IB 

Union Calendar No. 87 

109TH CONGRESS 

1ST SESSION H. R. 1316 

[Report No. 109–146] 

To amend the Federal Election Campaign Act of 1971 to repeal the limit 

on the aggregate amount of campaign contributions that may be made 

by individuals during an election cycle, to repeal the limit on the amount 

of expenditures political parties may make on behalf of their candidates 

in general elections for Federal office, to allow State and local parties 

to make certain expenditures using nonfederal funds, to restore certain 

rights to exempt organizations under the Internal Revenue Code of 

1986, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 15, 2005 

Mr. PENCE (for himself and Mr. WYNN) introduced the following bill; which 

was referred to the Committee on House Administration 

JUNE 22, 2005 

Additional sponsors: Mr. PAUL, Mr. DOOLITTLE, Mr. SESSIONS, Mr. COLE of 

Oklahoma, Mr. MILLER of Florida, Mr. FLAKE, Mr. TANCREDO, Mr. 

GARRETT of New Jersey, Mr. SAM JOHNSON of Texas, Mr. HERGER, Mr. 

MANZULLO, Mr. AKIN, Mr. MCHENRY, Mr. CANNON, Mr. KING of Iowa, 

Mrs. CUBIN, Mr. CULBERSON, Mr. RADANOVICH, Mr. FEENEY, Mr. 

HENSARLING, Mr. POMBO, Mr. RYUN of Kansas, Mr. PRICE of Georgia, 

Mr. WESTMORELAND, Mr. KLINE, Mr. DANIEL E. LUNGREN of California, Mr. LEWIS of Kentucky, Mr. WELDON of Florida, Ms. ROSLEHTINEN, Mr. POE, Mr. WICKER, Mr. FRANKS of Arizona, Mr. 

MARCHANT, Mr. GOHMERT, Mr. CARTER, Mr. BURTON of Indiana, and 

Mr. WILSON of South Carolina 

JUNE 22, 2005 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 
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[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 15, 2005] 

A BILL 

To amend the Federal Election Campaign Act of 1971 to 

repeal the limit on the aggregate amount of campaign 

contributions that may be made by individuals during 

an election cycle, to repeal the limit on the amount 

of expenditures political parties may make on behalf 

of their candidates in general elections for Federal office, 

to allow State and local parties to make certain expenditures using nonfederal funds, to restore certain rights 

to exempt organizations under the Internal Revenue 

Code of 1986, 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 ‘‘527 Fairness Act of 

5 2005’’. 

6 SEC. 2. REPEAL OF AGGREGATE LIMIT ON CONTRIBUTIONS 

7 BY INDIVIDUALS. 

8 (a) REPEAL OF LIMIT.—Section 315(a) of the Federal 

9 Election Campaign Act of 1971 (2 U.S.C. 441a(a)) is 

10 amended by striking paragraph (3). 

11 (b) CONFORMING AMENDMENTS.— 

12 (1) INDEXING.—Section 315(c) of such Act (2 

13 U.S.C. 441a(c)) is amended by striking ‘‘(a)(3),’’ each 
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1 place it appears in paragraphs (1)(B)(i), (1)(C), and 

2 (2)(B)(ii). 

3 (2) INCREASE IN LIMITS FOR SENATE CAN4 DIDATES FACING WEALTHY OPPONENTS.—Section 

5 315(i)(1)(C) of such Act (2 U.S.C. 441a(i)(1)(C)) is 

6 amended— 

7 (A) by amending clause (i) to read as fol8 lows: 

9 ‘‘(i) 2 times the threshold amount, but 

10 not over 4 times that amount, the increased 

11 limit shall be 3 times the applicable limit;’’; 

12 (B) by amending clause (ii) to read as fol13 lows: 

14 ‘‘(ii) 4 times the threshold amount, but 

15 not over 10 times that amount, the in16 creased limit shall be 6 times the applicable 

17 limit; and’’; and 

18 (C) in clause (iii)— 

19 (i) by adding ‘‘and’’ at the end of sub20 clause (I), 

21 (ii) by striking subclause (II), and 

22 (iii) by redesignating subclause (III) 

23 as subclause (II). 

