II

104TH CONGRESS

2D SESSION S. 1953

To reform the financing of Federal elections, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 16, 1996

Mrs. HUTCHISON introduced the following bill; which was read twice and

referred to the Committee on Rules and Administration

A BILL

To reform the financing of Federal elections, and for other

purposes.

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.

4 This Act may be cited as the ‘‘Campaign Finance Re5 form and Disclosure Act of 1996’’.

6 SEC. 2. DEFINITIONS.

7 Section 301 of the Federal Election Campaign Act

8 of 1971 (2 U.S.C. 431) is amended by adding at the end

9 the following:

10 ‘‘(20) ELECTION CYCLE.—The term ‘election

11 cycle’ means—
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1 ‘‘(A) in the case of a candidate or the au2 thorized committees of a candidate, the period

3 beginning on the day after the date of the most

4 recent general election for the specific office or

5 seat that the candidate seeks and ending on the

6 date of the next general election for that office

7 or seat; and

8 ‘‘(B) in the case of all other persons, the

9 period beginning on the first day following the

10 date of the last general election and ending on

11 the date of the next general election.

12 ‘‘(21) SENATE CANDIDATE.—The term ‘Senate

13 candidate’ means a candidate who seeks nomination

14 for election, or election, to the Senate.

15 ‘‘(22) CAMPAIGN EXPENSE.—The term ‘cam16 paign expense’ means an expense that is attributable

17 solely to a bona fide campaign purpose.

18 ‘‘(23) INHERENTLY PERSONAL PURPOSE.—The

19 term ‘inherently personal purpose’ means a purpose

20 that, by its nature, confers a personal benefit on a

21 candidate, including a home mortgage rent or utility

22 payment, clothing purchase, noncampaign auto23 mobile expense, country club membership, vacation,

24 or trip of a noncampaign nature, household food

25 item, tuition payment, admission to a sporting event,
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1 concert, theater, or other form of entertainment not

2 associated with a campaign, dues, fees, or contribu3 tion to a health club or recreational facility, and any

4 other inherently personal living expense as deter5 mined under a regulation issued under section

6 326.’’.

7 SEC. 3. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE

8 CONTRIBUTIONS BY SENATE CANDIDATES.

9 Title III of the Federal Election Campaign Act of

10 1971 (2 U.S.C. 431 et seq.) is amended by adding at the

11 end the following:

12 ‘‘SEC. 324. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE

13 CONTRIBUTIONS BY SENATE CANDIDATES.

14 ‘‘A Senate candidate and the candidate’s authorized

15 committees shall not accept, during an election cycle, con16 tributions from persons other than individuals residing in

17 the candidate’s State in an amount exceeding 40 percent

18 of the total amount of contributions accepted during the

19 election cycle.’’.
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1 SEC. 4. LIMITATION ON REIMBURSEMENT FROM CAM2 PAIGNS FOR CONTRIBUTIONS BY SENATE

3 CANDIDATES AND IMMEDIATE FAMILIES OF

4 SENATE CANDIDATES.

5 Title III of the Federal Election Campaign Act of

6 1971 (2 U.S.C. 431 et seq.) (as amended by section 3)

7 is amended by adding at the end the following:

8 ‘‘SEC. 325. LIMITATION ON REIMBURSEMENT FROM CAM9 PAIGNS FOR CONTRIBUTIONS BY SENATE

10 CANDIDATES AND IMMEDIATE FAMILIES OF

11 SENATE CANDIDATES.

12 ‘‘(a) IN GENERAL.—The aggregate amount of con13 tributions to an eligible Senate candidate or the can14 didate’s authorized committees from the sources described

15 in subsection (b) that may be reimbursed during an elec16 tion cycle to the candidate or the candidate’s immediate

17 family shall not exceed $250,000.

18 ‘‘(b) SOURCES.—A source is described in this sub19 section if the source is—

20 ‘‘(1) personal funds of the candidate and mem21 bers of the candidate’s immediate family; or

22 ‘‘(2) personal loans incurred by the candidate

23 and members of the candidate’s immediate family.

