```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3208 Introduced in House (IH)]

104th CONGRESS
  2d Session
                                H. R. 3208

   To amend the Federal Election Campaign Act of 1971 to strengthen 
certain provisions relating to independent expenditures, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 1996

   Mr. Bass introduced the following bill; which was referred to the 
                      Committee on House Oversight

_______________________________________________________________________

                                 A BILL

 
   To amend the Federal Election Campaign Act of 1971 to strengthen 
certain provisions relating to independent expenditures, 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 ``Congressional Campaign Finance 
Reform Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this bill is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Equalization of multicandidate political committee candidate 
                            contribution limitation with limitation 
                            applicable to other persons.
Sec. 4. House of Representatives election limitation on contributions 
                            from sources other than in-State sources.
Sec. 5. House of Representatives election limitation on use of personal 
                            loans by candidates.
Sec. 6. Voluntary spending limits.
Sec. 7. Provisions relating to independent expenditures.
Sec. 8. Reporting requirements for certain independent expenditures.
Sec. 9. Official mass mailing allowance.
Sec. 10. Provisions relating to Members' official mail allowance.
Sec. 11. Limitation on contributions and expenditures by labor 
                            organizations.
Sec. 12. Campaign advertising amendments.

SEC. 3. EQUALIZATION OF MULTICANDIDATE POLITICAL COMMITTEE CANDIDATE 
              CONTRIBUTION LIMITATION WITH LIMITATION APPLICABLE TO 
              OTHER PERSONS.

    Section 315(a)(2)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(2)(A)) is amended by striking out ``$5,000'' and 
inserting in lieu thereof ``$1,000 in the case of a nonparty 
multicandidate political committee and $5,000 in the case of a 
multicandidate political committee of a political party''.

SEC. 4. HOUSE OF REPRESENTATIVES ELECTION LIMITATION ON CONTRIBUTIONS 
              FROM SOURCES OTHER THAN IN-STATE SOURCES.

    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)(1) A candidate for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress may not, with 
respect to an election, accept contributions from sources other than 
in-State sources totaling the same as, or in excess of, the total of 
contributions accepted from in-State sources.
    ``(2) As used in this subsection, the term `in-State sources' means 
an individual, multicandidate political committee, or party political 
committee from the State in which the congressional district involved 
is located.''.

SEC. 5. HOUSE OF REPRESENTATIVES ELECTION LIMITATION ON USE OF PERSONAL 
              LOANS BY CANDIDATES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 4, is further amended by adding at the end 
the following new subsection:
    ``(j) A candidate for the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress may not make loans to his 
campaign with respect to an election in a total amount that exceeds the 
amount equal to 25 percent of all expenditures by the candidate in the 
election.''.

SEC. 6. VOLUNTARY SPENDING LIMITS.

    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 
sections:

                      ``voluntary spending limits

    ``Sec. 323. (a)(1) Notwithstanding any other provision of this Act, 
each State shall, to the extent permitted by State law, have authority 
to impose voluntary campaign spending limits with respect to elections 
for Federal office.
    ``(2) Each State may, to the extent permitted by State law, limit 
campaign spending by allowing any candidate to voluntarily agree to 
limit his campaign expenditures and those of his immediate family on 
his behalf by filing an affidavit with the Secretary of State or the 
State official with primary jurisdiction over elections.
    ``(3) Each State may, to the extent permitted by State law, require 
the affidavit to state that the candidate knows the voluntary 
expenditure limitations as set out by State law and that he is 
voluntarily agreeing to limit his expenditures and those made on his 
behalf by his committee or committees, his party, and his behalf by 
immediate family to the amount set by State law. The affidavit may 
further state that the candidate does not condone and shall not solicit 
any independent expenditures made on behalf of his candidacy. The 
affidavit shall be sworn and subscribed to by the candidate and 
notarized.
