II

105TH CONGRESS

2D SESSION S. 1664

To reform Federal election campaigns.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 23, 1998

Mr. CLELAND introduced the following bill; which was read twice and referred

to the Committee on Rules and Administration

A BILL

To reform Federal election campaigns.

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 ‘‘Federal Election Enforcement and Disclosure Reform

6 Act’’.

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

8 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—FEDERAL ELECTION COMMISSION REFORM

Sec. 101. Membership; length of terms.

Sec. 102. Mandatory electronic filing.

Sec. 103. Independent litigation authority.

Sec. 104. Civil action.
2

•S 1664 IS

Sec. 105. Civil penalty for certain reporting violations.

Sec. 106. Filing of Senate reports with the Federal Election Commission.

Sec. 107. Advisory committee.

Sec. 108. Funding of the Commission.

Sec. 109. Audits.

Sec. 110. Authority to seek injunction.

Sec. 111. Increase in penalty for knowing and willful violations.

Sec. 112. Expedited procedures.

TITLE II—ENHANCED CAMPAIGN FINANCE DISCLOSURE

Sec. 201. Deposit of certain contributions in escrow account.

Sec. 202. Required contributor certification.

Sec. 203. Reporting requirements.

1 TITLE I—FEDERAL ELECTION

2 COMMISSION REFORM

3 SEC. 101. MEMBERSHIP; LENGTH OF TERMS.

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

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

6 amended—

7 (1) by striking paragraph (1) and inserting the

8 following:

9 ‘‘(1) There is established a commission to be

10 known as the Federal Election Commission com11 posed of 7 members appointed by the President, by

12 and with the advice and consent of the Senate, with

13 the following qualifications:

14 ‘‘(A) The members appointed under this

15 paragraph shall consist of—

16 ‘‘(i) 2 individuals affiliated with the

17 Republican party;

18 ‘‘(ii) 2 individuals affiliated with the

19 Democratic party;
3

•S 1664 IS

1 ‘‘(iii) 1 individual affiliated with a po2 litical party other than the Republican or

3 Democratic Party that received at least 3

4 percent of the national popular vote in the

5 most recent Federal election prior to the

6 appointment (but if no such party exists,

7 then a political party other than the Re8 publican or Democratic party); and

9 ‘‘(iv) 2 individuals appointed by the

10 President from nominees recommended

11 under subparagraph (D).

12 ‘‘(B) The individuals described in clauses

13 (iii) and (iv) of subparagraph (A) shall be indi14 viduals who have, during the time period begin15 ning on the date that is 5 years before the date

16 of the appointment and ending on the date of

17 the appointment—

18 ‘‘(i) not held elective office as a mem19 ber of the Democratic or Republican politi20 cal party;

21 ‘‘(ii) not received any wages from the

22 Democratic or Republican political party;

23 and

24 ‘‘(iii) not provided substantial volun25 teer services or made any substantial dona-
4

•S 1664 IS

1 tion to the Democratic or Republican polit2 ical party or to a public officeholder or

3 candidate for public office who is associ4 ated with the Democratic or Republican

5 political party.

6 ‘‘(C) Individuals appointed under this

7 paragraph shall have relevant knowledge for

8 purposes of appointment to the Commission in9 cluding—

10 ‘‘(i) a higher education degree in gov11 ernment, politics, or public or business ad12 ministration or 4 years of comparable work

13 experience in the field of government or

14 politics; and

15 ‘‘(ii) 2 years or more of work experi16 ence in relation to Federal election law or

17 other Federal electoral issues, or 4 years

18 or more of such experience at the State

19 level.

20 ‘‘(D) The Supreme Court shall recommend

21 10 nominees from which the President shall ap22 point 2 members of the Commission.’’;

23 (2) by striking paragraph (2)(A) and inserting

24 the following:
5

•S 1664 IS

1 ‘‘(2)(A) A member of the Commission shall

2 serve for a single term of 7 years.’’; and

3 (3) by striking paragraph (5) and inserting the

4 following:

5 ‘‘(5) The Commission shall elect a chairman

6 from among the members described in paragraph

7 (1)(D) and a vice chairman from among the other

8 members of the Commission. The vice chairman

9 shall act as chairman in the absence or disability of

10 the chairman or in the event of a vacancy in the offi11 cer.’’.

12 (b) CONFORMING AMENDMENTS.—Section 306(a) of

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

14 437c(a)) is amended by striking ‘‘(other than the Sec15 retary of the Senate and the Clerk of the House of Rep16 resentatives)’’ in paragraphs (3) and (4).

17 (c) EFFECTIVE DATE.—

18 (1) IN GENERAL.—The term of a member of

19 the Federal Election Commission appointed under

20 section 306(a)(1)(A) of the Federal Election Cam21 paign Act of 1971 shall begin on or after—

22 (A) in the case of 1 individual appointed

23 under clause (iii) and 1 individual appointed

24 under clause (iv), April 30, 1999;
6

•S 1664 IS

1 (B) in the case of 1 individual appointed

2 under clause (i) and 1 individual appointed

3 under clause (ii), April 30, 2001; and

4 (C) in the case of 1 individual appointed

5 under clause (i), 1 individual appointed under

6 clause (ii), and 1 individual appointed under

7 clause (iv), April 30, 2003.

