I

107TH CONGRESS

1ST SESSION H. R. 1150

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

of campaigns for elections for Federal office, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 21, 2001

Mr. HUTCHINSON (for himself, Mr. BRADY of Texas, Mr. MORAN of Kansas,

Mr. HULSHOF, and Mr. PETRI) introduced the following bill; which was

referred to the Committee on House Administration, and in addition to

the Committees on Education and the Workforce, and the Judiciary, 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 campaigns for elections for Federal office, 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 Integrity

5 Act of 2001’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents of this Act is as follows:
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Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—SOFT MONEY AND EXPENDITURES OF POLITICAL

PARTIES AND CANDIDATES

Sec. 101. Ban on soft money of national political parties and candidates.

Sec. 102. Repeal of limitations on amount of coordinated expenditures by political parties.

TITLE II—REVISION OF CONTRIBUTION LIMITS

Sec. 201. Increase in contribution limits.

Sec. 202. Indexing of contribution limits.

TITLE III—EXPANDING DISCLOSURE OF CAMPAIGN FINANCE

INFORMATION

Sec. 301. Disclosure of certain communications.

Sec. 302. Requiring monthly filing of reports.

Sec. 303. Software for filing of reports.

TITLE IV—STRENGTHENING ENFORCEMENT AND

ADMINISTRATION OF FEDERAL ELECTION COMMISSION

Sec. 401. Standards for initiation of actions and written responses by Federal

Election Commission.

Sec. 402. Banning acceptance of cash contributions greater than $100.

Sec. 403. Deposit of certain contributions and donations to be returned to donors in Treasury account.

Sec. 404. Abolition of ex officio membership of Clerk of House of Representatives and Secretary of Senate on Commission.

Sec. 405. Broader prohibition against force and reprisals.

Sec. 406. Signature authority of members of Commission for subpoenas and

notification of intent to seek additional information.

Sec. 407. Making alternative procedures for imposition of penalties for reporting violations permanent.

TITLE V—MISCELLANEOUS PROVISIONS

Sec. 501. Codification of Beck decision.

Sec. 502. Prohibition of solicitation of political party soft money in Federal

buildings.

Sec. 503. Filing of Senate reports with the Federal Election Commission.

TITLE VI—EFFECTIVE DATE

Sec. 601. Effective date.
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1 TITLE I—SOFT MONEY AND EX2 PENDITURES OF POLITICAL

3 PARTIES AND CANDIDATES

4 SEC. 101. BAN ON SOFT MONEY OF NATIONAL POLITICAL

5 PARTIES AND CANDIDATES.

6 Title III of the Federal Election Campaign Act of

7 1971 (2 U.S.C. 431 et seq.) is amended by adding at the

8 end the following new section:

9 ‘‘BAN ON USE OF SOFT MONEY BY NATIONAL POLITICAL

10 PARTIES AND CANDIDATES

11 ‘‘SEC. 323. (a) NATIONAL PARTIES.—A national

12 committee of a political party, including the national con13 gressional campaign committees of a political party, and

14 any officers or agents of such party committees, may not

15 solicit, receive, or direct any contributions, donations, or

16 transfers of funds, or spend any funds, which are not sub17 ject to the limitations, prohibitions, and reporting require18 ments of this Act. This subsection shall apply to any entity

19 that is established, financed, maintained, or controlled (di20 rectly or indirectly) by, or acting on behalf of, a national

21 committee of a political party, including the national con22 gressional campaign committees of a political party, and

23 any officers or agents of such party committees.

24 ‘‘(b) CANDIDATES.—
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1 ‘‘(1) IN GENERAL.—No candidate for Federal

2 office, individual holding Federal office, or any agent

3 of such candidate or officeholder may solicit, receive,

4 or direct—

5 ‘‘(A) any funds in connection with any

6 Federal election unless such funds are subject

7 to the limitations, prohibitions and reporting re8 quirements of this Act;

9 ‘‘(B) any funds that are to be expended in

10 connection with any election for other than a

11 Federal office unless such funds are not in ex12 cess of the amounts permitted with respect to

13 contributions to Federal candidates and polit14 ical committees under section 315(a)(1) and

15 (2), and are not from sources prohibited from

16 making contributions by this Act with respect

17 to elections for Federal office; or

18 ‘‘(C) any funds on behalf of any person

19 which are not subject to the limitations, prohi20 bitions, and reporting requirements of this Act

