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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3196 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3196

   To amend the Federal Election Campaign Act of 1971, the Internal 
Revenue Code of 1986, and title 39, United States Code, to provide for 
    an open, fair, and responsive electoral process, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 30, 1993

  Mrs. Fowler (for herself, Mr. Torkildsen, Mr. Royce, Mr. Mica, Mr. 
Hutchinson, Mr. Castle, Mr. Miller of Florida, Mr. Blute, Mr. Smith of 
 Michigan, Ms. Dunn, Mr. McKeon, Mr. Linder, Mr. Franks of New Jersey, 
Mr. Buyer, Mr. Bachus of Alabama, Mr. Kim, Mr. Baker of California, Mr. 
 Knollenberg, Mr. Everett, Mr. Kingston, and Mr. Bartlett of Maryland) 
   introduced the following bill; which was referred jointly to the 
Committees on House Administration, Ways and Means, and Post Office and 
                             Civil Service

_______________________________________________________________________

                                 A BILL

 
   To amend the Federal Election Campaign Act of 1971, the Internal 
Revenue Code of 1986, and title 39, United States Code, to provide for 
    an open, fair, and responsive electoral process, and for other 
                               purposes.

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

SECTION 1. HOUSE OF REPRESENTATIVES ELECTION LIMITATION ON OUT-OF-STATE 
              CONTRIBUTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following new subsection:
    ``(i) A candidate for the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress may not, with respect to an 
election cycle, accept out-of-State contributions totaling more than 49 
percent of the aggregate of contributions accepted from all sources.''.

SEC. 2. REDUCTION IN LIMITATION AMOUNT APPLICABLE TO MULTICANDIDATE 
              POLITICAL COMMITTEE CONTRIBUTIONS TO CANDIDATES.

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

SEC. 3. PROHIBITION ON CONTRIBUTIONS BETWEEN MULTICANDIDATE POLITICAL 
              COMMITTEES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 1, is further amended by adding at the end 
the following new subsection:
    ``(j) Notwithstanding any other provision of this Act, a 
multicandidate political committee may not make a contribution to 
another multicandidate political committee.''.

SEC. 4. MULTICANDIDATE POLITICAL COMMITTEE NAME REQUIREMENT.

    Section 303 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
433) is amended by adding at the end the following new subsection:
    ``(e) Any multicandidate political committee that is affiliated 
with another organization shall include the entire name of the 
organization in the name of the multicandidate political committee.''.

SEC. 5. PROHIBITION OF BUNDLING.

    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.''.

SEC. 6. REQUIREMENT FOR DISCLOSURE OF LOBBYIST STATUS BY LOBBYISTS WHO 
              MAKE CONTRIBUTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 1 and 3, is further amended by adding at 
the end the following new subsection:
    ``(k) Any person who is a lobbyist and who makes a contribution 
shall include with the contribution a statement in writing that 
discloses the status of the person as a lobbyist.''.

SEC. 7. REPORTING REQUIREMENT FOR LOBBYISTS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following new subsection:
    ``(d)(1) Not later than 20 days after the end of the month in which 
a lobbyist makes a contribution, the lobbyist, in such form and manner 
as the Commission shall prescribe by regulation, shall report the 
contribution to the Commission.''.

SEC. 8. REPORTING REQUIREMENT FOR OUT-OF-STATE CONTRIBUTIONS IN HOUSE 
              OF REPRESENTATIVES ELECTIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 7, is further amended by adding at the end 
the following new subsection:
    ``(e) Any report of contributions with respect to an election for 
the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress, shall segregate and itemize all out-of-State 
contributions.''.

SEC. 9. BAN ON SOFT MONEY.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 1, 3, and 6, is further amended by adding 
at the end the following new subsection:
    ``(l)(1) It shall be unlawful for the purpose of influencing any 
election to Federal office--
            ``(A) to solicit or receive any soft money; or
            ``(B) to make any payments from soft money.
    ``(2) For purposes of paragraph (1), the term `soft money' means 
any amount--
            ``(A) solicited or received from a source which is 
        prohibited under section 316(a);
            ``(B) contributed, solicited, or received in excess of the 
        contribution limits under section 315; or
            ``(C) not subject to the recordkeeping, reporting, or 
        disclosure requirements under section 304 or any other 
        provision of this Act.''.

SEC. 10. RESTRICTIONS ON PARTY COMMITTEES.

