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[House Report 107-135]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-135

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

 
   PROVIDING FOR CONSIDERATION OF H.R. 2356, THE BIPARTISAN CAMPAIGN 
                           REFORM ACT OF 2001

                                _______
                                

   July 12 (legislative day, July 11), 2001.--Referred to the House 
                   Calendar and ordered to be printed

                                _______
                                

              Mr. Reynolds, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 188]

    The Committee on Rules, having had under consideration 
House Resolution   , by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 2356, the 
Bipartisan Campaign Reform Act of 2001, under a structured 
rule. The rule provides one hour of general debate equally 
divided and controlled by the chairman and ranking minority 
member of the Committee on House Administration. The rule 
waives all points of order against consideration of the bill.
    The rule makes in order only those amendments printed in 
the Rules Committee report accompanying the resolution, which 
may be offered only in the order printed in the report, may be 
offered only by a Member designated in the report, shall be 
considered as read, shall be debatable for the time specified 
in the report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question in the 
House or in the Committee of the Whole. The rule waives all 
points of order against the amendments printed in the report. 
The rule provides one motion to recommit with or without 
instructions.
    The rule further provides that after passage of H.R. 2356, 
it shall be in order to consider in the House S. 27 and waives 
all points of order against the Senate bill and against its 
consideration. The rule makes in order a motion to strike all 
after the enacting clause of the Senate bill and insert in lieu 
thereof the provisions of H.R. 2356 as passed by the House, and 
waives all points of order against the motion to strike and 
insert. Finally, the rule provides that, if the motion to 
strike and insert is adopted and the Senate bill, as amended, 
is passed, it shall be in order to move that the House insist 
on its amendment and request a conference with the Senate 
thereon.
    The waiver of all points of order includes a waiver of 
clause 4(a)(1) of rule XIII (requiring a three-day layover of 
the committee report), which is necessary because the report 
was filed on Tuesday, July 10, 2001, and the bill may be 
considered on the House floor as early as Thursday, July 12, 
2001. The waiver also includes a waiver of clause 3(b) of rule 
XIII (requiring the inclusion in the report of any record votes 
on a motion to report, or on any amendment to a bill reported 
from committee), which is necessary because the report failed 
to contain an accurate report of record votes, and clause 
3(c)(4) of rule XIII (requiring the inclusion in the report of 
a statement of general performance goals and objectives for 
which the measure authorizes funding), which is necessary 
because the report failed to contain a report on performance 
goals. Finally, the waiver includes a waiver of clause 3(d)(2) 
of rule XIII (requiring the availability of a cost estimate in 
the report).

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 23

    Date: July 11, 2001.
    Measure: H.R. 2356.
    Motion by: Mr. Frost.
    Summary of motion: To amend the rule to strike the 
individual amendments offered by Representative Shays and make 
in order the amendment offered by Representative Shays that 
would allow Representative Shays to make modifications en bloc 
to this bill.
    Results: Defeated 2 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 24

    Date: July 11, 2001.
    Measure: H.R. 2356.
    Motion by: Mr. Frost.
    Summary of motion: To make in order the amendments offered 
by Representative Doggett that would eliminate duplicative 
disclosure reporting requirements by state and local candidates 
and political action committees organized under section 527 of 
the Internal Revenue Code.
    Results: Defeated 2 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 25

    Date: July 11, 2001.
    Measure: H.R. 2356.
    Motion by: Mr. Hastings (FL).
    Summary of motion: To make in order the amendments offered 
by Representative Hastings (FL) that would create a federal 
grant program to provide a total of $2.4 billion to state and 
local governments to assist them in upgrading their voting 
systems, to be coordinated and administered by the FEC. State 
and local governments would be able to apply for funds of up to 
80 percent of the total cost of upgrading their voting systems. 
A clause is included to prohibit duplication of funds from 
federal and state funding programs.
    Results: Defeated 2 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; Hastings (FL)--Yea; Dreier--Nay.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

