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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1117 Introduced in Senate (IS)]

105th CONGRESS
  1st Session
                                S. 1117

To amend Federal elections law to provide for campaign finance reform, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 31, 1997

   Ms. Snowe introduced the following bill; which was read twice and 
         referred to the Committee on Rules and Administration

_______________________________________________________________________

                                 A BILL

 
To amend Federal elections law to provide for campaign finance reform, 
                        and for other purposes.

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

SECTION 1. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Table of contents.
                         TITLE I--CONTRIBUTIONS

Sec. 101. Multicandidate political committees contributions to 
                            candidates.
Sec. 102. Prohibition of bundling of contributions by lobbyists.
Sec. 103. Credit for contributions to congressional candidates.
Sec. 104. Modification of contribution limits for Senate candidates 
                            when opposing candidates make expenditures 
                            from personal funds.
Sec. 105. Prohibition of contributions by individuals not qualified to 
                            vote.
Sec. 106. Indexing of contribution limits.
                   TITLE II--INDEPENDENT EXPENDITURES

Sec. 201. Reporting requirements for certain independent expenditures.
Sec. 202. Definition of independent expenditure; express advocacy.
                 TITLE III--POLITICAL PARTY COMMITTEES

Sec. 301. Soft money of political party committee.
Sec. 302. State party grassroots funds.
Sec. 303. Modification of contribution limits to committees of 
                            political parties.
Sec. 304. Reporting requirements.
Sec. 305. Expenditure limit of political party committees in response 
                            to candidate transfer of contributions from 
                            a previous election cycle.
Sec. 306. Prohibition of solicitation of political party soft money in 
                            Federal buildings.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Prohibition of leadership committees.
Sec. 402. Political activity of corporations, national banks, and labor 
                            organizations.

                         TITLE I--CONTRIBUTIONS

SEC. 101. MULTICANDIDATE POLITICAL COMMITTEES CONTRIBUTIONS TO 
              CANDIDATES.

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

SEC. 102. PROHIBITION OF BUNDLING OF CONTRIBUTIONS BY LOBBYISTS.

    Section 315(a)(8) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(8)) is amended to read as follows:
            ``(8) Intermediaries and conduits.--
                    ``(A) Treatment as contributions from persons by 
                whom made.--
                            ``(i) In general.--For purposes of the 
                        limitations imposed by this section, all 
                        contributions made by a person, either directly 
                        or indirectly, on behalf of a candidate, 
                        including contributions that are in any way 
                        earmarked or otherwise directed through an 
                        intermediary or conduit to the candidate, shall 
                        be treated as contributions from the person to 
                        the candidate.
                            ``(ii) Reporting.--The intermediary or 
                        conduit through which a contribution is made 
                        shall report the name of the original 
                        contributor and the intended recipient of the 
                        contribution to the Commission and to the 
                        intended recipient.
                    ``(B) Treatment as contributions from the 
                bundler.--
                            ``(i) In general.--Contributions that a 
                        bundler delivers to a candidate or the 
                        candidate's authorized committees shall be 
                        treated as contributions from the bundler to 
                        the candidate as well as from the original 
                        contributor.
                    ``(C) Definitions.--In this paragraph:
                            ``(i) Bundler.--The term `bundler' means an 
                        intermediary or conduit that--
                                    ``(I) delivers contributions made 
                                by other persons; and
                                    ``(II) is--
                                            ``(aa) a person required to 
                                        be listed as a lobbyist on a 
                                        registration or other report 
                                        filed pursuant to the Lobbying 
                                        Disclosure Act of 1995 (2 
                                        U.S.C. 1601 et seq.) or any 
                                        successor law that requires 
                                        reporting on the activities of 
                                        a person who is a lobbyist or 
                                        foreign agent; or
                                            ``(bb) an entity that is 
                                        directly or indirectly 
                                        established, financed, 
                                        maintained, or controlled by a 
                                        lobbyist or its agent, an 
                                        entity acting on behalf of a 
                                        lobbyist, and an officer or 
                                        agent acting on behalf of any 
                                        such lobbyist or entity.
                            ``(ii) Deliver.--The term `deliver' means 
                        to deliver contributions to a candidate by any 
                        method used or suggested by a bundler that 
                        communicates to the candidate (or to the person 
                        who receives the contributions on behalf of the 
                        candidate) that the bundler collected the 
                        contributions for the candidate, including such 
                        methods as--
                                    ``(I) personal delivery;
                                    ``(II) United States mail or 
                                similar services;
                                    ``(III) messenger service; and
                                    ``(IV) collection at an event or 
                                reception.''.

SEC. 103. CREDIT FOR CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES.