21 if such funds are for the purpose of financing

22 any activity on behalf of a candidate for elec23 tion for Federal office or any communication

24 which refers to a clearly identified candidate for

25 election for Federal office.
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1 ‘‘(2) EXCEPTION FOR CERTAIN ACTIVITIES.—

2 Paragraph (1) shall not apply to—

3 ‘‘(A) the solicitation or receipt of funds by

4 an individual who is a candidate for a non-Fed5 eral office if such activity is permitted under

6 State law for such individual’s non-Federal

7 campaign committee; or

8 ‘‘(B) the attendance by an individual who

9 holds Federal office or is a candidate for elec10 tion for Federal office at a fundraising event

11 for a State or local committee of a political

12 party of the State which the individual rep13 resents or seeks to represent as a Federal of14 ficeholder, if the event is held in such State.

15 ‘‘(c) PROHIBITING TRANSFERS OF NON-FEDERAL

16 FUNDS BETWEEN STATE PARTIES.—A State committee

17 of a political party may not transfer any funds to a State

18 committee of a political party of another State unless the

19 funds are subject to the limitations, prohibitions, and re20 porting requirements of this Act.

21 ‘‘(d) APPLICABILITY TO FUNDS FROM ALL

22 SOURCES.—This section shall apply with respect to funds

23 of any individual, corporation, labor organization, or other

24 person.’’.
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1 SEC. 102. REPEAL OF LIMITATIONS ON AMOUNT OF CO2 ORDINATED EXPENDITURES BY POLITICAL

3 PARTIES.

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

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

6 amended by striking paragraphs (2) and (3).

7 (b) CONFORMING AMENDMENTS.—Section 315(d)(1)

8 of such Act (2 U.S.C. 441a(d)(1)) is amended—

9 (1) by striking ‘‘(d)(1)’’ and inserting ‘‘(d)’’;

10 and

11 (2) by striking ‘‘, subject to the limitations con12 tained in paragraphs (2) and (3) of this subsection’’.

13 TITLE II—REVISION OF

14 CONTRIBUTION LIMITS

15 SEC. 201. INCREASE IN CONTRIBUTION LIMITS.

16 (a) LIMITS ON CONTRIBUTIONS BY INDIVIDUALS.—

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

18 1971 (2 U.S.C. 441a(a)) is amended—

19 (1) in paragraph (1)—

20 (A) in subparagraph (A), by striking

21 ‘‘$1,000’’ and inserting ‘‘$3,000’’, and

22 (B) in subparagraph (B), by striking

23 ‘‘$20,000’’ and inserting ‘‘$60,000’’; and

24 (2) in paragraph (3)—

25 (A) by striking ‘‘$25,000’’ and inserting

26 ‘‘$100,000’’, and
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1 (B) by striking the second sentence.

2 (b) LIMITS ON CONTRIBUTIONS BY MULTI3 CANDIDATE COMMITTEES.—Section 315(a)(2) of such Act

4 (2 U.S.C. 441a(a)(2)) is amended—

5 (1) in subparagraph (A)—

6 (A) by striking ‘‘$5,000’’ and inserting

7 ‘‘$7,500’’, and

8 (B) by inserting ‘‘except as provided in

9 subparagraph (D),’’ before ‘‘to any candidate’’;

10 (2) in subparagraph (B)—

11 (A) by striking ‘‘$15,000’’ and inserting

12 ‘‘$45,000’’, and

13 (B) by striking ‘‘or’’ at the end;

14 (3) in subparagraph (C), by striking ‘‘$5,000.’’

15 and inserting ‘‘$7,500; or’’; and

16 (4) by adding at the end the following:

17 ‘‘(D) in the case of a national committee of a

18 political party, to any candidate and his authorized

19 political committees with respect to any election for

20 Federal office which, in the aggregate, exceed

21 $15,000.’’.

22 SEC. 202. INDEXING OF CONTRIBUTION LIMITS.

23 Section 315(c) of the Federal Election Campaign Act

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

25 end the following new paragraph:
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1 ‘‘(3)(A) The amount of each limitation established

2 under subsection (a) shall be adjusted as follows:

3 ‘‘(i) For calendar year 2003, each such amount

4 shall be equal to the amount described in such sub5 section, increased (in a compounded manner) by the

6 percentage increase in the price index (as defined in

7 subsection (c)(2)) for each of the years 2001

8 through 2002.

