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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3470 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3470

To amend the Federal Election Campaign Act of 1971 to ban activities of 
    political action committees in Federal elections, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 1993

 Mr. Michel (for himself, Mr. Gingrich, Mr. Thomas of California, Mr. 
  Livingston, Mr. Baker of California, Mr. Ballenger, Mr. Barrett of 
Nebraska, Mr. Bereuter, Mr. Blute, Mr. Calvert, Mr. Castle, Mr. Collins 
 of Georgia, Mr. Cox, Mr. Dickey, Mr. Doolittle, Mr. Ewing, Mr. Franks 
  of New Jersey, Mr. Gallegly, Mr. Gekas, Mr. Goodling, Mr. Goss, Mr. 
     Greenwood, Mr. Hastert, Mr. Hoke, Mr. Horn, Mr. Houghton, Mr. 
 Hutchinson, Mr. Inglis of South Carolina, Mr. Kolbe, Mr. McCrery, Mr. 
 McKeon, Mr. Miller of Florida, Mr. Moorhead, Mr. Oxley, Mr. Packard, 
Mr. Portman, Mr. Quinn, Mr. Ramstad, Mr. Roth, Mr. Saxton, Mr. Schiff, 
 Mr. Shays, Mr. Smith of Texas, Mr. Smith of Michigan, Mr. Upton, and 
  Mr. Walsh) introduced the following bill; which was referred to the 
                   Committee on House Administration

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Election Campaign Act of 1971 to ban activities of 
    political action committees in Federal elections, 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. BAN ON ACTIVITIES OF POLITICAL ACTION COMMITTEES IN FEDERAL 
              ELECTIONS.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 301 et seq.) is amended by adding at the end the 
following new section:

  ``ban on federal election activities by political action committees

    ``Sec. 323. Notwithstanding any other provision of this Act, no 
person other than an individual or a political committee may make 
contributions, solicit or receive contributions, or make expenditures 
for the purpose of influencing an election for Federal office.''.
    (b) Definition of Political Committee.--(1) Section 301(4) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(4)) is amended to 
read as follows:
    ``(4) The term `political committee' means--
            ``(A) the principal campaign committee of a candidate;
            ``(B) any national, State, or district committee of a 
        political party, including any subordinate committee thereof; 
        and
            ``(C) any local committee of a political party which--
                    ``(i) receives contributions aggregating in excess 
                of $5,000 during a calendar year;
                    ``(ii) makes payments exempted from the definition 
                of contribution or expenditure under paragraph (8) or 
                (9) aggregating in excess of $5,000 during a calendar 
                year; or
                    ``(iii) makes contributions or expenditures 
                aggregating in excess of $1,000 during a calendar 
                year.''.
    (2) Section 316(b)(2) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441b(b)(2)) is amended by striking out subparagraph (C).
    (c) Candidate's Committees.--(1) 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 the limitations provided by paragraphs 
(1) and (2), any political committee which is established or financed 
or maintained or controlled by any candidate or Federal officeholder 
shall be deemed to be an authorized committee of such candidate or 
officeholder.''.
    (2) Section 302(e)(3) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 432(e)(3)) is amended to read as follows:
    ``(3) No political committee that supports or has supported more 
than one candidate may be designated as an authorized committee, except 
that a candidate for the office of President nominated by a political 
party may designate the national committee of such political party as 
the candidate's principal campaign committee, but only if that national 
committee maintains separate books of account with respect to its 
functions as a principal campaign committee.''.
    (d) Rules Applicable When Ban Not in Effect.--For purposes of the 
Federal Election Campaign Act of 1971, during any period in which the 
limitation under section 324 of that Act (as added by subsection (a)) 
is not in effect--
            (1) the amendments made by subsections (a) and (b) shall 
        not be in effect; and
            (2) it shall be unlawful--
                    (A) for any person that is treated as a political 
                committee by reason of paragraph (1) and is directly or 
                indirectly established, administered, or supported by a 
                connected organization which is a corporation, labor 
                organization, or trade association to make 
                contributions to any candidate or the candidate's 
                authorized committee; and
                    (B) for any person that is treated as a political 
                committee by reason of paragraph (1) and is not 
                directly or indirectly established, administered, or 
                supported by a connected organization which is a 
                corporation, labor organization, or trade association 
                to make contributions to any candidate or the 
                candidate's authorized committee for any election 
                aggregating in excess of $1,000.

SEC. 2. HOUSE OF REPRESENTATIVES ELECTION LIMITATION ON CONTRIBUTIONS 
              FROM PERSONS OTHER THAN LOCAL INDIVIDUAL RESIDENTS.

