II

106TH CONGRESS

1ST SESSION S. 982

Entitled ‘‘Clean Money, Clean Elections Act.’’

IN THE SENATE OF THE UNITED STATES

MAY 6, 1999

Mr. WELLSTONE (for himself and Mr. KERRY) introduced the following bill;

which was read twice and referred to the Committee on Rules and Administration

A BILL

Entitled ‘‘Clean Money, Clean Elections Act.’’

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Clean Money, Clean Elections Act’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

TITLE I—CLEAN MONEY FINANCING OF SENATE ELECTION

CAMPAIGNS

Sec. 101. Findings and declarations.

Sec. 102. Eligibility requirements and benefits of clean money financing of Senate election campaigns.

Sec. 103. Reporting requirements for expenditures of private money candidates.

Sec. 104. Transition rule for current election cycle.
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TITLE II—INDEPENDENT EXPENDITURES; COORDINATED

EXPENDITURES

Sec. 201. Reporting requirements for independent expenditures.

Sec. 202. Definition of independent expenditure.

Sec. 203. Limit on expenditures by political party committees.

Sec. 204. Party independent expenditures and coordinated expenditures.

TITLE III—VOTER INFORMATION

Sec. 301. Free broadcast time.

Sec. 302. Broadcast rates and preemption.

Sec. 303. Campaign advertisements; issue advertisements.

Sec. 304. Limit on congressional use of the franking privilege.

TITLE IV—SOFT MONEY

Sec. 401. Soft money of political parties.

Sec. 402. State party grassroots funds.

Sec. 403. Reporting requirements.

Sec. 404. Soft money of persons other than political parties.

TITLE V—RESTRUCTURING AND STRENGTHENING OF THE

FEDERAL ELECTION COMMISSION

Sec. 501. Appointment and terms of commissioners.

Sec. 502. Audits.

Sec. 503. Authority to seek injunction.

Sec. 504. Standard for investigation.

Sec. 505. Petition for certiorari.

Sec. 506. Expedited procedures.

Sec. 507. Filing of reports using computers and facsimile machines; filing by

Senate candidates with Commission.

Sec. 508. Power to issue subpoena without signature of chairperson.

Sec. 509. Prohibition of contributions by individuals not qualified to vote.

Sec. 510. Penalties for violations.

TITLE VI—EFFECTIVE DATE

Sec. 601. Effective date.

1 TITLE I—CLEAN MONEY FINANC2 ING OF SENATE ELECTION

3 CAMPAIGNS

4 SEC. 101. FINDINGS AND DECLARATIONS.

5 (a) UNDERMINING OF DEMOCRACY BY CAMPAIGN

6 CONTRIBUTIONS FROM PRIVATE SOURCES.—The Senate

7 finds and declares that the current system of privately fi-
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1 nanced campaigns for election to the Senate undermines

2 democracy in the United States by—

3 (1) violating the democratic principle of ‘‘one

4 person, one vote’’ and diminishing the meaning of

5 the right to vote by allowing monied interests to

6 have a disproportionate and unfair influence within

7 the political process;

8 (2) diminishing a Senator’s accountability to

9 constituents by compelling legislators to be account10 able to the major contributors who finance their

11 election campaigns;

12 (3) creating a conflict of interest, perceived and

13 real, by encouraging Senators to take money from

14 private interests that are directly affected by Federal

15 legislation;

16 (4) imposing large, unwarranted costs on tax17 payers through legislative and regulatory outcomes

18 shaped by unequal access to lawmakers for cam19 paign contributors;

20 (5) driving up the cost of election campaigns,

21 making it difficult for qualified candidates without

22 personal fortunes or access to campaign contribu23 tions from monied individuals and interest groups to

24 mount competitive Senate election campaigns;
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1 (6) disadvantaging challengers, because large

2 campaign contributors tend to give their money to

3 incumbent Senators, thus causing Senate elections

4 to be less competitive; and

5 (7) burdening incumbents with a preoccupation

6 with fundraising and thus decreasing the time avail7 able to carry out their public responsibilities.

8 (b) ENHANCEMENT OF DEMOCRACY BY PROVIDING

9 CLEAN MONEY.—The Senate finds and declares that the

10 replacement of private campaign contributions with clean

11 money financing for all primary, runoff, and general elec12 tions to the Senate would enhance American democracy

13 by—

14 (1) helping to eliminate access to wealth as a

15 determinant of a citizen’s influence within the polit16 ical process and to restore meaning to the principle

17 of ‘‘one person, one vote’’;

18 (2) increasing the accountability of Senators to

19 the constituents who elect them;

20 (3) eliminating the inherent conflict of interest

21 caused by the private financing of the election cam22 paigns of public officials, thus restoring public con23 fidence in the fairness of the electoral and legislative

24 processes;
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1 (4) reversing the escalating cost of elections

2 and saving taxpayers billions of dollars that are cur3 rently misspent due to legislative and regulatory

4 agendas skewed by the influence of contributions;

5 (5) creating a more level playing field for in6 cumbents and challengers, creating genuine opportu7 nities for all Americans to run for the Senate, and

8 encouraging more competitive elections; and

9 (6) freeing Senators from the constant pre10 occupation with raising money, and allowing them

11 more time to carry out their public responsibilities.

12 SEC. 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF

13 CLEAN MONEY FINANCING OF SENATE ELEC14 TION CAMPAIGNS.

15 The Federal Election Campaign Act of 1971 (2

16 U.S.C. 431 et seq.) is amended by adding at the end the

17 following:

18 ‘‘TITLE V—CLEAN MONEY FI19 NANCING OF SENATE ELEC20 TION CAMPAIGNS

21 ‘‘SEC. 501. DEFINITIONS.

22 ‘‘In this title:

23 ‘‘(1) ALLOWABLE CONTRIBUTION.—The term

24 ‘allowable contribution’ means a qualifying contribu25 tion or seed money contribution.
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1 ‘‘(2) CLEAN MONEY.—The term ‘clean money’

2 means funds that are made available by the Com3 mission to a clean money candidate under this title.

4 ‘‘(3) CLEAN MONEY CANDIDATE.—The term

5 ‘clean money candidate’ means a candidate for the

6 Senate who is certified under section 505 as being

7 eligible to receive clean money.

8 ‘‘(4) CLEAN MONEY QUALIFYING PERIOD.—The

9 term ‘clean money qualifying period’ means the pe10 riod beginning on the date that is 270 days before

11 the date of the primary election and ending on the

12 date that is 30 days before the date of the general

13 election.

14 ‘‘(5) GENERAL ELECTION PERIOD.—The term

15 ‘general election period’ means, with respect to a

16 candidate, the period beginning on the day after the

17 date of the primary or primary runoff election for

18 the specific office that the candidate is seeking,

19 whichever is later, and ending on the earlier of—

20 ‘‘(A) the date of the general election; or

21 ‘‘(B) the date on which the candidate with22 draws from the campaign or otherwise ceases

23 actively to seek election.

24 ‘‘(6) GENERAL RUNOFF ELECTION PERIOD.—

25 The term ‘general runoff election period’ means,
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1 with respect to a candidate, the period beginning on

2 the day following the date of the last general election

3 for the specific office that the candidate is seeking

4 and ending on the date of the runoff election for

5 that office.

6 ‘‘(7) IMMEDIATE FAMILY.—The term ‘imme7 diate family’ means—

8 ‘‘(A) a candidate’s spouse;

9 ‘‘(B) a child, stepchild, parent, grand10 parent, brother, half-brother, sister, or half-sis11 ter of the candidate or the candidate’s spouse;

12 and

13 ‘‘(C) the spouse of any person described in

14 subparagraph (B).

15 ‘‘(8) MAJOR PARTY CANDIDATE.—The term

16 ‘major party candidate’ means a candidate of a po17 litical party of which a candidate for Senator, for

18 President, or for Governor in the preceding 5 years

19 received, as a candidate of that party, 25 percent or

20 more of the total number of popular votes received

21 in the State by all candidates for the same office.

22 ‘‘(9) PERSONAL FUNDS.—The term ‘personal

23 funds’ means an amount that is derived from—
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1 ‘‘(A) the personal funds of the candidate

2 or a member of the candidate’s immediate fam3 ily; and

4 ‘‘(B) proceeds of indebtedness incurred by

5 the candidate or a member of the candidate’s

6 immediate family.

7 ‘‘(10) PERSONAL USE.—

8 ‘‘(A) IN GENERAL.—The term ‘personal

9 use’ means the use of funds to fulfill a commit10 ment, obligation, or expense of a person that

11 would exist irrespective of the candidate’s elec12 tion campaign or individual’s duties as a holder

13 of Federal office.

14 ‘‘(B) INCLUSIONS.—The term ‘personal

15 use’ includes—

16 ‘‘(i) a home mortgage, rent, or utility

17 payment;

18 ‘‘(ii) a clothing purchase;

19 ‘‘(iii) a noncampaign-related auto20 mobile expense;

21 ‘‘(iv) a country club membership;

22 ‘‘(v) a vacation or other noncampaign23 related trip;

24 ‘‘(vi) a household food item;

25 ‘‘(vii) a tuition payment;
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1 ‘‘(viii) admission to a sporting event,

2 concert, theater, or other form of enter3 tainment not associated with an election

4 campaign; and

5 ‘‘(ix) dues, fees, and other payments

6 to a health club or recreational facility.

7 ‘‘(11) PRIMARY ELECTION PERIOD.—The term

8 ‘primary election period’ means the period beginning

9 on the date that is 90 days before the date of the

10 primary election and ending on the date of the pri11 mary election.

12 ‘‘(12) PRIMARY RUNOFF ELECTION PERIOD.—

13 The term ‘primary runoff election period’ means,

14 with respect to a candidate, the period beginning on

15 the day following the date of the last primary elec16 tion for the specific office that the candidate is seek17 ing and ending on the date of the runoff election for

18 that office.

19 ‘‘(13) PRIVATE MONEY CANDIDATE.—The term

20 ‘private money candidate’ means a candidate for the

21 Senate other than a clean money candidate.

22 ‘‘(14) QUALIFYING CONTRIBUTION.—The term

23 ‘qualifying contribution’ means a contribution that—

24 ‘‘(A) is in the amount of $5 exactly;
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1 ‘‘(B) is made by an individual who is reg2 istered to vote in the candidate’s State;

3 ‘‘(C) is made during the clean money

4 qualifying period; and

5 ‘‘(D) meets the requirements of section

6 502(a)(2)(D).

7 ‘‘(15) SEED MONEY CONTRIBUTION.—The term

8 ‘seed money contribution’ means a contribution (or

9 contributions in the aggregate made by any 1 per10 son) of not more than $100.

11 ‘‘(16) SENATE ELECTION FUND.—The term

12 ‘Senate Election Fund’ means the fund established

13 by section 507(a).

14 ‘‘SEC. 502. ELIGIBILITY FOR CLEAN MONEY.

15 ‘‘(a) PRIMARY ELECTION PERIOD AND PRIMARY

16 RUNOFF ELECTION PERIOD.—

17 ‘‘(1) IN GENERAL.—A candidate qualifies as a

18 clean money candidate during the primary election

19 period and primary runoff election period if the can20 didate files with the Commission a declaration,

21 signed by the candidate and the treasurer of the

22 candidate’s principal campaign committee, that the

23 candidate—

24 ‘‘(A) has complied and will comply with all

25 of the requirements of this title;
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1 ‘‘(B) will not run in the general election as

2 a private money candidate; and

3 ‘‘(C) meets the qualifying contribution re4 quirement of paragraph (2).

5 ‘‘(2) QUALIFYING CONTRIBUTION REQUIRE6 MENT.—

7 ‘‘(A) MAJOR PARTY CANDIDATES.—The re8 quirement of this paragraph is met if, during

9 the clean money qualifying period, a major

10 party candidate receives the greater of—

11 ‘‘(i) 1,000 qualifying contributions; or

12 ‘‘(ii) a number of qualifying contribu13 tions equal to 0.25 percent of the voting

14 age population of the candidate’s State.