All amendments debatable for 10 minutes unless otherwise specified

    Shays/Meehan--Strikes the 50% allocation requirement from 
323(b)(2) of section 101(a) of the bill. (20 minutes)
    Shays/Meehan--Ensures a federal candidate could continue to 
raise funds allowable in state elections in order to retire 
debt incurred in a state or local race.
    Shays/Meehan--Amends section 323(e)(4) to clarify that 
federal officeholders and candidates may make general 
solicitations of funds for 501(c) organizations, up to $20,000 
per year specifically for use in get-out-the-vote and voter 
registration activities. (20 minutes)
    Shays/Meehan--Strikes 323(e)(5), Treatment of Amounts Used 
to Influence or Challenge State Reapportionment.
    Shays/Meehan--Maintains the $5,000 threshold for reporting 
by party committees.
    Shays/Meehan--Clarifies that the definition of what 
constitutes an independent expenditure is not changed from 
current law.
    Shays/Meehan--Clarifies that a party must choose whether to 
make independent or coordinated expenditures as of the date of 
nomination of a candidate.
    Shays/Meehan--Clarifies that an expenditure coordinated 
with a party committee constitutes a contribution to the party.
    Linder/Schrock--Bans the use of certain funds by 
corporations and labor unions for communications by a 
corporation to its stockholders or personnel or by a union to 
its members and their families, or nonpartisan registration and 
get-out-the-vote campaigns by a corporation or a labor 
organization.
    Hutchinson/Brady (TX)/Hulshof/Graham--Amends section 
308(a)(1) of the bill to increase contribution limits for House 
candidates from $1,000 to $2,000.
    Shays/Meehan--Increases the aggregate limit on individual 
contributions to $95,000 per cycle including not more than 
$37,500 per cycle to candidates, and reserving $20,000 per 
cycle for the national party committees.
    Shays/Meehan--Strikes section 315(b)(3), regarding 
specific, additional sentencing enhancement for any violation 
by a person who is a candidate or a high-ranking campaign 
official for such candidate.
    English--Prohibits the practice of bundling (making a 
contribution through an intermediary or conduit), but excludes 
from the prohibition facilitation of contributions by offering 
advice to another person as to how the other person may make a 
contribution or providing addressed mailing material for use by 
the other person in making a contribution.
    Shays/Meehan--Strikes section 320 (Conduit Contributions).
    Shays/Meehan--Strikes section 321 (Joint Fundraising 
Committees).
    Shays/Meehan--Strikes section 322 (Schemes to Evade).
    Shaw/Calvert--Requires candidates running for the office of 
Representatives in Congress to accept no less than 50% of the 
total contributions accepted from all sources from within the 
state in which the candidate is running for office.
    Bereuter/Wicker--Prohibits foreign individual campaign 
contributions to federal candidates. Therefore, only U.S. 
citizens and U.S. nationals (as defined by section 101(a)(22) 
of the Immigration and Nationality Act) will be allowed to make 
an individual contribution to a candidate running for federal 
office.
    Flake--Narrows the exemption given to media outlets such 
that a media outlet would not be exempt if it: is owned, 
operated, or controlled by a corporation; derives income from 
sources other than advertising or subscriptions; receives 
government funds; or lobbies the government.
    Shays/Meehan--Makes a technical correction to section 402, 
Effective Date, by changing the date in (b)(2) from March 31, 
2001, to March 31, 2002.
    Doolittle--Amendment in the Nature of a Substitute. Removes 
all limitations on federal election contributions after 2002, 
terminates taxpayer financing of presidential election 
campaigns effective in 2002, requires political parties to 
distinguish between federal and non-federal funds and requires 
each state party to file with the FEC a copy of the same 
disclosure form it files with the state, requires electronic 
filing of campaign reports to be filed every 24-hours during 
the three months preceding an election, requires the FEC to 
post all campaign reports on the Internet, bars acceptance of 
campaign contributions unless certain disclosure requirements 
are met, and prohibits the involuntary assessment of funds by 
labor organizations for political activities and 
requiresseparate, prior, written, voluntary authorization of union 
members to collect or assess any dues, fee or payment that will be used 
for political activities. (30 minutes)
    Ney/Wynn--Amendment in the Nature of a Substitute. Bans 
soft money contributions to national political parties for 
federal election activities, including broadcast issue ads; 
limits national party use of soft money to generic party voter 
registration and get-out-the-vote drives, plus fundraising and 
overhead; bans soft money contributions of $75,000 or more to a 
national political party committee for any purpose; maintains 
the current $1,000 limit on hard money contributions from 
individuals to candidates; increases hard money contribution 
limits for contributions to political parties to partially 
account for inflation; provides for future annual indexing; 
requires disclosure within 24 hours to the FEC of name, 
address, phone number, list of officers, and the amount spent 
for ads by any group that purchases broadcast issue advertising 
that mentions a federal candidate within 120 days of a federal 
election; and requires disclosure to the FEC of identifying 
information about groups that spend over $50,000 for targeted 
mass communications that mention a federal candidate within 120 
days of a federal election. (60 minutes)

            TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

 1. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               20 minutes

    Amend section 323(b)(2) of the Federal Election Campaign 
Act of 1971, as proposed to be added by section 101(a) of the 
bill, to read as follows:
          ``(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 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) among amounts--
                          ``(i) which consist solely of 
                        contributions subject to the 
                        limitations, prohibitions, and 
                        reporting requirements of this Act 
                        (other than amounts described in 
                        subparagraph (B)(iii)); and
                          ``(ii) other amounts which are not 
                        subject to the limitations, 
                        prohibitions, and reporting 
                        requirements of this Act (other than 
                        any requirements of this subsection).
                  ``(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 described in 
                        subparagraph (A)(ii) 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.
                              ----------                              

 2. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 Minutes

    In section 323(e)(2) of the Federal Election Campaign Act 
of 1971, as proposed to be added by section 101(a) of the bill, 
insert ``or was'' after ``who is''.
                              ----------                              

 3. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               20 Minutes

    Amend section 323(e)(4) of the Federal Election Campaign 
Act of 1971, as proposed to be added by section 101(a) of the 
bill, to read as follows:
          ``(4) Permitting certain solicitations.--
                  ``(A) General solicitations.--Notwithstanding 
                any other provision of this subsection, an 
                individual described in paragraph (1) may make 
                a general solicitation of funds on behalf of 
                any entity described in subsection (d)(1) 
                (other than an entity whose principal purpose 
                is to conduct activities described in clauses 
                (i) and (ii) of section 301(20)(A)) where such 
                solicitation does not specify how the funds 
                will or should be spent.
                  ``(B) Certain specific solicitations.--In 
                addition to the general solicitations permitted 
                under subparagraph (A), an individual described 
                in paragraph (1) may make a solicitation 
                explicitly to obtain funds for carrying out the 
                activities described in clauses (i) and (ii) of 
                section 301(20)(A), or for an entity whose 
                principal purpose is to conduct such 
                activities, if--
                          ``(i) the solicitation is made only 
                        to individuals; and
                          ``(ii) the amount solicited from any 
                        individual during any calendar year 
                        does not exceed $20,000.
                              ----------                              

 4. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

    In section 323(e) of the Federal Election Campaign Act of 
1971, as proposed to be added by section 101(a) of the bill, 
strike paragraph (5).
                              ----------                              

 5. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

    In section 304(e)(2)(A) of the Federal Election Campaign 
Act of 1971, as proposed to be added by section 103(a) of the 
bill, strike the period at the end and insert the following: 
``, unless the aggregate amount of such receipts and 
disbursements during the calendar year is less than $5,000.''.
                              ----------                              

 6. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

    In section 301(17)(B) of the Federal Election Campaign Act 
of 1971, as proposed to be amended by section 211 of the bill, 
strike ``, at the request or suggestion of such candidate, or 
pursuant to any general or particular understanding with,'' and 
insert ``or at the request or suggestion of such candidate,''.
                              ----------                              

