```

[House Report 107-131]
[From the U.S. Government Publishing Office]

107th Congress                                            Rept. 107-131
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================

 
                 BIPARTISAN CAMPAIGN REFORM ACT OF 2001

                                _______
                                

 July 10, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Ney, from the Committee on House Administration, submitted the 
                               following

                             ADVERSE REPORT

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2356]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 2356) to amend the Federal Election Campaign Act 
of 1971 to provide bipartisan campaign reform, having 
considered the same, report unfavorably thereon without 
recommendation
    The Committee on House Administration, to whom was referred 
the bill (H.R. 2356) to amend the Federal Election Campaign Act 
of 1971 to reform the financing of campaigns for elections for 
Federal office, and for other purposes, having considered the 
same, report unfavorably thereon.

                     Discussion of the Legislation

    The Committee on House Administration has unfavorably 
reported H.R. 2356, the ``Bipartisan Campaign Finance Reform 
Act''. While the bills bearing the name of our colleagues Mr. 
Shays and Mr. Meehan have changed and evolved over the years, 
the core principal underlying their legislation had always been 
their purported ``ban'' on soft money. In fact, no bill to ever 
carry the Shays-Meehan label would have really banned soft 
money, in as much as restrictions on soft money expenditures 
were never even sought (except for the constitutionally suspect 
attempt to restrict issue advertising). Rather, Shays-Meehan 
and other reform proponents always used the term ``ban'' to 
mean a prohibition on donations of soft money to political 
parties. The true test of what constituted ``real'' reform had 
always been whether or not soft money was ``banned'' as that 
term was defined by reform proponents, i.e. a simple donation 
ban. H.R. 2356 fails even this meager test. It permits 
donations of soft money, in amounts up to $10,000 per source, 
to state and local parties, and it does nothing to stop the 
flow of soft money to any organization other than a political 
party. Accordingly, H.R. 2356 fails to ban soft money under any 
definition.
    Though the recognition that political parties play an 
important role in registering voters and getting them to the 
polls, and should be able to raise non-federal funds for these 
purposes, could be regarded as a modest improvement over the 
complete assault on political parties in previous iterations of 
Shays-Meehan, the Committee still reported H.R. 2356 
unfavorably due to numerous fatal flaws. Though different in 
many respects from prior versions, the new Shays-Meehan bill 
remains an unconstitutional, ill-considered piece of 
legislation. No evidence has been produced to this Committee of 
a ``corruption'' problem stemming from soft moneycontributions 
to political parties. Even if there had been such a showing, H.R. 2356 
does not even attempt to be a narrowly tailored remedy. If it were ever 
to become law, it would have precisely the opposite effect its 
proponents intend. Rather than diminish the power of ``special 
interest'' groups, it would actually make these groups even more 
powerful than they are today. Independent advocacy groups, unions and 
corporations would see their power and influence rise, while our 
national political parties would be debilitated. The result would be 
destabilization and factionalism, neither of which is in the best 
interest of our country.
    Under H.R. 2356, for the first time, House and Senate 
candidates would be treated differently under federal election 
law, in terms of individual contribution limits. As drafted, 
H.R. 2356 would allow House candidates to raise only $1,000 per 
individual per election, while Senate candidates would be 
permitted to raise $2,000 per individual per election. There is 
no substantive policy rationale for such disparate treatment of 
candidates for the two different Houses of Congress. The 
provision is cynically included for no reason other than its 
sponsors' belief that it increases their chances of cobbling 
together a majority on the House floor. No evidence was 
provided at any point indicating that House Members are more 
likely to be corrupted by a $1001 donation then our Senate 
colleagues, yet that would be the only constitutionally 
acceptable premise for this proposed disparate treatment. It is 
understandable why our colleagues in the other body would have 
no problem with such a provision, but it is inconceivable why 
any House Member would support such an unfair and unbalanced 
provision.
    Additionally, Senate candidates receive more preferential 
treatment in the form of a ``millionaire's amendment'' that 
permits them to raise amounts five times greater than those 
permitted all other candidates, when faced with an opponent who 
spends over a certain amount of personal funds on their 
campaign. House candidates who find themselves in a race 
against a wealthy opponent receive no such relief. Again, the 
provision is included only to maximize the bill's chances for 
passage, there being no policy rationale for such disparate 
treatment.

               Constitutionally Protected Issue Advocacy

    As it has in the past, H.R. 2356 attempts to impose 
unconstitutional restrictions on protected expression. Those 
who seek to impose such restrictions argue that they are 
necessary because unions and corporations are using issue 
advertisements to influence campaigns in a manner not intended 
or permitted by the Federal Election Campaign Act.
    The bright line test between express and issue advocacy was 
laid down by the Supreme Court in Buckley v. Valeo, and it has 
been reaffirmed repeatedly by lower courts since. Numerous 
attempts by the Federal Election Commission to expand its 
regulatory reach over communications which do not expressly 
advocate the election or defeat of clearly identified federal 
candidates (the definition of issue ads) have been rejected by 
the courts.
    Those who advocate new restrictions on non-express advocacy 
communications are frustrated by these court decisions. But it 
is the First Amendment on which the Supreme Court and other 
courts rely for the proposition that express terms of advocacy 
are required for a communication to be subject to government 
regulation. Those who seek greater regulation seem to view the 
First Amendment, not as a protection to the citizens from 
government regulation of political speech, but rather as a 
``loophole'' to be closed in order to expand Congress's ability 
to regulate elections. Of course, the First Amendment, which 
begins ``Congress shall make no law * * *'' was specifically 
designed to preclude the government from restricting the speech 
of the people. Some Members of Congress may feel frustrated by 
the things being said about them, but the First Amendment 
prevents Congress and its Members from using their powers to 
restrict, regulate or punish their critics.
    It is not as if, in some shortsighted fashion, the Supreme 
Court failed to foresee the potential electoral impact of this 
kind of issue advocacy. The decision to leave such 
communications unrestricted was not an oversight that requires 
Congressional correction, rather, it was a deliberate refusal 
to permit government intrusion on protected expression. As the 
Court said:

          Discussion of public issues and debate on the 
        qualifications of candidates are integral to the 
        operation of the system of government established by 
        our Constitution. The First Amendment affords the 
        broadest protection to such political expression in 
        order ``to assure [the] unfettered interchange of ideas 
        for the bringing about of political and social changes 
        desired by the people.'' Buckley v. Valeo, 424 U.S. 1, 
        14 (1976).

    The attempt by H.R. 2356 to restrict issue advocacy is an 
unconstitutional overreach and would likely be struck down by 
the Court. As this is the only provision in the bill which 
attempts to restrict how unions, corporations, and advocacy 
groups spend their organizations' treasury funds, as opposed to 
donating them, the result will be a political world where 
``special interest'' groups have absolutely unfettered ability 
to spend soft dollars, while the political parties, forbidden 
from receiving such funds, will not be able to spend any. 
Clearly, H.R. 2356 is not a bill that will minimize the 
influence of ``special interests'' as such interests are often 
referenced by the advocates of H.R. 2356.
    In addition, H.R. 2356 is not narrowly tailored to address 
a particular or compelling governmental interest. In fact, 
disclosure of the identity of sponsors of communications is the 
only interest identified by the advocates of H.R. 2356 to 
justify government regulation of speech which the Supreme Court 
has previously ruled is not subject to government regulation. 
If indeed disclosure is the compelling governmental interest, 
the provisions of H.R. 2356 extend far beyond the degree of 
regulation necessary to achieve the goal. In fact, H.R. 2356 
has the ultimate effect of chilling and even precluding certain 
communications by creating an expansive regulatory system which 
dictates not only disclosure but also the permissible sources 
of funding, the timing and content of speech otherwise 
protected by the First Amendment.

                              Coordination

    The expansive definition of behaviors that constitute 
coordination between citizens, citizens groups and candidates 
for public office would discourage (if not eliminate) 
communications between citizens and their elected 
representatives. Under H.R. 2356, any payment made pursuant to 
a ``general or particular understanding'' with an elected 
official would be treated as a contribution and therefore 
severely limited. Further, such ``coordination'' does not even 
require ``collaboration or agreement'' to establish 
coordination. With such a vague and sweeping definition, a 
simple meeting between an individual and his/her Member of 
Congress could trigger an FEC investigation into the subject of 
the meeting and the issues discussed. As Lawrence Gold, 
Associate General Counsel for the AFL-CIO testified; ``In its 
investigation into alleged coordination, the [FEC] has used its 
subpoena power to seek to identify, and inquire intothe details 
of virtually every contact between a corporation or union, acting 
through it officers, directors, members and allies, and a candidate, 
political party, or anyone else who might be acting on the candidate's 
behalf.''
    Unquestionably, this will have a chilling effect on the 
rights of citizens and citizen groups to speak and associate 
freely. This provision is in direct conflict with one of the 
stated goals of the proponents, i.e. that reform will make 
citizens more willing to become involved in politics. Clearly 
the opposite is true. People who know that a simple meeting 
with a Congressman could trigger a costly and burdensome 
investigation will simply disassociate themselves from 
politics.
    The First Amendment not only protects political speech but 
also the right of the citizens to petition their government for 
redress of grievances. H.R. 2356 ignores this protected right 
afforded the people by the First Amendment and would convert 
such activities to potentially incriminating evidence of 
illegal political campaign activity through ``coordination''.
    The definition of ``coordination'' is largely left to the 
Federal Election Commission, other than directing the 
Commission to define ``coordination'' expansively and with 
utter disregard for the applicable decisions of the Supreme 
Court and other federal courts over the past twenty-five years. 
Such important definitions should not and cannot be delegated 
by the Congress with nothing more than a list of the factors 
the Federal Election Commission should consider, with no 
legislative guidance as to the decision the Commission is to 
make with respect to each of the factors. H.R. 2356 also 
repeals the regulations adopted by the Federal Election 
Commission on the subject of ``coordination'' which resulted 
from a decision of the federal district court in FEC v. 
Christian Coalition. In other words, H.R. 2356 specifically 
directs the federal agency charged with enforcing the law to 
promulgate regulations on a subject in direct contravention of 
an order of the federal court to that agency. Such disregard of 
the law is not appropriate by either the agency or the 
Congress.

                       Summary of the Legislation

                     SECTION-BY-SECTION DESCRIPTION

            TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

Sec. 101. Soft money of political parties

     Prohibits national party committees (including an 
officer or agent acting on their behalf and entities they 
directly or indirectly establish, finance, maintain, or 
control) from soliciting, receiving, directing, transferring, 
or spending money that is not regulated by federal election law 
(soft money).
     In general, prohibits soft money spending for a 
federal election activity by state and local party committees 
(including an officer or agent acting on their behalf and 
entities they directly or indirectly establish, finance, 
maintain, or control) or by a group of state or local 
candidates or officials.
     Allows state and local parties to use some funds 
raised in accord with state law (soft money) for voter 
registration drives in the last 120 days of a federal election, 
voter identification efforts, get-out-the-vote drives (GOTV), 
and generic activities, if they: match soft money equally with 
hard money (i.e., a 50-50 allocation formula); do not refer to 
a clearly identified federal candidate; do not pay for 
broadcast, cable, or satellite communications (unless they 
refer solely to state and local candidates); receive no 
donations from any person (including an entity established, 
financed, maintained, or controlled by that person) in amounts 
greater than $10,000 a year for such activities; and use only 
funds raised by the state, district, or local party expressly 
for such purposes and include no funds transferred from other 
party committees (and agents or officers acting on their behalf 
or entities they directly or indirectly establish, finance, 
maintain, or control). Prohibits any funds for special soft 
money accounts from being solicited, received, directed, 
transferred, or spent in the name of national parties or 
federal candidates or officials or by joint fundraising 
activities by two or more party committees.
     Defines federal election activity to include: (1) 
voter registration drives in the last 120 days of a federal 
election; (2) voter identification, GOTV, and generic activity 
in connection with an election in which a federal candidate is 
on the ballot; (3) public communications that refer to a 
clearly identified federal candidate and promote, support, 
attack, or oppose a candidate for that office (regardless of 
whether it expressly advocates a vote for or against); or (4) 
services by a state or local party employee who spends at least 
25% of paid time in a month on activities in connection with a 
federal election.
     Defines generic campaign activity as one that 
promotes a party but not a federal or non-federal candidate.
     Defines public communications as communications by 
broadcast, cable, satellite, newspaper, magazine, outdoor 
advertising, mass mailing (over 500 identical or substantially 
similar pieces mailed within 30 days of each other), or phone 
bank (over 500 identical or substantially similar calls made 
within 30 days of each other).
     Allows state parties to spend soft money on 
activities exclusively devoted to non-federal elections.
     Prohibits party committees from using soft money 
to raise funds for use at least in part on federal election 
activities.
     Prohibits party committees (and officers or agents 
acting in their behalf and entities they directly or indirectly 
establish, finance, maintain, or control) from raising money 
for, or giving to, Internal Revenue Code Sec. 501(c) or 
Sec. 527 tax-exempt organizations (other than political 
committees as defined by federal election law).
     Prohibits federal candidates, officeholders, 
agents, or entities they directly or indirectly establish, 
maintain, finance, or control from raising soft money in 
connection with a federal election (including any federal 
election activity) or any money from sources beyond federal 
limits and prohibitions in non-federal elections (unless 
candidate or official is also a state or local candidate, 
raising funds for that campaign).
     Allows federal candidates and officials to raise 
money for tax-exempt organizations engaged primarily in voter 
registration and GOTV, subject to a limit of $10,000 per donor 
(i.e., limit on individual contributions to state party 
committee under this bill).
     Does not restrict ability of federal candidates 
and officials to raise money to influence state reapportionment 
decisions.

Sec. 102. Increased contribution limits for state committees of 
        political parties and aggregate contribution limit for 
        individuals

     Raises limit on individual contributions to a 
state party committee to $10,000 per year.
     Raises aggregate individual limit to $30,000 per 
year (*superceded by $37,500 limit in sec. 308).

Sec. 103. Reporting requirements

     Codifies FEC regulations on disclosure of all 
national party activity-federal and non-federal.
     Requires disclosure by state and local parties of 
spending on federal election activities, including any soft 
money permitted to be used for such activities.
     Ends building fund exemption.

              TITLE II--NONCANDIDATE CAMPAIGN EXPENDITURES

               Subtitle A--Electioneering Communications

Sec. 201. Disclosure of electioneering communications

     Requires disclosure of electioneering 
communications by any spender exceeding an aggregate of $10,000 
per year in such disbursements (including contracts to 
disburse), within 24 hours of the first and each subsequent 
$10,000 disbursement.
     Requires disclosure to include: identification of 
spender, custodian of books, and any entity exercising control 
over activity; principal place of business (if not an 
individual); amount of disbursements of over $200 and 
identification of recipient; identification of donors of $1,000 
or more (either to a separate segregated fund devoted 
exclusively to such activities or, if none, to organization 
itself); and notation as to election and candidates to which 
communications pertain.
     Defines electioneering communication as a 
broadcast, cable, or satellite advertisement that refers to a 
clearly identified federal candidate, made within 60 days of a 
general election or 30 days of a primary, and, if not for 
President or Vice President, is targeted to relevant electorate 
(i.e., communication is received by 50,000 or more persons in 
state, for Senate elections, or district, for House elections); 
exempts news events, expenditures, independent expenditures, 
debates, and others who may be exempted by FEC.