24 ‘‘(c) INDEXING.—The $250,000 amount under sub25 section (a) shall be increased as of the beginning of each

26 calendar year based on the increase in the price index de-
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1 termined under section 315(c), except that the base period

2 shall be calendar year 1996.’’.

3 SEC. 5. RESTRICTION ON USE OF CAMPAIGN FUNDS BY

4 SENATE CANDIDATES FOR PERSONAL PUR5 POSES.

6 (a) RESTRICTION.—Title III of the Federal Election

7 Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as amended

8 by section 4) is amended by adding at the end the follow9 ing:

10 ‘‘SEC. 326. RESTRICTION ON USE OF CAMPAIGN FUNDS BY

11 SENATE CANDIDATES FOR PERSONAL PUR12 POSES.

13 ‘‘(a) RESTRICTION.—A Senate candidate who accepts

14 a contribution—

15 ‘‘(1) shall use the contribution only to pay a le16 gitimate and verifiable campaign expense; and

17 ‘‘(2) shall not use the contributions to pay any

18 inherently personal purpose.

19 ‘‘(b) REGULATION.—Not later than 90 days after the

20 date of enactment of this section, the Commission shall

21 issue a regulation implementing subsection (a).’’.

22 (b) APPLICATION OF AMENDMENT.—The amendment

23 made by subsection (a) shall apply to all contributions pos24 sessed by a candidate on the date of enactment of this

25 Act and thereafter.
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1 SEC. 6. LIMIT ON CONGRESSIONAL USE OF THE FRANKING

2 PRIVILEGE.

3 Section 3210(a)(6)(A) of title 39, United States

4 Code, is amended to read as follows:

5 ‘‘(A) A Member of Congress shall not mail

6 any mass mailing as franked mail during a year

7 in which there will be an election for the seat

8 held by the Member during the period between

9 January 1 of that year and the date of the gen10 eral election for that Office, unless the Member

11 has made a public announcement that the

12 Member will not be a candidate for election to

13 any Federal office in that year (including the

14 office held by the Member).’’.

15 SEC. 7. DECREASE IN PAC CONTRIBUTION LIMIT; INDEXING

16 OF LIMITS.

17 Section 315(a) of the Federal Election Campaign Act

18 of 1971 (2 U.S.C. 441a(a)) is amended—

19 (1) in paragraph (2)(A) by striking ‘‘$5,000’’

20 and inserting ‘‘$1,000’’; and

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

22 ‘‘(9) INDEXING.—The $1,000 amounts under

23 paragraphs (1)(A) and (2)(A) shall be increased as

24 of the beginning of each calendar year based on the

25 increase in the price index determined under sub-
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1 section (c), except that the base period shall be cal2 endar year 1996.’’.

3 SEC. 8. RESTRICTION ON ACCEPTANCE OF CONTRIBUTIONS

4 BY POLITICAL PARTY COMMITTEES.

5 Title III of the Federal Election Campaign Act of

6 1971 (2 U.S.C. 431 et seq.) (as amended by section 5)

7 is amended by adding at the end the following:

8 ‘‘SEC. 327. RESTRICTION ON ACCEPTANCE OF CONTRIBU9 TIONS BY POLITICAL PARTY COMMITTEES.

10 ‘‘It shall be unlawful for a committee of a political

11 party to accept a contribution on the condition that the

12 contribution be used to make a contribution to or an ex13 penditure on behalf of a particular candidate.’’.

14 SEC. 9. UNLIMITED COMMUNICATIONS BETWEEN A POLITI15 CAL PARTY AND MEMBERS OF THE POLITI16 CAL PARTY.

17 Section 315(d) of the Federal Election Campaign Act

18 of 1971 (2 U.S.C. 441a(d)) is amended by adding at the

19 end the following:

20 ‘‘(4)(A) For purposes of applying the limitations

21 under paragraphs (2) and (3), in determining the amount

22 of expenditures made by a national committee of a politi23 cal party or a State committee of a political party (includ24 ing any subordinate committee of a State committee),

25 there shall be excluded any amount spent by the commit-
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1 tee for communications to the extent the communications

2 are made to members of the political party.