    (a) Disclosure of Information by Political Committee.--(1) Section 
302(c) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(c)) 
is amended--
            (A) by striking out ``and'' at the end of paragraph (4);
            (B) by striking out the period at the end of paragraph (5) 
        and inserting in lieu thereof ``; and''; and
            (C) by adding at the end the following new paragraph:
            ``(6) each account maintained by a political committee of a 
        political party (including Federal and non-Federal accounts), 
        and deposits into, and disbursements from, each such 
        account.''.
    (2) Section 304(b) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(b)) is amended--
            (A) by striking out ``and'' at the end of paragraph (7);
            (B) by striking out the period at the end of paragraph (8) 
        and inserting in lieu thereof ``; and''; and
            (C) by adding at the end the following new paragraph:
            ``(9) each account maintained by a political committee of a 
        political party (including Federal and non-Federal accounts), 
        and deposits into, and disbursements from, each such 
        account.''.
    (b) Allocation of Expenditures for Mixed Activities.--Title III of 
the Federal Election Campaign Act of 1971 is amended by adding at the 
end the following new section:

   ``required allocation of contributions and expenditures for mixed 
                activities by political party committees

    ``Sec. 323. (a) Not later than 180 days after the date of the 
enactment of this section, the Commission shall issue regulations 
providing for a method for allocating the contributions and 
expenditures for any mixed activity between Federal and non-Federal 
accounts.
    ``(b)(1) The regulations issued under subsection (a) shall--
            ``(A) provide for the allocation of contributions and 
        expenditures in accordance with this subsection; and
            ``(B) require reporting under this Act of expenditures in 
        connection with a mixed activity to disclose--
                    ``(i) the method and rationale used in allocating 
                the cost of the mixed activity to Federal and non-
                Federal accounts; and
                    ``(ii) the amount and percentage of the cost of the 
                mixed activity allocated to such accounts.
    ``(2) In the case of a mixed activity that consists of a voter 
registration drive, get-out-the-vote drive, or other activity designed 
to contact voters (other than an activity to which paragraph (3) or (4) 
applies), amounts shall be allocated on the basis of the composition of 
the ballot for the political jurisdiction in which the activity occurs, 
except that in no event shall the amounts allocated to the Federal 
account be less than--
            ``(A) 33\1/3\ percent of the total amount in the case of 
        the national committee of a political party; or
            ``(B) 25 percent of the total amount in the case of a State 
        or local committee of a political party or any subordinate 
        committee thereof.
    ``(3) In the case of a mixed activity that consists of preparing 
and distributing brochures, handbills, slate cards, or other printed 
materials identifying or seeking support of (or opposition to) 
candidates for both Federal offices and non-Federal offices, amounts 
shall be allocated on the basis of total space devoted to such 
candidates, except that in no event shall the amounts allocated to the 
Federal account be less than the percentages under subparagraph (A) or 
(B) of paragraph (2).
    ``(4)(A) In the case of a mixed activity by a national committee of 
a political party that consists of broadcast media advertising (or any 
portion thereof) that promotes (or is in opposition to) a political 
party without mentioning the name of any individual candidate for 
Federal office or non-Federal office, amounts allocated to the Federal 
account shall not be less than--
            ``(i) 50 percent of the total amount in the case of 
        advertising in the national media market; and
            ``(ii) 40 percent in the case of advertising in other than 
        the national media market.
    ``(B) In the case of a mixed activity by a State or local committee 
of a political party or any subordinate committee thereof that consists 
of broadcast media advertising (or any portion thereof) described in 
subparagraph (A), costs shall be allocated on the basis of the 
composition of the ballot for the political jurisdiction in which the 
activity occurs, except that in no event shall the amounts allocated to 
the Federal account be less than 33\1/3\ percent of the total amount.
    ``(5) Overhead and fundraising costs of a political committee of a 
political party for each 2-calendar year period ending with the 
calendar year in which a regularly scheduled election for Federal 
office occurs shall be allocated to the Federal account on the basis of 
the same ratio which--
            ``(A) the aggregate amount of receipts and disbursements of 
        such political committee during such period in connection with 
        elections for Federal office, bears to
            ``(B) the aggregate amount of receipts and disbursements of 
        such political committee during such period.
    ``(c)(1) For purposes of this section, the term `mixed activity' 
means an activity the expenditures in connection with which are 
required under this Act to be allocated between Federal and non-Federal 
accounts because such activity affects 1 or more elections for Federal 
office and 1 or more non-Federal elections.
    ``(2) Activities under paragraph (1) include--
                    ``(A) voter registration drives, get-out-the-vote 
                drives, telephone banks, and membership communications 
                in connection with elections for Federal offices and 
                elections for non-Federal offices;
                    ``(B) general political advertising, brochures, or 
                other materials that include any reference (however 
                incidental) to both a candidate for Federal office and 
                a candidate for non-Federal office, or that urge 
                support for or opposition to a political party or to 
                all the candidates of a political party;
                    ``(C) overhead expenses; and
                    ``(D) activities described in clauses (v), (x), and 
                (xii) of section 301(8)(B).
    ``(d) For purposes of this section--
            ``(1) the term `Federal account' means an account to which 
        receipts and disbursements are allocated to elections for 
        Federal offices; and
            ``(2) the term `non-Federal account' means an account to 
        which receipts and disbursements are allocated to elections 
        other than non-Federal offices.''.