     If definition of electioneering communication is 
ruled unconstitutional, provides alternate definition (based on 
1987 9th Circuit ruling in FEC v. Furgatch): a broadcast, 
cable, or satellite communication that promotes, supports, 
attacks, oropposes a candidate, regardless of whether it 
expressly advocates a vote for or against a candidate, and is 
suggestive of no plausible meaning other than an exhortation to vote 
for or against a candidate); nothing in provision alters 11 CFR 
100.22(b), FEC regulation defining express advocacy.

Sec. 202. Coordinated communications as contributions

     Treats an electioneering communication that is 
coordinated with a candidate, agent, or party as a contribution 
to and expenditure by candidate or party.

Sec. 203. Prohibition of corporate and labor disbursements for 
        electioneering communications

     Bans funding of electioneering communications with 
funds from union or certain corporate funds; but exempts 
Internal Revenue Code Sec. 501(c)(4) or Sec. 527 tax-exempt 
corporations making electioneering communications with funds 
solely donated by individuals who are citizens or permanent 
resident aliens.

Sec. 204. Rules relating to certain targeted electioneering 
        communications

     Removes exemption for Sec. 501(c)(4) or Sec. 527 
tax-exempt corporations making targeted electioneering 
communications.

          Subtitle B--Independent and Coordinated Expenditures

Sec. 211. Definition of independent expenditure

     Defines independent expenditure as an expenditure 
by a person expressly advocating the election or defeat of a 
clearly identified candidate, and that is not made in concert 
or cooperation with, at request or suggestion of, or pursuant 
to any particular or general understanding with candidate, 
party, or agent.

Sec. 212. Reporting requirements for certain independent expenditures

     Requires a 48 hour notice of independent 
expenditures of $10,000 or more, up to 20 days before an 
election (and 24 hour notice of expenditures above $1,000 in 
last 20 days, same as currently).

Sec. 213. Independent versus coordinated expenditures by party

     Prohibits parties from making both independent and 
coordinated expenditures for a general election candidate.

Sec. 214. Coordination with candidates or political parties

     Includes in definition of contribution any 
coordinated expenditure or other disbursement made in 
connection with candidate's campaign, and expenditures or 
disbursements made in coordination with party, regardless of 
whether communication contains express advocacy.
     Treats an electioneering communication that is 
coordinated with a candidate, agent, or party as a contribution 
to and expenditure by candidate or party.
     Defines coordinated expenditure or other 
disbursement as a payment made in concert or cooperation with, 
at request or suggestion of, or pursuant to any particular or 
general understanding with candidate or party.
     Repeals new FEC rules, and directs FEC to 
promulgate new regulations within 90 days of enactment on 
coordination; specifies new rules will not require explicit 
collaboration or agreement to establish coordination; specifies 
rules will address issues of: republication of campaign 
material, common vendors, prior employment status, and 
substantial discussion with candidate or party.

                        TITLE III--MISCELLANEOUS

Sec. 301. Use of contributed amounts for certain purposes

     Codifies FEC regulations on permissible uses for 
campaign funds.
     Retains ban on personal use.

Sec. 302. Prohibition of fundraising on federal property

     Bans solicitation or receipt of contributions, 
including soft money, by federal officials and from anyone, who 
is located in any federal government building used to discharge 
official duties.

Sec. 303. Strengthening foreign money ban

     Bans direct or indirect contributions from foreign 
nationals (including soft money), or their solicitation or 
receipt, or any promise to make such donations, in connection 
with any U.S. election, to any party committee, or for any 
expenditure, independent expenditure, or electioneering 
communication (retains permanent resident alien exemption).

Sec. 304. Modification of individual contribution limits in response to 
        expenditures from personal funds

     In Senate elections: raises limits on individual 
and party support for a Senate candidate whose opponent exceeds 
designated level of spending from personal funds (as defined) 
in campaign; creates threshold of $150,000 + 4  cents times 
number of eligible voters in state; if opposition personal 
funds amount (personal spending of candidate minus that of 
opponent) exceeds threshold amount: (a) by 2-4 times, then 
limit on individual contributions to opponent is tripled; (b) 
by 4-10 times, then limit on individual contributions to 
opponent is raised 6-fold; and (c) by 10 times, then limit on 
individual contributions to opponent is raised 6-fold and limit 
on party coordinated expenditures for opponent is removed; 
aggregate individual limit would be raised to extent of 
increased contribution limits; limits would be raised only to 
extent of 110% of total opposition personal funds amount.
     In all elections: limits repayment of candidate 
loans to $250,000, from amounts contributed after election.

Sec. 305. Television media rates

     Changes basis for lowest unit rate for TV, cable, 
and satellite broadcast time (applicable in last 45 days of a 
primary and 60 days of a general election) to comparison with 
the same amount of time for the same period during prior 180 
days.
     Requires such rates to be available to national 
parties buying time for ``coordinated expenditures'' on behalf 
of their candidates.
     Makes lowest unit rate time on broadcast TV, 
cable, or satellite non-preemptible, unless for circumstances 
beyond broadcaster's control.
     Provides for random audits by FCC to ensure 
compliance by broadcasters.

Sec. 306. Limitation on availability of lowest unit charge for federal 
        candidates attacking opposition

     Requires federal candidate broadcast ads sold at 
lowest unit rate and that include direct reference to opponents 
to include candidate photo or image on TV and a statement of 
candidate approval (printed on TV and spoken by candidate on 
radio).

Sec. 307. Software for filing reports and prompt disclosure of 
        contributions

     Requires FEC to promulgate standards for and to 
provide standardized software for filing reports 
electronically; requires candidates' use of such software; and 
requires FEC to post information received electronically on 
Internet as soon as practicable.

Sec. 308. Modification of contribution limits

     In Presidential and Senate elections: raises limit 
on individual contributions to candidates to $2,000 per 
candidate, per election (in House elections: retains $1,000 
limit).
     Raises limit on individual contributions to 
national party committees to $25,000 per year.
     Raises aggregate individual limit on all 
contributions to federal candidates, PACs, and parties to 
$37,500 per year (*superceding $30,000 limit in sec. 102).
     Raises special limit on combined contributions to 
Senate candidates by national and senatorial party committees 
to $35,000 in year of election.
     Provides for indexing for inflation of limits on 
individual contributions to candidates and national parties, on 
aggregate annual individual contributions, and on party 
contributions to Senate candidates, in odd-numbered years 
beginning in 2003, with 2001 as the base year and all amounts 
rounded to the nearest $100.

Sec. 309. Donations to presidential inaugural committee

     Requires disclosure to FEC of donations of over 
$200 to presidential inaugural committees within 90 days of 
event.
     Bans foreign national donations to inaugural 
committees.

Sec. 310. Prohibition on fraudulent solicitation of funds

     Prohibits fraudulent misrepresentation in the 
solicitation of campaign funds.

Sec. 311. Study and report on clean money, clean elections laws

     Directs GAO to study and report to Congress 
statistics for and effects of public funding systems in Arizona 
and Maine.

Sec. 312. Clarity standards for identification of sponsors of election-
        related advertising

     Requires sponsorship identification on all 
election-related advertising (including electioneering 
communications) by political committees and enhanced visibility 
of such identification in the communication.

Sec. 313. Increase in penalties

     Increases criminal penalties for knowing and 
willful violations involving contributions, expenditures, or 
donations in amounts aggregating from $2,000 to $25,000 in a 
year: a fine under Title 18 or up to one year in prison, or 
both.
     Increases criminal penalties for knowing and 
willful violations involving amounts aggregating $25,000 or 
more: a fine under Title 18 or up to five years in prison, or 
both.

Sec. 314. Statute of limitations

     Changes statute of limitations for criminal 
violations of federal election law, from three to five years.

Sec. 315. Sentencing guidelines

     Directs U.S. Sentencing Commission to promulgate 
guidelines and make legislative or administrative 
recommendations regarding penalties for violating federal 
election law, per specified considerations.

Sec. 316. Increase in penalties imposed for violations of conduit 
        contribution ban

     Imposes specific penalties for knowing and willful 
violations of ban on contributions made in the name of another: 
(a) in civil cases: between 300% of violation amount and the 
greater of $50,000 or 1000% of violation amount; and (b) in 
criminal cases: two years in prison for up to $25,000 violation 
amount, or fine of between 300% of violation amount and the 
greater of $50,000 or 1000% of violation amount, or prison and 
fine.

Sec. 317. Restriction on increased contribution limits by taking into 
        account candidate's available funds

     In Senate elections: in calculating opposition 
personal funds amount, considers candidate warchests, by 
including gross receipts advantage of candidate opposed by 
wealthy candidate (i.e., 50% of gross receipts of candidate 
minus 50% of gross receipts of wealthy opponent, as of June 30 
and Dec. 31 of year before election).

Sec. 318. Clarification of right of nationals of the United States to 
        make political contributions

     Clarifies that ban on contributions and donations 
from foreign nationals does not include U.S. nationals.

Sec. 319. Prohibition of contribution by minors

     Prohibits contributions to candidates and 
donations to party committees by individuals 17 years of age 
and younger.

Sec. 320. Definition of contributions made through intermediary or 
        conduit for purposes of applying contribution limits

     Considers contributions solicited by a candidate 
to support his or her election and arranged or suggested to be 
spent by or through an intermediary or conduit to assist that 
candidate's election as a contribution to the candidate.

Sec. 321. Prohibiting authorized committees from forming joint 
        fundraising committees with political party committees

     Prohibits federal candidates' authorized 
committees from forming joint fundraising committees with any 
party committee.

Sec. 322. Regulations to prohibit efforts to evade requirements

     Requires FEC to promulgate regulations to prohibit 
efforts to evade or circumvent limitations, prohibitions, and 
reporting requirements of federal election law.

                 TITLE IV--SEVERABILITY; EFFECTIVE DATE

Sec. 401. Severability

     If any provision of the Act or its amendments, or 
its application to any person or circumstance, is held 
unconstitutional, the remainder of the Act and its amendments, 
and its application to any person or circumstance, shall not be 
affected by the holding.

Sec. 402. Effective date

     Generally, within 30 days of enactment.
     Provides transition rules for spending of soft 
money by national parties: (a) allows parties to spend without 
restriction soft money raised between effective date and 90 
days thereafter; (b) until March 31, 2002, national parties may 
transfer soft money funds to state or local parties or to 
Sec. 501(c) or Sec. 527 tax-exempt organizations; and (c) at 
any time after the effective date, national parties may use 
such funds to defray costs of construction or purchase of a 
party office building or facility.

Sec. 403. Judicial review

     Provides for expedited review to the U.S. District 
Court for D.C. (and exclusive venue) for declaratory judgment 
and injunctive relief on constitutional grounds; provides 
direct appeal to the U.S. Supreme Court from any final order or 
judgment; and provides for expedited consideration by both 
courts.
     Provides that if any person aggrieved by the 
statute brings an action for declaratory or injunctive relief, 
which challenges the constitutionality and names the U.S. as 
defendant, within 90 days of enactment: (a) action shall be 
heard by three-judge court in the U.S. District Court for D.C.; 
(b) copy of complaint shall be delivered promptly to Clerk of 
the House and Secretary of the Senate; (c) a final decision 
shall be reviewable only by direct appeal to U.S. Supreme 
Court; and (d) expedited consideration shall be provided by 
both courts.
     Further provides that in any action challenging 
the constitutionality, any Member of the House or Senate shall 
have the right to intervene.

               TITLE V--ADDITIONAL DISCLOSURE PROVISIONS

Sec. 501. Internet access to records

     Requires all reports filed with FEC to be posted 
on Internet and available for inspection within 48 hours, or 24 
hours if filed electronically.

Sec. 502. Maintenance of website of election reports

     Requires FEC to maintain central web site of all 
publicly available election-related reports

Sec. 503. Additional monthly and quarterly disclosure reports

     Requires candidates to file monthly reports in 
election years and quarterly reports in non-election years
     Requires national party committees to file monthly 
reports in all years

Sec. 504. Public access to broadcasting records

     Requires broadcasters to maintain and make 
available for public inspection: records of broadcast time 
requests by candidates or by other entities whose message 
relates to political matters of national importance, including 
messages about a legally qualified candidate, a federal 
election, or a legislative issue of public importance
     Requires records to include: whether request was 
accepted; rate charged; date and time message aired; class of 
time purchased; identification of candidate and office, 
election, or issue referred to; and identity of purchaser, 
including officers of any non-candidate entity

               Committee Consideration of the Legislation

                       INTRODUCTION AND REFFERAL

    On January 31, 2001, Mr. Shays introduced H.R. 380, which 
was referred to the Committee on House Administration, and in 
addition to the Committees on Education and the Workforce, 
Government Reform, the Judiciary, Ways and Means, and Rules, 
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.
    On May 22, 2001, the House received S. 27, a bill 
introduced by Senator McCain and Senator Feingold that had been 
adopted by the Senate, and was referred to the Committee on 
House Administration, and in addition to the Committees on 
Energy and Commerce, and the Judiciary, 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.
    On June 28, 2001, Mr. Shays and Mr. Meehan introduced H.R. 
2356, which was referred to the Committee on House 
Administration, and in addition to the Committees on Energy and 
Commerce, and the Judiciary, 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.

                                HEARINGS

    The Committee on House Administration held five hearings on 
campaign finance reform over four months in 2001.
    On March 17, 2001, the Committee held the first hearing on 
Campaign Finance Reform. This hearing was a field hearing, held 
in Phoenix, Arizona. Members present: Mr. Ney, Mr. Ehlers, Mr. 
Mica, Mr. Linder, Mr. Doolittle. Witnesses: Eleanor Eisenberg, 
Executive Director, Arizona Civil Liberties Union; Lynn Wardle, 
Professor, J. Reuben Clarke Law School, Brigham Young 
University; Ann Eschinger, President, Arizona League of Women 
Voters; Landis Aiden, Citizen Activist; Senator Scott 
Bundgaard, Arizona State Legislature; Dennis Burke, Executive 
Director, Arizona Good Government Association; Joseph F. Yuhas, 
Executive Director, Arizona Restaurant Association; Lee Ann 
Elliott, Former Chairperson of the Federal Election Commission.
    On May 1, 2001, the Committee held its second hearing on 
Campaign Finance Reform. Members present: Mr. Ney, Mr. Ehlers, 
Mr. Linder, Mr. Hoyer, Mr. Fattah, Mr. Davis Witnesses: Mr. 
Gephardt, Mr. DeLay, Mr. Shays, Mr. Meehan, Senator Hagel, 
Senator McConnell, Senator Feingold.
    On June 14, 2001, the Committee held its third hearing on 
Campaign Finance Reform. Members present were: Mr. Ney, Mr. 
Mica, Mr. Linder, Mr. Reynolds, Mr. Hoyer and Mr. Davis. 
