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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1427 Introduced in House (IH)]

  1st Session
                                H. R. 1427

To amend the Federal Election Campaign Act of 1971 to control House of 
       Representatives campaign spending, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 1995

 Mr. Costello 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 control House of 
       Representatives campaign spending, 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 ``Campaign Finance System Reform 
Act''.

     TITLE I--CONTROL OF HOUSE OF REPRESENTATIVES CAMPAIGN SPENDING

SEC. 101. HOUSE OF REPRESENTATIVES CANDIDATES PROHIBITED FROM ACCEPTING 
              CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES AND OTHER 
              SOURCES EXCEPT INDIVIDUALS.

    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) Notwithstanding any other provision of this Act, a candidate 
for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress may not accept any contribution from a 
multicandidate political committee or any other person other than an 
individual.''.

SEC. 102. CONTRIBUTIONS TO HOUSE OF REPRESENTATIVES CANDIDATES REQUIRED 
              TO BE FROM INDIVIDUAL RESIDENTS OF THE CONGRESSIONAL 
              DISTRICT.

    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:

 ``contributions to house of representatives candidates required to be 
        from individual residents of the congressional district

    ``Sec. 323. Notwithstanding any other provision of this Act, a 
candidate for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress may not accept contributions from any 
person other than an individual resident of the congressional district 
involved.''.

SEC. 103. PROVISIONS APPLICABLE TO ELIGIBLE HOUSE OF REPRESENTATIVES 
              CANDIDATES.

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

  ``TITLE V--EXPENDITURE LIMITATIONS AND CONTRIBUTION LIMITATIONS FOR 
              ELIGIBLE HOUSE OF REPRESENTATIVES CANDIDATES

``SEC. 501. EXPENDITURE LIMITATIONS.

    ``(a) In General.--An eligible House of Representatives candidate 
may not, in an election cycle, make expenditures aggregating more than 
$600,000, of which not more than $500,000 may be expended in the 
general election period.
    ``(b) Runoff Election and Special Election Amounts.--
            ``(1) Runoff election amount.--In addition to the 
        expenditures under subsection (a), an eligible House of 
        Representatives candidate who is a candidate in a runoff 
        election may make expenditures aggregating not more than 20 
        percent of the general election period limit under subsection 
        (a).
            ``(2) Special election amount.--An eligible House of 
        Representatives candidate who is a candidate in a special 
        election may make expenditures aggregating not more than 
        $500,000 with respect to the special election.
    ``(c) Closely Contested Primary.--If, as determined by the 
Commission, an eligible House of Representatives candidate in a 
contested primary election wins that primary election by a margin of 10 
percentage points or less, subject to the general election period 
limitation in subsection (a), the candidate may make additional 
expenditures of not more than $150,000 in the general election period.
    ``(d) Nonparticipating Opponent Provisions.--
            ``(1) Limitation exception.--The limitations imposed by 
        subsections (a) and (b) do not apply in the case of an eligible 
        House of Representatives candidate if any other candidate 
        seeking nomination or election to that office--
                    ``(A) is not an eligible House of Representatives 
                candidate; and
                    ``(B) makes expenditures in excess of 80 percent of 
                the general election period limitation specified in 
                subsection (a).
            ``(2) Reporting requirement.--A candidate for the office of 
        Representative in, or Delegate or Resident Commissioner to, the 
        Congress--
                    ``(A) who is not an eligible House of 
                Representatives candidate; and
                    ``(B) who--
                            ``(i) receives contributions in excess of 
                        50 percent of the general election period 
                        limitation specified in subsection (a)(1); or
                            ``(ii) makes expenditures in excess of 80 
                        percent of such limit;
        shall report that the threshold has been reached to the Clerk 
        of the House of Representatives not later than 48 hours after 
        reaching the threshold. The Clerk shall transmit a report 
        received under this paragraph to the Commission as soon as 
        possible (but no later than 4 working hours of the Commission) 
        after such receipt, and the Commission shall transmit a copy to 
        each other candidate in the election within 48 hours of 
        receipt.
    ``(e) Exemption for Certain Costs and Taxes.--Payments for legal 
and accounting compliance costs, and Federal, State, or local taxes 
with respect to a candidate's authorized committees, shall not be 
considered in the computation of amounts subject to limitation under 
this section.
    ``(f) Exemption for Fundraising Costs.--
            ``(1) Any costs incurred by an eligible House of 
        Representatives candidate or his or her authorized committee in 
        connection with the solicitation of contributions on behalf of 
        such candidate shall not be considered in the computation of 
        amounts subject to limitation under this section to the extent 
        that the aggregate of such costs does not exceed 5 percent of 
        the limitation under subsection (a) or subsection (b).
            ``(2) An amount equal to 5 percent of salaries and overhead 
        expenditures of an eligible House of Representatives 
        candidate's campaign headquarters and offices shall not be 
        considered in the computation of amounts subject to limitation 
        under this section. Any amount excluded under this paragraph 
        shall be applied against the fundraising expenditure exemption 
        under paragraph (1).
    ``(g) Indexing.--The dollar amounts specified in subsections (a), 
(b), (c), and (e) shall be adjusted at the beginning of each calendar 
year based on the increase in the price index determined under section 
315(c), except that, for the purposes of such adjustment, the base 
period shall be calendar year 1996.

