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105TH CONGRESS

1ST SESSION S. 1190

To reform the financing of Federal elections.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 17, 1997

Mr. ALLARD 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.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Campaign Finance Integrity Act of 1997’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—CONTRIBUTIONS

Sec. 101. Requirement for in-state and in-district contributions to congressional

candidates.

Sec. 102. Use of contributions to pay campaign debt.

Sec. 103. Modification of political party contribution limits to candidates when

candidates make expenditures from personal funds.

Sec. 104. Modification of contribution limits.
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TITLE II—DISCLOSURE REQUIREMENTS

Sec. 201. Disclosure of certain expenditures for issue advocacy.

Sec. 202. Disclosure of certain non-Federal financial activities of national political parties.

Sec. 203. Political activities of corporations and labor organizations.

TITLE III—REPORTING REQUIREMENTS

Sec. 301. Time for candidates to file reports.

Sec. 302. Contributor information required for contributions in any amount.

Sec. 303. Prohibition of depositing contributions with incomplete contributor

information.

Sec. 304. Filing of reports using computers and facsimile machines; required

electronic disclosure by commission.

TITLE IV—MISCELLANEOUS

Sec. 401. Ban on mass mailings.

Sec. 402. Effective date.

1 TITLE I—CONTRIBUTIONS

2 SEC. 101. REQUIREMENT FOR IN-STATE AND IN-DISTRICT

3 CONTRIBUTIONS TO CONGRESSIONAL CAN4 DIDATES.

5 (a) IN GENERAL.—Section 315 of the Federal Elec6 tion Campaign Act of 1971 (2 U.S.C. 441a) is amended—

7 (1) by redesignating subsections (e), (f), (g),

8 and (h) as subsections (f), (g), (h), and (i), respec9 tively;

10 (2) by inserting after subsection (d) the follow11 ing:

12 ‘‘(e) REQUIREMENT FOR IN-STATE AND IN-DISTRICT

13 CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES.—

14 ‘‘(1) DEFINITIONS.—

15 ‘‘(A) IN-STATE CONTRIBUTION.—In this

16 subsection, the term ‘in-State contribution’
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1 means a contribution from an individual that is

2 a legal resident of the candidate’s State.

3 ‘‘(B) IN-DISTRICT CONTRIBUTION.—In this

4 subsection, the term ‘in-district contribution’

5 means a contribution from an individual that is

6 a legal resident of the candidate’s district.

7 ‘‘(2) LIMIT.—A candidate for nomination to, or

8 election to, the Senate or House of Representatives

9 and the candidate’s authorized committees shall not

10 accept an aggregate amount of contributions of

11 which the aggregate amount of in-State contribu12 tions and in-district contributions is less than 50

13 percent of the total amount of contributions accept14 ed by the candidate and the candidate’s authorized

15 committees.

16 ‘‘(3) TIME FOR MEETING REQUIREMENT.—A

17 candidate shall meet the requirement of paragraph

18 (2) at the end of each reporting period under section

19 304.

20 ‘‘(4) PERSONAL FUNDS.—For purposes of this

21 subsection, a contribution that is attributable to the

22 personal funds of the candidate or proceeds of in23 debtedness incurred by the candidate or the can24 didate’s authorized committees shall not be consid-
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1 ered to be an in-State contribution or in-district con2 tribution.’’.

3 (b) CONFORMING AMENDMENTS.—Section 315 of the

4 Federal Election Campaign Act of 1971 (2 U.S.C. 441a)

5 is amended—

6 (1) in subsection (b)(1)(A), by striking ‘‘(e)’’

7 and inserting ‘‘(f)’’;

8 (2) in subsection (d)(2), by striking ‘‘(e)’’ and

9 inserting ‘‘(f)’’; and

10 (3) in subsection (d)(3)(A)(i), by striking ‘‘(e)’’

11 and inserting ‘‘(f)’’.

12 SEC. 102. USE OF CONTRIBUTIONS TO PAY CAMPAIGN

13 DEBT.

14 Section 315 of the Federal Election Campaign Act

15 of 1971 (2 U.S.C. 441a) (as amended by section 101) is

16 amended by adding at the end the following:

17 ‘‘(j) LIMIT ON USE OF CONTRIBUTIONS TO PAY

18 CAMPAIGN DEBT.—

19 ‘‘(1) TIME TO ACCEPT CONTRIBUTIONS.—Be20 ginning on the date that is 90 days after the date

21 of a general or special election, a candidate for elec22 tion to the Senate or House of Representatives and

23 the candidate’s authorized committees shall not ac24 cept a contribution that is to be used to pay a debt,
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1 loan, or other cost associated with the election cycle

2 of such election.