3 ‘‘(B) For purposes of subparagraph (A), an individ4 ual shall be considered to be a ‘member’ of a political

5 party if—

6 ‘‘(i) the individual is registered to vote as a

7 member of the party;

8 ‘‘(ii) there is a public record that the individual

9 voted in the primary election of the political party in

10 the most recent primary election; or

11 ‘‘(iii) the individual has indicated in writing

12 that the individual is a member of the political

13 party.’’.

14 SEC. 10. PROMOTION OF STATE AND LOCAL PARTY ACTIV15 ITY.

16 (a) CONTRIBUTIONS.—Section 301(8)(B) of the Fed17 eral Election Campaign Act of 1971 (2 U.S.C. 431(8)(B))

18 is amended—

19 (1) in clause (xiii) by striking ‘‘and’’ at the end;

20 (2) in clause (xiv) by striking the period at the

21 end and inserting ‘‘; and’’; and

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

23 ‘‘(xv) the payment by a State or local commit24 tee of a political party for—
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1 ‘‘(I) the listing of the slate of the political

2 party’s candidates, including the communication

3 of the slate to the public;

4 ‘‘(II) the mailing of materials for or on be5 half of specific candidates by volunteers (includ6 ing labeling envelopes or affixing postage or

7 other indicia to particular pieces of mail), other

8 than the mailing of materials to a commercial

9 list;

10 ‘‘(III) conducting a telephone bank for or

11 on behalf of specific candidates staffed by vol12 unteers; or

13 ‘‘(IV) the distribution of collateral mate14 rials (such as pins, bumper stickers, handbills,

15 brochures, posters, party tabloids, and yard

16 signs) for or on behalf of specific candidates

17 (whether by volunteers or otherwise).’’.

18 (b) EXPENDITURES.—Section 301(9)(B) of the Fed19 eral Election Campaign Act of 1971 (2 U.S.C. 431(9)(B))

20 is amended—

21 (1) in clause (ix) by striking ‘‘and’’ at the end;

22 (2) in clause (x) by striking the period at the

23 end and inserting ‘‘; and’’; and

24 (3) by adding at the end the following:
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1 ‘‘(xi) the payment by a State or local committee

2 of a political party for—

3 ‘‘(I) the listing of the slate of the political

4 party’s candidates, including the communication

5 of the slate to the public;

6 ‘‘(II) the mailing of materials for or on be7 half of specific candidates by volunteers (includ8 ing labeling envelopes or affixing postage or

9 other indicia to particular pieces of mail), other

10 than the mailing of materials to a commercial

11 list;

12 ‘‘(III) conducting a telephone bank for or

13 on behalf of specific candidates staffed by vol14 unteers; or

15 ‘‘(IV) the distribution of collateral mate16 rials (such as pins, bumper stickers, handbills,

17 brochures, posters, party tabloids, and yard

18 signs) for or on behalf of specific candidates

19 (whether by volunteers or otherwise).’’.

20 (c) CONFORMING AMENDMENTS.—(1) Section

21 301(8)(B)(x) of the Federal Election Campaign Act of

22 1971 (2 U.S.C. 431(8)(B)(x)) is amended by striking ‘‘in

23 connection with volunteer activities on behalf of nominees

24 of such party’’ and inserting ‘‘in connection with State or
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1 local activities, other than any payment described in clause

2 (xv)’’.

3 (2) Section 301(9)(B)(viii) of the Federal Election

4 Campaign Act of 1971 (2 U.S.C. 431(9)(B)(viii)) is

5 amended by striking ‘‘in connection with volunteer activi6 ties on behalf of nominees of such party’’ and inserting

7 ‘‘in connection with State or local activities, other than

8 any payment described in clause (xi)’’.