``SEC. 502. CONTRIBUTION LIMITATIONS.

    ``(a) Eligible House of Representatives Candidate Limitation.--An 
eligible House of Representatives candidate may not, with respect to an 
election cycle, accept contributions aggregating in excess of $600,000.
    ``(b) Nonparticipating Opponent Provisions.--The limitations 
imposed by subsection (a) do not apply in the case of an eligible House 
of Representatives candidate if any other candidate seeking nomination 
or election to that office--
            ``(1) is not an eligible House of Representatives 
        candidate; and
            ``(2) receives contributions in excess of 50 percent of the 
        general election period limitation specified in section 501(a).
    ``(c) Transfer Provision.--If an eligible House of Representatives 
candidate transfers any amount from an election cycle to a later 
election cycle, the limitation with respect to the candidate under 
subsection (a) for the later cycle shall be an amount equal to the 
difference between the amount specified in that subsection and the 
amount transferred.
    ``(d) Runoff Amount.--In addition to the contributions under 
subsection (a), an eligible House of Representatives candidate who is a 
candidate in a runoff election may accept contributions aggregating not 
more than 20 percent of the general election expenditure limit under 
section 501(a) in the general election period.
    ``(e) Personal Contributions.--
            ``(1) In general.--An eligible House of Representatives 
        candidate may not, with respect to an election cycle, make 
        contributions to his or her own campaign totaling more than 
        $50,000 from the personal funds of the candidate.
            ``(2) Limitation exception.--The limitation imposed by 
        paragraph (1) does not apply in the case of an eligible House 
        of Representatives candidate if any other candidate--
                    ``(A) is not an eligible House of Representatives 
                candidate; and
                    ``(B) receives contributions in excess of 50 
                percent of the general election period limitation 
                specified in section 501(a).
    ``(f) Exemption for Certain Costs.--(1) Any amount--
            ``(A) accepted by a candidate for the office of 
        Representative in, or Delegate or Resident Commissioner to the 
        Congress; and
            ``(B) used for legal and accounting compliance costs, or 
        used to pay Federal, State, or local taxes with respect to a 
        candidate's authorized committees shall not be considered in 
        the computation of amounts subject to limitation under 
        subsection (a).
    ``(2) The balance of funds maintained for legal and accounting 
compliance costs by the authorized committees of an eligible House of 
Representatives candidate shall not exceed 20 percent of the limit 
under subsection (a) at any time.
    ``(g) Indexing.--The dollar amounts specified in subsections (a) 
and (e) shall be adjusted at the beginning of the calendar year based 
on the increase in the price index determined under section 315(c), 
except that, for the purposes of such adjustment, the base period shall 
be calendar year 1996.''.

    TITLE II--PROVISIONS RELATING TO SOFT MONEY OF POLITICAL PARTIES

SEC. 201. CONTRIBUTIONS TO POLITICAL PARTY COMMITTEES.

    (a) Individual Contributions to State Party.--Paragraph (1) of 
section 315(a) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a(a)(1)) is amended by striking ``or'' at the end of subparagraph 
(B), by redesignating subparagraph (C) as subparagraph (D), and by 
inserting after subparagraph (B) the following new subparagraph:
            ``(C) to political committees established and maintained by 
        a State committee of a political party in any calendar year 
        which, in the aggregate, exceed $10,000; or''.
    (b) Multicandidate Committee Contributions to State Party.--
Paragraph (2) of section 315(a) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441a(a)(2)) is amended by striking ``or'' at the end of 
subparagraph (B), by redesignating subparagraph (C) as subparagraph 
(D), and by inserting after subparagraph (B) the following new 
subparagraph:
            ``(C) to political committees established and maintained by 
        a State committee of a political party in any calendar year 
        which, in the aggregate, exceed $10,000; or''.
    (c) Increase in Overall Limit.--Paragraph (3) of section 315(a) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is 
amended by adding at the end the following new sentence: ``The 
limitation under this paragraph shall be increased (but not by more 
than $5,000) by the amount of contributions made by an individual 
during a calendar year to political committees which are taken into 
account for purposes of paragraph (1)(C).''.