3 ‘‘(2) PERSONAL OBLIGATION.—A debt, loan, or

4 other cost associated with an election cycle that is

5 not paid in full on the date that is 90 days after the

6 date of the general or special election shall be as7 sumed as a personal obligation by the candidate.’’.

8 SEC. 103. MODIFICATION OF POLITICAL PARTY CONTRIBU9 TION LIMITS TO CANDIDATES WHEN CAN10 DIDATES MAKE EXPENDITURES FROM PER11 SONAL FUNDS.

12 (a) IN GENERAL.—Section 315 of the Federal Elec13 tion Campaign Act of 1971 (2 U.S.C. 441a) (as amended

14 by section 102) is amended by adding at the end the fol15 lowing:

16 ‘‘(k) CONTRIBUTION LIMITS FOR POLITICAL PARTY

17 COMMITTEES IN RESPONSE TO CANDIDATE EXPENDI18 TURES OF PERSONAL FUNDS.—

19 ‘‘(1) IN GENERAL.—In the case of a general

20 election for the Senate or House of Representatives,

21 a political party committee may make contributions

22 to a candidate without regard to any limitation

23 under subsections (a) and (d) until such time as the

24 aggregate amount of contributions is equal to or

25 greater than the applicable limit.
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1 ‘‘(2) APPLICABLE LIMIT.—The applicable limit

2 under paragraph (1), with respect to a candidate,

3 shall be the greatest aggregate amount of expendi4 tures that an opponent of the candidate in the same

5 election and the opponent’s authorized committee

6 make using the personal funds of the opponent or

7 proceeds of indebtedness incurred by the opponent

8 (including contributions by the opponent to the op9 ponent’s authorized committee) in excess of 2 times

10 the limit under subsection (a)(1)(A) with respect to

11 a general election.

12 ‘‘(3) DEFINITION OF POLITICAL PARTY COM13 MITTEE.—For purposes of this subsection, the term

14 ‘political party committee’ means a political commit15 tee that is a national, State, district, or local com16 mittee of a political party (including any subordinate

17 committee).’’.

18 (b) NOTIFICATION OF EXPENDITURES FROM PER19 SONAL FUNDS.—Section 304(a)(6) of the Federal Elec20 tion Campaign Act of 1971 (2 U.S.C. 434(a)(6)) is

21 amended—

22 (1) by redesignating subparagraph (B) as sub23 paragraph (C); and

24 (2) by inserting after subparagraph (A) the fol25 lowing:
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1 ‘‘(B)(i) The principal campaign committee of a can2 didate for nomination to, or election to, the Senate or

3 House of Representatives shall notify the Commission of

4 the aggregate amount expenditures made using personal

5 funds of the candidate or proceeds of indebtedness in6 curred by the candidate (including contributions by the

7 candidate to the candidate’s authorized committee) in ex8 cess of an amount equal to 2 times the limit under section

9 301(a)(1)(A).

10 ‘‘(ii) The notification under clause (i) shall—

11 ‘‘(I) be submitted to the Commission not later

12 than 24 hours after the expenditure that is the sub13 ject of the notification is made;

14 ‘‘(II) include the name of the candidate, the of15 fice sought by the candidate, and the date and

16 amount of the expenditure; and

17 ‘‘(III) include the aggregate amount of expendi18 tures from personal funds that have been made with

19 respect to that election as of the date of the expendi20 ture that is the subject of the notification.’’.

21 SEC. 104. MODIFICATION OF CONTRIBUTION LIMITS.

22 Section 315 of the Federal Election Campaign Act

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

24 (1) in subsection (a)—
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1 (A) in paragraph (1)(A), by striking

2 ‘‘$1,000’’ and inserting ‘‘$2,500’’; and

3 (B) in paragraph (2)(A), by striking

4 ‘‘$5,000’’ and inserting ‘‘$2,500’’; and

5 (2) in subsection (c)—

6 (A) in paragraph (1), by striking ‘‘sub7 section (b) and subsection (d)’’ and inserting

8 ‘‘paragraphs (1)(A) and (2)(A) of subsection

9 (a) and subsections (b) and (d)’’; and

10 (B) in paragraph (2)(A), by striking

11 ‘‘means the calendar year 1974.’’ and inserting

12 ‘‘means—

13 ‘‘(i) for purposes of subsections (b) and

14 (d), calendar year 1974; and

15 ‘‘(ii) for purposes of paragraphs (1)(A)

16 and (2)(A) of subsection (a), calendar year

17 1997.’’.