SEC. 11. PROTECTION FOR EMPLOYEES.

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

SEC. 12. RESTRICTIONS ON SOFT MONEY ACTIVITIES OF TAX-EXEMPT 
              ORGANIZATIONS.

    (a) In General.--Section 501 of the Internal Revenue Code of 1986 
(relating to exemption from tax) is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) the 
following new subsection:
    ``(n) Denial of Tax-Exempt Status for Activities To Influence a 
Federal Election.--An organization shall not be treated as exempt from 
tax under subsection (a) if such organization participates or 
intervenes in any political campaign on behalf of or in opposition to 
any candidate for Federal office.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any participation or intervention by an organization on or 
after September 1, 1992.

SEC. 13. DENIAL OF TAX-EXEMPT STATUS FOR CERTAIN POLITICALLY ACTIVE 
              ORGANIZATIONS.

    (a) In General.--Section 501 of the Internal Revenue Code of 1986 
(relating to exemption from tax), as amended by section 12, is further 
amended by redesignating subsection (o) as subsection (p) and by 
inserting after subsection (n) the following new subsection:
    ``(o) Denial of Tax-Exempt Status for Certain Politically Active 
Organizations.--
            ``(1) In general.--An organization shall not be treated as 
        exempt from tax under subsection (a) if--
                    ``(A) such organization devotes any of its 
                operating budget to--
                            ``(i) voter registration or get-out-the-
                        vote campaigns; or
                            ``(ii) participation or intervention in any 
                        political campaign on behalf of or in 
                        opposition to any candidate for public office; 
                        and
                    ``(B) a candidate, or an authorized committee of a 
                candidate, has--
                            ``(i) solicited contributions to, or on 
                        behalf of, such organization; and
                            ``(ii) the solicitation is made in 
                        cooperation, consultation, or concert with, or 
                        at the request or suggestion of, such 
                        organization.
            ``(2) Candidate defined.--For purposes of this subsection--
                    ``(A) In general.--The term `candidate' has the 
                meaning given such term by paragraph (2) of section 301 
                of the Federal Election Campaign Act of 1971 (2 U.S.C. 
                431(2)).
                    ``(B) Members of congress.--The term `candidate' 
                shall include any Senator or Representative in, or 
                Delegate or Resident Commissioner to, the Congress 
                unless--
                            ``(i) the date for filing for nomination, 
                        or election to, such office has passed and such 
                        individual has not so filed, and
                            ``(ii) such individual is not otherwise a 
                        candidate described in subparagraph (A).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of enactment of this Act, 
but only with respect to solicitations or suggestions by candidates 
made after the date of enactment of this Act.

SEC. 14. CONTRIBUTIONS TO CERTAIN POLITICAL ORGANIZATIONS MAINTAINED BY 
              A CANDIDATE.

