I

104TH CONGRESS

2D SESSION H. R. 3820

To amend the Federal Election Campaign Act of 1971 to reform the financing

of Federal election campaigns, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 16, 1996

Mr. THOMAS (for himself, Mr. GINGRICH, Mr. ARMEY, Mr. DELAY, Mr.

BOEHNER, Mr. PAXON, Mr. FAWELL, Mr. HOEKSTRA, Mr. WAMP, Mr.

EHLERS, Ms. GREENE of Utah, Mr. BALLENGER, Mr. RIGGS, Mr. FOX

of Pennsylvania, Mr. KOLBE, Mr. WALKER, Mr. KINGSTON, Mr. HOBSON, Mr. LIVINGSTON, Mr. WELDON of Pennsylvania, and Mr. COBLE)

introduced the following bill; which was referred to the Committee on

House Oversight, and in addition to the Committee on Economic and

Educational Opportunities, for a period to be subsequently determined by

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Federal Election Campaign Act of 1971 to

reform the financing of Federal election campaigns, 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; TABLE OF CONTENTS.

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

5 ‘‘Campaign Finance Reform Act of 1996’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

TITLE I—RESTORING CONTROL OF ELECTIONS TO INDIVIDUALS

Sec. 101. Requiring majority of House of Representatives candidate funds to

come from individuals residing in district.

Sec. 102. Reduction in allowable contribution amounts for political action committees in Federal elections to level allowed for individuals.

Sec. 103. Modification of limitations on contributions when candidates spend or

contribute large amounts of personal funds.

Sec. 104. Indexing limits on contributions.

Sec. 105. Prohibition of leadership committees.

Sec. 106. Prohibiting bundling of contributions to candidates by political action

committees and lobbyists.

Sec. 107. Definition of independent expenditures.

Sec. 108. Requirements for use of payroll deductions for contributions.

TITLE II—STRENGTHENING POLITICAL PARTIES

Sec. 201. Modification of contribution limits and requirements for political parties.

Sec. 202. Allowing political parties to offset funds carried over from previous

elections.

Sec. 203. Prohibiting use of non-Federal funds in Federal elections.

Sec. 204. Permitting parties to have unlimited communication with members.

Sec. 205. Promoting State and local party volunteer and grassroots activity.

TITLE III—DISCLOSURE AND ENFORCEMENT

Sec. 301. Timely reporting and increased disclosure.

Sec. 302. Streamlining procedures and rules of Federal Election Commission.

TITLE IV—WORKER RIGHT TO KNOW

Sec. 401. Findings.

Sec. 402. Purpose.

Sec. 403. Worker choice.

Sec. 404. Worker consent.

Sec. 405. Worker notice.

Sec. 406. Disclosure to workers.

Sec. 407. Construction.

Sec. 408. Effective date.

TITLE V—GENERAL PROVISIONS

Sec. 501. Effective date.

Sec. 502. Severability.

Sec. 503. Expedited court review.

3 SEC. 2. FINDINGS.

4 Congress finds the following:
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1 (1) Our republican form of government is

2 strengthened when voters choose their representa3 tives in elections that are free of corruption or the

4 appearance of corruption.

5 (2) Corruption or the appearance of corruption

6 in elections may evidence itself in many ways:

7 (A) Voters who democratically elect rep8 resentatives must believe they are fairly rep9 resented by those they elect. The current elec10 tion laws have led many to believe that the in11 terests of those who actually vote for their rep12 resentatives are less important than those who

13 cannot vote, but who can influence an election

14 by their contributions to the candidates.

15 (B) Failure to disclose, or timely disclose,

16 those who contribute and how much they con17 tribute unnecessarily withholds information vot18 ers need to cast ballots with complete con19 fidence, thereby increasing the belief of, or the

20 appearance of, corruption.

21 (C) The diminishing role of political par22 ties, despite parties’ long-standing role in ad23 vancing broad national agendas, in assisting the

24 election of party candidates, and in organizing

25 members, has relatively enhanced groups that
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1 pursue narrower interests. This relative shift of

2 influence has been interpreted by some as cor3 rupting the election process.

4 (D) Complicated and obsolete election laws

5 and rules discourage citizens from becoming

6 candidates, allow for coerced involuntary pay7 ments for political purposes, fail to keep con8 tribution amounts current with inflation, and

9 fail to provide reasonable compensating con10 tribution limits for candidates who run against

11 candidates who wish to exercise their constitu12 tional right of spending their own resources.

13 The current state of laws and rules is such that

14 if they do not corrupt, at the very least they un15 duly hinder fair, honest, and competitive elec16 tions.

17 TITLE I—RESTORING CONTROL

18 OF ELECTIONS TO INDIVIDUALS

19 SEC. 101. REQUIRING MAJORITY OF HOUSE OF REP20 RESENTATIVES CANDIDATE FUNDS TO COME

21 FROM INDIVIDUALS RESIDING IN DISTRICT.

22 (a) IN GENERAL.—Section 315 of the Federal Elec23 tion Campaign Act of 1971 (2 U.S.C. 441a) is amended

24 by adding at the end the following new subsection:
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1 ‘‘(i)(1) A candidate for the office of Representative

2 in, or Delegate or Resident Commissioner to, the Congress

3 may not accept contributions with respect to an election

4 cycle from persons other than local individual residents to5 taling in excess of the total of contributions accepted from

6 local individual residents (as determined on the basis of

7 the most recent information included in reports pursuant

8 to section 304(d).

9 ‘‘(2) In determining the amount of contributions ac10 cepted by a candidate for purposes of this subsection, con11 tributions of the candidate’s personal funds shall be sub12 ject to the following rules:

13 ‘‘(A) To the extent that the amount of the con14 tribution does not exceed the limitation on contribu15 tions made by an individual under subsection

16 (a)(1)(A), such contribution shall be treated as any

17 other contribution.

18 ‘‘(B) The portion (if any) of the contribution

19 which exceeds the limitation on contributions which

20 may be made by an individual under subsection

21 (a)(1)(A) shall be allocated in accordance with para22 graph (8).

23 ‘‘(3) In determining the amount of contributions ac24 cepted by a candidate for purposes of this subsection, con-
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1 tributions from a political party or a political party com2 mittee shall be allocated in accordance with paragraph (8).

3 ‘‘(4) In determining the amount of contributions ac4 cepted by a candidate for purposes of this subsection, any

5 funds remaining in the candidate’s campaign account

6 after the filing of the post-general election report under

7 section 304(a)(2)(A)(ii) for the most recent general elec8 tion shall be allocated in accordance with paragraph (8).

9 ‘‘(5) In determining the amount of contributions ac10 cepted by a candidate for purposes of this subsection, any

11 contributions accepted pursuant to subsection (j) which

12 are from persons other than local individual residents shall

13 be allocated in accordance with paragraph (8).

14 ‘‘(6)(A) Any candidate who accepts contributions that

15 exceed the limitation under this subsection, as determined

16 on the basis of information included in reports pursuant

17 to section 304(d), shall pay to the Commission at the time

18 of the filing of the report which contains the information,

19 for deposit in the Treasury, an amount equal to 3 times

20 the amount of the excess contributions (or, in the case

21 of a candidate described in subparagraph (C), an amount

22 equal to 5 times the amount of the excess contributions

23 plus a civil penalty in an amount determined by the Com24 mission).
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1 ‘‘(B) Any amounts paid by a candidate under this

2 paragraph shall be paid from contributions subject to the

3 limitations and prohibitions of this title, including the lim4 itation under this subsection.

5 ‘‘(C) A candidate described in this subparagraph is

6 a candidate who accepts contributions that exceed the lim7 itation under this subsection as of the last day of the pe8 riod ending on the 20th day before an election or any pe9 riod ending after such 20th day and before or on the 20th

10 day after such election.

11 ‘‘(7) As used in this subsection, the term ‘local indi12 vidual resident’ means an individual who resides in the

13 congressional district involved.

14 ‘‘(8) For purposes of this subsection, any amounts

15 allocated in accordance with this paragraph shall be allo16 cated as follows:

17 ‘‘(A) 50 percent of such amounts shall be

18 deemed to be contributions from local individual

19 residents.

20 ‘‘(B) 50 percent of such amounts shall be

21 deemed to be contributions from persons other than

22 local individual residents.’’.

23 (b) REPORTING REQUIREMENTS.—Section 304 of

24 such Act (2 U.S.C. 434) is amended by adding at the end

25 the following new subsection:
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1 ‘‘(d) Each principal campaign committee of a can2 didate for the House of Representatives shall include the

3 following information in reports filed under subsection

4 (a)(2) and subsection (a)(6)(A):

5 ‘‘(1) With respect to each report filed under

6 such subsection—

7 ‘‘(A) the total contributions received by the

8 committee with respect to the election cycle in9 volved from local individual residents (as de10 fined in section 315(i)(7)), as of the last day of

11 the period covered by the report;

12 ‘‘(B) the total contributions received by the

13 committee with respect to the election cycle in14 volved which are not from local individual resi15 dents, as of the last day of the period covered

16 by the report; and

17 ‘‘(C) a certification as to whether the con18 tributions reported comply with the limitation

19 under section 315(i), as of the last day of the

20 period covered by the report.

21 ‘‘(2) In the case of the first report filed under

22 such subsection which covers the period which begins

23 19 days before an election and ends 20 days after

24 the election—
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1 ‘‘(A) the total contributions received by the

2 committee with respect to the election cycle in3 volved from local individual residents (as de4 fined in section 315(i)(7)), as of the last day of

5 such period;

6 ‘‘(B) the total contributions received by the

7 committee with respect to the election cycle in8 volved which are not from local individual resi9 dents, as of the last day of such period; and

10 ‘‘(C) a certification as to whether the con11 tributions reported comply with the limitation

12 under section 315(i), as of the last day of such

13 period.’’.

