENATE CANDIDATES.

    ``A Senate candidate and the candidate's authorized committees 
shall not accept, during an election cycle, contributions from persons 
other than individuals residing in the candidate's State in an amount 
exceeding 40 percent of the total amount of contributions accepted 
during the election cycle.''.

SEC. 4. LIMITATION ON REIMBURSEMENT FROM CAMPAIGNS FOR CONTRIBUTIONS BY 
              SENATE CANDIDATES AND IMMEDIATE FAMILIES OF SENATE 
              CANDIDATES.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) (as amended by section 3) is amended by adding at the end 
the following:

``SEC. 325. LIMITATION ON REIMBURSEMENT FROM CAMPAIGNS FOR 
              CONTRIBUTIONS BY SENATE CANDIDATES AND IMMEDIATE FAMILIES 
              OF SENATE CANDIDATES.

    ``(a) In General.--The aggregate amount of contributions to an 
eligible Senate candidate or the candidate's authorized committees from 
the sources described in subsection (b) that may be reimbursed during 
an election cycle to the candidate or the candidate's immediate family 
shall not exceed $250,000.
    ``(b) Sources.--A source is described in this subsection if the 
source is--
            ``(1) personal funds of the candidate and members of the 
        candidate's immediate family; or
            ``(2) personal loans incurred by the candidate and members 
        of the candidate's immediate family.
    ``(c) Indexing.--The $250,000 amount under subsection (a) shall be 
increased as of the beginning of each calendar year based on the 
increase in the price index determined under section 315(c), except 
that the base period shall be calendar year 1996.''.

SEC. 5. RESTRICTION ON USE OF CAMPAIGN FUNDS BY SENATE CANDIDATES FOR 
              PERSONAL PURPOSES.

    (a) Restriction.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.) (as amended by section 4) is amended by 
adding at the end the following:

``SEC. 326. RESTRICTION ON USE OF CAMPAIGN FUNDS BY SENATE CANDIDATES 
              FOR PERSONAL PURPOSES.

    ``(a) Restriction.--A Senate candidate who accepts a contribution--
            ``(1) shall use the contribution only to pay a legitimate 
        and verifiable campaign expense; and
            ``(2) shall not use the contributions to pay any inherently 
        personal purpose.
    ``(b) Regulation.--Not later than 90 days after the date of 
enactment of this section, the Commission shall issue a regulation 
implementing subsection (a).''.
    (b) Application of Amendment.--The amendment made by subsection (a) 
shall apply to all contributions possessed by a candidate on the date 
of enactment of this Act and thereafter.

SEC. 6. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

    Section 3210(a)(6)(A) of title 39, United States Code, is amended 
to read as follows:
                    ``(A) A Member of Congress shall not mail any mass 
                mailing as franked mail during a year in which there 
                will be an election for the seat held by the Member 
                during the period between January 1 of that year and 
                the date of the general election for that Office, 
                unless the Member has made a public announcement that 
                the Member will not be a candidate for election to any 
                Federal office in that year (including the office held 
                by the Member).''.

SEC. 7. DECREASE IN PAC CONTRIBUTION LIMIT; INDEXING OF LIMITS.

    Section 315(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)) is amended--
            (1) in paragraph (2)(A) by striking ``$5,000'' and 
        inserting ``$1,000''; and
            (2) by adding at the end the following:
            ``(9) Indexing.--The $1,000 amounts under paragraphs (1)(A) 
        and (2)(A) shall be increased as of the beginning of each 
        calendar year based on the increase in the price index 
        determined under subsection (c), except that the base period 
        shall be calendar year 1996.''.

SEC. 8. RESTRICTION ON ACCEPTANCE OF CONTRIBUTIONS BY POLITICAL PARTY 
              COMMITTEES.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) (as amended by section 5) is amended by adding at the end 
the following:

``SEC. 327. RESTRICTION ON ACCEPTANCE OF CONTRIBUTIONS BY POLITICAL 
              PARTY COMMITTEES.

    ``It shall be unlawful for a committee of a political party to 
accept a contribution on the condition that the contribution be used to 
make a contribution to or an expenditure on behalf of a particular 
candidate.''.

SEC. 9. UNLIMITED COMMUNICATIONS BETWEEN A POLITICAL PARTY AND MEMBERS 
              OF THE POLITICAL PARTY.

    Section 315(d) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(d)) is amended by adding at the end the following:
    ``(4)(A) For purposes of applying the limitations under paragraphs 
(2) and (3), in determining the amount of expenditures made by a 
national committee of a political party or a State committee of a 
political party (including any subordinate committee of a State 
committee), there shall be excluded any amount spent by the committee 
for communications to the extent the communications are made to members 
of the political party.
    ``(B) For purposes of subparagraph (A), an individual shall be 
considered to be a `member' of a political party if--
            ``(i) the individual is registered to vote as a member of 
        the party;
            ``(ii) there is a public record that the individual voted 
        in the primary election of the political party in the most 
        recent primary election; or
            ``(iii) the individual has indicated in writing that the 
        individual is a member of the political party.''.

