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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2944 Introduced in House (IH)]

  2d Session
                                H. R. 2944

 To reform the financing of Federal elections, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 1996

 Mrs. Maloney introduced the following bill; which was referred to the 
  Committee on House Oversight, and in addition to the Committees on 
Commerce, the Judiciary, Government Reform and Oversight, and Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To reform the financing of Federal elections, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Election Reform Act of 
1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. House of Representatives election spending limits and 
                            benefits.
Sec. 102. Broadcast rates and preemption.
Sec. 103. Reduced postage rates.
Sec. 104. Contribution limitations for House of Representatives 
                            candidates.
Sec. 105. Reporting requirements.
           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

     Subtitle A--Provisions Relating to Political Action Committees

Sec. 201. Prohibition of leadership committees; excess contributions.
Sec. 202. Aggregate limit on certain contributions.
Sec. 203. Contributions by lobbyists.
Sec. 204. Limitation on financial support provided to political 
                            committees by connected organizations.
   Subtitle B--Provisions Relating to Soft Money of Political Parties

Sec. 211. Soft money of political parties.
Sec. 212. Reporting requirements.
Sec. 213. Building fund exception to the definition of the term 
                            ``contribution''.
     Subtitle C--Soft Money of Persons Other Than Political Parties

Sec. 221. Soft money of persons other than political parties.
                       Subtitle D--Contributions

Sec. 231. Restrictions on bundling.
Sec. 232. Contributions by dependents not of voting age.
          Subtitle E--Additional Prohibitions on Contributions

Sec. 241. Allowable contributions for candidates.
                  Subtitle F--Independent Expenditures

Sec. 251. Provisions relating to independent expenditures.
Sec. 252. Mandatory limitation on independent expenditures in House of 
                            Representatives elections.
Sec. 253. Reporting requirements for certain independent expenditures.
Sec. 254. Designation of income tax payments to Independent Expenditure 
                            Response Fund.
Sec. 255. Independent Expenditure Response Fund.
Sec. 256. Registration fee for multicandidate political committees.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Audits.
Sec. 302. Change in certain reporting from a calendar year basis to an 
                            election cycle basis.
Sec. 303. Expedited procedures.
Sec. 304. Official Mass Mailing Allowance.
Sec. 305. Provisions relating to Members' Official Mail Allowance.
Sec. 306. Intent of Congress.
Sec. 307. Expedited review of constitutional issues.
Sec. 308. Effective date.
Sec. 309. Regulations.

TITLE I--HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND BENEFITS

SEC. 101. HOUSE OF REPRESENTATIVES ELECTION SPENDING LIMITS AND 
              BENEFITS.

    The Federal Election Campaign Act of 1971 is amended by adding at 
the end the following new title:

 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR HOUSE OF REPRESENTATIVES 
                           ELECTION CAMPAIGNS

``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.

    ``(a) In General.--For purposes of this title, a candidate is an 
eligible House of Representatives candidate if the Commission has 
certified, pursuant to section 504, that the candidate--
            ``(1) meets the election cycle filing requirements of 
        subsection (b); and
            ``(2) meets the threshold contribution requirements of 
        subsection (c).
    ``(b) Filing Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if the candidate files with the Commission under penalty of 
        perjury a declaration that--
                    ``(A) the candidate and the candidate's authorized 
                committees--
                            ``(i) will not exceed the expenditure 
                        limits under section 502(a) and (b);
                            ``(ii) will not, in the event of a runoff 
                        election, accept contributions in excess of the 
                        runoff expenditure limit, reduced by any 
                        amounts transferred to this election cycle from 
                        a preceding election cycle; and
                            ``(iii) will not accept any contributions 
                        in violation of section 315; and
                    ``(B) the candidate intends to make use of the 
                benefits provided under section 503.
            ``(2) Deadline for filing declaration.--The declaration 
        under paragraph (1) shall be filed the date the candidate files 
        as a candidate for the primary election. In the case of a 
        candidate who is not eligible to participate in a primary 
        election but qualifies for the general election ballot under 
        State law, the declaration under paragraph (1) shall be filed 
        not later than the date the candidate qualifies for the general 
        election ballot under State law.
            ``(3) Notification.--A candidate who--
                    ``(A) files a declaration pursuant to subsection 
                (b)(1) of this Act; and
                    ``(B) subsequently acts in a manner inconsistent 
                with any of the limitations or requirements of the 
                declaration filed under subsection (b)(1) shall file a 
                notification regarding such acts with the Commission 
                not later than 24 hours after the first such act 
                inconsistent with any of the limitations or 
                requirements and shall at the same time notify all 
                other candidates for the same office by sending a copy 
                of the notification filed with the Commission by 
                certified mail, return receipt requested.
    ``(c) Threshold Contribution Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if the candidate and the candidate's authorized committees 
        have received allowable contributions during the applicable 
        period in an amount equal to 10 percent of the election cycle 
        expenditure limit under section 502(a), and file with the 
        Commission under penalty of perjury a statement with supporting 
        materials demonstrating that this requirement has been met.
            ``(2) Definitions.--For purposes of this Act--
                    ``(A) the term `allowable contributions' means 
                contributions that are made as gifts of money by an 
                individual pursuant to a written instrument identifying 
                such individual as the contributor, except that such 
                term shall not include contributions from individuals 
                residing outside the candidate's State to the extent 
                such contributions exceed 25 percent of the amount set 
                forth in paragraph (1), provided that--
                            ``(i) no more than $200 of any contribution 
                        from an individual shall be taken in account; 
                        and
                            ``(ii) such term shall not include any 
                        contribution within the meaning of section 
                        315(a)(8), as amended by section 231; and
                    ``(B) the term `applicable period' means--
                            ``(i) the period beginning on January 1 of 
                        the calendar year preceding the calendar year 
                        of the general election involved and ending on 
                        the date of the general election; or
                            ``(ii) in the case of a special election 
                        for the office of Representative in, or 
                        Delegate or Resident Commissioner to, the 
                        Congress, the period beginning on the date the 
                        vacancy in such office occurs and ending on the 
                        date of the general election.

``SEC. 502. LIMITATION ON EXPENDITURES.