 7. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

    Amend section 315(d)(4) of the Federal Election Campaign 
Act of 1971, as proposed to be added by section 213(2), to read 
as follows:
          ``(4) Independent versus coordinated expenditures by 
        party.--
                  ``(A) In general.--On or after the date on 
                which a political party nominates a candidate, 
                no committee of the political party may make--
                          ``(i) any coordinated expenditure 
                        under this subsection with respect to 
                        the candidate during the election cycle 
                        at any time after it makes any 
                        independent expenditure (as defined in 
                        section 301(17)) with respect to the 
                        candidate during the election cycle; or
                          ``(ii) any independent expenditure 
                        (as defined in section 301(17)) with 
                        respect to the candidate during the 
                        election cycle at any time after it 
                        makes any coordinated expenditure under 
                        this subsection with respect to the 
                        candidate during the election cycle.
                  ``(B) 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.
                  ``(C) Transfers.--A committee of a political 
                party that makes coordinated expenditures under 
                this subsection 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.''.
                              ----------                              

 8. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 Minutes

    In section 214, strike subsections (a) through (c) and 
insert the following:
    (a) In General.--Section 315(a)(7)(B) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(7)(B)) is 
amended--
          (1) by redesignating clause (ii) as clause (iii); and
          (2) by inserting after clause (i) the following new 
        clause:
                          ``(ii) expenditures made by any 
                        person (other than a candidate or 
                        candidate's authorized committee) in 
                        cooperation, consultation, or concert, 
                        with, or at the request or suggestion 
                        of, a national, State, or local 
                        committee of a political party, shall 
                        be considered to be contributions made 
                        to such party committee; and''.
    (b) Repeal of Current Regulations.--The regulations on 
coordinated communications paid for by persons other than 
candidates, authorized committees of candidates, and party 
committees adopted by the Federal Election Commission and 
published in the Federal Register at page 76138 of volume 65, 
Federal Register, on December 6, 2000, are repealed as of 90 
days after the effective date of this Act.
    (c) Regulations by the Federal Election Commission.--Within 
90 days of the effective date of this Act, the Federal Election 
Commission shall promulgate new regulations on coordinated 
communications paid for by persons other than candidates, 
authorized committees of candidates, and party committees. The 
regulations shall not require agreement or formal collaboration 
to establish coordination. In addition to any subject 
determined by the Commission, the regulations shall address--
          (1) payments for the republication of campaign 
        materials;
          (2) payments for the use of a common vendor;
          (3) payments for communications directed or made by 
        persons who previously served as an employee of a 
        candidate or a political party; and
          (4) payments for communications made by a person 
        after substantial discussion about the communication 
        with a candidate or a political party.
                              ----------                              

 9. An Amendment To Be Offered by Representative Linder of Georgia, or 
  Representative Schrock of Virginia, or a Designee, Debatable for 10 
                                Minutes

    Add at the end of title II the following new subtitle (and 
conform the table of contents accordingly):

Subtitle C--Ban on Use of Funds by Corporations and Labor Organizations 
                         for Certain Activities

SEC. 221. BAN ON USE OF FUNDS BY CORPORATIONS AND LABOR ORGANIZATIONS 
                    FOR CERTAIN ACTIVITIES.

    Section 316(b)(2) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441b(b)(2)) is amended by striking ``(A) 
communications'' and all that follows through ``and (C)''.
                              ----------                              

    10. An Amendment To Be Offered by Representative Hutchinson of 
 Arkansas, or Representative Brady of Texas, or a Designee, Debatable 
                             for 10 Minutes

    Amend section 308(a)(1) to read as follows:
          (1) in subparagraph (A), by striking ``$1,000'' and 
        inserting ``$2,000''; and
                              ----------                              

11. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 Minutes

    Amend section 308(b) to read as follows:
    (b) Increase in Annual Aggregate Limit on Individual 
Contributions.--Section 315(a)(3) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is amended to read 
as follows:
          ``(3) During any 2-calendar year period, no 
        individual may make contributions aggregating more 
        than--
                  ``(A) $37,500, in the case of contributions 
                to candidates and the authorized committees of 
                candidates; and
                  ``(B) $57,500, in the case of any other 
                contributions, of which not more than $37,500 
                may be attributable to contributions to 
                political committees which are not political 
                committees of national political parties.''.
                              ----------                                

12. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

  In section 315(b), strike paragraph (3).
                              ----------                              

      13. An Amendment To Be Offered by Representative English of 
          Pennsylvania, or a Designee Debatable for 10 minutes

  Amend section 320 to read as follows (and conform the table 
of contents accordingly):

SEC. 320. PROHIBITING BUNDLING OF CONTRIBUTIONS.

  Section 315(a)(8) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441a(a)(8)) is amended to read as follows:
          ``(8) No person may make a contribution through an 
        intermediary or conduit, except that a person may 
        facilitate a contribution by providing--
          ``(A) advice to another person as to how the other 
        person may make a contribution; and
          ``(B) addressed mailing material or similar items to 
        another person for use by the other person in making a 
        contribution.''.
                              ----------                              

14. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

  Strike section 320.
                              ----------                              

15. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

  Strike section 321.
                              ----------                              

16. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 minutes

  Strike section 322.
                              ----------                              

 17. An Amendment To Be Offered by Representative Shaw of Florida, or 
 Representative Calvert of California, or a Designee, Debatable for 10 
                                minutes

  Add at the end of title III the following new section:

SEC. 323. REQUIRING MAJORITY OF AMOUNT OF CONTRIBUTIONS ACCEPTED BY 
                    CONGRESSIONAL CANDIDATES TO COME FROM IN-STATE 
                    RESIDENTS.