8 (2) CURRENT MEMBERS.—Any member of the

9 Federal Election Commission serving a term on the

10 date of enactment (or any successor of such term)

11 shall continue to serve until the expiration of the

12 term.

13 SEC. 102. MANDATORY ELECTRONIC FILING.

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 pro19 mulgate a regulation under which a person required

20 to file a designation, statement, or report under this

21 Act, in addition to the current filing requirements—

22 ‘‘(i) is required to maintain and file each

23 designation, statement, or report in electronic

24 form accessible by computer if the person has,

25 or expects to have, aggregate contributions or
7

•S 1664 IS

1 aggregate expenditures in excess of a threshold

2 amount determined by the Commission; and

3 ‘‘(ii) may maintain and file a designation,

4 statement, or report in electronic form acces5 sible by computer if not required to do so under

6 the regulation promulgated under clause (i).

7 ‘‘(B) VERIFICATION OF FILINGS.—

8 ‘‘(i) REGULATION.—The Commission shall

9 promulgate a regulation to provide a method

10 for verifying a designation, statement, report,

11 or notification required to be filed under this

12 paragraph (other than requiring a signature on

13 the document being filed).

14 ‘‘(ii) TREATMENT OF VERIFICATION.—A

15 document verified by the method promulgated

16 under clause (i) shall be treated for all purposes

17 in the same manner as a document verified by

18 a signature.’’.

19 SEC. 103. INDEPENDENT LITIGATION AUTHORITY.

20 Section 306(f) of the Federal Election Campaign Act

21 of 1971 (2 U.S.C. 437c(f)) is amended by striking para22 graph (4) and inserting the following:

23 ‘‘(4) INDEPENDENT LITIGATING AUTHORITY.—

24 ‘‘(A) IN GENERAL.—Notwithstanding para25 graph (2) or any other provision of law, the
8

•S 1664 IS

1 Commission is authorized to appear on its own

2 behalf in any action related to the exercise of

3 its statutory duties or powers in any court as

4 either a party or as amicus curiae, either—

5 ‘‘(i) by attorneys employed in its of6 fice; or

7 ‘‘(ii) by counsel whom the Commission

8 may appoint, on a temporary basis as may

9 be necessary for such purpose, without re10 gard to the provisions of title 5, United

11 States Code, governing appointments in

12 the competitive service, and whose com13 pensation it may fix without regard to the

14 provisions of chapter 51 and subchapter

15 III of chapter 53 of such title, and whose

16 compensation shall be paid out of any

17 funds otherwise available to pay the com18 pensation of employees of the Commission.

19 ‘‘(B) SUPREME COURT.—The authority

20 granted under subparagraph (A) includes the

21 power to appeal from, and petition the Supreme

22 Court for certiorari to review, judgments or de23 crees entered with respect to actions in which

24 the Commission appears pursuant to the au25 thority provided in this section.’’.
9

•S 1664 IS

1 SEC. 104. CIVIL ACTION.

2 Section 309 of the Federal Election Campaign Act

3 of 1971 (2 U.S.C. 437g) is amended by adding at the end

4 the following:

5 ‘‘(e) CIVIL ACTION.—

6 ‘‘(1) AUTHORITY TO BRING CIVIL ACTION.—If

7 the Commission does not act to investigate or dis8 miss a complaint within 120 days after the com9 plaint is filed, the person who filed the complaint

10 may commence a civil action against the Commission

11 in United States district court for injunctive relief.

12 ‘‘(2) ATTORNEY’S FEES.—The court may award

13 the costs of the litigation (including reasonable at14 torney’s fees) to a plaintiff who substantially pre15 vails in the civil action.’’.

16 SEC. 105. CIVIL PENALTY FOR CERTAIN REPORTING VIOLA17 TIONS.

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

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

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

21 ‘‘(13) PENALTY FOR LATE FILING.—

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

23 establish a schedule of monetary penalties (not

24 to exceed $5,000 for each violation) that may

25 be imposed by the staff director of the Commis-
10

•S 1664 IS

1 sion for a failure to meet the time requirements

2 for filing under section 304.

3 ‘‘(B) PUBLICATION OF SCHEDULE.—The

4 Commission shall publish the schedule under

5 subparagraph (A) in the Federal Register at

6 the beginning of every second calendar year.

7 ‘‘(C) REQUIRED FILING OF LATE RE8 PORT.—In addition to the assessment of a pen9 alty under subparagraph (A), the Commission

10 may require a report that has not been filed

11 within the time requirements of section 304 to

12 be filed by a specific date.

13 ‘‘(D) PROCEDURE FOR ASSESSING PEN14 ALTIES AND FILING DEADLINES.—

15 ‘‘(i) IN GENERAL.—Penalties and fil16 ing requirements imposed under this para17 graph shall not be subject to paragraph

18 (1), (2), (3), (4), (5) or (12).

19 ‘‘(ii) DETERMINATION.—In the as20 sessment of a penalty under this para21 graph, the staff director shall consider the

22 following factors:

23 ‘‘(I) The timing of the required

24 filing of the report with respect to an

25 election and the damage of not having
11

•S 1664 IS

1 such report available to the Commis2 sion.

3 ‘‘(II) The filing and compliance

4 record of the political committee in5 volved.