15 ‘‘(B) CANDIDATES THAT ARE NOT MAJOR

16 PARTY CANDIDATES.—The requirement of this

17 paragraph is met if, during the clean money

18 qualifying period, a candidate that is not a

19 major party candidate receives a number of

20 qualifying contributions that is at least 150

21 percent of the number of qualifying contribu22 tions that a major party candidate in the same

23 election is required to receive under subpara24 graph (A).
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1 ‘‘(C) RECEIPT OF QUALIFYING CONTRIBU2 TION.—A qualifying contribution shall—

3 ‘‘(i) be accompanied by the contribu4 tor’s name and home address;

5 ‘‘(ii) be accompanied by a signed

6 statement that the contributor understands

7 the purpose of the qualifying contribution;

8 ‘‘(iii) be made by a personal check or

9 money order payable to the Senate Elec10 tion Fund or by cash; and

11 ‘‘(iv) be acknowledged by a receipt

12 that is sent to the contributor with a copy

13 kept by the candidate for the Commission

14 and a copy kept by the candidate for the

15 election authorities in the candidate’s

16 State.

17 ‘‘(D) DEPOSIT OF QUALIFYING CONTRIBU18 TIONS IN SENATE ELECTION FUND.—

19 ‘‘(i) IN GENERAL.—Not later than the

20 date that is 1 day after the date on which

21 the candidate is certified under section

22 505, a candidate shall remit all qualifying

23 contributions to the Commission for de24 posit in the Senate Election Fund.
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1 ‘‘(ii) CANDIDATES THAT ARE NOT

2 CERTIFIED.—Not later than the last day of

3 the clean money qualifying period, a can4 didate who has received qualifying con5 tributions and is not certified under section

6 505 shall remit all qualifying contributions

7 to the Commission for deposit in the Sen8 ate Election Fund.

9 ‘‘(3) TIME TO FILE DECLARATION.—A declara10 tion under paragraph (1) shall be filed by a can11 didate not later than the date that is 30 days before

12 the date of the primary election.

13 ‘‘(b) GENERAL ELECTION PERIOD.—

14 ‘‘(1) IN GENERAL.—A candidate qualifies as a

15 clean money candidate during the general election

16 period if—

17 ‘‘(A)(i) the candidate qualified as a clean

18 money candidate during the primary election

19 period (and primary runoff election period, if

20 applicable); or

21 ‘‘(ii) the candidate files with the Commis22 sion a declaration, signed by the candidate and

23 the treasurer of the candidate’s principal com24 mittee, that the candidate—
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1 ‘‘(I) has complied and will comply

2 with all the requirements of this title; and

3 ‘‘(II) meets the qualifying contribu4 tion requirement of subsection (a)(2);

5 ‘‘(B) the candidate files with the Commis6 sion a written agreement between the candidate

7 and the candidate’s political party in which the

8 political party agrees not to make any expendi9 tures in connection with the general election of

10 the candidate in excess of the limit in section

11 315(d)(3)(C); and

12 ‘‘(C) the candidate’s party nominated the

13 candidate to be placed on the ballot for the gen14 eral election or the candidate qualified to be

15 placed on the ballot as an independent can16 didate, and the candidate is qualified under

17 State law to be on the ballot.

18 ‘‘(2) TIME TO FILE DECLARATION OR STATE19 MENT.—A declaration or statement required to be

20 filed under paragraph (1) shall be filed by a can21 didate not later than the date that is 30 days before

22 the date of the general election.

23 ‘‘(c) GENERAL RUNOFF ELECTION PERIOD.—A can24 didate qualifies as a clean money candidate during the

25 general runoff election period if the candidate qualified as
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1 a clean money candidate during the general election pe2 riod.

3 ‘‘SEC. 503. REQUIREMENTS APPLICABLE TO CLEAN MONEY

4 CANDIDATES.

5 ‘‘(a) OBLIGATION TO COMPLY.—A clean money can6 didate who accepts benefits during the primary election

7 period shall comply with all the requirements of this Act

8 through the primary runoff election period, the general

9 election period, and the general runoff election period (if

10 applicable) whether the candidate continues to accept ben11 efits or not.

12 ‘‘(b) CONTRIBUTIONS AND EXPENDITURES.—

13 ‘‘(1) PROHIBITION OF PRIVATE CONTRIBU14 TIONS.—Except as otherwise provided in this title,

15 during the election cycle of a clean money candidate,

16 the candidate shall not accept contributions other

17 than clean money from any source.

18 ‘‘(2) PROHIBITION OF EXPENDITURES FROM

19 PRIVATE SOURCES.—Except as otherwise provided in

20 this title, during the election cycle of a clean money

21 candidate, the candidate shall not make expenditures

22 from any amounts other than clean money amounts.

23 ‘‘(c) USE OF PERSONAL FUNDS.—
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1 ‘‘(1) IN GENERAL.—A clean money candidate

2 shall not use personal funds to make an expenditure

3 except as provided in paragraph (2).

4 ‘‘(2) EXCEPTIONS.—A seed money contribution

5 or qualifying contribution from the candidate or a

6 member of the candidate’s immediate family shall

7 not be considered to be use of personal funds.

8 ‘‘(d) DEBATES.—

9 ‘‘(1) NUMBER OF DEBATES.—A clean money

10 candidate shall participate in at least—

11 ‘‘(A) 1 public debate with other clean

12 money candidates from the same party for the

13 same office during the primary election period;

14 and

15 ‘‘(B) 2 public debates with other clean

16 money candidates for the same office during the

17 general election period.

18 ‘‘(2) REGULATION.—The Commission shall pro19 mulgate a regulation as necessary to carry out para20 graph (1).

21 ‘‘SEC. 504. SEED MONEY.

22 ‘‘(a) SEED MONEY LIMIT.—A clean money candidate

23 may accept seed money contributions in an aggregate

24 amount not exceeding—

25 ‘‘(1) $50,000; plus
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1 ‘‘(2) if there is more than 1 congressional dis2 trict in the candidate’s State, an amount that is

3 equal to $5,000 times the number of additional con4 gressional districts.

5 ‘‘(b) CONTRIBUTION LIMIT.—Except as provided in

6 section 502(a)(2), a clean money candidate shall not ac7 cept a contribution from any person except a seed money

8 contribution (as defined in section 501).

9 ‘‘(c) RECORDS.—A clean money candidate shall

10 maintain a record of the contributor’s name, street ad11 dress, and amount of the contribution.

12 ‘‘(d) USE OF SEED MONEY.—

13 ‘‘(1) IN GENERAL.—A clean money candidate

14 may expend seed money for any election campaign15 related costs, including costs to open an office, fund

16 a grassroots campaign, or hold community meetings.

17 ‘‘(2) PROHIBITED USES.—A clean money can18 didate shall not expend seed money for—

19 ‘‘(A) a television or radio broadcast; or

20 ‘‘(B) personal use.

21 ‘‘(e) REPORT.—Unless a seed money contribution or

22 expenditure made with a seed money contribution has

23 been reported previously under section 304, a clean money

24 candidate shall file with the Commission a report dis-
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1 closing all seed money contributions and expenditures not

2 later than 48 hours after—

3 ‘‘(1) the earliest date on which the Commission

4 makes funds available to the candidate for an elec5 tion period under paragraph (1) or (2) of section

6 506(b); or

7 ‘‘(2) the end of the clean money qualifying pe8 riod,

9 whichever occurs first.

10 ‘‘(f) TIME TO ACCEPT AND EXPEND SEED MONEY

11 CONTRIBUTIONS.—A clean money candidate may accept

12 and expend seed money contributions for an election dur13 ing the time period beginning on the day after the date

14 of the previous general election for the office to which the

15 candidate is seeking election and ending on the earliest

16 date on which the Commission makes funds available to

17 the candidate for an election period under paragraph (1)

18 or (2) of section 506(b).

19 ‘‘(g) DEPOSIT OF UNSPENT SEED MONEY CON20 TRIBUTIONS.—A clean money candidate shall remit any

21 unspent seed money to the Commission, for deposit in the

22 Senate Election Fund, not later than the earliest date on

23 which the Commission makes funds available to the can24 didate for an election period under paragraph (1) or (2)

25 of section 506(b).
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1 ‘‘(h) NOT CONSIDERED AN EXPENDITURE.—An ex2 penditure made with seed money shall not be treated as

3 an expenditure for purposes of section 506(f)(2).

4 ‘‘SEC. 505. CERTIFICATION BY COMMISSION.

5 ‘‘(a) IN GENERAL.—Not later than 5 days after a

6 candidate files a declaration under section 502, the Com7 mission shall—

8 ‘‘(1) determine whether the candidate meets the

9 eligibility requirements of section 502; and

10 ‘‘(2) certify whether or not the candidate is a

11 clean money candidate.

12 ‘‘(b) REVOCATION OF CERTIFICATION.—The Com13 mission may revoke a certification under subsection (a)

14 if a candidate fails to comply with this title.

15 ‘‘(c) REPAYMENT OF BENEFITS.—If certification is

16 revoked under subsection (b), the candidate shall repay

17 to the Senate Election Fund an amount equal to the value

18 of benefits received under this title.

19 ‘‘SEC. 506. BENEFITS FOR CLEAN MONEY CANDIDATES.

20 ‘‘(a) IN GENERAL.—A clean money candidate shall

21 be entitled to—

22 ‘‘(1) a clean money amount for each election

23 period to make or obligate to make expenditures

24 during the election period for which the clean money

25 is provided, as provided in subsection (c);
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1 ‘‘(2) media benefits under section 315 of the

2 Communications Act of 1934 (47 U.S.C. 315); and

3 ‘‘(3) an aggregate amount of increase in the

4 clean money amount in response to certain inde5 pendent expenditures and expenditures of a private

6 money candidate under subsection (d) that, in the

7 aggregate, are in excess of 125 percent of the clean

8 money amount of the clean money candidate.

9 ‘‘(b) PAYMENT OF CLEAN MONEY AMOUNT.—

10 ‘‘(1) PRIMARY ELECTION.—The Commission

11 shall make funds available to a clean money can12 didate on the later of—

13 ‘‘(A) the date on which the candidate is

14 certified as a clean money candidate under sec15 tion 505; or

16 ‘‘(B) the date on which the primary elec17 tion period begins.

18 ‘‘(2) GENERAL ELECTION.—The Commission

19 shall make funds available to a clean money can20 didate not later than 48 hours after—

21 ‘‘(A) certification of the primary election

22 or primary runoff election result; or

23 ‘‘(B) the date on which the candidate is

24 certified as a clean money candidate under sec25 tion 505 for the general election,
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1 whichever occurs first.

2 ‘‘(3) RUNOFF ELECTION.—The Commission

3 shall make funds available to a clean money can4 didate not later than 48 hours after the certification

5 of the primary or general election result (as applica6 ble).

7 ‘‘(c) CLEAN MONEY AMOUNTS.—

8 ‘‘(1) PRIMARY ELECTION CLEAN MONEY

9 AMOUNT.—

10 ‘‘(A) MAJOR PARTY CANDIDATES.—The

11 primary election clean money amount with re12 spect to a clean money candidate who is a

13 major party candidate is 67 percent of the gen14 eral election clean money amount with respect

15 to the clean money candidate.

16 ‘‘(B) CANDIDATES THAT ARE NOT MAJOR

17 PARTY CANDIDATES.—The primary election

18 clean money amount with respect to a clean

19 money candidate who is not a major party can20 didate is 25 percent of the general election

21 clean money amount with respect to the clean

22 money candidate.

23 ‘‘(2) PRIMARY RUNOFF ELECTION CLEAN

24 MONEY AMOUNT.—The primary runoff election clean

25 money amount with respect to a clean money can-
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1 didate is 25 percent of the primary election clean

2 money amount with respect to the clean money can3 didate.

4 ‘‘(3) GENERAL ELECTION CLEAN MONEY

5 AMOUNT.—

6 ‘‘(A) IN GENERAL.—The general election

7 clean money amount with respect to a clean

8 money candidate is the lesser of—

9 ‘‘(i) $4,400,000; or

10 ‘‘(ii) the greater of—

11 ‘‘(I) $760,000; or

12 ‘‘(II) $320,000; plus

13 ‘‘(aa) 24 cents multiplied by

14 the voting age population not in

15 excess of 4,000,000; and

16 ‘‘(bb) 20 cents multiplied by

17 the voting age population in ex18 cess of 4,000,000.

19 ‘‘(B) EXCEPTION.—In the case of an eligi20 ble Senate candidate in a State that has not

21 more than 1 transmitter for a commercial Very

22 High Frequency (VHF) television station li23 censed to operate in that State, subparagraph

24 (A)(ii)(II) shall be applied by substituting—
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1 ‘‘(i) ‘64 cents’ for ‘24 cents’ in item

2 (aa); and

3 ‘‘(ii) ‘56 cents’ for ‘20 cents’ in item

4 (bb).

5 ‘‘(C) INDEXING.—The clean money

6 amount under subparagraphs (A) and (B) shall

7 be increased as of the beginning of each cal8 endar year based on an increase in the price

9 index determined under section 315(c), except

10 that the base period shall be calendar year

11 1999.