    ``(a) Election Cycle Expenditure Limit.--
            ``(1) In general.--Except as otherwise provided in this 
        title, the aggregate amount of expenditures (other than 
        expenditures for legal fees) for an election cycle by an 
        eligible House of Representatives candidate and the candidate's 
        authorized committees shall not exceed $600,000.
            ``(2) Indexing.--The amount under paragraph (1) 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.
    ``(b) Runoff Expenditure Limits.--The aggregate amount of 
expenditures for a runoff election by an eligible House of 
Representatives candidate and the candidate's authorized committees 
shall not exceed 20 percent of the election cycle expenditure limit 
under subsection (a).
    ``(c) Payment of Taxes.--The limitation under subsection (a) shall 
not apply to any expenditure for Federal, State, or local taxes with 
respect to earnings on contributions raised.
    ``(d) Contested Primary.--If, as determined by the Commission, an 
eligible House of Representatives candidate in a contested primary wins 
that primary election by a margin of 15 percent or less, the limitation 
contained in subsection (a)(1) shall be increased by $200,000 for such 
candidate, and such candidate shall be entitled to raise additional 
contributions not to exceed this amount.
    ``(e) Rules Applicable When Mandatory Election Cycle Expenditure 
Limit Not in Effect.--(1) For purposes of the Federal Election Campaign 
Act of 1971, during any period beginning after the effective date of 
this Act in which the requirement of paragraph (1) is not in effect, 
there shall be in effect a voluntary election cycle expenditure limit 
which shall operate in the same manner as subsection (a), except that 
paragraph (2) shall also be in effect.
    ``(2) Complying Candidates Running Against Noncomplying 
Candidates.--(A) If in the case of an election with more than one 
candidate where any candidate either--
            ``(i) fails to be certified as an eligible candidate by the 
        Commission and has expended personal funds in excess of 5 
        percent of the election cycle limits contained in subsection 
        (a) or has received contributions or expended personal funds 
        which in the aggregate exceed 50 percent of the election cycle 
        limits contained in subsection (a); or
            ``(ii) violates the limitations on expenditures of this 
        Act;
an eligible candidate shall be treated as provided in subparagraph (B) 
and a candidate referred to in clause (i) or (ii) shall be treated as 
provided in subparagraph (C).
    ``(B) The treatment referred to in subparagraph (A) with respect to 
an eligible candidate is that the limitations under subsection (a), 
section 323, and section 325, shall not apply with respect to the 
candidate.
    ``(C) The treatment referred to in subparagraph (A) with respect to 
a candidate referred to in subparagraph (A) (i) or (ii) is that the 
candidate shall pay to the Independent Expenditure Response Fund an 
amount equal to 35 percent of any amount expended in excess of the 
limitation amount under subsection (a)(1) and the candidate shall not 
receive benefits under section 503 or payments under section 252(b) of 
the Federal Election Reform Act of 1996.

``SEC. 503. BENEFITS ELIGIBLE CANDIDATES ENTITLED TO RECEIVE.

    ``(a) In General.--Subject to subsection (b), for any election in 
which an eligible House of Representatives candidate has at least one 
opponent who has qualified for the ballot and who has raised in 
contributions or expended an amount equal to 10 percent of the election 
cycle limit in section 502(a), such eligible candidate shall be 
entitled to receive--
            ``(1) the broadcast media rates provided under section 
        315(b) of the Communications Act of 1934; and
            ``(2) the reduced postage rates provided in section 3626(e) 
        of title 39, United States Code.
    ``(b) Personal Sources Rule.--(1) The aggregate amount of 
expenditures that may be made during an election cycle by an eligible 
House of Representatives candidate or such candidate's authorized 
committees from the sources described in paragraph (2) shall not exceed 
5 percent of the election cycle expenditure limit under subsection (b).
    ``(2) A source is described in this subsection if it is--
                    ``(A) personal funds of the candidate and members 
                of the candidate's immediate family; or
                    ``(B) personal loans incurred by the candidate and 
                members of the candidate's immediate family.

``SEC. 504. CERTIFICATION BY COMMISSION.

    ``(a) In General.--The Commission shall determine whether a 
candidate has met the requirements of this title and, based upon that 
determination, shall issue a certification stating whether or not such 
candidate is eligible to receive benefits under this title.
    ``(b) Certification.--Upon receipt of the declaration required 
under section 501(b) and the statement required under section 501(c), 
and such other information as the Commission may by regulation require, 
the Commission shall determine if such candidate meets the eligibility 
requirements in section 501 and, if so, shall certify the candidate's 
eligibility for the benefits referred to in section 503. The Commission 
shall revoke such certification if, based on relevant information 
submitted in such form and manner as the Commission may require or 
based on relevant information that otherwise comes to its attention, it 
determines a candidate fails to continue to meet any of the 
requirements of this title, including the limitations on expenditures 
set forth in section 502(a) and (b).
    ``(c) Determination by Commission.--All determinations (including 
certifications under this section) made by the Commission under this 
title shall be final, except to the extent that they are subject to 
examination and audit by the Commission under section 505 and subject 
to judicial review.

``SEC. 505. REPAYMENTS; ADDITIONAL CIVIL PENALTIES.

    ``(a) Misuse of Benefits.--If the Commission determines that any 
benefit made available to an eligible House of Representatives 
candidate under this title was not used as provided for in this title, 
or that an eligible candidate has violated any of the spending limits 
contained in this Act or otherwise revokes the certification of a 
candidate as an eligible House of Representatives candidate, the 
Commission shall so notify the candidate and the candidate shall pay to 
the provider of such benefits received an amount equal to the value of 
the benefits received under this title.
    ``(b) Civil Penalties.--
            ``(1) Low amount of excess expenditures.--Any eligible 
        House of Representatives candidate who makes expenditures that 
        exceed a limitation under this title by 2.5 percent or less 
        shall pay to the Commission an amount equal to the amount of 
        the excess expenditures.
            ``(2) Medium amount of excess expenditures.--Any eligible 
        House of Representatives candidate who makes expenditures that 
        exceed a limitation under this title by more than 2.5 percent 
        and less than 5 percent shall pay to the Commission an amount 
        equal to 3 times the amount of the excess expenditures.
            ``(3) Large amount of excess expenditures.--Any eligible 
        House of Representatives candidate who makes expenditures that 
        exceed a limitation under this title by 5 percent or more shall 
        pay to the Commission an amount equal to 3 times the amount of 
        the excess expenditures plus a civil penalty to be imposed 
        pursuant to the procedures of section 309 of this Act (2 U.S.C. 
        437(g)).''.

SEC. 102. BROADCAST RATES AND PREEMPTION.

    (a) Broadcast Rates.--Section 315(b) of the Communications Act of 
1934 (47 U.S.C. 315(b)) is amended--
            (1) by striking ``(b) The charges'' and inserting ``(b)(1) 
        The charges'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) in paragraph (1)(A), as redesignated--
                    (A) by striking ``forty-five'' and inserting 
                ``30''; and
                    (B) by striking ``lowest unit charge of the station 
                for the same class and amount of time for the same 
                period'' and inserting ``lowest charge of the station 
                for the same amount of time for the same period on the 
                same date''; and
            (4) by adding at the end the following new paragraph:
    ``(2) In the case of an eligible House of Representatives candidate 
(as described in section 501(a) of the Federal Election Campaign Act of 
1971), the charges for the use of a television or radio broadcasting 
station during the 30-day period and 60-day period referred to in 
paragraph (1)(A) shall not exceed 50 percent of the lowest charge 
described in paragraph (1)(A).''.
    (b) Preemption; Access.--Section 315 of such Act (47 U.S.C. 315) is 
amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting immediately after subsection (b) the 
        following subsection:
    ``(c)(1) Except as provided in paragraph (2), a licensee shall not 
preempt the use, during any period specified in subsection (b)(1)(A), 
of a broadcasting station by an eligible House of Representatives 
candidate who has purchased and paid for such use pursuant to 
subsection (b)(2).
    ``(2) If a program to be broadcast by a broadcasting station is 
preempted because of circumstances beyond the control of the 
broadcasting station, any candidate advertising spot scheduled to be 
broadcast during that program may also be preempted.''.
    (c) Revocation of License for Failure To Permit Access.--Section 
312(a)(7) of the Communications Act of 1934 (47 U.S.C. 312(a)(7)) is 
amended--
            (1) by striking ``or repeated'';
            (2) by inserting ``or cable system'' after ``broadcasting 
        station''; and
            (3) by striking ``his candidacy'' and inserting ``the 
        candidacy of such person, under the same terms, conditions, and 
        business practices as apply to its most favored advertiser''.
    (d) Jurisdiction Over Takings Challenge to Broadcast Rates.--The 
United States Court of Federal Claims shall have exclusive jurisdiction 
over any action challenging the constitutionality of the broadcast 
media rates required to be offered to political candidates under 
section 503(1) of the Federal Election Campaign Act of 1971 and section 
315(b) of the Communications Act of 1934. Money damages shall be the 
sole and exclusive remedy in such cases, and only individuals or 
entities suffering actual financial injury shall have standing to 
maintain such an action.
    (e) Condition of Renewal or New License.--Section 307 of the 
Communications Act of 1934 is amended by adding the following: ``The 
continuation of an existing license, the renewal of an expiring 
license, and the issuance of a new license shall be expressly 
conditioned on the agreement by the licensee to abide by the provisions 
of section 503(1) of the Federal Election Campaign Act of 1971 and 
section 315(b) of this Act. The Commission shall take such action as it 
deems appropriate to assure compliance with this requirement.''.
    (f) Regulations.--The Commission, in consultation with the Federal 
Communications Commission, shall issue regulations to modify the 
requirements of this section in any cases where a licensee establishes 
that such requirements would impose significant economic hardship.
    (g) Effective Date.--The amendments made by this section shall 
apply to the general elections occurring after December 31, 1996 (and 
the election cycles relating thereto).