6 ‘‘(III) The amount of the con7 tribution or expenditure that is the

8 subject of the penalty.

9 ‘‘(E) APPEALS.—

10 ‘‘(i) IN GENERAL.—A political com11 mittee shall have 30 days after the imposi12 tion of a penalty or filing requirement

13 under this paragraph to file an appeal with

14 the Commission.

15 ‘‘(ii) COMMISSION DETERMINATION.—

16 Within 30 days after receiving an appeal

17 under clause (i), the Commission shall

18 make a determination that is a final agen19 cy action.

20 ‘‘(iii) COURT OF APPEALS.—Not later

21 than the date that is 30 days after the

22 date of a final agency action under clause

23 (ii), a committee may appeal such action to

24 the court of appeals, and the judgment of

25 the court of appeals affirming or setting
12

•S 1664 IS

1 aside the action of the Commission shall be

2 final, subject to review by the Supreme

3 Court of the United States upon certiorari

4 or certification as provided in section 1254

5 of title 28, United States Code.

6 ‘‘(F) COMPLETE BAR.—A penalty imposed

7 under this paragraph by the Commission, un8 less not satisfied, is a complete bar to any fur9 ther action by the Commission, including the

10 bringing of a civil proceeding under paragraph

11 (6)(A).’’;

12 (2) in paragraph (5)(D)—

13 (A) by inserting after the first sentence the

14 following: ‘‘In any case in which a penalty or

15 filing requirement imposed on a political com16 mittee or treasurer under paragraph (13) has

17 not been satisfied, the Commission may insti18 tute a civil action for enforcement under para19 graph 6(A).’’; and

20 (B) by inserting before the period at the

21 end of the last sentence ‘‘or has failed to pay

22 a penalty or meet a filing requirement imposed

23 under paragraph (13)’’; and

24 (3) in paragraph (6)(A), by striking ‘‘paragraph

25 (4)(A)’’ and inserting ‘‘paragraph (4)(A) or (13)’’.
13

•S 1664 IS

1 SEC. 106. FILING OF SENATE REPORTS WITH THE FEDERAL

2 ELECTION COMMISSION.

3 (a) SECTION 302 AMENDMENT.—Section 302 of the

4 Federal Election Campaign Act of 1971 (2 U.S.C. 432)

5 is amended by striking subsection (g) and inserting the

6 following:

7 ‘‘(g) PLACE OF FILING.—All designations, state8 ments, and reports required to be filed under this Act shall

9 be filed with the Commission.’’.

10 (b) CONFORMING AMENDMENTS.—Title III of the

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

12 et seq.) is amended—

13 (1) in section 304—

14 (A) in subsection (a)(6)(A), by striking

15 ‘‘Secretary or the Commission’’ through ‘‘as ap16 propriate’’ and inserting ‘‘Commission and Sec17 retary of State’’; and

18 (B) in the third sentence of subsection

19 (c)(2), by striking ‘‘the Secretary or’’; and

20 (2) in section 311(a)(4), by striking ‘‘Secretary

21 or the’’.

22 SEC. 107. ADVISORY COMMITTEE.

23 (a) ESTABLISHMENT.—There is established an advi24 sory committee to be known as the ‘‘Advisory Committee

25 on Federal Campaign Reform’’ (referred to in this section

26 as the ‘‘Committee’’).
14

•S 1664 IS

1 (b) DUTIES OF THE COMMITTEE.—The Committee

2 shall study the laws (including regulations) that affect how

3 election campaigns for Federal office are conducted and

4 the implementation of such laws and may make rec5 ommendations for change. The Committee may hold such

6 hearings, sit and act at such time and places, take such

7 testimony, and receive such evidence as the Committee

8 considers advisable to carry out its responsibilities under

9 this section.

10 (c) MEMBERSHIP.—

11 (1) COMPOSITION.—The Committee shall be

12 composed of 9 members who are private citizens and

13 are appointed as follows:

14 (A) One shall be appointed by the Presi15 dent.

16 (B) One shall be appointed by the majority

17 leader of the Senate.

18 (C) One shall be appointed by the Speaker

19 of the House of Representatives.

20 (D) One shall be appointed by the majority

21 leader of the House of Representatives.

22 (E) One shall be appointed by the minority

23 leader of the Senate.

24 (F) One shall be appointed by the minority

25 leader of the House of Representatives.
15

•S 1664 IS

1 (G) One shall be appointed by the Su2 preme Court.

3 (H) One shall be appointed by the national

4 political party of which the candidate for the of5 fice of President in the last general election re6 ceived the third largest number of popular

7 votes.

8 (I) One shall be appointed by the Amer9 ican Political Science Association.

10 The Committee shall select a chair from among its

11 members.

12 (2) POLITICAL ACTIVITY.—The individuals de13 scribed in subparagraphs (G), (H), and (I) of para14 graph (1) shall be individuals who have, during the

15 time period beginning on the date that is 5 years be16 fore the date of the appointment and ending on the

17 date of the appointment—

18 (A) not held elective office as a member of

19 the Democratic or Republican political party;

20 (B) not received any wages from the

21 Democratic or Republican political party; and

22 (C) not provided substantial volunteer

23 services or made any substantial contribution to

24 the Democratic or Republican political party or

25 to a public officeholder or candidate for public
16

•S 1664 IS

1 office who is associated with the Democratic or

2 Republican political party.

3 (3) RELEVANT KNOWLEDGE.—Individuals ap4 pointed under this subsection shall have relevant

5 knowledge for purposes of appointment to the Com6 mittee including—

7 (A) a higher education degree in govern8 ment, politics, or public or business administra9 tion or 4 years of comparable work experience

10 in the field of government or politics; and

11 (B) 2 years or more of work experience in

12 relation to Federal election law or other Federal

13 electoral issues, or 4 years or more of such ex14 perience at the State level.