14 SEC. 102. REDUCTION IN ALLOWABLE CONTRIBUTION

15 AMOUNTS FOR POLITICAL ACTION COMMIT16 TEES IN FEDERAL ELECTIONS TO LEVEL AL17 LOWED FOR INDIVIDUALS.

18 (a) IN GENERAL.—Section 315(a) of the Federal

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

20 amended—

21 (1) in paragraph (1)—

22 (A) in subparagraph (A), by inserting after

23 ‘‘Federal office’’ the following: ‘‘or to any other

24 political committee other than a political party

25 committee in any calendar year’’,
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1 (B) in subparagraph (A), by adding ‘‘or’’

2 at the end,

3 (C) in subparagraph (B), by striking ‘‘;

4 or’’ and inserting a period, and

5 (D) by striking subparagraph (C); and

6 (2) by amending paragraph (2) to read as fol7 lows:

8 ‘‘(2) No political party committee may make con9 tributions—

10 ‘‘(A) to any candidate or the candidate’s au11 thorized political committees with respect to any

12 election for Federal office which, in the aggregate,

13 exceed $5,000; or

14 ‘‘(B) to any other political committee other

15 than a political party committee in any calendar

16 year which, in the aggregate, exceed $5,000.’’.

17 (b) POLITICAL PARTY COMMITTEE DEFINED.—The

18 second sentence of section 315(a)(4) of such Act (2 U.S.C.

19 441a(a)(4)) is amended to read as follows: ‘‘For purposes

20 of this section, the term ‘political party committee’ means

21 a political committee which is a national, State, district,

22 or local political party committee (including any subordi23 nate committee thereof).’’.

24 (c) CONFORMING AMENDMENTS.—Section 311(a)(6)

25 of such Act (2 U.S.C. 438(a)(6)) is amended—
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1 (1) in subparagraph (B), by striking ‘‘multi2 candidate committees’’ the first place it appears and

3 inserting ‘‘political committees which are not author4 ized committees of candidates or political party com5 mittees’’;

6 (2) in subparagraph (B), by striking ‘‘multi7 candidate committees’’ the second place it appears

8 and inserting ‘‘such committees’’; and

9 (3) in subparagraph (C), by striking ‘‘multi10 candidate committees’’ and inserting ‘‘committees

11 described in subparagraph (B)’’.

12 SEC. 103. MODIFICATION OF LIMITATIONS ON CONTRIBU13 TIONS WHEN CANDIDATES SPEND OR CON14 TRIBUTE LARGE AMOUNTS OF PERSONAL

15 FUNDS.

16 (a) IN GENERAL.—Section 315 of the Federal Elec17 tion Campaign Act of 1971 (2 U.S.C. 441a), as amended

18 by section 101(a), is further amended by adding at the

19 end the following new subsection:

20 ‘‘(j)(1) Notwithstanding subsection (a), if in a gen21 eral election a House candidate makes expenditures of per22 sonal funds (including contributions by the candidate to

23 the candidate’s authorized campaign committee) in an

24 amount in excess of the amount of the limitation estab25 lished under subsection (a)(1)(A) and less than or equal
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1 to $150,000 (as reported under section 304(a)(2)(A)), a

2 political party committee may make contributions to an

3 opponent of the House candidate without regard to any

4 limitation otherwise applicable to such contributions under

5 subsection (a), except that the opponent may not accept

6 aggregate contributions under this paragraph in an

7 amount greater than the greatest amount of personal

8 funds expended (including contributions to the candidate’s

9 authorized campaign committee) by any House candidate

10 (other than such opponent) with respect to the election

11 (as reported in a notification submitted under section

12 304(a)(6)(B)).

13 ‘‘(2) If a House candidate makes expenditures of per14 sonal funds (including contributions by the candidate to

15 the candidate’s authorized campaign committee) with re16 spect to an election in an amount greater than $150,000

17 (as reported under section 304(a)(2)(A)), the following

18 rules shall apply:

19 ‘‘(A) In the case of a general election, the limi20 tations under subsections (a)(1) and (a)(2) (insofar

21 as such limitations apply to political party commit22 tees and to individuals) shall not apply to contribu23 tions to the candidate or to any opponent of the can24 didate, except that neither the candidate or any op25 ponent may accept aggregate contributions under
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1 this subparagraph and paragraph (1) in an amount

2 greater than the greatest amount of personal funds

3 (including contributions to the candidate’s author4 ized campaign committee) expended by any House

5 candidate with respect to the election (as reported in

6 a notification submitted under section

7 304(a)(6)(B)).

8 ‘‘(B) In the case of an election other than a

9 general election, the limitations under subsection

10 (a)(1) (insofar as such limitations apply to individ11 uals) shall not apply to contributions to the can12 didate or to any opponent of the candidate, except

13 that neither the candidate or any opponent may ac14 cept aggregate contributions under this subpara15 graph in an amount greater than the greatest

16 amount of personal funds (including contributions to

17 the candidate’s authorized campaign committee) ex18 pended by any House candidate with respect to the

19 election (as reported in a notification submitted

20 under section 304(a)(6)(B)).

21 ‘‘(3) In this subsection, the term ‘House candidate’

22 means a candidate in an election for the office of Rep23 resentative in, or Delegate or Resident Commissioner to,

24 the Congress.’’.
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1 (b) NOTIFICATION OF EXPENDITURES OF PERSONAL

2 FUNDS.—Section 304(a)(6) of such Act (2 U.S.C.

3 434(a)(6)) is amended—

4 (1) by redesignating subparagraph (B) as sub5 paragraph (C); and

6 (2) by inserting after subparagraph (A) the fol7 lowing new subparagraph:

8 ‘‘(B)(i) The principal campaign committee of a

9 House candidate (as defined in section 315(j)(3)) shall

10 submit the following notifications relating to expenditures

11 of personal funds by such candidate (including contribu12 tions by the candidate to such committee):

13 ‘‘(I) A notification of the first such expenditure

14 (or contribution) by which the aggregate amount of

15 personal funds expended (or contributed) with re16 spect to an election exceeds the amount of the limi17 tation established under section 315(a)(1)(A) for

18 elections in the year involved.

19 ‘‘(II) A notification of each such expenditure

20 (or contribution) which, taken together with all such

21 expenditures (and contributions) in any amount not

22 included in the most recent report under this sub23 paragraph, totals $5,000 or more.

24 ‘‘(III) A notification of the first such expendi25 ture (or contribution) by which the aggregate
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1 amount of personal funds expended with respect to

2 the election exceeds the level applicable under sec3 tion 315(j)(2) for elections in the year involved.

4 ‘‘(ii) Each of the notifications submitted under clause

5 (i)—

6 ‘‘(I) shall be submitted not later than 24 hours

7 after the expenditure or contribution which is the

8 subject of the notification is made;

9 ‘‘(II) shall include the name of the candidate,

10 the office sought by the candidate, and the date of

11 the expenditure or contribution and amount of the

12 expenditure or contribution involved; and

13 ‘‘(III) shall include the total amount of all such

14 expenditures and contributions made with respect to

15 the same election as of the date of expenditure or

16 contribution which is the subject of the notifica17 tion.’’.

18 SEC. 104. INDEXING LIMITS ON CONTRIBUTIONS.

19 (a) IN GENERAL.—Section 315(c) of the Federal

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

21 amended by adding at the end the following new para22 graph:

23 ‘‘(3)(A) The amount of each limitation established

24 under subsection (a) shall be adjusted as follows:
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1 ‘‘(i) For calendar year 1997, each such amount

2 shall be equal to the amount described in such sub3 section, increased (in a compounded manner) by the

4 percentage increase in the price index (as defined in

5 subsection (c)(2)) for each year after 1976 and be6 fore 1998.

7 ‘‘(ii) For calendar year 1999 and each second

8 subsequent year, each such amount shall be equal to

9 the amount for the second previous year (as ad10 justed under this subparagraph), increased (in a

11 compounded manner) by the percentage increase in

12 the price index for the previous year and the second

13 previous year.

14 ‘‘(B) In the case of any amount adjusted under this

15 subparagraph which is not a multiple of $500, the amount

16 shall be rounded to the nearest lowest multiple of $500.’’.

17 (b) APPLICATION OF INDEXING TO SUPPORT OF

18 CANDIDATE’S COMMITTEES.—Section 302(e)(3)(B) of

19 such Act (2 U.S.C. 432(e)(3)(B)) is amended by adding

20 at the end the following new sentence: ‘‘The amount de21 scribed in the previous sentence shall be adjusted (for

22 years beginning with 1997) in the same manner as the

23 amounts of limitations on contributions under section

24 315(a) are adjusted under section 315(c)(3).’’.
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1 (c) APPLICATION OF INDEXING TO PROVISIONS RE2 LATING TO PERSONAL FUNDS.—

3 (1) IN GENERAL.—Section 315(j) of such Act

4 (2 U.S.C. 441a(j)), as added by section 103(a), is

5 amended—

6 (A) by redesignating paragraph (3) as

7 paragraph (4); and

8 (B) by inserting after paragraph (2) the

9 following new paragraph:

10 ‘‘(3) Each of the amounts provided under paragraph

11 (1) or (2) shall be adjusted for each biennial period begin12 ning after the 1998 general election in the same manner

13 as the amounts of limitations on contributions established

14 under subsection (a) are adjusted under subsection

15 (c)(3).’’.

16 (2) CONFORMING AMENDMENT.—Section

17 304(a)(6)(B)(i) of such Act (2 U.S.C.

18 434(a)(6)(B)(i)), as added by section 103(b), is

19 amended by striking ‘‘section 315(j)(3)’’ and insert20 ing ‘‘section 315(j)(4)’’.