9 ‘‘(ii) For calendar year 2005 and each second

10 subsequent year, each such amount shall be equal to

11 the amount for the second previous year (as ad12 justed under this subparagraph), increased (in a

13 compounded manner) by the percentage increase in

14 the price index for each of the 2 previous years.

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

16 subparagraph which is not a multiple of $100, the amount

17 shall be rounded to the nearest multiple of $100.’’.

18 TITLE III—EXPANDING DISCLO19 SURE OF CAMPAIGN FINANCE

20 INFORMATION

21 SEC. 301. DISCLOSURE OF CERTAIN COMMUNICATIONS.

22 Section 304 of the Federal Election Campaign Act

23 of 1971 (2 U.S.C. 434), as amended by section 502(a)

24 of the Department of Transportation and Related Agen25 cies Act, 2001 (as enacted into law by reference under
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1 section 101(a) of Public Law 106–346), is amended by

2 adding at the end the following:

3 ‘‘(e) DISCLOSURE OF CERTAIN COMMUNICATIONS.—

4 ‘‘(1) IN GENERAL.—Any person who expends

5 an aggregate amount of funds during a calendar

6 year in excess of $25,000 for communications de7 scribed in paragraph (2) relating to a single can8 didate for election for Federal office (or an aggre9 gate amount of funds during a calendar year in ex10 cess of $100,000 for all such communications relat11 ing to all such candidates) shall file a report with

12 the Commission describing the amount expended for

13 such communications, together with the person’s ad14 dress and phone number (or, if appropriate, the ad15 dress and phone number of the person’s principal of16 ficer).

17 ‘‘(2) COMMUNICATIONS DESCRIBED.—A com18 munication described in this paragraph is any com19 munication which is broadcast to the general public

20 through radio or television and which mentions or

21 includes (by name, representation, or likeness) any

22 candidate for election for Senator or for Representa23 tive in (or Delegate or Resident Commissioner to)

24 the Congress, other than any communication which

25 would be described in clause (i), (iii), or (v) of sec-
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1 tion 301(9)(B) if the payment were an expenditure

2 under such section.

3 ‘‘(3) DEADLINE FOR FILING.—A person shall

4 file a report required under paragraph (1) not later

5 than 7 days after the person first expends the appli6 cable amount of funds described in such paragraph,

7 except that in the case of a person who first expends

8 such an amount within 10 days of an election, the

9 report shall be filed not later than 24 hours after

10 the person first expends such amount.

11 ‘‘(4) PENALTIES.—Whoever knowingly fails

12 to—

13 ‘‘(A) remedy a defective filing within 60

14 days after notice of such a defect by the Com15 mission; or

16 ‘‘(B) comply with any other provision of

17 this section,

18 shall, upon proof of such knowing violation by a pre19 ponderance of the evidence, be subject to a civil fine

20 of not more than $50,000 (notwithstanding any

21 other provision of this title), depending on the extent

22 and gravity of the violation.’’.

23 SEC. 302. REQUIRING MONTHLY FILING OF REPORTS.

24 (a) PRINCIPAL CAMPAIGN COMMITTEES.—Section

25 304(a)(2)(A)(iii) of the Federal Election Campaign Act of
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1 1971 (2 U.S.C. 434(a)(2)(A)(iii)) is amended to read as

2 follows:

3 ‘‘(iii) monthly reports, which shall be filed

4 no later than the 20th day after the last day of

5 the month and shall be complete as of the last

6 day of the month, except that, in lieu of filing

7 the reports otherwise due in November and De8 cember of the year, a pre-general election report

9 shall be filed in accordance with clause (i), a

10 post-general election report shall be filed in ac11 cordance with clause (ii), and a year end report

12 shall be filed no later than January 31 of the

13 following calendar year.’’.