SEC. 103. REDUCED POSTAGE RATES.

    (a) In General.--Section 3626(e) of title 39, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``and the National'' and 
                        inserting ``the National''; and
                            (ii) by inserting before the semicolon the 
                        following: ``, and, subject to paragraph (3), 
                        the principal campaign committee of an eligible 
                        House of Representatives candidate;'';
                    (B) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (C) in subparagraph (C), by striking the period and 
                inserting a semicolon; and
                    (D) by adding after subparagraph (C) the following 
                new subparagraphs:
            ``(D) the term `principal campaign committee' has the 
        meaning given such term in section 301 of the Federal Election 
        Campaign Act of 1971; and
            ``(E) the term `eligible House of Representatives 
        candidate' has the meaning given such term in section 501(a) of 
        the Federal Election Campaign Act of 1971.''; and
            (2) by adding after paragraph (2) the following new 
        paragraph:
    ``(3) The rate made available under this subsection with respect to 
an eligible House of Representatives candidate shall apply only to that 
number of pieces of mail equal to 3 times the number of individuals in 
the voting age population (as certified under section 315(e) of such 
Act) of the congressional district.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to the general elections occurring after December 31, 1996 (and 
the election cycles relating thereto).

SEC. 104. CONTRIBUTION LIMITATIONS FOR HOUSE OF REPRESENTATIVES 
              CANDIDATES.

    Section 315(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a) is amended by adding at the end the following new 
paragraphs:
    ``(9)(A) Notwithstanding paragraph (1)(A), the limitation described 
in that paragraph shall be $500 with respect to any election for the 
office of Representative in, or Delegate or Resident Commissioner to, 
the Congress.
    ``(B) Notwithstanding paragraph (2)(A), the limitation described in 
that paragraph shall be $500 with respect to any election for the 
office of Representative in, or Delegate or Resident Commissioner to, 
the Congress.
    ``(10)(A) Notwithstanding paragraphs (1), (3), and (9), no citizens 
committee shall make contributions to any candidate and the authorized 
political committees of such candidate with respect to any election for 
the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress which, in the aggregate, exceed $1,000.
    ``(B) As used in this Act, the term `citizens committee' means a 
political committee which, in each calendar year, receives 
contributions of not more than $100 from each of at least 25 
individuals.''.

SEC. 105. REPORTING REQUIREMENTS.

    (a) Any candidate for the House of Representatives who during the 
election cycle expends more than the limitation under section 503(b) of 
the Federal Election Campaign Act of 1971 during the election cycle 
from his personal funds, the funds of his immediate family, and 
personal loans incurred by the candidate and the candidate's immediate 
family shall report such expenditures to the Commission within 48 hours 
after such expenditures have been made or loans incurred. An additional 
report shall be filed within 48 hours of the date such candidate makes 
expenditures of such personal funds aggregating 25 percent of the 
election cycle limit under section 502(a) of the Federal Election 
Campaign Act of 1971.
    (b) Any candidate for the House of Representatives who has failed 
to be certified as an eligible candidate by the Commission and who 
during the election cycle has received contributions or expended 
personal funds which, in the aggregate, exceed 50 percent of the 
election cycle limits contained in section 502(a) of the Federal 
Election Campaign Act of 1971, shall file a report with the Commission 
within 48 hours after such contributions have been received or such 
expenditures have been made. Additional reports shall be filed within 
48 hours after such candidate has received contributions or expended 
personal funds which, in the aggregate, exceed 70 percent and 120 
percent of the election cycle limit. Additional reports shall be filed 
within 48 hours after the candidate spends an amount equal to 105 
percent and 155 percent of the election cycle limit contained in 
section 502(a) of the Federal Election Campaign Act of 1971.
    (c) The Commission within 48 hours after any report has been filed 
under subsections (a) and (b) shall notify each eligible House of 
Representatives candidate in the election about each such report.
    (d) If any act which requires the filing of any report under 
subsection (a) or (b) occurs after the 20th day, but more than 24 hours 
before an election, such report shall be filed by the candidate within 
24 hours of the occurrence of such act. For any such report filed 
pursuant to this subsection, the Commission shall notify the 
appropriate eligible House of Representatives candidate within 24 hours 
after the filing of such report.

           TITLE II--REDUCTION OF SPECIAL INTEREST INFLUENCE

     Subtitle A--Provisions Relating to Political Action Committees

SEC. 201. PROHIBITION OF LEADERSHIP COMMITTEES; EXCESS CONTRIBUTIONS.

    (a) Prohibition of Leadership Committees.--Section 302(e) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)) is amended--
            (1) by amending paragraph (3) to read as follows:
    ``(3) No political committee that supports or has supported more 
than one candidate may be designated as an authorized committee, except 
that--
            ``(A) a candidate for the office of President nominated by 
        a political party may designate the national committee of such 
        political party as the candidate's principal campaign 
        committee, but only if that national committee maintains 
        separate books of account with respect to its functions as a 
        principal campaign committee; and
            ``(B) a candidate may designate a political committee 
        established solely for the purpose of joint fundraising by such 
        candidates as an authorized committee.''; and
            (2) by adding at the end the following new paragraph:
    ``(6)(A) A candidate for Federal office or any individual holding 
Federal office may not directly or indirectly establish, finance, 
maintain, or control any Federal or non-Federal political committee 
other than a principal campaign committee of the candidate, authorized 
committee, party committee, or other political committee designated in 
accordance with paragraph (3). A candidate for more than one Federal 
office may designate a separate principal campaign committee for each 
Federal office. This paragraph shall not preclude a Federal 
officeholder who is a candidate for State or local office from 
establishing, financing, maintaining, or controlling a political 
committee for election of the individual to such State or local office.
    ``(B) For one year after the effective date of this paragraph, any 
political committee established before such date but which is 
prohibited under subparagraph (A) may continue to make contributions. 
At the end of that period such political committee shall disburse all 
funds by one or more of the following means: making contributions to an 
entity qualified under section 501(c)(3) of the Internal Revenue Code 
of 1986 that is not established, maintained, financed, or controlled 
directly or indirectly by any candidate for Federal office or any 
individual holding Federal office; making a contribution to the 
treasury of the United States; contributing to the national, State, or 
local committees of a political party; or making contributions not to 
exceed $1,000 to candidates for elective office.''.
    (b) Excess Contributions.--A candidate (or authorized committees of 
such candidate) who receives a contribution from a multicandidate 
political committee in excess of the amount allowed under subsection 
(d)(1) shall return the amount of such excess contribution to the 
contributor.

