II

105TH CONGRESS

1ST SESSION S. 179

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

IN THE SENATE OF THE UNITED STATES

JANUARY 22, 1997

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

referred to the Committee on Rules and Administration

A BILL

To reform the financing of Federal elections, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Campaign Finance Re5 form and Disclosure Act of 1997’’.

6 SEC. 2. DEFINITIONS.

7 Section 301 of the Federal Election Campaign Act

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

9 the following:

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

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

3 beginning on the day after the date of the most

4 recent general election for the specific office or

5 seat that the candidate seeks and ending on the

6 date of the next general election for that office

7 or seat; and

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

9 period beginning on the first day following the

10 date of the last general election and ending on

11 the date of the next general election.

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

13 candidate’ means a candidate who seeks nomination

14 for election, or election, to the Senate.

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

17 solely to a bona fide campaign purpose.

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

19 term ‘inherently personal purpose’ means a purpose

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

21 candidate, including a home mortgage rent or utility

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

24 or trip of a noncampaign nature, household food

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

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

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

6 326.’’.

7 SEC. 3. PROHIBITION OF CONTRIBUTIONS TO FEDERAL

8 CANDIDATES BY NONCITIZENS.

9 Section 319(b)(2) of the Federal Election Campaign

10 Act of 1971 (2 U.S.C. 441e(b)(2)) is amended by striking

11 ‘‘and who is not lawfully admitted for permanent resi12 dence, as defined by section 101(a)(20) of the Immigra13 tion and Nationality Act (8 U.S.C. 1101(a)(20))’’.

14 SEC. 4. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE

15 CONTRIBUTIONS BY SENATE CANDIDATES.

16 Title III of the Federal Election Campaign Act of

17 1971 (2 U.S.C. 431 et seq.) is amended by adding at the

18 end the following:

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

20 CONTRIBUTIONS BY SENATE CANDIDATES.

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

22 committees shall not accept, during an election cycle, con23 tributions from persons other than individuals residing in

24 the candidate’s State in an amount exceeding 40 percent
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1 of the total amount of contributions accepted during the

2 election cycle.’’.

3 SEC. 5. LIMITATION ON REIMBURSEMENT FROM CAM4 PAIGNS FOR CONTRIBUTIONS BY SENATE

5 CANDIDATES AND IMMEDIATE FAMILIES OF

6 SENATE CANDIDATES.

7 Title III of the Federal Election Campaign Act of

8 1971 (2 U.S.C. 431 et seq.) (as amended by section 4)

9 is amended by adding at the end the following:

10 ‘‘SEC. 325. LIMITATION ON REIMBURSEMENT FROM CAM11 PAIGNS FOR CONTRIBUTIONS BY SENATE

12 CANDIDATES AND IMMEDIATE FAMILIES OF

13 SENATE CANDIDATES.

14 ‘‘(a) IN GENERAL.—The aggregate amount of con15 tributions made during an election cycle to an eligible Sen16 ate candidate or the candidate’s authorized committees

17 from the sources described in subsection (b) that may be

18 reimbursed to those sources shall not exceed $250,000.

19 ‘‘(b) SOURCES.—A source is described in this sub20 section if the source is—

21 ‘‘(1) personal funds of the candidate and mem22 bers of the candidate’s immediate family; or

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

24 and members of the candidate’s immediate family.
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1 ‘‘(c) INDEXING.—The $250,000 amount under sub2 section (a) shall be increased as of the beginning of each

3 calendar year based on the increase in the price index de4 termined under section 315(c), except that the base period

5 shall be calendar year 1996.’’.

6 SEC. 6. RESTRICTION ON USE OF CAMPAIGN FUNDS BY

7 SENATE CANDIDATES FOR PERSONAL PUR8 POSES.

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

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

11 by section 5) is amended by adding at the end the follow12 ing:

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

14 SENATE CANDIDATES FOR PERSONAL PUR15 POSES.

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

17 a contribution—

18 ‘‘(1) shall use the contribution only to pay a le19 gitimate and verifiable campaign or politically relat20 ed expense; and

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

22 inherently personal purpose.