24 (3) INCREASE IN LIMITS FOR HOUSE CAN25 DIDATES FACING WEALTHY OPPONENTS.—Section 
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1 315A(a)(1) of such Act (2 U.S.C. 441a–1(a)(1)) is 

2 amended— 

3 (A) by adding ‘‘and’’ at the end of subpara4 graph (A); 

5 (B) by striking subparagraph (B); and 

6 (C) by redesignating subparagraph (C) as 

7 subparagraph (B). 

8 SEC. 3. REPEAL OF LIMIT ON AMOUNT OF PARTY EXPENDI9 TURES ON BEHALF OF CANDIDATES IN GEN10 ERAL ELECTIONS. 

11 (a) REPEAL OF LIMIT.—Section 315(d) of the Federal 

12 Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is 

13 amended— 

14 (1) in paragraph (1)— 

15 (A) by striking ‘‘(1) Notwithstanding’’ and 

16 inserting ‘‘Notwithstanding’’, 

17 (B) by striking ‘‘expenditures or limitations 

18 on’’ and inserting ‘‘amounts of expenditures or’’, 

19 and 

20 (C) by striking ‘‘Federal office, subject to 

21 the limitations contained in paragraphs (2), (3), 

22 and (4) of this subsection’’ and inserting ‘‘Fed23 eral office in any amount’’; and 

24 (2) by striking paragraphs (2), (3), and (4). 

25 (b) CONFORMING AMENDMENTS.— 
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1 (1) INDEXING.—Section 315(c) of such Act (2 

2 U.S.C. 441a(c)) is amended— 

3 (A) in paragraph (1)(B)(i), by striking 

4 ‘‘(d),’’; and 

5 (B) in paragraph (2)(B)(i), by striking 

6 ‘‘subsections (b) and (d)’’ and inserting ‘‘sub7 section (b)’’. 

8 (2) INCREASE IN LIMITS FOR SENATE CAN9 DIDATES FACING WEALTHY OPPONENTS.—Section 

10 315(i) of such Act (2 U.S.C. 441a(i)(1)) is amend11 ed— 

12 (A) in paragraph (1)(C), as amended by 

13 section 2(b)(2)(C), by amending clause (iii) to 

14 read as follows: 

15 ‘‘(iii) 10 times the threshold amount, 

16 the increased limit shall be 6 times the ap17 plicable limit.’’; 

18 (B) in paragraph (2)(A) in the matter pre19 ceding clause (i), by striking ‘‘, and a party 

20 committee shall not make any expenditure,’’; 

21 (C) in paragraph (2)(A)(ii), by striking 

22 ‘‘and party expenditures previously made’’; and 

23 (D) in paragraph (2)(B), by striking ‘‘and 

24 a party shall not make any expenditure’’. 
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1 (3) INCREASE IN LIMITS FOR HOUSE CAN2 DIDATES FACING WEALTHY OPPONENTS.—Section 

3 315A(a) of such Act (2 U.S.C. 441a—1(a)) is amend4 ed— 

5 (A) in paragraph (1), as amended by sec6 tion 2(b)(3), by striking ‘‘exceeds $350,000—’’ 

7 and all that follows and inserting the following: 

8 ‘‘exceeds $350,000, the limit under subsection 

9 (a)(1)(A) with respect to the candidate shall be 

10 tripled.’’; 

11 (B) in paragraph (3)(A) in the matter pre12 ceding clause (i), by striking ‘‘, and a party 

13 committee shall not make any expenditure,’’; 

14 (C) in paragraph (3)(A)(ii), by striking 

15 ‘‘and party expenditures previously made’’; and 

16 (D) in paragraph (3)(B), by striking ‘‘and 

17 a party shall not make any expenditure’’. 