    (a) General Rule.--Subpart A of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 23 the 
following new section:

``SEC. 24. IN-STATE CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the total amount of local congressional 
political contributions made by the individual.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by subsection (a) 
        for a taxable year shall not exceed $100 ($200 in the case of a 
        joint return under section 6013).
            ``(2) Verification.--The credit allowed by subsection (a) 
        shall be allowed with respect to any contribution only if such 
        contribution is verified in such manner as the Secretary shall 
        prescribe by regulations.
    ``(c) Definition.--For purposes of this section--
            ``(1) Candidate.--The term `candidate' has the meaning 
        given that term in section 301 of the Federal Election Campaign 
        Act of 1971.
            ``(2) Contribution.--The term `contribution' has the 
        meaning given that term in section 301 of the Federal Election 
        Campaign Act of 1971.
            ``(3) Local congressional political contribution.--The term 
        `local congressional political contribution' means a 
        contribution or gift of money to--
                    ``(A) a local congressional candidate, or
                    ``(B) a committee, association, or organization 
                (whether or not incorporated) organized and operated 
                exclusively for the purpose of influencing (or 
                attempting to influence) the nomination or election of 
                a local congressional candidate,
        for use to further the candidacy of such candidate for 
        nomination or election to the Senate or House of 
        Representatives.
            ``(4) Local congressional candidate.--The term `local 
        congressional candidate' means a candidate in a primary, 
        general, or special election seeking nomination for election 
        to, or election to, the--
                    ``(A) Senate for the State in which the principal 
                residence of the taxpayer is located; or
                    ``(B) House of Representative for the congressional 
                district in which the principal residence of the 
                taxpayer is located.
            ``(5) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 1034.''.
    (b) Conforming Amendments.--
            (1) Section 642 of such Code (relating to special rules for 
        credits and deductions of estates or trusts) is amended by 
        adding at the end the following:
    ``(j) Credit for Certain Contributions Not Allowed.--An estate or 
trust shall not be allowed the credit against tax provided by section 
24.''.
            (2) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 23 the following new item:

                              ``Sec. 24. In-State contributions to 
                                        congressional candidates.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

SEC. 104. MODIFICATION OF CONTRIBUTION LIMITS FOR SENATE CANDIDATES 
              WHEN OPPOSING CANDIDATES MAKE EXPENDITURES FROM PERSONAL 
              FUNDS.

    (a) Declaration and Notification of Expenditures from Personal 
Funds.--Section 304(a)(6) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 434(a)(6)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (A) the following:
    ``(B)(i) Not later than the date on which a candidate for 
nomination to the Senate qualifies under State law for a primary 
election ballot, the candidate or the candidate's authorized committees 
shall file a declaration with the Commission stating the amount of 
personal funds that the candidate intends to expend in connection with 
the candidate's campaign for election from the date of the filing of 
the declaration through the date of the general election.
    ``(ii) A candidate who--
            ``(I) declares, under clause (i), that the candidate does 
        not intend to expend personal funds in an amount in excess of 
        $100,000; and
            ``(II) subsequently changes the declaration or expends 
        personal funds in excess of that amount,
shall file an amended declaration with the Commission and notify all 
other candidates for the same office within 24 hours after changing the 
declaration or exceeding the limits, whichever first occurs, by sending 
a notice by certified mail, return receipt requested.
    ``(C)(i) A candidate for election to the Senate or the candidate's 
authorized committees shall notify the Commission and each opponent of 
the candidate if the candidate or the candidate's authorized committees 
makes or obligates to make an aggregate amount of expenditures using 
personal funds in excess of 90 percent of the amount stated in 
subparagraph (B).
    ``(ii) After a candidate files a notification under clause (i), the 
person shall file an additional notification each time an aggregate 
amount of expenditures is made or obligated to be made using personal 
funds that equals $15,000.
    ``(iii) A notification under clause (i) or (ii) shall--
            ``(I) be submitted not later than 24 hours after the 
        expenditure that is the subject of the notification is made or 
        obligated to be made;
            ``(II) include the name of the candidate, the office sought 
        by the candidate, and the date and amount of the expenditure; 
        and
            ``(III) include the total amount of expenditures from 
        personal funds that have been made or obligated to be made with 
        respect to that election as of the date of the expenditure that 
        is the subject of the notification.''.
    (b) Modification of Contribution Limits.--Section 315 of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``No person'' and 
                inserting ``Except as provided in subsection (i), no 
                person'';
                    (B) in paragraph (2), by striking ``No 
                multicandidate'' and inserting ``Except as provided in 
                subsection (i), no multicandidate'';
            (2) in subsection (d)(3), by striking ``The national 
        committee'' and inserting ``Except as provided in subsection 
        (i), the national committee''; and
            (3) by adding at the end the following:
    ``(i) Contribution Limits in Response to Senate Candidate 
Expenditures of Personal Funds.--
            ``(1) In general.--
                    ``(A) Contribution limit under paragraphs (1)(a) 
                and (2)(a) of section 315(a).--An individual or 
                multicandidate political committee may make 
                contributions to a candidate with respect to any 
                general election to the Senate in an amount--
                            ``(i) not to exceed the applicable limit 
                        multiplied by 2, if an opponent of the 
                        candidate or the opponent's authorized 
                        committees in such election declares an 
                        intention to make, makes, or obligates to make 
                        an aggregate amount of expenditures using 
                        personal funds that is equal to or greater than 
                        $100,000 and less than $250,000;
                            ``(ii) not to exceed $5,000, if an opponent 
                        of the candidate or the opponent's authorized 
                        committees declares an intention to make, 
                        makes, or obligates to make an aggregate amount 
                        of expenditures using personal funds that is 
                        equal to or greater than $250,000; or
                            ``(iii) not to exceed $5,000, if an 
                        opponent of the candidate or the opponent's 
                        authorized committees makes or obligates to 
                        make an aggregate amount of expenditures in 
                        excess of the amount the opponent declared 
                        under section 304(a)(6)(B).
                    ``(B) Contribution limit under section 315(d)(3).--
                If the opponent of a candidate for election to the 
                Senate or the opponent's authorized committees makes or 
                obligates to make an aggregate amount of expenditures 
                in excess of the amount the opponent declared under 
                section 304(a)(6)(B), a national committee of a 
                political party may make expenditures in connection 
                with the general election campaign of the candidate 
                without regard to the limitations in subsection (a) or 
                this subsection in an amount not to exceed the amount 
                of expenditures that the opponent makes or obligates to 
                make in excess of the amount the opponent declared 
                under such section.
            ``(2) Exception.--The limits under paragraph (1) shall 
        apply to contributions to a candidate only if the candidate 
        declares an amount under section 304(a)(6)(B) and expends an 
        amount that is less than $100,000.''.
    (c) Definition of Personal Funds.--Section 301 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431) is amended by adding at 
the end the following:
    ``(20) Personal funds.--The term `personal funds' means an amount 
that is derived from--
                    ``(A) personal funds of the candidate and members 
                of the candidate's immediate family; or
                    ``(B) proceeds of indebtedness incurred by the 
                candidate or a member of the candidate's immediate 
                family.''.