  (a) In General.--Section 315 of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a), as amended by section 304(a), is 
further amended by adding at the end the following new 
subsection:
  ``(k)(1) The total amount of contributions accepted with 
respect to an election by a candidate for the office of Senator 
or the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress from in-State individual 
residents shall be at least 50 percent of the total amount of 
contributions accepted from all sources.
  ``(2) If a candidate in an election makes expenditures of 
personal funds (including contributions by the candidate or the 
candidate's spouse to the candidate's authorized campaign 
committee) in an amount in excess of $250,000, paragraph (1) 
shall not apply with respect to any opponent of the candidate 
in the election.
    ``(3) In determining the amount of contributions accepted 
by a candidate for purposes of paragraph (1), the amounts of 
any contributions made by a political committee of a political 
party shall be allocated as follows:
          ``(A) 50 percent of such amounts shall be deemed to 
        be contributions from in-State individual residents.
          ``(B) 50 percent of such amounts shall be deemed to 
        be contributions from persons other than in-State 
        individual residents.
    ``(4) As used in this subsection, the term `in-State 
individual resident' means an individual who resides in the 
State in which the election involved is held.''.
    (b) Reporting Requirements.--Section 304 of such Act (2 
U.S.C. 434), as amended by sections 103, 201, 212, and 309(b), 
is further amended by adding at the end the following new 
subsection:
    ``(i)(1) Each principal campaign committee of a candidate 
for the Senate or the House of Representatives shall include 
the following information in the first report filed under 
subsection (a)(2) which covers the period which begins 19 days 
before an election and ends 20 days after the election:
          ``(A) The total contributions received by the 
        committee with respect to the election involved from 
        in-State individual residents (as defined in section 
        315(k)(4)), as of the last day of the period covered by 
        the report.
          ``(B) The total contributions received by the 
        committee with respect to the election involved from 
        all persons, as of the last day of the period covered 
        by the report.
    ``(2)(A) Each principal campaign committee of a candidate 
for the Senate or the House of Representatives shall submit a 
notification to the Commission of the first expenditure of 
personal funds (including contributions by the candidate or the 
candidate's spouse to the committee) by which the aggregate 
amount of personal funds expended (or contributed) with respect 
to the election exceeds $250,000.
    ``(B) Each notification under subparagraph (A)--
          ``(I) shall be submitted not later than 24 hours 
        after the expenditure or contribution which is the 
        subject of the notification is made; and
          ``(II) shall include the name of the candidate, the 
        office sought by the candidate, and the date of the 
        expenditure or contribution and amount of the 
        expenditure or contribution involved.''.
    (c) Penalty for Violation of Limits.--Section 309(d) of 
such Act (2 U.S.C. 437g(d)) is amended by adding at the end the 
following new paragraph:
    ``(4)(A) Any candidate who knowingly and willfully accepts 
contributions in excess of any limitation provided under 
section 315(k) shall be fined an amount equal to the greater of 
200 percent of the amount accepted in excess of the applicable 
limitation or (if applicable) the amount provided in paragraph 
(1)(A).
    ``(B) Interest shall be assessed against any portion of a 
fine imposed under subparagraph (A) which remains unpaid after 
the expiration of the 30-day period which begins on the date 
the fine is imposed.''.
                              ----------                              

18. An Amendment To Be Offered by Representative Bereuter of Nebraska, 
 or Representative Wicker of Mississippi, or a Designee, Debatable for 
                               10 Minutes

    Add at the end of III the following new section:

SEC. 323. PROHIBITING ALL INDIVIDUALS WHO ARE NOT CITIZENS OR NATIONALS 
                    OF THE UNITED STATES FROM MAKING CONTRIBUTIONS, 
                    DONATIONS, OR EXPENDITURES IN CONNECTION WITH 
                    ELECTIONS FOR FEDERAL OFFICE.

    Section 319(b)(2) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441e(b)(2)), as amended by section 318, is 
amended by striking the period at the end and inserting the 
following: ``, or in the case of an election for Federal 
office, an individual who is not a citizen of the United States 
or a national of the United States (as so defined).''.
                              ----------                              

19. An Amendment To Be Offered by Representative Flake of Arizona, or a 
                   Designee, Debatable for 10 Minutes

    Add at the end of title III the following new section:

SEC. 323. REPEAL OF GENERAL MEDIA EXEMPTION FOR CORPORATE MEDIA 
                    OUTLETS.

    (a) In General.--Section 301(9)(B)(i) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431(9)(B)(i)) is 
amended by inserting before the semicolon at the end the 
following: ``, or by any corporate media outlet''.
    (b) Definition of Electioneering Communications.--Section 
304(f)(3)(B)(i) of such Act, as added by section 201(a), is 
amended by inserting before the semicolon at the end the 
following: ``, or by any corporate media outlet''.
    (c) Corporate Media Outlet Defined.--Section 301 of such 
Act (2 U.S.C. 431), as amended by section 304(c), is further 
amended by adding at the end the following:
          ``(27) Corporate media outlet.--The term `corporate 
        media outlet' means a broadcasting station, newspaper, 
        magazine, or other periodical publication meeting any 
        of the following requirements:
                  ``(A) The station, newspaper, magazine, or 
                publication is owned, operated, or controlled 
                by another corporation or entity.
                  ``(B) The station, newspaper, magazine, or 
                publication derives income from any source 
                other than subscriptions to, or advertising 
                appearing within, the material it disseminates.
                  ``(C) The station, newspaper, magazine, or 
                publication receives funds directly or 
                indirectly from a government.
                  ``(D) The station, newspaper, magazine, or 
                publication directly or indirectly retains, 
                employs, or uses the services of a person who 
                is required to register under the Lobbying 
                Disclosure Act of 1995 (2 U.S.C. 1601 et seq.) 
                as a condition or result of providing the 
                services.''.
                              ----------                              

20. An Amendment To Be Offered by Representative Shays of Connecticut, 
or Representative Meehan of Massachusetts, or a Designee, Debatable for 
                               10 Minutes

    In section 402(b)(2), strike ``March 31, 2001'' and insert 
``March 31, 2002''.
                              ----------                              

     21. An Amendment To Be Offered by Representative Doolittle of 
          California, or a Designee, Debatable for 30 Minutes

    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Citizen Legislature and 
Political Freedom Act''.