15 (4) TERMS.—A member of the Committee may

16 serve for not more than 2 terms of 4 years in length.

17 (5) VACANCIES.—A vacancy in the Committee

18 shall be filled in the manner in which the original

19 appointment was made.

20 (6) COMPENSATION.—Each member of the

21 Committee shall each be entitled to receive the daily

22 equivalent of the annual rate of basic pay in effect

23 for level V of the Executive Schedule under section

24 5316 of title 5, United States Code, for each day
17

•S 1664 IS

1 during which the member is engaged in the actual

2 performance of the duties of the Committee.

3 (7) QUORUM.—5 members of the Committee

4 shall constitute a quorum, and any decision of the

5 Committee shall require the affirmative vote of 5

6 members.

7 (8) MEETINGS.—The Committee shall meet at

8 the call of the chair or at the request of 5 members

9 of the Committee.

10 (d) STAFF OF COMMITTEE; SERVICES.—Subject to

11 rules adopted by the Committee, the chair, without regard

12 to the provisions of title 5, United States Code, governing

13 appointments in the competitive service and without re14 gard to the provisions of chapter 51 and subchapter III

15 of chapter 53 of that title relating to classifications and

16 General Schedule pay rates, may appoint such staff per17 sonnel as the chair considers necessary and procure tem18 porary and intermittent services to the same extent as is

19 authorized by section 3109(b) of title 5, United States

20 Code.

21 (e) RECOMMENDATION; FAST TRACK PROCE22 DURES.—

23 (1) REPORT.—The Committee shall submit a

24 report to Congress on or before April 15, 1999, and

25 every 2 years thereafter.
18

•S 1664 IS

1 (2) RECOMMENDATIONS.—

2 (A) IN GENERAL.—The report under para3 graph (1) shall include any recommendations

4 for changes in the laws (including regulations)

5 governing the conduct of Federal campaigns,

6 including any changes in the rules of the Senate

7 or the House of Representatives, to which 5 or

8 more members of the Committee agree.

9 (B) FORM.—Such report shall include a

10 draft of any proposed legislation and include

11 both the majority and the minority views with

12 regard to any recommendation.

13 (3) CONSIDERATION BY CONGRESS.—

14 (A) RULES OF HOUSE OF REPRESENTA15 TIVES AND SENATE.—This paragraph is en16 acted by the Congress—

17 (i) as an exercise of the rulemaking

18 power of the House of Representatives and

19 of the Senate, respectively, and as such it

20 shall be considered as part of the rules of

21 each House, respectively, or of the House

22 to which it specifically applies, and the

23 rules shall supersede other rules only to

24 the extent that they are inconsistent; and
19

•S 1664 IS

1 (ii) with full recognition of the con2 stitutional right of either House to change

3 the rules (so far as the rules relate to that

4 House) at any time, in the same manner,

5 and to the same extent as in the case of

6 any other rule of that House.

7 (B) DEFINITION.—In this paragraph, the

8 term ‘‘Federal election bill’’ means only a bill of

9 either House of Congress that is introduced as

10 provided in subparagraph (C) to carry out the

11 recommendations of the Committee as set forth

12 in the draft legislation submitted under para13 graph (1).

14 (C) INTRODUCTION AND REFERRAL.—Not

15 later than 3 days after the Committee submits

16 draft legislation under paragraph (1), a Federal

17 election bill shall be introduced (by request) in

18 the House of Representatives by the Majority

19 Leader of the House, shall be introduced (by

20 request) in the Senate by the Majority Leader

21 of the Senate, and shall be referred to the ap22 propriate committee.

23 (D) AMENDMENTS PROHIBITED.—No

24 amendment to a Federal election bill shall be in

25 order in either the House of Representatives or
20

•S 1664 IS

1 the Senate, no motion to suspend the applica2 tion of this subsection shall be in order in either

3 House, and it shall not be in order in either

4 House to entertain a request to suspend the ap5 plication of this subsection by unanimous con6 sent.

7 (E) PERIOD FOR COMMITTEE AND FLOOR

8 CONSIDERATION.—

9 (i) AUTOMATIC DISCHARGE.—If the

10 committee of either House to which a Fed11 eral election bill is referred has not re12 ported the bill by the close of the 30th day

13 after introduction, the committee shall be

14 automatically discharged from further con15 sideration of the bill, and the bill shall be

16 placed on the appropriate calendar.

17 (ii) PROCEDURE WHEN THERE IS

18 PRIOR PASSAGE OF BILL BY OTHER

19 HOUSE.—If, prior to the passage by 1

20 House of a Federal election bill of that

21 House, that House receives the same Fed22 eral election bill from the other House—

23 (I) the procedure in that House

24 shall be the same as if no Federal
21

•S 1664 IS

1 election bill had been received from

2 the other House; but

3 (II) the vote on final passage

4 shall be on the Federal election bill of

5 the other House.