SEC. 105. PROHIBITION OF CONTRIBUTIONS BY INDIVIDUALS NOT QUALIFIED TO 
              VOTE.

    (a) Prohibition.--Section 319 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 441e) is amended--
            (1) in the heading by adding ``AND INDIVIDUALS NOT 
        QUALIFIED TO REGISTER TO VOTE'' at the end; and
            (2) in subsection (a)--
                    (A) by striking ``(a) It shall'' and inserting the 
                following:
    ``(a) Prohibitions.--
            ``(1) Foreign nationals.--It shall''; and
                    (B) by adding at the end the following:
            ``(2) Individuals not qualified to vote.--It shall be 
        unlawful for--
                    ``(A) an individual who is not qualified to 
                register to vote in a Federal election to make a 
                contribution, or to promise expressly or impliedly to 
                make a contribution, in connection with a Federal 
                election; or
                    ``(B) any person to solicit, accept, or receive a 
                contribution in connection with a Federal election from 
                an individual who is not qualified to register to vote 
                in a Federal election.''.
    (b) Inclusion in Definition of Identification.--Section 301(13) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 431(13)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' the first place it appears; 
                and
                    (B) by inserting ``, and an affirmation that the 
                individual is an individual who is not prohibited by 
                section 319 from making a contribution'' after 
                ``employer''; and
            (2) in subparagraph (B) by inserting ``and an affirmation 
        that the person is a person that is not prohibited by section 
        319 from making a contribution'' after ``such person''.

SEC. 106. INDEXING OF CONTRIBUTION LIMITS.

    Section 315(c) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(c)) is amended--
            (1) in paragraph (1), by striking ``subsection (b) and 
        subsection (d)'' and inserting ``subsections (a), (b), and 
        (d)''; and
            (2) in paragraph (2)(B), by striking ``means the calendar 
        year 1974.'' and inserting ``means--
                    ``(i) for purposes of subsections (b) and (d), 
                calendar year 1974; and
                    ``(ii) for purposes of subsection (a), calendar 
                year 1997.''.