14 (b) OTHER POLITICAL COMMITTEES.—Section

15 304(a)(4) of such Act (2 U.S.C. 434(a)(4)) is amended

16 to read as follows:

17 ‘‘(4)(A) In a calendar year in which a regularly

18 scheduled general election is held, all political committees

19 other than authorized committees of a candidate shall

20 file—

21 ‘‘(i) monthly reports, which shall be filed no

22 later than the 20th day after the last day of the

23 month and shall be complete as of the last day of

24 the month, except that, in lieu of filing the reports

25 otherwise due in November and December of the
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1 year, a pre-general election report shall be filed in

2 accordance with clause (ii), a post-general election

3 report shall be filed in accordance with clause (iii),

4 and a year end report shall be filed no later than

5 January 31 of the following calendar year;

6 ‘‘(ii) a pre-election report, which shall be filed

7 no later than the 12th day before (or posted by reg8 istered or certified mail no later than the 15th day

9 before) any election in which the committee makes

10 a contribution to or expenditure on behalf of a can11 didate in such election, and which shall be complete

12 as of the 20th day before the election; and

13 ‘‘(iii) a post-general election report, which shall

14 be filed no later than the 30th day after the general

15 election and which shall be complete as of the 20th

16 day after such general election.

17 ‘‘(B) In any other calendar year, all political commit18 tees other than authorized committees of a candidate shall

19 file a report covering the period beginning January 1 and

20 ending June 30, which shall be filed no later than July

21 31 and a report covering the period beginning July 1 and

22 ending December 31, which shall be filed no later than

23 January 31 of the following calendar year.’’.
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1 (c) CONFORMING AMENDMENTS.—(1) Section 304(a)

2 of such Act (2 U.S.C. 434(a)) is amended by striking

3 paragraph (8).

4 (2) Section 309(b) of such Act (2 U.S.C. 437g(b))

5 is amended by striking ‘‘for the calendar quarter’’ and in6 serting ‘‘for the month’’.

7 SEC. 303. SOFTWARE FOR FILING OF REPORTS.

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

9 of 1971 (2 U.S.C. 434(a)) is amended by adding at the

10 end the following:

11 ‘‘(12) SOFTWARE FOR FILING OF REPORTS.—

12 ‘‘(A) IN GENERAL.—The Commission

13 shall—

14 ‘‘(i) develop software for use to file a

15 designation, statement, or report under

16 this Act; and

17 ‘‘(ii) provide a copy of the software at

18 no cost to a person required to file a des19 ignation, statement, or report under this

20 Act.

21 ‘‘(B) REQUIRED USE.—Any person which

22 maintains or files a designation, statement, or

23 report under paragraph (11) shall use software

24 developed under subparagraph (A) or equivalent

25 software for such maintenance or filing.’’.
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1 TITLE IV—STRENGTHENING EN2 FORCEMENT AND ADMINIS3 TRATION OF FEDERAL ELEC4 TION COMMISSION

5 SEC. 401. STANDARDS FOR INITIATION OF ACTIONS AND

6 WRITTEN RESPONSES BY FEDERAL ELEC7 TION COMMISSION.

8 (a) STANDARD FOR INITIATION OF ACTIONS BY

9 FEC.—Section 309(a)(2) of the Federal Election Cam10 paign Act of 1971 (2 U.S.C. 437g(a)(2)) is amended by

11 striking ‘‘it has reason to believe’’ and all that follows

12 through ‘‘of 1954,’’ and inserting the following: ‘‘it has

13 a reason to seek additional information regarding a pos14 sible violation of this Act or of chapter 95 or chapter 96

15 of the Internal Revenue Code of 1986 that has occurred

16 or is about to occur (based on the same criteria applicable

17 under this paragraph prior to the enactment of the Cam18 paign Integrity Act of 2001),’’.

19 (b) REQUIRING FEC TO PROVIDE WRITTEN RE20 SPONSES TO QUESTIONS.—

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

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

23 section 308 the following new section:
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1 ‘‘OTHER WRITTEN RESPONSES TO QUESTIONS

2 ‘‘SEC. 308A. (a) PERMITTING RESPONSES.—In addi3 tion to issuing advisory opinions under section 308, the

4 Commission shall issue written responses pursuant to this

5 section with respect to a written request concerning the

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

7 Internal Revenue Code of 1986, a rule or regulation pre8 scribed by the Commission, or an advisory opinion issued

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

10 specific transaction or activity by the person, if the Com11 mission finds the application of the Act, chapter, rule, reg12 ulation, or advisory opinion to the transaction or activity

13 to be clear and unambiguous.

14 ‘‘(b) PROCEDURE FOR RESPONSE.—

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

16 Commission shall analyze each request submitted

17 under this section. If the staff believes that the

18 standard described in subsection (a) is met with re19 spect to the request, the staff shall circulate a state20 ment to that effect together with a draft response to

21 the request to the members of the Commission.