9 SEC. 11. RELIEF OF SMALL PACS FROM REPORTING RE10 QUIREMENTS.

11 Section 304(a)(1) of the Federal Election Campaign

12 Act of 1971 (2 U.S.C. 434(a)(1)) is amended by inserting

13 after ‘‘political committee’’ the following: ‘‘(except a multi14 candidate political committee or separate segregated fund

15 that has not, during an election cycle, as of any date with16 in the election cycle, accepted contributions or made ex17 penditures in an aggregate amount exceeding $25,000)’’.

18 SEC. 12. RIGHTS OF EMPLOYEES RELATING TO THE PAY19 MENT AND USE OF LABOR ORGANIZATION

20 DUES.

21 (a) PAYMENT OF DUES.—

22 (1) RIGHTS OF EMPLOYEES.—Section 7 of the

23 National Labor Relations Act (29 U.S.C. 157) is

24 amended by striking ‘‘membership’’ and all that fol25 lows and inserting the following: ‘‘the payment to a
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1 labor organization of dues or fees related to collec2 tive bargaining, contract administration, or griev3 ance adjustment necessary to performing the duties

4 of exclusive representation as a condition of employ5 ment as authorized in section 8(a)(3).’’.

6 (2) UNFAIR LABOR PRACTICES.—Section

7 8(a)(3) of the National Labor Relations Act (29

8 U.S.C. 158(a)(3)) is amended by striking ‘‘member9 ship therein’’ and inserting ‘‘the payment to such

10 labor organization of dues or fees related to collec11 tive bargaining, contract administration, or griev12 ance adjustment necessary to performing the duties

13 of exclusive representation’’.

14 (b) REQUIREMENTS FOR USE OF DUES FOR CERTAIN

15 PURPOSES.—

16 (1) WRITTEN AGREEMENT.—Section 8 of the

17 National Labor Relations Act (29 U.S.C. 158) is

18 amended by adding at the end the following:

19 ‘‘(h)(1) An employee subject to an agreement between

20 an employer and a labor organization requiring the pay21 ment of dues or fees to such organization as authorized

22 in subsection (a)(3) may not be required to pay to such

23 organization, nor may such organization accept payment

24 of, any dues or fees not related to collective bargaining,

25 contract administration, or grievance adjustment nec-
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1 essary to performing the duties of exclusive representation

2 unless the employee has agreed to pay such dues or fees

3 in a signed written agreement that shall be renewed be4 tween the first day of September and the first day of Octo5 ber of each year.

6 ‘‘(2) Such signed written agreement shall include a

7 ratio, certified by an independent auditor, of the dues or

8 fees related to collective bargaining, contract administra9 tion, or grievance adjustment necessary to performing the

10 duties of exclusive representation and the dues or fees re11 lated to other purposes.’’.

12 (2) WRITTEN ASSIGNMENT.—Section 302(c)(4)

13 of the Labor Management Relations Act, 1947 (29

14 U.S.C. 186) is amended by inserting before the

15 semicolon the following: ‘‘: Provided further, That no

16 amount may be deducted for dues unrelated to col17 lective bargaining, contract administration, or griev18 ance adjustment necessary to performing the duties

19 of exclusive representation unless a written assign20 ment authorizes such a deduction’’.

21 (c) NOTICE TO EMPLOYEES RELATING TO THE PAY22 MENT AND USE OF DUES.—Section 8 of the National

23 Labor Relations Act (29 U.S.C. 158) (as amended by sub24 section (b)(1)) is amended by adding at the end the follow25 ing:
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1 ‘‘(i)(1) An employer shall post a notice that informs

2 the employees of their rights under section 7 of this Act

3 and clarifies to such employees that an agreement requir4 ing the payment of dues or fees to a labor organization

5 as a condition of employment as authorized in subsection

6 (a)(3) may only require that employees pay to such organi7 zation any dues or fees related to collective bargaining,

8 contract administration, or grievance adjustment nec9 essary to performing the duties of exclusive representa10 tion. A copy of such notice shall be provided to each em11 ployee not later than 10 days after the first day of employ12 ment.