21 SEC. 105. PROHIBITION OF LEADERSHIP COMMITTEES.

22 (a) LEADERSHIP COMMITTEE PROHIBITION.—Sec23 tion 302 of the Federal Election Campaign Act of 1971

24 (2 U.S.C. 432) is amended by adding at the end the fol25 lowing new subsection:
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1 ‘‘(j) A candidate for Federal office or an individual

2 holding Federal office may not establish, maintain, fi3 nance, or control a political committee, other than a prin4 cipal campaign committee of the candidate or the individ5 ual.’’.

6 (b) CONFORMING AMENDMENT RELATING TO JOINT

7 FUNDRAISING.—Section 302(e)(3)(A) of such Act (2

8 U.S.C. 432(e)(3)) is amended by striking ‘‘except

9 that—’’ and all that follows and inserting the following:

10 ‘‘except that the candidate for the office of President nom11 inated by a political party may designate the national com12 mittee of such political party as a principal campaign com13 mittee, but only if that national committee maintains sep14 arate books of account with respect to its function as a

15 principal campaign committee.’’.

16 (c) EFFECTIVE DATE; TRANSITION RULE.—

17 (1) IN GENERAL.—The amendments made by

18 this section shall apply with respect to elections oc19 curring in years beginning with 1997.

20 (2) TRANSITION RULE.—

21 (A) IN GENERAL.—Notwithstanding sec22 tion 302(j) of the Federal Election Campaign

23 Act of 1971 (as added by subsection (a)), if a

24 political committee established, maintained, fi25 nanced, or controlled by a candidate for Federal
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1 office or an individual holding Federal office

2 (other than a principal campaign committee of

3 the candidate or individual) with respect to an

4 election occurring during 1996 has funds re5 maining unexpended after the 1996 general

6 election, the committee may make contributions

7 or expenditures of such funds with respect to

8 elections occurring during 1997 or 1998.

9 (B) DISBANDING COMMITTEES; TREAT10 MENT OF REMAINING FUNDS.—Any political

11 committee described in subparagraph (A) shall

12 be disbanded after filing any post-election re13 ports required under section 304 of the Federal

14 Election Campaign Act of 1971 with respect to

15 the 1998 general election. Any funds of such a

16 committee which remain unexpended after the

17 1998 general election and before the date on

18 which the committee disbands shall be returned

19 to contributors or available for any lawful pur20 pose other than use by the candidate or individ21 ual involved with respect to an election for Fed22 eral office.
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1 SEC. 106. PROHIBITING BUNDLING OF CONTRIBUTIONS TO

2 CANDIDATES BY POLITICAL ACTION COMMIT3 TEES AND LOBBYISTS.

4 Section 316 of the Federal Election Campaign Act

5 of 1971 (2 U.S.C. 441b) is amended by adding at the end

6 the following new subsection:

7 ‘‘(c)(1) No political action committee or person re8 quired to register under the Lobbying Disclosure Act of

9 1995 (2 U.S.C. 1601 et seq.) may act as an intermediary

10 or conduit with respect to a contribution to a candidate

11 for Federal office.

12 ‘‘(2) In this subsection, the term ‘political action com13 mittee’ means any political committee which is not—

14 ‘‘(A) the principal campaign committee of a

15 candidate; or

16 ‘‘(B) a political party committee.’’.

17 SEC. 107. DEFINITION OF INDEPENDENT EXPENDITURES.

18 Section 301 of the Federal Election Campaign Act

19 of 1971 (2 U.S.C. 431) is amended by striking paragraph

20 (17) and inserting the following:

21 ‘‘(17)(A) The term ‘independent expenditure’ means

22 an expenditure by a person for a communication expressly

23 advocating the election or defeat of a clearly identified

24 candidate which is not made with the cooperation or with

25 the prior consent of, or in consultation with, or at the re-
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1 quest or suggestion of, a candidate or any agent or author2 ized committee of such candidate.

3 ‘‘(B) For purposes of this paragraph—

4 ‘‘(i) ‘expressly advocating the election or defeat’

5 means the use in the communication of explicit

6 words such as ‘vote for’, ‘reelect’, ‘support’, ‘cast

7 your ballot for’, ‘vote against’, ‘defeat’, or ‘reject’,

8 accompanied by a reference in the communication to

9 one or more clearly identified candidates, or words

10 such as ‘vote’ for or against a position on an issue,

11 accompanied by a listing in the communication of

12 one or more clearly identified candidates described

13 as for or against a position on that issue;

14 ‘‘(ii) ‘which is not made with the cooperation or

15 with the prior consent of, or in consultation with, or

16 at the request or suggestion of, a candidate or any

17 agent or authorized committee of such candidate’ re18 fers to the expenditure in question for the commu19 nication made by the person; and

20 ‘‘(iii) the term ‘agent’ means any person who

21 has actual oral or written authority, either express

22 or implied, to make or authorize the making of ex23 penditures on behalf of a candidate.

24 ‘‘(C) An expenditure by a person for a communication

25 which does not contain explicit words expressly advocating
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1 the election or defeat of a clearly identified candidate shall

2 not be considered an independent expenditure.’’.

3 SEC. 108. REQUIREMENTS FOR USE OF PAYROLL DEDUC4 TIONS FOR CONTRIBUTIONS.

5 Title III of the Federal Election Campaign Act of

6 1971 (2 U.S.C. 431 et seq.) is amended by adding at the

7 end the following new section:

8 ‘‘USE OF PAYROLL DEDUCTIONS FOR CONTRIBUTIONS

9 ‘‘SEC. 323. (a) REQUIREMENTS FOR AUTHORIZATION

10 OF DEDUCTION.—

11 ‘‘(1) IN GENERAL.—No amounts withheld from

12 an individual’s wages or salary during a year may be

13 used for any contribution under this title unless

14 there is in effect an authorization in writing by the

15 individual permitting the withholding of such

16 amounts for the contribution.

17 ‘‘(2) PERIOD OF AUTHORIZATION.—An author18 ization described in this subsection may be in effect

19 with respect to an individual for such period as the

20 individual may specify (subject to cancellation under

21 paragraph (3)), except that the period may not be

22 longer than 12 months.

23 ‘‘(3) RIGHT OF CANCELLATION.—An individual

24 with an authorization in effect under this subsection

25 may cancel or revise the authorization at any time.
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1 ‘‘(b) INFORMATION PROVIDED BY WITHHOLDING

2 ENTITY.—

3 ‘‘(1) IN GENERAL.—Each entity withholding

4 wages or salary from an individual with an author5 ization in effect under subsection (a) shall provide

6 the individual with a statement that the individual

7 may at any time cancel or revise the authorization

8 in accordance with subsection (a)(3).

9 ‘‘(2) TIMING OF NOTICE.—The entity shall pro10 vide the information described in paragraph (1) to

11 an individual at the beginning of each calendar year

12 occurring during the period in which the individual’s

13 authorization is in effect.’’.

14 TITLE II—STRENGTHENING

15 POLITICAL PARTIES

16 SEC. 201. MODIFICATION OF CONTRIBUTION LIMITS AND

17 REQUIREMENTS FOR POLITICAL PARTIES.

18 (a) TREATMENT OF PARTY CONTRIBUTIONS UNDER

19 AGGREGATE INDIVIDUAL CAP.—Section 315(a)(3) of the

20 Federal Election Campaign Act (2 U.S.C. 441a(a)(3)) is

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

22 ‘‘For purposes of this paragraph, in determining the

23 amount of contributions made by an individual there shall

24 be excluded any contributions made by the individual to

25 a political party or a political party committee.’’.
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1 (b) LIMITATION AMOUNT FOR CONTRIBUTIONS TO

2 STATE POLITICAL PARTIES.—Section 315(a)(1)(B) of

3 such Act (2 U.S.C. 441a(a)(1)(B)) is amended by insert4 ing after ‘‘national’’ the following: ‘‘or State’’.

5 SEC. 202. ALLOWING POLITICAL PARTIES TO OFFSET

6 FUNDS CARRIED OVER FROM PREVIOUS

7 ELECTIONS.

8 Section 315 of the Federal Election Campaign Act

9 of 1971 (2 U.S.C. 441a), as amended by sections 101 and

10 103(a), is further amended by adding at the end the fol11 lowing new subsection:

12 ‘‘(k)(1) Subject to paragraph (2), if, in a general elec13 tion for Federal office, a candidate who is the incumbent

14 uses campaign funds carried forward from an earlier elec15 tion cycle, any political party committee may make con16 tributions to the nominee of that political party to match

17 the funds so carried forward by such incumbent. For pur18 poses of this paragraph, funds shall be considered to have

19 been carried forward if the funds represent cash on hand

20 as reported in the applicable post-general election report

21 filed under section 304(a) for the general election involved,

22 plus any amount expended on or before the filing of the

23 report for a later election, less legitimate outstanding

24 debts relating to the previous election up to the amount

25 reported.
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1 ‘‘(2) The political party contributions under para2 graph (1) may be made without regard to any limitation

3 amount otherwise applicable to such contributions made

4 under subsections (a) or (i), but a candidate may not ac5 cept contributions under this subsection in excess of the

6 total of funds carried forward by the incumbent can7 didate.’’.

8 SEC. 203. PROHIBITING USE OF NON-FEDERAL FUNDS IN

9 FEDERAL ELECTIONS.

10 Title III of the Federal Election Campaign Act of

11 1971 (2 U.S.C. 431 et seq.), as amended by section 108,

12 is further amended by adding at the end the following new

13 section:

14 ‘‘RESTRICTIONS ON USE OF NON-FEDERAL FUNDS

15 ‘‘SEC. 324. (a) PROHIBITING USE OF FUNDS IN

16 FEDERAL ELECTIONS.—No funds may be expended by a

17 political party committee for the purpose of influencing

18 an election for Federal office unless the funds are subject

19 to the limitations and prohibitions of this Act, except as

20 may be provided in this section.