SEC. 202. AGGREGATE LIMIT ON CERTAIN CONTRIBUTIONS.

    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:
    ``Sec. 323. For purposes of the Federal Election Campaign Act of 
1971, during any period beginning after the effective date of this Act, 
it shall be unlawful for a candidate for election for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress (or the authorized committees of such candidate) to accept--
            ``(1) any contribution from an individual in excess of $200 
        to the extent that the acceptance of such contribution will 
        cause the aggregate amount of contributions from individuals in 
        excess of $200 received by the candidate and the candidate's 
        authorized committees to exceed $200,000;
            ``(2) contributions from multicandidate political 
        committees in excess of $200,000 for an election cycle; or
            ``(3) contributions from citizens committees in excess of 
        $200,000 for an election cycle.''

SEC. 203. CONTRIBUTIONS BY LOBBYISTS.

    Section 315(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)), as amended by section 104, is further amended by 
adding at the end the following new paragraph:
    ``(11) Notwithstanding section 315(a)(1)(A), any person required to 
register under section 4 of the Lobbying Disclosure Act of 1995 (2 
U.S.C. 1603) or the Foreign Agents Registration Act of 1938 (22 U.S.C. 
611 et seq.)--
            ``(A) shall not make contributions to, or solicit 
        contributions for, any candidate and his authorized political 
        committees with respect to any election for Federal office, if 
        such person has had a lobbying contact with the candidate 
        during the preceding year; and
            ``(B) shall not have any lobbying contact with any 
        individual who holds a Federal office, if, during the preceding 
        year, such person has made, or solicited contributions for, 
        such individual as a candidate (and his authorized political 
        committees) with respect to any election for Federal office.''.

SEC. 204. LIMITATION ON FINANCIAL SUPPORT PROVIDED TO POLITICAL 
              COMMITTEES BY CONNECTED ORGANIZATIONS.

    Section 316(b) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441b(b)) is amended by adding at the end the following new 
paragraph:
    ``(8) Notwithstanding any other provision of this section, a 
connected organization may provide financial support to a political 
committee only to the extent that such support does not exceed an 
amount equal to 20 percent of the fundraising expenses of the political 
committee.''.

   Subtitle B--Provisions Relating to Soft Money of Political Parties

SEC. 211. SOFT MONEY OF POLITICAL PARTIES.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.), as amended by section 202, is further amended by adding 
at the end the following new section:

                   ``soft money of political parties

    ``Sec. 324. (a) A national committee of a political party, 
including the national congressional campaign committees of a political 
party, and any officers or agents of such party committees, shall not 
solicit or receive any contributions, donations, or transfers of funds, 
or spend any funds, not subject to the limitations, prohibitions, and 
reporting requirements of this Act. This subsection shall apply to any 
entity that is established, financed, maintained, or controlled by a 
national committee of a political party, including the national 
congressional campaign committees of a political party, and any 
officers or agents of such party committees.
    ``(b)(1) Any amount expended or disbursed by a State, district, or 
local committee of a political party, during a calendar year in which a 
Federal election is held, for any activity which might affect the 
outcome of a Federal election, including but not limited to any voter 
registration and get-out-the-vote activity, any generic campaign 
activity, and any communication that identifies a Federal candidate 
(regardless of whether a State or local candidate is also mentioned or 
identified) shall be made from funds subject to the limitations, 
prohibitions and reporting requirements of this Act.
    ``(2) Paragraph (1) shall not apply to expenditures or 
disbursements made by a State, district or local committee of a 
political party for--
            ``(A) a contribution to a candidate other than for Federal 
        office, provided that such contribution is not designated or 
        otherwise earmarked to pay for activities described in 
        paragraph (1);
            ``(B) the costs of a State or district/local political 
        convention;
            ``(C) the non-Federal share of a State, district or local 
        party committee's administrative and overhead expenses (but not 
        including the compensation in any month of any individual who 
        spends more than 20 percent of his or her time on activity 
        during such month which may affect the outcome of a Federal 
        election). For purposes of this provision, the non-Federal 
        share of a party committee's administrative and overhead 
        expenses shall be determined by applying the ratio of the non-
        Federal disbursements to the total Federal expenditures and 
        non-Federal disbursements made by the committee during the 
        previous presidential election year to the committee's 
        administrative and overhead expenses in the election year in 
        question;
            ``(D) the costs of grassroots campaign materials, including 
        buttons, bumper stickers, and yard signs, which materials 
        solely name or depict a State or local candidate; or
            ``(E) the cost of any campaign activity conducted solely on 
        behalf of a clearly identified State or local candidate, 
        provided that such activity is not a get out the vote activity 
        or any other activity covered by paragraph (1).
    ``(3) Any amount spent by a national, State, district or local 
committee or entity of a political party to raise funds that are used, 
in whole or in part, to pay the costs of any activity covered by 
paragraph (1) shall be made from funds subject to the limitations, 
prohibitions, and reporting requirements of this Act. This paragraph 
shall apply to any entity that is established, financed, maintained, or 
controlled by a State, district or local committee of a political party 
or any agent or officer of such party committee in the same manner as 
it applies to that committee.
    ``(c) No national, State, district or local committee of a 
political party shall solicit any funds for or make any donations to 
any organization that is exempt from Federal taxation under section 
501(c) of the Internal Revenue Code of 1986.
    ``(d)(1) No candidate for Federal office, individual holding 
Federal office, or any agent of such candidate or officeholder, may 
solicit or receive (A) any funds in connection with any Federal 
election unless such funds are subject to the limitations, prohibitions 
and reporting requirements of this Act; (B) any funds that are to be 
expended in connection with any election for other than a Federal 
election unless such funds are not in excess of the amounts permitted 
with respect to contributions to Federal candidates and political 
committees under section 315(a)(1) and (2), and are not from sources 
prohibited from making contributions by this Act with respect to 
election for Federal office. This paragraph shall not apply to the 
solicitation or receipt of funds by an individual who is a candidate 
for a non-Federal office if such activity is permitted under State law 
for such individual's non-Federal campaign committee.
    ``(2)(A) No candidate for Federal office or individual holding 
Federal office may directly or indirectly establish, maintain, finance 
or control any organization described in section 501(c) of the Internal 
Revenue Code of 1986 if such organization raises funds from the public.
    ``(B) No candidate for Federal office or individual holding Federal 
office may raise funds for any organization described in section 501(c) 
of the Internal Revenue Code of 1986 if the activities of the 
organization include voter registration or get-out-the-vote campaigns.
    ``(C) For purposes of this paragraph, an individual shall be 
treated as holding Federal office if such individual--
            ``(i) holds a Federal office; or
            ``(ii) holds a position described in level I of the 
        Executive Schedule under 5312 of title 5, United States 
        Code.''.

SEC. 212. REPORTING REQUIREMENTS.