SEC. 10. PROMOTION OF STATE AND LOCAL PARTY ACTIVITY.

    (a) Contributions.--Section 301(8)(B) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
            (1) in clause (xiii) by striking ``and'' at the end;
            (2) in clause (xiv) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(xv) the payment by a State or local committee of a 
        political party for--
                    ``(I) the listing of the slate of the political 
                party's candidates, including the communication of the 
                slate to the public;
                    ``(II) the mailing of materials for or on behalf of 
                specific candidates by volunteers (including labeling 
                envelopes or affixing postage or other indicia to 
                particular pieces of mail), other than the mailing of 
                materials to a commercial list;
                    ``(III) conducting a telephone bank for or on 
                behalf of specific candidates staffed by volunteers; or
                    ``(IV) the distribution of collateral materials 
                (such as pins, bumper stickers, handbills, brochures, 
                posters, party tabloids, and yard signs) for or on 
                behalf of specific candidates (whether by volunteers or 
                otherwise).''.
    (b) Expenditures.--Section 301(9)(B) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431(9)(B)) is amended--
            (1) in clause (ix) by striking ``and'' at the end;
            (2) in clause (x) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(xi) the payment by a State or local committee of a 
        political party for--
                    ``(I) the listing of the slate of the political 
                party's candidates, including the communication of the 
                slate to the public;
                    ``(II) the mailing of materials for or on behalf of 
                specific candidates by volunteers (including labeling 
                envelopes or affixing postage or other indicia to 
                particular pieces of mail), other than the mailing of 
                materials to a commercial list;
                    ``(III) conducting a telephone bank for or on 
                behalf of specific candidates staffed by volunteers; or
                    ``(IV) the distribution of collateral materials 
                (such as pins, bumper stickers, handbills, brochures, 
                posters, party tabloids, and yard signs) for or on 
                behalf of specific candidates (whether by volunteers or 
                otherwise).''.
    (c) Conforming Amendments.--(1) Section 301(8)(B)(x) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)(x)) is amended by 
striking ``in connection with volunteer activities on behalf of 
nominees of such party'' and inserting ``in connection with State or 
local activities, other than any payment described in clause (xv)''.
    (2) Section 301(9)(B)(viii) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431(9)(B)(viii)) is amended by striking ``in connection 
with volunteer activities on behalf of nominees of such party'' and 
inserting ``in connection with State or local activities, other than 
any payment described in clause (xi)''.

SEC. 11. RELIEF OF SMALL PACS FROM REPORTING REQUIREMENTS.

    Section 304(a)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(a)(1)) is amended by inserting after ``political committee'' 
the following: ``(except a multicandidate political committee or 
separate segregated fund that has not, during an election cycle, as of 
any date within the election cycle, accepted contributions or made 
expenditures in an aggregate amount exceeding $25,000)''.

SEC. 12. RIGHTS OF EMPLOYEES RELATING TO THE PAYMENT AND USE OF LABOR 
              ORGANIZATION DUES.

