SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FEC Reauthorization Act of 1998''.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS FOR FEDERAL ELECTION COMMISSION 
              FOR FISCAL YEAR 1999.

    Section 314 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
439c) is amended--
            (1) by striking ``and $9,400,000'' and inserting 
        ``$9,400,000''; and
            (2) by striking the period at the end and inserting the 
        following: ``, and $33,700,000 for the fiscal year ending 
        September 30, 1999, of which $2,800,000 shall be available only 
        if at least 4 members of the Commission vote not later than 
        September 30, 1998, to adopt a re-prioritization plan for the 
        purpose of improving enforcement procedures and preventing the 
        unnecessary dismissal of appropriate enforcement actions.''.

SEC. 3. APPOINTMENT AND SERVICE OF STAFF DIRECTOR AND GENERAL COUNSEL 
              OF COMMISSION.

    (a) Appointment; Length of Term of Service.--
            (1) In general.--The first sentence of section 306(f)(1) of 
        the Federal Election Campaign Act of 1971 (2 U.S.C. 437c(f)(1)) 
        is amended by striking ``by the Commission'' and inserting the 
        following: ``by an affirmative vote of not less than 4 members 
        of the Commission and may not serve for a term of more than 4 
        consecutive years without reappointment in accordance with this 
        paragraph''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any individual serving as the staff 
        director or general counsel of the Federal Election Commission 
        on or after January 1, 1999, without regard to whether or not 
        the individual served as staff director or general counsel 
        prior to such date.
    (b) Treatment of Individuals Filling Vacancies; Termination of 
Authority Upon Expiration of Term.--Section 306(f)(1) of such Act (2 
U.S.C. 437c(f)(1)) is amended by inserting after the first sentence the 
following new sentences: ``An individual appointed as a staff director 
or general counsel to fill a vacancy occurring other than by the 
expiration of a term of office shall be appointed only for the 
unexpired term of the individual he or she succeeds. An individual 
serving as staff director or general counsel may not serve in any 
capacity on behalf of the Commission after the expiration of the 
individual's term unless reappointed in accordance with this 
paragraph.''.

SEC. 4. ALTERNATIVE PROCEDURES FOR IMPOSITION OF PENALTIES FOR 
              REPORTING VIOLATIONS.

    (a) In General.--Section 309(a)(4) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 437g(a)(4)) is amended--
            (1) in subparagraph (A)(i), by striking ``clause (ii)'' and 
        inserting ``clause (ii) and subparagraph (C)''; and
            (2) by adding at the end the following new subparagraph:
    ``(C)(i) Notwithstanding subparagraph (A), in the case of a 
violation of any requirement under this Act relating to the reporting 
of receipts or disbursements, the Commission may--
            ``(I) find that a person committed such a violation on the 
        basis of information obtained pursuant to the procedures 
        described in paragraphs (1) and (2); and
            ``(II) based on such finding, require the person to pay a 
        civil money penalty in an amount determined under a schedule of 
        penalties which is established and published by the Commission 
        and which takes into account the amount of the violation 
        involved, the existence of previous violations by the person, 
        and such other factors as the Commission considers appropriate.
    ``(ii) The Commission may not make any determination adverse to a 
person under clause (i) until the person has been given written notice 
and an opportunity for the determination to be made on the record.
    ``(iii) Any person against whom an adverse determination is made 
under this subparagraph may obtain a review of such determination in 
the district court of the United States for the district in which the 
person is found, resides, or transacts business, by filing in such 
court (prior to the expiration of the 30-day period which begins on the 
date the person receives notification of the determination) a written 
petition requesting that the determination be modified or set aside.''.
    (b) Conforming Amendment.--Section 309(a)(6)(A) of such Act (2 
U.S.C. 437g(a)(6)(A)) is amended by striking ``paragraph (4)(A)'' and 
inserting ``paragraph (4)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to violations occurring on or after January 1, 1999.

SEC. 5. STANDARD FOR INITIATION OF ACTIONS BY FEC.

    (a) In General.--Section 309(a)(2) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 437g(a)(2)) is amended to read as follows:
    ``(2) Not later than 90 days after the time for responding to a 
complaint under paragraph (1) has elapsed for all respondents, the 
general counsel of the Commission shall provide a recommendation to the 
Commission regarding whether there is sufficient or insufficient reason 
for the Commission to investigate any violation alleged in the 
complaint. If the Commission, upon receiving a complaint under 
paragraph (1) (or on the basis of information ascertained in the normal 
course of carrying out its supervisory responsibilities), determines by 
an affirmative vote of 4 of its members that it has a sufficient reason 
to investigate whether a person has committed (or is about to commit) a 
violation of this Act or of chapter 95 or chapter 96 of the Internal 
Revenue Code of 1986, the Commission (through its chair or vice chair) 
shall notify the person of the alleged violation, and shall set forth 
in such notification the factual and legal basis for such alleged 
violation. The Commission shall make an investigation of such alleged 
violation (which may include a field investigation or audit) in 
accordance with the provisions of this section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to complaints filed on or after January 1, 1999.
FEC Reauthorization Act of 1998 - Amends the Federal Election Campaign Act of 1971 (FECA) to authorize appropriations for the Federal Election Commission for FY 1999.  Conditions availability of a specified amount of such funds on the Commission adopting a re-prioritization plan for improving enforcement procedures and preventing the unnecessary dismissal of appropriate enforcement actions. 
Provides for the appointment of the Commission's staff director and general counsel by an affirmative vote of four Commissioners. Prohibits:  (1) the staff director and general counsel of the Commission from serving for more than four consecutive years without reappointment; (2) an individual appointed to finish an unexpired term of office of a staff director or general counsel from serving beyond that term; or (3) a person serving as staff director or general counsel from subsequently serving in any Commission capacity unless reappointed. 
Sets forth procedures allowing the Commission to find that a person violated FECA provisions involving the reporting of receipts or disbursements and to impose civil monetary penalties.  Entitles any person to file a petition with the appropriate U.S. district court to obtain a review of an adverse determination under such procedures. 
Requires the Commission's general counsel, within 90 days after the time for responding to a filed complaint has elapsed for all respondents, to provide a recommendation to the Commission regarding whether there is sufficient reason to investigate the violation alleged in the complaint.
FEC Reauthorization Act of 1998