Witnesses: James Bopp, Jr., Bopp, James Madison Center for Free 
Speech; Cleta Mitchell, Foley & Lardner; Joel M. Gora, 
Professor, Brooklyn Law School, former Associate Legal 
Director, American Civil Liberties Union; Laurence Gold, 
Associate General Counsel, AFL-CIO; E. Joshua Rosenkranz, 
President & CEO, Brennan Center for Justice; Donald J. Simon, 
General Counsel, Common Cause.
    On June 21, 2001, the Committee held its fourth hearing on 
Campaign Finance Reform. Members present: Mr. Ney, Mr. Ehlers, 
Mr. Linder and Mr. Hoyer. Witnesses: Mr. Hutchinson testified 
on H.R. 1150, Mr. Wynn, Mr. Price (NC) testified on H.R. 156, 
Mr. Terry testified on H.R. 1039, Ms. Mink testified on H.R. 
289, Mr. Linder testified on H.R. 1080, Mr. Moore testified on 
H.R. 365, Mr. Doolittle testified on H.R. 1444, Mr. Tierney 
testified on H.R. 1637, Mr. Faleomavaega testified on H.R. 
1447. Mr Linder introduced the written testimony of Phil Kent, 
President, Southeastern Legal Foundation.
    On June 28, 2001, the Committee held its fifth hearing on 
Campaign Finance reform. Members present: Mr. Ney, Mr. Ehlers, 
Mr. Mica, Mr. Linder, Mr. Doolittle, Mr. Reynolds, Mr. Hoyer, 
Mr. Fattah, Mr. Davis. Witnesses: Mr. Petri testified on H.R. 
150 and H.R. 151, Mr. Bereuter testified on H.R. 35, Mr. Shaw 
testified on H.R. 1516, Mr. English testified on H.R. 1445, Mr. 
Calvert testified on H.R. 2122, Mr. Barr and Mr. Gonzalez.

                                 MARKUP

    On Thursday, June 28, 2001, the Committee met to mark up 
H.R. 2360 and H.R. 2356. The Committee unfavorably reported 
H.R. 2356 by recorded vote (5-3) a quorum being present. No 
amendments were offered to H.R. 2356.

             Matters Required Under the Rules of the House

                         COMMITTEE RECORD VOTES

    Clause 3(b) of House rule XII requires the results of each 
record vote on an amendment or motion to report, together with 
the names of those voting for and against, to be printed in the 
committee report. The only recorded vote requested during 
consideration of H.R. 2356 occurred on the vote to report the 
bill unfavorably to the House.

------------------------------------------------------------------------
                 Member                     Yes         No      Present
------------------------------------------------------------------------
Mr. Ney................................         X   .........  .........
Mr. Ehlers.............................         X   .........  .........
Mr. Mica...............................         X   .........  .........
Mr. Linder.............................         X   .........  .........
Mr. Doolittle..........................         X   .........  .........
Mr. Reynolds...........................         X   .........  .........
Mr. Hoyer..............................  .........         X   .........
Mr. Fattah.............................  .........         X   .........
Mr. Davis..............................  .........         X   .........
                                        --------------------------------
      Total............................         5          3   .........
------------------------------------------------------------------------

                      COMMITTEE OVERSIGHT FINDINGS

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

        OVERSIGHT FINDINGS OF COMMITTEE ON HOUSE ADMINISTRATION

    The Committee states, with respect to clause 3(c)(4) of 
rule XII of the Rules of the House of Representatives, that the 
Committee on Government Reform and Oversight did not submit 
findings or recommendations based on investigations under 
clause 4(c)(2) of rule X of the Rules of the House of 
Representatives.

                        CONSTITUTIONAL AUTHORITY

    In compliance with clause 3(d)(1) of rule XIII, the 
Committee states that Article 1, Section 4 of the U.S. 
Constitution grants Congress the authority to make laws 
governing the time, place and manner of holding Federal 
elections.

                            FEDERAL MANDATES

    The Committee states, with respect to section 423 of the 
Congressional Budget Act of 1974, that the bill does not 
include any significant Federal mandate.

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 2360 is not 
intended to preempt any state or local law.

                        COMMITTEE COST ESTIMATE

    Clause 3(c)(2) of rule XII requires each committee report 
that accompanies a measure providing new budget authority, new 
spending authority, or changing revenues or tax expenditures to 
contain a cost estimate, as required by section 308(a)(1) of 
the Congressional Budget Act of 1974, as amended and, when 
practicable with respect to estimates of new budget authority, 
a comparison of the total estimated funding level for the 
relevant program (or programs) to the appropriate levels under 
current law.
    Clause 3(d)(2) of rule XIII requires committees to include 
their own cost estimates in certain committee reports, which 
include, when practicable, a comparison of the total estimated 
funding level for the relevant program (or programs) with the 
appropriate levels under current law.
    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional adopts as its own the cost 
estimate prepared by the Director of the Congressional Budget 
Office, pursuant to section 403 of the Congressional Budget Act 
of 1974.
    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974:

             (CBO ESTIMATE NOT AVAILABLE AT TIME OF FILING)

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                 FEDERAL ELECTION CAMPAIGN ACT OF 1971

           *       *       *       *       *       *       *

            TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS

                              definitions

  Sec. 301. When used in this Act:
  (1) * * *

           *       *       *       *       *       *       *

  (8)(A) The term ``contribution'' includes--
          (i) any gift, subscription, loan, advance, or deposit 
        of money or anything of value made by any person for 
        the purpose of influencing any election for Federal 
        office; [or]
          (ii) the payment by any person of compensation for 
        the personal services of another person which are 
        rendered to a political committee without charge for 
        any [purpose.] purpose;
          (iii) any coordinated expenditure or other 
        disbursement made by any person in connection with a 
        candidate's election, regardless of whether the 
        expenditure or disbursement is for a communication that 
        contains express advocacy; or
          (iv) any coordinated expenditure or other 
        disbursement made in coordination with a national 
        committee, State committee, or other political 
        committee of a political party by a person (other than 
        a candidate or a candidate's authorized committee) in 
        connection with an election, regardless of whether the 
        expenditure or disbursement is for a communication that 
        contains express advocacy.
  (B) The term ``contribution'' does not include--
          (i) * * *

           *       *       *       *       *       *       *

          [(viii) any gift, subscription, loan, advance, or 
        deposit of money or anything of value to a national or 
        a State committee of a political party specifically 
        designated to defray any cost for construction or 
        purchase of any office facility not acquired for the 
        purpose of influencing the election of any candidate in 
        any particular election for Federal office;]
          [(ix)] (viii) any legal or accounting services 
        rendered to or on behalf of--
                  (I) * * *

           *       *       *       *       *       *       *

          [(x)] (ix) the payment by a State or local committee 
        of a political party of the costs of campaign materials 
        (such as pins, bumper stickers, handbills, brochures, 
        posters, party tabloids, and yard signs) used by such 
        committee in connection with volunteer activities on 
        behalf of nominees of such party: Provided, That--
                  (1) * * *

           *       *       *       *       *       *       *

          [(xi)] (x) the payment by a candidate, for nomination 
        or election to any public office (including State or 
        local office), or authorized committee of a candidate, 
        of the costs of campaign materials which include 
        information on or reference to any other candidate and 
        which are used in connection with volunteer activities 
        (including pins, bumper stickers, handbills, brochures, 
        posters, and yard signs, but not including the use of 
        broadcasting, newspapers, magazines, billboards, direct 
        mail, or similar types of general public communication 
        or political advertising): Provided, That such payments 
        are made from contributions subject to the limitations 
        and prohibitions of this Act;
          [(xii)] (xi) the payment by a State or local 
        committee of a political party of the costs of voter 
        registration and get-out-the-vote activities conducted 
        by such committee on behalf of nominees of such party 
        for President and Vice President: Provided, That--
                  (1) * * *

           *       *       *       *       *       *       *

          [(xiii)] (xii) payments made by a candidate or the 
        authorized committee of a candidate as a condition of 
        ballot access and payments received by any political 
        party committee as a condition of ballot access;
          [(xiv)] (xiii) any honorarium (within the meaning of 
        section 323 of this Act); and
          [(xv)] (xiv) any loan of money derived from an 
        advance on a candidate's brokerage account, credit 
        card, home equity line of credit, or other line of 
        credit available to the candidate, if such loan is made 
        in accordance with applicable law and under 
        commercially reasonable terms and if the person making 
        such loan makes loans derived from an advance on the 
        candidate's brokerage account, credit card, home equity 
        line of credit, or other line of credit in the normal 
        course of the person's business.
  (C) For purposes of subparagraph (A)(iii) and (iv), the term 
``coordinated expenditure or other disbursement'' means a 
payment made in concert or cooperation with, at the request or 
suggestion of, or pursuant to any general or particular 
understanding with, such candidate, the candidate's authorized 
political committee, or their agents, or a political party 
committee or its agents.

           *       *       *       *       *       *       *

  [(17) The term ``independent expenditure'' means an 
expenditure by a person expressly advocating the election or 
defeat of a clearly identified candidate which is made without 
cooperation or consultation with any candidate, or any 
authorized committee or agent of such candidate, and which is 
not made in concert with, or at the request or suggestion of, 
any candidate, or any authorized committee or agent of such 
candidate.]
          (17) Independent expenditure.--The term ``independent 
        expenditure'' means an expenditure by a person--
                  (A) expressly advocating the election or 
                defeat of a clearly identified candidate; and
                  (B) that is not made in concert or 
                cooperation with, at the request or suggestion 
                of, or pursuant to any general or particular 
                understanding with, such candidate, the 
                candidate's authorized political committee, or 
                their agents, or a political party committee or 
                its agents.

           *       *       *       *       *       *       *

          (20) Federal election activity.--
                  (A) In general.--The term ``Federal election 
                activity'' means--
                          (i) voter registration activity 
                        during the period that begins on the 
                        date that is 120 days before the date a 
                        regularly scheduled Federal election is 
                        held and ends on the date of the 
                        election;
                          (ii) voter identification, get-out-
                        the-vote activity, or generic campaign 
                        activity conducted in connection with 
                        an election in which a candidate for 
                        Federal office appears on the ballot 
                        (regardless of whether a candidate for 
                        State or local office also appears on 
                        the ballot);
                          (iii) a public communication that 
                        refers to a clearly identified 
                        candidate for Federal office 
                        (regardless of whether a candidate for 
                        State or local office is also mentioned 
                        or identified) and that promotes or 
                        supports a candidate for that office, 
                        or attacks or opposes a candidate for 
                        that office (regardless of whether the 
                        communication expressly advocates a 
                        vote for or against a candidate); or
                          (iv) services provided during any 
                        month by an employee of a State, 
                        district, or local committee of a 
                        political party who spends more than 25 
                        percent of that individual's 
                        compensated time during that month on 
                        activities in connection with a Federal 
                        election.
                  (B) Excluded activity.--The term ``Federal 
                election activity'' does not include an amount 
                expended or disbursed by a State, district, or 
                local committee of a political party for--
                          (i) a public communication that 
                        refers solely to a clearly identified 
                        candidate for State or local office, if 
                        the communication is not a Federal 
                        election activity described in 
                        subparagraph (A)(i) or (ii);
                          (ii) a contribution to a candidate 
                        for State or local office, provided the 
                        contribution is not designated or used 
                        to pay for a Federal election activity 
                        described in subparagraph (A);
                          (iii) the costs of a State, district, 
                        or local political convention;
                          (iv) the costs of grassroots campaign 
                        materials, including buttons, bumper 
                        stickers, and yard signs, that name or 
                        depict only a candidate for State or 
                        local office; and
                          (v) the cost of constructing or 
                        purchasing an office facility or 
                        equipment for a State, district, or 
                        local committee.
          (21) Generic campaign activity.--The term ``generic 
        campaign activity'' means a campaign activity that 
        promotes a political party and does not promote a 
        candidate or non-Federal candidate.
          (22) Public communication.--The term ``public 
        communication'' means a communication by means of any 
        broadcast, cable, or satellite communication, 
        newspaper, magazine, outdoor advertising facility, mass 
        mailing, or telephone bank to the general public, or 
        any other form of general public political advertising.
          (23) Mass mailing.--The term ``mass mailing'' means a 
        mailing by United States mail or facsimile of more than 
        500 pieces of mail matter of an identical or 
        substantially similar nature within any 30-day period.
          (24) Telephone bank.--The term ``telephone bank'' 
        means more than 500 telephone calls of an identical or 
        substantially similar nature within any 30-day period.
          (25) Election cycle.--The term ``election cycle'' 
        means the period beginning on the day after the date of 
        the most recent election for the specific office or 
        seat that a candidate is seeking and ending on the date 
        of the next election for that office or seat. For 
        purposes of the preceding sentence, a primary election 
        and a general election shall be considered to be 
        separate elections.
          (26) Personal funds.--The term ``personal funds'' 
        means an amount that is derived from--
                  (A) any asset that, under applicable State 
                law, at the time the individual became a 
                candidate, the candidate had legal right of 
                access to or control over, and with respect to 
                which the candidate had--
                          (i) legal and rightful title; or
                          (ii) an equitable interest;
                  (B) income received during the current 
                election cycle of the candidate, including--
                          (i) a salary and other earned income 
                        from bona fide employment;
                          (ii) dividends and proceeds from the 
                        sale of the candidate's stocks or other 
                        investments;
                          (iii) bequests to the candidate;
                          (iv) income from trusts established 
                        before the beginning of the election 
                        cycle;
                          (v) income from trusts established by 
                        bequest after the beginning of the 
                        election cycle of which the candidate 
                        is the beneficiary;
                          (vi) gifts of a personal nature that 
                        had been customarily received by the 
                        candidate prior to the beginning of the 
                        election cycle; and
                          (vii) proceeds from lotteries and 
                        similar legal games of chance; and
                  (C) a portion of assets that are jointly 
                owned by the candidate and the candidate's 
                spouse equal to the candidate's share of the 
                asset under the instrument of conveyance or 
                ownership, but if no specific share is 
                indicated by an instrument of conveyance or 
                ownership, the value of \1/2\ of the property.

                  organization of political committees

  Sec. 302. (a) * * *

           *       *       *       *       *       *       *

  (e)(1) * * *

           *       *       *       *       *       *       *

  (6) No authorized committee of a candidate for Federal office 
may form a joint fundraising committee with any political 
committee of a political party.

           *       *       *       *       *       *       *

                                reports

  Sec. 304. (a)(1) * * *
  (2) If the political committee is the principal campaign 
committee of a candidate for the House of Representatives or 
for the Senate--
          (A) in any calendar year during which there is 
        regularly scheduled election for which such candidate 
        is seeking election, or nomination for election, the 
        treasurer shall file the following reports:
                  (i) * * *

           *       *       *       *       *       *       *

                  [(iii) additional quarterly reports, which 
                shall be filed no later than the 15th day after 
                the last day of each calendar quarter, and 
                which shall be complete as of the last day of 
                each calendar quarter: except that the report 
                for the quarter ending December 31 shall be 
                filed no later than January 31 of the following 
                calendar year; and]
                  (iii) additional monthly reports, which shall 
                be filed not later than the 20th day after the 
                last day of the month and shall be complete as 
                of the last day of the month, except that 
                monthly reports shall not be required under 
                this clause in November and December and a year 
                end report shall be filed not later than 
                January 31 of the following calendar year.