    (a) Payment of Dues.--
            (1) Rights of employees.--Section 7 of the National Labor 
        Relations Act (29 U.S.C. 157) is amended by striking 
        ``membership'' and all that follows and inserting the 
        following: ``the payment to a labor organization of dues or 
        fees related to collective bargaining, contract administration, 
        or grievance adjustment necessary to performing the duties of 
        exclusive representation as a condition of employment as 
        authorized in section 8(a)(3).''.
            (2) Unfair labor practices.--Section 8(a)(3) of the 
        National Labor Relations Act (29 U.S.C. 158(a)(3)) is amended 
        by striking ``membership therein'' and inserting ``the payment 
        to such labor organization of dues or fees related to 
        collective bargaining, contract administration, or grievance 
        adjustment necessary to performing the duties of exclusive 
        representation''.
    (b) Requirements for Use of Dues for Certain Purposes.--
            (1) Written agreement.--Section 8 of the National Labor 
        Relations Act (29 U.S.C. 158) is amended by adding at the end 
        the following:
    ``(h)(1) An employee subject to an agreement between an employer 
and a labor organization requiring the payment of dues or fees to such 
organization as authorized in subsection (a)(3) may not be required to 
pay to such organization, nor may such organization accept payment of, 
any dues or fees not related to collective bargaining, contract 
administration, or grievance adjustment necessary to performing the 
duties of exclusive representation unless the employee has agreed to 
pay such dues or fees in a signed written agreement that shall be 
renewed between the first day of September and the first day of October 
of each year.
    ``(2) Such signed written agreement shall include a ratio, 
certified by an independent auditor, of the dues or fees related to 
collective bargaining, contract administration, or grievance adjustment 
necessary to performing the duties of exclusive representation and the 
dues or fees related to other purposes.''.
            (2) Written assignment.--Section 302(c)(4) of the Labor 
        Management Relations Act, 1947 (29 U.S.C. 186) is amended by 
        inserting before the semicolon the following: ``: Provided 
        further, That no amount may be deducted for dues unrelated to 
        collective bargaining, contract administration, or grievance 
        adjustment necessary to performing the duties of exclusive 
        representation unless a written assignment authorizes such a 
        deduction''.
    (c) Notice to Employees Relating to the Payment and Use of Dues.--
Section 8 of the National Labor Relations Act (29 U.S.C. 158) (as 
amended by subsection (b)(1)) is amended by adding at the end the 
following:
    ``(i)(1) An employer shall post a notice that informs the employees 
of their rights under section 7 of this Act and clarifies to such 
employees that an agreement requiring the payment of dues or fees to a 
labor organization as a condition of employment as authorized in 
subsection (a)(3) may only require that employees pay to such 
organization any dues or fees related to collective bargaining, 
contract administration, or grievance adjustment necessary to 
performing the duties of exclusive representation. A copy of such 
notice shall be provided to each employee not later than 10 days after 
the first day of employment.
    ``(2) The notice described in paragraph (1) shall be of such size 
and in such form as the Board shall prescribe and shall be posted in 
conspicuous places in and about the plants and offices of such 
employer, including all places where notices to employees are 
customarily posted.''.
    (d) Employee Participation in the Affairs of a Labor 
Organization.--Section 8(b)(1) of the National Labor Relations Act (29 
U.S.C. 158(b)(1)) is amended by striking ``therein;'' and inserting the 
following: ``therein, except that, an employee who is subject to an 
agreement between an employer and a labor organization requiring as a 
condition of employment the payment of dues or fees to such 
organization as authorized in subsection (a)(3) and who pays such dues 
or fees shall have the same right to participate in the affairs of the 
organization related to collective bargaining, contract administration, 
or grievance adjustment as any member of the organization;''.
    (e) Disclosure to Employees.--
            (1) Expenses reporting.--Section 201(b) of the Labor-
        Management Reporting and Disclosure Act of 1959 (29 U.S.C. 
        431(b)) is amended by adding at the end the following: ``Every 
        labor organization shall be required to attribute and report 
        expenses by function classification in such detail as necessary 
        to allow the members of such organization or the employees 
        required to pay any dues or fees to such organization to 
        determine whether such expenses were related to collective 
        bargaining, contract administration, or grievance adjustment 
        necessary to performing the duties of exclusive representation 
        or were related to other purposes.''.
            (2) Report information.--Section 201(c) of the Labor-
        Management Reporting and Disclosure Act of 1959 (29 U.S.C. 
        431(c)) is amended--
                    (A) by inserting ``and employees required to pay 
                any dues or fees to such organization'' after 
                ``members'';
                    (B) by striking ``suit of any member of such 
                organization'' and inserting ``suit of any member of 
                such organization or employee required to pay any dues 
                or fees to such organization''; and
                    (C) by striking ``such member'' and inserting 
                ``such member or employee''.
            (3) Regulations.--The Secretary of Labor shall prescribe 
        such regulations as are necessary to carry out the amendments 
        made by this subsection not later than 120 days after the date 
        of enactment of this Act.
    (f) Effective Date.--This section shall take effect on the date of 
enactment of this Act, except that the requirements contained in the 
amendments made by subsections (b) and (c) shall take effect 60 days 
after the date of enactment of this Act.

SEC. 13. EXPEDITED JUDICIAL REVIEW.

    (a) Civil Action.--The Federal Election Commission, a political 
committee under title III of the Federal Election Campaign Act of 1971, 
or any individual eligible to vote in any election for the office of 
President of the United States may bring a civil action in United 
States district court to determine the constitutionality of any 
provision of this Act or any amendment made by this Act.
    (b) Hearing by 3-Judge Court.--Immediately upon commencement of a 
civil action under subsection (a), a district court of 3 judges shall 
be convened to decide the action pursuant to section 2284 of title 28, 
United States Code.
    (c) Direct Appeal to Supreme Court.--An appeal of an interlocutory 
order or final judgment, decree, or order in a civil action under 
subsection (a) may be taken directly to the Supreme Court not later 
than 20 days after the entry of the judgment, decree, or order.
    (d) Expedited Review by Supreme Court.--The Supreme Court shall 
accept jurisdiction over, advance on the docket, and expedite to the 
greatest extent possible an appeal under subsection (c).