I

104TH CONGRESS

2D SESSION H. R. 3543

To provide for congressional election campaign accountability, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 29, 1996

Ms. DUNN of Washington (for herself, Mr. ISTOOK, Mr. JACOBS, and Mr.

ENGLISH of Pennsylvania) introduced the following bill; which was referred to the Committee on House Oversight, and in addition to the Committees on 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 provide for congressional election campaign

accountability, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Fairness, Accountabil5 ity, Integrity, and Reform (FAIR) Elections Act of 1996’’.
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1 TITLE I—PROMOTING FAIR COM2 PETITION BETWEEN INCUM3 BENTS AND CHALLENGERS

4 SEC. 101. LIMITATION ON FRANKED MASS MAILING PRIOR

5 TO GENERAL ELECTION.

6 Section 3210(a)(6)(A) of title 39, United States

7 Code, is amended—

8 (1) by redesignating clause (ii) as clause (iii);

9 (2) by amending clause (i) to read as follows:

10 ‘‘(i) if the mass mailing is postmarked fewer

11 than 60 days immediately before the date of any pri12 mary election (whether regular, special, or runoff) in

13 which the Member is a candidate for reelection;’’;

14 and

15 (3) by inserting after clause (i) the following:

16 ‘‘(ii) if the mass mailing is postmarked fewer

17 than 180 days immediately before the date of any

18 general election (whether regular, special, or runoff)

19 in which the Member is a candidate for reelection;

20 or’’.
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1 SEC. 102. HOUSE OF REPRESENTATIVES ELECTION LIMITA2 TIONS ON CONTRIBUTIONS FROM PERSONS

3 OTHER THAN STATE AND LOCAL RESIDENTS.

4 Section 315 of the Federal Election Campaign Act

5 of 1971 (2 U.S.C. 441a) is amended by adding at the end

6 the following new subsection:

7 ‘‘(i)(1) A candidate for the office of Representative

8 in, or Delegate or Resident Commissioner to, the Congress

9 may not, with respect to a reporting period for an election,

10 accept—

11 ‘‘(A) contributions from persons other than

12 local residents totaling in excess of three times the

13 total of contributions accepted from local residents;

14 or

15 ‘‘(B) contributions from persons other than

16 State residents totaling in excess of one half of the

17 total of contributions accepted from State residents.

18 ‘‘(2) For purposes of this subsection—

19 ‘‘(A) the term ‘local resident’ means a person

20 who resides or has its principal place of business in

21 the congressional district from which the candidate

22 involved seeks election;

23 ‘‘(B) an individual may not be considered a

24 resident of more than one congressional district; and

25 ‘‘(C) the term ‘State resident’ means a person

26 who resides or has its principal place of business in
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1 the State in which the congressional district involved

2 is located.

3 ‘‘(3)(A) Any candidate who accepts contributions that

4 exceed a limitation under this subsection by 5 percent or

5 less shall refund the excess contributions to the persons

6 who made the contributions.

7 ‘‘(B) Any candidate who accepts contributions that

8 exceed a limitation under this subsection by more than 5

9 percent and less than 10 percent shall pay to the Commis10 sion, for deposit in the Treasury, an amount equal to three

11 times the amount of the excess contributions.

12 ‘‘(C) Any candidate who accepts contributions that

13 exceed a limitation under this subsection by 10 percent

14 or more shall pay to the Commission, for deposit in the

15 Treasury, an amount equal to three times the amount of

16 the excess contributions plus a civil penalty in an amount

17 determined by the Commission.’’.
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1 TITLE II—REDUCING THE INFLU2 ENCE OF MULTICANDIDATE

3 POLITICAL COMMITTEES,

4 LOBBYISTS, AND FOREIGN

5 AGENTS

6 SEC. 201. RESTRICTIONS ON BUNDLING.

7 Section 315(a) of the Federal Election Campaign Act

8 of 1971 (2 U.S.C. 441a(a)) is amended by adding at the

9 end the following new paragraph:

10 ‘‘(9)(A) No person described in subparagraph (B), ei11 ther directly or indirectly, may act as a conduit or

12 intermediary for any contribution to a candidate.