21 ‘‘(b) RESTRICTIONS ON USE OF FUNDS FOR MIXED

22 ACTIVITIES.—

23 ‘‘(1) PROHIBITING USE BY NATIONAL PARTY

24 COMMITTEES.—A national committee of a political

25 party (including any subordinate committee thereof)

26 may not use any funds which are not subject to the
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1 limitations and prohibitions of this Act for any

2 mixed activity.

3 ‘‘(2) MIXED ACTIVITY DEFINED.—In this sub4 section, the term ‘mixed activity’ means any activity

5 which is both for the purpose of influencing an elec6 tion for Federal office and for any purpose unrelated

7 to influencing an election for Federal office, includ8 ing voter registration, absentee ballot programs, and

9 get-out-the-vote programs, but does not include the

10 payment of any administrative or overhead costs, in11 cluding salaries (other than payments made to indi12 viduals for get-out-the-vote activities conducted on

13 the day of an election), rent, fundraising, or commu14 nications to members of a political party.

15 ‘‘(c) RESTRICTIONS ON USE OF FUNDS FOR MIXED

16 CANDIDATE-SPECIFIC ACTIVITIES.—

17 ‘‘(1) REQUIRING ALLOCATION AMONG CAN18 DIDATES.—A political party committee may use

19 funds which are not subject to the limitations and

20 prohibitions of this Act for mixed candidate-specific

21 activities if the funds are allocated among the can22 didates involved on the basis of the time and space

23 allocated to the candidates.

24 ‘‘(2) MIXED CANDIDATE-SPECIFIC ACTIVITY DE25 FINED.—In this subsection, the term ‘mixed can-
27

•HR 3820 IH

1 didate-specific activity’ means any activity which is

2 both for the purpose of promoting a specific can3 didate or candidates in an election for Federal office

4 and for the purpose of promoting a specific can5 didate or candidates in any other election.’’.

6 SEC. 204. PERMITTING PARTIES TO HAVE UNLIMITED COM7 MUNICATION WITH MEMBERS.

8 (a) IN GENERAL.—Section 315(d) of the Federal

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

10 amended by adding at the end the following new para11 graph:

12 ‘‘(4)(A) For purposes of applying the limitations es13 tablished under paragraphs (2) and (3), in determining

14 the amount of expenditures made by a national committee

15 of a political party or a State committee of a political

16 party (including any subordinate committee of a State

17 committee), there shall be excluded any amounts expended

18 by the committee for communications to the extent the

19 communications are made to members of the party.

20 ‘‘(B) For purposes of subparagraph (A), an individ21 ual shall be considered to be a ‘member’ of a political

22 party if any of the following apply:

23 ‘‘(i) The individual is registered to vote as a

24 member of the party.
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•HR 3820 IH

1 ‘‘(ii) There is a public record that the individual

2 voted in the primary of the party during the most

3 recent primary election.

4 ‘‘(iii) The individual has made a contribution to

5 the party and the contribution has been reported to

6 the Commission (in accordance with this Act) or to

7 a State reporting agency.

8 ‘‘(iv) The individual has indicated in writing

9 that the individual is a member of the party.’’.

10 (b) FUNDS AVAILABLE FOR PARTY COMMUNICA11 TIONS.—Section 324 of such Act, as added by section 203,

12 is amended by adding at the end the following new sub13 section:

14 ‘‘(d) FUNDS FOR PARTY COMMUNICATIONS WITH

15 MEMBERS.—Subsection (a) shall not apply with respect

16 to funds expended by a political party for communications

17 to the extent the communications are made to members

18 of the party (as determined in accordance with section

19 315(d)(4)), except that any communications which are

20 both for the purpose of expressly advocating the election

21 or defeat of a specific candidate for election to Federal

22 office and for any other purpose shall be subject to alloca23 tion in the same manner as funds expended for mixed can24 didate-specific activities under subsection (c).’’.
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•HR 3820 IH

1 SEC. 205. PROMOTING STATE AND LOCAL PARTY VOLUN2 TEER AND GRASSROOTS ACTIVITY.

3 (a) ENCOURAGING STATE AND LOCAL PARTY AC4 TIVITIES.—

5 (1) CONTRIBUTIONS.—Section 301(8)(B) of the

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

7 431(8)(B)) is amended—

8 (A) by striking ‘‘and’’ at the end of clause

9 (xiii);

10 (B) by striking the period at the end of

11 clause (xiv) and inserting ‘‘; and’’; and

12 (C) by adding at the end the following new

13 clause:

14 ‘‘(xv) the payment by a State or local commit15 tee of a political party for any of the following activi16 ties:

17 ‘‘(I) The listing of the slate of the party’s

18 candidates, including the communication of the

19 slate to the public.

20 ‘‘(II) The mailing of materials for or on

21 behalf of specific candidates by volunteers (in22 cluding labeling envelopes or affixing postage or

23 other indicia to particular pieces of mail), other

24 than the mailing of materials to a commercial

25 list.
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•HR 3820 IH

1 ‘‘(III) Conducting a telephone bank for or

2 on behalf of specific candidates staffed by vol3 unteers.

4 ‘‘(IV) The distribution of collateral mate5 rials (such as pins, bumper stickers, handbills,

6 brochures, posters, party tabloids, and yard

7 signs) for or on behalf of specific candidates

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

9 (2) EXPENDITURES.—Section 301(9)(B) of

10 such Act (2 U.S.C. 431(9)(B)) is amended—

11 (A) by striking ‘‘and’’ at the end of clause

12 (ix);

13 (B) by striking the period at the end of

14 clause (x) and inserting ‘‘; and’’; and

15 (C) by adding at the end the following new

16 clause:

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

18 of a political party for any of the following activities:

19 ‘‘(I) The listing of the slate of the party’s

20 candidates, including the communication of the

21 slate to the public.

22 ‘‘(II) The mailing of materials for or on

23 behalf of specific candidates by volunteers (in24 cluding labeling envelopes or affixing postage or

25 other indicia to particular pieces of mail), other
31

•HR 3820 IH

1 than the mailing of materials to a commercial

2 list.

3 ‘‘(III) Conducting a telephone bank for or

4 on behalf of specific candidates staffed by vol5 unteers.

6 ‘‘(IV) The distribution of collateral mate7 rials (such as pins, bumper stickers, handbills,

8 brochures, posters, party tabloids, and yard

9 signs) for or on behalf of specific candidates

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

11 (3) CONFORMING AMENDMENTS.—(A) Section

12 301(8)(B)(x) of such Act (2 U.S.C. 431(8)(B)(x)) is

13 amended by striking ‘‘in connection with volunteer

14 activities on behalf of nominees of such party’’ and

15 inserting ‘‘in connection with State or local activi16 ties, other than any payment described in clause

17 (xv)’’.

18 (B) Section 301(9)(B)(viii) of such Act (2

19 U.S.C. 431(9)(B)(viii)) is amended by striking ‘‘in

20 connection with volunteer activities on behalf of

21 nominees of such party’’ and inserting ‘‘in connec22 tion with State or local activities, other than any

23 payment described in clause (xi)’’.

24 (b) FUNDS AVAILABLE FOR ACTIVITIES.—
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•HR 3820 IH

1 (1) PERMITTING USE OF NON-FEDERAL FUNDS

2 FOR MIXED ACTIVITIES.—Section 324(b) of such

3 Act, as added by section 203, is amended—

4 (A) by redesignating paragraph (2) as

5 paragraph (3); and

6 (B) by inserting after paragraph (1) the

7 following new paragraph:

8 ‘‘(2) USE BY STATE OR LOCAL PARTY COMMIT9 TEES.—A State, local, or district committee of a po10 litical party (including any subordinate committee

11 thereof) may use funds which are not subject to the

12 limitations and prohibitions of this Act for mixed ac13 tivity if the funds are allocated in accordance with

14 the process described in subsection (g).’’.

15 (2) FUNDS AVAILABLE FOR STATE AND LOCAL

16 PARTIES.—Section 324 of such Act, as added by sec17 tion 203 and as amended by section 204(b), is

18 amended by adding at the end the following new

19 subsection:

20 ‘‘(e) FUNDS AVAILABLE FOR STATE AND LOCAL

21 PARTY VOLUNTEER AND GRASSROOTS ACTIVITIES.—Sub22 section (a) shall not apply with respect to payments de23 scribed in section 301(8)(B)(xv) or section 301(9)(B)(xi),

24 except that any payments which are both for the purpose

25 of expressly advocating the election or defeat of a specific
33

•HR 3820 IH

1 candidate for election to Federal office and for any other

2 purpose shall be subject to allocation in the same manner

3 as funds expended for mixed candidate-specific activities

4 under subsection (c).’’.

5 (3) TREATMENT OF INTRA-PARTY TRANS6 FERS.—Section 324 of such Act, as added by section

7 203 and as amended by section 204(b) and para8 graph (2), is amended by adding at the end the fol9 lowing new subsection:

10 ‘‘(f) RULE OF CONSTRUCTION REGARDING INTRA11 PARTY TRANSFERS.—Nothing in this section shall be con12 strued to prohibit the transfer between and among na13 tional, State, or local party committees (including any sub14 ordinate committees thereof) of funds which are not sub15 ject to the limitations and prohibitions of this Act.’’.