    ``(4) Each State may, to the extent permitted by State law, require 
that affidavits in compliance with this section be filed within 3 days 
after the date on which a candidate files his declaration of candidacy 
or his declaration of intent, or is declared a write-in winner of a 
primary election.
    ``(b) Each State may, to the extent permitted by State law, set 
total expenditures by a candidate who voluntarily agrees to limit 
campaign expenditures as follows:
            ``(1) For the office of Senator, $500,000 in a primary 
        election, and $500,000 in a general election.
            ``(2) For the office of Representative in, or Delegate or 
        Resident Commissioner to, the Congress, $250,000 in a primary 
        election, and $250,000 in a general election.
    ``(c) If the expenditure limits prescribed in subsection (b) are 
not considered appropriate, each State may, to the extent permitted by 
State law, increase or decrease total expenditures by a candidate who 
voluntarily agrees to limit campaign expenditures as it deems 
appropriate.
    ``(d)(1) Each State may, to the extent permitted by State law, 
establish a State advisory commission on campaign finance to monitor 
the application of campaign finance statutes.
    ``(2) After the State has set the voluntary expenditure limits, the 
Commission may study inflationary, market, and other trends which may 
necessitate changes in State campaign finance law. The Commission may 
submit a report to the Governor and to the State assembly in November 
of each odd-numbered year preceding a State general election.
    ``(3) Membership of the Commission shall be determined by State 
law, except the Governor shall appoint the chairman and the membership 
shall be equally divided among Republican and Democrat appointments and 
the membership shall be equally divided among Federal and State 
appointments.
    ``(e) Each State may, to the extent permitted by State law, waive 
or refund filing fees for any candidate who has filed an affidavit 
stating that the candidate agrees to limit campaign expenditures set by 
State law.
    ``(f) Each State may, to the extent permitted by State law, print 
on election ballots, next to or beneath the name of the candidate, 
whether or not the candidate has agreed to voluntarily limit campaign 
expenditures set by State law. The passage printed on the ballot may 
read: `This candidate has refused to voluntarily limit campaign 
spending pursuant to State law.'
    ``(g)(1) Each State may, to the extent permitted by State law, 
impose penalties on any candidate who voluntarily agrees to limit 
campaign expenditures as provided by State law and who exceeds the 
total political expenditure limitations as provided by State law in 
running for any Federal office in either a primary or general election, 
or both.
    ``(2) Each State may, to the extent permitted by State law, impose 
a fine schedule which is based on the percentage by which the candidate 
exceeds permitted campaign expenditures, so that the candidate shall 
pay a percentage of the excess campaign expenditures as follows:
            ``(A) Candidates for the office of Senator:
                    ``(i) Under $1,000--1 percent.
                    ``(ii) $1,000-$5,000--10 percent.
                    ``(iii) $5,000-$10,000--25 percent.
                    ``(iv) $10,000-$50,000--50 percent.
                    ``(v) Over $50,000--100 percent.
            ``(B) Candidates for the office of Representative in, or 
        Delegate or Resident Commissioner to, the Congress:
                    ``(i) Under $1,000--1 percent.
                    ``(ii) $1,000-$5,000--10 percent.
                    ``(iii) $5,000-$10,000--25 percent.
                    ``(iv) $10,000-$25,000--50 percent.
                    ``(v) Over $25,000--100 percent.
    ``(3) Each State may, to the extent permitted by State law, allow 
the Secretary of State or the State official with primary jurisdiction 
over elections to waive fines if the candidate's opponent did not agree 
to limit spending.
    ``(4) Each State may, to the extent permitted by State law, require 
the Commission to include in its annual report to the Governor and 
State assembly recommendations with respect to the fine schedule.
    ``(5) Each State may, to the extent permitted by State law, require 
any fine assessed under the provisions of this section to be deposited 
into the State general fund.
    ``(h) Each State may, to the extent permitted by State law, require 
the Secretary of State or the State official with primary jurisdiction 
over elections to give or send by mail a copy of State campaign 
statutes and regulations to each person whose name will be printed on a 
primary or general election ballot within 5 days of the close of the 
filing period.