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

24 date of enactment of this section, the Commission shall

25 issue a regulation implementing subsection (a).’’.
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1 (b) APPLICATION OF AMENDMENT.—The amendment

2 made by subsection (a) shall apply to all contributions pos3 sessed by a candidate on the date of enactment of this

4 Act and thereafter.

5 SEC. 7. LIMIT ON CONGRESSIONAL USE OF THE FRANKING

6 PRIVILEGE.

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

8 Code, is amended to read as follows:

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

10 any mass mailing as franked mail during a year

11 in which there will be an election for the seat

12 held by the Member during the period between

13 January 1 of that year and the date of the gen14 eral election for that Office, unless the Member

15 has made a public announcement that the

16 Member will not be a candidate for election to

17 any Federal office in that year (including the

18 office held by the Member).’’.

19 SEC. 8. DECREASE IN PAC CONTRIBUTION LIMIT; INDEXING

20 OF LIMITS.

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

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

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

24 and inserting ‘‘$1,000’’; and

25 (2) by adding at the end the following:
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1 ‘‘(9) INDEXING.—The $1,000 amounts under

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

3 of the beginning of each calendar year based on the

4 increase in the price index determined under sub5 section (c), except that the base period shall be cal6 endar year 1996.’’.

7 SEC. 9. RESTRICTION ON ACCEPTANCE OF CONTRIBUTIONS

8 BY POLITICAL PARTY COMMITTEES.

9 Title III of the Federal Election Campaign Act of

10 1971 (2 U.S.C. 431 et seq.) (as amended by section 6)

11 is amended by adding at the end the following:

12 ‘‘SEC. 327. RESTRICTION ON ACCEPTANCE OF CONTRIBU13 TIONS BY POLITICAL PARTY COMMITTEES.

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

15 party to accept a contribution on the condition that the

16 contribution be used to make a contribution to or an ex17 penditure on behalf of a particular candidate.’’.

18 SEC. 10. UNLIMITED COMMUNICATIONS BETWEEN A POLIT19 ICAL PARTY AND MEMBERS OF THE POLITI20 CAL PARTY.

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

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

23 end the following:

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

25 under paragraphs (2) and (3), in determining the amount
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1 of expenditures made by a national committee of a politi2 cal party or a State committee of a political party (includ3 ing any subordinate committee of a State committee),

4 there shall be excluded any amount spent by the commit5 tee for communications to the extent the communications

6 are made to members of the political party.

7 ‘‘(B) For purposes of subparagraph (A), an individ8 ual shall be considered to be a ‘member’ of a political

9 party if—

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

11 member of the party;

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

13 voted in the primary election of the political party in

14 the most recent primary election; or

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

16 that the individual is a member of the political

17 party.’’.

18 SEC. 11. PROMOTION OF STATE AND LOCAL PARTY ACTIV19 ITY.

20 (a) CONTRIBUTIONS.—Section 301(8)(B) of the Fed21 eral Election Campaign Act of 1971 (2 U.S.C. 431(8)(B))

22 is amended—

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

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

25 end and inserting ‘‘; and’’; and
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1 (3) by adding at the end the following:

2 ‘‘(xv) the payment by a State or local commit3 tee of a political party for—

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

5 party’s candidates, including the communication

6 of the slate to the public;

7 ‘‘(II) the mailing of materials for or on be8 half of specific candidates by volunteers (includ9 ing labeling envelopes or affixing postage or

10 other indicia to particular pieces of mail), other

11 than the mailing of materials to a commercial

12 list;

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

14 on behalf of specific candidates staffed by vol15 unteers; or

16 ‘‘(IV) the distribution of collateral mate17 rials (such as pins, bumper stickers, handbills,