13 ‘‘(B) A person referred to in subparagraph (A) is—

14 ‘‘(i) a multicandidate political committee (as de15 fined in subsection (a)(4)); or

16 ‘‘(ii) a person who is required to register or to

17 report its lobbying activities, or a lobbyist whose ac18 tivities are required to be reported, under section

19 308 of the Federal Regulation of Lobbying Act (2

20 U.S.C. 267), the Foreign Agents Registration Act of

21 1938 (22 U.S.C. 611 et seq.), or any successor Fed22 eral law requiring a person who is a lobbyist or for23 eign agent to register or a person to report its lobby24 ing activities.

25 ‘‘(C) For purposes of this paragraph:
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1 ‘‘(i) The term ‘conduit or intermediary’ means

2 a person who transmits a contribution to a can3 didate or candidate’s committee or representative

4 from another person, except that—

5 ‘‘(I) a candidate or representative of a can6 didate is not a conduit or intermediary for the

7 purpose of transmitting contributions to the

8 candidate’s principal campaign committee or

9 authorized committee; and

10 ‘‘(II) an individual is not a conduit or

11 intermediary for the purpose of transmitting a

12 contribution from the individual’s spouse.

13 ‘‘(ii) The term ‘representative’ means an indi14 vidual who is expressly authorized by the candidate

15 to engage in fundraising, and who occupies a signifi16 cant position within the candidate’s campaign orga17 nization, provided that the individual is not acting as

18 an officer, employee or agent of any other person.

19 ‘‘(D)(i) Nothing in this paragraph shall prohibit—

20 ‘‘(I) joint fundraising conducted in accordance

21 with rules prescribed by the Commission by 2 or

22 more candidates; or

23 ‘‘(II) fundraising for the benefit of a candidate

24 that is conducted by another candidate.
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1 ‘‘(ii) No person prohibited from acting as a conduit

2 or intermediary under subparagraph (A) may conduct or

3 otherwise participate in joint fundraising activities with or

4 on behalf of any candidate.’’.

5 SEC. 202. REDUCTION IN LIMITATION AMOUNT FOR CON6 TRIBUTIONS TO CANDIDATES FOR FEDERAL

7 OFFICE BY MULTICANDIDATE POLITICAL

8 COMMITTEES TO THE SAME AMOUNT APPLI9 CABLE TO CONTRIBUTIONS BY OTHER PER10 SONS.

11 (a) IN GENERAL.—Section 315(a)(2)(A) of the Fed12 eral Election Campaign Act of 1971 (2 U.S.C.

13 441a(a)(2)(A)) is amended by striking out ‘‘$5,000;’’ and

14 inserting ‘‘the amount applicable to contributions by other

15 persons under paragraph (1)(A);’’.

16 (b) INDEXING.—Section 315(a) of the Federal Elec17 tion Campaign Act of 1971 (2 U.S.C. 441a(a)), as amend18 ed by section 201, is further amended by adding at the

19 end the following new paragraph:

20 ‘‘(10) The amounts under paragraphs (1)(A) and

21 (2)(A) shall each be adjusted as of the beginning of each

22 calendar year based on the certification of the price index

23 difference under subsection (c), except that the base pe24 riod shall be calendar year 1996.’’.
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1 (c) AUTOMATIC CHANGE IN CERTAIN AMOUNTS.—

2 Section 315(a) of the Federal Election Campaign Act of

3 1971 (2 U.S.C. 441a(a)), as amended by section 201 and

4 subsection (b), is further amended by adding at the end

5 the following new paragraph:

6 ‘‘(11) If any change is made in the amount under

7 paragraph (1)(A) or the amount under paragraph (2)(A),

8 whether by law or by operation of paragraph (10), the

9 same change shall take effect with respect to the amount

10 in the other such paragraph.’’.

11 SEC. 203. LIMITATION ON FUNDRAISING BY MEMBERS OF

12 THE HOUSE OF REPRESENTATIVES IN THE

13 DISTRICT OF COLUMBIA.

14 Title III of the Federal Election Campaign Act of

15 1971 (2 U.S.C. 431 et seq.) is amended by adding at the

16 end the following new section:

17 ‘‘LIMITATION ON FUNDRAISING BY MEMBERS OF THE

18 HOUSE OF REPRESENTATIVES IN THE DISTRICT OF

19 COLUMBIA

20 ‘‘SEC. 323. A Representative in, or a Delegate or

21 Resident Commissioner to, the Congress may not solicit

22 or accept any contribution in the District of Columbia at

23 any time when the House of Representatives is conducting

24 legislative business.’’.
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1 TITLE III—DISCOURAGING CAN2 DIDATE EXPENDITURE OF