SEC. 2. FINDINGS.

    Congress finds as follows:
          (1) The proliferation of campaign finance laws 
        (beginning with the Federal Election Campaign Act of 
        1971) and the proliferation of government regulations 
        promulgated pursuant to such laws have placed strict 
        limits on contributions by citizens to the candidates 
        of their choice, limits which have served to severely 
        hinder the ability of challengers to compete on equal 
        terms with incumbent politicians.
          (2) The contribution limits imposed by the Federal 
        Election Campaign Act of 1971 force candidates to raise 
        funds in small amounts subject to fixed limitations, 
        inevitably fostering a system under which wealthy 
        candidates and long-term incumbent politicians hold an 
        unfair financial advantage, which in turn serves to 
        discourage potential candidates from seeking public 
        office.
          (3) The current campaign finance laws have inhibited 
        the full and fair discussion of public policy issues, 
        as challengers who are not well known to the electorate 
        are forced by government regulation to attempt to amass 
        contributions from large numbers of donors at the 
        outset of a campaign. As a result, challengers who lack 
        the necessary resources to bring new issues into the 
        public debate often are eliminated from political 
        campaigns before their voices are even heard.
          (4) The regulation by government of political speech 
        through the regulation of campaign contributions and 
        expenditures is patently undemocratic because it favors 
        institutionalized special interests over grassroots and 
        citizen activity by imposing burdensome reporting and 
        disclosure requirements and stringent spending limits 
        on the political parties, thereby tilting the financial 
        and tactical advantage in political campaigns to well-
        financed interest groups and wealthy individuals.
          (5) The effect of the unreasonably low contribution 
        limits has been to force more contributors and 
        political activists to operate outside the system, 
        resulting in even less accountability and even greater 
        encouragement of irresponsible behavior.
          (6) The only way to encourage the robust discourse of 
        public issues and candidates, promote the free exchange 
        of political speech and ideas, protect constitutional 
        freedom, and foster a more informed electorate is to 
        lift all current restrictions on political candidate 
        and party contributions and expenditures and to provide 
        full, instantaneous disclosure of all contributions and 
        expenditures in elections for Federal office.

SEC. 3. REMOVAL OF LIMITATIONS ON FEDERAL ELECTION CAMPAIGN 
                    CONTRIBUTIONS.

    Section 315(a) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)) is amended by adding at the end the 
following new paragraph:
    ``(9) The limitations established under this subsection 
shall not apply to contributions made during calendar years 
beginning after 2002.'.'

SEC. 4. TERMINATION OF TAXPAYER FINANCING OF PRESIDENTIAL ELECTION 
                    CAMPAIGNS.

    (a) Termination of Designation of Income Tax Payments.--
Section 6096 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(d) Termination.--This section shall not apply to taxable 
years beginning after December 31, 2001.''
    (b) Termination of Fund and Account.--
          (1) Termination of presidential election campaign 
        fund.--
                  (A) In general.--Chapter 95 of subtitle H of 
                such Code is amended by adding at the end the 
                following new section:

``SEC. 9014. TERMINATION.

    The provisions of this chapter shall not apply with respect 
to any presidential election (or any presidential nominating 
convention) after December 31, 2002, or to any candidate in 
such an election.''
                  (B) Transfer of excess funds to general 
                fund.--Section 9006 of such Code is amended by 
                adding at the end the following new subsection:
    ``(d) Transfer of Funds Remaining After 2002.--The 
Secretary shall transfer all amounts in the fund after December 
31, 2002, to the general fund of the Treasury.''
          (2) Termination of account.--Chapter 96 of subtitle H 
        of such Code is amended by adding at the end the 
        following new section:

``SEC. 9043. TERMINATION.

    The provisions of this chapter shall not apply to any 
candidate with respect to any presidential election after 
December 31, 2002.''
    (c) Clerical Amendments.--
          (1) The table of sections for chapter 95 of subtitle 
        H of such Code is amended by adding at the end the 
        following new item:

``Sec. 9014. Termination.''

          (2) The table of sections for chapter 96 of subtitle 
        H of such Code is amended by adding at the end the 
        following new item:

``Sec. 9043. Termination.''

SEC. 5. DISCLOSURE REQUIREMENTS FOR CERTAIN SOFT MONEY EXPENDITURES OF 
                    POLITICAL PARTIES.

    (a) Transfers of Funds by National Political Parties.--
Section 304(b)(4) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 434(b)(4)) is amended--
          (1) by striking ``and'' at the end of subparagraph 
        (H);
          (2) by adding ``and'' at the end of subparagraph (I); 
        and
          (3) by adding at the end the following new 
        subparagraph:
                  ``(J) in the case of a political committee of 
                a national political party, all funds 
                transferred to any political committee of a 
                State or local political party, without regard 
                to whether or not the funds are otherwise 
                treated as contributions or expenditures under 
                this title;''.
    (b) Disclosure by State and Local Political Parties of 
Information Reported Under State Law.--Section 304 of such Act 
(2 U.S.C. 434), as amended by section 502(a) of the Department 
of Transportation and Related Agencies Act, 2001 (as enacted 
into law by reference under section 101(a) of Public Law 106-
346), is amended by adding at the end the following new 
subsection:
    ``(e) If a political committee of a State or local 
political party is required under a State or local law, rule, 
or regulation to submit a report on its disbursements to an 
entity of the State or local government, the committee shall 
file a copy of the report with the Commission at the time it 
submits the report to such an entity.''.
    (c) Effective Date.--The amendments made by this section 
shall apply with respect to elections occurring after January 
2003.

SEC. 6. PROMOTING EXPEDITED AVAILABILITY OF FEC REPORTS.