13 ‘‘(2) The notice described in paragraph (1) shall be

14 of such size and in such form as the Board shall prescribe

15 and shall be posted in conspicuous places in and about

16 the plants and offices of such employer, including all

17 places where notices to employees are customarily post18 ed.’’.

19 (d) EMPLOYEE PARTICIPATION IN THE AFFAIRS OF

20 A LABOR ORGANIZATION.—Section 8(b)(1) of the Na21 tional Labor Relations Act (29 U.S.C. 158(b)(1)) is

22 amended by striking ‘‘therein;’’ and inserting the follow23 ing: ‘‘therein, except that, an employee who is subject to

24 an agreement between an employer and a labor organiza25 tion requiring as a condition of employment the payment
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1 of dues or fees to such organization as authorized in sub2 section (a)(3) and who pays such dues or fees shall have

3 the same right to participate in the affairs of the organiza4 tion related to collective bargaining, contract administra5 tion, or grievance adjustment as any member of the orga6 nization;’’.

7 (e) DISCLOSURE TO EMPLOYEES.—

8 (1) EXPENSES REPORTING.—Section 201(b) of

9 the Labor-Management Reporting and Disclosure

10 Act of 1959 (29 U.S.C. 431(b)) is amended by add11 ing at the end the following: ‘‘Every labor organiza12 tion shall be required to attribute and report ex13 penses by function classification in such detail as

14 necessary to allow the members of such organization

15 or the employees required to pay any dues or fees

16 to such organization to determine whether such ex17 penses were related to collective bargaining, contract

18 administration, or grievance adjustment necessary to

19 performing the duties of exclusive representation or

20 were related to other purposes.’’.

21 (2) REPORT INFORMATION.—Section 201(c) of

22 the Labor-Management Reporting and Disclosure

23 Act of 1959 (29 U.S.C. 431(c)) is amended—
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1 (A) by inserting ‘‘and employees required

2 to pay any dues or fees to such organization’’

3 after ‘‘members’’;

4 (B) by striking ‘‘suit of any member of

5 such organization’’ and inserting ‘‘suit of any

6 member of such organization or employee re7 quired to pay any dues or fees to such organiza8 tion’’; and

9 (C) by striking ‘‘such member’’ and insert10 ing ‘‘such member or employee’’.

11 (3) REGULATIONS.—The Secretary of Labor

12 shall prescribe such regulations as are necessary to

13 carry out the amendments made by this subsection

14 not later than 120 days after the date of enactment

15 of this Act.

16 (f) EFFECTIVE DATE.—This section shall take effect

17 on the date of enactment of this Act, except that the re18 quirements contained in the amendments made by sub19 sections (b) and (c) shall take effect 60 days after the

20 date of enactment of this Act.

21 SEC. 13. EXPEDITED JUDICIAL REVIEW.

22 (a) CIVIL ACTION.—The Federal Election Commis23 sion, a political committee under title III of the Federal

24 Election Campaign Act of 1971, or any individual eligible

25 to vote in any election for the office of President of the
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1 United States may bring a civil action in United States

2 district court to determine the constitutionality of any pro3 vision of this Act or any amendment made by this Act.

4 (b) HEARING BY 3-JUDGE COURT.—Immediately

5 upon commencement of a civil action under subsection (a),

6 a district court of 3 judges shall be convened to decide

7 the action pursuant to section 2284 of title 28, United

8 States Code.

9 (c) DIRECT APPEAL TO SUPREME COURT.—An ap10 peal of an interlocutory order or final judgment, decree,

11 or order in a civil action under subsection (a) may be

12 taken directly to the Supreme Court not later than 20

13 days after the entry of the judgment, decree, or order.

14 (d) EXPEDITED REVIEW BY SUPREME COURT.—The

15 Supreme Court shall accept jurisdiction over, advance on

16 the docket, and expedite to the greatest extent possible

17 an appeal under subsection (c).

Æ