                ``effect of more restrictive state laws

    ``Sec. 324. Notwithstanding any other provision of this Act, each 
State shall, to the extent permitted by State law, have the authority 
to impose stricter limits on campaign contributions as well as other 
requirements with respect to Federal elections, if such limitations and 
requirements are more restrictive than the limitations and requirements 
of this Act.''.

SEC. 7. 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. 8. 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) In the event that independent expenditures totaling 
        in the aggregate $25,000 have been made in the same election in 
        favor of another candidate or against an eligible House of 
        Representatives candidate, the Commission shall, within 2 
        business days, notify the eligible candidate that such 
        candidate is entitled under section 502(g) to raise additional 
        contributions equaling the amount of such independent 
        expenditures. At such time as the aggregate amount the 
        independent expenditures referred to in the preceding sentence, 
        combined with the expenditures of all other candidates in such 
        election equals 100 percent of the election cycle limit set 
        forth in section 502(b), the Commission shall, within 2 
        business days, notify the eligible candidate that such 
        candidate is entitled under section 502(g) to make the 
        expenditures provided for in section 502(g).
            ``(6)(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 the Communications Act of 1934.''.

SEC. 9. 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 by a Member 
                of (or a Member-elect to) the House of Representatives 
                if it would be postmarked during the period beginning 
                on the date on which the Member of (or Member-elect to) 
                the House of Representatives becomes a candidate under 
                State law and ending on the date of the election, 
                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. 10. 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. 11. LIMITATION ON CONTRIBUTIONS AND EXPENDITURES BY LABOR 
              ORGANIZATIONS.

    (a) Contributions to All Political Committees Included.--Paragraph 
(2) of section 316(b) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441b(b)(2)) is amended by inserting ``political committee,'' 
after ``campaign committee,''.
    (b) Applicability of Requirements to Labor 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)(A) Subparagraphs (A), (B), and (C) of paragraph (2) shall not 
apply to a labor organization unless the organization meets the 
requirements of subparagraphs (B), (C), and (D).
    ``(B) The requirements of this subparagraph are met only if the 
labor organization provides, at least once annually, to all employees 
within the labor organization's bargaining unit or units (and to new 
employees within 30 days after commencement of their employment) 
written notification presented in a manner to inform any such 
employee--
            ``(i) that an employee cannot be obligated to pay, through 
        union dues or any other mandatory payment to a labor 
        organization, for the political activities of the labor 
        organization, including, but not limited to, the maintenance 
        and operation of, or solicitation of contributions to, a 
        political committee, political communications to members, and 
        voter registration and get-out-the-vote campaigns;
            ``(ii) that no employee may be required actually to join 
        any labor organization, but if a collective bargaining 
        agreement covering an employee purports to require membership 
        or payment of dues or other fees to a labor organization as a 
        condition of employment, the employee may elect instead to pay 
        an agency fee to the labor organization;
            ``(iii) that the amount of the agency fee shall be limited 
        to the employee's pro rata share of the cost of the labor 
        organization's exclusive representation services to the 
        employee's collective bargaining unit, including collective 
        bargaining, contract administration, and grievance adjustment;
            ``(iv) that an employee who elects to be a full member of 
        the labor organization and pay membership dues is entitled to a 
        reduction of those dues by the employee's pro rata share of the 
        total spending by the labor organization for political 
        activities;
            ``(v) that the cost of the labor organization's exclusive 
        representation services, and the amount of spending by such 
        organization for political activities, shall be computed on the 
        basis of such cost and spending for the immediately preceding 
        fiscal year of such organization; and
            ``(vi) of the amount of the labor organization's full 
        membership dues, initiation fees, and assessments for the 
        current year; the amount of the reduced membership dues, 
        subtracting the employee's pro rata share of the organization's 
        spending for political activities, for the current year; and 
        the amount of the agency fee for the current year.