SEC. 202. PROVISIONS RELATING TO NATIONAL, STATE, AND LOCAL PARTY 
              COMMITTEES.

    (a) Expenditures by State Committees in Connection With 
Presidential Campaigns.--Section 315(d) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(d)) is amended by inserting at the 
end the following new paragraph:
    ``(4) A State committee of a political party, including subordinate 
committees of that State committee, shall not make expenditures in 
connection with the general election campaign of a candidate for 
President of the United States who is affiliated with such party which, 
in the aggregate, exceed an amount equal to 4 cents multiplied by the 
voting age population of the State, as certified under subsection (e). 
This paragraph shall not authorize a committee to make expenditures for 
audio broadcasts (including television broadcasts) in excess of the 
amount which could have been made without regard to this paragraph.''.
    (b) Contribution and Expenditure Exceptions.--(1) Section 301(8)(B) 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is 
amended--
            (A) in clause (xi), by striking ``direct mail'' and 
        inserting ``mail''; and
            (B) by repealing clauses (x) and (xii).
    (2) Section 301(9)(B) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 431(9)(B)) is amended by repealing clauses (viii) and (ix).
    (c) Soft Money of Committees of Political Parties.--(1) Title III 
of the Federal Election Campaign Act of 1971, as amended by section 
102, is further amended by adding at the end the following new section:

                      ``political party committees

    ``Sec. 324. (a) Any amount solicited, received, or expended 
directly or indirectly by a national, State, district, or local 
committee of a political party (including any subordinate committee) 
with respect to an activity which, in whole or in part, is in 
connection with an election to Federal office shall be subject in its 
entirety to the limitations, prohibitions, and reporting requirements 
of this Act.
    ``(b) For purposes of subsection (a)--
            ``(1) Any activity which is solely for the purpose of 
        influencing an election for Federal office is in connection 
        with an election for Federal office.
            ``(2) Except as provided in paragraph (3), any of the 
        following activities during a Federal election period shall be 
        treated as in connection with an election for Federal office:
                    ``(A) Voter registration and get-out-the-vote 
                activities.
                    ``(B) Campaign activities, including broadcasting, 
                newspaper, magazine, billboard, mass mail, and 
                newsletter communications, and similar kinds of 
                communications or public advertising that--
                            ``(i) are generic campaign activities; or
                            ``(ii) identify a Federal candidate 
                        regardless of whether a State or local 
                        candidate is also identified.
                    ``(C) The preparation and dissemination of campaign 
                materials that are part of a generic campaign activity 
                or that identify a Federal candidate, regardless of 
                whether a State or local candidate is also identified.
                    ``(D) Development and maintenance of voter files.
                    ``(E) Any other activity affecting (in whole or in 
                part) an election for Federal office.
            ``(3) The following shall not be treated as in connection 
        with a Federal election:
                    ``(A) Any amount described in section 
                301(8)(B)(viii).
                    ``(B) Any amount contributed to a candidate for 
                other than Federal office.
                    ``(C) Any amount received or expended in connection 
                with a State or local political convention.
                    ``(D) Campaign activities, including broadcasting, 
                newspaper, magazine, billboard, mass mail, and 
                newsletter communications, and similar kinds of 
                communications or public advertising that are 
                exclusively on behalf of State or local candidates and 
                are not activities described in paragraph (2)(A).
                    ``(E) Administrative expenses of a State or local 
                committee of a political party, including expenses 
                for--
                            ``(i) overhead;
                            ``(ii) staff (other than individuals 
                        devoting a substantial portion of their 
                        activities to elections for Federal office);
                            ``(iii) meetings; and
                            ``(iv) conducting party elections or 
                        caucuses.
                    ``(F) Research pertaining solely to State and local 
                candidates and issues.
                    ``(G) Development and maintenance of voter files 
                other than during a Federal election period.
                    ``(H) Activities described in paragraph (2)(A) 
                which are conducted other than during a Federal 
                election period.
                    ``(I) Any other activity which is solely for the 
                purpose of influencing, and which solely affects, an 
                election for non-Federal office.
            ``(4) For purposes of this subsection, the term `Federal 
        election period' means the period--
                    ``(A) beginning on June 1, of any even-numbered 
                calendar year (April 1 if an election to the office of 
                President occurs in such year), and
                    ``(B) ending on the date during such year on which 
                regularly scheduled general elections for Federal 
                office occur.
        In the case of a special election, the Federal election period 
        shall include at least the 60-day period ending on the date of 
        the election.
    ``(c) Solicitation of Committees.--(1) A national committee of a 
political party may not solicit or accept contributions not subject to 
the limitations, prohibitions, and reporting requirements of this Act.
    ``(2) Paragraph (1) shall not apply to contributions that--
            ``(A) are to be transferred to a State committee of a 
        political party for use directly for activities described in 
        subsection (b)(3); or
            ``(B) are to be used by the committee primarily to support 
        such activities.
    ``(d) Amounts Received From State and Local Candidate Committees.--
(1) For purposes of subsection (a), any amount received by a national, 
State, district, or local committee of a political party (including any 
subordinate committee) from a State or local candidate committee shall 
be treated as meeting the requirements of subsection (a) and section 
304(d) if--
            ``(A) such amount is derived from funds which meet the 
        requirements of this Act with respect to any limitation or 
        prohibition as to source or dollar amount, and
            ``(B) the State or local candidate committee--
                    ``(i) maintains, in the account from which payment 
                is made, records of the sources and amounts of funds 
                for purposes of determining whether such requirements 
                are met, and
                    ``(ii) certifies to the other committee that such 
                requirements were met.
    ``(2) Notwithstanding paragraph (1), any committee receiving any 
contribution described in paragraph (1) from a State or local candidate 
committee shall be required to meet the reporting requirements of this 
Act with respect to receipt of the contribution from such candidate 
committee.
    ``(3) For purposes of this subsection, a State or local candidate 
committee is a committee established, financed, maintained, or 
controlled by a candidate for other than Federal office.''.
    (2) Section 315(d) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(d)), as amended by subsection (a), is amended by adding at 
the end the following new paragraph:
            ``(5)(A) The national committee of a political party, the 
        congressional campaign committees of a political party, and a 
        State or local committee of a political party, including a 
        subordinate committee of any of the preceding committees, shall 
        not make expenditures during any calendar year for activities 
        described in section 324(b)(2) with respect to such State 
        which, in the aggregate, exceed an amount equal to 30 cents 
        multiplied by the voting age population of the State (as 
        certified under subsection (e)).
            ``(B) Expenditures authorized under this paragraph shall be 
        in addition to other expenditures allowed under this 
        subsection, except that this paragraph shall not authorize a 
        committee to make expenditures to which paragraph (3) or (4) 
        applies in excess of the limit applicable to such expenditures 
        under paragraph (3) or (4).
            ``(C) No adjustment to the limitation under this paragraph 
        shall be made under subsection (c) before 1996 and the base 
        period for purposes of any such adjustment shall be 1994.
            ``(D) For purposes of this paragraph--
                    ``(i) a local committee of a political party shall 
                only include a committee that is a political committee 
                (as defined in section 301(4)); and
                    ``(ii) a State committee shall not be required to 
                record or report under this Act the expenditures of any 
                other committee which are made independently from the 
                State committee.''.
    (3) Section 301(4) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(4)) is amended by adding at the end the following new 
sentence: ``For purposes of subparagraph (C), any payments for get-out-
the-vote activities on behalf of candidates for office other than 
Federal office shall be treated as payments exempted from the 
definition of expenditure under paragraph (9).''.
    (d) Generic Activities.--Section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431), as amended by section 402, is 
further amended by adding at the end the following new paragraph:
            ``(25) The term `generic campaign activity' means a 
        campaign activity the preponderant purpose or effect of which 
        is to promote a political party rather than any particular 
        Federal or non-Federal candidate.''.

SEC. 203. RESTRICTIONS ON FUNDRAISING BY CANDIDATES AND OFFICEHOLDERS.