    (a) Reporting Requirements.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) is amended by adding at the end the 
following new subsection:
    ``(d) Political Committees.--(1) A political committee other than a 
national committee of a political party, any congressional campaign 
committee of a political party, and any subordinate committee of 
either, to which section 325(b)(1) applies shall report all receipts 
and disbursements.
    ``(2) Any political committee other than the committees of a 
political party shall report any receipts or disbursements that are 
used in connection with a Federal election.
    ``(3) If a political committee has receipts or disbursements to 
which this subsection applies from any person aggregating in excess of 
$200 for any calendar year, the political committee shall separately 
itemize its reporting for such person in the same manner as required in 
subsection (b)(3)(A), (5), or (6).
    ``(4) Reports required to be filed under this subsection shall be 
filed for the same time periods required for political committees under 
subsection (a).''.
    (b) Reports by State Committees.--Section 304 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434), as amended by subsection 
(a), is further amended by adding at the end the following new 
subsection:
    ``(e) Filing of State Reports.--In lieu of any report required to 
be filed by this Act, the Commission may allow a State committee of a 
political party to file with the Commission a report required to be 
filed under State law if the Commission determines such reports contain 
substantially the same information.''.
    (c) Other Reporting Requirements.--
            (1) Authorized committees.--Section 304(b)(4) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
        amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (H);
                    (B) by inserting ``and'' at the end of subparagraph 
                (I); and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) in the case of an authorized committee, 
                disbursements for the primary election, the general 
                election, and any other election in which the candidate 
                participates;''.
            (2) Names and addresses.--Section 304(b)(5)(A) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
        is amended--
                    (A) by striking ``within the calendar year''; and
                    (B) by inserting ``, and the election to which the 
                operating expenditure relates'' after ``operating 
                expenditure''.

SEC. 213. BUILDING FUND EXCEPTION TO THE DEFINITION OF THE TERM 
              ``CONTRIBUTION''.

    Section 301(8)(B) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(8)(B)) is amended--
            (1) by striking out clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.

     Subtitle C--Soft Money of Persons Other Than Political Parties

SEC. 221. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 212(a) and (b), is further amended by 
adding at the end the following new subsection:
    ``(f) Election Activity of Persons Other Than Political Parties.--
(1)(A)(i) If any person to which section 325 does not apply makes (or 
obligates to make) disbursements for activities described in section 
325(b)(1) in excess of $2,000, such person shall file a statement--
            ``(I) within 48 hours after the disbursements (or 
        obligations) are made; or
            ``(II) in the case of disbursements (or obligations) that 
        are required to be made within 20 days of the election, within 
        24 hours after such disbursement (or obligations) are made.
    ``(ii) An additional statement shall be filed each time additional 
disbursements aggregating $2,000 are made (or obligated to be made) by 
a person described in clause (i).
    ``(B) This paragraph shall not apply to--
            ``(i) a candidate or a candidate's authorized committees; 
        or
            ``(ii) an independent expenditure (as defined in section 
        301(17)).
    ``(2) Any statement under this section shall be filed with the 
Commission and shall contain such information as the Commission shall 
prescribe, including whether the disbursement is in support of, or in 
opposition to, 1 or more candidates or any political party.''.

                       Subtitle D--Contributions

SEC. 231. RESTRICTIONS ON BUNDLING.

    Section 315(a)(8) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(8)) is amended to read as follows:
    ``(8)(A) No person, either directly or indirectly, may act as a 
conduit or intermediary for any contribution to a candidate.
    ``(B)(i) Nothing in this section shall prohibit--
            ``(I) joint fundraising conducted in accordance with rules 
        prescribed by the Commission by 2 or more candidates; or
            ``(II) fundraising for the benefit of a candidate that is 
        conducted by another candidate.
    ``(ii) No other person may conduct or otherwise participate in 
joint fundraising activities with or on behalf of any candidate.
    ``(C) The term `conduit or intermediary' means a person who 
transmits a contribution to a candidate or candidate's committee or 
representative from another person, except that--
            ``(i) a House of Representatives candidate or 
        representative of a House of Representatives candidate is not a 
        conduit or intermediary for the purpose of transmitting 
        contributions to the candidate's principal campaign committee 
        or authorized committee;
            ``(ii) a professional fundraiser is not a conduit or 
        intermediary, if the fundraiser is compensated for fundraising 
        services at the usual and customary rate;
            ``(iii) a volunteer hosting a fundraising event at the 
        volunteer's home, in accordance with section 301(8)(b), is not 
        a conduit or intermediary for the purposes of that event; and
            ``(iv) an individual is not a conduit or intermediary for 
        the purpose of transmitting a contribution from the 
        individual's spouse.
For purposes of this section a conduit or intermediary transmits a 
contribution when receiving or otherwise taking possession of the 
contribution and forwarding it directly to the candidate or the 
candidate's committee or representative.
    ``(D) For purposes of this section, the term `representative'--
            ``(i) shall mean a person who is expressly authorized by 
        the candidate to engage in fundraising, and who, in the case of 
        an individual, is not acting as an officer, employee, or agent 
        of any other person;
            ``(ii) shall not include--
                    ``(I) a political committee with a connected 
                organization;
                    ``(II) a political party;
                    ``(III) a partnership or sole proprietorship;
                    ``(IV) an organization prohibited from making 
                contributions under section 316; or
                    ``(V) a person required to register under section 4 
                of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603) 
                or the Foreign Agents Registration Act of 1938 (22 
                U.S.C. 611 et seq.).
    ``(E) For purposes of this section, the term `acting as an officer, 
employee, or agent of any other person' includes the following 
activities by a salaried officer, employee, or paid agent of a person 
described in subparagraph (D)(ii)(IV):
            ``(i) Soliciting contributions to a particular candidate in 
        the name of, or by using the name of, such a person.
            ``(ii) Soliciting contributions to a particular candidate 
        using other than the incidental resources of such a person.
            ``(iii) Soliciting contributions to a particular candidate 
        under the direction or control of other salaried officers, 
        employees, or paid agents of such a person.
For purposes of this subparagraph, the term `agent' shall include any 
person (other than individual members of an organization described in 
subparagraph (b)(4)(C) of section 316) acting on authority or under the 
direction of such organization.''.

SEC. 232. CONTRIBUTIONS BY DEPENDENTS NOT OF VOTING AGE.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following new subsection:
    ``(i) For purposes of this section, any contribution by an 
individual who--
            ``(1) is a dependent of another individual; and
            ``(2) has not, as of the time of such contribution, 
        attained the legal age for voting for elections to Federal 
        office in the State in which such individual resides,
shall be treated as having been made by such other individual. If such 
individual is the dependent of another individual and such other 
individual's spouse, the contribution shall be allocated among such 
individuals in the manner determined by them.''.

          Subtitle E--Additional Prohibitions on Contributions

SEC. 241. ALLOWABLE CONTRIBUTIONS FOR CANDIDATES.

    (a) In State Requirement.--Title III of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431, et seq.), as amended by sections 
202 and 211 is further amended by adding at the end the following new 
section:
    ``Sec. 325. With regard to any candidate for election for the 
office of Representative in, or Delegate or Resident Commissioner to, 
the Congress, by the end of the election cycle not less than 75 percent 
of the total dollar amount of all contributions from individuals to a 
candidate or a candidate's authorized committees, not including any 
expenditures, contributions or loans made by the candidate, shall come 
from individuals legally residing in the candidate's State.''.
    (b) Rules Applicable When In State Requirement Not in Effect.--For 
purposes of the Federal Election Campaign Act of 1971, during any 
period beginning after the effective date on which the requirement of 
section 325 of the Act (as added by subsection (a)) is not in effect, a 
new clause (iv) shall be inserted in section 501(b)(1) as follows:
                            ``(iv) will comply with the requirement 
                        that, by the end of the election cycle, not 
                        less than 75 percent of the total dollar amount 
                        of all contributions from individuals to a 
                        candidate or a candidate's authorized 
                        committees, including any expenditures, 
                        contributions, or loans made by a candidate 
                        shall come from individuals legally residing in 
                        the candidate's State.''.