18 brochures, posters, party tabloids, and yard

19 signs) for or on behalf of specific candidates

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

21 (b) EXPENDITURES.—Section 301(9)(B) of the Fed22 eral Election Campaign Act of 1971 (2 U.S.C. 431(9)(B))

23 is amended—

24 (1) in clause (ix) by striking ‘‘and’’ at the end;
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1 (2) in clause (x) by striking the period at the

2 end and inserting ‘‘; and’’; and

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

4 ‘‘(xi) the payment by a State or local committee

5 of a political party for—

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

7 party’s candidates, including the communication

8 of the slate to the public;

9 ‘‘(II) the mailing of materials for or on be10 half of specific candidates by volunteers (includ11 ing labeling envelopes or affixing postage or

12 other indicia to particular pieces of mail), other

13 than the mailing of materials to a commercial

14 list;

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

16 on behalf of specific candidates staffed by vol17 unteers; or

18 ‘‘(IV) the distribution of collateral mate19 rials (such as pins, bumper stickers, handbills,

20 brochures, posters, party tabloids, and yard

21 signs) for or on behalf of specific candidates

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

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

24 301(8)(B)(x) of the Federal Election Campaign Act of

25 1971 (2 U.S.C. 431(8)(B)(x)) is amended by striking ‘‘in
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1 connection with volunteer activities on behalf of nominees

2 of such party’’ and inserting ‘‘in connection with State or

3 local activities, other than any payment described in clause

4 (xv)’’.

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

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

7 amended by striking ‘‘in connection with volunteer activi8 ties on behalf of nominees of such party’’ and inserting

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

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

11 SEC. 12. RELIEF OF SMALL PACS FROM REPORTING RE12 QUIREMENTS.

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

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

15 after ‘‘political committee’’ the following: ‘‘(except a multi16 candidate political committee or separate segregated fund

17 that has not, during an election cycle, as of any date with18 in the election cycle, accepted contributions or made ex19 penditures in an aggregate amount exceeding $25,000)’’.

20 SEC. 13. RIGHTS OF EMPLOYEES RELATING TO THE PAY21 MENT AND USE OF LABOR ORGANIZATION

22 DUES.

23 (a) PAYMENT OF DUES.—

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

25 National Labor Relations Act (29 U.S.C. 157) is
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1 amended by striking ‘‘membership’’ and all that fol2 lows and inserting the following: ‘‘the payment to a

3 labor organization of dues or fees related to collec4 tive bargaining, contract administration, or griev5 ance adjustment necessary to performing the duties

6 of exclusive representation as a condition of employ7 ment as authorized in section 8(a)(3).’’.

8 (2) UNFAIR LABOR PRACTICES.—Section

9 8(a)(3) of the National Labor Relations Act (29

10 U.S.C. 158(a)(3)) is amended by striking ‘‘member11 ship therein’’ and inserting ‘‘the payment to such

12 labor organization of dues or fees related to collec13 tive bargaining, contract administration, or griev14 ance adjustment necessary to performing the duties

15 of exclusive representation’’.

16 (b) REQUIREMENTS FOR USE OF DUES FOR CERTAIN

17 PURPOSES.—

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

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

20 amended by adding at the end the following:

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

22 an employer and a labor organization requiring the pay23 ment of dues or fees to such organization as authorized

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

25 organization, nor may such organization accept payment
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1 of, any dues or fees not related to collective bargaining,

2 contract administration, or grievance adjustment nec3 essary to performing the duties of exclusive representation

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

5 in a signed written agreement that shall be renewed be6 tween the first day of September and the first day of Octo7 ber of each year.

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

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

10 fees related to collective bargaining, contract administra11 tion, or grievance adjustment necessary to performing the

12 duties of exclusive representation and the dues or fees re13 lated to other purposes.’’.

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

15 of the Labor Management Relations Act, 1947 (29

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

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

18 amount may be deducted for dues unrelated to col19 lective bargaining, contract administration, or griev20 ance adjustment necessary to performing the duties

21 of exclusive representation unless a written assign22 ment authorizes such a deduction’’.