    (a) State Fundraising Activities.--Section 315 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a), as amended by section 
101, is further amended by adding at the end the following new 
subsection:
    ``(j) Limitations on Fundraising Activities of Federal Candidates 
and Officeholders and Certain Political Committees.--(1) For purposes 
of this Act, a candidate for Federal office (or an individual holding 
Federal office) may not solicit funds to, or receive funds on behalf 
of, any Federal or non-Federal candidate or political committee--
            ``(A) which are to be expended in connection with any 
        election for Federal office unless such funds are subject to 
        the limitations, prohibitions, and requirements of this Act; or
            ``(B) which are to be expended in connection with any 
        election for other than Federal office unless such funds are 
        not in excess of amounts permitted with respect to Federal 
        candidates and political committees under this Act, and are not 
        from sources prohibited by this Act with respect to elections 
        to Federal office.
    ``(2)(A) The aggregate amount which a person described in 
subparagraph (B) may solicit from a multicandidate political committee 
for State committees described in subsection (a)(1)(C) (including 
subordinate committees) for any calendar year shall not exceed the 
dollar amount in effect under subsection (a)(2)(B) for the calendar 
year.
    ``(B) A person is described in this subparagraph if such person is 
a candidate for Federal office, an individual holding Federal office, 
or any national, State, district, or local committee of a political 
party (including subordinate committees).
    ``(3) The appearance or participation by a candidate or individual 
in any activity (including fundraising) conducted by a committee of a 
political party or a candidate for other than Federal office shall not 
be treated as a solicitation for purposes of paragraph (1) if--
            ``(A) such appearance or participation is otherwise 
        permitted by law; and
            ``(B) such candidate or individual does not solicit or 
        receive, or make expenditures from, any funds resulting from 
        such activity.
    ``(4) Paragraph (1) shall not apply to the solicitation or receipt 
of funds, or disbursements, by an individual who is a candidate for 
other than Federal office if such activity is permitted under State 
law.
    ``(5) For purposes of this subsection, an individual shall be 
treated as holding Federal office if such individual is described in 
section 101(f) of the Ethics in Government Act of 1978.''.
    (b) Tax-Exempt Organizations.--Section 315 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a), as amended by section 101 and 
subsection (a) of this section, is further amended by adding at the end 
the following new subsection:
    ``(k) Tax-Exempt Organizations.--(1) If during any period an 
individual is a candidate for, or holds, Federal office, such 
individual may not during such period solicit contributions to, or on 
behalf of, any organization which is described in section 501(c) of the 
Internal Revenue Code of 1986 if a significant portion of the 
activities of such organization include voter registration or get-out-
the-vote campaigns.
    ``(2) For purposes of this subsection, an individual shall be 
treated as holding Federal office if such individual is described in 
section 101(f) of the Ethics in Government Act of 1978.''.

SEC. 204. 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 
thereof the following new subsection:
    ``(d) Political Committees.--(1) The national committee of a 
political party and any congressional campaign committee, and any 
subordinate committee of either, shall report all receipts and 
disbursements during the reporting period, whether or not in connection 
with an election for Federal office.
    ``(2) A political committee (not described in paragraph (1)) to 
which section 324 applies shall report all receipts and disbursements 
in connection with a Federal election (as determined under section 
324).
    ``(3) Any political committee to which section 324 applies shall 
include in its report under paragraph (1) or (2) the amount of any 
transfer described in section 324(c) and the reason for the transfer.
    ``(4) Any political committee to which paragraph (1) or (2) does 
not apply shall report any receipts or disbursements which are used in 
connection with a Federal election.
    ``(5) If any receipt or disbursement to which this subsection 
applies exceeds $200, the political committee shall include 
identification of the person from whom, or to whom, such receipt or 
disbursement was made.
    ``(6) Reports required to be filed by this subsection shall be 
filed for the same time periods required for political committees under 
subsection (a).''.
    (b) Report of Exempt Contributions.--Section 301(8) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431(8)) is amended by inserting 
at the end the following:
    ``(C) The exclusions provided in clauses (v) and (viii) of 
subparagraph (B) shall not apply for purposes of any requirement to 
report contributions under this Act, and all such contributions in 
excess of $200 shall be reported.''.
    (c) Reporting of Exempt Expenditures.--Section 301(9) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)) is amended by 
inserting at the end the following:
    ``(C) The exclusions provided in clause (iv) of subparagraph (B) 
shall not apply for purposes of any requirement to report expenditures 
under this Act, and all such expenditures in excess of $200 shall be 
reported.''.
    (d) Contributions and Expenditures of Political Committees.--
Section 301(4) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431(4)) is amended by adding at the end the following: ``For purposes 
of this paragraph, the receipt of contributions or the making of, or 
obligating to make, expenditures shall be determined by the Commission 
on the basis of facts and circumstances, in whatever combination, 
demonstrating a purpose of influencing any election for Federal office, 
including, but not limited to, the representations made by any person 
soliciting funds about their intended uses; the identification by name 
of individuals who are candidates for Federal office or of any 
political party, in general public political advertising; and the 
proximity to any primary, runoff, or general election of general public 
political advertising designed or reasonably calculated to influence 
voter choice in that election.''.
    (e) 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 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.''.