    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)(1) A candidate for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress may not, with 
respect to a reporting period for an election, accept contributions 
from persons other than local individual residents totaling in excess 
of the total of contributions accepted from local individual residents.
    ``(2) As used in this subsection, the term `local individual 
resident' means an individual who resides in the congressional district 
involved.
    ``(3)(A) Any candidate who accepts contributions that exceed the 
limitation under this subsection with respect to the pre-election 
report period or the post-election report period shall pay to the 
Commission, for deposit in the Treasury, an amount equal to 5 times the 
amount of the excess contributions plus a civil penalty in an amount 
determined by the Commission.
    ``(B) Any candidate who accepts contributions that exceed the 
limitation under this subsection with respect to a period other than a 
period referred to in subparagraph (A) shall pay to the Commission, for 
deposit in the Treasury, an amount equal to 3 times the amount of the 
excess contributions.
    ``(C) Each report under section 304(a)(6) shall include a 
certification by the treasurer of the committee that the contributions 
reported do not exceed the limitation under this subsection.''.

SEC. 3. BAN ON SOFT MONEY.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.), as amended by section 1, is further 
amended by adding at the end the following new section:

  ``limitations and reporting requirements for amounts paid for mixed 
                          political activities

    ``Sec. 324. (a) Any payment by the national committee of a 
political party or a State committee of a political party for a mixed 
political activity--
            ``(1) shall be subject to limitation and reporting under 
        this Act as if such payment were an expenditure; and
            ``(2) may be paid only from an account that is subject to 
        the requirements of this Act.
    ``(b) As used in this section, the term `mixed political activity' 
means, with respect to a payment by the national committee of a 
political party or a State committee of a political party, an activity, 
such as a voter registration program, a get-out-the-vote drive, or 
general political advertising, that is both (1) for the purpose of 
influencing an election for Federal office, and (2) for any purpose 
unrelated to influencing an election for Federal office.''.
    (b) Repeal of Building Fund Exception to the Definition of the Term 
``Contribution''.--Section 301(8)(B) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
            (1) by striking out clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.

SEC. 4. ADDITIONAL POLITICAL PARTY CONTRIBUTIONS TO CHALLENGERS WHOSE 
              INCUMBENT OPPONENTS USE FUNDS CARRIED FORWARD FROM 
              EARLIER ELECTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 2, is further amended by adding at the end 
the following new subsection:
    ``(j)(1) Subject to paragraph (2), if, in a general election for 
Federal office, a candidate who is the incumbent uses campaign funds 
carried forward from an earlier election cycle, any political committee 
of a political party may make contributions to a nonincumbent candidate 
of that political party to match the funds so carried forward by the 
incumbent. For purposes of this paragraph, funds shall be considered to 
have been carried forward if the funds represent cash on hand as of 
December 31 of the year of the election, less legitimate outstanding 
debts relating to the previous election up to the amount of the 
December 31 balance, plus any amount expended on or before that 
December 31 for a later election.
    ``(2) The political party contributions under paragraph (1) may be 
made without regard to any limitation amount otherwise applicable to 
such contributions under this section, but a nonincumbent candidate may 
not accept such contributions in excess of the total of funds carried 
forward by the incumbent candidate.''.

SEC. 5. ELIMINATION OF LIMITATIONS ON CONTRIBUTIONS TO CANDIDATES WHOSE 
              OPPONENTS USE LARGE AMOUNTS OF PERSONAL FUNDS.

    (a) In General.--Section 315 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441a), as amended by sections 2 and 4, is further 
amended by adding at the end the following new subsection:
    ``(k) Each candidate in an election for the office of Senator or 
Representative in, or Delegate or Resident Commissioner to, the 
Congress may declare, in the first report that the candidate files with 
the Commission after becoming a candidate, that the candidate will not 
make expenditures of more than $250,000 from the personal funds of the 
candidate. If a candidate does not so declare and makes expenditures of 
more than $100,000 from personal funds--
            ``(1) the limitations under subsections (a)(1)(A) and (i) 
        shall not apply to any opponent of the candidate who so uses 
        personal funds; and
            ``(2) the limitations under subsection (a)(2)(A) (insofar 
        as such subsection applies to political party multicandidate 
        political committees) shall not apply to contributions to any 
        opponent of the candidate who so uses personal funds, up to the 
        amount of personal funds expended by the noncomplying 
        candidate.''.
    (b) Notification.--Section 304(a)(6) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434(a)(6)) is amended by adding at the 
end the following new paragraph:
    ``(C) The principal campaign committee of a candidate shall notify 
the Commission in writing by telegram, facsimile, or other electronic 
means of any incremental expenditure of personal funds totaling $50,000 
or more. This notification shall be made not later than 24 hours after 
the expenditure.''.

SEC. 6. LIMITATION ON CONTRIBUTIONS AND EXPENDITURES BY LABOR 
              ORGANIZATIONS.