                   TITLE II--INDEPENDENT EXPENDITURES

SEC. 201. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended--
            (1) in subsection (c)(2), by striking the undesignated 
        matter after subparagraph (C); and
            (2) by adding at the end the following:
    ``(d) Time for Reporting Certain Expenditures.--
            ``(1) Expenditures aggregating $1,000 within 20 days before 
        an election.--
                    ``(A) Initial report.--A person (including a 
                political committee) that makes or obligates to make 
                independent expenditures aggregating $1,000 or more 
                after the 20th day, but more than 24 hours, before the 
                date of an election shall file a report describing the 
                expenditures within 24 hours after that amount of 
                independent expenditures has been made.
                    ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person shall file an 
                additional report each time that the person makes or 
                obligates to make independent expenditures during the 
                period described in (A) aggregating an additional 
                $1,000 with respect to the same election as that to 
                which the initial report relates.
            ``(2) Expenditures aggregating $5,000 before 20th day 
        before election.--
                    ``(A) Initial report.--A person (including a 
                political committee) that makes or obligates to make 
                independent expenditures aggregating $5,000 or more at 
                any time up to and including the 20th day before the 
                date of an election shall file a report describing the 
                expenditures within 48 hours after that amount of 
                independent expenditures has been made.
                    ``(B) Additional reports.--After a person files a 
                report under subparagraph (A), the person shall file an 
                additional report each time that the person makes or 
                obligates to make independent expenditures during the 
                period described in subparagraph (A) aggregating an 
                additional $5,000 with respect to the same election as 
                that to which the initial report relates.
            ``(3) Place of filing; contents.--A report under this 
        subsection--
                    ``(A) shall be filed with the Commission; and
                    ``(B) shall contain the information required by 
                subsection (b)(6)(B)(iii), including the name of each 
                candidate whom an expenditure is intended to support or 
                oppose.''.

SEC. 202. DEFINITION OF INDEPENDENT EXPENDITURE; EXPRESS ADVOCACY.

    (a) Definition of Independent Expenditure.--Section 301(17) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431(17) et seq.) is 
amended to read as follows:
    ``(17) Independent Expenditure.--The term `independent expenditure' 
means an expenditure that--
            ``(A) contains express advocacy; and
            ``(B) is made without the participation or cooperation of, 
        or without consultation with, or without coordination with a 
        candidate or a candidate's authorized committee or agent.''.
    (b) Express Advocacy.--
            (1) Amendment of definition of expenditure.--Section 
        301(9)(A) of the Federal Election Campaign Act of 1971 (2 
        U.S.C. 431(9)(A)) is amended--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by striking the period at the end of clause 
                (ii) and inserting a semicolon; and
                    (C) by adding at the end the following:
                            ``(iii) any payment during an election year 
                        (or in a nonelection year, during the period 
                        beginning on the date on which a vacancy for 
                        Federal office occurs and ending on the date of 
                        the special election for that office) for a 
                        communication that is made through any 
                        broadcast medium, newspaper, magazine, 
                        billboard, direct mail, or similar type of 
                        general public communication or political 
                        advertising by a national, State, district, or 
                        local committee of a political party, including 
                        a congressional campaign committee of a party, 
                        that refers to a clearly identified candidate; 
                        and
                            ``(iv) any payment for a communication that 
                        contains express advocacy.''.
            (2) Definition of express advocacy.--Section 301 of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 431) (as 
        amended by section 104(c)) is amended by adding at the end the 
        following:
    ``(21) Express Advocacy.--
            ``(A) In general.--The term `express advocacy' includes--
                    ``(i) a communication that conveys a message that 
                advocates the election or defeat of a clearly 
                identified candidate for Federal office by using an 
                expression such as `vote for,' `elect,' `support,' 
                `vote against,' `defeat,' `reject,' `(name of 
                candidate) for Congress', `vote pro-life,' or `vote 
                pro-choice', accompanied by a listing or picture of a 
                clearly identified candidate described as `pro-life' or 
                `pro-choice,' `reject the incumbent', or a similar 
                expression;
                    ``(ii) a communication that is made through a 
                broadcast medium, newspaper, magazine, billboard, 
                direct mail, or similar type of general public 
                communication or political advertising that involves 
                aggregate disbursements of $10,000 or more, that refers 
                to a clearly identified candidate, that a reasonable 
                person would understand as advocating the election or 
                defeat of the candidate, and that is made within 30 
                days before the date of a primary election (and is 
                targeted to the State in which the primary is 
                occurring), or 60 days before a general election; or
                    ``(iii) a communication that is made through a 
                broadcast medium, newspaper, magazine, billboard, 
                direct mail, or similar type of general public 
                communication or political advertising that involves 
                aggregate disbursements of $10,000 or more, that refers 
                to a clearly identified candidate, that a reasonable 
                person would understand as advocating the election or 
                defeat of a candidate, that is made before the date 
                that is 30 days before the date of a primary election, 
                or 60 days before the date of a general election, and 
                that is made for the purpose of advocating the election 
                or defeat of the candidate, as shown by 1 or more 
                factors such as a statement or action by the person 
                making the communication, the targeting or placement of 
                the communication, or the use by the person making the 
                communication of polling, demographic, or other similar 
                data relating to the candidate's campaign or election.
            ``(B) Exclusion.--The term `express advocacy' does not 
        include the publication or distribution of a communication that 
        is limited solely to providing information about the voting 
        record of elected officials on legislative matters and that a 
        reasonable person would not understand as advocating the 
        election or defeat of a particular candidate.''.