    ``(C) The requirements of this subparagraph are met only if the 
labor organization provides all represented employees an annual 
examination by an independent certified public accountant of financial 
statements supplied by such organization which attests that the 
expenditures which the union claimed it made for certain expenses were 
actually made for those expenses. Such examination shall be conducted 
in accordance with generally accepted auditing standards.
    ``(D) The requirements of this subparagraph are met only if the 
labor organization--
            ``(i) maintains procedures to promptly determine the costs 
        that may properly be charged to agency fee payors as costs of 
        exclusive representation, and explains such procedures in the 
        written notification required under subparagraph (B); and
            ``(ii) if any person challenges the costs which may be 
        properly charged as costs of exclusive representation--
                    ``(I) provides a mutually selected impartial 
                decisionmaker to hear and decide such challenge 
                pursuant to rules of discovery and evidence and subject 
                to de novo review by the National Labor Relations Board 
                or an applicable court; and
                    ``(II) places in escrow amounts reasonably in 
                dispute pending the outcome of the challenge.
    ``(E)(i) A labor organization that does not satisfy the 
requirements of subparagraphs (B), (C), and (D) shall finance any 
expenditures specified in subparagraphs (A), (B), or (C) of paragraph 
(2) only with funds legally collected under this Act for its separate 
segregated fund.
    ``(ii) For purposes of this paragraph, subparagraph (A) of 
paragraph (2) shall apply only with respect to communications expressly 
advocating the election or defeat of any clearly identified candidate 
for elective public office.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to contributions and expenditures made after the date of 
the enactment of this Act.

SEC. 12. CAMPAIGN ADVERTISING AMENDMENTS.

    Section 318 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441d) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``Whenever'' and inserting 
                        ``Whenever a political committee makes a 
                        disbursement for the purpose of financing any 
                        communication through any broadcasting station, 
                        newspaper, magazine, outdoor advertising 
                        facility, mailing, phone bank or any other type 
                        of general public political advertising, or 
                        whenever'';
                            (ii) by striking ``an expenditure'' and 
                        inserting ``a disbursement''; and
                            (iii) by striking ``direct''; and
                    (B) in paragraph (3), by inserting ``and permanent 
                street address'' after ``name''; and
            (2) by adding at the end the following new subsections:
    ``(c) Any printed communication described in subsection (a) shall 
be--
            ``(1) of sufficient type size to be clearly readable by the 
        recipient of the communication;
            ``(2) contained in a printed box set apart from the other 
        contents of the communication; and
            ``(3) consist of a reasonable degree of color contrast 
        between the background and the printed statement.
    ``(d)(1) Any broadcast or cablecast communication described in 
subsection (a)(1) or subsection (a)(2) shall include, in addition to 
the requirements of those subsections, an audio statement by the 
candidate that identifies the candidate and states that the candidate 
is responsible for the content of the advertisement.
    ``(2) If a broadcast or cablecast communication described in 
paragraph (1) is broadcast or cablecast by means of television, the 
communication shall include, in addition to the audio statement under 
paragraph (1), a written statement which--
            ``(A) appears at the end of the communication in a clearly 
        readable manner with a reasonable degree of color contrast 
        between the background and the printed statement, for a period 
        of at least 4 seconds; and
            ``(B) is accompanied by a clearly identifiable photographic 
        or similar image of the candidate.
    ``(e) Any broadcast or cablecast communication described in 
subsection (a)(3) shall include, in addition to the requirements of 
those subsections, in a clearly spoken manner, the following statement: 
`________________ is responsible for the content of this 
advertisement.' (with the blank to be filled in with the name of the 
political committee or other person paying for the communication and 
the name of any connected organization of the payor). If broadcast or 
cablecast by means of television, the statement shall also appear in a 
clearly readable manner with a reasonable degree of color contrast 
between the background and the printed statement, for a period of at 
least 4 seconds.''.
                                 <all>
```