6 (iii) COMPUTATION.—For purposes of

7 clause (i), in computing a number of days

8 in either House, there shall be excluded the

9 days on which that House is not in session

10 because of an adjournment of more than 3

11 days to a day certain or an adjournment of

12 the Congress sine die.

13 (F) FLOOR CONSIDERATION IN THE

14 HOUSE.—

15 (i) MOTION TO PROCEED TO CON16 SIDER.—

17 (I) PRIVILEGE.—A motion in the

18 House of Representatives to proceed

19 to the consideration of a Federal elec20 tion bill shall be highly privileged and

21 not debatable, except that a motion to

22 proceed to consider may be made only

23 on the second legislative day after the

24 calendar day on which the Member

25 making the motion announces to the
22

•S 1664 IS

1 House the Member’s intention to do

2 so.

3 (II) NO AMENDMENT OR MOTION

4 TO RECONSIDER.—An amendment to

5 the motion shall not be in order, and

6 it shall not be in order to move to re7 consider the vote by which the motion

8 is agreed to or disagreed to.

9 (ii) DEBATE.—

10 (I) TIME.—Consideration of a

11 Federal election bill in the House of

12 Representatives shall be in the House,

13 with debate limited to not more than

14 10 hours, which shall be divided

15 equally between the proponents and

16 opponents of the bill.

17 (II) NO INTERVENING MOTION.—

18 The previous question on the Federal

19 election bill shall be considered as or20 dered to final passage without inter21 vening motion.

22 (III) MOTION TO RECONSIDER

23 NOT IN ORDER.—It shall not be in

24 order to move to reconsider the vote
23

•S 1664 IS

1 by which a Federal election bill is

2 agreed to or disagreed to.

3 (iii) APPEALS FROM DECISION OF

4 CHAIR.—All appeals from the decisions of

5 the Chair relating to the application of the

6 rules of the House of Representatives to

7 the procedure relating to a Federal election

8 bill shall be decided without debate.

9 (G) FLOOR CONSIDERATION IN THE SEN10 ATE.—

11 (i) MOTION TO PROCEED TO CONSID12 ERATION.—

13 (I) PRIVILEGE.—A motion in the

14 Senate to proceed to the consideration

15 of a Federal election bill shall be priv16 ileged and not debatable.

17 (II) NO AMENDMENT OR MOTION

18 TO RECONSIDER.—An amendment to

19 the motion shall not be in order, and

20 it shall not be in order to move to re21 consider the vote by which the motion

22 is agreed to or disagreed to.

23 (ii) DEBATE OF BILL.—

24 (I) TIME.—Debate in the Senate

25 on a Federal election bill, and all de-
24

•S 1664 IS

1 batable motions and appeals in con2 nection with the bill, shall be limited

3 to not more than 10 hours.

4 (II) DIVISION OF TIME.—The

5 time shall be equally divided between,

6 and controlled by, the Majority Lead7 er and the Minority Leader or their

8 designees.

9 (iii) DEBATE OF MOTION OR AP10 PEAL.—

11 (I) TIME.—Debate in the Senate

12 on any debatable motion or appeal in

13 connection with a Federal election bill

14 shall be limited to not more than 1

15 hour, to be equally divided between,

16 and controlled by, the proponent of

17 the motion and the manager of the

18 bill, except that if the manager of the

19 bill is in favor of the motion or ap20 peal, the time in opposition to the mo21 tion or appeal, shall be controlled by

22 the Minority Leader or a designee of

23 the Minority Leader.

24 (II) ALLOTMENT OF ADDITIONAL

25 TIME.—The leaders under subclause
25

•S 1664 IS

1 (I), or either of them, may, from time

2 under their control on the passage of

3 a Federal election bill, allot additional

4 time to a Senator during the consider5 ation of a debatable motion or appeal.

6 (iv) MOTION TO LIMIT DEBATE.—A

7 motion in the Senate to further limit de8 bate is not debatable.

9 (v) MOTION TO RECOMMIT NOT IN

10 ORDER.—A motion to recommit a Federal

11 election bill is not in order.

12 (f) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated to carry out this sec14 tion—

15 (1) $1,000,000 for each of fiscal years 1999

16 and 2000; and

17 (2) such sums as may be necessary for each fis18 cal year after fiscal year 2000.

19 (g) EFFECTIVE DATE.—Appointments under sub20 section (c) shall be made on or after January 1, 1999.

21 SEC. 108. FUNDING OF THE COMMISSION.

22 (a) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated to carry out this Act,

24 the Federal Election Campaign Act of 1971 (2 U.S.C. 431
26

•S 1664 IS

1 et seq.), and chapters 95 and 96 of the Internal Revenue

2 Code of 1986—

3 (1) for each of fiscal years 1999 and 2000,

4 $50,000,000; and

5 (2) for each fiscal year after fiscal year 2000,

6 such amounts as necessary.

7 (b) USER FEE SCHEDULE.—

8 (1) IN GENERAL.—The Federal Election Com9 mission shall establish by regulation a schedule of

10 user fees that apply to persons required to file a re11 port under the Federal Election Campaign Act of

12 1971 (2 U.S.C. 431 et seq.).