                  TITLE III--INDEPENDENT EXPENDITURES

SEC. 301. CLARIFICATION OF DEFINITIONS 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 paragraphs (17) and (18) and inserting the following:
    ``(17)(A) The term `independent expenditure' means an expenditure 
for an advertisement or other communication that--
            ``(i) contains express advocacy; and
            ``(ii) is made without the participation or cooperation of 
        a candidate or a candidate's representative.
    ``(B) The following shall not be considered an independent 
expenditure:
            ``(i) An expenditure made by a political committee of a 
        political party.
            ``(ii) An expenditure made by a person who, during the 
        election cycle, has communicated with or received information 
        from a candidate or a representative of that candidate 
        regarding activities that have the purpose of influencing that 
        candidate's election to Federal office, where the expenditure 
        is in support of that candidate or in opposition to another 
        candidate for that office.
            ``(iii) 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.
            ``(iv) 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.
            ``(v) 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.
            ``(vi) An expenditure if the person making the expenditure 
        retains the professional services of any individual or other 
        person also providing those 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.
            ``(vii) An expenditure if the person making the expenditure 
        has consulted at any time during the same election cycle about 
        the candidate's plans, projects, or needs relating to the 
        candidate's pursuit of nomination for election, or election, to 
        Federal office, with--
                    ``(I) any officer, director, employee or agent of a 
                party committee that has made or intends to make 
                expenditures or contributions, pursuant to subsections 
                (a), (d), or (h) of section 315 in connection with the 
                candidate's campaign; or
                    ``(II) any person whose professional services have 
                been retained by a political party committee that has 
                made or intends to make expenditures or contributions 
                pursuant to subsections (a), (d), or (h) of section 315 
                in connection with the candidate's campaign.
For purposes of this subparagraph, the person making the expenditure 
shall include any officer, director, employee, or agent of such person.
    ``(18) The term `express advocacy' means, when a communication is 
taken as a whole, 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, or 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.''.
    (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 ``or'' after the semicolon 
        at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; 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 does not qualify as an independent 
        expenditure under paragraph (17)(A)(ii).''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. SENSE OF CONGRESS.

    It is the sense of Congress that each candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress should comply with the contribution limitations and the 
expenditure limitations under title V of the Federal Election Campaign 
Act of 1971.

SEC. 402. DEFINITIONS.

    Section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431) is amended by striking out paragraph (19) and inserting in lieu 
thereof the following new paragraphs:
    ``(19) The term `general election' means any election which will 
directly result in the election of a person to a Federal office, but 
does not include an open primary election.
    ``(20) The term `general election period' means, with respect to 
any candidate, the period beginning on the day after the date of the 
primary or runoff election for the specific office the candidate is 
seeking, whichever is later, and ending on the earlier of--
            ``(A) the date of such general election; or
            ``(B) the date on which the candidate withdraws from the 
        campaign or otherwise ceases actively to seek election.
    ``(21) The term `primary election' means an election which may 
result in the selection of a candidate for the ballot in a general 
election for a Federal office.
    ``(22) The term `runoff election' means an election held after a 
primary election which is prescribed by applicable State law as the 
means for deciding which candidate will be on the ballot in the general 
election for a Federal office.
    ``(23) The term `eligible House of Representatives candidate' means 
a candidate for election to the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress, who, as determined 
by the Commission agrees to comply with the requirements of title V.
    ``(24) The term `election cycle' means--
            ``(A) in the case of a candidate or the authorized 
        committees of a candidate, the term beginning on the day after 
        the date of the most recent general election for the specific 
        office or seat which such candidate seeks and ending on the 
        date of the next general election for such office or seat; or
            ``(B) for all other persons, the term beginning on the 
        first day following the date of the last general election and 
        ending on the date of the next general election.''.

                        TITLE V--EFFECTIVE DATE

SEC. 501. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by, 
and the provisions of, this Act shall take effect on the date of the 
enactment of this Act but shall not apply with respect to activities in 
connection with any election occurring before January 1, 1997.
                                 <all>
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