12 ‘‘(4) GENERAL RUNOFF ELECTION CLEAN

13 MONEY AMOUNT.—The general runoff election clean

14 money amount with respect to a clean money can15 didate is 25 percent of the general election clean

16 money amount with respect to the clean money can17 didate.

18 ‘‘(5) UNOPPOSED CANDIDATES.—Except for a

19 candidate receiving amounts under paragraph

20 (1)(B), a clean money candidate in a primary or

21 general election in which there is no opposing can22 didate shall receive a clean money amount with re23 spect to that election equal to 25 percent of the full

24 clean money amount that the candidate would re25 ceive in a contested election.
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1 ‘‘(d) MATCHING FUNDS IN RESPONSE TO INDE2 PENDENT EXPENDITURES AND EXPENDITURES OF PRI3 VATE MONEY CANDIDATES.—

4 ‘‘(1) IN GENERAL.—If the Commission—

5 ‘‘(A) receives notification under—

6 ‘‘(i) subparagraph (A) or (B) of sec7 tion 304(c)(2) that a person has made or

8 obligated to make an independent expendi9 ture in an aggregate amount of $1,000 or

10 more in an election period or that a person

11 has made or obligated to make an inde12 pendent expenditure in an aggregate

13 amount of $500 or more during the 20

14 days preceding the date of an election in

15 support of another candidate or against a

16 clean money candidate; or

17 ‘‘(ii) section 304(d)(1) that a private

18 money candidate has made or obligated to

19 make expenditures in an aggregate amount

20 in excess of 100 percent of the amount of

21 clean money provided to a clean money

22 candidate who is an opponent of the pri23 vate money candidate in the same election;

24 and
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1 ‘‘(B) determines that the aggregate

2 amount of expenditures described in subpara3 graph (A) in an election period is in excess of

4 125 percent of the amount of clean money pro5 vided to a clean money candidate who is an op6 ponent of the private money candidate in the

7 same election or against whom the independent

8 expenditure is made,

9 the Commission shall make available to the clean

10 money candidate, not later than 24 hours after re11 ceiving a notification described in subparagraph (A),

12 an aggregate amount of increase in clean money in

13 an amount equal to the aggregate amount of ex14 penditures that is in excess of 125 percent of the

15 amount of clean money provided to the clean money

16 candidate as determined under subparagraph (B).

17 ‘‘(2) CLEAN MONEY CANDIDATES OPPOSED BY

18 MORE THAN 1 PRIVATE MONEY CANDIDATE.—For

19 purposes of paragraph (1), if a clean money can20 didate is opposed by more than 1 private money can21 didate in the same election, the Commission shall

22 take into account only the amount of expenditures of

23 the private money candidate that expends, in the ag24 gregate, the greatest amount (as determined each
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1 time notification is received under section

2 304(d)(1)).

3 ‘‘(3) CLEAN MONEY CANDIDATES OPPOSED BY

4 CLEAN MONEY CANDIDATES.—If a clean money can5 didate is opposed by a clean money candidate, the

6 increase in clean money amounts under paragraph

7 (1) shall be made available to the clean money can8 didate if independent expenditures are made against

9 the clean money candidate or in behalf of the oppos10 ing clean money candidate in the same manner as

11 the increase would be made available for a clean

12 money candidate who is opposed by a private money

13 candidate.

14 ‘‘(e) LIMITS ON MATCHING FUNDS.—The aggregate

15 amount of clean money that a clean money candidate re16 ceives to match independent expenditures and the expendi17 tures of private money candidates under subsection (d)

18 shall not exceed 200 percent of the clean money amount

19 that the clean money candidate receives under subsection

20 (c).

21 ‘‘(f) EXPENDITURES MADE WITH CLEAN MONEY

22 AMOUNTS.—

23 ‘‘(1) IN GENERAL.—The clean money amount

24 received by a clean money candidate shall be used

25 only for the purpose of making or obligating to make
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1 expenditures during the election period for which the

2 clean money is provided.

3 ‘‘(2) EXPENDITURES IN EXCESS OF CLEAN

4 MONEY AMOUNT.—A clean money candidate shall

5 not make expenditures or incur obligations in excess

6 of the clean money amount.

7 ‘‘(3) PROHIBITED USES.—The clean money

8 amount received by a clean money candidate shall

9 not be—

10 ‘‘(A) converted to a personal use; or

11 ‘‘(B) used in violation of law.

12 ‘‘(4) PETTY CASH FUND.—

13 ‘‘(A) IN GENERAL.—A candidate may es14 tablish a petty cash fund, to be used to pay ex15 penses such as the costs of food, newspapers,

16 magazines, pay telephone calls, and other minor

17 necessary expenses, that contains, on any day,

18 not more than—

19 ‘‘(i) $200; plus

20 ‘‘(ii) if there is more than 1 congres21 sional district in the candidate’s State, an

22 amount that is equal to $20 times the

23 number of additional congressional dis24 tricts.
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1 ‘‘(B) RECEIPT.—An expenditure from the

2 petty cash fund in an amount greater than $25

3 shall be evidenced by a receipt describing the

4 item purchased, the purpose and cost of the

5 item, and the name and street address of the

6 seller.

7 ‘‘(5) PENALTY.—A person that uses a clean

8 money amount in violation of this subsection shall be

9 imprisoned not more than 5 years, fined not more

10 than $15,000, or both.

11 ‘‘(g) REMITTING OF CLEAN MONEY AMOUNTS.—Not

12 later than the date that is 14 days after the last day of

13 the applicable election period, a clean money candidate

14 shall remit any unspent clean money amount to the Com15 mission for deposit in the Senate Election Fund.

16 ‘‘SEC. 507. ADMINISTRATION OF CLEAN MONEY.

17 ‘‘(a) SENATE ELECTION FUND.—

18 ‘‘(1) ESTABLISHMENT.—There is established in

19 the Treasury a fund to be known as the ‘Senate

20 Election Fund’.

21 ‘‘(2) DEPOSITS.—The Commission shall deposit

22 unspent seed money contributions, qualifying con23 tributions, penalty amounts received under this title,

24 and amounts appropriated for clean money financing

25 in the Senate Election Fund.
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1 ‘‘(3) FUNDS.—The Commission shall withdraw

2 the clean money amount for a clean money can3 didate from the Senate Election Fund.

4 ‘‘(b) REGULATIONS.—The Commission shall promul5 gate a regulation to—

6 ‘‘(1) effectively and efficiently monitor and en7 force the limits on use of private money by clean

8 money candidates;

9 ‘‘(2) effectively and efficiently monitor use of

10 publicly financed amounts under this title; and

11 ‘‘(3) enable clean money candidates to monitor

12 expenditures and comply with the requirements of

13 this title.

14 ‘‘SEC. 508. EXPENDITURES MADE FROM FUNDS OTHER

15 THAN CLEAN MONEY.

16 ‘‘If a clean money candidate makes an expenditure

17 using funds other than funds provided under this title, the

18 Commission shall assess a civil penalty against the can19 didate in an amount that is not more than 10 times the

20 amount of the expenditure.

21 ‘‘SEC. 509. AUTHORIZATION OF APPROPRIATIONS.

22 ‘‘There are authorized to be appropriated to the Sen23 ate Election Fund such sums as are necessary to carry

24 out this title.’’.
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1 SEC. 103. REPORTING REQUIREMENTS FOR EXPENDITURES

2 OF PRIVATE MONEY CANDIDATES.

3 Section 304 of the Federal Election Campaign Act

4 of 1971 (2 U.S.C. 434) is amended by adding at the end

5 the following:

6 ‘‘(d) PRIVATE MONEY CANDIDATES.—

7 ‘‘(1) EXPENDITURES IN EXCESS OF CLEAN

8 MONEY AMOUNTS.—Not later than 48 hours after

9 making or obligating to make an expenditure, a pri10 vate money candidate (as defined in section 501)

11 that makes or obligates to make expenditures during

12 an election period (as defined by section 501), in an

13 aggregate amount in excess of 100 percent of the

14 amount of clean money provided to a clean money

15 candidate (as defined in section 501), who is an op16 ponent of the private money candidate shall file with

17 the Commission a report stating the amount of each

18 expenditure (in increments of an aggregate amount

19 of $1,000) made or obligated to be made.

20 ‘‘(2) PLACE OF FILING; NOTIFICATION.—

21 ‘‘(A) PLACE OF FILING.—A report under

22 this subsection shall be filed with the Commis23 sion.

24 ‘‘(B) NOTIFICATION OF CLEAN MONEY

25 CANDIDATES.—Not later than 24 hours after

26 receipt of a report under this subsection, the
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1 Commission shall notify each clean money can2 didate seeking nomination for election to, or

3 election to, the office the private money can4 didate is seeking, of the receipt of the report.

5 ‘‘(3) DETERMINATIONS BY THE COMMISSION.—

6 ‘‘(A) IN GENERAL.—The Commission may,

7 on a request of a candidate or on its own initia8 tive, make a determination that a private

9 money candidate has made, or has obligated to

10 make, expenditures in excess of the applicable

11 amount in paragraph (1).

12 ‘‘(B) NOTIFICATION.—In the case of such

13 a determination, the Commission shall notify

14 each clean money candidate seeking nomination

15 for election to, or election to, the office the pri16 vate money candidate is seeking, of the deter17 mination not later than 24 hours after making

18 the determination.

19 ‘‘(C) TIME TO COMPLY WITH REQUEST

20 FOR DETERMINATION.—A determination made

21 at the request of a candidate shall be made not

22 later than 48 hours after the time of the re23 quest.’’.
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1 SEC. 104. TRANSITION RULE FOR CURRENT ELECTION

2 CYCLE.

3 (a) IN GENERAL.—During the election cycle in effect

4 on the date of enactment of this Act, a candidate may

5 be certified as a clean money candidate (as defined in sec6 tion 501 of the Federal Election Campaign Act of 1971,

7 as added by section 102 of this Act), notwithstanding the

8 acceptance of contributions or making of expenditures

9 from private funds before the date of enactment that

10 would, absent this section, disqualify the candidate as a

11 clean money candidate.

12 (b) PRIVATE FUNDS.—A candidate may be certified

13 as a clean money candidate only if any private funds ac14 cepted and not expended before the date of enactment of

15 this Act are—

16 (1) returned to the contributor; or

17 (2) submitted to the Federal Election Commis18 sion for deposit in the Senate Election Fund (as de19 fined in section 501 of the Federal Election Cam20 paign Act of 1971, as added by section 102 of this

21 Act).
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1 TITLE II—INDEPENDENT EX2 PENDITURES; COORDINATED

3 EXPENDITURES

4 SEC. 201. REPORTING REQUIREMENTS FOR INDEPENDENT

5 EXPENDITURES.

6 (a) INDEPENDENT EXPENDITURES.—Section 304(c)

7 of the Federal Election Campaign Act of 1971 (2 U.S.C.

8 434(c)) is amended—

9 (1) by striking ‘‘(c)(1) Every person’’ and in10 serting the following:

11 ‘‘(c) INDEPENDENT EXPENDITURES.—

12 ‘‘(1) IN GENERAL.—

13 ‘‘(A) REQUIRED FILING.—Except as pro14 vided in paragraph (2), every person’’;

15 (2) in paragraph (2), by redesignating subpara16 graphs (A), (B), and (C) as clauses (i), (ii), and

17 (iii), respectively, and adjusting the margins accord18 ingly;

19 (3) by redesignating paragraphs (2) and (3) as

20 subparagraphs (B) and (C), respectively, and adjust21 ing the margins accordingly; and

22 (4) by adding at the end the following:

23 ‘‘(2) SENATE ELECTIONS.—

24 ‘‘(A) INDEPENDENT EXPENDITURES MORE

25 THAN 20 DAYS BEFORE AN ELECTION.—
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1 ‘‘(i) IN GENERAL.—If, more than 20

2 days before the date of an election for the

3 office of Senator, a person makes or obli4 gates to make independent expenditures in

5 an aggregate amount exceeding $1,000

6 during an election period (as defined in

7 section 501) in support of, or in opposition

8 to, a candidate for the office, such person

9 shall file with the Commission a statement

10 containing the information described in

11 clause (ii) not later than 48 hours after

12 making or obligating to make such expend13 itures.

14 ‘‘(ii) CONTENTS OF STATEMENT.—A

15 statement under subparagraph (A) shall

16 include a certification, under penalty of

17 perjury, that contains the information re18 quired by subsection (b)(6)(B)(iii).

19 ‘‘(iii) ADDITIONAL STATEMENTS.—An

20 additional statement shall be filed for each

21 aggregate of independent expenditures that

22 exceeds $1,000.

