That this Act shall be 
known as the ``Grassroots Campaigning and Election Reform Act of 
1993''.

                   reliance on in-state contributions

    Sec. 2. (a) Chapter 2, section 441 of title 2, United States Code, 
is amended by inserting a new subsection (h), and relettering 
subsequent sections appropriately:
    ``(h)(1) It shall be unlawful for any candidate for the Senate of 
the United States or the House of Representatives of the United States 
to solicit or accept any funds for the purposes of election to the 
Senate or the House of Representatives from any individual, 
organization, or political action committee that does not reside or 
have its headquarters within the State from which such candidate seeks 
election.
    ``(2) Each contributor to a candidate under the terms of paragraph 
(1) of this subsection shall provide evidence of the State of residence 
of such contributor, pursuant to limits described in paragraph (3) of 
this subsection.
    ``(3)(A) For the purpose of determining the accuracy of any 
declaration of residence by a contributor, each candidate for the 
Congress of the United States shall maintain records of the home State 
of each contributor.
    ``(B) It shall be presumed that a contributor is a resident of the 
candidate's State if the contribution is made in the form of a check 
drawn on a bank within such State, and if the contribution is 
physically presented to the candidate or his agent in such State or 
mailed in an envelope postmarked in such State.
    ``(C) For any contribution in cash in excess of $99, such name and 
address shall be accompanied by a notarized statement attesting to the 
accuracy of such name and address.
    ``(D) Notwithstanding the provisions of subparagraph (B) of this 
subsection, any contribution in excess of $499 shall be accompanied by 
a notarized statement attesting to the accuracy of the name and address 
of the contributor.
    ``(E) Any contribution from a political party to a candidate shall 
be accompanied by a notarized statement as to the residence of the 
contributors of such funds.
    ``(4) Any contribution that fails to meet the criteria described in 
paragraph (3) of this subsection shall, within ten days of receipt, be 
returned to the contributor, if known, or given to a nonpolitical 
health or educational charitable organization of the candidate's choice 
within the candidate's State.
    ``(5) Each violation of this section shall subject the candidate to 
a civil penalty of $1,000''.
    (b)(1) As of January 31, 1993, each Member of the Senate of the 
United States elected in 1992 and each Member of the House of 
Representatives of the United States shall rebate to each Member's 
contributors, on a pro rata basis, all campaign funds retained as of 
January 1, 1993, or donate such funds to a nonpolitical health or 
educational charitable organization of the Member's choice within the 
Member's State.
    (2) As of January 31, 1993, each Member of the Senate of the United 
States who was not a candidate for election in 1992 shall rebate to 
each Member's contributors, on a pro rata basis, all campaign funds 
raised as of such date, or donate such funds to a nonpolitical health 
or educational charitable organization of the Member's choice within 
the Member's State.
    (3) Any funds not rebated or contributed pursuant to this 
subsection shall subject the Member to a civil penalty equal to twice 
the sums involved.

               limitations on political action committees

    Sec. 3. (a) Chapter 2, section 441b of title 2, United States Code, 
is amended by deleting all of the text following subsection (b)(2)(B).
    (b) Chapter 2, section 441a(a)(2) of title 2, United States Code, 
is amended by striking out ``5,000'' and inserting in lieu thereof 
``500'' in subsection (A), and by placing a period after the word 
``committee'' and striking all that follows in subsection (C).
    (c) Chapter 2, section 441b of title 2, United States Code, is 
amended by inserting the following as a new subparagraph ``(C)'':
    ``(c) It is unlawful for any bank, labor organization, or 
corporation referred to in subparagraph (a) of this section to make any 
contribution or expenditure for the establishment, administration, or 
solicitation of contributions to any political committee.''.

