Apprehension of Tainted Money Act of 1997

Summary: Apprehension of Tainted Money Act of 1997 - Amends the Federal Election Campaign Act of 1971 (FECA) to require a political committee intending to return any contribution given to the committee in an amount of $500 or more to the person making the contribution (other than a contribution returned within 60 days of receipt by the committee), to transfer the contribution to the Federal Election Commission (Commission), with a request that the Commission return the contribution to the person making the contribution.  Directs the Commission to consider the return of any contribution, and any circumstances surrounding such return, in determining whether it has reason to believe that a person has committed a violation of FECA, Federal criminal law, or the Internal Revenue Code. 
Establishes a single interest-bearing escrow account for contributions transferred.  Requires the Commission, upon receiving amounts from a political committee to:  (1) deposit the amounts in the account established; and (2) notify the Attorney General of the receipt of the amounts from the political committee. 
Permits the Commission or the Attorney General to require any contribution deposited in the escrow account to be used as follows: (1) to be applied toward the payment of any fine or penalty imposed against the person making the contribution involved; and (2) if such fine or penalty is imposed, to be applied toward the costs incurred by the Commission or the Attorney General in conducting any investigation of the contribution involved.    Provides for the return of a contribution after deposit in the escrow account to the person making the contribution under specified circumstances. 
(Sec. 3) Directs the Commission and the Attorney General to issue final regulations to carry out the amendments of this Act no later than 30 days after enactment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Apprehension of Tainted Money Act of 
1997''.

SEC. 2. SPECIAL RULES FOR TREATMENT OF CONTRIBUTIONS TO BE RETURNED TO 
              DONORS BY POLITICAL COMMITTEES.

    (a) In General.--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 new section:

     ``treatment of certain contributions to be returned to donors

    ``Sec. 323. (a) Transfer to Commission.--Notwithstanding any other 
provision of this Act, if a political committee intends to return any 
contribution given to the committee in an amount equal to or greater 
than $500 to the person making the contribution (other than a 
contribution returned within 60 days of receipt by the committee), the 
committee shall transfer the contribution to the Commission, together 
with a request that the Commission return the contribution to the 
person making the contribution in accordance with this section. The 
Commission shall consider the return of any contribution, and any 
circumstances surrounding such return, in determining under section 
309(a)(2) whether it has reason to believe that a person has committed 
a violation of this Act, title 18, United States Code, or chapter 95 or 
96 of the Internal Revenue Code of 1986.
    ``(b) Establishment of Escrow Account.--
            ``(1) In general.--The Commission shall establish a single 
        interest-bearing escrow account for contributions transferred 
        under subsection (a).
            ``(2) Procedures upon transfer from committee.--Upon 
        receiving amounts from a political committee under subsection 
        (a), the Commission shall--
                    ``(A) deposit the amounts in the account 
                established under paragraph (1); and
                    ``(B) notify the Attorney General of the receipt of 
                the amounts from the political committee.
            ``(3) Use of interest to cover administrative costs.--Any 
        interest earned on amounts in the account established under 
        paragraph (1) shall be applied towards the administrative costs 
        incurred by the Commission in establishing and administering 
        the account, and any remaining interest shall be deposited in 
        the general fund of the Treasury.
    ``(c) Use of Amounts Placed in Escrow To Cover Fines, Penalties, 
and Costs of Investigation.--The Commission or the Attorney General may 
require any contribution deposited in the escrow account under 
subsection (b) to be used as follows:
            ``(1) To be applied towards the payment of any fine or 
        penalty imposed under this Act, title 18, United States Code, 
        or chapter 95 or 96 of the Internal Revenue Code of 1986 
        against the person making the contribution involved.
            ``(2) If such a fine or penalty is imposed, to be applied 
        towards the costs incurred by the Commission or the Attorney 
        General in conducting any investigation of the contribution 
        involved under this Act, title 18, United States Code, or 
        chapter 95 or 96 of the Internal Revenue Code of 1986.
    ``(d) Return of Contribution After Deposit in Escrow.--The 
Commission shall return a contribution deposited in the escrow account 
under subsection (b) to the person making the contribution if--
            ``(1) the Commission and the Attorney General certify that 
        the making of the contribution is not the subject of an 
        investigation under this Act, title 18, United States Code, or 
        chapter 95 or 96 of the Internal Revenue Code of 1986, or that 
        such an investigation has concluded;
            ``(2) the Commission and the Attorney General certify that 
        the contribution will not be used to cover fines, penalties, or 
        costs pursuant to subsection (c) or, if the contribution will 
        be used for such purposes, that the amounts required for such 
        purposes have been withdrawn from the escrow account and 
        subtracted from the returnable contribution; or
            ``(3) for any 120-day period after the date the 
        contribution is deposited in the escrow account, neither the 
        Commission nor the Attorney General have pursued an 
        investigation of the making of the contribution under this Act, 
        title 18, United States Code, or chapter 95 or 96 of the 
        Internal Revenue Code of 1986.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to contributions returned on or after the date of 
the enactment of this Act, without regard to whether the Federal 
Election Commission or Attorney General has issued regulations to carry 
out section 323 of the Federal Election Campaign Act of 1971 (as added 
by such subsection) by such date.

SEC. 3. EXPEDITED ADMINISTRATIVE PROCEDURE FOR REGULATIONS.

    Notwithstanding any provision of subchapter II of chapter 5 of 
title 5, United States Code, the Federal Election Commission and the 
Attorney General shall issue final regulations to carry out section 323 
of the Federal Election Campaign Act of 1971 (as added by section 2(a)) 
not later than 30 days after the date of the enactment of this Act.