    (a) Mandatory Electronic Filing for All Reports.--
          (1) In general.--Section 304(a)(11) of the Federal 
        Election Campaign Act of 1971 (2 U.S.C. 434(a)(11)), as 
        amended by section 639(a) of the Treasury and General 
        Government Appropriations Act, 2000 (Public Law 106-
        58), is amended--
                  (A) in subparagraph (A), by striking ``a 
                person required to file--'' and all that 
                follows and inserting the following: ``each 
                person required to file a report under this Act 
                shall be required to maintain and file such 
                report in electronic form accessible by 
                computers.'';
                  (B) in subparagraph (C), by striking 
                ``designations, statements, and reports'' and 
                inserting ``documents''; and
                  (C) in subparagraph (D), by striking ``means, 
                with respect to'' and all that follows and 
                inserting the following: ``means any report, 
                designation, statement, or notification 
                required by this Act to be filed with the 
                Commission or the Secretary of the Senate.''.
          (2) Placement of all reports on internet.--Section 
        304(a)(11)(B) of such Act (2 U.S.C. 434(a)(11)(B)), as 
        amended by section 639(a) of the Treasury and General 
        Government Appropriations Act, 2000 (Public Law 106-
        58), is amended--
                  (A) by striking ``a designation, statement, 
                report, or notification'' and inserting ``each 
                report''; and
                  (B) by striking ``the designation, statement, 
                report, or notification'' and inserting ``the 
                report''.
    (b) Requiring Reports for All Contributions Made to Any 
Political Committee Within 90 Days of Election; Requiring 
Reports To Be Made Within 24 Hours.--Section 304(a)(6) of such 
Act (2 U.S.C. 434(a)(6)) is amended to read as follows:
    ``(6)(A) Each political committee shall notify the 
Secretary or the Commission, and the Secretary of State, as 
appropriate, in writing, of any contribution received by the 
committee during the period which begins on the 90th day before 
an election and ends at the time the polls close for such 
election. This notification shall be made within 24 hours (or, 
if earlier, by midnight of the day on which the contribution is 
deposited) after the receipt of such contribution and shall 
include the name of the candidate involved (as appropriate) and 
the office sought by the candidate, the identification of the 
contributor, and the date of receipt and amount of the 
contribution.
    ``(B) The notification required under this paragraph shall 
be in addition to all other reporting requirements under this 
Act.''.
    (c) Effective Date.--The amendment made by this section 
shall apply with respect to reports for periods beginning on or 
after January 1, 2003.

SEC. 7. WAIVER OF ``BEST EFFORTS'' EXCEPTION FOR INFORMATION ON 
                    IDENTIFICATION OF CONTRIBUTORS.

    (a) In General.--Section 302(i) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 432(i)) is amended--
          (1) by striking ``(i) When the treasurer'' and 
        inserting ``(i)(1) Except as provided in paragraph (2), 
        when the treasurer''; and
          (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) shall not apply with respect to 
information regarding the identification of any person who 
makes a contribution or contributions aggregating more than 
$200 during a calendar year (as required to be provided under 
subsection (c)(3)).''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to persons making contributions for 
elections occurring after January 2003.

SEC. 8. PROHIBITING INVOLUNTARY ASSESSMENT OF FUNDS BY LABOR 
                    ORGANIZATIONS FOR POLITICAL ACTIVITIES.

    (a) In General.--Section 316 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding at 
the end the following new subsection:
    ``(c)(1) Except with the separate, prior, written, 
voluntary authorization of each individual involved, it shall 
be unlawful for any labor organization described in this 
section to collect from or assess its members or nonmembers any 
dues, initiation fee, or other payment if any part of such 
dues, fee, or payment will be used for political activity in 
which the labor organization is engaged.
    ``(2) An authorization described in paragraph (1) shall 
remain in effect until revoked and may be revoked at any time. 
Each labor organization collecting from or assessing amounts 
from an individual with an authorization in effect under such 
paragraph shall provide the individual with a statement that 
the individual may at any time revoke the authorization.
    ``(3) For purposes of this subsection, the term `political 
activity' means any activity carried out for the purpose of 
influencing (in whole or in part) any election for Federal 
office, influencing the consideration or outcome of any Federal 
legislation or the issuance or outcome of any Federal 
regulations, or educating individuals about candidates for 
election for Federal office or any Federal legislation.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply to amounts collected or assessed on or after the 
date of the enactment of this Act.

SEC. 9. CHANGE IN NAME OF FEDERAL ELECTION COMMISSION.

    (a) In General.--Section 306 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 437c) is amended--
          (1) in the heading, by striking ``federal election 
        commission'' and inserting ``federal campaign 
        regulation commission''; and
          (2) in the first sentence of subsection (a)(1), by 
        striking ``Federal Election Commission'' and inserting 
        ``Federal Campaign Regulation Commission''.
    (b) Conforming Amendment.--Section 431(10) of such Act (2 
U.S.C. 431(10)) is amended by striking ``Federal Election 
Commission'' and inserting ``Federal Campaign Regulation 
Commission''.
    (c) References in Other Laws and Documents.--
Notwithstanding any other provision of law or any rule or 
regulation, any reference in any law, rule, regulation, or 
other document to the Federal Election Commission shall be 
deemed to be a reference to the Federal Campaign Regulation 
Commission.
                              ----------                              

   22. An Amendment To Be Offered by Representative Ney of Ohio, or 
   Representative Wynn of Maryland, or a Designee, Debatable for 60 
                                Minutes

    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Campaign 
Reform and Citizen Participation Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title; table of contents.

                 TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.

              TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.
Sec. 202. Increase in limits on contributions to State parties.
Sec. 203. Treatment of contributions to national party under aggregate 
          annual limit on individual contributions.
Sec. 204. Exemption of costs of volunteer campaign materials produced 
          and distributed by parties from treatment as contributions and 
          expenditures.
Sec. 205. Indexing.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior to 
          election.
Sec. 302. Disclosure of information on targeted mass communications.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                TITLE I--SOFT MONEY OF NATIONAL PARTIES

SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL POLITICAL PARTIES.