    (a) Contributions to All Political Committees Included.--Paragraph 
(2) of section 316(b) 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 the 
labor organization provides all represented employees an annual 
examination by an independent certified public accountant of financial 
statements supplied by such organization which attests that the 
expenditures which the union claimed it made for certain expenses were 
actually made for those expenses. Such examination shall be conducted 
in accordance with generally accepted auditing standards.
    ``(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.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to contributions and expenditures made after the date of 
the enactment of this Act.

SEC. 7. INCREASED LIMITATION AMOUNT FOR CERTAIN CONTRIBUTIONS TO 
              POLITICAL COMMITTEES OF STATE POLITICAL 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 inserting after ``national'' the 
following: ``or State''.

SEC. 8. TRANSITION RULE RELATING TO EXCESS FUNDS OF CANDIDATES FOR THE 
              HOUSE OF REPRESENTATIVES.

    The limitations under section 315(i) of the Federal Election 
Campaign Act of 1971 (as added by section 2) shall be applied to the 
funds of a candidate carried over from previous elections and shall 
take effect on the day after the date of the 1994 primary election. A 
candidate for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress, who, on the day after the date of the 
1994 primary election, has campaign accounts containing amounts in 
excess of the contribution limit under section 315(i) of the Federal 
Election Campaign Act of 1971 shall deposit such excess in a separate 
account subject to section 304 of the Federal Election Campaign Act of 
1971. The amount so deposited shall be returned to contributors or 
available for any lawful purpose other than use, with respect to the 
individual for an election for the office of Representative, in, or 
Delegate or Resident Commissioner to, the Congress. For purposes of 
this section, excess funds are those funds which exceed twice the 
amount of funds raised from local individual residents after December 
31, 1992. From the day after the date of the 1994 primary election 
until the date of the 1994 general election, a candidate may transfer 
excess funds from the separate account to the campaign account so long 
as a majority of the total funds contributed or transferred to the 
campaign account were raised from local individual residents after 
December 31, 1992. No funds may be transferred from a separate account 
of a candidate to a campaign account of the candidate after the date of 
the 1994 general election.

SEC. 9. DISCLOSURE OF ELECTION-RELATED ACTIVITY BY CORPORATIONS, LABOR 
              ORGANIZATIONS AND NONPROFIT ORGANIZATIONS.

    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) Any corporation, labor organization, or nonprofit 
organization that makes a payment for a communication or other activity 
that--
            ``(1) relates to any election for Federal office; and
            ``(2) in the case of a corporation or labor organization, 
        by reason of subparagraph (A) or (B) of paragraph (2) of 
        section 316(b), is not a contribution or expenditure;
shall report such payment to the Commission in the same manner as a 
contribution or expenditure, as the case may be, is reported by a 
principal campaign committee of a candidate for the House of 
Representatives or the Senate under this section.''.

SEC. 10. PROHIBITION OF BUNDLING OF CONTRIBUTIONS TO CANDIDATES BY 
              POLITICAL ACTION COMMITTEES AND LOBBYISTS.

    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) No nonparty multicandidate political committee or person 
required to register under the Federal Regulation of Lobbying Act (2 
U.S.C. 261 et seq.) may act as an intermediary or conduit with respect 
to a contribution to a candidate for Federal office.''.

SEC. 11. PROHIBITION OF TRANSFERS AMONG NONCANDIDATE, NONPARTY 
              POLITICAL COMMITTEES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 2, 4, and 5, is further amended by adding 
at the end the following new subsection:
    ``(l) A noncandidate, nonparty political committee may not make 
contributions, or otherwise transfer funds, to any other noncandidate, 
nonparty political committee. As used in this subsection, the term 
`noncandidate, nonparty political committee' means a political 
committee that is not an authorized committee of a candidate for 
Federal office and is not a political committee of a political 
party.''.

SEC. 12. PROHIBITION OF LEADERSHIP COMMITTEES; RESTRICTION ON 
              CONTRIBUTIONS BETWEEN PRINCIPAL CAMPAIGN COMMITTEES.

    (a) Leadership Committee Prohibition.--Section 302 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 432) is amended by adding at 
the end the following new subsection:
    ``(j) A candidate for Federal office may not establish, maintain, 
finance, or control a political committee, other than the principal 
campaign committee of the candidate.''.
    (b) Principal Campaign Committee Restriction.--Section 315 of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441a), as amended by 
sections 2, 4, 5, and 11, is further amended by adding at the end the 
following new subsection:
    ``(m) A principal campaign committee of a candidate for Federal 
office may not make any contribution to any other principal campaign 
committee (other than the principal campaign committee of the same 
individual as a candidate for another Federal office).''.

SEC. 13. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
the enactment of this Act.

                                 <all>

HR 3470 IH----2
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