A bill to amend the Federal Election Campaign Act of 1971 to improve the enforcement capabilities of the Federal Election Commission, and for other purposes.

SECTION 1. FINDINGS AND DECLARATION.

    Congress finds and declares that--
            (1) maintaining and improving the strength and 
        effectiveness of the Commission is essential to the integrity 
        of the Federal election system;
            (2) the Commission was created in the wake of the Watergate 
        scandal to ensure the integrity of Federal elections by 
        overseeing Federal election disclosure and enforcing Federal 
        campaign finance law;
            (3) the sharply increasing number of cases and the growing 
        volume of financial activity is making it increasingly 
        difficult for the Commission to fulfill its watchdog role in a 
        timely and effective manner;
            (4) the Commission finds itself without a sufficient budget 
        and without the basic enforcement powers that would enable the 
        Commission to fulfill its watchdog role in a timely and 
        effective manner; and
            (5) Congress should provide the Commission with sufficient 
        resources and authority to allow the Commission to carry out 
        its duties.

SEC. 2. FILING OF FEDERAL ELECTION CAMPAIGN REPORTS USING COMPUTERS AND 
              FACSIMILE MACHINES.

    Section 302(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(a)) is amended by striking paragraph (11) and inserting at 
the end the following:
            ``(11)(A) The Commission may prescribe regulations under 
        which persons required to file designations, statements, and 
        reports under this Act--
                    ``(i) are required to maintain and file a 
                designation, statement, or report for any calendar year 
                in electronic form accessible by computers if the 
                person has, or has reason to expect to have, aggregate 
                contributions or expenditures in excess of a threshold 
                amount determined by the Commission; and
                    ``(ii) may maintain and file a designation, 
                statement, or report in that manner if not required to 
                do so under regulations prescribed under clause (i).
            ``(B) The Commission shall prescribe regulations which 
        allow persons to file designations, statements, and reports 
        required by this Act through the use of facsimile machines.
            ``(C) In prescribing regulations under this paragraph, the 
        Commission shall provide methods (other than requiring a 
        signature on the document being filed) for verifying 
        designations, statements, and reports covered by the 
        regulations. Any document verified under any of the methods 
        shall be treated for all purposes (including penalties for 
        perjury) in the same manner as a document verified by 
        signature.''.

SEC. 3. AUDITS BY THE FEDERAL ELECTION COMMISSION.

    (a) Random Audits.--Section 311(b) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 438(b)) is amended--
            (1) by inserting ``(1)'' before ``The Commission''; and
            (2) by adding at the end the following:
            ``(2) Random audits.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                the Commission may conduct random audits and 
                investigations to ensure voluntary compliance with this 
                Act.
                    ``(B) Selection of subjects.--The aggregate amount 
                of contributions received by an eligible Senate 
                candidate as of the end of each reporting period under 
                section 304 shall meet the requirement of paragraph 
                (1).
                    ``(C) Limitation.--The Commission shall not conduct 
                an audit or investigation of a candidate's authorized 
                committee under paragraph (1) until the candidate is no 
                longer a candidate for the office sought by the 
                candidate in an election cycle.
                    ``(D) Applicability.--This paragraph does not apply 
                to an authorized committee of a candidate for President 
                or Vice President subject to audit under section 9007 
                or 9038 of the Internal Revenue Code of 1986.''.
    (b) Extension of Period During Which Campaign Audits May Be 
Begun.--Section 311(b) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 438(b)) is amended by striking ``6 months'' and inserting ``12 
months''.

SEC. 4. AUTHORITY OF THE FEDERAL ELECTION COMMISSION TO SEEK 
              INJUNCTION.

    Section 309(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)) is amended--
            (1) by adding at the end the following:
    ``(13)(A) If, at any time in a proceeding described in paragraph 
(1), (2), (3), or (4), the Commission believes that--
            ``(i) there is a substantial likelihood that a violation of 
        this Act is occurring or is about to occur;
            ``(ii) the failure to act expeditiously will result in 
        irreparable harm to a party affected by the potential 
        violation;
            ``(iii) expeditious action will not cause undue harm or 
        prejudice to the interests of others; and
            ``(iv) the public interest would be best served by the 
        issuance of an injunction;
the Commission may initiate a civil action for a temporary restraining 
order or a preliminary injunction pending the outcome of the 
proceedings described in paragraphs (1), (2), (3), and (4).
    ``(B) An action under subparagraph (A) shall be brought in the 
United States district court for the district in which the defendant 
resides, transacts business, or may be found, or in which the violation 
is occurring, has occurred, or is about to occur.'';
            (2) in paragraph (7), by striking ``(5) or (6)'' and 
        inserting ``(5), (6), or (13)''; and
            (3) in paragraph (11), by striking ``(6)'' and inserting 
        ``(6) or (13)''.

SEC. 5. INCREASE IN PENALTY FOR KNOWING AND WILLFUL VIOLATIONS.

    Section 309(a)(5)(B) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 437g(a)(5)(B)) is amended by striking ``the greater of 
$10,000 or an amount equal to 200 percent'' and inserting ``the greater 
of $15,000 or an amount equal to 300 percent''.

SEC. 6. CIVIL PENALTIES FOR MINOR REPORTING VIOLATIONS.