23 ‘‘(B) INDEPENDENT EXPENDITURES DUR24 ING THE 20 DAYS PRECEDING AN ELECTION.—

25 If, during the 20 days preceding the date of an
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1 election for the office of Senator, a person

2 makes or obligates to make independent ex3 penditures in an aggregate amount exceeding

4 $500 in support of, or in opposition to, a can5 didate for the office, such person shall file with

6 the Commission a statement setting forth the

7 amount of each such expenditure not later than

8 24 hours after making or obligating to make

9 such expenditures.

10 ‘‘(C) PLACE OF FILING; NOTIFICATION.—

11 ‘‘(i) PLACE OF FILING.—A report or

12 statement under this paragraph shall be

13 filed with the Commission.

14 ‘‘(ii) NOTIFICATION OF CLEAN MONEY

15 CANDIDATES.—Not later than 24 hours

16 after receipt of a statement under this

17 paragraph, the Commission shall notify

18 each clean money candidate seeking nomi19 nation for election to, or election to, the of20 fice in question of the receipt of a state21 ment.

22 ‘‘(D) DETERMINATION BY THE COMMIS23 SION.—

24 ‘‘(i) IN GENERAL.—The Commission

25 may, on request of a candidate or on its
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1 own initiative, make a determination that a

2 person has made or obligated to make

3 independent expenditures with respect to a

4 candidate that in the aggregate exceed the

5 applicable amount under subparagraph

6 (A).

7 ‘‘(ii) NOTIFICATION.—Not later than

8 24 hours after making a determination

9 under clause (i), the Commission shall no10 tify each clean money candidate in the

11 election of the determination.

12 ‘‘(iii) TIME TO COMPLY WITH RE13 QUEST FOR DETERMINATION.—A deter14 mination made at the request of a can15 didate shall be made not later than 48

16 hours after the time of the request.’’.

17 SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE.

18 (a) IN GENERAL.—Section 301 of the Federal Elec19 tion Campaign Act of 1971 (2 U.S.C. 431) is amended

20 by striking paragraph (17) and inserting the following:

21 ‘‘(17) INDEPENDENT EXPENDITURE.—

22 ‘‘(A) IN GENERAL.—The term ‘‘inde23 pendent expenditure’’ means an expenditure

24 made by a person other than a candidate or

25 candidate’s authorized committee—
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1 ‘‘(i) for a communication that is ex2 press advocacy; and

3 ‘‘(ii) that is not coordinated activity

4 or is not provided in coordination with a

5 candidate or a candidate’s agent or a per6 son who is coordinating with a candidate

7 or a candidate’s agent.

8 ‘‘(B) EXPRESS ADVOCACY.—Except as pro9 vided in subparagraph (C), the term ‘express

10 advocacy’ means a communication that is made

11 through a broadcast medium, newspaper, maga12 zine, billboard, direct mail, or similar type of

13 general public communication or political adver14 tising and that advocates the election or defeat

15 of a clearly identified candidate by—

16 ‘‘(i) containing a phrase such as ‘vote

17 for’, ‘re-elect’, ‘support’, ‘cast your ballot

18 for’, ‘(name of candidate) for Congress’,

19 ‘(name of candidate) in (year)’, ‘vote

20 against’, ‘defeat’, ‘reject’;

21 ‘‘(ii) containing campaign slogans or

22 individual words that in context can have

23 no reasonable meaning other than to rec24 ommend the election or defeat of 1 or more

25 clearly identified candidates; or
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1 ‘‘(iii) referring to a clearly identified

2 candidate in a paid advertisement that is

3 broadcast through radio or television but

4 only if the communication—

5 ‘‘(I) is made not more than 60

6 days before the date of a general elec7 tion; and

8 ‘‘(II) involves aggregate disburse9 ments of $5,000 or more.

10 ‘‘(C) VOTING RECORD AND VOTING GUIDE

11 EXCEPTION.—The term ‘express advocacy’ does

12 not include a communication which is in printed

13 form or posted on the Internet that—

14 ‘‘(i) presents information solely about

15 the voting record or position on a cam16 paign issue of 1 or more candidates (in17 cluding any statement by the sponsor of

18 the voting record or voting guide of its

19 agreement or disagreement with the record

20 or position of a candidate), so long as the

21 voting record or voting guide when taken

22 as a whole does not express unmistakable

23 and unambiguous support for or opposition

24 to one or more clearly identified can25 didates;
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1 ‘‘(ii) is not coordinated activity or is

2 not made in coordination with a candidate,

3 political party, or agent of the candidate or

4 party, or a candidate’s agent or a person

5 who is coordinating with a candidate or a

6 candidate’s agent, except that nothing in

7 this clause may be construed to prevent

8 the sponsor of the voting guide from di9 recting questions in writing to a candidate

10 about the candidate’s position on issues for

11 purposes of preparing a voter guide or to

12 prevent the candidate from responding in

13 writing to such questions; and

14 ‘‘(iii) does not contain a phrase such

15 as ‘vote for’, ‘re-elect’, ‘support’, ‘cast your

16 ballot for’, ‘(name of candidate) for Con17 gress’, ‘(name of candidate) in (year)’,

18 ‘vote against’, ‘defeat’, or ‘reject’, or a

19 campaign slogan or words that in context

20 can have no reasonable meaning other than

21 to urge the election or defeat of one or

22 more clearly identified candidates.’’.

23 (b) DEFINITION APPLICABLE WHEN PROVISION NOT

24 IN EFFECT.—For purposes of the Federal Election Cam25 paign Act of 1971, during any period beginning after the
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1 effective date of this Act in which the definition, or any

2 part of the definition, under section 301(17)(B) of that

3 Act (as added by subsection (a)) is not in effect, the defini4 tion of ‘express advocacy’ shall mean, in addition to the

5 part of the definition that is in effect, a communication

6 that clearly identifies a candidate and—

7 (1) taken as a whole and with limited reference

8 to external events, such as proximity to an election,

9 expresses unmistakable support for or opposition to

10 1 or more clearly identified candidates; or

11 (2) is made for the clear purpose of advocating

12 the election or defeat of the candidate, as shown by

13 the existence of each of the following factors:

14 (A) A statement or action by the person

15 making the communication.

16 (B) The targeting or placement of the

17 communication.

18 (C) The use by the person making the

19 communication of polling, demographic, or

20 other similar data relating to the candidate’s

21 campaign for election.

22 SEC. 203. LIMIT ON EXPENDITURES BY POLITICAL PARTY

23 COMMITTEES.

24 Section 315(d)(3) of the Federal Election Campaign

25 Act of 1971 (2 U.S.C. 441a(d)(3)) is amended—
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1 (1) in subparagraph (A)—

2 (A) by inserting ‘‘except an election in

3 which 1 or more of the candidates is a clean

4 money candidate (as defined in section 501)’’

5 after ‘‘Senator’’; and

6 (B) by striking ‘‘and’’ at the end;

7 (2) in subparagraph (B), by striking the period

8 at the end and inserting ‘‘; and’’; and

9 (3) by adding at the end the following:

10 ‘‘(C) in the case of a candidate for election to

11 the office of Senator in which 1 or more candidates

12 is a clean money candidate (as defined in section

13 501), 10 percent of the amount of clean money that

14 a clean money candidate is eligible to receive for the

15 general election period.’’.

16 SEC. 204. PARTY INDEPENDENT EXPENDITURES AND CO17 ORDINATED EXPENDITURES.

18 (a) DETERMINATION TO MAKE COORDINATED EX19 PENDITURES.—Section 315(d) of the Federal Election

20 Campaign Act of 1971 (2 U.S.C. 441a(d)) is amended—

21 (1) in paragraph (1)—

22 (A) by inserting ‘‘coordinated’’ after

23 ‘‘make’’; and

24 (B) by striking ‘‘(2) and (3)’’ and inserting

25 ‘‘(2), (3), and (4)’’; and
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1 (2) by adding at the end the following:

2 ‘‘(4)(A) Before a committee of a political party

3 makes a coordinated expenditure in connection with

4 a general election campaign for Federal office in ex5 cess of $5,000, the committee shall file with the

6 Commission a certification, signed by the treasurer

7 of the committee, that the committee has not made

8 and will not make any independent expenditures in

9 connection with that campaign for Federal office. A

10 party committee that determines to make a coordi11 nated expenditure shall not make any transfer of

12 funds in the same election cycle to, or receive any

13 transfer of funds in the same election cycle from,

14 any other party committee that determines to make

15 independent expenditures in connection with the

16 same campaign for Federal office.

17 ‘‘(B) A committee of a political party shall be

18 considered to be in coordination with a candidate of

19 the party if the committee—

20 ‘‘(i) makes a payment for a communication

21 or anything of value which constitutes a coordi22 nated activity described in section 301(8)(C);

23 ‘‘(ii) makes a coordinated expenditure

24 under this subsection on behalf of the can25 didate;
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1 ‘‘(iii) participates in joint fundraising with

2 the candidate or in any way solicits or receives

3 a contribution on behalf of the candidate;

4 ‘‘(iv) communicates with the candidate, or

5 an agent of the candidate (including a pollster,

6 media consultant, vendor, advisor, or staff

7 member), acting on behalf of the candidate,

8 about advertising, message, allocation of re9 sources, fundraising, or other campaign matters

10 related to the candidate’s campaign, including

11 campaign operations, staffing, tactics or strat12 egy; or

13 ‘‘(v) provides in-kind services, polling data,

14 or anything of value to the candidate.

15 ‘‘(C) For purposes of this paragraph, all polit16 ical committees established and maintained by a na17 tional political party (including all congressional

18 campaign committees) and all political committees

19 established by State political parties shall be consid20 ered to be a single political committee.

21 ‘‘(D) For purposes of subparagraph (A), any

22 coordination between a committee of a political party

23 and a candidate of the party after the candidate has

24 filed a statement of candidacy constitutes coordina25 tion for the period beginning with the filing of the
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1 statement of candidacy and ending at the end of the

2 election cycle.’’.

3 (b) DEFINITION OF COORDINATION WITH CAN4 DIDATES.—

5 (1) SECTION 301(8).—Section 301(8) of the

6 Federal Election Campaign Act of 1971 (2 U.S.C.

7 431(8)) is amended—

8 (A) in subparagraph (A)—

9 (i) by striking ‘‘or’’ at the end of

10 clause (i);

11 (ii) by striking the period at the end

12 of clause (ii) and inserting ‘‘; or’’; and

13 (iii) by adding at the end the fol14 lowing:

15 ‘‘(iii) any coordinated activity (as de16 fined in subparagraph (C)).’’; and

17 (B) by adding at the end the following:

18 ‘‘(C) The term ‘coordinated activity’ means

19 anything of value provided by a person in co20 ordination with a candidate, an agent of the

21 candidate, or the political party of the can22 didate or its agent for the purpose of influ23 encing a Federal election (regardless of whether

24 the value being provided is a communication

25 that is express advocacy) in which such can-
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1 didate seeks nomination or election to Federal

2 office, and includes any of the following:

3 ‘‘(i) A payment made by a person in

4 cooperation, consultation, or concert with,

5 at the request or suggestion of, or pursu6 ant to any general or particular under7 standing with a candidate, the candidate’s

8 authorized committee, the political party of

9 the candidate, or an agent acting on behalf

10 of a candidate, authorized committee, or

11 the political party of the candidate.

12 ‘‘(ii) A payment made by a person for

13 the production, dissemination, distribution,

14 or republication, in whole or in part, of any

15 broadcast or any written, graphic, or other

16 form of campaign material prepared by a

17 candidate, a candidate’s authorized com18 mittee, or an agent of a candidate or au19 thorized committee (not including a com20 munication described in paragraph

21 (9)(B)(i) or a communication that ex22 pressly advocates the candidate’s defeat).

23 ‘‘(iii) A payment made by a person

24 based on information about a candidate’s

25 plans, projects, or needs provided to the
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1 person making the payment by the can2 didate or the candidate’s agent who pro3 vides the information with the intent that

4 the payment be made.

5 ‘‘(iv) A payment made by a person if,

6 in the same election cycle in which the pay7 ment is made, the person making the pay8 ment is serving or has served as a member,

9 employee, fundraiser, or agent of the can10 didate’s authorized committee in an execu11 tive or policymaking position.

12 ‘‘(v) A payment made by a person if

13 the person making the payment has served

14 in any formal policymaking or advisory po15 sition with the candidate’s campaign or

16 has participated in formal strategic or for17 mal policymaking discussions (other than

18 any discussion treated as a lobbying con19 tact under the Lobbying Disclosure Act of

20 1995 in the case of a candidate holding

21 Federal office or as a similar lobbying ac22 tivity in the case of a candidate holding

23 State or other elective office) with the can24 didate’s campaign relating to the can25 didate’s pursuit of nomination for election,
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1 or election, to Federal office, in the same

2 election cycle as the election cycle in which

3 the payment is made.