              use of personal wealth for campaign purposes

    Sec. 4. Chapter 2, section 441 of title 2, United States Code, is 
amended by inserting a new subsection (i), and relettering subsequent 
sections appropriately:
    ``(i)(1)(A) Within fifteen days after a candidate qualifies for the 
ballot, under applicable State law, such candidate shall file with the 
Commission, a declaration stating whether or not such candidate intends 
to expend, in the aggregate:
            ``(i) At least $250,000, if a candidate for the Senate of 
        the United States, or
            ``(ii) At least $100,000, if a candidate for the House of 
        Representatives of the United States,
from his personal funds, and the funds of his immediate family, and 
incur personal loans in excess of such amount, in connection with his 
campaign for such office.
    ``(B) For purposes of this subsection, `immediate family' means a 
candidate's spouse, and any child, stepchild, parent, grandparent, 
brother, sister, half-brother, or half-sister of the candidate, and the 
spouse of any such person and any child, stepchild, parent, 
grandparent, brother, half-brother, sister, of half-sister of the 
candidate's spouse, and the spouse of any such person.
    ``(C) The statement required by this subsection shall be in such 
form, and shall contain such information, as the Commission may, by 
regulation, require.
    ``(2) Notwithstanding any other provision of law, in any election 
in which a candidate declares that he intends to expend more than the 
limits described in subparagraph (A) of paragraph (1), or does expend 
and incur loans in excess of such limits, or fails to file the 
declaration required by this subsection, the limitations on 
contributions in subsection (h) of this section, as they apply to all 
other candidates in such election in such State, shall be waived and 
the limitations on contributions in subsection (a) of this section, as 
they apply to all other individuals running for such office, shall be 
increased for such election as follows:
            ``(A) The limitations provided in subsection (a)(1)(A) 
        shall be increased to an amount equal to 1000 per centum of 
        such limitation, and
            ``(B) The limitations provided in subsection (a)(3) shall 
        be increased to an amount equal to 150 percentum of such 
        limitation, but only to the extent that contributions above 
        such limitation are made to candidates affected by the 
        increased levels provided in subparagraph (A).
    ``(3) If the limitations described in paragraph (2) of this 
subsection are increased pursuant to paragraph (2) for a convention or 
a primary election, as they relate to an individual candidate, and such 
individual candidate is not a candidate in any subsequent election in 
such campaign, including the general election, the provisions of 
paragraph (2) shall no longer apply.
    ``(4) Any candidate who--
            ``(A) declares, pursuant to subparagraph (1) of this 
        paragraph that he does not intend to expend, in the aggregate, 
        more than the limits described in subparagraph (1)(A); and
            ``(B) subsequently does expend and incur loans in excess of 
        such amounts, or intends to expend and incur loans in excess of 
        such amounts,
such candidate shall notify and file an amended declaration with the 
Commission and shall notify all other candidates for such office within 
twenty-four hours after changing such declaration or exceeding such 
limits, whichever first occurs, by sending such notice by certified 
mail, return receipt requested. Failure to so notify and so file shall 
subject such candidate to a civil penalty equal to twice the fund so 
expended.
    ``(5) Any candidate who incurs personal loans in connection with 
his campaign under this Act shall not repay, either directly or 
indirectly, such loans from any contributions made to such candidate or 
any authorized committee of such candidate, if such contribution was 
made following the date of such election.
    ``(6) Notwithstanding any other provision of law, no candidate 
under this title may make expenditures from his personal funds or the 
personal funds of his immediate family, or incur personal loans in 
connection with his campaign for election to such office at any time 
after ninety days before the date of such election, or twenty-four 
hours after the primary election for such office, whichever date shall 
later occur. The provisions of this paragraph shall apply to all 
candidates regardless of whether such candidate has reached the limits 
provided in paragraph (1) of this subsection. Violation of this 
paragraph shall subject such violator to a civil penalty three times 
the funds so expended.
    ``(7) The Commission shall take such action as it deems necessary 
under the enforcement provisions of this Act to assure compliance with 
the provisions of this subsection.''.

                               soft money

    Sec. 5. (a) At the appropriate place in the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441), insert the following new section:
    ``(  ) (A) Any amount solicited, received or spent by a national, 
State, or local committee of a political party, directly or indirectly, 
shall be subject to the provisions of this Act, if such amount is 
solicited, received, or spent in connection with a Federal election. No 
part of such amount may be allocated to a non-Federal account or 
otherwise maintained in, or paid from, an account that is not subject 
to this Act. This section shall not apply to amounts described in 
section 431 (b)(B)(viii) of title 2.
    ``(B) For purposes of this section, the term ``in connection with a 
Federal election'' includes any activity that may affect a Federal 
election, including but not limited to the following:
            ``(1) Voter registration and get-out-the-vote activities;
            ``(2) Generic activities, including but not limited to any 
        broadcasting, newspaper, magazine, billboard, mail, or similar 
        type of communication or public advertising;
            ``(3) Campaign materials which identify a Federal 
        candidate, regardless of any other candidate who may also be 
        identified.''.

                              severability

    Sec. 6. If any provision of this Act, or any amendment made by this 
Act, or the application of any such provision to any person or 
circumstance is held invalid, the validity of any other such provision, 
and the application of such provision to other persons and 
circumstances, shall not be affected thereby.
Grassroots Campaigning and Election Reform Act of 1993 - Amends the Federal Election Campaign Act of 1971 to:  (1) prohibit congressional candidates from raising campaign funds from outside their State; (2) prohibit the establishment of political committees by banks, labor organizations, or corporations; (3) reduce the amount a person may contribute to a political committee; (4) limit candidate expenditures of personal funds, family funds, or personal loans in connection with an election campaign; and (5) apply restrictions and requirements to soft money.
Grassroots Campaigning and Election Reform Act of 1993