                 TITLE III--POLITICAL PARTY COMMITTEES

SEC. 301. SOFT MONEY OF POLITICAL PARTY COMMITTEE.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) is amended by adding at the end the following:

``SEC. 324. SOFT MONEY OF PARTY COMMITTEES.

    ``(a) National Committees.--A national committee of a political 
party (including a national congressional campaign committee of a 
political party but not including an entity regulated under subsection 
(b)) shall not solicit or receive any contributions, donations, or 
transfers of funds, or spend any funds, that are not subject to the 
limitations, prohibitions, and reporting requirements of this Act.
    ``(b) State, District, and Local Committees.--
            ``(1) In general.--A State, district, or local committee of 
        a political party shall not expend or disburse any amount 
        during a calendar year in which a Federal election is held for 
        any activity that might affect the outcome of a Federal 
        election, including any voter registration or get-out-the-vote 
        activity, any generic campaign activity, and any communication 
        that refers to a candidate (regardless of whether a candidate 
        for State or local office is also mentioned or identified) 
        unless the amount is subject to the limitations, prohibitions, 
        and reporting requirements of this Act.
            ``(2) Activity excluded from paragraph (1).--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                an expenditure or disbursement made by a State, 
                district, or local committee of a political party for--
                            ``(i) a contribution to a candidate for 
                        State or local office if the contribution is 
                        not designated or otherwise earmarked to pay 
                        for an activity described in paragraph (1);
                            ``(ii) the costs of a State, district, or 
                        local political convention;
                            ``(iii) the non-Federal share of a State, 
                        district, or local party committee's 
                        administrative and overhead expenses (but not 
                        including the compensation in any month of any 
                        individual who spends more than 20 percent of 
                        the individual's time on activities during the 
                        month that may affect the outcome of a Federal 
                        election), except that for purposes of this 
                        paragraph, the non-Federal share of a party 
                        committee's administrative and overhead 
                        expenses shall be determined by applying the 
                        ratio of the non-Federal disbursements to the 
                        total Federal expenditures and non-Federal 
                        disbursements made by the committee during the 
                        previous presidential election year to the 
                        committee's administrative and overhead 
                        expenses in the election year in question;
                            ``(iv) the costs of grassroots campaign 
                        materials, including buttons, bumper stickers, 
                        and yard signs that name or depict only a 
                        candidate for State or local office; and
                            ``(v) the cost of any campaign activity 
                        conducted solely on behalf of a clearly 
                        identified candidate for State or local office, 
                        if the candidate activity is not an activity 
                        described in paragraph (1).
                    ``(B) Fundraising costs.--A national, State, 
                district, or local committee of a political party shall 
                not expend any amount to raise funds that are used, in 
                whole or in part, to pay the costs of an activity 
                described in paragraph (1) unless the amount is subject 
                to the limitations, prohibitions, and reporting 
                requirements of this Act.
    ``(c) Tax-Exempt Organizations.--A national, State, district, or 
local committee of a political party (including a national 
congressional campaign committee of a political party) shall not 
solicit any funds for or make any donations to an organization that is 
exempt from Federal taxation under section 501(a) of the Internal 
Revenue Code of 1986 and that is described in section 501(c) of such 
Code.
    ``(d) Candidates.--
            ``(1) In general.--A candidate, individual holding Federal 
        office, or agent of a candidate or individual holding Federal 
        office shall not--
                    ``(A) solicit, receive, transfer, or spend funds in 
                connection with an election for Federal office unless 
                the funds are subject to the limitations, prohibitions, 
                and reporting requirements of this Act;
                    ``(B) solicit, receive, or transfer funds that are 
                to be expended in connection with any election other 
                than a Federal election unless the funds--
                            ``(i) are not in excess of the amounts 
                        permitted with respect to contributions to 
                        candidates and political committees under 
                        paragraphs (1) and (2) of section 315(a); and
                            ``(ii) are not from sources prohibited by 
                        this Act from making contributions with respect 
                        to an election for Federal office; or
                    ``(C) solicit, receive, or transfer any funds on 
                behalf of any person that are not subject to the 
                limitations, prohibitions, and reporting requirements 
                of this Act if the funds are for use in financing any 
                campaign-related activity or any communication that 
                refers to a clearly identified candidate for Federal 
                office.
            ``(2) Exception.--Paragraph (1) does not apply to the 
        solicitation or receipt of funds by an individual who is a 
        candidate for a State or local office if the solicitation or 
        receipt of funds is permitted under State law for the 
        individual's State or local campaign committee.
    ``(e) Definition of Committee.--In this section, the term 
`committee of a political party' includes an entity that is directly or 
indirectly established, financed, maintained, or controlled by a 
committee or its agent, an entity acting on behalf of a committee, and 
an officer or agent acting on behalf of any such committee or 
entity.''.