3 PERSONAL WEALTH

4 SEC. 301. PAYMENT OF CAMPAIGN DEBT BY HOUSE OF REP5 RESENTATIVES CANDIDATES.

6 Section 315 of the Federal Election Campaign Act

7 of 1971 (2 U.S.C. 441a), as amended by section 102, is

8 amended by adding at the end the following new sub9 section:

10 ‘‘(j) Not later than the 90th day after a general, spe11 cial, or runoff election for the office of Representative in,

12 or Delegate or Resident Commissioner to, the Congress,

13 any outstanding debt of, or loan or extension of credit to,

14 a candidate for such office or an authorized committee of

15 the candidate with respect to such election shall be paid

16 or repaid in full. Any such debt, loan, or extension of cred17 it that is not paid or repaid by such date shall be assumed

18 as a personal obligation by the candidate. No contribution

19 made to the candidate or an authorized committee of the

20 candidate may be used after such date to pay or repay

21 such debt, loan, or extension of credit.’’.

22 SEC. 302. CANDIDATE EXPENDITURES FROM PERSONAL

23 FUNDS.

24 Section 315 of the Federal Election Campaign Act

25 of 1971 (2 U.S.C. 441a), as amended by sections 102 and
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1 301, is further amended by adding at the end the following

2 new subsection:

3 ‘‘(k)(1) A candidate for the office of Representative

4 in, or Delegate or Resident Commissioner to, the Con5 gress, who makes an expenditure from the personal funds

6 of the candidate or the personal funds of a member of

7 the immediate family of the candidate or incurs a personal

8 loan in connection with the campaign for such office may

9 repay such expenditure or loan from contributions made

10 to the candidate or any authorized committee of the can11 didate with respect to the election only to the extent of

12 the actual amount of the loan or $25,000, whichever is

13 the lesser amount. Repayment of any such loan shall not

14 include any interest on the principal amount of such loan.

15 ‘‘(2) For purposes of this subsection, the term ‘imme16 diate family’ means a candidate’s spouse, and any child,

17 stepchild, parent, grandparent, brother, half-brother, sis18 ter or half-sister of the candidate, and the spouse of any

19 such person and any child, stepchild, parent, grandparent,

20 brother, half-brother, sister or half-sister of the can21 didate’s spouse, and any spouse of any such person.

22 ‘‘(3) The amount under the first sentence of para23 graph (1) shall be adjusted as of the beginning of each

24 calendar year based on the certification of the price index
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1 difference under section 315(c), except that the base pe2 riod shall be calendar year 1996.’’.

3 TITLE IV—ENCOURAGING PAR4 TICIPATION IN POLITICAL

5 CAMPAIGNS AND STRENGTH6 ENING POLITICAL PARTIES

7 SEC. 401. DEDUCTION FOR CONTRIBUTIONS TO CAN8 DIDATES FOR PUBLIC OFFICE.

9 (a) IN GENERAL.—Part VII of subchapter B of chap10 ter 1 of the Internal Revenue Code of 1986 (relating to

11 additional itemized deductions for individuals) is amended

12 by inserting after section 217 the following new section:

13 ‘‘SEC. 218. CONTRIBUTIONS TO CANDIDATES FOR PUBLIC

14 OFFICE.

15 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an

16 individual, there shall be allowed as a deduction any politi17 cal contribution payment of which is made by the individ18 ual within the taxable year.

19 ‘‘(b) LIMITATIONS.—

20 ‘‘(1) AMOUNT.—The deduction under sub21 section (a) shall not exceed $100 ($200 in the case

22 of a joint return).

23 ‘‘(2) VERIFICATION.—The deduction under sub24 section (a) shall be allowed, with respect to any po25 litical contribution, only if the contribution is veri-
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1 fied in the manner prescribed by the Secretary in

2 regulations.

3 ‘‘(3) INDEXING.—The amounts under para4 graph (1) shall each be adjusted as of the beginning

5 of each calendar year based on the certification of

6 the price index difference under section 315(c) of

7 the Federal Election Campaign Act of 1971 (2

8 U.S.C. 441a(c)), except that the base period shall be

9 calendar year 1996.