                  Subtitle F--Independent Expenditures

SEC. 251. PROVISIONS RELATING TO INDEPENDENT EXPENDITURES.

    (a) Independent Expenditure Definition Amendment.--Section 301 of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 431) is amended by 
striking out paragraphs (17) and (18) and inserting in lieu thereof the 
following:
    ``(17)(A) The term `independent expenditure' means an expenditure 
that--
            ``(i) contains express advocacy; and
            ``(ii) is made without the participation or cooperation of, 
        or without the consultation of, a candidate or a candidate's 
        representative.
    ``(B) The following shall not be considered an independent 
expenditure:
            ``(i) An expenditure made by--
                    ``(I) an authorized committee of a candidate for 
                Federal office, or
                    ``(II) a political committee of a political party.
            ``(ii) An expenditure if there is any arrangement, 
        coordination, or direction with respect to the expenditure 
        between the candidate or the candidate's agent and the person 
        making the expenditure.
            ``(iii) An expenditure if, in the same election cycle, the 
        person making the expenditure is or has been--
                    ``(I) authorized to raise or expend funds on behalf 
                of the candidate or the candidate's authorized 
                committees; or
                    ``(II) serving as a member, employee, or agent of 
                the candidate's authorized committees in an executive 
                or policymaking position.
            ``(iv) An expenditure if the person making the expenditure 
        has advised or counseled the candidate or the candidate's 
        agents at any time on the candidate's plans, projects, or needs 
        relating to the candidate's pursuit of nomination for election, 
        or election, to Federal office, in the same election cycle, 
        including any advice relating to the candidate's decision to 
        seek Federal office.
            ``(v) An expenditure if the person making the expenditure 
        retains the professional services of any individual or other 
        person also providing services in the same election cycle to 
        the candidate in connection with the candidate's pursuit of 
        nomination for election, or election, to Federal office, 
        including any services relating to the candidate's decision to 
        seek Federal office. For purposes of this clause, the term 
        `professional services' shall include any services (other than 
        legal and accounting services solely for purposes of ensuring 
        compliance with any Federal law) in support of any candidate's 
        or candidates' pursuit of nomination for election, or election, 
        to Federal office.
For purposes of this subparagraph, the person making the expenditure 
shall include any officer, director, employee, or agent of such person.
    ``(18)(A) The term `express advocacy' means, when a communication 
is taken as a whole and with limited reference to external events, an 
expression of support for or opposition to a specific candidate, to a 
specific group of candidates, or to candidates of a particular 
political party.
    ``(B) The term `expression of support for or opposition to' 
includes a suggestion to take action with respect to an election, such 
as to vote for or against, make contributions to, or participate in 
campaign activity, or to refrain from taking action.''.
    (b) Contribution Definition Amendment.--Section 301(8)(A) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(A)) is amended--
            (1) in clause (i), by striking out ``or'' after the 
        semicolon at the end;
            (2) in clause (ii), by striking out the period at the end 
        and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new clause:
            ``(iii) any payment or other transaction referred to in 
        paragraph (17)(A)(i) that is not an independent expenditure 
        under paragraph (17).''.

SEC. 252. MANDATORY LIMITATION ON INDEPENDENT EXPENDITURES IN HOUSE OF 
              REPRESENTATIVES ELECTIONS.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a), as amended by section 232 is further amended 
by adding at the end the following new subsection:
    ``(j) No person may make independent expenditures totaling more 
than $30,000 expressly advocating the election or defeat of a clearly 
identified candidate in an election for the office of Representative 
in, or Delegate or Resident Commissioner to, the Congress.''.
    (b) Rules Applicable When Mandatory Independent Expenditure 
Limitation Not in Effect.--For purposes of the Federal Election 
Campaign Act of 1971, during any period beginning after the effective 
date of this Act in which the requirement of section 315(j) of the 
Federal Election Campaign Act of 1971, as added by subsection (a), is 
not in effect, if independent expenditures totaling in the aggregate 
$30,000 have been made in the same election in favor of another 
candidate or against an eligible House of Representatives candidate, 
the Federal Election Commission shall, within 2 business days, notify 
the eligible candidate that the candidate is eligible for payments from 
the Independent Expenditure Response Fund equal to the total amount of 
the independent expenditure, as determined by the Commission.

SEC. 253. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.

    Section 304(c) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(c)) is amended--
            (1) in paragraph (2), by striking the undesignated matter 
        after subparagraph (C);
            (2) by redesignating paragraph (3) as paragraph (7); and
            (3) by inserting after paragraph (2), as amended by 
        paragraph (1), the following new paragraphs:
            ``(3)(A) Any person (including a political committee) 
        making independent expenditures as defined in section 301(17) 
        and (18) with respect to a candidate in an election aggregating 
        $1,000 or more made after the 20th day, but more than 24 hours, 
        before the election shall file a report within 24 hours after 
        such independent expenditures are made. An additional report 
        shall be filed each time independent expenditures aggregating 
        $1,000 are made with respect to the same candidate after the 
        latest report filed under this subparagraph.
            ``(B) Any person (including a political committee) making 
        independent expenditures with respect to a candidate in an 
        election aggregating $10,000 or more made at any time up to and 
        including the 20th day before the election shall file a report 
        within 48 hours after such independent expenditures are made. 
        An additional report shall be filed each time independent 
        expenditures aggregating $10,000 are made with respect to the 
        same candidate after the latest report filed under this 
        paragraph.
            ``(C) A report under subparagraph (A) or (B) shall be filed 
        with the Commission and shall identify each candidate whom the 
        expenditure is actually intended to support or to oppose. Not 
        later than 2 business days after the Commission receives a 
        report, the Commission shall transmit a copy of the report to 
        each candidate seeking nomination or election to that office.
            ``(D) For purposes of this section, an independent 
        expenditure shall be considered to have been made upon the 
        making of any payment or the taking of any action to incur an 
        obligation for payment.
            ``(4) The Commission may, upon a request of a candidate or 
        on its own initiative, make its own determination that a 
        person, including a political committee, has made, or has 
        incurred obligations to make, independent expenditures with 
        respect to any candidate in any election which in the aggregate 
        exceed the applicable amounts under paragraph (3). The 
        Commission shall notify each candidate in such election of such 
        determination made within 2 business days after making it. Any 
        determination made at the request of a candidate shall be made 
        within 48 hours of the request.
            ``(5)(A) A person who reserves broadcast time the payment 
        for which would constitute an independent expenditure within 
        the meaning of section 301(17) of this Act (2 U.S.C. 431(17), 
        shall at the time of the reservation--
                    ``(i) inform the broadcast licensee that payment 
                for the broadcast time will constitute an independent 
                expenditure;
                    ``(ii) inform the broadcast licensee of the names 
                of all candidates for the office to which the proposed 
                broadcast relates and state whether the message to be 
                broadcast is intended to be made in support of or in 
                opposition to each such candidate; and
                    ``(iii) provide the broadcast licensee a copy of 
                the report described in paragraph (3).
            ``(B) For purposes of this paragraph, the term `broadcast' 
        includes any cablecast.
            ``(C) A licensee who is informed as described in 
        subparagraph (A) shall--
                    ``(i) notify each such candidate described in 
                subparagraph (A)(ii) of the proposed making of the 
                independent expenditure; and
                    ``(ii) allow any such candidate (other than a 
                candidate for whose benefit the independent expenditure 
                is made) to purchase the same amount of broadcast time 
                immediately after the broadcast time paid for by the 
                independent expenditure, at the cost specified in 
                section 315(b) of title 47, as amended by section 102 
                of this Act.''.