4 ‘‘(vi) A payment made by a person if,

5 in the same election cycle, the person mak6 ing the payment retains the professional

7 services of any person that has provided or

8 is providing campaign-related services in

9 the same election cycle to a candidate (in10 cluding services provided through a polit11 ical committee of the candidate’s political

12 party) in connection with the candidate’s

13 pursuit of nomination for election, or elec14 tion, to Federal office, including services

15 relating to the candidate’s decision to seek

16 Federal office, and the person retained is

17 retained to work on activities relating to

18 that candidate’s campaign.

19 ‘‘(vii) A payment made by a person

20 who has directly participated in fund21 raising activities with the candidate or in

22 the solicitation or receipt of contributions

23 on behalf of the candidate.

24 ‘‘(viii) A payment made by a person

25 who has communicated with the candidate
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1 or an agent of the candidate (including a

2 communication through a political com3 mittee of the candidate’s political party)

4 after the declaration of candidacy (includ5 ing a pollster, media consultant, vendor,

6 advisor, or staff member acting on behalf

7 of the candidate), about advertising mes8 sage, allocation of resources, fundraising,

9 or other campaign matters related to the

10 candidate’s campaign, including campaign

11 operations, staffing, tactics, or strategy.

12 ‘‘(ix) The provision of in-kind profes13 sional services or polling data (including

14 services or data provided through a polit15 ical committee of the candidate’s political

16 party) to the candidate or candidate’s

17 agent.

18 ‘‘(x) A payment made by a person

19 who has engaged in a coordinated activity

20 with a candidate described in clauses (i)

21 through (ix) for a communication that

22 clearly refers to the candidate or the can23 didate’s opponent and is for the purpose of

24 influencing that candidates’s election (re-
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1 gardless of whether the communication is

2 express advocacy).

3 ‘‘(D) For purposes of subparagraph (C),

4 the term ‘professional services’ means polling,

5 media advice, fundraising, campaign research or

6 direct mail (except for mailhouse services solely

7 for the distribution of voter guides as defined in

8 section 301(17)(C)) services in support of a

9 candidate’s pursuit of nomination for election,

10 or election, to Federal office.

11 ‘‘(E) For purposes of subparagraph (C),

12 all political committees established and main13 tained by a national political party (including

14 all congressional campaign committees) and all

15 political committees established and maintained

16 by a State political party (including any subor17 dinate committee of a State committee) shall be

18 considered to be a single political committee.’’.

19 (2) SECTION 315(a)(7).—Section 315(a)(7) (2

20 U.S.C. 441a(a)(7)) is amended by striking subpara21 graph (B) and inserting the following:

22 ‘‘(B) a coordinated activity, as described in

23 section 301(8)(C), shall be considered to be a

24 contribution to the candidate, and in the case
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1 of a limitation on expenditures, shall be treated

2 as an expenditure by the candidate.’’.

3 (c) MEANING OF CONTRIBUTION OR EXPENDITURE

4 FOR THE PURPOSES OF SECTION 316.—Section 316(b)(2)

5 of the Federal Election Campaign Act of 1971 (2 U.S.C.

6 441b(b)(2)) is amended by striking ‘‘shall include’’ and

7 inserting ‘‘includes a contribution or expenditure (as those

8 terms are defined in section 301) and also includes’’.

9 TITLE III—VOTER INFORMATION

10 SEC. 301. FREE BROADCAST TIME.

11 Section 315 of the Communications Act of 1934 (47

12 U.S.C. 315) is amended—

13 (1) in subsection (a), in the third sentence, by

14 striking ‘‘within the meaning of this subsection’’ and

15 inserting ‘‘within the meaning of this subsection or

16 subsection (c)’’;

17 (2) by redesignating subsections (c) and (d) as

18 subsections (d) and (e), respectively;

19 (3) by inserting after subsection (b) the fol20 lowing:

21 ‘‘(c) FREE BROADCAST TIME.—

22 ‘‘(1) AMOUNT OF TIME.—A clean money can23 didate shall be entitled to receive—
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1 ‘‘(A) 30 minutes of free broadcast time

2 during each of the primary election period and

3 the primary runoff election period; and

4 ‘‘(B) 60 minutes of free broadcast time

5 during the general election period.

6 ‘‘(2) TIME DURING WHICH THE BROADCAST IS

7 AIRED.—The broadcast time available under para8 graph (1) shall be—

9 ‘‘(A) with respect to a television broadcast,

10 the time between 6:00 p.m. and 10:00 p.m. on

11 any day that falls on Monday through Friday;

12 and

13 ‘‘(B) with respect to a radio broadcast, the

14 time between 7:00 a.m. and 9:30 a.m. or be15 tween 4:30 p.m. and 7:00 p.m. on any day that

16 falls on Monday through Friday.

17 ‘‘(3) MAXIMUM REQUIRED OF ANY STATION.—

18 The amount of free broadcast time that any 1 sta19 tion is required to make available to any 1 clean

20 money candidate during each of the primary election

21 period, primary runoff election period, and general

22 election period shall not exceed 15 minutes.

23 ‘‘(4) CONTENT OF BROADCAST.—A broadcast

24 under this subsection shall be more than 30 seconds

25 and less than 5 minutes in length.’’; and
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1 (4) in subsection (d) (as redesignated by para2 graph (1))—

3 (A) by striking ‘‘and’’ at the end of para4 graph (1);

5 (B) by striking the period at the end of

6 paragraph (2) and inserting a semicolon, and

7 by redesignating that paragraph as paragraph

8 (4);

9 (C) by inserting after paragraph (1) the

10 following:

11 ‘‘(2) the term ‘clean money candidate’ has the

12 meaning given in section 501 of the Federal Election

13 Campaign Act of 1971;

14 ‘‘(3) the term ‘general election period’ has the

15 meaning given in section 501 of the Federal Election

16 Campaign Act of 1971;’’; and

17 (D) by adding at the end the following:

18 ‘‘(5) the term ‘primary election period’ has the

19 meaning given in section 501 of the Federal Election

20 Campaign Act of 1971;

21 ‘‘(6) the term ‘private money candidate’ has the

22 meaning given in section 501 of the Federal Election

23 Campaign Act of 1971; and
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1 ‘‘(7) the term ‘primary runoff election period’

2 has the meaning given in section 501 of the Federal

3 Election Campaign Act of 1971.’’.

4 SEC. 302. BROADCAST RATES AND PREEMPTION.

5 (a) BROADCAST RATES.—Section 315(b) of the Com6 munications Act of 1934 (47 U.S.C. 315(b)) is amended—

7 (1) by redesignating paragraphs (1) and (2) as

8 subparagraphs (A) and (B), respectively, and adjust9 ing the margins accordingly;

10 (2) by striking ‘‘The charges’’ and inserting the

11 following:

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the charges’’; and

14 (3) by adding at the end the following:

15 ‘‘(2) CLEAN MONEY CANDIDATES.—In the case

16 of a clean money candidate, the charges for the use

17 of a television broadcasting station shall not exceed

18 50 percent of the lowest charge described in para19 graph (1)(A) during—

20 ‘‘(A) the 30 days preceding the date of a

21 primary or primary runoff election in which the

22 candidate is opposed; and

23 ‘‘(B) the 60 days preceding the date of a

24 general or special election in which the can25 didate is opposed.
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1 ‘‘(3) RATE CARDS.—A licensee shall provide to

2 a Senate candidate a rate card that discloses—

3 ‘‘(A) the rate charged under this sub4 section; and

5 ‘‘(B) the method that the licensee uses to

6 determine the rate charged under this sub7 section.’’.

8 (b) PREEMPTION.—Section 315 of the Communica9 tions Act of 1934 (47 U.S.C. 315) (as amended by section

10 301) is amended—

11 (1) by redesignating subsections (d) and (e) as

12 subsections (e) and (f), respectively; and

13 (2) by inserting after subsection (d) the fol14 lowing:

15 ‘‘(d) PREEMPTION.—

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), a licensee shall not preempt the use of a

18 broadcasting station by a legally qualified candidate

19 for the United States Senate who has purchased and

20 paid for such use.

21 ‘‘(2) CIRCUMSTANCES BEYOND CONTROL OF LI22 CENSEE.—If a program to be broadcast by a broad23 casting station is preempted because of cir24 cumstances beyond the control of the broadcasting

25 station, any candidate advertising spot scheduled to
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1 be broadcast during that program may also be pre2 empted.’’.

3 SEC. 303. CAMPAIGN ADVERTISEMENTS; ISSUE ADVERTISE4 MENTS.

5 (a) CONTENTS OF CAMPAIGN ADVERTISEMENTS.—

6 Section 318 of the Federal Election Campaign Act of

7 1971 (2 U.S.C. 441d) is amended—

8 (1) in subsection (a)—

9 (A) in the matter preceding paragraph

10 (1)—

11 (i) by striking ‘‘Whenever’’ and insert12 ing ‘‘Whenever a political committee makes

13 a disbursement for the purpose of financ14 ing any communication through any broad15 casting station, newspaper, magazine, out16 door advertising facility, mailing, or any

17 other type of general public political adver18 tising, or whenever’’;

19 (ii) by striking ‘‘an expenditure’’ and

20 inserting ‘‘a disbursement’’; and

21 (iii) by striking ‘‘direct’’; and

22 (B) in paragraph (3), by inserting ‘‘and

23 permanent street address’’ after ‘‘name’’; and

24 (2) by adding at the end the following:
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1 ‘‘(c) Any printed communication described in sub2 section (a) shall be—

3 ‘‘(1) of sufficient type size to be clearly read4 able by the recipient of the communication;

5 ‘‘(2) contained in a printed box set apart from

6 the other contents of the communication; and

7 ‘‘(3) consist of a reasonable degree of color con8 trast between the background and the printed state9 ment.

10 ‘‘(d)(1) Any broadcast or cablecast communication

11 described in paragraph (1) or (2) of subsection (a) shall

12 include, in addition to the requirements of those para13 graphs, an audio statement by the candidate that identi14 fies the candidate and states that the candidate has ap15 proved the communication.

16 ‘‘(2) If a broadcast or cablecast communication de17 scribed in paragraph (1) is broadcast or cablecast by

18 means of television, the communication shall include, in

19 addition to the audio statement under paragraph (1), a

20 written statement which—

21 ‘‘(A) appears at the end of the communication

22 in a clearly readable manner with a reasonable de23 gree of color contrast between the background and

24 the printed statement, for a period of at least 4 sec25 onds; and
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1 ‘‘(B) is accompanied by a clearly identifiable

2 photographic or similar image of the candidate.

3 ‘‘(e) Any broadcast or cablecast communication de4 scribed in subsection (a)(3) shall include, in addition to

5 the other requirements of this section, in a clearly spoken

6 manner, the following statement: ‘llllllll is

7 responsible for the content of this advertisement.’ (with

8 the blank to be filled in with the name of the political

9 committee or other person paying for the communication

10 and the name of any connected organization of the payor).

11 If broadcast or cablecast by means of television, the state12 ment shall also appear in a clearly readable manner with

13 a reasonable degree of color contrast between the back14 ground and the printed statement, for a period of at least

15 4 seconds.

16 ‘‘(f) Any broadcast or cablecast communication de17 scribed in subsection (a)(1), made by or on behalf of a

18 private money candidate (as defined in section 501), shall

19 include, in addition to the other requirements of this sec20 tion, in a clearly spoken manner, the following statement:

21 ‘This candidate has chosen not to participate in the Clean

22 Money, Clean Elections Act and is receiving campaign

23 contributions from private sources’.’’.

24 (b) REPORTING REQUIREMENTS FOR ISSUE ADVER25 TISEMENTS.—Section 304 of the Federal Election Cam-
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1 paign Act of 1971 (2 U.S.C. 434) (as amended by section

2 103) is amended by adding at the end the following:

3 ‘‘(e) ISSUE ADVERTISEMENTS.—

4 ‘‘(1) IN GENERAL.—A person that makes or ob5 ligates to make a disbursement to purchase an issue

6 advertisement shall file a report with the Commis7 sion not later than 48 hours after making or obli8 gating to make the disbursement, containing the fol9 lowing information—

10 ‘‘(A) the amount of the disbursement;

11 ‘‘(B) the information required under sub12 section (b)(3)(A) for each person that makes a

13 contribution, in an aggregate amount of $5,000

14 or greater in a calendar year, to the person who

15 makes the disbursement;

16 ‘‘(C) the name and address of the person

17 making the disbursement; and

18 ‘‘(D) the purpose of the issue advertise19 ment.