18 SEC. 4. INCREASE IN CONTRIBUTION LIMITS FOR POLIT19 ICAL COMMITTEES. 

20 (a) CONTRIBUTIONS TO POLITICAL COMMITTEES.— 

21 Section 315(a)(1)(C) of the Federal Election Campaign Act 

22 of 1971 (2 U.S.C. 441a(a)(1)(C)) is amended by striking 

23 ‘‘$5,000’’ and inserting ‘‘$7,500’’. 
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1 (b) CONTRIBUTIONS MADE BY MULTICANDIDATE COM2 MITTEES.—Section 315(a)(2) of such Act (2 U.S.C. 

3 441a(a)(2)) is amended— 

4 (1) in subparagraph (A), by striking ‘‘$5,000’’ 

5 and inserting ‘‘$7,500’’; 

6 (2) in subparagraph (B), by striking ‘‘$15,000’’ 

7 and inserting ‘‘$25,000’’; and 

8 (3) in subparagraph (C), by striking ‘‘$5,000’’ 

9 and inserting ‘‘$7,500’’. 

10 SEC. 5. INDEXING OF ALL CONTRIBUTION LIMITS. 

11 (a) IN GENERAL.—Section 315(c)(1)(B) of the Federal 

12 Election Campaign Act of 1971 (2 U.S.C. 441a(c)(1)(B)) 

13 is amended to read as follows: 

14 ‘‘(B) Except as provided in subparagraph (C)— 

15 ‘‘(i) in any calendar year after 2002— 

16 ‘‘(I) a limitation established by subsection 

17 (a)(1)(A), (a)(1)(B), (b), or (h) shall be increased 

18 by the percent difference under subparagraph 

19 (A), 

20 ‘‘(II) each amount so increased shall remain 

21 in effect for the calendar year, and 

22 ‘‘(III) if any amount after the adjustment 

23 made under subclause (I) is not a multiple of 

24 $100, such amount shall be rounded to the near25 est multiple of $100; and 
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1 ‘‘(ii) in any calendar year after 2006— 

2 ‘‘(I) a limitation established by subsection 

3 (a)(1)(C), (a)(1)(D), or (a)(2) shall be increased 

4 by the percent difference under subparagraph 

5 (A), 

6 ‘‘(II) each amount so increased shall remain 

7 in effect for the calendar year, and 

8 ‘‘(III) if any amount after the adjustment 

9 made under subclause (I) is not a multiple of 

10 $100, such amount shall be rounded to the near11 est multiple of $100.’’. 

12 (b) PERIOD OF INCREASE.—Section 315(c)(1)(C) of 

13 such Act (2 U.S.C. 441a(c)(1)(C)), as amended by section 

14 2(b)(1), is amended by striking ‘‘subsections (a)(1)(A), 

15 (a)(1)(B), and (h)’’ and inserting ‘‘subsections (a) and (h)’’. 

16 (c) DETERMINATION OF BASE YEAR.—Section 

17 315(c)(2)(B) of such Act (2 U.S.C. 441a(c)(2)(B)) is 

18 amended— 

19 (1) by striking ‘‘and’’ at the end of clause (i); 

20 (2) by striking the period at the end of clause 

21 (ii) and inserting ‘‘; and’’; and 

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

23 clause: 

24 ‘‘(iii) for purposes of subsections (a)(1)(C), 

25 (a)(1)(D), and (a)(2), calendar year 2005.’’. 
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1 SEC. 6. PERMITTING TRANSFERS BETWEEN LEADERSHIP 

2 COMMITTEES AND NATIONAL PARTY COMMIT3 TEES. 

4 Section 315(a)(4) of the Federal Election Campaign 

5 Act of 1971 (2 U.S.C. 441a(a)(4)) is amended— 

6 (1) by striking ‘‘(4)’’ and inserting ‘‘(4)(A)’’; 

7 and 

8 (2) by adding at the end the following new sub9 paragraph: 

10 ‘‘(B) The limitations on contributions contained in 

11 paragraphs (1) and (2) do not apply to transfers between 

12 a leadership committee of an individual holding Federal 

13 office and political committees established and maintained 

14 by a national political party. For purposes of the previous 

15 sentence, the term ‘leadership committee’ means, with re16 spect to an individual holding Federal office, an unauthor17 ized political committee which is associated with such indi18 vidual but which is not affiliated with any authorized com19 mittee of such individual.’’. 