          (B) in any other calendar year [the following reports 
        shall be filed:
                  [(i) a report covering the period beginning 
                January 1 and ending June 30, which shall be 
                filed no later than July 31; and
                  [(ii) a report covering the period beginning 
                July 1 and ending December 31, which shall be 
                filed no later than January 31 of the following 
                calendar year.] the treasurer shall file 
                quarterly reports, which shall be filed not 
                later than the 15th day after the last day of 
                each calendar quarter, and which shall be 
                complete as of the last day of each calendar 
                quarter, except that the report for the quarter 
                ending December 31 shall be filed not later 
                than January 31 of the following calendar year.
  (3) If the committee is the principal campaign committee of a 
candidate for the office of President--
          (A) in any calendar year during which a general 
        election is held to fill such office--
                  (i) * * *
                  (ii) the treasurer of the other principal 
                campaign committees of a candidate for the 
                office of President shall file a pre-election 
                report or reports in accordance with paragraph 
                (2)(A)(i), a post-general election report in 
                accordance with paragraph (2)(A)(ii), and 
                [quarterly reports] monthly reports in 
                accordance with paragraph (2)(A)(iii); and

           *       *       *       *       *       *       *

  (4) All political committees other than authorized committees 
of a candidate shall file either--
          (A)(i) * * *

           *       *       *       *       *       *       *

          (iv) in any other calendar year, a report covering 
        the period beginning January 1 and ending June 30, 
        which shall be filed no later than July 31 and a report 
        covering the period beginning July 1 and ending 
        December 31, which shall be filed no later than January 
        31 of the following calendar year; or
Notwithstanding the preceding sentence, a national committee of 
a political party shall file the reports required under 
subparagraph (B).

           *       *       *       *       *       *       *

  (5) If a designation, report, or statement filed pursuant to 
this Act (other than under paragraph (2)(A)(i) or (4)(A)(ii)[, 
or the second sentence of subsection (c)(2)]) is sent by 
registered or certified mail, the United States postmark shall 
be considered the date of filing of the designation, report, or 
statement.
  (6)(A) * * *
  (B) Notification of expenditure from personal funds.--
          (i) Definition of expenditure from personal funds.--
        In this subparagraph, the term ``expenditure from 
        personal funds'' means--
                  (I) an expenditure made by a candidate using 
                personal funds; and
                  (II) a contribution or loan made by a 
                candidate using personal funds or a loan 
                secured using such funds to the candidate's 
                authorized committee.
          (ii) Declaration of intent.--Not later than the date 
        that is 15 days after the date on which an individual 
        becomes a candidate for the office of Senator, the 
        candidate shall file a declaration stating the total 
        amount of expenditures from personal funds that the 
        candidate intends to make, or to obligate to make, with 
        respect to the election that will exceed the State-by-
        State competitive and fair campaign formula with--
                  (I) the Commission; and
                  (II) each candidate in the same election.
          (iii) Initial notification.--Not later than 24 hours 
        after a candidate described in clause (ii) makes or 
        obligates to make an aggregate amount of expenditures 
        from personal funds in excess of 2 times the threshold 
        amount in connection with any election, the candidate 
        shall file a notification with--
                  (I) the Commission; and
                  (II) each candidate in the same election.
          (iv) Additional notification.--After a candidate 
        files an initial notification under clause (iii), the 
        candidate shall file an additional notification each 
        time expenditures from personal funds are made or 
        obligated to be made in an aggregate amount that exceed 
        $10,000 with--
                  (I) the Commission; and
                  (II) each candidate in the same election.
        Such notification shall be filed not later than 24 
        hours after the expenditure is made.
          (v) Contents.--A notification under clause (iii) or 
        (iv) shall include--
                  (I) the name of the candidate and the office 
                sought by the candidate;
                  (II) the date and amount of each expenditure; 
                and
                  (III) the total amount of expenditures from 
                personal funds that the candidate has made, or 
                obligated to make, with respect to an election 
                as of the date of the expenditure that is the 
                subject of the notification.
  (C) Notification of disposal of excess contributions.--In the 
next regularly scheduled report after the date of the election 
for which a candidate seeks nomination for election to, or 
election to, Federal office, the candidate or the candidate's 
authorized committee shall submit to the Commission a report 
indicating the source and amount of any excess contributions 
(as determined under paragraph (1) of section 315(i)) and the 
manner in which the candidate or the candidate's authorized 
committee used such funds.
  (D) Enforcement.--For provisions providing for the 
enforcement of the reporting requirements under this paragraph, 
see section 309.
  [(B)] (E) The notification required under this paragraph 
shall be in addition to all other reporting requirements under 
this Act.

           *       *       *       *       *       *       *

  (8) The requirement for a political committee to file a 
[quarterly report under paragraph (2)(A)(iii) or paragraph 
(4)(A)(i)] monthly report under paragraph (2)(A)(iii) or 
paragraph (4)(A) shall be waived if such committee is required 
to file a pre-election report under paragraph (2)(A)(i), or 
paragraph (4)(A)(ii) during the period beginning on the 5th day 
after the close of the calendar quarter and ending on the 15th 
day after the close of the calendar quarter.

           *       *       *       *       *       *       *

  (11)(A) * * *
  [(B) The Commission shall make a designation, statement, 
report, or notification that is filed electronically with the 
Commission accessible to the public on the Internet not later 
than 24 hours after the designation, statement, report, or 
notification is received by the Commission.]
  (B) The Commission shall make a designation, statement, 
report, or notification that is filed with the Commission under 
this Act available for inspection by the public in the offices 
of the Commission and accessible to the public on the Internet 
not later than 48 hours (or not later than 24 hours in the case 
of a designation, statement, report, or notification filed 
electronically) after receipt by the Commission.
          (12) Software for filing of reports.--
                  (A) In general.--The Commission shall--
                          (i) promulgate standards to be used 
                        by vendors to develop software that--
                                  (I) permits candidates to 
                                easily record information 
                                concerning receipts and 
                                disbursements required to be 
                                reported under this Act at the 
                                time of the receipt or 
                                disbursement;
                                  (II) allows the information 
                                recorded under subclause (I) to 
                                be transmitted immediately to 
                                the Commission; and
                                  (III) allows the Commission 
                                to post the information on the 
                                Internet immediately upon 
                                receipt; and
                          (ii) make a copy of software that 
                        meets the standards promulgated under 
                        clause (i) available to each person 
                        required to file a designation, 
                        statement, or report in electronic form 
                        under this Act.
                  (B) Additional information.--To the extent 
                feasible, the Commission shall require vendors 
                to include in the software developed under the 
                standards under subparagraph (A) the ability 
                for any person to file any designation, 
                statement, or report required under this Act in 
                electronic form.
                  (C) Required use.--Notwithstanding any 
                provision of this Act relating to times for 
                filing reports, each candidate for Federal 
                office (or that candidate's authorized 
                committee) shall use software that meets the 
                standards promulgated under this paragraph once 
                such software is made available to such 
                candidate.
                  (D) Required posting.--The Commission shall, 
                as soon as practicable, post on the Internet 
                any information received under this paragraph.
  (c)(1) * * *
  (2) Statements required to be filed by this subsection shall 
be filed in accordance with subsection (a)(2), and shall 
include--
          (A) * * *

           *       *       *       *       *       *       *

          (C) the identification of each person who made a 
        contribution in excess of $200 to the person filing 
        such statement which was made for the purpose of 
        furthering an independent expenditure.
[Any independent expenditure (including those described in 
subsection (b)(6)(B)(iii) aggregating $1,000 or more made after 
the 20th day, but more than 24 hours, before any election shall 
be filed within 24 hours after such independent expenditure is 
made. Such statement shall be filed with the Secretary or the 
Commission and the Secretary of State and shall contain the 
information required by subsection (b)(6)(B)(iii) indicating 
whether the independent expenditure is in support of, or in 
opposition to, the candidate involved. Notwithstanding 
subsection (a)(5), the time at which the statement under this 
subsection is received by the Secretary, the Commission, or any 
other recipient to whom the notification is required to be sent 
shall be considered the time of filing of the statement with 
the recipient.]

           *       *       *       *       *       *       *

  (e) Political Committees.--
          (1) National and congressional political 
        committees.--The national committee of a political 
        party, any national congressional campaign committee of 
        a political party, and any subordinate committee of 
        either, shall report all receipts and disbursements 
        during the reporting period.
          (2) Other political committees to which section 323 
        applies.--
                  (A) In general.--In addition to any other 
                reporting requirements applicable under this 
                Act, a political committee (not described in 
                paragraph (1)) to which section 323(b)(1) 
                applies shall report all receipts and 
                disbursements made for activities described in 
                section 301(20)(A).
                  (B) Specific disclosure by state and local 
                parties of certain nonfederal amounts permitted 
                to be spent on federal election activity.--Each 
                report by a political committee under 
                subparagraph (A) of receipts and disbursements 
                made for activities described in section 
                301(20)(A) shall include a disclosure of all 
                receipts and disbursements made section 
                323(b)(2)(A) and (B).
          (3) Itemization.--If a political committee has 
        receipts or disbursements to which this subsection 
        applies from or to any person aggregating in excess of 
        $200 for any calendar year, the political committee 
        shall separately itemize its reporting for such person 
        in the same manner as required in paragraphs (3)(A), 
        (5), and (6) of subsection (b).
          (4) Reporting periods.--Reports required to be filed 
        under this subsection shall be filed for the same time 
        periods required for political committees under 
        subsection (a)(4)(B).
  (f) Disclosure of Electioneering Communications.--
          (1) Statement required.--Every person who makes a 
        disbursement for the direct costs of producing and 
        airing electioneering communications in an aggregate 
        amount in excess of $10,000 during any calendar year 
        shall, within 24 hours of each disclosure date, file 
        with the Commission a statement containing the 
        information described in paragraph (2).
          (2) Contents of statement.--Each statement required 
        to be filed under this subsection shall be made under 
        penalty of perjury and shall contain the following 
        information:
                  (A) The identification of the person making 
                the disbursement, of any person sharing or 
                exercising direction or control over the 
                activities of such person, and of the custodian 
                of the books and accounts of the person making 
                the disbursement.
                  (B) The principal place of business of the 
                person making the disbursement, if not an 
                individual.
                  (C) The amount of each disbursement of more 
                than $200 during the period covered by the 
                statement and the identification of the person 
                to whom the disbursement was made.
                  (D) The elections to which the electioneering 
                communications pertain and the names (if known) 
                of the candidates identified or to be 
                identified.
                  (E) If the disbursements were paid out of a 
                segregated bank account which consists of funds 
                contributed solely by individuals who are 
                United States citizens or nationals or lawfully 
                admitted for permanent residence as defined in 
                section 1101(a)(2) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(2)) directly 
                to this account for electioneering 
                communications, the names and addresses of all 
                contributors who contributed an aggregate 
                amount of $1,000 or more to that account during 
                the period beginning on the first day of the 
                preceding calendar year and ending on the 
                disclosure date. Nothing in this subparagraph 
                is to be construed as a prohibition on the use 
                of funds in such a segregated account for a 
                purpose other than electioneering 
                communications.
                  (F) If the disbursements were paid out of 
                funds not described in subparagraph (E), the 
                names and addresses of all contributors who 
                contributed an aggregate amount of $1,000 or 
                more to the person making the disbursement 
                during the period beginning on the first day of 
                the preceding calendar year and ending on the 
                disclosure date.
          (3) Electioneering communication.--For purposes of 
        this subsection--
                  (A) In general.--(i) The term 
                ``electioneering communication'' means any 
                broadcast, cable, or satellite communication 
                which--
                          (I) refers to a clearly identified 
                        candidate for Federal office;
                          (II) is made within--
                                  (aa) 60 days before a 
                                general, special, or runoff 
                                election for the office sought 
                                by the candidate; or
                                  (bb) 30 days before a primary 
                                or preference election, or a 
                                convention or caucus of a 
                                political party that has 
                                authority to nominate a 
                                candidate, for the office 
                                sought by the candidate; and
                          (III) in the case of a communication 
                        which refers to a candidate for an 
                        office other than President or Vice 
                        President, is targeted to the relevant 
                        electorate.
                  (ii) If clause (i) is held to be 
                constitutionally insufficient by final judicial 
                decision to support the regulation provided 
                herein, then the term ``electioneering 
                communication'' means any broadcast, cable, or 
                satellite communication which promotes or 
                supports a candidate for that office, or 
                attacks or opposes a candidate for that office 
                (regardless of whether the communication 
                expressly advocates a vote for or against a 
                candidate) and which also is suggestive of no 
                plausible meaning other than an exhortation to 
                vote for or against a specific candidate. 
                Nothing in this subparagraph shall be construed 
                to affect the interpretation or application of 
                section 100.22(b) of title 11, Code of Federal 
                Regulations.
                  (B) Exceptions.--The term ``electioneering 
                communication'' does not include--
                          (i) a communication appearing in a 
                        news story, commentary, or editorial 
                        distributed through the facilities of 
                        any broadcasting station, unless such 
                        facilities are owned or controlled by 
                        any political party, political 
                        committee, or candidate;
                          (ii) a communication which 
                        constitutes an expenditure or an 
                        independent expenditure under this Act;
                          (iii) a communication which 
                        constitutes a candidate debate or forum 
                        conducted pursuant to regulations 
                        adopted by the Commission, or which 
                        solely promotes such a debate or forum 
                        and is made by or on behalf of the 
                        person sponsoring the debate or forum; 
                        or
                          (iv) any other communication exempted 
                        under such regulations as the 
                        Commission may promulgate (consistent 
                        with the requirements of this 
                        paragraph) to ensure the appropriate 
                        implementation of this paragraph, 
                        except that under any such regulation a 
                        communication may not be exempted if it 
                        meets the requirements of this 
                        paragraph and is described in section 
                        301(20)(A)(iii).
                  (C) Targeting to relevant electorate.--For 
                purposes of this paragraph, a communication 
                which refers to a clearly identified candidate 
                for Federal office is ``targeted to the 
                relevant electorate'' if the communication can 
                be received by 50,000 or more persons--
                          (i) in the district the candidate 
                        seeks to represent, in the case of a 
                        candidate for Representative in, or 
                        Delegate or Resident Commissioner to, 
                        the Congress; or
                          (ii) in the State the candidate seeks 
                        to represent, in the case of a 
                        candidate for Senator.
          (4) Disclosure date.--For purposes of this 
        subsection, the term ``disclosure date'' means--
                  (A) the first date during any calendar year 
                by which a person has made disbursements for 
                the direct costs of producing or airing 
                electioneering communications aggregating in 
                excess of $10,000; and
                  (B) any other date during such calendar year 
                by which a person has made disbursements for 
                the direct costs of producing or airing 
                electioneering communications aggregating in 
                excess of $10,000 since the most recent 
                disclosure date for such calendar year.
          (5) Contracts to disburse.--For purposes of this 
        subsection, a person shall be treated as having made a 
        disbursement if the person has executed a contract to 
        make the disbursement.
          (6) Coordination with other requirements.--Any 
        requirement to report under this subsection shall be in 
        addition to any other reporting requirement under this 
        Act.