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

               ``soft money of national political parties

    ``Sec. 323. (a) Prohibiting Use of Soft Money for Federal 
Election Activity.--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 for Federal election activity, or spend 
any funds for Federal election activity, that are not subject 
to the limitations, prohibitions, and reporting requirements of 
this Act.
    ``(b) Limit on Amount of Nonfederal Funds Provided to Party 
by Any Person for Any Purpose.--No person shall make 
contributions, donations, or transfers of funds which are not 
subject to the limitations and prohibitions of this Act to a 
political committee established and maintained by a national 
political party in any calendar year in an aggregate amount 
equal to or greater than $75,000.
  ``(c) Applicability.--This subsection shall apply to any 
political committee established and maintained by a national 
political party, any officer or agent of such a committee 
acting on behalf of the committee, and any entity that is 
directly or indirectly established, maintained, or controlled 
by such a national committee.
  ``(d) Definitions.--
          ``(1) 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, unless the activity 
                        constitutes generic campaign activity;
                          ``(ii) voter identification or get-
                        out-the-vote 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), unless the 
                        activity constitutes generic campaign 
                        activity;
                          ``(iii) any public communication that 
                        refers to or depicts 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) any public communication made 
                        by means of any broadcast, cable, or 
                        satellite communication.
                  ``(B) Exception for certain administrative 
                activities.--The term `Federal election 
                activity' does not include any activity 
                relating to establishment, administration, or 
                solicitation costs of a political committee 
                established and maintained by a national 
                political party, so long as the funds used to 
                carry out the activity are derived from funds 
                or payments made to the committee which are 
                segregated and used exclusively to defray the 
                costs of such activities.
          ``(2) Generic campaign activity.--The term `generic 
        campaign activity' means any activity that does not 
        mention, depict, or otherwise promote a clearly 
        identified Federal candidate.
          ``(3) Public communication.--The term `public 
        communication' means a communication by means of any 
        broadcast, cable, or satellite communication, 
        newspaper, magazine, outdoor advertising facility, or 
        direct mail.
          ``(4) Direct mail.--The term `direct mail' means a 
        mailing by a commercial vendor or any mailing made from 
        a commercial list.''.

             TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

  (a) Contributions by Individuals to National Parties.--
Section 315(a)(1)(B) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441a(a)(1)(B)) is amended by striking 
``$20,000'' and inserting ``$30,000''.
  (b) Contributions by Committees to National Parties.--Section 
315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is amended by 
striking ``$15,000'' and inserting ``$30,000''.
  (c) Aggregate Annual Limit on Contributions by Individuals.--
Section 315(a)(3) of such Act (2 U.S.C. 441a(a)(3)) is amended 
by striking ``$25,000'' and inserting ``$37,500''.

SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE PARTIES.

  (a) Contributions by Individuals.--Section 315(a)(1) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) is 
amended--
          (1) in subparagraph (B), by striking ``or'' at the 
        end;
          (2) in subparagraph (C)--
                  (A) by inserting ``(other than a committee 
                described in subparagraph (D))'' after 
                ``committee''; and
                  (B) by striking the period at the end and 
                inserting ``; or''; and
          (3) by adding at the end the following:
          ``(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.''.
  (b) Contributions by Committees.--Section 315(a)(2) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(2)) is 
amended--
          (1) in subparagraph (B), by striking ``or'' at the 
        end;
          (2) in subparagraph (C)--
                  (A) by inserting ``(other than a committee 
                described in subparagraph (D))'' after 
                ``committee''; and
                  (B) by striking the period at the end and 
                inserting ``; or''; and
          (3) by adding at the end the following:
                  ``(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.''.

SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER AGGREGATE 
                    ANNUAL LIMIT ON INDIVIDUAL CONTRIBUTIONS.

  Section 315(a)(3) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441(a)(3)) is amended--
          (1) by striking ``(3)'' and inserting ``(3)(A)''; and
          (2) by adding at the end the following new 
        subparagraph:
                  ``(B) Subparagraph (A) shall not apply with 
                respect to any contribution made to any 
                political committee established and maintained 
                by a national political party which is not the 
                authorized political committee of any 
                candidate.''.

SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS PRODUCED 
                    AND DISTRIBUTED BY PARTIES FROM TREATMENT AS 
                    CONTRIBUTIONS AND EXPENDITURES.

  (a) Treatment as Contributions.--Section 301(8)(B)(x) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)(x)) 
is amended by striking ``a State or local committee of a 
political party of the costs of'' and inserting ``a national, 
State, or local committee of a political party of the costs of 
producing and distributing''.
  (b) Treatment as Expenditures.--Section 301(9)(B)(viii) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 
431(9)(B)(viii)) is amended by striking ``a State or local 
committee of a political party of the costs of'' and inserting 
``a national, State, or local committee of a political party of 
the costs of producing and distributing''.

SEC. 205. INDEXING.

  Section 315(c) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(c)) is amended--
          (1) in paragraph (1)--
                  (A) by striking the second and third 
                sentences;
                  (B) by inserting ``(A)'' before ``At the 
                beginning''; and
                  (C) by adding at the end the following:
                  ``(B) Except as provided in subparagraph (C), 
                in any calendar year after 2002--
          ``(i) a limitation established by subsections (a), 
        (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) 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.''; and
          (2) in paragraph (2)(B), by striking ``means the 
        calendar year 1974'' and inserting ``means--
                  ``(i) for purposes of subsections (b) and 
                (d), calendar year 1974; and
                  ``(ii) for purposes of subsections (a) and 
                (h), calendar year 2001''.

        TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS BROADCAST PRIOR 
                    TO ELECTION.