20 SEC. 7. INCREASE IN THRESHOLD OF CONTRIBUTIONS AND 

21 EXPENDITURES REQUIRED FOR DETER22 MINING TREATMENT AS POLITICAL COM23 MITTEE. 

24 (a) IN GENERAL.—Section 301(4)(A) of the Federal 

25 Election Campaign Act of 1971 (2 U.S.C. 431(4)(A)) is 
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1 amended by striking ‘‘$1,000’’ each place it appears and 

2 inserting ‘‘$10,000’’. 

3 (b) LOCAL POLITICAL PARTY COMMITTEES.— 

4 (1) CONTRIBUTIONS RECEIVED.—Section 

5 301(4)(C) of such Act (2 U.S.C. 431(4)(C)) is amend6 ed by striking ‘‘$5,000’’ each place it appears and in7 serting ‘‘$10,000’’. 

8 (2) CONTRIBUTIONS OR EXPENDITURES MADE.— 

9 Section 301(4)(C) of such Act (2 U.S.C. 431(4)(C)) is 

10 amended by striking ‘‘$1,000’’ each place it appears 

11 and inserting ‘‘$10,000’’. 

12 SEC. 8. PROHIBITING CONTRIBUTIONS AND DONATIONS TO 

13 SECTION 527 ORGANIZATIONS BY FOREIGN 

14 NATIONALS. 

15 (a) IN GENERAL.—Section 319(a)(1) of the Federal 

16 Election Campaign Act of 1971 (2 U.S.C. 441e(a)(1)) is 

17 amended— 

18 (1) by striking ‘‘or’’ at the end of subparagraph 

19 (B); 

20 (2) by redesignating subparagraph (C) as sub21 paragraph (D); and 

22 (3) by inserting after subparagraph (B) the fol23 lowing new subparagraph: 
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1 ‘‘(C) a contribution or donation to an orga2 nization described in section 527 of the Internal 

3 Revenue Code of 1986; or’’. 

4 (b) CONFORMING AMENDMENT REGARDING SOLICITA5 TION OF FUNDS.—Section 319(a)(2) of such Act (2 U.S.C. 

6 441e(a)(2)) is amended by striking ‘‘(A) or (B)’’ and insert7 ing ‘‘(A), (B), or (C)’’. 

8 SEC. 9. REQUIRING SECTION 527 ORGANIZATIONS TO SUB9 MIT REPORTS UNDER FEDERAL ELECTION 

10 CAMPAIGN ACT OF 1971. 

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

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

13 the following new paragraph: 

14 ‘‘(13)(A) Except as provided in subparagraph (B), 

15 each organization described in section 527 of the Internal 

16 Revenue Code of 1986 shall submit a report under this sec17 tion in the same manner, under the same terms and condi18 tions, and at the same times applicable to a political com19 mittee which is not an authorized committee of a candidate 

20 or a national committee of a political party. 

21 ‘‘(B) Subparagraph (A) does not apply to an organiza22 tion described in section 527(j)(5)(B) of the Internal Rev23 enue Code of 1986 (relating to a State or local committee 

24 of a political party or political committee of a State or 

25 local candidate).’’. 
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1 SEC. 10. PERMITTING EXPENDITURES FOR ELECTION2 EERING COMMUNICATIONS BY CERTAIN OR3 GANIZATIONS. 

4 (a) PERMITTING ORGANIZATIONS TO MAKE EXPENDI5 TURES FOR CERTAIN TARGETED ELECTIONEERING COMMU6 NICATIONS.—Section 316(c) of the Federal Election Cam7 paign Act of 1971 (2 U.S.C. 441b(c)) is amended by strik8 ing paragraph (6). 