13 (2) REQUIREMENTS.—A user fee schedule es14 tablished under paragraph (1) shall—

15 (A) be printed in the Federal Register not

16 less than 30 days before a fiscal year begins;

17 (B) contain sufficient fees to meet the esti18 mated operating costs of the Federal Election

19 Commission for the next fiscal year;

20 (C) contain sufficient fees to meet the esti21 mated operating costs of the Advisory Commit22 tee on Federal Campaign Reform;

23 (D) provide a waiver of fees for persons re24 quired to file a report with the Federal Election
27

•S 1664 IS

1 Commission for the first $50,000 of reported

2 contributions for the election cycle; and

3 (E) contain categories under which fees

4 are increased as the amount of contributions re5 ceived increases.

6 (3) APPROPRIATIONS.—Any fees collected pur7 suant to this subsection are hereby appropriated for

8 use by the Federal Election Commission in carrying

9 out its duties under the Federal Election Campaign

10 Act of 1971, and for use by the Advisory Committee

11 on Federal Campaign Reform in carrying out its du12 ties under this Act, and shall remain available with13 out fiscal year limitation.

14 (4) LIMITATION ON AMOUNT.—

15 (A) FEDERAL ELECTION COMMISSION.—

16 The estimated operating costs of the Federal

17 Election Commission under paragraph (3) shall

18 not exceed an amount equal to $50,000,000 (in19 dexed as provided in section 315(c) with a base

20 year of 1997) and any amounts collected under

21 this subsection in excess of that amount shall

22 be used for operating costs in future fiscal

23 years.

24 (B) ADVISING COMMITTEE.—Subpara25 graph (A) shall also apply to the Advisory Com-
28

•S 1664 IS

1 mittee on Federal Campaign Reform, except

2 that $1,000,000 shall be substituted for

3 $50,000,000.

4 (c) CONFORMING AMENDMENT.—Title III of the

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

6 et seq.) is amended by striking section 314 and inserting

7 the following:

8 ‘‘SEC. 314. [REPEALED].’’.

9 (d) EFFECTIVE DATE.—The provisions of subsection

10 (b) shall be effective for fiscal years beginning on or after

11 December 31, 1999.

12 SEC. 109. AUDITS.

13 (a) RANDOM AUDITS.—Section 311(b) of the Federal

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

15 amended—

16 (1) by inserting ‘‘(1)’’ before ‘‘The Commis17 sion’’; and

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

19 ‘‘(2) RANDOM AUDITS.—

20 ‘‘(A) IN GENERAL.—Notwithstanding para21 graph (1), the Commission may conduct ran22 dom audits and investigations to ensure vol23 untary compliance with this Act.

24 ‘‘(B) LIMITATION.—The Commission shall

25 not conduct an audit or investigation of a can-
29

•S 1664 IS

1 didate’s authorized committee under paragraph

2 (1) until the candidate is no longer a candidate

3 for the office sought by the candidate in an

4 election cycle.

5 ‘‘(C) APPLICABILITY.—This paragraph

6 does not apply to an authorized committee of a

7 candidate for President or Vice President sub8 ject to audit under section 9007 or 9038 of the

9 Internal Revenue Code of 1986.’’.

10 (b) EXTENSION OF PERIOD DURING WHICH CAM11 PAIGN AUDITS MAY BE BEGUN.—Section 311(b) of the

12 Federal Election Campaign Act of 1971 (2 U.S.C. 438(b))

13 is amended by striking ‘‘6 months’’ and inserting ‘‘12

14 months’’.

15 SEC. 110. AUTHORITY TO SEEK INJUNCTION.

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

17 of 1971 (2 U.S.C. 437g(a)) (as amended by section 105)

18 is amended—

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

20 ‘‘(14)(A) If, at any time in a proceeding described

21 in paragraph (1), (2), (3), or (4), the Commission believes

22 that—

23 ‘‘(i) there is a substantial likelihood that a vio24 lation of this Act is occurring or is about to occur;
30

•S 1664 IS

1 ‘‘(ii) the failure to act expeditiously will result

2 in irreparable harm to a party affected by the poten3 tial violation;

4 ‘‘(iii) expeditious action will not cause undue

5 harm or prejudice to the interests of others; and

6 ‘‘(iv) the public interest would be best served by

7 the issuance of an injunction;

8 the Commission may initiate a civil action for a temporary

9 restraining order or a preliminary injunction pending the

10 outcome of the proceedings described in paragraphs (1),

11 (2), (3), and (4).

12 ‘‘(B) An action under subparagraph (A) shall be

13 brought in the United States district court for the district

14 in which the defendant resides, transacts business, or may

15 be found, or in which the violation is occurring, has oc16 curred, or is about to occur.’’;

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

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

19 (3) in paragraph (11), by striking ‘‘(6)’’ and in20 serting ‘‘(6) or (13)’’.

21 SEC. 111. INCREASE IN PENALTY FOR KNOWING AND WILL22 FUL VIOLATIONS.

23 Section 309(a)(5)(B) of the Federal Election Cam24 paign Act of 1971 (2 U.S.C. 437g(a)(5)(B)) is amended

25 by striking ‘‘the greater of $10,000 or an amount equal
31

•S 1664 IS

1 to 200 percent’’ and inserting ‘‘the greater of $15,000 or

2 an amount equal to 300 percent’’.