16 (4) ALLOCATION PROCEDURES DESCRIBED.—

17 Section 324 of such Act, as added by section 203

18 and as amended by section 204(b) and paragraphs

19 (2) and (3), is amended by adding at the end the

20 following new subsection:

21 ‘‘(g) STATE AND LOCAL PARTY COMMITTEES; METH22 OD FOR ALLOCATING EXPENDITURES FOR MIXED ACTIVI23 TIES.—

24 ‘‘(1) GENERAL RULE.—All State and local

25 party committees except those covered by paragraph
34

•HR 3820 IH

1 (2) shall allocate their expenses for mixed activities,

2 as described in subsection (b)(2), according to the

3 ballot composition method described as follows:

4 ‘‘(A) Under this method, expenses shall be

5 allocated based on the ratio of Federal offices

6 expected on the ballot to total Federal and non7 Federal offices expected on the ballot in the

8 next general election to be held in the commit9 tee’s State or geographic area. This ratio shall

10 be determined by the number of categories of

11 Federal offices on the ballot and the number of

12 categories of non-Federal offices on the ballot,

13 as described in subparagraph (B).

14 ‘‘(B) In calculating a ballot composition

15 ratio, a State or local party committee shall

16 count the Federal offices of President, United

17 States Senator, and United States Representa18 tive, if expected on the ballot in the next gen19 eral election, as one Federal office each. The

20 committee shall count the non-Federal offices of

21 Governor, State Senator, and State Representa22 tive, if expected on the ballot in the next gen23 eral election, as one non-Federal office each.

24 The committee shall count the total of all other

25 partisan statewide executive candidates, if ex-
35

•HR 3820 IH

1 pected on the ballot in the next general election,

2 as a maximum of two non-Federal offices. State

3 party committees shall also include in the ratio

4 one additional non-Federal office if any par5 tisan local candidates are expected on the ballot

6 in any regularly scheduled election during the 2

7 year congressional election cycle. Local party

8 committees shall also include in the ratio a

9 maximum of 2 additional non-Federal offices if

10 any partisan local candidates are expected on

11 the ballot in any regularly scheduled election

12 during the 2 year congressional election cycle.

13 State and local party committees shall also in14 clude in the ratio 1 additional non-Federal of15 fice.

16 ‘‘(2) EXCEPTION FOR STATES THAT DO NOT

17 HOLD FEDERAL AND NON-FEDERAL ELECTIONS IN

18 THE SAME YEAR.—State and local party committees

19 in states that do not hold Federal and non-Federal

20 elections in the same year shall allocate the costs of

21 mixed activities according to the ballot composition

22 method described in paragraph (1), based on a ratio

23 calculated for that calendar year.’’.
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•HR 3820 IH

1 TITLE III—DISCLOSURE AND

2 ENFORCEMENT

3 SEC. 301. TIMELY REPORTING AND INCREASED DISCLO4 SURE.

5 (a) DEADLINE FOR FILING.—

6 (1) REQUIRING REPORTS FOR ALL CONTRIBU7 TIONS MADE WITHIN 20 DAYS OF ELECTION; RE8 QUIRING REPORTS TO BE MADE WITHIN 24

9 HOURS.—Section 304(a)(6)(A) of the Federal Elec10 tion Campaign Act of 1971 (2 U.S.C. 434(a)(6)(A))

11 is amended—

12 (A) by striking ‘‘after the 20th day, but

13 more than 48 hours before any election’’ and

14 inserting ‘‘during the period which begins on

15 the 20th day before an election and ends at the

16 time the polls close for such election’’; and

17 (B) by striking ‘‘48 hours’’ the second

18 place it appears and inserting the following:

19 ‘‘24 hours (or, if earlier, by midnight of the day

20 on which the contribution is deposited)’’.

21 (2) REQUIRING ACTUAL DELIVERY BY DEAD22 LINE.—

23 (A) IN GENERAL.—Section 304(a)(6) of

24 such Act (2 U.S.C. 434(a)(6)), as amended by
37

•HR 3820 IH

1 section 103(b), is further amended by adding at

2 the end the following new subparagraph:

3 ‘‘(D) Notwithstanding paragraph (5), the time at

4 which a notification or report under this paragraph is re5 ceived by the Secretary, the Commission, or any other re6 cipient to whom the notification is required to be sent shall

7 be considered the time of filing of the notification or report

8 with the recipient.’’.

9 (B) CONFORMING AMENDMENT.—Section

10 304(a)(5) of such Act (2 U.S.C. 434(a)(5)) is

11 amended by striking ‘‘paragraph (2)(A)(i) or

12 (4)(A)(ii)’’ and inserting ‘‘paragraphs (2)(A)(i),

13 (4)(A)(ii), or (6))’’.

14 (b) INCREASING ELECTRONIC DISCLOSURE.—Section

15 304(a)(6) of such Act (2 U.S.C. 434(a)(6)), as amended

16 by section 103(b) and subsection (a)(2)(A), is further

17 amended by adding at the end the following new subpara18 graph:

19 ‘‘(E)(i) The Commission shall make the information

20 contained in the reports submitted under this paragraph

21 available on the Internet and publicly available at the of22 fices of the Commission as soon as practicable (but in no

23 case later than 24 hours) after the information is received

24 by the Commission.
38

•HR 3820 IH

1 ‘‘(ii) In this subparagraph, the term ‘Internet’ means

2 the international computer network of both Federal and

3 non-Federal interoperable packet-switched data net4 works.’’.

5 (c) CHANGE IN CERTAIN REPORTING FROM A CAL6 ENDAR YEAR BASIS TO AN ELECTION CYCLE BASIS.—

7 Section 304(b) of such Act (2 U.S.C. 434(b)) is amended

8 by inserting ‘‘(or election cycle, in the case of an author9 ized committee of a candidate for Federal office)’’ after

10 ‘‘calendar year’’ each place it appears in paragraphs (2),

11 (3), (4), (6), and (7).

12 (d) CLARIFICATION OF PERMISSIBLE USE OF FAC13 SIMILE MACHINES TO FILE REPORTS.—Section

14 304(a)(11)(A) of such Act (2 U.S.C. 434(a)(11)) is

15 amended by striking ‘‘method,’’ and inserting ‘‘method

16 (including by facsimile device in the case of any report

17 required to be filed within 24 hours after the transaction

18 reported has occurred),’’.

19 (e) REQUIRING RECEIPT OF INDEPENDENT EXPEND20 ITURE REPORTS WITHIN 24 HOURS.—

21 (1) IN GENERAL.—Section 304(c)(2) of such

22 Act (2 U.S.C. 434(c)(2)) is amended in the matter

23 following subparagraph (C)—

24 (A) by striking ‘‘shall be reported’’ and in25 serting ‘‘shall be filed’’; and
39

•HR 3820 IH

1 (B) by adding at the end the following new

2 sentence: ‘‘Notwithstanding subsection (a)(5),

3 the time at which the statement under this sub4 section is received by the Secretary, the Com5 mission, or any other recipient to whom the no6 tification is required to be sent shall be consid7 ered the time of filing of the statement with the

8 recipient.’’.

9 (2) CONFORMING AMENDMENT.—Section

10 304(a)(5) of such Act (2 U.S.C. 434(a)(5)), as

11 amended by subsection (a)(2)(B), is further amend12 ed by striking ‘‘or (6)’’ and inserting ‘‘or (6), or

13 subsection (c)(2)’’.

14 (f) REQUIRING RECORD KEEPING AND REPORT OF

15 SECONDARY PAYMENTS BY CAMPAIGN COMMITTEES.—

16 (1) REPORTING.—Section 304(b)(5)(A) of such

17 Act (2 U.S.C. 434(b)(5)(A)) is amended by striking

18 the semicolon at the end and inserting the following:

19 ‘‘, and, if such person in turn makes expenditures

20 which aggregate $500 or more in an election cycle

21 to other persons (not including employees) who pro22 vide goods or services to the candidate or the can23 didate’s authorized committees, the name and ad24 dress of such other persons, together with the date,

25 amount, and purpose of such expenditures;’’.
40

•HR 3820 IH

1 (2) RECORD KEEPING.—Section 302 of such

2 Act (2 U.S.C. 432), as amended by section 105(a),

3 is further amended by adding at the end the follow4 ing new subsection:

5 ‘‘(k) A person described in section 304(b)(5)(A) who

6 makes expenditures which aggregate $500 or more in an

7 election cycle to other persons (not including employees)

8 who provide goods or services to a candidate or a can9 didate’s authorized committees shall provide to a political

10 committee the information necessary to enable the com11 mittee to report the information described in such sec12 tion.’’.

13 (3) NO EFFECT ON OTHER REPORTS.—Nothing

14 in the amendments made by this subsection may be

15 construed to affect the terms of any other record16 keeping or reporting requirements applicable to can17 didates or political committees under title III of the

18 Federal Election Campaign Act of 1971.

19 (g) INCLUDING REPORT ON CUMULATIVE CONTRIBU20 TIONS AND EXPENDITURES IN POST ELECTION RE21 PORTS.—Section 304(a)(7) of such Act (2 U.S.C.

22 434(a)(7)) is amended—

23 (1) by striking ‘‘(7)’’ and inserting ‘‘(7)(A)’’;

24 and
41

•HR 3820 IH

1 (2) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) In the case of any report required to be filed

4 by this subsection which is the first report required to be

5 filed after the date of an election, the report shall include

6 a statement of the total contributions received and expend7 itures made as of the date of the election.’’.

8 (h) INCLUDING INFORMATION ON AGGREGATE CON9 TRIBUTIONS IN REPORT ON ITEMIZED CONTRIBUTIONS.—

10 Section 304(b)(3) of such Act (2 U.S.C. 434(b)(3)) is

11 amended—

12 (1) in subparagraph (A), by inserting after

13 ‘‘such contribution’’ the following: ‘‘and the total

14 amount of all such contributions made by such per15 son with respect to the election involved’’; and

16 (2) in subparagraph (B), by inserting after

17 ‘‘such contribution’’ the following: ‘‘and the total

18 amount of all such contributions made by such com19 mittee with respect to the election involved’’.