          (7) Coordination with internal revenue code.--Nothing 
        in this subsection may be construed to establish, 
        modify, or otherwise affect the definition of political 
        activities or electioneering activities (including the 
        definition of participating in, intervening in, or 
        influencing or attempting to influence a political 
        campaign on behalf of or in opposition to any candidate 
        for public office) for purposes of the Internal Revenue 
        Code of 1986.
  (g) Time for Reporting Certain Expenditures.--
          (1) Expenditures aggregating $1,000.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $1,000 or more after the 20th day, but more 
                than 24 hours, before the date of an election 
                shall file a report describing the expenditures 
                within 24 hours.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall file an additional report within 24 hours 
                after each time the person makes or contracts 
                to make independent expenditures aggregating an 
                additional $1,000 with respect to the same 
                election as that to which the initial report 
                relates.
          (2) Expenditures aggregating $10,000.--
                  (A) Initial report.--A person (including a 
                political committee) that makes or contracts to 
                make independent expenditures aggregating 
                $10,000 or more at any time up to and including 
                the 20th day before the date of an election 
                shall file a report describing the expenditures 
                within 48 hours.
                  (B) Additional reports.--After a person files 
                a report under subparagraph (A), the person 
                shall file an additional report within 48 hours 
                after each time the person makes or contracts 
                to make independent expenditures aggregating an 
                additional $10,000 with respect to the same 
                election as that to which the initial report 
                relates.
          (3) Place of filing; contents.--A report under this 
        subsection--
                  (A) shall be filed with the Commission; and
                  (B) shall contain the information required by 
                subsection (b)(6)(B)(iii), including the name 
                of each candidate whom an expenditure is 
                intended to support or oppose.
  (h) Reports From Inaugural Committees.--The Federal Election 
Commission shall make any report filed by an Inaugural 
Committee under section 510 of title 36, United States Code, 
accessible to the public at the offices of the Commission and 
on the Internet not later than 48 hours after the report is 
received by the Commission.

                              enforcement

  Sec. 309. (a)(1) * * *

           *       *       *       *       *       *       *

  (5)(A) * * *
  (B) If the Commission believes that a knowing and willful 
violation of this Act or of chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954 has been committed, a 
conciliation agreement entered into by the Commission under 
paragraph (4)(A) may require that the person involved in such 
conciliation agreement shall pay a civil penalty which does not 
exceed the greater of $10,000 or an amount equal to 200 percent 
of any contribution or expenditure involved in such violation 
(or, in the case of a violation of section 320, which is not 
less than 300 percent of the amount involved in the violation 
and is not more than the greater of $50,000 or 1000 percent of 
the amount involved in the violation).
  (6)(A) * * *

           *       *       *       *       *       *       *

  (C) In any civil action for relief instituted by the 
Commission under subparagraph (A), if the court determines that 
the Commission has established that the person involved in such 
civil action has committed a knowing and willful violation of 
this Act or of chapter 95 or chapter 96 of the Internal Revenue 
Code of 1954, the court may impose a civil penalty which does 
not exceed the greater of $10,000 or an amount equal to 200 
percent of any contribution or expenditure involved in such 
violation (or, in the case of a violation of section 320, which 
is not less than 300 percent of the amount involved in the 
violation and is not more than the greater of $50,000 or 1000 
percent of the amount involved in the violation).
  (b) Before taking any action under subsection (a) against any 
person who has failed to file a report required under section 
304(a)(2)(A)(iii) for the [calendar quarter] month immediately 
preceding the election involved, or in accordance with section 
304(a)(2)(A)(i), the Commission shall notify the person of such 
failure to file the required reports. If a satisfactory 
response is not received within 4 business days after the date 
of notification, the Commission shall, pursuant to section 
311(a)(7), publish before the election the name of the person 
and the report or reports such person has failed to file.

           *       *       *       *       *       *       *

  (d)(1)[(A) Any person who knowingly and willfully commits a 
violation of any provision of this Act which involves the 
making, receiving, or reporting of any contribution or 
expenditure aggregating $2,000 or more during a calendar year 
shall be fined, or imprisoned for not more than one year, or 
both. The amount of this fine shall not exceed the greater of 
$25,000 or 300 percent of any contribution or expenditure 
involved in such violation.] (A) Any person who knowingly and 
willfully commits a violation of any provision of this Act 
which involves the making, receiving, or reporting of any 
contribution, donation, or expenditure--
          (i) aggregating $25,000 or more during a calendar 
        year shall be fined under title 18, United States Code, 
        or imprisoned for not more than 5 years, or both; or
          (ii) aggregating $2,000 or more (but less than 
        $25,000) during a calendar year shall be fined under 
        such title, or imprisoned for not more than one year, 
        or both.

           *       *       *       *       *       *       *

  (D) Any person who knowingly and willfully commits a 
violation of section 320 involving an amount aggregating more 
than $10,000 during a calendar year shall be--
          (i) imprisoned for not more than 2 years if the 
        amount is less than $25,000 (and subject to 
        imprisonment under subparagraph (A) if the amount is 
        $25,000 or more);
          (ii) fined not less than 300 percent of the amount 
        involved in the violation and not more than the greater 
        of--
                  (I) $50,000; or
                  (II) 1,000 percent of the amount involved in 
                the violation; or
          (iii) both imprisoned under clause (i) and fined 
        under clause (ii).

           *       *       *       *       *       *       *

            [use of contributed amounts for certain purposes

  [Sec. 313. Amounts received by a candidate as contributions 
that are in excess of any amount necessary to defray his 
expenditures, and any other amounts contributed to an 
individual for the purpose of supporting his or her activities 
as a holder of Federal office, may be used by such candidate or 
individual, as the case may be, to defray any ordinary and 
necessary expenses incurred in connection with his or her 
duties as a holder of Federal office, may be contributed to any 
organization described in section 170(c) of the Internal 
Revenue Code of 1954, or may be used for any other lawful 
purpose, including transfers without limitation to any 
national, State, or local committee of any political party; 
except that no such amounts may be converted by any person to 
any personal use, other than to defray any ordinary and 
necessary expenses incurred in connection with his or her 
duties as a holder of Federal office.]

SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.

  (a) Permitted Uses.--A contribution accepted by a candidate, 
and any other donation received by an individual as support for 
activities of the individual as a holder of Federal office, may 
be used by the candidate or individual--
          (1) for otherwise authorized expenditures in 
        connection with the campaign for Federal office of the 
        candidate or individual;
          (2) for ordinary and necessary expenses incurred in 
        connection with duties of the individual as a holder of 
        Federal office;
          (3) for contributions to an organization described in 
        section 170(c) of the Internal Revenue Code of 1986; or
          (4) for transfers to a national, State, or local 
        committee of a political party.
  (b) Prohibited Use.--
          (1) In general.--A contribution or donation described 
        in subsection (a) shall not be converted by any person 
        to personal use.
          (2) Conversion.--For the purposes of paragraph (1), a 
        contribution or donation shall be considered to be 
        converted to personal use if the contribution or amount 
        is used to fulfill any commitment, obligation, or 
        expense of a person that would exist irrespective of 
        the candidate's election campaign or individual's 
        duties as a holder of Federal office, including--
                  (A) a home mortgage, rent, or utility 
                payment;
                  (B) a clothing purchase;
                  (C) a noncampaign-related automobile expense;
                  (D) a country club membership;
                  (E) a vacation or other noncampaign-related 
                trip;
                  (F) a household food item;
                  (G) a tuition payment;
                  (H) admission to a sporting event, concert, 
                theater, or other form of entertainment not 
                associated with an election campaign; and
                  (I) dues, fees, and other payments to a 
                health club or recreational facility.

           *       *       *       *       *       *       *

             limitations on contributions and expenditures

  Sec. 315. (a)(1) [No person] Except as provided in subsection 
(i), no person shall make contributions--
          (A) to any candidate and his authorized political 
        committees with respect to any election for Federal 
        office which, in the aggregate, exceed [$1,000] $2,000 
        (or, in the case of a candidate for Representative in 
        or Delegate or Resident Commissioner to the Congress, 
        $1,000);
          (B) to the political committees established and 
        maintained by a national political party, which are not 
        the authorized political committees of any candidate, 
        in any calendar year which, in the aggregate, exceed 
        [$20,000; or] $25,000;
          (C) to any other political committee (other than a 
        committee described in subparagraph (D)) in any 
        calendar year which, in the aggregate, exceed 
        $5,000[.]; or
          (D) to a political committee established and 
        maintained by a State committee of a political party in 
        any calendar year which, in the aggregate, exceed 
        $10,000.
  (3) No individual shall make contributions aggregating more 
than [$25,000] $37,500 in any calendar year. For purposes of 
this paragraph, any contribution made to a candidate in a year 
other than the calendar year in which the election is held with 
respect to which such contribution is made, is considered to be 
made during the calendar year in which such election is held.

           *       *       *       *       *       *       *

  (7) For purposes of this subsection--
          (A) * * *
          [(B)(i) expenditures made by any person in 
        cooperation, consultation, or concert, with, or at the 
        request or suggestion of, a candidate, his authorized 
        political committees, or their agents shall be 
        considered to be a contribution to such candidate;
          [(ii) the financing by any person of the 
        dissemination, distribution, or republication, in whole 
        or in part, of any broadcast or any written, graphic, 
        or other form of campaign materials prepared by the 
        candidate, his campaign committees, or their authorized 
        agents shall be considered to be an expenditure for 
        purposes of this paragraph; and]
          (B) a coordinated expenditure or disbursement 
        described in--
                  (i) section 301(8)(A)(iii) shall be 
                considered to be a contribution to the 
                candidate and an expenditure by the candidate; 
                and
                  (ii) section 301(8)(A)(iv) shall be 
                considered to be a contribution to, and an 
                expenditure by, the political party committee;
          (C) if--
                  (i) any person makes, or contracts to make, 
                any disbursement for any electioneering 
                communication (within the meaning of section 
                304(f)(3)); and
                  (ii) such disbursement is coordinated with a 
                candidate or an authorized committee of such 
                candidate, a Federal, State, or local political 
                party or committee thereof, or an agent or 
                official of any such candidate, party, or 
                committee;
        such disbursement or contracting shall be treated as a 
        contribution to the candidate supported by the 
        electioneering communication or that candidate's party 
        and as an expenditure by that candidate or that 
        candidate's party; and
          [(C)] (D) contributions made to or for the benefit of 
        any candidate nominated by a political party for 
        election to the office of Vice President of the United 
        States shall be considered to be contributions made to 
        or for the benefit of the candidate of such party for 
        election to the office of President of the United 
        States.

           *       *       *       *       *       *       *

  (8) For purposes of the limitations imposed by this section, 
all contributions made by a person, either directly or 
indirectly, on behalf of a particular candidate, [including 
contributions which are in any way earmarked or otherwise 
directed through an intermediary or conduit to such candidate,] 
including contributions which are in any way earmarked or 
otherwise arranged or directed through an intermediary or 
conduit to such candidate, or solicited by such candidate to 
support the candidate's election and arranged or suggested by 
the candidate to be spent by or through an intermediary to 
support or assist the candidate's election, shall be treated as 
contributions from such person to such candidate. The 
intermediary or conduit shall report the original source and 
the intended recipient of such contribution to the Commission 
and to the intended recipient.

           *       *       *       *       *       *       *

  (c)(1)(A) At the beginning of each calendar year (commencing 
in 1976), as there become available necessary data from the 
Bureau of Labor Statistics of the Department of Labor, the 
Secretary of Labor shall certify to the Commission and publish 
in the Federal Register the percent difference between the 
price index for the 12 months preceding the beginning of such 
calendar year and the price index for the base period. [Each 
limitation established by subsection (b) and subsection (d) 
shall be increased by such percent difference. Each amount so 
increased shall be the amount in effect for such calendar 
year.]
  (B) Except as provided in subparagraph (C), in any calendar 
year after 2002--
          (i) a limitation established by subsection (a)(1)(A), 
        (a)(1)(B), (a)(3), (b), (d), or (h) shall be increased 
        by the percent difference determined under subparagraph 
        (A);
          (ii) each amount so increased shall remain in effect 
        for the calendar year; and
          (iii) if any amount after adjustment under clause (i) 
        is not a multiple of $100, such amount shall be rounded 
        to the nearest multiple of $100.
  (C) In the case of limitations under subsections (a)(1)(A), 
(a)(1)(B), (a)(3), and (h), increases shall only be made in 
odd-numbered years and such increases shall remain in effect 
for the 2-year period beginning on the first day following the 
date of the last general election in the year preceding the 
year in which the amount is increased and ending on the date of 
the next general election.
  (2) For purposes of paragraph (1)--
          (A) * * *
          (B) the term ``base period'' [means the calendar year 
        1974] means--
                  (i) for purposes of subsections (b) and (d), 
                calendar year 1974; and
                  (ii) for purposes of subsections (a)(1)(A), 
                (a)(1)(B), (a)(3), and (h) calendar year 2001.
  (d)(1) Notwithstanding any other provision of law with 
respect to limitations on expenditures or limitations on 
contributions, the national committee of a political party and 
a State committee of a political party, including any 
subordinate committee of a State committee, may make 
expenditures in connection with the general election campaign 
of candidates for Federal office, subject to the limitations 
contained in paragraphs (2) [and (3)], (3), and (4) of this 
subsection.

           *       *       *       *       *       *       *

          (4) Independent versus coordinated expenditures by 
        party.--
                  (A) In general.--On or after the date on 
                which a political party nominates a candidate, 
                a committee of the political party shall not 
                make both expenditures under this subsection 
                and independent expenditures (as defined in 
                section 301(17)) with respect to the candidate 
                during the election cycle.
                  (B) Certification.--Before making a 
                coordinated expenditure under this subsection 
                with respect to a candidate, a committee of a 
                political party shall file with the Commission 
                a certification, signed by the treasurer of the 
                committee, that the committee, on or after the 
                date described in subparagraph (A), has not and 
                shall not make any independent expenditure with 
                respect to the candidate during the same 
                election cycle.
                  (C) Application.--For purposes of this 
                paragraph, all political committees established 
                and maintained by a national political party 
                (including all congressional campaign 
                committees) and all political committees 
                established and maintained by a State political 
                party (including any subordinate committee of a 
                State committee) shall be considered to be a 
                single political committee.
                  (D) Transfers.--A committee of a political 
                party that submits a certification under 
                subparagraph (B) with respect to a candidate 
                shall not, during an election cycle, transfer 
                any funds to, assign authority to make 
                coordinated expenditures under this subsection 
                to, or receive a transfer of funds from, a 
                committee of the political party that has made 
                or intends to make an independent expenditure 
                with respect to the candidate.

           *       *       *       *       *       *       *

  (h) Notwithstanding any other provision of this Act, amounts 
totaling not more than [$17,500] $35,000 may be contributed to 
a candidate for nomination for election, or for election, to 
the United States Senate during the year in which an election 
is held in which he is such a candidate, by the Republican or 
Democratic Senatorial Campaign Committee, or the national 
committee of a political party, or any combination of such 
committees.
  (i) Increased Limit to Allow Response to Expenditures From 
Personal Funds.--
          (1) Increase.--
                  (A) In general.--Subject to paragraph (2), if 
                the opposition personal funds amount with 
                respect to a candidate for election to the 
                office of Senator exceeds the threshold amount, 
                the limit under subsection (a)(1)(A) (in this 
                subsection referred to as the ``applicable 
                limit'') with respect to that candidate shall 
                be the increased limit.