18 TITLE II—DISCLOSURE

19 REQUIREMENTS

20 SEC. 201. DISCLOSURE OF CERTAIN EXPENDITURES FOR

21 ISSUE ADVOCACY.

22 (a) ISSUE ADVOCACY.—Section 304 of the Federal

23 Election Campaign Act of 1971 (2 U.S.C. 434) is amend24 ed by adding at the end the following:

25 ‘‘(d) ISSUE ADVOCACY.—
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1 ‘‘(1) REQUIRED REPORT.—A person (other

2 than a candidate or a candidate’s authorized com3 mittee) who makes a payment in an aggregate

4 amount equal to or greater than $1,000 for a com5 munication containing issue advocacy shall submit a

6 statement to the Commission (not later than 24

7 hours after making the payment) describing the

8 amount spent, the type of communication involved,

9 and the market or area in which the communication

10 was disseminated.

11 ‘‘(2) DEFINITION.—

12 ‘‘(A) IN GENERAL.—In this subsection, the

13 term ‘a communication containing issue advo14 cacy’ means a communication that—

15 ‘‘(i) uses the name or likeness of an

16 individual holding Federal office or a can17 didate for election to a Federal office;

18 ‘‘(ii) mentions a national political

19 party; or

20 ‘‘(iii) uses the terms ‘the President’,

21 ‘Congress’, ‘Senate’, or ‘House of Rep22 resentatives’ in reference to an individual

23 holding Federal office.

24 ‘‘(B) EXCEPTION.—The term shall not in25 clude a payment which would be—
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1 ‘‘(i) described in clause (i), (iii), or (v)

2 of section 301(9)(B) if the payment were

3 an expenditure under such section; or

4 ‘‘(ii) an independent expenditure.’’.

5 (b) INCREASED REPORTING FOR INDEPENDENT EX6 PENDITURES.—Section 304(c) of the Federal Election

7 Campaign Act of 1971 (2 U.S.C. 434(c)) is amended in

8 the matter following paragraph (2)(C), by striking ‘‘after

9 the 20th day, but more than 24 hours, before any elec10 tion’’ and inserting ‘‘during a calendar year’’.

11 SEC. 202. DISCLOSURE OF CERTAIN NON-FEDERAL FINAN12 CIAL ACTIVITIES OF NATIONAL POLITICAL

13 PARTIES.

14 Section 304(b)(4) of the Federal Election Campaign

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

16 (1) in subparagraph (H)(v), by striking ‘‘and’’

17 at the end;

18 (2) in subparagraph (I), by inserting ‘‘and’’

19 after the semicolon; and

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

21 ‘‘(J) for a national political committee of a po22 litical party, disbursements made by the committee

23 in an aggregate amount greater than $1,000, during

24 a calendar year, in connection with a political activ25 ity (as defined in section 316(c)(3));’’.
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1 SEC. 203. POLITICAL ACTIVITIES OF CORPORATIONS AND

2 LABOR ORGANIZATIONS.

3 (a) DISCLOSURE TO EMPLOYEES AND SHAREHOLD4 ERS REGARDING POLITICAL ACTIVITIES.—Section 316 of

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

6 441b) is amended by adding at the end the following:

7 ‘‘(c) AUTHORIZATION REQUIRED FOR POLITICAL AC8 TIVITY.—

9 ‘‘(1) IN GENERAL.—Except with the separate,

10 written, voluntary authorization of each individual, a

11 national bank, corporation or labor organization

12 shall not—

13 ‘‘(A) in the case of a national bank or cor14 poration described in this section, collect from

15 or assess its stockholders or employees any

16 dues, initiation fee, or other payment as a con17 dition of employment or membership if any part

18 of the dues, fee, or payment will be used for a

19 political activity in which the national bank or

20 corporation is engaged; and

21 ‘‘(B) in the case of a labor organization

22 described in this section, collect from or assess

23 its members or nonmembers any dues, initiation

24 fee, or other payment if any part of the dues,

25 fee, or payment will be used for a political ac26 tivity.
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1 ‘‘(2) EFFECT OF AUTHORIZATION.—An author2 ization described in paragraph (1) shall remain in

3 effect until revoked and may be revoked at any time.