SEC. 302. STATE PARTY GRASSROOTS FUNDS.

    (a) Individual Contributions.--Section 315(a)(1) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) is amended--
            (1) in subparagraph (B) by striking ``or'' at the end;
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
            ``(C) to--
                    ``(i) a State Party Grassroots Fund established and 
                maintained by a State committee of a political party in 
                any calendar year which, in the aggregate, exceed 
                $20,000;
                    ``(ii) any other political committee established 
                and maintained by a State committee of a political 
                party in any calendar year which, in the aggregate, 
                exceed $5,000;
        except that the aggregate contributions described in this 
        subparagraph that may be made by a person to the State Party 
        Grassroots Fund and all committees of a State Committee of a 
        political party in any State in any calendar year shall not 
        exceed $20,000; or''.
    (b) Limits.--
            (1) In general.--Section 315(a) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended by striking 
        paragraph (3) and inserting the following:
            ``(3) Overall limits.--
                    ``(A) Individual limit.--No individual shall make 
                contributions during any calendar year that, in the 
                aggregate, exceed $30,000.
                    ``(B) Calendar year.--No individual shall make 
                contributions during any calendar year--
                            ``(i) to all candidates and their 
                        authorized political committees that, in the 
                        aggregate, exceed $25,000; or
                            ``(ii) to all political committees 
                        established and maintained by State committees 
                        of a political party that, in the aggregate, 
                        exceed $20,000.
                    ``(C) Nonelection years.--For purposes of 
                subparagraph (B)(i), any contribution made to a 
                candidate or the candidate's authorized political 
                committees in a year other than the calendar year in 
                which the election is held with respect to which the 
                contribution is made shall be treated as being made 
                during the calendar year in which the election is 
                held.''.
    (c) Definitions.--Section 301 of the Federal Election Campaign Act 
of 1970 (2 U.S.C. 431) (as amended by section 202(b)(2)) is amended by 
adding at the end the following:
            ``(22) Generic campaign activity.--The term `generic 
        campaign activity' means a campaign activity that promotes a 
        political party and does not refer to any particular Federal or 
        non-Federal candidate.
            ``(23) State party grassroots fund.--The term `State Party 
        Grassroots Fund' means a separate segregated fund established 
        and maintained by a State committee of a political party solely 
        for purposes of making expenditures and other disbursements 
        described in section 326(d).''.
    (d) State Party Grassroots Funds.--Title III of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as amended by 
section 301) is amended by adding at the end the following:

``SEC. 325. STATE PARTY GRASSROOTS FUNDS.

    ``(a) In General.--A State committee of a political party shall 
only make disbursements and expenditures from the committee's State 
Party Grassroots Fund that are described in subsection (d).
    ``(b) Transfers.--
            ``(1) In general.--Notwithstanding section 315(a)(4), a 
        State committee of a political party shall not transfer any 
        funds from the committee's State Party Grassroots Fund to any 
        other State Party Grassroots Fund or to any other political 
        committee, except as provided in paragraph (2).
            ``(2) Exception.--A committee of a political party may 
        transfer funds from the committee's State Party Grassroots Fund 
        to a district or local committee of the same political party in 
        the same State if the district or local committee--
                    ``(A) has established a separate segregated fund 
                for the purposes described in subsection (d); and
                    ``(B) uses the transferred funds solely for those 
                purposes.
    ``(c) Amounts Received by Grassroots Funds From State and Local 
Candidate Committees.--
            ``(1) In general.--Any amount received by a State Party 
        Grassroots Fund from a State or local candidate committee for 
        expenditures described in subsection (d) that are for the 
        benefit of that candidate shall be treated as meeting the 
        requirements of 324(b)(1) and section 304(e) if--
                    ``(A) the amount is derived from funds which meet 
                the requirements of this Act with respect to any 
                limitation or prohibition as to source or dollar amount 
                specified in paragraphs (1)(A) and (2)(A)(i) of section 
                315(a); and
                    ``(B) the State or local candidate committee--
                            ``(i) maintains, in the account from which 
                        payment is made, records of the sources and 
                        amounts of funds for purposes of determining 
                        whether those requirements are met; and
                            ``(ii) certifies that the requirements were 
                        met.
            ``(2) Determination of compliance.--For purposes of 
        paragraph (1)(A), in determining whether the funds transferred 
        meet the requirements of this Act described in paragraph 
        (1)(A)--
                    ``(A) a State or local candidate committee's cash 
                on hand shall be treated as consisting of the funds 
                most recently received by the committee; and
                    ``(B) the committee must be able to demonstrate 
                that its cash on hand contains funds meeting those 
                requirements sufficient to cover the transferred funds.
            ``(3) Reporting.--Notwithstanding paragraph (1), any State 
        Party Grassroots Fund that receives a transfer described in 
        paragraph (1) from a State or local candidate committee shall 
        be required to meet the reporting requirements of this Act, and 
        shall submit to the Commission all certifications received, 
        with respect to receipt of the transfer from the candidate 
        committee.
    ``(d) Disbursements and Expenditures.--A State committee of a 
political party may make disbursements and expenditures from its State 
Party Grassroots Fund only for--
            ``(1) any generic campaign activity;
            ``(2) payments described in clauses (v), (viii), and (x) of 
        paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
        paragraph (9)(B) of section 301;
            ``(3) subject to the limitations of section 315(d), 
        payments described in clause (xii) of paragraph (8)(B), and 
        clause (ix) of paragraph (9)(B), of section 301 on behalf of 
        candidates other than for President and Vice President;
            ``(4) voter registration; and
            ``(5) development and maintenance of voter files during an 
        even-numbered calendar year.
    ``(e) Definition.--In this section, the term `State or local 
candidate committee' means a committee established, financed, 
maintained, or controlled by a candidate for other than Federal 
office.''.