20 ‘‘(2) DEFINITION OF ISSUE ADVERTISEMENT.—

21 In this subsection, the term ‘issue advertisement’

22 means a communication through a broadcasting sta23 tion, newspaper, magazine, outdoor advertising facil24 ity, mailing, or any other type of general public po25 litical advertising—
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1 ‘‘(A) the purchase of which is not an inde2 pendent expenditure or a contribution;

3 ‘‘(B) that contains the name or likeness of

4 a Senate candidate;

5 ‘‘(C) that is communicated during an elec6 tion year; and

7 ‘‘(D) that recommends a position on a po8 litical issue.’’.

9 SEC. 304. LIMIT ON CONGRESSIONAL USE OF THE FRANK10 ING PRIVILEGE.

11 Section 3210(a)(6) of title 39, United States Code,

12 is amended by striking subparagraph (A) and inserting

13 the following:

14 ‘‘(A)(i) Except as provided in clause (ii), a

15 Member of Congress shall not mail any mass

16 mailing as franked mail during a year in which

17 there will be an election for the seat held by the

18 Member during the period between January 1

19 of that year and the date of the general election

20 for that office, unless the Member has made a

21 public announcement that the Member will not

22 be a candidate for reelection in that year or for

23 election to any other Federal office.

24 ‘‘(ii) A Member of Congress may mail a

25 mass mailing as franked mail if—
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1 ‘‘(I) the purpose of the mailing is to

2 communicate information about a public

3 meeting; and

4 ‘‘(II) the content of the mailed matter

5 includes only the candidate’s name, and

6 the date, time, and place of the public

7 meeting.’’.

8 TITLE IV—SOFT MONEY

9 SEC. 401. SOFT MONEY OF POLITICAL PARTIES.

10 Title III of the Federal Election Campaign Act of

11 1971 (2 U.S.C. 431 et seq.) is amended by adding at the

12 end the following:

13 ‘‘SEC. 323. SOFT MONEY OF POLITICAL PARTIES.

14 (a) NATIONAL COMMITTEES.—

15 ‘‘(1) IN GENERAL.—A national committee of a

16 political party (including a national congressional

17 campaign committee of a political party) and any of18 ficers or agents of such party committees, shall not

19 solicit, receive, or direct to another person a con20 tribution, donation, or transfer of funds, or spend

21 any funds, that are not subject to the limitations,

22 prohibitions, and reporting requirements of this Act.

23 ‘‘(2) APPLICABILITY.—This subsection shall

24 apply to an entity that is directly or indirectly estab25 lished, financed, maintained, or controlled by a na-
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1 tional committee of a political party (including a na2 tional congressional campaign committee of a polit3 ical party), or an entity acting on behalf of a na4 tional committee, and an officer or agent acting on

5 behalf of any such committee or entity.

6 ‘‘(b) STATE, DISTRICT, AND LOCAL COMMITTEES.—

7 ‘‘(1) IN GENERAL.—An amount that is ex8 pended or disbursed by a State, district, or local

9 committee of a political party (including an entity

10 that is directly or indirectly established, financed,

11 maintained, or controlled by a State, district, or

12 local committee of a political party and an officer or

13 agent acting on behalf of such committee or entity)

14 for Federal election activity shall be made from

15 funds subject to the limitations, prohibitions, and re16 porting requirements of this Act.

17 ‘‘(2) FEDERAL ELECTION ACTIVITY.—

18 ‘‘(A) IN GENERAL.—The term ‘Federal

19 election activity’ means—

20 ‘‘(i) voter registration activity during

21 the period that begins on the date that is

22 120 days before the date a regularly sched23 uled Federal election is held and ends on

24 the date of the election;
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1 ‘‘(ii) voter identification, get-out-the2 vote activity, or generic campaign activity

3 conducted in connection with an election in

4 which a candidate for Federal office ap5 pears on the ballot (regardless of whether

6 a candidate for State or local office also

7 appears on the ballot); and

8 ‘‘(iii) a communication that refers to a

9 clearly identified candidate for Federal of10 fice (regardless of whether a candidate for

11 State or local office is also mentioned or

12 identified) and is made for the purpose of

13 influencing a Federal election (regardless

14 of whether the communication is express

15 advocacy).

16 ‘‘(B) EXCLUDED ACTIVITY.—The term

17 ‘Federal election activity’ does not include an

18 amount expended or disbursed by a State, dis19 trict, or local committee of a political party

20 for—

21 ‘‘(i) campaign activity conducted sole22 ly on behalf of a clearly identified can23 didate for State or local office, provided

24 the campaign activity is not a Federal elec-
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1 tion activity described in subparagraph

2 (A);

3 ‘‘(ii) a contribution to a candidate for

4 State or local office, provided the contribu5 tion is not designated or used to pay for a

6 Federal election activity described in sub7 paragraph (A);

8 ‘‘(iii) the costs of a State, district, or

9 local political convention;

10 ‘‘(iv) the costs of grassroots campaign

11 materials, including buttons, bumper stick12 ers, and yard signs, that name or depict

13 only a candidate for State or local office;

14 ‘‘(v) the non-Federal share of a State,

15 district, or local party committee’s admin16 istrative and overhead expenses (but not

17 including the compensation in any month

18 of an individual who spends more than 20

19 percent of the individual’s time on Federal

20 election activity) as determined by a regu21 lation promulgated by the Commission to

22 determine the non-Federal share of a

23 State, district, or local party committee’s

24 administrative and overhead expenses; and
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1 ‘‘(vi) the cost of constructing or pur2 chasing an office facility or equipment for

3 a State, district or local committee.

4 ‘‘(c) FUNDRAISING COSTS.—An amount spent by a

5 national, State, district, or local committee of a political

6 party, by an entity that is established, financed, main7 tained, or controlled by a national, State, district, or local

8 committee of a political party, or by an agent or officer

9 of any such committee or entity, to raise funds that are

10 used, in whole or in part, to pay the costs of a Federal

11 election activity shall be made from funds subject to the

12 limitations, prohibitions, and reporting requirements of

13 this Act.

14 ‘‘(d) TAX-EXEMPT ORGANIZATIONS.—A national,

15 State, district, or local committee of a political party (in16 cluding a national congressional campaign committee of

17 a political party), an entity that is directly or indirectly

18 established, financed, maintained, or controlled by any

19 such national, State, district, or local committee or its

20 agent, and an officer or agent acting on behalf of any such

21 party committee or entity, shall not solicit any funds for,

22 or make or direct any donations to, an organization that

23 is described in section 501(c) of the Internal Revenue

24 Code of 1986 and exempt from taxation under section

25 501(a) of such Code (or has submitted an application to
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1 the Secretary of the Treasury for determination of tax2 exemption under such section).

3 ‘‘(e) CANDIDATES.—

4 ‘‘(1) IN GENERAL.—A candidate, individual

5 holding Federal office, agent of a candidate or indi6 vidual holding Federal office, or an entity directly or

7 indirectly established, financed, maintained or con8 trolled by or acting on behalf of one or more can9 didates or individuals holding Federal office, shall

10 not—

11 ‘‘(A) solicit, receive, direct, transfer, or

12 spend funds in connection with an election for

13 Federal office, including funds for any Federal

14 election activity, unless the funds are subject to

15 the limitations, prohibitions, and reporting re16 quirements of this Act; or

17 ‘‘(B) solicit, receive, direct, transfer, or

18 spend funds in connection with any election

19 other than an election for Federal office or dis20 burse funds in connection with such an election

21 unless the funds—

22 ‘‘(i) are not in excess of the amounts

23 permitted with respect to contributions to

24 candidates and political committees under
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1 paragraphs (1) and (2) of section 315(a);

2 and

3 ‘‘(ii) are not from sources prohibited

4 by this Act from making contributions with

5 respect to an election for Federal office.

6 ‘‘(2) STATE LAW.—Paragraph (1) does not

7 apply to the solicitation, receipt, or spending of

8 funds by an individual who is a candidate for a

9 State or local office in connection with such election

10 for State or local office if the solicitation, receipt,

11 or spending of funds is permitted under State law

12 for any activity other than a Federal election activ13 ity.

14 ‘‘(3) FUNDRAISING EVENTS.—Notwithstanding

15 paragraph (1), a candidate may attend, speak, or be

16 a featured guest at a fundraising event for a State,

17 district, or local committee of a political party.’’.

18 SEC. 402. STATE PARTY GRASSROOTS FUNDS.

19 (a) INDIVIDUAL CONTRIBUTIONS.—Section

20 315(a)(1) of the Federal Election Campaign Act of 1971

21 (2 U.S.C. 441a(a)(1)) is amended—

22 (1) in subparagraph (B) by striking ‘‘or’’ at the

23 end;

24 (2) by redesignating subparagraph (C) as sub25 paragraph (D); and
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1 (3) by inserting after subparagraph (B) the fol2 lowing:

3 ‘‘(C) to—

4 ‘‘(i) a State Party Grassroots Fund estab5 lished and maintained by a State committee of

6 a political party in any calendar year which, in

7 the aggregate, exceed $20,000;

8 ‘‘(ii) any other political committee estab9 lished and maintained by a State committee of

10 a political party in any calendar year which, in

11 the aggregate, exceed $5,000;

12 except that the aggregate contributions described in

13 this subparagraph that may be made by a person to

14 the State Party Grassroots Fund and all committees

15 of a State Committee of a political party in any

16 State in any calendar year shall not exceed $20,000;

17 or’’.

18 (b) LIMITS.—

19 (1) IN GENERAL.—Section 315(a) of the Fed20 eral Election Campaign Act of 1971 (2 U.S.C.

21 441a(a)) is amended by striking paragraph (3) and

22 inserting the following:

23 ‘‘(3) OVERALL LIMITS.—
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1 ‘‘(A) INDIVIDUAL LIMIT.—No individual

2 shall make contributions during any calendar

3 year that, in the aggregate, exceed $25,000.

4 ‘‘(B) CALENDAR YEAR.—No individual

5 shall make contributions during any calendar

6 year—

7 ‘‘(i) to all candidates and their au8 thorized political committees that, in the

9 aggregate, exceed $25,000; or

10 ‘‘(ii) to all political committees estab11 lished and maintained by State committees

12 of a political party that, in the aggregate,

13 exceed $20,000.

14 ‘‘(C) NONELECTION YEARS.—For purposes

15 of subparagraph (B)(i), any contribution made

16 to a candidate or the candidate’s authorized po17 litical committees in a year other than the cal18 endar year in which the election is held with re19 spect to which the contribution is made shall be

20 treated as being made during the calendar year

21 in which the election is held.’’.

22 (c) DEFINITIONS.—Section 301 of the Federal Elec23 tion Campaign Act of 1970 (2 U.S.C. 431) is amended

24 by adding at the end the following:
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1 ‘‘(20) GENERIC CAMPAIGN ACTIVITY.—The

2 term ‘generic campaign activity’ means an activity

3 that promotes a political party and does not promote

4 a candidate or non-Federal candidate.

5 ‘‘(21) STATE PARTY GRASSROOTS FUND.—The

6 term ‘State Party Grassroots Fund’ means a sepa7 rate segregated fund established and maintained by

8 a State committee of a political party solely for pur9 poses of making expenditures and other disburse10 ments described in section 324(d).’’.

11 (d) STATE PARTY GRASSROOTS FUNDS.—Title III of

12 the Federal Election Campaign Act of 1971 (2 U.S.C. 431

13 et seq.) (as amended by section 401) is amended by adding

14 at the end the following:

15 ‘‘SEC. 324. STATE PARTY GRASSROOTS FUNDS.

16 ‘‘(a) IN GENERAL.—A State committee of a political

17 party shall only make disbursements and expenditures

18 from the committee’s State Party Grassroots Fund that

19 are described in subsection (d).

20 ‘‘(b) TRANSFERS.—

21 ‘‘(1) IN GENERAL.—Notwithstanding section

22 315(a)(4), a State committee of a political party

23 shall not transfer any funds from the committee’s

24 State Party Grassroots Fund to any other State
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1 Party Grassroots Fund or to any other political com2 mittee, except as provided in paragraph (2).

3 ‘‘(2) EXCEPTION.—A committee of a political

4 party may transfer funds from the committee’s

5 State Party Grassroots Fund to a district or local

6 committee of the same political party in the same

7 State if the district or local committee—

8 ‘‘(A) has established a separate segregated

9 fund for the purposes described in subsection

10 (d); and

11 ‘‘(B) uses the transferred funds solely for

12 those purposes.