4 ‘‘(3) DEFINITION OF POLITICAL ACTIVITY.—

5 For purposes of this subsection, the term ‘political

6 activity’ includes a communication or other activity

7 that involves carrying on propaganda, attempting to

8 influence legislation, or participating or intervening

9 in a political party or political campaign for a Fed10 eral office.

11 ‘‘(d) DISCLOSURE OF DISBURSEMENTS FOR POLITI12 CAL ACTIVITIES.—

13 ‘‘(1) CORPORATIONS AND NATIONAL BANKS.—A

14 corporation or national bank shall submit an annual

15 written report to shareholders stating the amount of

16 each disbursement made for political activities or

17 that otherwise influences Federal elections.

18 ‘‘(2) LABOR ORGANIZATIONS.—A labor organi19 zation shall submit an annual written report to dues

20 paying members and nonmembers stating the

21 amount of each disbursement made for political ac22 tivities or that otherwise influences Federal elec23 tions, including contributions and expenditures.’’.

24 (b) DISCLOSURE TO THE COMMISSION OF CERTAIN

25 PERMISSIBLE ACTIVITIES BY LABOR ORGANIZATIONS
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1 AND CORPORATIONS.—Section 304 of the Federal Elec2 tion Campaign Act of 1971 (2 U.S.C. 434) (as amended

3 in section 201) is amended by adding at the end the fol4 lowing:

5 ‘‘(e) REQUIRED STATEMENT OF CORPORATIONS AND

6 LABOR ORGANIZATIONS.—Each corporation, national

7 bank, or labor organization who makes an aggregate

8 amount of disbursements during a year in an amount

9 equal to or greater than $1,000 for any activity described

10 in subparagraph (A), (B), or (C) of section 316(a)(2) shall

11 submit a statement to the Commission (not later than 24

12 hours after making the payments) describing the amount

13 spent and the activity involved.’’.

14 TITLE III—REPORTING

15 REQUIREMENTS

16 SEC. 301. TIME FOR CANDIDATES TO FILE REPORTS.

17 Section 304(a)(2)(A) of the Federal Election Cam18 paign Act of 1971 (2 U.S.C. 434(a)(2)(A)) is amended—

19 (1) in clause (ii), by striking ‘‘and’’ following

20 the semicolon;

21 (2) in clause (iii), by striking ‘‘; and’’; and

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

23 ‘‘(v) monthly reports during the months of

24 July, August, September, and October, that
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1 shall be filed no later than the final day of the

2 reporting month; and

3 ‘‘(vi) 24-hour reports, beginning on the

4 day that is 15 days preceding an election, that

5 shall be filed no later than the end of each 24-

6 hour period; and’’.

7 SEC. 302. CONTRIBUTOR INFORMATION REQUIRED FOR

8 CONTRIBUTIONS IN ANY AMOUNT.

9 (a) SECTION 302.—Section 302 of the Federal Elec10 tion Campaign Act of 1971 (2 U.S.C. 432) is amended—

11 (1) in subsection (b)—

12 (A) in paragraph (1), by striking ‘‘, and if

13 the amount’’ and all that follows through the

14 period and inserting: ‘‘and the following infor15 mation:

16 ‘‘(A) The identification of the contributor.

17 ‘‘(B) The date of the receipt of the contribu18 tion.’’; and

19 (B) in paragraph (2)—

20 (i) in subsection (A), by striking

21 ‘‘such contribution’’ and inserting ‘‘the

22 contribution and the identification of the

23 contributor’’; and

24 (ii) in subsection (B), by striking

25 ‘‘such contribution’’ and all that follows
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1 through the period and inserting ‘‘, no

2 later than 10 days after receiving the con3 tribution, the contribution and the follow4 ing information:

5 ‘‘(i) The identification of the contributor.

6 ‘‘(ii) The date of the receipt of the con7 tribution.’’;

8 (2) in subsection (c)—

9 (A) by striking paragraph (2);

10 (B) in paragraph (3), by striking ‘‘or con11 tributions aggregating more than $200 during

12 any calendar year’’; and

13 (C) by redesignating paragraphs (3), (4),

14 and (5) as paragraphs (2), (3), and (4), respec15 tively; and

16 (3) in subsection (h)(2), by striking ‘‘(c)(5)’’

17 and inserting ‘‘(c)(4)’’.