20 SEC. 302. STREAMLINING PROCEDURES AND RULES OF

21 FEDERAL ELECTION COMMISSION.

22 (a) STANDARDS FOR COMMISSION REGULATION AND

23 JUDICIAL INTERPRETATION.—Section 307 of the Federal

24 Election Campaign Act of 1971 (2 U.S.C. 437d) is amend25 ed by adding at the end the following new subsection:
42

•HR 3820 IH

1 ‘‘(f)(1) When developing prescribed forms and mak2 ing, amending, or repealing rules pursuant to the author3 ity granted to the Commission by subsection (a)(8), the

4 Commission shall act in a manner that will have the least

5 restrictive effect on the rights of free speech and associa6 tion so protected by the First Article of Amendment to

7 the Constitution of the United States.

8 ‘‘(2) When the Commission’s actions under para9 graph (1) are challenged, a reviewing court shall hold un10 lawful and set aside any actions of the Commission that

11 do not conform with the principles set forth in paragraph

12 (1).’’.

13 (b) WRITTEN RESPONSES TO QUESTIONS.—

14 (1) IN GENERAL.—Title III of such Act (2

15 U.S.C. 431 et seq.) is amended by inserting after

16 section 308 the following new section:

17 ‘‘OTHER WRITTEN RESPONSES TO QUESTIONS

18 ‘‘SEC. 308A. (a) PERMITTING RESPONSES.—In addi19 tion to issuing advisory opinions under section 308, the

20 Commission shall issue written responses pursuant to this

21 section with respect to a written request concerning the

22 application of this Act, chapter 95 or chapter 96 of the

23 Internal Revenue Code of 1986, a rule or regulation pre24 scribed by the Commission, or an advisory opinion issued

25 by the Commission under section 308, with respect to a

26 specific transaction or activity by the person, if the Com-
43

•HR 3820 IH

1 mission finds the application of the Act, chapter, rule, reg2 ulation, or advisory opinion to the transaction or activity

3 to be clear and unambiguous.

4 ‘‘(b) PROCEDURE FOR RESPONSE.—

5 ‘‘(1) ANALYSIS BY STAFF.—The staff of the

6 Commission shall analyze each request submitted

7 under this section. If the staff believes that the

8 standard described in subsection (a) is met with re9 spect to the request, the staff shall circulate a state10 ment to that effect together with a draft response to

11 the request to the members of the Commission.

12 ‘‘(2) ISSUANCE OF RESPONSE.—Upon the expi13 ration of the 3-day period beginning on the date the

14 statement and draft response is circulated (excluding

15 weekends or holidays), the Commission shall issue

16 the response, unless during such period any member

17 of the Commission objects to issuing the response.

18 ‘‘(c) EFFECT OF RESPONSE.—

19 ‘‘(1) SAFE HARBOR.—Notwithstanding any

20 other provisions of law, any person who relies upon

21 any provision or finding of a written response issued

22 under this section and who acts in good faith in ac23 cordance with the provisions and findings of such re24 sponse shall not, as a result of any such act, be sub25 ject to any sanction provided by this Act or by chap-
44

•HR 3820 IH

1 ter 95 or chapter 96 of the Internal Revenue Code

2 of 1986.

3 ‘‘(2) NO RELIANCE BY OTHER PARTIES.—Any

4 written response issued by the Commission under

5 this section may only be relied upon by the person

6 involved in the specific transaction or activity with

7 respect to which such response is issued, and may

8 not be applied by the Commission with respect to

9 any other person or used by the Commission for en10 forcement or regulatory purposes.

11 ‘‘(d) PUBLICATION OF REQUESTS AND RE12 SPONSES.—The Commission shall make public any re13 quest for a written response made, and the responses is14 sued, under this section. In carrying out this subsection,

15 the Commission may not make public the identity of any

16 person submitting a request for a written response unless

17 the person specifically authorizes to Commission to do so.

18 ‘‘(e) COMPILATION OF INDEX.—The Commission

19 shall compile, publish, and regularly update a complete

20 and detailed index of the responses issued under this sec21 tion through which responses may be found on the basis

22 of the subjects included in the responses.’’.

23 (2) CONFORMING AMENDMENT.—Section

24 307(a)(7) of such Act (2 U.S.C. 437d(a)(7)) is
45

•HR 3820 IH

1 amended by striking ‘‘of this Act’’ and inserting

2 ‘‘and other written responses under section 308A’’.

3 (c) OPPORTUNITY FOR ORAL ARGUMENTS BEFORE

4 COMMISSION.—Section 309(a)(3) of such Act (2 U.S.C.

5 437g(a)(3)) is amended—

6 (1) by striking ‘‘(3)’’ and inserting ‘‘(3)(A)’’;

7 and

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

10 ‘‘(B) If a respondent submits a brief under subpara11 graph (A), the respondent may submit (at the time of sub12 mitting the brief) a request to present an oral argument

13 in support of the respondent’s brief before the Commis14 sion. If at least 2 members of the Commission approve

15 of the request, the respondent shall be permitted to appear

16 before the Commission in open session and make an oral

17 presentation in support of the brief and respond to ques18 tions of members of the Commission. Such appearance

19 shall take place at a time specified by the Commission dur20 ing the 30-day period which begins on the date the request

21 is approved, and the Commission may limit the length of

22 the respondent’s appearance to such period of time as the

23 Commission considers appropriate. Any information pro24 vided by the respondent during the appearance shall be
46

•HR 3820 IH

1 considered by the Commission before proceeding under

2 paragraph (4).’’.

3 (d) INDEX OF ADVISORY OPINIONS.—

4 (1) IN GENERAL.—Section 308 of the Federal

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

6 amended by adding at the end the following new

7 subsection:

8 ‘‘(e) The Commission shall compile, publish, and reg9 ularly update a complete and detailed index of the advisory

10 opinions issued under this section through which opinions

11 may be found on the basis of the subjects included in the

12 opinions.’’.

13 (2) EFFECTIVE DATE.—The Federal Election

14 Commission shall first publish the index of advisory

15 opinions described in section 308(e) of the Federal

16 Election Campaign Act of 1971 (as added by para17 graph (1)) not later than 60 days after the date of

18 the enactment of this Act.

19 (e) STANDARD FOR INITIATION OF ACTIONS.—Sec20 tion 309(a)(2) of the Federal Election Campaign Act of

21 1971 (2 U.S.C. 437g(a)(2)) is amended by striking ‘‘it

22 has reason to believe’’ and all that follows through ‘‘of

23 1954,’’ and inserting the following: ‘‘it has a reason to

24 investigate a possible violation of this Act or of chapter

25 95 or chapter 96 of the Internal Revenue Code of 1986
47

•HR 3820 IH

1 that has occurred or is about to occur (based on the same

2 criteria applicable under this paragraph prior to the enact3 ment of the Campaign Finance Reform Act of 1996),’’.

4 (f) APPLICATION OF AGGREGATE CONTRIBUTION

5 LIMIT ON CALENDAR YEAR BASIS DURING NON-ELEC6 TION YEARS.—Section 315(a)(3) of the Federal Election

7 Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is amended

8 by striking the second sentence.

9 (g) REPEAL REPORT BY SECRETARY OF COMMERCE

10 ON DISTRICT-SPECIFIC VOTING AGE POPULATION.—Sec11 tion 315(e) of the Federal Election Campaign Act of 1971

12 (2 U.S.C. 441a(e)) is amended by striking ‘‘States, of each

13 State, and of each congressional district’’ and inserting

14 ‘‘States and of each State’’.

15 (h) COMMERCIALLY REASONABLE LOANS NOT TO BE

16 TREATED AS CONTRIBUTIONS BY LENDER.—Section

17 301(8)(B)(vii) of the Federal Election Campaign Act of

18 1971 (2 U.S.C. 431(8)(B)(vii)) is amended—

19 (1) by striking ‘‘or a depository’’ and inserting

20 ‘‘a depository’’; and

21 (2) by inserting after ‘‘Administration,’’ the fol22 lowing: ‘‘or any other commercial lender,’’.

23 (i) ABOLITION OF EX OFFICIO MEMBERSHIP OF

24 CLERK OF HOUSE OF REPRESENTATIVES ON COMMIS-
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1 SION.—Section 306(a) of the Federal Election Campaign

2 Act of 1971 (2 U.S.C. 437c(a)) is amended—

3 (1) in paragraph (1), by striking ‘‘and the

4 Clerk’’ and all that follows through ‘‘designees’’ and

5 inserting ‘‘or the designee of the Secretary’’; and

6 (2) in paragraphs (3), (4), and (5), by striking

7 ‘‘and the Clerk of the House of Representatives’’

8 each place it appears.

9 (j) GRANTING COMMISSION AUTHORITY TO WAIVE

10 REPORTING REQUIREMENTS.—Section 304 of such Act (2

11 U.S.C. 434), as amended by section 101(b), is further

12 amended by adding at the end the following new sub13 section:

14 ‘‘(e) The Commission may by unanimous vote relieve

15 any person or category of persons of the obligation to file

16 any of the reports required by this section, or may change

17 the due dates of any of the reports required by this sec18 tion, if it determines that such action is consistent with

19 the purposes of this title. The Commission may waive re20 quirements to file reports or change due dates in accord21 ance with this subsection through a rule of general appli22 cability or, in a specific case, by notifying all the political

23 committees involved.’’.

24 (k) PERMITTING CORPORATIONS TO COMMUNICATE

25 WITH ALL EMPLOYEES.—
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1 (1) IN GENERAL.—Section 316(b) of the Fed2 eral Election Campaign Act of 1971 (2 U.S.C.

3 441b(b)) is amended by striking ‘‘executive or ad4 ministrative personnel’’ each place it appears in

5 paragraphs (2)(A), (2)(B), (4)(A)(i), (4)(D), and (5)

6 and inserting ‘‘officers or employees’’.

7 (2) CONFORMING AMENDMENT.—Section

8 316(b) of such Act is amended by striking para9 graph (7).