13 ‘‘(c) AMOUNTS RECEIVED BY GRASSROOTS FUNDS

14 FROM STATE AND LOCAL CANDIDATE COMMITTEES.—

15 ‘‘(1) IN GENERAL.—Any amount received by a

16 State Party Grassroots Fund from a State or local

17 candidate committee for expenditures described in

18 subsection (d) that are for the benefit of that can19 didate shall be treated as meeting the requirements

20 of 323(b)(1) and section 304(d) if—

21 ‘‘(A) the amount is derived from funds

22 which meet the requirements of this Act with

23 respect to any limitation or prohibition as to

24 source or dollar amount specified in paragraphs

25 (1)(A) and (2)(A) of section 315(a); and
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1 ‘‘(B) the State or local candidate

2 committee—

3 ‘‘(i) maintains, in the account from

4 which payment is made, records of the

5 sources and amounts of funds for purposes

6 of determining whether those requirements

7 are met; and

8 ‘‘(ii) certifies that the requirements

9 were met.

10 ‘‘(2) DETERMINATION OF COMPLIANCE.—For

11 purposes of paragraph (1)(A), in determining wheth12 er the funds transferred meet the requirements of

13 this Act described in paragraph (1)(A)—

14 ‘‘(A) a State or local candidate commit15 tee’s cash on hand shall be treated as consisting

16 of the funds most recently received by the com17 mittee; and

18 ‘‘(B) the committee must be able to dem19 onstrate that its cash on hand contains funds

20 meeting those requirements sufficient to cover

21 the transferred funds.

22 ‘‘(3) REPORTING.—Notwithstanding paragraph

23 (1), any State Party Grassroots Fund that receives

24 a transfer described in paragraph (1) from a State

25 or local candidate committee shall be required to
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1 meet the reporting requirements of this Act, and

2 shall submit to the Commission all certifications re3 ceived, with respect to receipt of the transfer from

4 the candidate committee.

5 ‘‘(d) DISBURSEMENTS AND EXPENDITURES.—A

6 State committee of a political party may make disburse7 ments and expenditures from its State Party Grassroots

8 Fund only for—

9 ‘‘(1) any generic campaign activity;

10 ‘‘(2) payments described in clauses (v), (ix),

11 and (xi) of paragraph (8)(B) and clauses (iv), (viii),

12 and (ix) of paragraph (9)(B) of section 301;

13 ‘‘(3) subject to the limitations of section

14 315(d), payments described in clause (xii) of para15 graph (8)(B), and clause (ix) of paragraph (9)(B),

16 of section 301 on behalf of candidates other than for

17 President and Vice President;

18 ‘‘(4) voter registration; and

19 ‘‘(5) development and maintenance of voter files

20 during an even-numbered calendar year.

21 ‘‘(e) DEFINITION.—In this section, the term ‘State

22 or local candidate committee’ means a committee estab23 lished, financed, maintained, or controlled by a candidate

24 for other than Federal office.’’.
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1 SEC. 403. REPORTING REQUIREMENTS.

2 (a) REPORTING REQUIREMENTS.—Section 304 of the

3 Federal Election Campaign Act of 1971 (2 U.S.C. 434)

4 (as amended by section 303(b)) is amended by adding at

5 the end the following:

6 ‘‘(f) POLITICAL COMMITTEES.—

7 ‘‘(1) NATIONAL AND CONGRESSIONAL POLIT8 ICAL COMMITTEES.—The national committee of a

9 political party, any congressional campaign com10 mittee of a political party, and any subordinate com11 mittee of either, shall report all receipts and dis12 bursements during the reporting period, whether or

13 not in connection with an election for Federal office.

14 ‘‘(2) OTHER POLITICAL COMMITTEES TO WHICH

15 SECTION 323 APPLIES.—A political committee to

16 which section 323(b)(1) applies shall report all re17 ceipts and disbursements made for activities de18 scribed in paragraphs (1) and (2)(A)(iii) of section

19 323(b).

20 ‘‘(3) OTHER POLITICAL COMMITTEES.—Any po21 litical committee to which paragraph (1) or (2) does

22 not apply shall report any receipts or disbursements

23 that are used in connection with a Federal election.

24 ‘‘(4) ITEMIZATION.—If a political committee

25 has receipts or disbursements to which this sub26 section applies from any person aggregating in ex-
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1 cess of $200 for any calendar year, the political

2 committee shall separately itemize its reporting for

3 the person in the same manner as required in para4 graphs (3)(A), (5), and (6) of subsection (b).

5 ‘‘(5) REPORTING PERIODS.—Reports required

6 to be filed under this subsection shall be filed for the

7 same time periods as reports are required for polit8 ical committees under subsection (a).’’.

9 (b) BUILDING FUND EXCEPTION TO THE DEFINI10 TION OF CONTRIBUTION.—Section 301(8)(A) of the Fed11 eral Election Campaign Act of 1971 (2 U.S.C. 431(8)(A))

12 is amended—

13 (1) by striking clause (viii); and

14 (2) by redesignating clauses (ix) through (xiv)

15 as clauses (viii) through (xiii), respectively.

16 (c) REPORTS BY STATE COMMITTEES.—Section 304

17 of the Federal Election Campaign Act of 1971 (2 U.S.C.

18 434) (as amended by subsection (a)) is amended by adding

19 at the end the following:

20 ‘‘(g) FILING OF STATE REPORTS.—In lieu of any re21 port required to be filed by this Act, the Commission may

22 allow a State committee of a political party to file with

23 the Commission a report required to be filed under State

24 law if the Commission determines that such reports con25 tain substantially the same information.’’.
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1 (d) OTHER REPORTING REQUIREMENTS.—

2 (1) AUTHORIZED COMMITTEES.—Section

3 304(b)(4) of the Federal Election Campaign Act of

4 1971 (2 U.S.C. 434(b)(4)) is amended—

5 (A) by striking ‘‘and’’ at the end of sub6 paragraph (H);

7 (B) by inserting ‘‘and’’ at the end of sub8 paragraph (I); and

9 (C) by adding at the end the following:

10 ‘‘(J) in the case of an authorized com11 mittee, disbursements for the primary election,

12 the general election, and any other election in

13 which the candidate participates;’’.

14 (2) NAMES AND ADDRESSES.—Section

15 304(b)(5)(A) of the Federal Election Campaign Act

16 of 1971 (2 U.S.C. 434(b)(5)(A)) is amended by

17 striking ‘‘operating expense’’ and inserting ‘‘oper18 ating expenditure, and the election to which the op19 erating expenditure relates’’.

20 SEC. 404. SOFT MONEY OF PERSONS OTHER THAN POLIT21 ICAL PARTIES.

22 Section 304 of the Federal Election Campaign Act

23 of 1971 (2 U.S.C. 434) (as amended by section 403(c))

24 is amended by adding at the end the following:
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1 ‘‘(h) DISBURSEMENTS OF PERSONS OTHER THAN

2 POLITICAL PARTIES.—

3 ‘‘(1) IN GENERAL.—A person, other than a po4 litical committee of a political party or a person de5 scribed in section 501(d) of the Internal Revenue

6 Code of 1986, that makes an aggregate amount of

7 disbursements in excess of $50,000 during a cal8 endar year for activities described in paragraph (2)

9 shall file a statement with the Commission—

10 ‘‘(A) on a monthly basis as described in

11 subsection (a)(4)(B); or

12 ‘‘(B) in the case of disbursements that are

13 made within 20 days of an election, within 24

14 hours after the disbursements are made.

15 ‘‘(2) ACTIVITY.—The activity described in this

16 paragraph is—

17 ‘‘(A) Federal election activity (as defined

18 in section 323(b)(2));

19 ‘‘(B) an activity described in section

20 316(b)(2)(A) that expresses support for or op21 position to a candidate for Federal office or a

22 political party; and

23 ‘‘(C) an activity described in subparagraph

24 (B) or (C) of section 316(b)(2).
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1 ‘‘(3) APPLICABILITY.—This subsection does not

2 apply to—

3 ‘‘(A) a candidate or a candidate’s author4 ized committees; or

5 ‘‘(B) an independent expenditure.

6 ‘‘(4) CONTENTS.—A statement under this sec7 tion shall contain such information about the dis8 bursements made during the reporting period as the

9 Commission shall prescribe, including—

10 ‘‘(A) the aggregate amount of disburse11 ments made;

12 ‘‘(B) the name and address of the person

13 or entity to whom a disbursement is made in an

14 aggregate amount in excess of $200;

15 ‘‘(C) the date made, amount, and purpose

16 of the disbursement; and

17 ‘‘(D) if applicable, whether the disburse18 ment was in support of, or in opposition to, a

19 candidate or a political party, and the name of

20 the candidate or the political party.’’.
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1 TITLE V—RESTRUCTURING AND

2 STRENGTHENING OF THE

3 FEDERAL ELECTION COMMIS4 SION

5 SEC. 501. APPOINTMENT AND TERMS OF COMMISSIONERS.

6 (a) IN GENERAL.—Section 306(a) of the Federal

7 Election Campaign Act of 1971 (2 U.S.C. 437c(a)) is

8 amended—

9 (1) in paragraph (1)—

10 (A) by striking ‘‘(1) There is established’’

11 and inserting ‘‘(1)(A) There is established’’;

12 (B) by striking the second sentence and in13 serting the following:

14 ‘‘(B) COMPOSITION OF COMMISSION.—The Commis15 sion is composed of 6 members appointed by the Presi16 dent, by and with the advice and consent of the Senate,

17 and 1 member appointed by the President from among

18 persons recommended by the Commission as provided in

19 subparagraph (D).’’;

20 (C) by striking ‘‘No more than’’ and in21 serting the following:

22 ‘‘(C) PARTY AFFILIATION.—Not more than’’; and

23 (D) by adding at the end the following:

24 ‘‘(D) NOMINATION BY COMMISSION OF ADDITIONAL

25 MEMBER.—
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1 ‘‘(i) IN GENERAL.—The members of the Com2 mission shall recommend to the President, by a vote

3 of 4 members, 3 persons for the appointment to the

4 Commission.

5 ‘‘(ii) VACANCY.—On vacancy of the position of

6 the member appointed under this subparagraph, a

7 member shall be appointed to fill the vacancy in the

8 same manner as provided in clause (i).’’; and

9 (2) in paragraphs (3) and (4), by striking

10 ‘‘(other than the Secretary of the Senate and the

11 Clerk of the House of Representatives)’’.

12 (b) TRANSITION RULE.—Not later than 90 days after

13 the date of enactment of this Act, the Commission shall

14 recommend persons for appointment under section

15 306(a)(1)(D) of the Federal Election Campaign Act of

16 1971, as added by subsection (a)(1)(D).

17 SEC. 502. AUDITS.

18 (a) RANDOM AUDIT.—Section 311(b) of the Federal

19 Election Campaign Act of 1971 (2 U.S.C. 438(b)) is

20 amended—

21 (1) by inserting ‘‘(1)’’ before ‘‘The Commis22 sion’’; and

23 (2) by adding at the end the following:

24 ‘‘(2) RANDOM AUDITS.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding para2 graph (1), after every primary, general, and

3 runoff election, the Commission may conduct

4 random audits and investigations to ensure vol5 untary compliance with this Act.

6 ‘‘(B) SELECTION OF SUBJECTS.—The sub7 jects of audits and investigations under this

8 paragraph shall be selected on the basis of im9 partial criteria established by a vote of at least

10 4 members of the Commission.

11 ‘‘(C) EXCLUSION.—This paragraph does

12 not apply to an authorized committee of a can13 didate for President or Vice President subject

14 to audit under chapter 95 or 96 of the Internal

15 Revenue Code of 1986.’’.

16 SEC. 503. AUTHORITY TO SEEK INJUNCTION.

17 Section 309(a) of the Federal Election Campaign Act

18 of 1971 (2 U.S.C. 437g(a)) is amended—

19 (1) by adding at the end the following:

20 ‘‘(13) AUTHORITY TO SEEK INJUNCTION.—

21 ‘‘(A) IN GENERAL.—If, at any time in a pro22 ceeding described in paragraph (1), (2), (3), or (4),

23 the Commission believes that—
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1 ‘‘(i) there is a substantial likelihood that a

2 violation of this Act is occurring or is about to

3 occur;

4 ‘‘(ii) the failure to act expeditiously will re5 sult in irreparable harm to a party affected by

6 the potential violation;

7 ‘‘(iii) expeditious action will not cause

8 undue harm or prejudice to the interests of oth9 ers; and

10 ‘‘(iv) the public interest would be best

11 served by the issuance of an injunction;

12 the Commission may initiate a civil action for a tem13 porary restraining order or preliminary injunction

14 pending the outcome of proceedings under para15 graphs (1), (2), (3), and (4).