                  (B) Threshold amount.--
                          (i) State-by-state competitive and 
                        fair campaign formula.--In this 
                        subsection, the threshold amount with 
                        respect to an election cycle of a 
                        candidate described in subparagraph (A) 
                        is an amount equal to the sum of--
                                  (I) $150,000; and
                                  (II) $0.04 multiplied by the 
                                voting age population.
                          (ii) Voting age population.--In this 
                        subparagraph, the term ``voting age 
                        population'' means in the case of a 
                        candidate for the office of Senator, 
                        the voting age population of the State 
                        of the candidate (as certified under 
                        section 315(e)).
                  (C) Increased limit.--Except as provided in 
                clause (ii), for purposes of subparagraph (A), 
                if the opposition personal funds amount is 
                over--
                          (i) 2 times the threshold amount, but 
                        not over 4 times that amount--
                                  (I) the increased limit shall 
                                be 3 times the applicable 
                                limit; and
                                  (II) the limit under 
                                subsection (a)(3) shall not 
                                apply with respect to any 
                                contribution made with respect 
                                to a candidate if such 
                                contribution is made under the 
                                increased limit of subparagraph 
                                (A) during a period in which 
                                the candidate may accept such a 
                                contribution;
                          (ii) 4 times the threshold amount, 
                        but not over 10 times that amount--
                                  (I) the increased limit shall 
                                be 6 times the applicable 
                                limit; and
                                  (II) the limit under 
                                subsection (a)(3) shall not 
                                apply with respect to any 
                                contribution made with respect 
                                to a candidate if such 
                                contribution is made under the 
                                increased limit of subparagraph 
                                (A) during a period in which 
                                the candidate may accept such a 
                                contribution; and
                          (iii) 10 times the threshold amount--
                                  (I) the increased limit shall 
                                be 6 times the applicable 
                                limit;
                                  (II) the limit under 
                                subsection (a)(3) shall not 
                                apply with respect to any 
                                contribution made with respect 
                                to a candidate if such 
                                contribution is made under the 
                                increased limit of subparagraph 
                                (A) during a period in which 
                                the candidate may accept such a 
                                contribution; and
                                  (III) the limits under 
                                subsection (d) with respect to 
                                any expenditure by a State or 
                                national committee of a 
                                political party shall not 
                                apply.
                  (D) Opposition personal funds amount.--The 
                opposition personal funds amount is an amount 
                equal to the excess (if any) of--
                          (i) the greatest aggregate amount of 
                        expenditures from personal funds (as 
                        defined in section 304(a)(6)(B)) that 
                        an opposing candidate in the same 
                        election makes; over
                          (ii) the aggregate amount of 
                        expenditures from personal funds made 
                        by the candidate with respect to the 
                        election.
                  (E) Special rule for candidate's campaign 
                funds.--
                          (i) In general.--For purposes of 
                        determining the aggregate amount of 
                        expenditures from personal funds under 
                        subparagraph (D)(ii), such amount shall 
                        include the gross receipts advantage of 
                        the candidate's authorized committee.
                          (ii) Gross receipts advantage.--For 
                        purposes of clause (i), the term 
                        ``gross receipts advantage'' means the 
                        excess, if any, of--
                                  (I) the aggregate amount of 
                                50 percent of gross receipts of 
                                a candidate's authorized 
                                committee during any election 
                                cycle (not including 
                                contributions from personal 
                                funds of the candidate) that 
                                may be expended in connection 
                                with the election, as 
                                determined on June 30 and 
                                December 31 of the year 
                                preceding the year in which a 
                                general election is held, over
                                  (II) the aggregate amount of 
                                50 percent of gross receipts of 
                                the opposing candidate's 
                                authorized committee during any 
                                election cycle (not including 
                                contributions from personal 
                                funds of the candidate) that 
                                may be expended in connection 
                                with the election, as 
                                determined on June 30 and 
                                December 31 of the year 
                                preceding the year in which a 
                                general election is held.
          (2) Time to accept contributions under increased 
        limit.--
                  (A) In general.--Subject to subparagraph (B), 
                a candidate and the candidate's authorized 
                committee shall not accept any contribution, 
                and a party committee shall not make any 
                expenditure, under the increased limit under 
                paragraph (1)--
                          (i) until the candidate has received 
                        notification of the opposition personal 
                        funds amount under section 
                        304(a)(6)(B); and
                          (ii) to the extent that such 
                        contribution, when added to the 
                        aggregate amount of contributions 
                        previously accepted and party 
                        expenditures previously made under the 
                        increased limits under this subsection 
                        for the election cycle, exceeds 110 
                        percent of the opposition personal 
                        funds amount.
                  (B) Effect of withdrawal of an opposing 
                candidate.--A candidate and a candidate's 
                authorized committee shall not accept any 
                contribution and a party shall not make any 
                expenditure under the increased limit after the 
                date on which an opposing candidate ceases to 
                be a candidate to the extent that the amount of 
                such increased limit is attributable to such an 
                opposing candidate.
          (3) Disposal of excess contributions.--
                  (A) In general.--The aggregate amount of 
                contributions accepted by a candidate or a 
                candidate's authorized committee under the 
                increased limit under paragraph (1) and not 
                otherwise expended in connection with the 
                election with respect to which such 
                contributions relate shall, not later than 50 
                days after the date of such election, be used 
                in the manner described in subparagraph (B).
                  (B) Return to contributors.--A candidate or a 
                candidate's authorized committee shall return 
                the excess contribution to the person who made 
                the contribution.
  (j) Limitation on Repayment of Personal Loans.--Any candidate 
who incurs personal loans made after the date of enactment of 
the Bipartisan Campaign Reform Act of 2001 in connection with 
the candidate's campaign for election shall not repay (directly 
or indirectly), to the extent such loans exceed $250,000, such 
loans from any contributions made to such candidate or any 
authorized committee of such candidate after the date of such 
election.

contributions or expenditures by national banks, corporations, or labor 
                             organizations

  Sec. 316. (a) * * *
  (b)(1) * * *
  (2) For purposes of this section and section 12(h) of the 
Public Utility Holding Company Act (15 U.S.C. 79l(h)), the term 
``contribution or expenditure'' [shall include] includes a 
contribution or expenditure, as those terms are defined in 
section 301, and also includes any direct or indirect payment, 
distribution, loan, advance, deposit, or gift of money, or any 
services, or anything of value (except a loan of money by a 
national or State bank made in accordance with the applicable 
banking laws and regulations and in the ordinary course of 
business) to any candidate, campaign committee, or political 
party or organization, in connection with any election to any 
of the offices referred to in this section or for any 
applicable electioneering communication, but shall not include 
(A) communications by a corporation to its stockholders and 
executive or administrative personnel and their families or by 
a labor organization to its members and their families on any 
subject; (B) nonpartisan registration and get-out-the-vote 
campaigns by a corporation aimed at its stockholders and 
executive or administrative personnel and their families, or by 
a labor organization aimed at its members and their families; 
and (C) the establishment, administration, and solicitation of 
contributions to a separate segregated fund to be utilized for 
political purposes by a corporation, labor organization, 
membership organization, cooperative, or corporation without 
capital stock.
  (c) Rules Relating to Electioneering Communications.--
          (1) Applicable electioneering communication.--For 
        purposes of this section, the term ``applicable 
        electioneering communication'' means an electioneering 
        communication (within the meaning of section 304(f)(3)) 
        which is made by any entity described in subsection (a) 
        of this section or by any other person using funds 
        donated by an entity described in subsection (a) of 
        this section.
          (2) Exception.--Notwithstanding paragraph (1), the 
        term ``applicable electioneering communication'' does 
        not include a communication by a section 501(c)(4) 
        organization or a political organization (as defined in 
        section 527(e)(1) of such Code) made under section 
        304(f)(2)(E) or (F) of this Act if the communication is 
        paid for exclusively by funds provided directly by 
        individuals who are United States citizens or nationals 
        or lawfully admitted for permanent residence as defined 
        in section 1101(a)(2) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(2)). For purposes of 
        the preceding sentence, the term ``provided directly by 
        individuals'' does not include funds the source of 
        which is an entity described in subsection (a) of this 
        section.
          (3) Special operating rules.--
                  (A) Definition under paragraph (1).--An 
                electioneering communication shall be treated 
                as made by an entity described in subsection 
                (a) if an entity described in subsection (a) 
                directly or indirectly disburses any amount for 
                any of the costs of the communication.
                  (B) Exception under paragraph (2).--A section 
                501(c)(4) organization that derives amounts 
                from business activities or receives funds from 
                any entity described in subsection (a) shall be 
                considered to have paid for any communication 
                out of such amounts unless such organization 
                paid for the communication out of a segregated 
                account to which only individuals can 
                contribute, as described in section 
                304(f)(2)(E).
          (4) Definitions and rules.--For purposes of this 
        subsection--
                  (A) the term ``section 501(c)(4) 
                organization'' means--
                          (i) an organization described in 
                        section 501(c)(4) of the Internal 
                        Revenue Code of 1986 and exempt from 
                        taxation under section 501(a) of such 
                        Code; or
                          (ii) an organization which has 
                        submitted an application to the 
                        Internal Revenue Service for 
                        determination of its status as an 
                        organization described in clause (i); 
                        and
                  (B) a person shall be treated as having made 
                a disbursement if the person has executed a 
                contract to make the disbursement.
          (5) Coordination with internal revenue code.--Nothing 
        in this subsection shall be construed to authorize an 
        organization exempt from taxation under section 501(a) 
        of the Internal Revenue Code of 1986 to carry out any 
        activity which is prohibited under such Code.
          (6) Special rules for targeted communications.--
                  (A) Exception does not apply.--Paragraph (2) 
                shall not apply in the case of a targeted 
                communication that is made by an organization 
                described in such paragraph.
                  (B) Targeted communication.--For purposes of 
                subparagraph (A), the term ``targeted 
                communication'' means an electioneering 
                communication (as defined in section 304(f)(3)) 
                that is distributed from a television or radio 
                broadcast station or provider of cable or 
                satellite television service and, in the case 
                of a communication which refers to a candidate 
                for an office other than President or Vice 
                President, is targeted to the relevant 
                electorate.
                  (C) Definition.--For purposes of this 
                paragraph, a communication is ``targeted to the 
                relevant electorate'' if it meets the 
                requirements described in section 304(f)(3)(C).

           *       *       *       *       *       *       *

      publication and distribution of statements and solicitations

  Sec. 318. (a) [Whenever] Whenever a political committee makes 
a disbursement for the purpose of financing any communication 
through any broadcasting station, newspaper, magazine, outdoor 
advertising facility, mailing, or any other type of general 
public political advertising, or whenever any person makes [an 
expenditure] a disbursement for the purpose of financing 
communications expressly advocating the election or defeat of a 
clearly identified candidate, or solicits any contribution 
through any broadcasting station, newspaper, magazine, outdoor 
advertising facility, [direct] mailing, or any other type of 
general public political advertising or makes a disbursement 
for an electioneering communication (as defined in section 
304(f)(3)), such communication--
          (1) * * *

           *       *       *       *       *       *       *

          (3) if not authorized by a candidate, an authorized 
        political committee of a candidate, or its agents, 
        shall clearly state the name and permanent street 
        address, telephone number, or World Wide Web address of 
        the person who paid for the communication and state 
        that the communication is not authorized by any 
        candidate or candidate's committee.

           *       *       *       *       *       *       *

  (c) Specification.--Any printed communication described in 
subsection (a) shall--
          (1) be of sufficient type size to be clearly readable 
        by the recipient of the communication;
          (2) be contained in a printed box set apart from the 
        other contents of the communication; and
          (3) be printed with a reasonable degree of color 
        contrast between the background and the printed 
        statement.
  (d) Additional Requirements.--
          (1) Audio statement.--
                  (A) Candidate.--Any communication described 
                in paragraphs (1) or (2) of subsection (a) 
                which is transmitted through radio or 
                television shall include, in addition to the 
                requirements of that paragraph, an audio 
                statement by the candidate that identifies the 
                candidate and states that the candidate has 
                approved the communication.
                  (B) Other persons.--Any communication 
                described in paragraph (3) of subsection (a) 
                which is transmitted through radio or 
                television shall include, in addition to the 
                requirements of that paragraph, in a clearly 
                spoken manner, the following statement: 
                ``__________ is responsible for the content of 
                this advertising.'' (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 transmitted 
                through 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.
          (2) Television.--If a communication described in 
        paragraph (1)(A) is transmitted through television, the 
        communication shall include, in addition to the audio 
        statement under paragraph (1), a written statement 
        that--
                  (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.

  [contributions by foreign nationals] contributions and donations by 
                           foreign nationals

  Sec. 319. [(a) It shall be unlawful for a foreign national 
directly or through any other person to make any contribution 
of money or other thing of value, or to promise expressly or 
impliedly to make any such contribution, in connection with an 
election to any political office or in connection with any 
primary election, convention, or caucus held to select 
candidates for any political office; or for any person to 
solicit, accept, or receive any such contribution from a 
foreign national.]
  (a) Prohibition.--It shall be unlawful for--
          (1) a foreign national, directly or indirectly, to 
        make--
                  (A) a contribution or donation of money or 
                other thing of value, or to make an express or 
                implied promise to make a contribution or 
                donation, in connection with a Federal, State, 
                or local election;
                  (B) a contribution or donation to a committee 
                of a political party; or
                  (C) an expenditure, independent expenditure, 
                or disbursement for an electioneering 
                communication (within the meaning of section 
                304(f)(3)); or
          (2) a person to solicit, accept, or receive a 
        contribution or donation described in subparagraph (A) 
        or (B) of paragraph (1) from a foreign national.
  (b) As used in this section, the term ``foreign national'' 
means--
          (1) a foreign principal, as such term is defined by 
        section 1(b) of the Foreign Agents Registration Act of 
        1938 (22 U.S.C. 611(b)), except that the term ``foreign 
        national'' shall not include any individual who is a 
        citizen of the United States; or
          (2) an individual who is not a citizen of the United 
        States or a national of the United States (as defined 
        in section 101(a)(22) of the Immigration and 
        Nationality Act) and who is not lawfully admitted for 
        permanent residence, as defined by section 101(a)(20) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(20)).

           *       *       *       *       *       *       *

           fraudulent misrepresentation of campaign authority

  Sec. 322. (a) In General.--No person who is a candidate for 
Federal office or an employee or agent of such a candidate 
shall--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Fraudulent Solicitation of Funds.--No person shall--
          (1) fraudulently misrepresent the person as speaking, 
        writing, or otherwise acting for or on behalf of any 
        candidate or political party or employee or agent 
        thereof for the purpose of soliciting contributions or 
        donations; or
          (2) willfully and knowingly participate in or 
        conspire to participate in any plan, scheme, or design 
        to violate paragraph (1).

SEC. 323. SOFT MONEY OF POLITICAL PARTIES.

  (a) National Committees.--
          (1) In general.--A national committee of a political 
        party (including a national congressional campaign 
        committee of a political party) may not solicit, 
        receive, or direct to another person a contribution, 
        donation, or transfer of funds or any other thing of 
        value, or spend any funds, that are not subject to the 
        limitations, prohibitions, and reporting requirements 
        of this Act.