3 SEC. 112. EXPEDITED PROCEDURES.

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

5 of 1971 (2 U.S.C. 437g(a)) (as amended by section 110)

6 is amended by adding at the end the following:

7 ‘‘(15)(A) If the complaint in a proceeding was

8 filed within 60 days immediately preceding a general

9 election, the Commission may take action described

10 in this paragraph.

11 ‘‘(B) If the Commission determines, on the

12 basis of facts alleged in the complaint and other

13 facts available to the Commission, that there is clear

14 and convincing evidence that a violation of this Act

15 has occurred, is occurring, or is about to occur and

16 it appears that the requirements for relief stated in

17 clauses (ii), (iii), and (iv) of paragraph (14)(A) are

18 met, the Commission may—

19 ‘‘(i) order expedited proceedings, shorten20 ing the time periods for proceedings under

21 paragraphs (1), (2), (3), and (4) as necessary

22 to allow the matter to be resolved in sufficient

23 time before the election to avoid harm or preju24 dice to the interests of the parties; or
32

•S 1664 IS

1 ‘‘(ii) if the Commission determines that

2 there is insufficient time to conduct proceedings

3 before the election, immediately seek relief

4 under paragraph (14)(A).

5 ‘‘(C) If the Commission determines, on the

6 basis of facts alleged in the complaint and other

7 facts available to the Commission, that the com8 plaint is clearly without merit, the Commission

9 may—

10 ‘‘(i) order expedited proceedings, shorten11 ing the time periods for proceedings under

12 paragraphs (1), (2), (3), and (4) as necessary

13 to allow the matter to be resolved in sufficient

14 time before the election to avoid harm or preju15 dice to the interests of the parties; or

16 ‘‘(ii) if the Commission determines that

17 there is insufficient time to conduct proceedings

18 before the election, summarily dismiss the com19 plaint.’’.
33

•S 1664 IS

1 TITLE II—ENHANCED CAMPAIGN

2 FINANCE DISCLOSURE

3 SEC. 201. DEPOSIT OF CERTAIN CONTRIBUTIONS IN ES4 CROW ACCOUNT.

5 Section 302 of Federal Election Campaign Act of

6 1971 (2 U.S.C. 432) is amended by adding at the end

7 the following:

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

9 a candidate’s authorized committee shall not deposit (ex10 cept in an escrow account), or otherwise negotiate, a con11 tribution from a person who makes an aggregate amount

12 of contributions in excess of $200 during a calendar year

13 unless the treasurer verifies that the information required

14 by this section is complete.’’.

15 SEC. 202. REQUIRED CONTRIBUTOR CERTIFICATION.

16 Section 301(13) of the Federal Election Campaign

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

18 (1) in subparagraph (A)—

19 (A) by striking ‘‘and’’ the first place it ap20 pears; and

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

22 the individual is an individual who is not pro23 hibited by sections 319 and 320 from making

24 the contribution’’ after ‘‘employer’’; and
34

•S 1664 IS

1 (2) in subparagraph (B) by inserting ‘‘and an

2 affirmation that the person is a person that is not

3 prohibited by sections 319 and 320 from making a

4 contribution’’ after ‘‘such person’’.

5 SEC. 203. REPORTING REQUIREMENTS.

6 (a) FILING DATE FOR REPORTS.—Section 304(a) of

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

8 434(a)) is amended—

9 (1) in paragraph (2)(A)(i), by striking ‘‘(or

10 posted by registered or certified mail no later than

11 the 15th day before)’’;

12 (2) in paragraph (4)(A)(ii), by striking ‘‘(or

13 posted by registered or certified mail no later than

14 the 15th day before)’’; and

15 (3) by striking paragraph (5) and inserting

16 ‘‘(5) [REPEALED].’’.

17 (b) CAMPAIGN-CYCLE REPORTING.—

18 (1) IN GENERAL.—Section 304(b) of the Fed19 eral Election Campaign Act of 1971 (2 U.S.C.

20 434(b)) is amended—

21 (A) in paragraph (2), by inserting ‘‘(or, in

22 the case of an authorized committee, the report23 ing period and the election cycle)’’ after ‘‘cal24 endar year’’;

25 (B) in paragraph (3)—
35

•S 1664 IS

1 (i) in subparagraph (A), by inserting

2 ‘‘(or, in the case of an authorized commit3 tee, within the election cycle)’’ after ‘‘cal4 endar year’’;

5 (ii) in subparagraph (F), by inserting

6 ‘‘(or, in the case of an authorized commit7 tee, within the election cycle)’’ after ‘‘cal8 endar year’’; and

9 (iii) in subparagraph (G), by inserting

10 ‘‘(or, in the case of an authorized commit11 tee, within the election cycle)’’ after ‘‘cal12 endar year’’;

13 (C) in paragraph (4), by inserting ‘‘(or, in

14 the case of an authorized committee, the report15 ing period and the election cycle)’’ after ‘‘cal16 endar year’’;

17 (D) in paragraph (5)(A), by inserting ‘‘(or,

18 in the case of an authorized committee, within

19 the election cycle)’’ after ‘‘calendar year’’; and

20 (E) in paragraph (6)(A), by striking ‘‘cal21 endar year’’ and inserting ‘‘election cycle’’.