23 (c) NOTICE TO EMPLOYEES RELATING TO THE PAY24 MENT AND USE OF DUES.—Section 8 of the National
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1 Labor Relations Act (29 U.S.C. 158) (as amended by sub2 section (b)(1)) is amended by adding at the end the follow3 ing:

4 ‘‘(i)(1) An employer shall post a notice that informs

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

6 and clarifies to such employees that an agreement requir7 ing the payment of dues or fees to a labor organization

8 as a condition of employment as authorized in subsection

9 (a)(3) may only require that employees pay to such organi10 zation any dues or fees related to collective bargaining,

11 contract administration, or grievance adjustment nec12 essary to performing the duties of exclusive representa13 tion. A copy of such notice shall be provided to each em14 ployee not later than 10 days after the first day of employ15 ment.

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

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

18 and shall be posted in conspicuous places in and about

19 the plants and offices of such employer, including all

20 places where notices to employees are customarily post21 ed.’’.

22 (d) EMPLOYEE PARTICIPATION IN THE AFFAIRS OF

23 A LABOR ORGANIZATION.—Section 8(b)(1) of the Na24 tional Labor Relations Act (29 U.S.C. 158(b)(1)) is
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1 amended by striking ‘‘therein;’’ and inserting the follow2 ing: ‘‘therein, except that, an employee who is subject to

3 an agreement between an employer and a labor organiza4 tion requiring as a condition of employment the payment

5 of dues or fees to such organization as authorized in sub6 section (a)(3) and who pays such dues or fees shall have

7 the same right to participate in the affairs of the organiza8 tion related to collective bargaining, contract administra9 tion, or grievance adjustment as any member of the orga10 nization;’’.

11 (e) DISCLOSURE TO EMPLOYEES.—

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

13 the Labor-Management Reporting and Disclosure

14 Act of 1959 (29 U.S.C. 431(b)) is amended by add15 ing at the end the following: ‘‘Every labor organiza16 tion shall be required to attribute and report ex17 penses by function classification in such detail as

18 necessary to allow the members of such organization

19 or the employees required to pay any dues or fees

20 to such organization to determine whether such ex21 penses were related to collective bargaining, contract

22 administration, or grievance adjustment necessary to

23 performing the duties of exclusive representation or

24 were related to other purposes.’’.
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1 (2) REPORT INFORMATION.—Section 201(c) of

2 the Labor-Management Reporting and Disclosure

3 Act of 1959 (29 U.S.C. 431(c)) is amended—

4 (A) by inserting ‘‘and employees required

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

6 after ‘‘members’’;

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

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

9 member of such organization or employee re10 quired to pay any dues or fees to such organiza11 tion’’; and

12 (C) by striking ‘‘such member’’ and insert13 ing ‘‘such member or employee’’.

14 (3) REGULATIONS.—The Secretary of Labor

15 shall prescribe such regulations as are necessary to

16 carry out the amendments made by this subsection

17 not later than 120 days after the date of enactment

18 of this Act.

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

20 on the date of enactment of this Act, except that the re21 quirements contained in the amendments made by sub22 sections (b) and (c) shall take effect 60 days after the

23 date of enactment of this Act.
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1 SEC. 14. EXPEDITED JUDICIAL REVIEW.

2 (a) CIVIL ACTION.—The Federal Election Commis3 sion, a political committee under title III of the Federal

4 Election Campaign Act of 1971, or any individual eligible

5 to vote in any election for the office of President of the

6 United States may bring a civil action in United States

7 district court to determine the constitutionality of any pro8 vision of this Act or any amendment made by this Act.

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

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

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

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

13 States Code.

14 (c) DIRECT APPEAL TO SUPREME COURT.—An ap15 peal of an interlocutory order or final judgment, decree,

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

17 taken directly to the Supreme Court not later than 20

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

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

20 Supreme Court shall accept jurisdiction over, advance on

21 the docket, and expedite to the greatest extent possible

22 an appeal under subsection (c).

Æ