SEC. 303. MODIFICATION OF CONTRIBUTION LIMITS TO COMMITTEES OF 
              POLITICAL PARTIES.

    Section 315(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a) et seq.) is amended--
            (1) in paragraph (1)(B), by striking ``$20,000'' and 
        inserting ``$25,000''; and
            (2) in paragraph (2)(B), by striking ``$15,000'' and 
        inserting ``$20,000''.

SEC. 304. REPORTING REQUIREMENTS.

    (a) Reporting Requirements.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 201) is 
amended by adding at the end the following:
    ``(e) Political Committees.--
            ``(1) National and congressional political committees.--The 
        national committee of a political party, any congressional 
        campaign committee of a political party, and any subordinate 
        committee of either, shall report all receipts and 
        disbursements during the reporting period, whether or not in 
        connection with an election for Federal office.
            ``(2) Other political committees to which section 324 
        applies.--A political committee to which section 324(b)(1) 
        applies shall report all receipts and disbursements made for 
        activities described in paragraphs (1) and (2)(A)(iii) of 
        section 324(b).
            ``(3) Other political committees.--Any political committee 
        to which paragraph (1) or (2) does not apply shall report any 
        receipts or disbursements that are used in connection with a 
        Federal election.
            ``(4) Itemization.--If a political committee has receipts 
        or disbursements to which this subsection applies from any 
        person aggregating in excess of $200 for any calendar year, the 
        political committee shall separately itemize its reporting for 
        such person in the same manner as required in paragraphs 
        (3)(A), (5), and (6) of subsection (b).
    ``(5) Reporting Periods.--Reports required to be filed under this 
subsection shall be filed for the same time periods required for 
political committees under subsection (a).''.
    (b) Building Fund Exception to the Definition of Contribution.--
Section 301(8)(B) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(8)(B)) is amended--
            (1) by striking clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.
    (c) Reports by State Committees.--Section 304 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by subsection 
(a)) is amended by adding at the end the following:
    ``(f) Filing of State Reports.--In lieu of any report required to 
be filed by this Act, the Commission may allow a State committee of a 
political party to file with the Commission a report required to be 
filed under State law if the Commission determines such reports contain 
substantially the same information.''.
    (d) Other Reporting Requirements.--
            (1) Authorized committees.--Section 304(b)(4) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
        amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (H);
                    (B) by inserting ``and'' at the end of subparagraph 
                (I); and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) in the case of an authorized committee, 
                disbursements for the primary election, the general 
                election, and any other election in which the candidate 
                participates;''.
            (2) Names and addresses.--Section 304(b)(5)(A) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(5)(A)) 
        is amended by inserting ``, and the election to which the 
        operating expenditure relates'' after ``operating 
        expenditure''.

SEC. 305. EXPENDITURE LIMIT OF POLITICAL PARTY COMMITTEES IN RESPONSE 
              TO CANDIDATE TRANSFER OF CONTRIBUTIONS FROM A PREVIOUS 
              ELECTION CYCLE.