          (2) Applicability.--The prohibition established by 
        paragraph (1) applies to any such national committee, 
        any officer or agent acting on behalf of such a 
        national committee, and any entity that is directly or 
        indirectly established, financed, maintained, or 
        controlled by such a national committee.
  (b) State, District, and Local Committees.--
          (1) In general.--Except as provided in paragraph (2), 
        an amount that is expended or disbursed for Federal 
        election activity by a State, district, or local 
        committee of a political party (including an entity 
        that is directly or indirectly established, financed, 
        maintained, or controlled by a State, district, or 
        local committee of a political party and an officer or 
        agent acting on behalf of such committee or entity), or 
        by an association or similar group of candidates for 
        State or local office or individuals holding State or 
        local office, shall be made from funds subject to the 
        limitations, prohibitions, and reporting requirements 
        of this Act.
          (2) Applicability.--
                  (A) In general.--Notwithstanding clause (i) 
                or (ii) of section 301(20)(A), and subject to 
                subparagraph (B), paragraph (1) shall not apply 
                to any amount expended or disbursed by a State, 
                district, or local committee of a political 
                party in existence as of the date of the 
                enactment of the Bipartisan Campaign Reform Act 
                of 2001 for an activity described in either 
                such clause to the extent the amounts expended 
                or disbursed for such activity are allocated 
                under regulations prescribed by the Commission 
                which require not less than 50 percent of the 
                amounts expended or disbursed be paid from a 
                Federal allocation account consisting solely of 
                contributions subject to the limitations, 
                prohibitions, and reporting requirements of 
                this Act (not including funds specifically 
                authorized to be spent under subparagraph 
                (B)(iii)).
                  (B) Conditions.--Subparagraph (A) shall only 
                apply if--
                          (i) the activity does not refer to a 
                        clearly identified candidate for 
                        Federal office;
                          (ii) the amounts expended or 
                        disbursed are not for the costs of any 
                        broadcasting, cable, or satellite 
                        communication, other than a 
                        communication which refers solely to a 
                        clearly identified candidate for State 
                        or local office;
                          (iii) the amounts expended or 
                        disbursed which are not from a Federal 
                        allocation account described in 
                        subparagraph (A) are paid from amounts 
                        which are donated in accordance with 
                        State law and which meet the 
                        requirements of subparagraph (C), 
                        except that no person (including any 
                        person established, financed, 
                        maintained, or controlled by such 
                        person) may donate more than $10,000 to 
                        a State, district, or local committee 
                        of a political party in a calendar year 
                        for such expenditures or disbursements; 
                        and
                          (iv) the amounts expended or 
                        disbursed are made solely from funds 
                        raised by the State, local, or district 
                        committee which makes such expenditure 
                        or disbursement, and do not include any 
                        funds provided to such committee from--
                                  (I) any other State, local, 
                                or district committee of any 
                                State party,
                                  (II) the national committee 
                                of a political party (including 
                                a national congressional 
                                campaign committee of a 
                                political party),
                                  (III) any officer or agent 
                                acting on behalf of any 
                                committee described in 
                                subclause (I) or (II), or
                                  (IV) any entity directly or 
                                indirectly established, 
                                financed, maintained, or 
                                controlled by any committee 
                                described in subclause (I) or 
                                (II).
                  (C) Prohibiting involvement of national 
                parties, federal candidates and officeholders, 
                and state parties acting jointly.--
                Notwithstanding subsection (e) (other than 
                subsection (e)(3)), amounts specifically 
                authorized to be spent under subparagraph 
                (B)(iii) meet the requirements of this 
                subparagraph only if the amounts--
                          (i) are not solicited, received, 
                        directed, transferred, or spent by or 
                        in the name of any person described in 
                        subsection (a) or (e); and
                          (ii) are not solicited, received, or 
                        directed through fundraising activities 
                        conducted jointly by 2 or more State, 
                        local, or district committees of any 
                        political party or their agents, or by 
                        a State, local, or district committee 
                        of a political party on behalf of the 
                        State, local, or district committee of 
                        a political party or its agent in one 
                        or more other States.
  (c) Fundraising Costs.--An amount spent by a person described 
in subsection (a) or (b) to raise funds that are used, in whole 
or in part, for expenditures and disbursements for a Federal 
election activity shall be made from funds subject to the 
limitations, prohibitions, and reporting requirements of this 
Act.
  (d) Tax-Exempt Organizations.--A national, State, district, 
or local committee of a political party (including a national 
congressional campaign committee of a political party), an 
entity that is directly or indirectly established, financed, 
maintained, or controlled by any such national, State, 
district, or local committee or its agent, and an officer or 
agent acting on behalf of any such party committee or entity, 
shall not solicit any funds for, or make or direct any 
donations to--
          (1) an organization that is described in section 
        501(c) of the Internal Revenue Code of 1986 and exempt 
        from taxation under section 501(a) of such Code (or has 
        submitted an application for determination of tax 
        exempt status under such section) and that makes 
        expenditures or disbursements in connection with an 
        election for Federal office (including expenditures or 
        disbursements for Federal election activity); or
          (2) an organization described in section 527 of such 
        Code (other than a political committee, a State, 
        district, or local committee of a political party, or 
        the authorized campaign committee of a candidate for 
        State or local office).
  (e) Federal Candidates.--
          (1) In general.--A candidate, individual holding 
        Federal office, agent of a candidate or an individual 
        holding Federal office, or an entity directly or 
        indirectly established, financed, maintained or 
        controlled by or acting on behalf of 1 or more 
        candidates or individuals holding Federal office, shall 
        not--
                  (A) solicit, receive, direct, transfer, or 
                spend funds in connection with an election for 
                Federal office, including funds for any Federal 
                election activity, unless the funds are subject 
                to the limitations, prohibitions, and reporting 
                requirements of this Act; or
                  (B) solicit, receive, direct, transfer, or 
                spend funds in connection with any election 
                other than an election for Federal office or 
                disburse funds in connection with such an 
                election unless the funds--
                          (i) are not in excess of the amounts 
                        permitted with respect to contributions 
                        to candidates and political committees 
                        under paragraphs (1), (2), and (3) of 
                        section 315(a); and
                          (ii) are not from sources prohibited 
                        by this Act from making contributions 
                        in connection with an election for 
                        Federal office.
          (2) State law.--Paragraph (1) does not apply to the 
        solicitation, receipt, or spending of funds by an 
        individual described in such paragraph who is also a 
        candidate for a State or local office solely in 
        connection with such election for State or local office 
        if the solicitation, receipt, or spending of funds is 
        permitted under State law and refers only to such State 
        or local candidate, or to any other candidate for the 
        State or local office sought by such candidate, or 
        both.
          (3) Fundraising events.--Notwithstanding paragraph 
        (1) or subsection (b)(2)(C), a candidate or an 
        individual holding Federal office may attend, speak, or 
        be a featured guest at a fundraising event for a State, 
        district, or local committee of a political party.
          (4) Limitation applicable for purposes of 
        solicitation of donations by individuals to certain 
        organizations.--In the case of the solicitation of 
        funds by any person described in paragraph (1) on 
        behalf of any entity described in subsection (d) which 
        is made specifically for funds to be used for 
        activities described in clauses (i) and (ii) of section 
        301(20)(A), or made for any such entity which engages 
        primarily in activities described in such clauses, the 
        limitation applicable for purposes of a donation of 
        funds by an individual shall be the limitation set 
        forth in section 315(a)(1)(D).
          (5) Treatment of amounts used to influence or 
        challenge state reapportionment.--Nothing in this 
        subsection shall prevent or limit an individual 
        described in paragraph (1) from soliciting or spending 
        funds to be used exclusively for the purpose of 
        influencing the reapportionment decisions of a State or 
        the financing of litigation which relates exclusively 
        to the reapportionment decisions made by a State.
  (f) State Candidates.--
          (1) In general.--A candidate for State or local 
        office, individual holding State or local office, or an 
        agent of such a candidate or individual may not spend 
        any funds for a communication described in section 
        301(20)(A)(iii) unless the funds are subject to the 
        limitations, prohibitions, and reporting requirements 
        of this Act.
          (2) Exception for certain communications.--Paragraph 
        (1) shall not apply to an individual described in such 
        paragraph if the communication involved is in 
        connection with an election for such State or local 
        office and refers only to such individual or to any 
        other candidate for the State or local office held or 
        sought by such individual, or both.

                 prohibition of contributions by minors

  Sec. 324. An individual who is 17 years old or younger shall 
not make a contribution to a candidate or a contribution or 
donation to a committee of a political party.

         regulations to prohibit efforts to evade requirements

  Sec. 325. The Commission shall promulgate regulations to 
prohibit efforts to evade or circumvent the limitations, 
prohibitions, and reporting requirements of this Act.

TITLE IV--GENERAL PROVISIONS

           *       *       *       *       *       *       *

                         period of limitations

  Sec. 406. (a) No person shall be prosecuted, tried, or 
punished for any violation of title III of this Act, unless the 
indictment is found or the information is instituted within [3] 
5 years after the date of the violation.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 607 OF TITLE 18, UNITED STATES CODE

Sec. 607. Place of solicitation

  [(a) It shall be unlawful for any person to solicit or 
receive any contribution within the meaning of section 301(8) 
of the Federal Election Campaign Act of 1971 in any room or 
building occupied in the discharge of official duties by any 
person mentioned in section 603, or in any navy yard, fort, or 
arsenal. Any person who violates this section shall be fined 
under this title or imprisoned not more than three years, or 
both.]
  (a) Prohibition.--
          (1) In general.--It shall be unlawful for any person 
        to solicit or receive a donation of money or other 
        thing of value in connection with a Federal, State, or 
        local election from a person who is located in a room 
        or building occupied in the discharge of official 
        duties by an officer or employee of the United States. 
        It shall be unlawful for an individual who is an 
        officer or employee of the Federal Government, 
        including the President, Vice President, and Members of 
        Congress, to solicit or receive a donation of money or 
        other thing of value in connection with a Federal, 
        State, or local election, while in any room or building 
        occupied in the discharge of official duties by an 
        officer or employee of the United States, from any 
        person.
          (2) Penalty.--A person who violates this section 
        shall be fined not more than $5,000, imprisoned more 
        than 3 years, or both.
  (b) The prohibition in subsection (a) shall not apply to the 
receipt of contributions by persons on the staff of a Senator 
or Representative in, or Delegate or Resident Commissioner to, 
the Congress or Executive Office of the President, provided, 
that such contributions have not been solicited in any manner 
which directs the contributor to mail or deliver a contribution 
to any room, building, or other facility referred to in 
subsection (a), and provided that such contributions are 
transferred within seven days of receipt to a political 
committee within the meaning of section 302(e) of the Federal 
Election Campaign Act of 1971.
                              ----------                              

             SECTION 315 OF THE COMMUNICATIONS ACT OF 1934

SEC. 315. FACILITIES FOR CANDIDATES FOR PUBLIC OFFICE.

  (a) In General.--If any licensee shall permit any person who 
is a legally qualified candidate for any public office to use a 
broadcasting station, he shall afford equal opportunities to 
all other such candidates for that office in the use of such 
broadcasting station: Provided, That such licensee shall have 
no power of censorship over the material broadcast under the 
provision of this section. No obligation is hereby imposed 
under this subsection upon any licensee to allow the use of its 
station by any such candidate. Appearance by a legally 
qualified candidate on any--
          (1) * * *

           *       *       *       *       *       *       *

  [(b) The charges]
  (b) Charges.--
          (1) In general.--Except as provided in paragraph (2), 
        the charges made for the use of any broadcasting 
        station by any person who is a legally qualified 
        candidate for any public office in connection with his 
        campaign for nomination for election, or election, to 
        such office shall not exceed--
          [(1)] (A) subject to paragraph (3), during the forty-
        five days preceding the date of a primary or primary 
        runoff election and during the sixty days preceding the 
        date of a general or special election in which such 
        person is a candidate, the lowest unit charge of the 
        station for the same class and amount of time for the 
        same period; and
          [(2)] (B) at any other time, the charges made for 
        comparable use of such station by other users thereof.
          (2) Television.--The charges made for the use of any 
        television broadcast station, or by a provider of cable 
        or satellite television service, to any person who is a 
        legally qualified candidate for any public office in 
        connection with the campaign of such candidate for 
        nomination for election, or election, to such office, 
        or to a national committee of a political party making 
        expenditures under section 315(d) of the Federal 
        Election Campaign Act of 1971 on behalf of such 
        candidate in connection with such campaign, shall not 
        exceed, during the periods referred to in paragraph 
        (1)(A), the lowest charge of the station (at any time 
        during the 180-day period preceding the date of the 
        use) for the same amount of time for the same period.
          (3) Content of broadcasts.--
                  (A) In general.--In the case of a candidate 
                for Federal office, such candidate shall not be 
                entitled to receive the rate under paragraph 
                (1)(A) or (2) for the use of any broadcasting 
                station unless the candidate provides written 
                certification to the broadcast station that the 
                candidate (and any authorized committee of the 
                candidate) shall not make any direct reference 
                to another candidate for the same office, in 
                any broadcast using the rights and conditions 
                of access under this Act, unless such reference 
                meets the requirements of subparagraph (C) or 
                (D).
                  (B) Limitation on charges.--If a candidate 
                for Federal office (or any authorized committee 
                of such candidate) makes a reference described 
                in subparagraph (A) in any broadcast that does 
                not meet the requirements of subparagraph (C) 
                or (D), such candidate shall not be entitled to 
                receive the rate under paragraph (1)(A) or (2) 
                for such broadcast or any other broadcast 
                during any portion of the 45-day and 60-day 
                periods described in paragraph (1)(A), that 
                occur on or after the date of such broadcast, 
                for election to such office.
                  (C) Television broadcasts.--A candidate meets 
                the requirements of this subparagraph if, in 
                the case of a television broadcast, at the end 
                of such broadcast there appears simultaneously, 
                for a period no less than 4 seconds--
                          (i) a clearly identifiable 
                        photographic or similar image of the 
                        candidate; and
                          (ii) a clearly readable printed 
                        statement, identifying the candidate 
                        and stating that the candidate has 
                        approved the broadcast and that the 
                        candidate's authorized committee paid 
                        for the broadcast.
                  (D) Radio broadcasts.--A candidate meets the 
                requirements of this subparagraph if, in the 
                case of a radio broadcast, the broadcast 
                includes a personal audio statement by the 
                candidate that identifies the candidate, the 
                office the candidate is seeking, and indicates 
                that the candidate has approved the broadcast.
                  (E) Certification.--Certifications under this 
                section shall be provided and certified as 
                accurate by the candidate (or any authorized 
                committee of the candidate) at the time of 
                purchase.
                  (F) Definitions.--For purposes of this 
                paragraph, the terms ``authorized committee'' 
                and ``Federal office'' have the meanings given 
                such terms by section 301 of the Federal 
                Election Campaign Act of 1971 (2 U.S.C. 431).