10 ‘‘(c) DEFINITIONS.—For purposes of this section—

11 ‘‘(1) POLITICAL CONTRIBUTION.—The term

12 ‘political contribution’ means a contribution or gift

13 of money to—

14 ‘‘(A) an individual who is a candidate for

15 nomination or election to any Federal, State, or

16 local elective public office in any primary, gen17 eral, or special election, for use by the individ18 ual to further the candidacy of the individual

19 for nomination or election to the office,

20 ‘‘(B) any committee, association, or organi21 zation (whether or not incorporated) organized

22 and operated exclusively for the purpose of in23 fluencing, or attempting to influence, the nomi24 nation or election of 1 or more individuals who

25 are candidates for nomination or election to any
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1 Federal, State, or local elective public office, for

2 use by the committee, association, or organiza3 tion to further the candidacy of the individual

4 or individuals for nomination or election to the

5 office,

6 ‘‘(C) the national committee of a national

7 political party,

8 ‘‘(D) the State committee of a national po9 litical party as designated by the national com10 mittee of the party, or

11 ‘‘(E) a local committee of a national politi12 cal party as designated by the State committee

13 of the party designated under subparagraph

14 (D).

15 ‘‘(2) CANDIDATE.—The term ‘candidate’

16 means, with respect to any Federal, State, or local

17 elective public office, an individual who—

18 ‘‘(A) publicly announces before the close of

19 the calendar year following the calendar year in

20 which the contribution or gift is made that the

21 individual is a candidate for nomination or elec22 tion to the office, and

23 ‘‘(B) meets the qualifications prescribed by

24 law to hold such office.
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1 ‘‘(3) NATIONAL POLITICAL PARTY.—The term

2 ‘national political party’ means—

3 ‘‘(A) in the case of contributions made

4 during a taxable year of the taxpayer in which

5 the electors of President and Vice President are

6 chosen, a political party presenting candidates

7 or electors for such offices on the official elec8 tion ballot of 10 or more States, or

9 ‘‘(B) in the case of contributions made

10 during any other taxable year of the taxpayer,

11 a political party which met the qualifications

12 described in subparagraph (A) in the last pre13 ceding election of a President and Vice Presi14 dent.

15 ‘‘(4) STATE AND LOCAL.—The term ‘State’

16 means the various States and the District of Colum17 bia. The term ‘local’ means a political subdivision or

18 part thereof, or 2 or more political subdivisions or

19 parts thereof, of a State.

20 ‘‘(d) CROSS REFERENCES.—

‘‘(1) For disallowance of deduction to estates and

trusts, see section 642(j).

‘‘(2) For treatment of Indian tribal governments as

States (and the subdivisions of Indian tribal governments as political subdivisions of States), see section 7871.’’

21 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 642 of such Code (relating to spe2 cial rules for credits and deductions) is amended by

3 adding at the end the following new subsection:

4 ‘‘(j) POLITICAL CONTRIBUTIONS.—An estate or trust

5 shall not be allowed any deduction under section 218 (re6 lating to contributions to candidates for public office).’’

7 (2) Paragraph (6) of section 7871(a) of such

8 Code (relating to Indian tribal governments treated

9 as States for certain purposes) is amended by redes10 ignating subparagraphs (B) and (C) as subpara11 graphs (C) and (D), respectively, and by inserting

12 after subparagraph (A) the following new subpara13 graph:

14 ‘‘(B) section 218(c)(4) (relating to con15 tributions to candidates for public office),’’.

16 (3) The table of sections for part VII of sub17 chapter B of chapter 1 of such Code is amended by

18 inserting after the item relating to section 217 the

19 following new item:

‘‘Sec. 218. Contributions to candidates for public office.’’

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall apply to amounts paid after the date of

22 the enactment of this Act.

23 SEC. 402. POLITICAL PARTY CONTRIBUTIONS.

24 Section 315(d) of the Federal Election Campaign Act

25 of 1971 (2 U.S.C. 441a(d)) is amended—
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1 (1) in paragraph (1), by striking ‘‘and (3)’’ and

2 inserting ‘‘, (3), and (4)’’;

3 (2) in paragraph (3), by striking ‘‘The’’ and in4 serting ‘‘Except as provided in paragraph (4), the’’;

5 and

6 (3) by adding at the end the following:

7 ‘‘(4) The national, State, and local committees of a

8 political party each may contribute $5,000 to a candidate

9 for office of Representative in, or Delegate or Resident

10 Commissioner to, the Congress or to the authorized politi11 cal committee of the candidate. The amount under the

12 preceding sentence shall be adjusted as of the beginning

13 of each calendar year based on the certification of the

14 price index difference under subsection (c), except that the

15 base period shall be calendar year 1996.’’.