10 (l) PERMITTING UNLIMITED SOLICITATIONS BY COR11 PORATIONS OR LABOR ORGANIZATIONS; PROTECTING

12 CONFIDENTIALITY OF CONTRIBUTIONS NOT GREATER

13 THAN $100.—Section 316(b) of the Federal Election

14 Campaign Act of 1971 (2 U.S.C. 441b(b)(3)), as amended

15 by subsection (k)(2), is amended—

16 (1) in paragraph (4)(A), by striking ‘‘(B), (C),’’

17 and inserting ‘‘(C)’’;

18 (2) in paragraph (4)(A)(ii), by striking the pe19 riod at the end and inserting the following: ‘‘, its of20 ficers or employees and their families, employees

21 who are not members and their families, and offi22 cers, employees, or stockholders of a corporation

23 (and their families) in which the labor organization

24 represents members working for the corporation.’’;
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1 (3) in paragraph (4), by striking subparagraph

2 (B); and

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

4 paragraph:

5 ‘‘(7)(A) Any corporation or labor organization (or

6 separate segregated fund established by such a corpora7 tion or such a labor organization) making solicitations of

8 contributions shall make such solicitations in a manner

9 that ensures that the corporation, organization, or fund

10 cannot determine who makes a contribution of $100 or

11 less as a result of such solicitation and who does not make

12 such a contribution.

13 ‘‘(B) Subparagraph (A) shall not apply with respect

14 to any solicitation of contributions of a corporation from

15 its stockholders.’’.

16 (m) GREATER PROTECTION AGAINST FORCE AND

17 REPRISALS.—Section 316(b)(3) of the Federal Election

18 Campaign Act of 1971 (2 U.S.C. 441b(b)(3)), is amend19 ed—

20 (1) by redesignating subparagraphs (A) through

21 (C) as subparagraphs (B) through (D); and

22 (2) by inserting before subparagraph (B) (as so

23 redesignated) the following new subparagraph:

24 ‘‘(A) for such a fund to cause another person

25 to make a contribution or expenditure by physical
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1 force, job discrimination, financial reprisals, or the

2 threat of force, job discrimination, or financial re3 prisal;’’.

4 (n) REQUIRING COMPLAINANT TO PROVIDE NOTICE

5 TO RESPONDENTS.—Section 309(a)(1) of the Federal

6 Election Campaign Act of 1971 (2 U.S.C. 437g(a)(1)) is

7 amended by striking the third sentence and inserting the

8 following: ‘‘The complaint shall include the names and ad9 dresses of persons alleged to have committed such a viola10 tion. Within 5 days after receipt of the complaint, the

11 Commission shall provide written notice of the complaint

12 together with a copy of the complaint to each person de13 scribed in the previous sentence, except that if the Com14 mission determines that it is not necessary for a person

15 described in the previous sentence to receive a copy of the

16 complaint, the Commission shall provide the person with

17 written notice that the complaint has been filed, together

18 with written instructions on how to obtain a copy of the

19 complaint without charge from the Commission.’’.

20 (o) STANDARD FORM FOR COMPLAINTS; STRONGER

21 DISCLAIMER LANGUAGE.—

22 (1) STANDARD FORM.—Section 309(a)(1) of

23 the Federal Election Campaign Act of 1971 (2

24 U.S.C. 437g(a)(1)) is amended by inserting after

25 ‘‘shall be notarized,’’ the following: ‘‘shall be in a
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1 standard form prescribed by the Commission, shall

2 not include (but may refer to) extraneous mate3 rials,’’.

4 (2) DISCLAIMER LANGUAGE.—Section

5 309(a)(1) of such Act (2 U.S.C. 437g(a)(1)) is

6 amended—

7 (A) by striking ‘‘(a)(1)’’ and inserting

8 ‘‘(a)(1)(A)’’; and

9 (B) by adding at the end the following new

10 subparagraph:

11 ‘‘(B) The written notice of a complaint provided by

12 the Commission under subparagraph (A) to a person al13 leged to have committed a violation referred to in the com14 plaint shall include a cover letter (in a form prescribed

15 by the Commission) and the following statement: ‘The en16 closed complaint has been filed against you with the Fed17 eral Election Commission. The Commission has not veri18 fied or given official sanction to the complaint. The Com19 mission will make no decision to pursue the complaint for

20 a period of at least 15 days from your receipt of this com21 plaint. You may, if you wish, submit a written statement

22 to the Commission explaining why the Commission should

23 take no action against you based on this complaint. If the

24 Commission should decide to investigate, you will be noti25 fied and be given further opportunity to respond.’’’.
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1 (p) BANNING ACCEPTANCE OF CASH CONTRIBU2 TIONS GREATER THAN $100.—Section 315 of the Federal

3 Election Campaign Act of 1971 (2 U.S.C. 441a), as

4 amended by sections 101, 103(a)(1), and 202, is further

5 amended by adding at the end the following new sub6 section:

7 ‘‘(l) No candidate or political committee may accept

8 any contributions of currency of the United States or cur9 rency of any foreign country from any person which, in

10 the aggregate, exceed $100.’’.

11 (q) APPOINTMENT AND SERVICE OF STAFF DIREC12 TOR AND GENERAL COUNSEL OF COMMISSION.—

13 (1) APPOINTMENT; LENGTH OF TERM OF SERV14 ICE.—

15 (A) IN GENERAL.—The first sentence of

16 section 306(f)(1) of the Federal Election Cam17 paign Act of 1971 (2 U.S.C. 437c(f)(1)) is

18 amended by striking ‘‘by the Commission’’ and

19 inserting the following: ‘‘by an affirmative vote

20 of not less than 4 members of the Commission

21 and may not serve for a term of more than 4

22 consecutive years without reappointment in ac23 cordance with this paragraph’’.

24 (B) EFFECTIVE DATE.—The amendment

25 made by subparagraph (A) shall apply with re-
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1 spect to any individual serving as the staff di2 rector or general counsel of the Federal Elec3 tion Commission on or after January 1, 1997,

4 without regard to whether or not the individual

5 served as staff director or general counsel prior

6 to such date.

7 (2) TREATMENT OF INDIVIDUALS FILLING VA8 CANCIES; TERMINATION OF AUTHORITY UPON EXPI9 RATION OF TERM.—Section 306(f)(1) of such Act (2

10 U.S.C. 437c(f)(1)) is amended by inserting after the

11 first sentence the following new sentences: ‘‘An indi12 vidual appointed as a staff director or general coun13 sel to fill a vacancy occurring other than by the expi14 ration of a term of office shall be appointed only for

15 the unexpired term of the individual he or she suc16 ceeds. An individual serving as staff director or gen17 eral counsel may not serve in any capacity on behalf

18 of the Commission after the expiration of the indi19 vidual’s term unless reappointed in accordance with

20 this paragraph.’’.

21 (3) APPOINTMENT OF ADDITIONAL STAFF.—

22 (A) IN GENERAL.—The last sentence of

23 section 306(f)(1) of such Act (2 U.S.C.

24 437c(f)(1)) is amended by inserting ‘‘not less

25 than 4 members of’’ after ‘‘approval of’’.
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1 (B) EFFECTIVE DATE.—The amendment

2 made by subparagraph (A) shall apply with re3 spect to personnel appointed on or after Janu4 ary 1, 1997.

5 (r) ENCOURAGING CITIZEN GRASSROOTS ACTIVITY

6 ON BEHALF OF FEDERAL CANDIDATES.—

7 (1) EXEMPTION OF INDIVIDUAL CONTRIBU8 TIONS UNDER $100.—Section 301(8)(B) of the Fed9 eral Election Campaign Act of 1971 (2 U.S.C.

10 431(8)(B)), as amended by section 205(a), is further

11 amended—

12 (A) by striking ‘‘and’’ at the end of clause

13 (xiv);

14 (B) by striking the period at the end of

15 clause (xv) and inserting ‘‘; and’’; and

16 (C) by adding at the end the following new

17 clause:

18 ‘‘(xvi) any payment of funds on behalf of a can19 didate (whether in cash or in kind, but not including

20 a direct payment of cash to a candidate or a political

21 committee of the candidate) by an individual from

22 the individual’s personal funds which in the aggre23 gate does not exceed $100, if the funds are used for

24 activities carried out by the individual or a member

25 of the individual’s family.’’.
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1 (2) EXEMPTION OF INDIVIDUAL EXPENDITURES

2 UNDER $100.—Section 301(9)(B) of the Federal

3 Election Campaign Act of 1971 (2 U.S.C.

4 431(9)(B)), as amended by section 205(b), is

5 amended—

6 (A) by striking ‘‘and’’ at the end of clause

7 (x);

8 (B) by striking the period at the end of

9 clause (xi) and inserting ‘‘; and’’; and

10 (C) by adding at the end the following new

11 clause:

12 ‘‘(xii) any payment of funds on behalf of a can13 didate (whether in cash or in kind, but not including

14 a direct payment of cash to a candidate or a political

15 committee of the candidate) by an individual from

16 the individual’s personal funds which in the aggre17 gate does not exceed $100, if the funds are used for

18 activities carried out by the individual or a member

19 of the individual’s family.’’.

20 (s) PERMITTING PARTNERSHIPS TO SOLICIT CON21 TRIBUTIONS AND PAY ADMINISTRATIVE COSTS OF POLIT22 ICAL COMMITTEES IN SAME MANNER AS CORPORATIONS

23 AND LABOR UNIONS.—

24 (1) TREATMENT OF CONTRIBUTIONS.—Section

25 301(8)(B) of the Federal Election Campaign Act (2
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1 U.S.C. 431(8)(B)), as amended by section 205(a)

2 and subsection (r)(1), is amended—

3 (A) by striking ‘‘and’’ at the end of clause

4 (xv);

5 (B) by striking the period at the end of

6 clause (xvi) and inserting ‘‘; and’’; and

7 (C) by adding at the end the following new

8 clause:

9 ‘‘(xvii) any payment made or obligation in10 curred by a partnership in the establishment and

11 maintenance of a political committee, the adminis12 tration of such a political committee, or the solicita13 tion of contributions to such committee.’’.