    (a) In General.--Section 315(d) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(d)) (as amended by section 104(b)(2)) is 
amended--
            (1) in paragraph (1), by striking ``(2) and (3)'' and 
        inserting ``(2), (3), and (4)'';
            (2) in paragraph (3), by striking ``subsection (i)'' and 
        inserting ``subsection (i) and paragraph (4)''; and
            (3) by adding at the end the following:
    ``(4) If a candidate for election to the Senate or the House of 
Representatives or the candidate's authorized committees transfers 
funds from a previous election cycle to the current election cycle, a 
national or State committee of a political party may make an aggregate 
amount of expenditures in connection with the general election campaign 
of an opponent of the candidate in the same election that does not 
exceed the amount of such funds transferred by the candidate.''.
    (b) Definition of Election Cycle.--Section 301 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431) (as amended by section 
302(c)) is amended by adding at the end the following:
    ``(24) Election Cycle.--The term `election cycle' means--
            ``(A) in the case of a candidate or the authorized 
        committees of a candidate, the period beginning on the day 
        after the date of the most recent general election for the 
        office or seat that the candidate is seeking and ending on the 
        date of the next general election for that office or seat; and
            ``(B) in the case of all other persons, the period 
        beginning on the first day following the date of the last 
        general election and ending on the date of the next general 
        election.''.

SEC. 306. PROHIBITION OF SOLICITATION OF POLITICAL PARTY SOFT MONEY IN 
              FEDERAL BUILDINGS.

    Section 607 of title 18, United States Code, is amended--
            (1) in subsection (a), by striking ``within the meaning of 
        section 301(8) of the Federal Election Campaign Act of 1971''; 
        and
            (2) by adding at the end the following:
    ``(c) Definition of Contribution.--In this section, the term 
`contribution' means a gift, subscription, loan, advance, or deposit of 
money or anything of value made by any person in connection with--
            ``(1) any election or elections for Federal office; or
            ``(2) any political committee (as defined in section 301 of 
        the Federal Election Campaign Act of 1971).''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. PROHIBITION OF LEADERSHIP COMMITTEES.

    Section 302(e) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(e)) is amended by adding at the end the following:
            ``(6) Prohibition of leadership committees.--
                    ``(A) In general.--
                            ``(i) Prohibition.--A candidate or an 
                        individual holding Federal office shall not 
                        establish, finance, maintain, or control any 
                        political committee or non-Federal political 
                        committee other than a principal campaign 
                        committee of the candidate, authorized 
                        committee, party committee, or other political 
                        committee designated in accordance with 
                        paragraph (3).
                            ``(ii) Candidate for more than 1 office.--A 
                        candidate for more than 1 Federal office may 
                        designate a separate principal campaign 
                        committee for the campaign for election to each 
                        Federal office.
                            ``(iii) Candidates for State or local 
                        office.--This paragraph does not preclude a 
                        Federal officeholder who is a candidate for 
                        State or local office from establishing, 
                        financing, maintaining, or controlling a 
                        political committee for election of the 
                        individual to the State or local office.
                    ``(B) Transition.--
                            ``(i) Continuation for 12 months.--For a 
                        period of 12 months after the effective date of 
                        this paragraph, any political committee 
                        established before that date but that is 
                        prohibited under subparagraph (A) may continue 
                        to make contributions.
                            ``(ii) Disbursement at the end of 12 
                        months.--At the end of the 12-month period, the 
                        political committee shall disburse all funds by 
                        1 or more of the following means:
                                    ``(I) Making contributions to a 
                                person described in section 501(c)(3) 
                                of the Internal Revenue Code of 1986 
                                and exempt from taxation under section 
                                501(a) of the Code.
                                    ``(II) Making a contribution to the 
                                Treasury of the United States.
                                    ``(III) Contributing to the 
                                national, State, or local committee of 
                                a political party.
                                    ``(IV) Making a contribution of not 
                                to exceed $1,000 each to 1 or more 
                                candidates or non-Federal 
                                candidates.''.

SEC. 402. POLITICAL ACTIVITY OF CORPORATIONS, NATIONAL BANKS, AND LABOR 
              ORGANIZATIONS.

    Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b) is amended by adding at the end the following:
    ``(c) Use of Funds for Political Activity.--
            ``(1) Authorization Required.--Except with the prior, 
        written, voluntary authorization of each member, stockholder, 
        or employee--
                    ``(A) a national bank or corporation described in 
                this section shall not collect from or assess its 
                stockholders or employees any dues, initiation fee, or 
                other payment as a condition of employment or ownership 
                if any part of the dues, fee, or payment will be used 
                for political activities in which the national bank or 
                corporation, as the case may be, is engaged; and
                    ``(B) a labor organization described in this 
                section shall not collect from or assess its members or 
                nonmembers any dues, initiation fee, or other payment 
                if any part of the dues, fee, or payment will be used 
                for political activities.
            ``(2) Length of authorization.--An authorization under 
        paragraph (1) shall cease to be effective on the date that it 
        is revoked by the individual that gave the authorization.
            ``(3) Form of authorization.--An authorization under 
        paragraph (1) shall be presented to the individual as a 
        separate document, clearly explaining the purpose and effect of 
        the authorization.
            ``(4) Definition of political activity.--In this 
        subsection, the term `political activity' means a communication 
        or other activity that involves carrying on propaganda, 
        attempting to influence legislation, or participating or 
        intervening in a political campaign or political party.''.
                                 <all>
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