16 TITLE V—IMPROVING THE OPER17 ATION OF THE FEDERAL

18 ELECTION COMMISSION

19 SEC. 501. CHANGE IN CERTAIN REPORTING FROM A CAL20 ENDAR YEAR BASIS TO AN ELECTION CYCLE

21 BASIS.

22 Paragraphs (2) through (7) of section 304(b) of the

23 Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)

24 (2)–(7)) are amended by inserting after ‘‘calendar year’’

25 each place it appears the following: ‘‘(election cycle, in the
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1 case of an authorized committee of a candidate for Federal

2 office)’’.

3 SEC. 502. RANDOM AUDITS.

4 Section 311(b) of the Federal Election Campaign Act

5 of 1971 (2 U.S.C. 438(b)) is amended—

6 (1) by inserting ‘‘(1)’’ before ‘‘The Commis7 sion’’; and

8 (2) by adding at the end the following:

9 ‘‘(2)(A) Notwithstanding paragraph (1), the Commis10 sion may from time to time conduct random audits and

11 investigations to ensure voluntary compliance with this

12 Act. The subjects of such audits and investigations shall

13 be selected on the basis of criteria established by vote of

14 at least 4 members of the Commission to ensure impartial15 ity in the selection process.’’.

16 SEC. 503. PRELIMINARY REPORT ON INVESTIGATION OF

17 ALLEGED VIOLATION.

18 Section 309(a)(2) of the Federal Election Campaign

19 Act of 1971 (2 U.S.C. 437g(a)(2)) is amended by adding

20 at the end the following: ‘‘If the Commission is unable to

21 complete the investigation before the expiration of the 90-

22 day period beginning on the date that the vote is taken

23 under this paragraph, the Commission shall prepare a pre24 liminary report on such investigation and submit it to the

25 respondent not later than the date of the expiration of
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1 such period. In the preliminary report, the Commission

2 shall specify a date certain for completion of the investiga3 tion. If, on that date, the investigation has not been com4 pleted, the investigation shall be terminated and the com5 plaint, if any, shall be dismissed, unless, by vote of at least

6 4 members, the Commission determines that the investiga7 tion should continue.’’.

8 TITLE VI—ACTIVITIES OF LABOR

9 ORGANIZATIONS, CORPORA10 TIONS, AND OTHER ENTITIES

11 SEC. 601. LIMITATION ON CONTRIBUTIONS AND EXPENDI12 TURES BY LABOR ORGANIZATIONS.

13 (a) CONTRIBUTIONS TO ALL POLITICAL COMMIT14 TEES INCLUDED.—Paragraph (2) of section 316(b) of the

15 Federal Election Campaign Act of 1971 (2 U.S.C.

16 441b(b)(2)) is amended by inserting ‘‘political commit17 tee,’’ after ‘‘campaign committee,’’.

18 (b) APPLICABILITY OF REQUIREMENTS TO LABOR

19 ORGANIZATIONS.—Section 316(b) of such Act (2 U.S.C.

20 441b(b)) is amended by adding at the end the following

21 new paragraph:

22 ‘‘(8)(A) Subparagraphs (A), (B), and (C) of para23 graph (2) shall not apply to a labor organization unless

24 the organization meets the requirements of subparagraphs

25 (B), (C), and (D).
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1 ‘‘(B) The requirements of this subparagraph are met

2 only if the labor organization provides, at least once annu3 ally, to all employees within the labor organization’s bar4 gaining unit or units (and to new employees within 30

5 days after commencement of their employment) written

6 notification presented in a manner to inform any such em7 ployee—

8 ‘‘(i) that an employee cannot be obligated to

9 pay, through union dues or any other mandatory

10 payment to a labor organization, for the political ac11 tivities of the labor organization, including, but not

12 limited to, the maintenance and operation of, or so13 licitation of contributions to, a political committee,

14 political communications to members, and voter reg15 istration and get-out-the-vote campaigns;