22 (2) DEFINITION OF ELECTION CYCLE.—Section

23 301 of the Federal Election Campaign Act of 1971

24 (2 U.S.C. 431) is amended by adding at the end the

25 following:
36

•S 1664 IS

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

2 cycle’ means the period beginning on the day after

3 the date of the most recent general election for the

4 specific office or seat that a candidate is seeking and

5 ending on the date of the next general election for

6 that office or seat.’’.

7 (c) MONTHLY REPORTING BY MULTICANDIDATE PO8 LITICAL COMMITTEES.—Section 304(a)(4)(B) of the Fed9 eral Election Campaign Act of 1971 (2 U.S.C.

10 434(a)(4)(B)) is amended by adding at the end the follow11 ing: ‘‘In the case of a multicandidate political committee

12 that has received contributions aggregating $100,000 or

13 more or made expenditures aggregating $100,000 or

14 more, by January 1 of the calendar year, or anticipates

15 receiving contributions aggregating $100,000 or more or

16 making expenditures aggregating $100,000 or more dur17 ing such year, the committee shall file monthly reports

18 under this subparagraph.’’.

19 (d) FILING OF REPORT OF INDEPENDENT EXPENDI20 TURES.—The second sentence of section 304(c)(2) of the

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

22 434(c)(2)) is amended by inserting ‘‘and filed’’ after

23 ‘‘shall be reported’’.

24 (e) DISBURSEMENTS TO SECONDARY PAYEES.—

25 (1) COMMITTEE RECORDS.—
37

•S 1664 IS

1 (A) INFORMATION RECORDED BY TREAS2 URER.—Section 302(c) of Federal Election

3 Campaign Act of 1971 (2 U.S.C. 432(c)) is

4 amended—

5 (i) in paragraph (4), by striking

6 ‘‘and’’ at the end;

7 (ii) in paragraph (5), by striking the

8 period and inserting ‘‘; and’’; and

9 (iii) by adding at the end the follow10 ing:

11 ‘‘(6) in the case of a disbursement described in

12 paragraph (5) that is made to a person providing

13 personal or consulting services and is used by such

14 person to make a disbursement to another person

15 (not including employees) who provides goods or

16 services to the candidate or the candidate’s author17 ized committees, the name and address of the other

18 person, the date, amount, and purpose of such dis19 bursement, and a receipt, invoice, or canceled check

20 for each disbursement.’’.

21 (B) INFORMATION REPORTED TO COMMIT22 TEE.—Section 302 of the Federal Election

23 Campaign Act of 1971 (2 U.S.C. 432) (as

24 amended by section 201) is amended by adding

25 at the end the following:
38

•S 1664 IS

1 ‘‘(k) A person described in section 304(b)(5)(F) shall

2 maintain records of and provide to a political committee

3 the information necessary for the committee to report the

4 information described in such section and maintain the in5 formation required under subsection (c).’’.

6 (2) REQUIRED DISCLOSURE.—Section 304(b) of

7 the Federal Election Campaign Act of 1971 (2

8 U.S.C. 434(b)) is amended—

9 (A) in paragraph (5)—

10 (i) in subparagraph (D), by striking

11 ‘‘and’’ at the end;

12 (ii) in subparagraph (E), by inserting

13 ‘‘and’’ after the semicolon; and

14 (iii) by adding at the end the follow15 ing:

16 ‘‘(F) in the case of an expenditure de17 scribed in subparagraph (A) that is made to a

18 person providing personal or consulting services

19 and is used by such person to make expendi20 tures to another person (not including employ21 ees) who provides goods or services to the can22 didate or the candidate’s authorized commit23 tees, the other person, together with the date,

24 amount, and purpose of such expenditure, shall

25 be disclosed;’’; and
39

•S 1664 IS

1 (B) in paragraph (6)—

2 (i) in subparagraph (A) (as amended

3 by subsection (b)), by inserting ‘‘and each

4 other person described in paragraph

5 (5)(F)’’ after ‘‘election cycle’’; and

6 (ii) in subparagraph (B)(v), by insert7 ing ‘‘including other persons described in

8 paragraph (5)(F)’’ after ‘‘person’’.

9 (f) REPORTING OF CERTAIN EXPENDITURES.—Sec10 tion 304(a) of the Federal Election Campaign Act of 1971

11 (2 U.S.C. 434(a)) is amended by adding at the end the

12 following:

13 ‘‘(12)(A)(i) A political committee, other than an au14 thorized committee of a candidate, that has received con15 tributions aggregating $100,000 or more or made expendi16 tures aggregating $100,000 or more during the calendar

17 year or anticipates receiving contributions aggregating

18 $100,000 or more or making expenditures aggregating

19 $100,000 or more during such year, shall notify the Com20 mission in writing of any contribution in an aggregate

21 amount equal to $1,000 or more received by the committee

22 after the 20th day, but more than 48 hours, before any

23 election.

24 ‘‘(ii) Notification shall be made within 48 hours after

25 the receipt of such contribution and shall include the name
40

•S 1664 IS

1 of the political committee, the identification of the contrib2 utor, and the date of receipt of the contribution.

3 ‘‘(B) The notification required under this paragraph

4 shall be in addition to all other reporting requirements

5 under this Act.’’.

Æ