    Section 309(a)(4)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 437g(a)(4)(A)) is amended--
            (1) in the first sentence of clause (i) by striking 
        ``clause (ii)'' and inserting ``clauses (ii) and (iii)''; and
            (2) by adding at the end the following:
            ``(iii) Minor reporting violations.--
                    ``(I) Definition of minor reporting violation.--The 
                Commission shall by regulation establish a definition 
                of the term `minor reporting violation' for the 
                purposes of this clause.
                    ``(II) Assessment by the commission.--After notice 
                and hearing, the Commission may, without following the 
                procedure of subparagraph (A) or paragraph (5) or (6), 
                assess a civil penalty against a person that commits a 
                minor reporting violation.
                    ``(III) Schedule of amounts of civil penalties.--
                The Commission shall by regulation establish a schedule 
                of the amounts (or ranges of amounts) of civil 
                penalties (not to exceed $5,000 or an amount equal to 
                the amount of any contribution or expenditure involved 
                in the violation) that shall be assessed for different 
                categories of minor reporting violations.
                    ``(IV) Considerations.--In determining the amounts 
                of civil penalties, the Commission shall consider the 
                effect that a violation could be expected to have on 
                the conduct of an election campaign or on the outcome 
                of an election, the previous compliance record of the 
                violator, and other appropriate factors.
                    ``(V) Limitation.--The Commission shall not assess 
                a civil penalty under this clause within 30 days before 
                the date of an election.
                    ``(VI) Enforcement and judicial review.--The 
                Commission, acting through its own attorneys, may bring 
                a civil action in United States district court for 
                payment of, and a person against whom a civil penalty 
                has been assessed may bring a civil action in United 
                State district court to review, a civil penalty under 
                subclause (II). Paragraph (7) shall apply to a civil 
                action under this subclause.
                    ``(VII) Election of remedy.--If the Commission 
                elects to proceed under this clause against a person 
                for a minor reporting violation, the Commission shall 
                be precluded from seeking enforcement with respect to 
                that violation under any other provision of this Act or 
                other law.''.

SEC. 7. FILING OF SENATE ELECTION REPORTS WITH THE FEDERAL ELECTION 
              COMMISSION, RATHER THAN WITH THE SECRETARY OF THE SENATE.

    (a) Section 302 Amendments.--Section 302 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 432) is amended by striking subsection 
(g) and inserting the following:
    ``(g) Place of Filing.--All designations, statements, and reports 
required to be filed under this Act shall be filed with the 
Commission.''.
    (b) Section 304 Amendments.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) is amended--
            (1) in subsection (a)(6)(A), by striking ``Secretary or the 
        Commission'' through ``as appropriate'' and inserting 
        ``Commission and Secretary of State''; and
            (2) in the third sentence of subsection (c)(2), by striking 
        ``the Secretary or''.
    (c) Section 311 Amendments.--Section 311(a)(4) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 438(a)(4)) is amended by 
striking ``Secretary or the''.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    The Federal Election Campaign Act of 1971 is amended--
            (1) by striking section 314 (2 U.S.C. 439c) and inserting 
        the following:

``SEC. 314. [REPEALED].'';

        and
            (2) by inserting after section 406 the following:

``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this Act and 
chapters 95 and 96 of the Internal Revenue Code of 1986--
            ``(1) $1,700,000 for fiscal year 1997 (in addition to 
        appropriations made before the date of enactment of this 
        section, to be used in the investigation of the extraordinary 
        problems associated with the 1996 elections such as the making 
        of contributions by nonresident foreign nationals and the 
        acceptance of such contributions by candidates, the use of 
        funds not reported as contributions or expenditures to 
        circumvent expenditure limits applicable to political party 
        committees, coordination with candidates in the making of 
        expenditures claimed to be independent expenditures, and 
        expenditures on advertisements claimed to be purely issue-
        oriented that clearly suggested support of or opposition to 
        particular candidates) ; and
            ``(2) $34,200,000 for fiscal year 1998.''.

Summary: Amends the Federal Election Campaign Act of 1971 (FECA) to authorize the Federal Election Commission (Commission) to issue a regulation to require the filing of designations, statements, and reports using computers if the person has, or has reason to expect to have, aggregate contributions or expenditures in excess of a threshold amount determined by the Commission. Requires the Commission to prescribe a regulation allowing persons to file designations, statements, and reports using facsimile machines. Authorizes the Commission to conduct random audits and investigations to ensure voluntary compliance. Extends the period during which a campaign audit of a candidate's authorized committee may be begun. Grants authority to the Commission to seek at any time in a proceeding a temporary restraining order or a temporary injunction if the Commission believes there is a substantial likelihood that a violation is occurring or is about to occur. Revises the requirement regarding the payment of a civil penalty for knowing and willful violations of any contribution or expenditure to authorize, under a conciliation agreement entered into by the Commission, the payment of a civil penalty not exceeding the greater of $15,000 or an amount equal to 300 percent . Sets forth the following with respect to civil penalties for minor reporting violations. Directs the Commission by regulation to: (1) establish a definition of the term minor reporting violation. And (2) establish a schedule of the amounts of civil penalties to be assessed for different categories of minor reporting violations. Prohibits the Commission from assessing a civil penalty within 30 days before the date of an election. Permits the Commission to seek enforcement of a civil action in US district court. Repeals requirements for the filing of designations, statements, and reports required under FECA by a Senate candidate and the candidate's principal campaign committee with the Secretary of the Senate. Replaces them with a requirement for all such designations, statements, and reports to be filed with the Commission. Revises FECA authorization of appropriations provisions to, among other things: (1) add an additional amount for FY 1997 to be used to investigate the extraordinary problems associated with the 1996 elections, and (2) authorize appropriations for FY 1998.