16 ‘‘(ii) that no employee may be required actually

17 to join any labor organization, but if a collective bar18 gaining agreement covering an employee purports to

19 require membership or payment of dues or other

20 fees to a labor organization as a condition of em21 ployment, the employee may elect instead to pay an

22 agency fee to the labor organization;

23 ‘‘(iii) that the amount of the agency fee shall be

24 limited to the employee’s pro rata share of the cost

25 of the labor organization’s exclusive representation
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1 services to the employee’s collective bargaining unit,

2 including collective bargaining, contract administra3 tion, and grievance adjustment;

4 ‘‘(iv) that an employee who elects to be a full

5 member of the labor organization and pay member6 ship dues is entitled to a reduction of those dues by

7 the employee’s pro rata share of the total spending

8 by the labor organization for political activities;

9 ‘‘(v) that the cost of the labor organization’s ex10 clusive representation services, and the amount of

11 spending by such organization for political activities,

12 shall be computed on the basis of such cost and

13 spending for the immediately preceding fiscal year of

14 such organization; and

15 ‘‘(vi) of the amount of the labor organization’s

16 full membership dues, initiation fees, and assess17 ments for the current year; the amount of the re18 duced membership dues, subtracting the employee’s

19 pro rata share of the organization’s spending for po20 litical activities, for the current year; and the

21 amount of the agency fee for the current year.

22 ‘‘(C) The requirements of this subparagraph are met

23 only if the labor organization provides all represented em24 ployees an annual examination by an independent certified

25 public accountant of financial statements supplied by such
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1 organization which attests that the expenditures which the

2 union claimed it made for certain expenses were actually

3 made for those expenses. Such examination shall be con4 ducted in accordance with generally accepted auditing

5 standards.

6 ‘‘(D) The requirements of this subparagraph are met

7 only if the labor organization—

8 ‘‘(i) maintains procedures to promptly deter9 mine the costs that may properly be charged to

10 agency fee payors as costs of exclusive representa11 tion, and explains such procedures in the written no12 tification required under subparagraph (B); and

13 ‘‘(ii) if any person challenges the costs which

14 may be properly charged as costs of exclusive rep15 resentation—

16 ‘‘(I) provides a mutually selected impartial

17 decisionmaker to hear and decide such chal18 lenge pursuant to rules of discovery and evi19 dence and subject to de novo review by the Na20 tional Labor Relations Board or an applicable

21 court; and

22 ‘‘(II) places in escrow amounts reasonably

23 in dispute pending the outcome of the chal24 lenge.
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1 ‘‘(E)(i) A labor organization that does not satisfy the

2 requirements of subparagraphs (B), (C), and (D) shall fi3 nance any expenditures specified in subparagraphs (A) or

4 (B) of paragraph (2) only with funds legally collected

5 under this Act for its separate segregated fund.

6 ‘‘(ii) For purposes of this paragraph, subparagraph

7 (A) of paragraph (2) shall apply only with respect to com8 munications expressly advocating the election or defeat of

9 any clearly identified candidate for elective public office.’’.

10 SEC. 602. DISCLOSURE OF ELECTION-RELATED ACTIVITY

11 BY CORPORATIONS, LABOR ORGANIZATIONS

12 AND NONPROFIT ORGANIZATIONS.

13 Section 304 of the Federal Election Campaign Act

14 of 1971 (2 U.S.C. 434) is amended by adding at the end

15 the following new subsection:

16 ‘‘(d) Any corporation, labor organization, or non17 profit organization that makes a payment for a commu18 nication or other activity that—

19 ‘‘(1) relates to any election for Federal office;

20 and

21 ‘‘(2) in the case of a corporation or labor orga22 nization, by reason of subparagraph (A), (B), or (C)

23 of paragraph (2) of section 316(b), is not a con24 tribution or expenditure;
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1 shall report such payment to the Commission in the same

2 manner as a contribution or expenditure, as the case may

3 be, is reported by a principal campaign committee of a

4 candidate for the House of Representatives or the Senate

5 under this section.’’.

6 TITLE VII—EFFECTIVE DATE

7 SEC. 701. EFFECTIVE DATE.

8 Except as otherwise provided in this Act, the amend9 ments made by, and the provisions of, this Act shall take

10 effect on the date of the enactment of this Act, but shall

11 not apply with respect to activities in connection with any

12 election occurring before January 1, 1996.

Æ