    (a) Contributions by Persons in General and by Multicandidate 
Political Committees.--(1) Section 315(a)(1)(A) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(a)(1)(A)) is amended by striking 
out ``candidate and his authorized political committees'' and inserting 
in lieu thereof ``candidate, a candidate's authorized political 
committees, and any political organizations (other than authorized 
committees) maintained by a candidate,''.
    (2) Section 315(a)(2)(A) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441a(a)(2)(A)) is amended by striking out ``candidate 
and his authorized political committees'' and inserting in lieu thereof 
``candidate, a candidate's authorized political committees, and any 
political organizations (other than authorized committees) maintained 
by a candidate,''.
    (3) 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) For the purposes of paragraphs (1)(A) and (2)(A), the term 
`political organization maintained by a candidate' means any non-
Federal political action committee, non-Federal multicandidate 
political committee, or any other form of political organization 
regulated under State law which is not a political committee of a 
national, State, or local political party--
            ``(A) that is set up by or on behalf of a candidate and 
        engages in political activity which directly influences Federal 
        elections; and
            ``(B) for which that candidate has solicited a 
        contribution.''.
    (b) Contributions by National Banks, Corporations, and Labor 
Organizations.--(1) Section 316(b)(2) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by striking out 
``candidate, campaign committee'' and inserting in lieu thereof 
``candidate, political organization (other than an authorized 
committee) maintained by a candidate, campaign committee,''.
    (2) Section 316(b) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441b(b)), as amended by section 11(b), is further amended by 
adding at the end the following new paragraph:
    ``(9) For the purposes of paragraph (2), the term `political 
organization maintained by a candidate' means any non-Federal political 
action committee, non-Federal multicandidate political committee, or 
any other form of political organization regulated under State law 
which is not a political committee of a national, State, or local 
political party--
            ``(A) that is set up by or on behalf of a candidate and 
        engages in political activity which directly influences Federal 
        elections; and
            ``(B) for which that candidate has solicited a 
        contribution.''.
    (c) Date of Application.--The amendments made by subsections (a) 
and (b) shall apply to contributions described in sections 315 and 316 
of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a and 441b) 
made in response to solicitations made after January ______, 1993.

SEC. 15. CONTRIBUTIONS TO STATE AND LOCAL PARTY COMMITTEES.

    Section 315(a)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(1)) is amended--
            (1) by striking out ``or'' at the end of subparagraph (B);
            (2) by striking out the period at the end of subparagraph 
        (C) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) to the political committees established and 
        maintained by a State or local political party, in connection 
        with any activity that may influence an election for Federal 
        office, in any calendar year which, in the aggregate, exceed 
        the lesser of--
                    ``(i) $50,000; or
                    ``(ii) the difference between $50,000 and the 
                amount of contributions made by such person to any 
                political committees established and maintained by a 
                national political party.''.

SEC. 16. INCREASE IN LIMITATION AMOUNT APPLICABLE TO AGGREGATE 
              CONTRIBUTIONS BY AN INDIVIDUAL.

    The first sentence of section 315(a)(3) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is amended by striking out 
``$25,000'' and inserting in lieu thereof ``$50,000''.

SEC. 17. LENGTHENING OF PRE-ELECTION PERIOD DURING WHICH MEMBERS OF 
              CONGRESS MAY NOT SEND FRANKED MASS MAILINGS.

     Section 3210(a)(6)(A) of title 39, United States Code, is amended 
by striking out ``60 days'' each place it appears and inserting in lieu 
thereof ``90 days''.

SEC. 18. DEFINITION AMENDMENTS.

    (a) Transfer of Multicandidate Political Committee Definition.--
Section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 431) 
is amended by striking out paragraph (19) and inserting in lieu thereof 
the following new paragraph:
    ``(19) The term `multicandidate political committee' means a 
political committee which has been registered under section 303 for a 
period of not less than 6 months, which has received contributions from 
more than 50 persons, and, except for any State political party 
organization, has made contributions to 5 or more candidates for 
Federal office.''.
    (b) Lobbyist.--Section 301 of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431), as amended by subsection (a) is further amended by 
adding at the end the following new paragraph:
    ``(20) The term `lobbyist' means a person who is required to 
register under the Federal Regulation of Lobbying Act (2 U.S.C. 261 et 
seq.).''.
    (c) Out-of-State Contribution.--Section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431), as amended by subsections (a) and 
(b) is further amended by adding at the end the following new 
paragraph:
    ``(21) The term `out-of-State contribution' means, with respect to 
an election for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress, a contribution from a source 
outside the State in which the congressional district involved is 
located.''.
    (d) Conforming Amendment.--Section 315(a)(4) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(4)) is amended by 
striking out the second sentence.

SEC. 19. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by 
this Act shall apply with respect to elections beginning with the 
general election on November 8, 1994.

                                 <all>

HR 3196 IH----2
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