9 (b) EXPANDING TYPES OF ORGANIZATIONS ELIGIBLE

10 TO MAKE EXPENDITURES.— 

11 (1) IN GENERAL.—Section 316(c) of such Act (2 

12 U.S.C. 441b(c)) is amended by striking ‘‘section 

13 501(c)(4) organization’’ each place it appears in 

14 paragraphs (2), (3)(B), and (4)(A) (in the matter 

15 preceding clause (i)) and inserting ‘‘section 501(c)(4), 

16 (5), or (6) organization’’. 

17 (2) DEFINITION.—Section 316(c)(4)(A)(i) of such 

18 Act (2 U.S.C. 441b(c)(4)(A)(i)) is amended by strik19 ing ‘‘section 501(c)(4) of the Internal Revenue Code 

20 of 1986’’ and inserting ‘‘paragraph (4), (5), or (6) of 

21 section 501(c) of the Internal Revenue Code of 1986’’. 

22 (c) CLARIFICATION OF EFFECT ON TAX TREATMENT

23 OF EXPENDITURES.—Section 316(c)(5) of such Act (2 

24 U.S.C. 441b(c)(5)) is amended by striking the period at the 

25 end and inserting the following: ‘‘, or to affect the treatment 

26 under such Code of any expenditures described in section 
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1 527(e) of such Code which are made by a section 501(c)(4), 

2 (5), or (6) organization.’’. 

3 SEC. 11. EXPANDING ABILITY OF CORPORATIONS AND 

4 LABOR ORGANIZATIONS TO COMMUNICATE 

5 WITH MEMBERS. 

6 (a) TYPES OF COMMUNICATIONS PERMITTED.—Sec7 tion 316(b)(4)(B) of the Federal Election Campaign Act of 

8 1971 (2 U.S.C. 441b(b)(4)(B)) is amended by striking ‘‘only 

9 by mail addressed’’ and inserting ‘‘only by communications 

10 addressed or otherwise delivered’’. 

11 (b) SOLICITATIONS BY TRADE ASSOCIATIONS.—Sec12 tion 316(b)(4)(D) of such Act (2 U.S.C. 441b(b)(4)(D)) is 

13 amended by striking ‘‘to the extent that’’ and all that fol14 lows and inserting a period. 

15 SEC. 12. PERMITTING STATE AND LOCAL POLITICAL PAR16 TIES TO USE NONFEDERAL FUNDS FOR 

17 VOTER REGISTRATION AND SAMPLE BAL18 LOTS. 

19 (a) IN GENERAL.—Section 301(20) of the Federal 

20 Election Campaign Act of 1971 (2 U.S.C. 431(20)) is 

21 amended— 

22 (1) in subparagraph (A), by striking clause (i) 

23 and redesignating clauses (ii) through (iv) as clauses 

24 (i) through (iii); and 

25 (2) in subparagraph (B)— 
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1 (A) in clause (i), by striking ‘‘subparagraph 

2 (A)(i) or (ii)’’ and inserting ‘‘subparagraph 

3 (A)(i)’’; 

4 (B) by striking ‘‘and’’ at the end of clause 

5 (iii); 

6 (C) by striking the period at the end of 

7 clause (iv) and inserting a semicolon; and 

8 (D) by adding at the end the following new 

9 clauses: 

10 ‘‘(v) voter registration activities; and 

11 ‘‘(vi) the costs incurred with the prepa12 ration of a sample ballot for an election in 

13 which a candidate for Federal office and a 

14 candidate for State or local office appears 

15 on the ballot.’’. 

16 (b) CONFORMING AMENDMENTS.—(1) Section 

17 304(f)(3)(B)(iv) of such Act (2 U.S.C. 434(f)(3)(B)(iv)) is 

18 amended by striking ‘‘section 301(20)(A)(iii)’’ and insert19 ing ‘‘section 301(20)(A)(ii)’’. 

20 (2) Section 323 of such Act (2 U.S.C. 441i) is amend21 ed— 

22 (A) in subsection (b)(2)(A), by striking ‘‘clause 

23 (i) or (ii)’’ and inserting ‘‘clause (i)’’; 
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1 (B) in subsection (e)(4), by striking ‘‘clauses (i) 

2 and (ii)’’ each place it appears in subparagraphs (A) 

3 and (B) and inserting ‘‘clause (i)’’; and 

4 (C) in subsection (f)(1), by striking ‘‘section 

5 301(20)(A)(iii)’’ and inserting ‘‘section 

6 301(20)(A)(ii)’’. 