16 ‘‘(B) VENUE.—An action under subparagraph

17 (A) shall be brought in the United States district

18 court for the district in which the defendant resides,

19 transacts business, or may be found, or in which the

20 violation is occurring, has occurred, or is about to

21 occur.’’;

22 (2) in paragraph (7), by striking ‘‘(5) or (6)’’

23 and inserting ‘‘(5), (6), or (13)’’; and

24 (3) in paragraph (11), by striking ‘‘(6)’’ and in25 serting ‘‘(6) or (13)’’.
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1 SEC. 504. STANDARD FOR INVESTIGATION.

2 Section 309(a)(2) of the Federal Election Campaign

3 Act of 1971 (2 U.S.C. 437f(a)(2)) is amended by striking

4 ‘‘reason to believe that’’ and inserting ‘‘reason to open an

5 investigation on whether’’.

6 SEC. 505. PETITION FOR CERTIORARI.

7 Section 307(a)(6) of the Federal Election Campaign

8 Act of 1971 (2 U.S.C. 437d(a)) is amended by inserting

9 ‘‘(including a proceeding before the Supreme Court on cer10 tiorari)’’ after ‘‘appeal’’.

11 SEC. 506. EXPEDITED PROCEDURES.

12 Section 309(a) of the Federal Election Campaign Act

13 of 1971 (2 U.S.C. 437g(a)) (as amended by section 503)

14 is amended by adding at the end the following:

15 ‘‘(14) EXPEDITED PROCEDURE.—

16 ‘‘(A) 60 DAYS BEFORE A GENERAL ELEC17 TION.—If the complaint in a proceeding was

18 filed within 60 days before the date of a general

19 election, the Commission may take action de20 scribed in this subparagraph.

21 ‘‘(B) RESOLUTION BEFORE AN ELEC22 TION.—If the Commission determines, on the

23 basis of facts alleged in the complaint and other

24 facts available to the Commission, that there is

25 clear and convincing evidence that a violation of

26 this Act has occurred, is occurring, or is about
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1 to occur and it appears that the requirements

2 for relief stated in clauses (ii), (iii), and (iv) of

3 paragraph (13)(A) are met, the Commission

4 may—

5 ‘‘(i) order expedited proceedings,

6 shortening the time periods for proceedings

7 under paragraphs (1), (2), (3), and (4) as

8 necessary to allow the matter to be re9 solved in sufficient time before the election

10 to avoid harm or prejudice to the interests

11 of the parties; or

12 ‘‘(ii) if the Commission determines

13 that there is insufficient time to conduct

14 proceedings before the election, imme15 diately seek relief under paragraph

16 (13)(A).

17 ‘‘(C) MERITLESS COMPLAINTS.—If the

18 Commission determines, on the basis of facts

19 alleged in the complaint and other facts avail20 able to the Commission, that the complaint is

21 clearly without merit, the Commission may—

22 ‘‘(i) order expedited proceedings,

23 shortening the time periods for proceedings

24 under paragraphs (1), (2), (3), and (4) as

25 necessary to allow the matter to be re-
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1 solved in sufficient time before the election

2 to avoid harm or prejudice to the interests

3 of the parties; or

4 ‘‘(ii) if the Commission determines

5 that there is insufficient time to conduct

6 proceedings before the election, summarily

7 dismiss the complaint.’’.

8 SEC. 507. FILING OF REPORTS USING COMPUTERS AND

9 FACSIMILE MACHINES; FILING BY SENATE

10 CANDIDATES WITH COMMISSION.

11 (a) USE OF COMPUTERS AND FACSIMILE MA12 CHINES.—Section 302(g) of the Federal Election Cam13 paign Act of 1971 (2 U.S.C. 432(g)) is amended by add14 ing at the end the following:

15 ‘‘(5) FILING OF REPORTS USING COMPUTERS

16 AND FACSIMILE MACHINES.—

17 ‘‘(A) COMPUTERS.—The Commission, in

18 consultation with the Secretary of the Senate

19 and the Clerk of the House of Representatives,

20 shall issue a regulation under which a person

21 required to file a designation, statement, or re22 port under this Act—

23 ‘‘(i) is required to maintain and file

24 the designation, statement, or report for

25 any calendar year in electronic form acces-
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1 sible by computers if the person has, or

2 has reason to expect to have, aggregate

3 contributions or expenditures in excess of a

4 threshold amount determined by the Com5 mission; and

6 ‘‘(ii) may maintain and file the des7 ignation, statement, or report in that man8 ner if not required to do so under a regula9 tion under clause (i).

10 ‘‘(B) FACSIMILE MACHINES.—The Com11 mission, in consultation with the Secretary of

12 the Senate and the Clerk of the House of Rep13 resentatives, shall prescribe a regulation that

14 allows a person to file a designation, statement,

15 or report required by this Act through the use

16 of a facsimile machine.

17 ‘‘(C) VERIFICATION.—In a regulation

18 under this paragraph, the Commission shall

19 provide methods (other than requiring a signa20 ture on the document being filed) for verifying

21 a designation, statement, or report. Any docu22 ment verified under any of the methods shall be

23 treated for all purposes (including penalties for

24 perjury) in the same manner as a document

25 verified by signature.
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1 ‘‘(D) COMPATIBILITY OF SYSTEMS.—The

2 Secretary of the Senate and the Clerk of the

3 House of Representatives shall ensure that any

4 computer or other system that the Secretary or

5 the Clerk may develop and maintain to receive

6 designations, statements, and reports in the

7 forms required or permitted under this para8 graph is compatible with any system that the

9 Commission may develop and maintain.

10 ‘‘(E) INTERNET ACCESS.—The Commis11 sion shall make a designation, statement, re12 port, or notification that is filed electronically

13 with the Commission accessible to the public on

14 the Internet not later than 24 hours after the

15 designation, statement, report, or notification is

16 received by the Commission.’’.

17 (b) SENATE CANDIDATES FILE WITH COMMIS18 SION.—Title III of the Federal Election Campaign Act of

19 1971 (2 U.S.C. 431 et seq.) is amended—

20 (1) in section 302, by striking subsection (g)

21 and inserting the following:

22 ‘‘(g) FILING WITH THE COMMISSION.—All designa23 tions, statements, and reports required to be filed under

24 this Act shall be filed with the Commission.’’; and

25 (2) in section 304—
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1 (A) in subsection (a)(6)(A), by striking

2 ‘‘the Secretary or’’; and

3 (B) in the matter following subsection

4 (c)(2), by striking ‘‘the Secretary or’’.

5 SEC. 508. POWER TO ISSUE SUBPOENA WITHOUT SIGNA6 TURE OF CHAIRPERSON.

7 Section 307(a)(3) of the Federal Election Campaign

8 Act of 1971 (2 U.S.C. 437d(a)(3)) is amended by striking

9 ‘‘, signed by the chairman or the vice chairman,’’.

10 SEC. 509. PROHIBITION OF CONTRIBUTIONS BY INDIVID11 UALS NOT QUALIFIED TO VOTE.

12 (a) PROHIBITION.—Section 319 of the Federal Elec13 tion Campaign Act of 1971 (2 U.S.C. 441e) is amended—

14 (1) in the heading by adding ‘‘AND INDIVID15 UALS NOT QUALIFIED TO REGISTER TO VOTE’’ at the

16 end; and

17 (2) in subsection (a)—

18 (A) by striking ‘‘(a) It shall’’ and inserting

19 the following:

20 ‘‘(a) PROHIBITIONS.—

21 ‘‘(1) FOREIGN NATIONALS.—It shall’’; and

22 (B) by adding at the end the following:

23 ‘‘(2) INDIVIDUALS NOT QUALIFIED TO VOTE.—

24 It shall be unlawful for an individual who is not

25 qualified to register to vote in a Federal election to
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1 make a contribution, or to promise expressly or

2 impliedly to make a contribution, in connection with

3 a Federal election; or for any person to solicit, ac4 cept, or receive a contribution in connection with a

5 Federal election from an individual who is not quali6 fied to register to vote in a Federal election.’’.

7 (b) INCLUSION IN DEFINITION OF IDENTIFICA8 TION.—Section 301(13) of the Federal Election Campaign

9 Act of 1971 (2 U.S.C. 431(13)) is amended—

10 (1) in subparagraph (A)—

11 (A) by striking ‘‘and’’ the first place it ap12 pears; and

13 (B) by inserting ‘‘, and an affirmation that

14 the individual is an individual who is not pro15 hibited by section 319 from making a contribu16 tion’’ after ‘‘employer’’; and

17 (2) in subparagraph (B), by inserting ‘‘and an

18 affirmation that the person is a person that is not

19 prohibited by section 319 from making a contribu20 tion’’ after ‘‘such person’’.

21 SEC. 510. PENALTIES FOR VIOLATIONS.

22 (a) INCREASED PENALTIES.—Section 309(a) of the

23 Federal Election Campaign Act of 1971 (2 U.S.C.

24 437g(a)) is amended—
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1 (1) in paragraphs (5)(A), (6)(A), and (6)(B),

2 by striking ‘‘$5,000’’ and inserting ‘‘$10,000’’; and

3 (2) in paragraphs (5)(B) and (6)(C), by strik4 ing ‘‘$10,000 or an amount equal to 200 percent’’

5 and inserting ‘‘$20,000 or an amount equal to 300

6 percent’’.

7 (b) EQUITABLE REMEDIES.—Section 309(a)(5)(A) of

8 the Federal Election Campaign Act of 1971 (2 U.S.C.

9 437g(a)(5)) is amended by striking the period at the end

10 and inserting ‘‘, and may include equitable remedies or

11 penalties, including disgorgement of funds to the Treasury

12 or community service requirements (including require13 ments to participate in public education programs).’’.

14 (c) AUTOMATIC PENALTY FOR LATE FILING.—Sec15 tion 309(a) of the Federal Election Campaign Act of 1971

16 (2 U.S.C. 437g(a)), as amended by section 506, is

17 amended—

18 (1) by adding at the end the following:

19 ‘‘(15) PENALTY FOR LATE FILING.—

20 ‘‘(A) IN GENERAL.—

21 ‘‘(i) MONETARY PENALTIES.—The Com22 mission shall establish a schedule of mandatory

23 monetary penalties that shall be imposed by the

24 Commission for failure to meet a time require25 ment for filing under section 304.
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1 ‘‘(ii) REQUIRED FILING.—In addition to

2 imposing a penalty, the Commission may re3 quire a report that has not been filed within the

4 time requirements of section 304 to be filed by

5 a specific date.

6 ‘‘(iii) PROCEDURE.—A penalty or filing re7 quirement imposed under this paragraph shall

8 not be subject to paragraph (1), (2), (3), (4),

9 (5), or (12).

10 ‘‘(B) FILING AN EXCEPTION.—

11 ‘‘(i) TIME TO FILE.—A political committee

12 shall have 30 days after the imposition of a

13 penalty or filing requirement by the Commis14 sion under this paragraph in which to file an

15 exception with the Commission.

16 ‘‘(ii) TIME FOR COMMISSION TO RULE.—

17 Within 30 days after receiving an exception, the

18 Commission shall make a determination that is

19 a final agency action subject to exclusive review

20 by the United States Court of Appeals for the

21 District of Columbia Circuit under section 706

22 of title 5, United States Code, upon petition

23 filed in that court by the political committee or

24 treasurer that is the subject of the agency ac25 tion, if the petition is filed within 30 days after
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1 the date of the Commission action for which re2 view is sought.’’;

3 (2) in paragraph (5)(D)—

4 (A) by inserting after the first sentence the

5 following: ‘‘In any case in which a penalty or

6 filing requirement imposed on a political com7 mittee or treasurer under paragraph (15) has

8 not been satisfied, the Commission may insti9 tute a civil action for enforcement under para10 graph (6)(A).’’; and

11 (B) by inserting before the period at the

12 end of the last sentence the following: ‘‘or has

13 failed to pay a penalty or meet a filing require14 ment imposed under paragraph (15)’’; and

15 (3) in paragraph (6)(A), by striking ‘‘paragraph

16 (4)(A)’’ and inserting ‘‘paragraph (4)(A) or (15)’’.

17 TITLE VI—EFFECTIVE DATE

18 SEC. 601. EFFECTIVE DATE.

19 This Act and the amendments made by this Act take

20 effect on January 1, 2000.

Æ