18 (b) SECTION 304.—Section 304(b)(3)(A) of the Fed19 eral Election Campaign Act of 1971 (2 U.S.C.

20 434(b)(3)(A)) is amended by striking ‘‘whose contribu21 tions’’ and all that follows through ‘‘so elect,’’.
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1 SEC. 303. PROHIBITION OF DEPOSITING CONTRIBUTIONS

2 WITH INCOMPLETE CONTRIBUTOR INFORMA3 TION.

4 Section 302 of Federal Election Campaign Act of

5 1971 (2 U.S.C. 432) is amended by adding at the end

6 the following:

7 ‘‘(j) DEPOSIT OF CONTRIBUTIONS.—The treasurer of

8 a candidate’s authorized committee shall not deposit or

9 otherwise negotiate a contribution unless the information

10 required by this section is complete.’’.

11 SEC. 304. FILING OF REPORTS USING COMPUTERS AND

12 FACSIMILE MACHINES; REQUIRED ELEC13 TRONIC DISCLOSURE BY COMMISSION.

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

15 of 1971 (2 U.S.C. 434(a)) is amended by striking para16 graph (11) and inserting the following:

17 ‘‘(11) ELECTRONIC FILING.—

18 ‘‘(A) IN GENERAL.—The Commission shall

19 issue a regulation to permit a report, designation, or

20 statement required to be filed with the Commission

21 under this Act to be filed in electronic form acces22 sible by computer or through the use of a facsimile

23 machine or other method of transmission that cor24 responds with the method of record-keeping or

25 transmission used by persons required to file under

26 this Act.
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1 ‘‘(B) INTERNET ACCESS TO CAMPAIGN FINANCE

2 INFORMATION.—The Commission shall make the in3 formation contained in a designation, statement, re4 port, or notification filed with the Commission under

5 this section accessible to the public on the Internet

6 and publicly available at the offices of the Commis7 sion not later than 24 hours after the designation,

8 statement, report, or notification is received by the

9 Commission.’’.

10 TITLE IV—MISCELLANEOUS

11 SEC. 401. BAN ON MASS MAILINGS.

12 (a) IN GENERAL.—Section 3210(a)(6) of title 39,

13 United States Code, is amended by striking subparagraph

14 (A) and inserting the following:

15 ‘‘(A) A Member of, or Member-elect to, Congress may

16 not mail any mass mailing as franked mail.’’.

17 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

18 (1) Section 3210 of title 39, United States

19 Code, is amended—

20 (A) in subsection (a)—

21 (i) in paragraph (3)—

22 (I) in subparagraph (G), by

23 striking ‘‘, including general mass

24 mailings,’’;
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1 (II) in subparagraph (I), by

2 striking ‘‘or other general mass mail3 ing’’; and

4 (III) in subparagraph (J), by

5 striking ‘‘or other general mass mail6 ing’’;

7 (ii) in paragraph (6)—

8 (I) by striking subparagraphs

9 (B), (C), and (F);

10 (II) by striking the second sen11 tence of subparagraph (D); and

12 (III) by redesignating subpara13 graphs (D) and (E) as subparagraphs

14 (B) and (C), respectively; and

15 (iii) by striking paragraph (7);

16 (B) in subsection (c), by striking ‘‘sub17 section (a) (4) and (5)’’ and inserting ‘‘para18 graphs (4), (5), and (6) of subsection (a)’’;

19 (C) by striking subsection (f); and

20 (D) by redesignating subsection (g) as sub21 section (f).

22 (2) Section 316 of the Legislative Branch Ap23 propriations Act, 1990 (39 U.S.C. 3210 note) is

24 amended by striking subsection (a).
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1 (3) Section 311 of the Legislative Branch Ap2 propriations Act, 1991 (2 U.S.C. 59e) is amended

3 by striking subsection (f) and inserting the follow4 ing:

5 ‘‘(f) [Reserved].’’.

6 (c) EFFECTIVE DATE.—The amendments made by

7 this section shall take effect at the beginning of the first

8 Congress that begins after December 31, 1998.

9 SEC. 402. EFFECTIVE DATE.

10 Except as otherwise provided in this Act, this Act and

11 the amendments made by this Act shall apply with respect

12 to elections occurring, payments made, and filing periods

13 beginning after December 31, 1998.

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