SEC. 254. DESIGNATION OF INCOME TAX PAYMENTS TO INDEPENDENT EXPENDITURE 
              RESPONSE FUND.

    (a) In General.--Subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 (relating to information and returns) is amended by adding 
at the end the following new part:

     ``PART IX--DESIGNATION OF INCOME TAX PAYMENTS TO INDEPENDENT 
                       EXPENDITURE RESPONSE FUND

                              ``Sec. 6098. Designation to Independent 
                                        Expenditure Response Fund.

``SEC. 6098. DESIGNATION TO INDEPENDENT EXPENDITURE RESPONSE FUND.

    ``(a) In General.--Every individual (other than a nonresident 
alien) whose adjusted income tax liability for the taxable year is $5 
or more may designate that $5 shall be paid over to the Independent 
Expenditure Response Fund in accordance with the provisions of section 
9512. In the case of a joint return of husband and wife having an 
adjusted income tax liability of $10 or more, each spouse may designate 
that $10 shall be paid to the fund.
    ``(b) Adjusted Income Tax Liability.--For purposes of subsection 
(a), the term `adjusted income tax liability' means, for any individual 
for any taxable year, the excess (if any) of--
            ``(1) the income tax liability (as defined in section 
        6096(b)) of the individual for the taxable year, over
            ``(2) any amount designated by the individual (and, in the 
        case of a joint return, any amount designated by the 
        individual's spouse) under section 6096(a) for such taxable 
        year.
    ``(c) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year--
            ``(1) at the time of filing the return of the tax imposed 
        by chapter 1 for such taxable year, or
            ``(2) at any other time (after the time of filing the 
        return of the tax imposed by chapter 1 for such taxable year) 
        specified in regulations prescribed by the Secretary.
Such designation shall be made in such manner as the Secretary 
prescribes by regulations except that, if such designation is made at 
the time of filing the return of the tax imposed by chapter 1 for such 
taxable year, such designation shall be made either on the first page 
of the return or on the page bearing the taxpayer's signature.
    ``(d) Transfers to Fund.--There are hereby appropriated to the 
Independent Expenditure Response Fund amounts equivalent to the amounts 
designated under subsection (c).''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 61 of such Code is amended by adding at the end the following 
new item:

     ``Part IX. Designation of income tax payments to Independent 
                      Expenditure Response Fund.''

    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31 of the year in which 
this Act is enacted.

SEC. 255. INDEPENDENT EXPENDITURE RESPONSE FUND.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.), as amended by sections 202, 211, and 241, 
is amended by adding at the end the following new section:
    ``Sec. 326. (a) There is established in the Treasury of the United 
States a trust fund to be known as the `Independent Expenditure 
Response Fund', consisting of--
            ``(1) such amounts as may be appropriated or credited to 
        the fund under section 6098 of the Internal Revenue Code of 
        1986;
            ``(2) payments under section 502(e); and
            ``(3) registration fees under section 302(j).
    ``(b) Amounts in the Independent Expenditure Response Fund shall be 
available, as provided in appropriation Acts, for the purposes 
specified in section 252(b) of the Federal Election Reform Act of 1996.
    ``(c) Payments from the Independent Expenditure Response Fund shall 
not be taken into consideration in the computation of expenditures for 
the purposes of the election cycle expenditure limit under section 
502(a).''.

SEC. 256. REGISTRATION FEE FOR MULTICANDIDATE POLITICAL COMMITTEES.

    Section 302 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
432) is amended by adding at the end the following new subsection:
    ``(j) The Commission shall impose on each political committee a 
registration fee of $500.''.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. AUDITS.

    (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 new paragraph:
            ``(2) Notwithstanding paragraph (1), the Commission may 
        conduct random audits and investigations to ensure voluntary 
        compliance with this Act. The subjects of such audits and 
        investigations shall be selected on the basis of criteria 
        established by vote of at least 4 members of the Commission to 
        ensure impartiality in the selection process. This paragraph 
        does not apply to an authorized committee of a candidate for 
        President or Vice President subject to audit under chapter 95 
        or 96 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 out ``6 months'' and inserting in 
lieu thereof ``12 months''.

SEC. 302. CHANGE IN CERTAIN REPORTING FROM A CALENDAR YEAR BASIS TO AN 
              ELECTION CYCLE BASIS.

    Paragraphs (2), (3), (4), (6), and (7) of section 304(b) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(2)-(7)) are 
amended by inserting ``(election cycle, in the case of an authorized 
committee of a candidate for Federal office)'' after ``calendar year'' 
each place it appears.

SEC. 303. EXPEDITED PROCEDURES.

    Section 309(a) of Federal Election Campaign Act of 1971 (2 U.S.C. 
437g(a)) is amended by adding at the end the following new paragraph:
            ``(14)(A) If the complaint in a proceeding was filed within 
        60 days immediately preceding a general election, the 
        Commission may take action described in this subparagraph.
            ``(B) If the Commission determines, on the basis of facts 
        alleged in the complaint and other facts available to it, that 
        there is clear and convincing evidence that a violation of this 
        Act has occurred, is occurring, or is about to occur and it 
        appears that the requirements for relief stated in paragraph 
        (13)(A) (ii), (iii), and (iv) are met, the Commission may--
                    ``(i) order expedited proceedings, shortening the 
                time periods for proceedings under paragraphs (1), (2), 
                (3), and (4) as necessary to allow the matter to be 
                resolved in sufficient time before the election to 
                avoid harm or prejudice to the interests of the 
                parties; or
                    ``(ii) if the Commission determines that there is 
                insufficient time to conduct proceedings before the 
                election, immediately seek relief under paragraph 
                (13)(A).
            ``(C) If the Commission determines, on the basis of facts 
        alleged in the complaint and other facts available to it, that 
        the complaint is clearly without merit, the Commission may--
                    ``(i) order expedited proceedings, shortening the 
                time periods for proceedings under paragraphs (1), (2), 
                (3), and (4) as necessary to allow the matter to be 
                resolved in sufficient time before the election to 
                avoid harm or prejudice to the interests of the 
                parties; or
                    ``(ii) if the Commission determines that there is 
                insufficient time to conduct proceedings before the 
                election, summarily dismiss the complaint.''.

SEC. 304. OFFICIAL MASS MAILING ALLOWANCE.