  Section 304 of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434), as amended by section 502(a) of the Department of 
Transportation and Related Agencies Act, 2001 (as enacted into 
law by reference under section 101(a) of Public Law 106-346), 
is amended by adding at the end the following new subsection:
  ``(e) Disclosure of Information on Certain Communications 
Broadcast Prior to Elections.--
          ``(1) In general.--Any person who makes a 
        disbursement for a communication described in paragraph 
        (3) shall, not later than 24 hours after making the 
        disbursement, file with the Commission a statement 
        containing the information required under 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 individual or entity 
                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 and 
                phone number of the person making the 
                disbursement, if not an individual.
                  ``(C) The amount of the disbursement.
                  ``(D) The clearly identified candidate or 
                candidates to which the communication pertains 
                and the names (if known) of the candidates 
                identified or to be identified in the 
                communication.
                  ``(E) The text of the communication involved.
          ``(3) Communications described.--
                  ``(A) In general.--A communication described 
                in this paragraph is any communication--
                          ``(i) which is disseminated to the 
                        public by means of any broadcast, 
                        cable, or satellite communication 
                        during the 120-day period ending on the 
                        date of a Federal election; and
                          ``(ii) which mentions a clearly 
                        identified candidate for such election 
                        (by name, image, or likeness).
                  ``(B) Exception.--A communication is not 
                described in this paragraph if--
                          ``(i) the communication appears 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; or
                          ``(ii) the communication constitutes 
                        an expenditure under this Act.
          ``(4) Coordination with other requirements.--Any 
        requirement to file a statement under this subsection 
        shall be in addition to any other reporting requirement 
        under this Act.
          ``(5) Clarification of treatment of vendors.--A 
        person shall not be considered to have made a 
        disbursement for a communication under this subsection 
        if the person made the disbursement solely as a vendor 
        acting pursuant to a contractual agreement with the 
        person responsible for sponsoring the communication.''.

SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS COMMUNICATIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434), as amended by section 301, is further amended by 
adding at the end the following new subsection:
    ``(f) Disclosure of Information on Targeted Mass 
Communications.--
          ``(1) In general.--Any person who makes a 
        disbursement for targeted mass communications in an 
        aggregate amount in excess of $50,000 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 individual or entity 
                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 and 
                phone number of the person making the 
                disbursement, if not an individual.
                  ``(C) The amount of each such disbursement of 
                more than $200 made by the person during the 
                period covered by the statement and the 
                identification of the person to whom the 
                disbursement was made.
                  ``(D) The clearly identified candidate or 
                candidates to which the communication pertains 
                and the names (if known) of the candidates 
                identified or to be identified in the 
                communication.
                  ``(E) The text of the communication involved.
          ``(3) Targeted mass communication defined.--
                  ``(A) In general.--In this subsection, the 
                term `targeted mass communication' means any 
                communication--
                          ``(i) which is disseminated during 
                        the 120-day period ending on the date 
                        of a Federal election;
                          ``(ii) which refers to or depicts a 
                        clearly identified candidate for such 
                        election (by name, image, or likeness); 
                        and
                          ``(iii) which is targeted to the 
                        relevant electorate.
                  ``(B) Targeting to relevant electorate.--
                          ``(i) Broadcast communications.--For 
                        purposes of this paragraph, a 
                        communication disseminated to the 
                        public by means of any broadcast, 
                        cable, or satellite communication which 
                        refers to or depicts a clearly 
                        identified candidate for Federal office 
                        is `targeted to the relevant 
                        electorate' if the communication is 
                        disseminated by a broadcaster whose 
                        audience includes--
                                  ``(I) a substantial number of 
                                residents of the district the 
                                candidate seeks to represent 
                                (as determined in accordance 
                                with regulations of the 
                                Commission), in the case of a 
                                candidate for Representative 
                                in, or Delegate or Resident 
                                Commissioner to, the Congress; 
                                or
                                  ``(II) a substantial number 
                                of residents of the State the 
                                candidate seeks to represent 
                                (as determined in accordance 
                                with regulations of the 
                                Commission), in the case of a 
                                candidate for Senator.
                          ``(ii) Other communications.--For 
                        purposes of this paragraph, a 
                        communication which is not described in 
                        clause (i) which refers to or depicts a 
                        clearly identified candidate for 
                        Federal office is `targeted to the 
                        relevant electorate' if--
                                  ``(I) more than 10 percent of 
                                the total number of intended 
                                recipients of the communication 
                                are members of the electorate 
                                involved with respect to such 
                                Federal office; or
                                  ``(II) more than 10 percent 
                                of the total number of members 
                                of the electorate involved with 
                                respect to such Federal office 
                                receive the communication.
                  ``(C) Exceptions.--The term `targeted mass 
                communication' does not include--
                          ``(i) a communication appearing in a 
                        news story, commentary, or editorial 
                        distributed through the facilities of 
                        any broadcasting station, newspaper, 
                        magazine, or other periodical 
                        publication, unless such facilities are 
                        owned or controlled by any political 
                        party, political committee, or 
                        candidate;
                          ``(ii) a communication made by any 
                        membership organization (including a 
                        labor organization) or corporation 
                        solely to its members, stockholders, or 
                        executive or administrative personnel, 
                        if such membership organization or 
                        corporation is not organized primarily 
                        for the purpose of influencing the 
                        nomination for election, or election, 
                        of any individual to Federal office; or
                          ``(iii) a communication which 
                        constitutes an expenditure under this 
                        Act.
          ``(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 
                targeted mass communications aggregating in 
                excess of $50,000; and
                  ``(B) any other date during such calendar 
                year by which a person has made disbursements 
                for targeted mass communications aggregating in 
                excess of $50,000 since the most recent 
                disclosure date for such calendar year.
          ``(5) Coordination with other requirements.--Any 
        requirement to report under this subsection shall be in 
        addition to any other reporting requirement under this 
        Act.
          ``(6) Clarification of treatment of vendors.--A 
        person shall not be considered to have made a 
        disbursement for a communication under this subsection 
        if the person made the disbursement solely as a vendor 
        acting pursuant to a contractual agreement with the 
        person responsible for sponsoring the communication.''.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to 
elections occurring after December 2002.

                                
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