7 SEC. 13. CLARIFICATION OF AUTHORIZATION OF FEDERAL 

8 CANDIDATES AND OFFICEHOLDERS TO AT9 TEND FUNDRAISING EVENTS FOR STATE OR 

10 LOCAL POLITICAL PARTIES. 

11 Section 323(e)(3) of the Federal Election Campaign 

12 Act of 1971 (2 U.S.C. 441i(e)(3)) is amended by striking 

13 ‘‘speak,’’ and inserting ‘‘speak without restriction or regula14 tion,’’. 

15 SEC. 14. MODIFICATION OF DEFINITION OF PUBLIC COMMU16 NICATION. 

17 (a) IN GENERAL.—Section 301(22) of the Federal 

18 Election Campaign Act of 1971 (2 U.S.C. 431(22)) is 

19 amended by adding at the end the following new sentence: 

20 ‘‘Such term shall not include communications over the 

21 Internet.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by sub23 section (a) shall take effect on the date of the enactment 

24 of this Act. 
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1 SEC. 15. TREATMENT OF CANDIDATE COMMUNICATIONS 

2 CONTAINING ENDORSEMENT BY FEDERAL 

3 CANDIDATE OR OFFICEHOLDER. 

4 (a) IN GENERAL.—Section 315(a) of the Federal Elec5 tion Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended 

6 by adding at the end the following new paragraph: 

7 ‘‘(9)(A) For purposes of paragraph (7)(C), a disburse8 ment for an electioneering communication which refers to 

9 a candidate for Federal office shall not be treated as a dis10 bursement which is coordinated with such candidate solely 

11 on the ground that the communication contains a State or 

12 local endorsement or (in the case of a communication con13 taining a State or local endorsement) that the candidate 

14 reviewed, approved, or otherwise participated in the prepa15 ration and dissemination of the communication. 

16 ‘‘(B) In subparagraph (A), the term ‘State or local en17 dorsement’ means, with respect to a candidate for Federal 

18 office— 

19 ‘‘(i) an endorsement by such candidate of a can20 didate for State or local office or of another candidate 

21 for Federal office; or 

22 ‘‘(ii) a statement of the position of such can23 didate on a State or local ballot initiative or ref24 erendum.’’. 

25 (b) CONFORMING AMENDMENT.—Section 

26 315(a)(7)(C)(ii) of such Act (2 U.S.C. 441a(a)(7)(C)(ii)) is 
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1 amended by striking ‘‘such disbursement’’ and inserting 

2 ‘‘subject to paragraph (9), such disbursement’’. 

3 (c) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply with respect to elections occurring on 

5 or after the date of the enactment of this Act. 

6 SEC. 16. SEVERABILITY. 

7 If any provision of this Act or any amendment made 

8 by this Act, or the application of a provision or amendment 

9 to any person or circumstance, is held to be unconstitu10 tional, the remainder of this Act and the amendments made 

11 by this Act, and the application of the provisions and 

12 amendments to any person or circumstance, shall not be 

13 affected by the holding. 

14 SEC. 17. EFFECTIVE DATE. 

15 Except as otherwise provided, the amendments made 

16 by this Act shall take effect January 1, 2006. 
Union Calendar No. 87 

109TH CONGRESS 

1ST SESSION H. R. 1316 

[Report No. 109–146] 

A BILL 

To amend the Federal Election Campaign Act of 

enue Code of 1986, and for other purposes. to exempt organizations under the Internal Revusing nonfederal funds, to restore certain rights and local parties to make certain expenditures general elections for Federal office, to allow State ties may make on behalf of their candidates in limit on the amount of expenditures political parindividuals during an election cycle, to repeal the of campaign contributions that may be made by 1971 to repeal the limit on the aggregate amount 

JUNE 22, 2005 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,