    Section 311(f) of the Legislative Branch Appropriations Act, 1991 
(2 U.S.C. 59e(f)) is amended to read as follows:
    ``(f)(1) There is established in the House of Representatives an 
Official Mass Mailing Allowance for Members of the House of 
Representatives.
    ``(2) The Official Mass Mailing Allowance of a Member of the House 
of Representatives--
            ``(A) shall be available only for postage for any mass 
        mailing sent by such Member as franked mail;
            ``(B) shall be the sole source of funding for any such 
        postage; and
            ``(C) shall be available, in a session of Congress (subject 
        to paragraph (5)(A)(ii)), in an amount not to exceed the total 
        amount allocated to the Official Mail Allowance of such Member 
        in such session.
    ``(3) No amount may be transferred to or from the Official Mass 
Mailing Allowance of a Member of the House of Representatives 
(including as described in the parenthetical matter in subsection 
(a)(2)(A)), except as provided in subsection (e)(3)(B).
    ``(4) For purposes of subsection (b), the Official Mass Mailing 
Allowance of (and any mass mailing sent by) a Member of the House of 
Representatives shall be treated separately from the Official Mail 
Allowance of (and any other official mail sent by) such Member.
    ``(5)(A) Otherwise applicable provisions of law relating to mass 
mailings sent by a Member of (or Member-elect to) the House of 
Representatives shall continue to govern such mass mailings--
            ``(i) except that--
                    ``(I) for purposes of carrying out those other 
                provisions of law, the term `mass mailing' shall have 
                the meaning given it under paragraph (8); and
                    ``(II) a mass mailing may not be sent if it would 
                be postmarked during any session that begins in an 
                even-numbered calendar year, subject to subparagraph 
                (B); and
            ``(ii) except as otherwise provided in this subsection.
    ``(B) Nothing in subclause (II) of subparagraph (A)(i) shall be 
considered to preclude the mailing of any mail matter--
            ``(i) sent after the Tuesday next after the 1st Monday in 
        November of such year, and any mass mailing described in 
        section 3210(a)(6)(B) of title 39, United States Code; or
            ``(ii) which relates to an emergency or disaster declared 
        by the President, if--
                    ``(I) the mailing is sent within 60 days after the 
                emergency or disaster is declared;
                    ``(II) the recipients of the mailing are located in 
                a congressional district any portion of which is within 
                (or adjacent to) an area included in the President's 
                declaration;
                    ``(III) the mailing complies with clauses (iii) and 
                (iv) of paragraph (8)(C);
                    ``(IV) the mailing complies with clauses (i) and 
                (ii)(II) of section 3210(a)(6)(A) of title 39, United 
                States Code; and
                    ``(V) the mailing relates solely to the emergency 
                or disaster.
    ``(6) A Member of the House of Representatives shall--
            ``(A) before making any mass mailing, submit a sample of 
        the mail matter involved to the House Commission on 
        Congressional Mailing Standards for an advisory opinion as to 
        whether such proposed mailing is in compliance with applicable 
        provisions of law, rule, or regulation;
            ``(B) before making any mailing of substantially identical 
        mail which totals 250 pieces or less (but more than 50) in the 
        same session, and which in every other respect meets the 
        definition of a mass mailing (determined disregarding the 
        exclusion under subclause (II) of paragraph (8)(A)(i)), submit 
        a sample of the mail matter involved to such Commission; and
            ``(C) before making any mailing of substantially identical 
        mail, in the nature of a town meeting notice, which totals more 
        than 50 pieces in the same session, and which in every other 
        respect (aside from such nature and number) meets the 
        definition of a mass mailing, submit a sample of the mail 
        matter involved to such Commission.
    ``(7)(A) The regulations prescribed in connection with subsection 
(a)(3) shall be amended to require, in addition to the information 
otherwise required to be included in the quarterly report referred to 
therein, a statement of--
            ``(i) costs charged against the Official Mass Mailing 
        Allowance of each Member; and
            ``(ii) the number of pieces of mail in any mass mailing 
        sent by a Member.
    ``(B)(i) The House Commission on Congressional Mailing Standards 
shall by regulation establish procedures under which there shall be 
made available to the public for review and copying any matter 
submitted to the Commission under paragraph (6). Any copying under the 
preceding sentence shall be at the expense of the person who requests 
the copying.
    ``(ii) Under the regulations, mail matter shall be made available 
within 2 weeks after the date on which it is requested in accordance 
with applicable procedures.
    ``(8) For the purpose of this subsection--
            ``(A) the term `mass mailing' means, with respect to a 
        session of Congress, any mailing of newsletters or other pieces 
        of mail with substantially identical content (whether such mail 
        is deposited singly or in bulk, or at the same time or 
        different times), totaling more than 250 pieces in that 
        session, except that such term does not include--
                    ``(i)(I) any mailing of matter in direct response 
                to a communication from a person to whom the matter is 
                mailed; or
                    ``(II) a single follow-up to any such direct 
                response, if it is made before the end of the Congress 
                in which the direct response was made, it occurs within 
                6 weeks after any significant congressional action (as 
                defined by the House Commission on Congressional 
                Mailing Standards) on the subject matter involved, and 
it complies with any requirements which would be applicable to it under 
clause (i) or (ii)(II) of section 3210(a)(6)(A) of title 39, United 
States Code, if it were a mass mailing;
                    ``(ii) any mailing from a Member of Congress to 
                other Members of Congress, or to Federal, State, or 
                local government officials;
                    ``(iii) any mailing of a news release to the 
                communications media; or
                    ``(iv) any mailing described in clause (iv) or (v) 
                of section 6(b)(1)(B) of the Legislative Branch 
                Appropriations Act, 1995 (39 U.S.C. 3210 note), subject 
                to the same restriction as specified in such clause 
                (iv) with respect to a Member of the Senate;
            ``(B) the term `franked mail' has the meaning given such 
        term by section 3201(4) of title 39, United States Code; and
            ``(C) the term `town meeting notice' means (including for 
        purposes of subparagraph (A)(iv)) any mailing which--
                    ``(i) relates solely to a notice of the time and 
                place at which a Member of the House of Representatives 
                or 1 or more members of the Member's staff will be 
                available to meet constituents regarding legislative 
                issues or problems with Federal programs;
                    ``(ii) appears on a mailing 5\1/2\" x 8" or 
                smaller;
                    ``(iii) includes not more than 3 references to the 
                Member (excluding any reference appearing as the frank, 
                consisting of the signature and name at the end of the 
                mailing, or otherwise specified in regulations of the 
                House Commission on Congressional Mailing Standards); 
                and
                    ``(iv) does not include any picture, sketch, or 
                other likeness of the Member.''.

SEC. 305. PROVISIONS RELATING TO MEMBERS' OFFICIAL MAIL ALLOWANCE.

    (a) Reduction in Maximum Allocation.--Section 311(e)(2)(B)(i) of 
the Legislative Branch Appropriations Act, 1991 (2 U.S.C. 
59e(e)(2)(B)(i)) is amended by striking ``3'' and inserting ``0.5''.
    (b) Limitation on Transfers.--Paragraph (3) of section 311(e) of 
such Act is amended to read as follows:
    ``(3)(A) Except as provided in subparagraph (B), no amount may be 
transferred to or from the Official Mail Allowance of a Member of the 
House of Representatives.
    ``(B) A Member of the House of Representatives may transfer amounts 
from the Official Mass Mailing Allowance of the Member to the Official 
Mail Allowance of the Member.''.

SEC. 306. INTENT OF CONGRESS.

    It is the intent of Congress that any funds realized by section 304 
of the Federal Election Reform Act of 1996 shall be designated to pay 
for the benefits provided in section 103.

SEC. 307. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.

    (a) Direct Appeal to Supreme Court.--An appeal may be taken 
directly to the Supreme Court of the United States from any 
interlocutory order or final judgment, decree, or order issued by any 
court ruling on the constitutionality of any provision of this Act or 
amendment made by this Act.
    (b) Acceptance and Expedition.--The Supreme Court shall, if it has 
not previously ruled on the question addressed in the ruling below, 
accept jurisdiction over, advance on the docket, and expedite the 
appeal to the greatest extent possible.

SEC. 308. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by, 
and the provisions of, this Act shall take effect on January 1, 1997.

SEC. 309. REGULATIONS.

    The Federal Election Commission shall prescribe any regulations 
required to carry out this Act not later than 9 months after the 
effective date of this Act.
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