14 (2) TREATMENT OF EXPENDITURES.—Section

15 301(9)(B) of such Act (2 U.S.C. 431(9)(B)), as

16 amended by section 205(b) and subsection (r)(2), is

17 amended—

18 (A) by striking ‘‘and’’ at the end of clause

19 (xi);

20 (B) by striking the period at the end of

21 clause (xii) and inserting ‘‘; and’’; and

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

23 clause:

24 ‘‘(xiii) any payment made or obligation incurred

25 by a partnership in the establishment and mainte-
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1 nance of a political committee, the administration of

2 such a political committee, or the solicitation of con3 tributions to such committee.’’.

4 TITLE IV—WORKER RIGHT TO

5 KNOW

6 SEC. 401. FINDINGS.

7 The Congress finds the following:

8 (1) The United States Supreme Court an9 nounced in the landmark decision, Communications

10 Workers of America v. Beck (487 U.S. 735), that

11 employees who work under a union security agree12 ment, and are required to pay union dues as a con13 dition of employment, may not be forced to contrib14 ute through such dues to union-supported political,

15 legislative, social, or charitable causes with which

16 they disagree, and may only be required to pay dues

17 related to collective bargaining, contract administra18 tion, and grievance adjustment necessary to per19 forming the duties of exclusive representation.

20 (2) Little action has been taken by the National

21 Labor Relations Board to facilitate the ability of em22 ployees to exercise their right to object to the use of

23 their union dues for political, legislative, social, or

24 charitable purposes, or other activities not necessary

25 to performing the duties of the exclusive representa-
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1 tive of employees in dealing with the employer on

2 labor-management issues, and the Board only re3 cently issued its first ruling implementing the Beck

4 decision nearly 8 years after the Supreme Court is5 sued the opinion.

6 (3) The evolution of the right enunciated in the

7 Beck decision has diminished its meaningfulness be8 cause employees are forced to forego critical work9 place rights bearing on their economic well-being in

10 order to object to the use of their dues for purposes

11 unrelated to collective bargaining, to rely on the very

12 organization they are challenging to make the deter13 mination regarding the amount of dues necessary to

14 the union’s representational function, and do not

15 have access to clear and concise financial records

16 that provide an accurate accounting of how union

17 dues are spent.

18 SEC. 402. PURPOSE.

19 The purpose of this title is to ensure that workers

20 who are required to pay union dues as a condition of em21 ployment have adequate information about how the money

22 they pay in dues to a union is spent and to remove obsta23 cles to the ability of working people to exercise their right

24 to object to the use of their dues for political, legislative,

25 social, or charitable causes with which they disagree, or
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1 for other activities not necessary to performing the duties

2 of the exclusive representative of the employees in dealing

3 with the employer on labor-management issues.

4 SEC. 403. WORKER CHOICE.

5 (a) RIGHTS OF EMPLOYEES.—Section 7 of the Na6 tional Labor Relations Act (29 U.S.C. 157) is amended

7 by striking ‘‘membership’’ and all that follows and insert8 ing the following: ‘‘the payment to a labor organization

9 of dues or fees related to collective bargaining, contract

10 administration, or grievance adjustment necessary to per11 forming the duties of exclusive representation as a condi12 tion of employment as authorized in section 8(a)(3).’’.

13 (b) UNFAIR LABOR PRACTICES.—Section 8(a)(3) of

14 such Act (29 U.S.C. 158(a)(3)) is amended by striking

15 ‘‘membership therein’’ and inserting ‘‘the payment to such

16 labor organization of dues or fees related to collective bar17 gaining, contract administration, or grievance adjustment

18 necessary to performing the duties of exclusive representa19 tion’’.

20 SEC. 404. WORKER CONSENT.

21 (a) WRITTEN AGREEMENT.—Section 8 of the Na22 tional Labor Relations Act (29 U.S.C. 158) is amended

23 by adding at the end the following:

24 ‘‘(h) An employee subject to an agreement between

25 an employer and a labor organization requiring the pay-
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1 ment of dues or fees to such organization as authorized

2 in section 8(a)(3) may not be required to pay to such orga3 nization, nor may such organization accept payment of,

4 any dues or fees not related to collective bargaining, con5 tract administration, or grievance adjustment necessary to

6 performing the duties of exclusive representation unless

7 the employee has agreed to pay such dues or fees in a

8 signed written agreement that must be renewed between

9 the first day of September and the first day of October

10 of each year. Such signed written agreement shall include

11 a ratio of the dues or fees related to collective bargaining,

12 contract administration, or grievance adjustment nec13 essary to performing the duties of exclusive representation

14 and the dues or fees related to other purposes.’’.

15 (b) WRITTEN ASSIGNMENT.—Section 302(c)(4) of

16 the Labor Management Relations Act, 1947 (29 U.S.C.

17 186(c)(4)) is amended by inserting before the semicolon

18 the following: ‘‘: Provided further, That no amount may

19 be deducted for dues unrelated to collective bargaining,

20 contract administration, or grievance adjustment nec21 essary to performing the duties of exclusive representation

22 unless a written assignment authorizes such a deduction’’.
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1 SEC. 405. WORKER NOTICE.

2 Section 8 of the National Labor Relations Act (29

3 U.S.C. 158), as amended by section 404(a), is further

4 amended by adding at the end the following:

5 ‘‘(i) An employer shall be required to post a notice,

6 of such size and in such form as the Board shall prescribe,

7 in conspicuous places in and about its plants and offices,

8 including all places where notices to employees are cus9 tomarily posted, informing employees of their rights under

10 section 7 of this Act and clarifying to employees that an

11 agreement requiring the payment of dues or fees to a labor

12 organization as a condition of employment as authorized

13 in subsection (a)(3) may only require that employees pay

14 to such organization any dues or fees related to collective

15 bargaining, contract administration, or grievance adjust16 ment necessary to performing the duties of exclusive rep17 resentation.’’.

18 SEC. 406. DISCLOSURE TO WORKERS.

19 (a) EXPENSES REPORTING.—Section 201(b) of the

20 Labor-Management Reporting and Disclosure Act of 1959

21 (29 U.S.C. 431(b)) is amended by adding at the end the

22 following new sentence: ‘‘Every labor organization shall be

23 required to attribute and report expenses by function clas24 sification in such detail as necessary to allow its members

25 to determine whether such expenses were related to collec26 tive bargaining, contract administration, or grievance ad-
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1 justment necessary to performing the duties of exclusive

2 representation or were related to other purposes.’’.

3 (b) DISCLOSURE.—Section 201(c) of the Labor-Man4 agement Reporting and Disclosure Act of 1959 (29 U.S.C.

5 431(c)) is amended—

6 (1) by inserting ‘‘and employees required to pay

7 any dues or fees to such organization’’ after ‘‘mem8 bers’’; and

9 (2) inserting ‘‘or employee required to pay any

10 dues or fees to such organization’’ after ‘‘member’’

11 each place it appears.

12 (c) REGULATIONS.—The Secretary of Labor shall

13 prescribe such regulations as are necessary to carry out

14 the amendments made by this section not later than 120

15 days after the date of the enactment of this Act.

16 SEC. 407. CONSTRUCTION.

17 Nothing in this title shall be construed to affect sec18 tion 14(b) of the National Labor Relations Act or the con19 current jurisdiction of Federal district courts over claims

20 that a labor organization has breached its duty of fair rep21 resentation with regard to the collection or expenditure of

22 dues or fees.

23 SEC. 408. EFFECTIVE DATE.

24 This title shall take effect on the date of enactment,

25 except that the requirements contained in the amendments
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1 made by sections 404 and 405 shall take effect 60 days

2 after the date of the enactment of this Act.

3 TITLE V—GENERAL PROVISIONS

4 SEC. 501. EFFECTIVE DATE.

5 Except as otherwise specifically provided, this Act

6 and the amendments made by this Act shall take effect

7 January 1, 1997.

8 SEC. 502. SEVERABILITY.

9 If any provision of this Act or any amendment made

10 by this Act, or the application thereof to any person or

11 circumstance, is held invalid, the validity of the remainder

12 of the Act and the application of such provision to other

13 persons and circumstances shall not be affected thereby.

14 SEC. 503. EXPEDITED COURT REVIEW.

15 (a) RIGHT TO BRING ACTION.—The Federal Elec16 tion Commission, a political committee under title III of

17 the Federal Election Campaign Act of 1971, or any indi18 vidual eligible to vote in any election for the office of Presi19 dent of the United States may institute an action in an

20 appropriate district court of the United States (including

21 an action for declaratory judgment) as may be appropriate

22 to construe the constitutionality of any provision of this

23 Act or any amendment made by this Act.

24 (b) HEARING BY THREE-JUDGE COURT.—Upon the

25 institution of an action described in subsection (a), a dis-
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1 trict court of three judges shall immediately be convened

2 to decide the action pursuant to section 2284 of title 28,

3 United States Code. Such action shall be advanced on the

4 docket and expedited to the greatest extent possible.

5 (c) APPEAL OF INITIAL DECISION TO SUPREME

6 COURT.—An appeal may be taken directly to the Supreme

7 Court of the United States from any interlocutory order

8 or final judgment, decree, or order issued by the court of

9 3 judges convened pursuant to subsection (b) in an action

10 described in subsection (a). Such appeal shall be brought

11 not later than 20 days after the issuance by the court of

12 the judgment, decree, or order.

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

14 Supreme Court shall accept jurisdiction over, advance on

15 the docket, and expedite to the greatest extent possible

16 an appeal taken pursuant to subsection (c).

Æ