  (c) Preemption.--
          (1) In general.--Except as provided in paragraph (2), 
        a licensee shall not preempt the use of a television 
        broadcast station, or a provider of cable or satellite 
        television service, by an eligible candidate or 
        political committee of a political party who has 
        purchased and paid for such use pursuant to subsection 
        (b)(2).
          (2) Circumstances beyond control of licensee.--If a 
        program to be broadcast by a television broadcast 
        station, or a provider of cable or satellite television 
        service, is preempted because of circumstances beyond 
        the control of the station, any candidate or party 
        advertising spot scheduled to be broadcast during that 
        program may also be preempted.
  (d) Random Audits.--
          (1) In general.--During the 45-day period preceding a 
        primary election and the 60-day period preceding a 
        general election, the Commission shall conduct random 
        audits of designated market areas to ensure that each 
        television broadcast station, and provider of cable or 
        satellite television service, in those markets is 
        allocating television broadcast advertising time in 
        accordance with this section and section 312.
          (2) Markets.--The random audits conducted under 
        paragraph (1) shall cover the following markets:
                  (A) At least 6 of the top 50 largest 
                designated market areas (as defined in section 
                122(j)(2)(C) of title 17, United States Code).
                  (B) At least 3 of the 51-100 largest 
                designated market areas (as so defined).
                  (C) At least 3 of the 101-150 largest 
                designated market areas (as so defined).
                  (D) At least 3 of the 151-210 largest 
                designated market areas (as so defined).
          (3) Broadcast stations.--Each random audit shall 
        include each of the 3 largest television broadcast 
        networks, 1 independent network, and 1 cable network.
  (e) Political Record.--
          (1) In general.--A licensee shall maintain, and make 
        available for public inspection, a complete record of a 
        request to purchase broadcast time that--
                  (A) is made by or on behalf of a legally 
                qualified candidate for public office; or
                  (B) communicates a message relating to any 
                political matter of national importance, 
                including--
                          (i) a legally qualified candidate;
                          (ii) any election to Federal office; 
                        or
                          (iii) a national legislative issue of 
                        public importance.
          (2) Contents of record.--A record maintained under 
        paragraph (1) shall contain information regarding--
                  (A) whether the request to purchase broadcast 
                time is accepted or rejected by the licensee;
                  (B) the rate charged for the broadcast time;
                  (C) the date and time on which the 
                communication is aired;
                  (D) the class of time that is purchased;
                  (E) the name of the candidate to which the 
                communication refers and the office to which 
                the candidate is seeking election, the election 
                to which the communication refers, or the issue 
                to which the communication refers (as 
                applicable);
                  (F) in the case of a request made by, or on 
                behalf of, a candidate, the name of the 
                candidate, the authorized committee of the 
                candidate, and the treasurer of such committee; 
                and
                  (G) in the case of any other request, the 
                name of the person purchasing the time, the 
                name, address, and phone number of a contact 
                person for such person, and a list of the chief 
                executive officers or members of the executive 
                committee or of the board of directors of such 
                person.
          (3) Time to maintain file.--The information required 
        under this subsection shall be placed in a political 
        file as soon as possible and shall be retained by the 
        licensee for a period of not less than 2 years.
  [(c)] (f) Definitions.--For purposes of this section--
          (1) the term ``broadcasting station'' includes a 
        community antenna television system, a television 
        broadcast station, and a provider of cable or satellite 
        television service; and
          (2) the term ``licensee'' and ``station licensee'' 
        when used with respect to a community antenna 
        television system mean the operator of such system.
  [(d)] (g) Regulations.--The Commission shall prescribe 
appropriate rules and regulations to carry out the provisions 
of this section.
                              ----------                              

                     TITLE 36, UNITED STATES CODE

           *       *       *       *       *       *       *

    SUBTITLE I--PATRIOTIC AND NATIONAL OBSERVANCES AND CEREMONIES

           *       *       *       *       *       *       *

              CHAPTER 5--PRESIDENTIAL INAUGURAL CEREMONIES

           *       *       *       *       *       *       *

Sec. 510. Disclosure of and prohibition on certain donations

  (a) In General.--A committee shall not be considered to be 
the Inaugural Committee for purposes of this chapter unless the 
committee agrees to, and meets, the requirements of subsections 
(b) and (c).
  (b) Disclosure.--
          (1) In general.--Not later than the date that is 90 
        days after the date of the Presidential inaugural 
        ceremony, the committee shall file a report with the 
        Federal Election Commission disclosing any donation of 
        money or anything of value made to the committee in an 
        aggregate amount equal to or greater than $200.
          (2) Contents of report.--A report filed under 
        paragraph (1) shall contain--
                  (A) the amount of the donation;
                  (B) the date the donation is received; and
                  (C) the name and address of the person making 
                the donation.
  (c) Limitation.--The committee shall not accept any donation 
from a foreign national (as defined in section 319(b) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441e(b))).

[Sec. 510.] Sec. 511. Authorization of appropriations

  (a) Authorization.--Necessary amounts are authorized to be 
appropriated--
          (1) * * *

           *       *       *       *       *       *       *

     MINORITY VIEWS OF STENY H. HOYER, CHAKA FATTAH, AND JIM DAVIS

    The ``Bipartisan Campaign Reform Act of 2001'' (H.R. 2356), 
sponsored by Rep. Christopher Shays and Rep. Martin Meehan, is 
a serious, comprehensive proposal that addresses two of the 
most serious ills infecting American political campaigns today: 
(1) unregulated soft money contributions and (2) undisclosed 
issue advocacy.
    There simply is too much special-interest money from too 
few sources flowing into party committees in the form of soft 
money, and onto the airwaves in the form of thinly disguised 
political advertisements paid for with unrestricted dollars 
from entities that are permitted, under today's broken campaign 
finance regime, to disclose as much or as little about their 
operations as they choose. Many of these entities are barred by 
the Federal Election Campaign Act (FECA) from raising and 
spending any money to influence federal campaigns. Increased 
reliance on soft money shows no signs of abating, and is of 
particular concern.
    On June 28, 2001, the Committee Majority chose to report 
H.R. 2356 with an unfavorable recommendation. Given that nearly 
identical legislation passed the House of Representatives by 
strong bipartisan majorities in 1998 and 1999, we find it 
unfortunate that Committee Majority acted as it did.
    We urge our colleagues in both parties to ignore the 
Committee's unfavorable recommendation and judge H.R. 2356 on 
one simple strength: its ambition to require that all 
activities aimed at influencing federal elections be paid for 
only with fully disclosed and reasonably limited amounts of 
money known as ``hard money'' and to eliminate the most 
pernicious factor in today's political system, the unlimited, 
largely undisclosed money known as ``soft money.''

                               soft money

    H.R. 2356 is the only bill reported by the Committee that 
contains a comprehensive ban on soft money. Simply put, Shays-
Meehan not only limits but outlaws all soft money contributions 
to the national parties, ensuring that every penny collected by 
the parties conforms with FECA. In practice, no individual, 
however wealthy, could contribute more than $75,000 in a two-
year election cycle to influence federal elections under Shays-
Meehan. No corporation or union that has exploited the soft 
money loophole to get around FECA's prohibition on direct 
giving would be permitted to influence federal campaigns except 
through a federally regulated political action committee.
    H.R. 2356's soft money ban contrasts sharply with H.R. 
2360, the other bill reported by the Committee, which would 
place a very high $75,000 annual cap on soft money to the 
national parties. In a nation where the median income for a 
family of four is approximately $59,000, we believe a cap of 
$75,000 is not a cap at all. To make matters worse, H.R. 2356's 
``cap'' would apply to each of three national committee in the 
two parties. In theory, a corporation, union, or wealthy 
individual could give as much as $900,000 in soft money in a 
two-year election cycle, assuming it sought to curry favor with 
both parties and contributed the maximum amount to each. 
Combined with H.R. 2360's proposed increases in hard money 
contributions, a wealthy individual could contribute as much as 
$1,335,000 in hard and soft money in a two-year election 
cycles.
    The very nature of soft money--unlimited contributions from 
the corporations and unions that are prohibited from making 
direct ``hard money'' contributions--violates the spirit and 
intenet of the modern federal election system that traces its 
origins back to 1907, when Republican President Theodore 
Roosevelt signed legislation prohibiting corporations and 
insurance companies from using treasury money to influence 
federal elections.
    Soft money includes money from corporations and unions that 
is not supposed to be influencing federal elections at all. 
Yet, it has gradually come to be the dominant form of campaign 
dollars in the 27 years since Congress last enacted 
comprehensive campaign finance reform. H.R. 2356 addresses 
public concerns over soft money by prohibiting soft money 
contributions to national political parties and curtailing soft 
money activities conducted by state and local parties.
    Soft money contributions to political parties exist solely 
because of an unfortunate loophole opened by the Federal 
Election Commission that elections lawyers, political 
consultants, and wealthy special interests have exploited with 
unusual skill and sophistication. With each passing election 
cycle, soft money contributions to state and national parties 
have increased in volume until a trickle has turned into a 
torrent. Between 1996 and 2000, the total amount of soft money 
contributed to national parties grew from approximately $250 
million to over $500 million. Given the vast number of uses to 
which political parties may legally put soft money, and the 
relative ease with which they can raise soft money compared to 
hard money, it is not surprising that parties have developed a 
significant dependence on a handful of super-wealth soft money 
contributors to finance their political and administrative 
operations.
    This increase has led to more direct and blatant attempts 
by contributors to purchase access and influence the political 
process, and has driven an ever-increasing ``dollars race'' 
between the party committees. In fact, the amounts of money 
sought and the increasingly constant appeals for soft dollars 
have led many leaders in the business community to join the 
call for reforming the soft money system.
    H.R. 2356 would prohibit all soft money contributions from 
corporations, labor groups, and wealthy individuals. It would 
also end virtually all ``backdoor'' soft money to state, local, 
and district parties, while recognizing the role that sharply 
limited soft money can play in legitimate voter turnout and 
registration efforts at the state and local level. To that end, 
H.R. 2356 allows soft money contributions to state and local 
parties to be used for limited voter registration and get-out-
the-vote activity, but caps it at $10,000 per donor. 
Furthermore, the measure doubles from $5,000 to $10,000 the 
amount of hard money individuals may contribute to state 
parties.
    In short, under the Shays-Meehan bill, national, state, 
local, and district parties could continue to raise and spend 
sufficient resources to register and educate voters, support 
candidates, and promote broad-based platforms that are central 
ingredients of a healthy and vital representative-democracy.

                             Issue Advocacy

    The Shays-Meehan bill also would provide a reasonable 
solution to the problem of unlimited and undisclosed 
advertising that fails to qualify as ``express advocacy'' under 
federal election law, even though it clearly is designed to 
influence the outcome of an election. As a result of a series 
of court decisions, the term ``express advocacy'' currently 
refers only to those communications that include the so-called 
``magic words,'' such as ``vote for candidate X'' or ``defeat 
candidate Y.''
    There are three consequences when advertising does not meet 
this narrow express advocacy standard: First, it may be paid 
for with unlimited amounts of money from any source, including 
corporations and labor groups. Second, neither the amount spent 
nor the source of the funding need be disclosed to the public. 
Third, the advertising is not required to carry a truthful 
disclaimer to inform the voter who actually paid for the 
communication.
    Since 1996, so-called ``issue advertising'' abuses have 
exploded. The Annenberg Public Policy Center estimates that 
between $275 million and $340 million was spent on issue 
advertising in 1998, the last election year for which data are 
available. However, no one can be certain of the exact figure 
since no disclosure is required. Both political parties, aswell 
as a wide range of interest groups and entities whose origin and 
purpose remain largely a mystery, have exploited issue advocacy in 
recent elections to run ads that clearly are designed to advocate the 
election or defeat of specific federal candidates, but evade federal 
election regulations by avoiding the ``magic words.'' Since these ads 
stop just short of using the magic words, their sponsors are not 
subject to full public disclosure, the ads need carry no disclaimer, 
and they may be paid for with unlimited dollars from any source.
    Insufficient disclosure is a serious problem that real 
reform must address. Messages are not identifiable for most 
audiences until they are sourced. As a result, viewers rarely 
interpret messages without interpreting the credibility of the 
source who is sponsoring the message. As long as pseudonymous 
groups are able to communicate to the electorate, the ability 
of the electorate to judge the legitimacy of the message that 
is being offered is seriously weakened. Voters cannot 
confidently determine how much credibility to lend a 
communication when they do not know the source of the 
communication. In short, without real disclosure of the sources 
of money funding sham issue ads, the ability of the voters to 
make informed decisions is severely undermined.
    H.R. 2356 addresses the problem by providing a clear 
distinction between advertising seeking to persuade voters on 
issues and ``sham'' issue advertising--advertising that clearly 
is intended to promote the election or defeat of a federal 
candidate. It would create a new class of ads called 
``electioneering communications,'' defined as `'broadcast, 
cable, or satellite ads that mention the name or show the 
likeness of a clearly identified federal candidate within 60 
days of a general or 30 days of a primary, and is targeted at 
the candidate's state or district.'' Under this provision, 
corporations and labor unions would have to finance their ads 
through their PAC's, and a range of other groups would have to 
disclose their spending and donors.
    It bears emphasizing that passage of the `'electioneering 
communications'' provision would in no way abridge the free 
speech rights of any group or individual. For those groups and 
individuals interested in promoting the election or defeat of 
the federal candidates of their choice, it would simply require 
that they play by the same rules that currently apply to 
candidates and political action committees. These modest 
burdens placed on groups and individuals seeking to engage in 
what most reasonable people already assume is express advocacy 
will not limit their ability to reach voters. In addition, the 
increased disclosure and disclaimer requirements will cast 
sunlight on political spending and fundraising by interest 
groups, providing voters with valuable information with which 
to judge their credibility and motives.

                            Other Provisions

    Beyond correcting major systemic problems in today's 
campaign finance system, H.R. 2356 would accomplish several 
other necessary but less crucial fixes to the campaign finance 
system.
    For example, the measure retains the 1974 $1,000 limit on 
individual contributions per election to House candidates, 
while acknowledging that 27 years of inflation has sharply 
reduced its purchasing power. To account for future inflation, 
H.R. 2356 indexes this $1,000 limit, a sensible provision that 
ensures increases in the hard money limit do not outpace the 
economy as a whole and widen the gap between wealthy 
contributors and contributors of more modest means.
    H.R. 2356 also provides for better and more vigorous 
enforcement of federal election laws, tougher penalties for 
those who are found to have knowingly broken the laws, and more 
rapid disclosure of campaign activities.

                               Conclusion

    True campaign finance reform aims to accomplish three 
goals:
          1. Completely end the unregulated, unlimited flow of 
        soft money into the political parties;
          2. Require that political advertising that any 
        reasonable viewer would say are designed to influence a 
        federal election be paid for with hard money.
          3. Respect the right of organizations to communicate 
        with their members about key issues affecting them.
    In our view, H.R. 2356 is the only measure before the House 
that deserves to be called true reform. We are confident our 
colleagues on both sides of the aisle will agree. If history is 
any guide, they will. In 1998 and 1999, a similar Shays-Meehan 
bill passed 252-179 and 252-177, respectively. We urge our 
colleague to show this same strong bipartisan support this year 
and pass H.R. 2356.

                                   Steny H. Hoyer.
                                   Chaka Fattah.
                                   Jim Davis.

                                  

```