22 ‘‘(2) ISSUANCE OF RESPONSE.—Upon the expi23 ration of the 3-day period beginning on the date the

24 statement and draft response is circulated (excluding

25 weekends or holidays), the Commission shall issue
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1 the response, unless during such period any member

2 of the Commission objects to issuing the response.

3 ‘‘(c) EFFECT OF RESPONSE.—

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

5 other provisions of law, any person who relies upon

6 any provision or finding of a written response issued

7 under this section and who acts in good faith in ac8 cordance with the provisions and findings of such re9 sponse shall not, as a result of any such act, be sub10 ject to any sanction provided by this Act or by chap11 ter 95 or chapter 96 of the Internal Revenue Code

12 of 1986.

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

14 written response issued by the Commission under

15 this section may only be relied upon by the person

16 involved in the specific transaction or activity with

17 respect to which such response is issued, and may

18 not be applied by the Commission with respect to

19 any other person or used by the Commission for en20 forcement or regulatory purposes.

21 ‘‘(d) PUBLICATION OF REQUESTS AND RE22 SPONSES.—The Commission shall make public any re23 quest for a written response made, and the responses

24 issued, under this section. In carrying out this subsection,

25 the Commission may not make public the identity of any
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1 person submitting a request for a written response unless

2 the person specifically authorizes to Commission to do so.

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

4 shall compile, publish, and regularly update a complete

5 and detailed index of the responses issued under this sec6 tion through which responses may be found on the basis

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

8 (2) CONFORMING AMENDMENT.—Section

9 307(a)(7) of such Act (2 U.S.C. 437d(a)(7)) is

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

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

12 (c) STANDARD FORM FOR COMPLAINTS; STRONGER

13 DISCLAIMER LANGUAGE.—

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

15 such Act (2 U.S.C. 437g(a)(1)) is amended by in16 serting after ‘‘shall be notarized,’’ the following:

17 ‘‘shall be in a standard form prescribed by the Com18 mission, shall not include (but may refer to) extra19 neous materials,’’.

20 (2) DISCLAIMER LANGUAGE.—Section

21 309(a)(1) of such Act (2 U.S.C. 437g(a)(1)) is

22 amended—

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

24 ‘‘(a)(1)(A)’’; and
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1 (B) by adding at the end the following new

2 subparagraph:

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

4 the Commission under subparagraph (A) to a person al5 leged to have committed a violation referred to in the com6 plaint shall include a cover letter (in a form prescribed

7 by the Commission) and the following statement: ‘The en8 closed complaint has been filed against you with the Fed9 eral Election Commission. The Commission has not

10 verified or given official sanction to the complaint. The

11 Commission will make no decision to pursue the complaint

12 for a period of at least 15 days from your receipt of this

13 complaint. You may, if you wish, submit a written state14 ment to the Commission explaining why the Commission

15 should take no action against you based on this complaint.

16 If the Commission should decide to seek additional infor17 mation, you will be notified and be given further oppor18 tunity to respond.’’’.

19 SEC. 402. BANNING ACCEPTANCE OF CASH CONTRIBU20 TIONS GREATER THAN $100.

21 Section 315 of the Federal Election Campaign Act

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

23 the following new subsection:

24 ‘‘(i) No candidate or political committee may accept

25 any contributions of currency of the United States or cur-
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1 rency of any foreign country from any person which, in

2 the aggregate, exceed $100.’’.

3 SEC. 403. DEPOSIT OF CERTAIN CONTRIBUTIONS AND DO4 NATIONS TO BE RETURNED TO DONORS IN

5 TREASURY ACCOUNT.

6 (a) IN GENERAL.—Title III of the Federal Election

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

8 by section 101, is amended by adding at the end the fol9 lowing new section:

10 ‘‘TREATMENT OF CERTAIN CONTRIBUTIONS AND

11 DONATIONS TO BE RETURNED TO DONORS

12 ‘‘SEC. 324. (a) TRANSFER TO COMMISSION.—

13 ‘‘(1) IN GENERAL.—Notwithstanding any other

14 provision of this Act, if a political committee intends

15 to return any contribution or donation given to the

16 political committee, the committee shall transfer the

17 contribution or donation to the Commission if—

18 ‘‘(A) the contribution or donation is in an

19 amount equal to or greater than $500 (other

20 than a contribution or donation returned within

21 90 days of receipt by the committee); or

22 ‘‘(B) the contribution or donation was

23 made in violation of section 315, 316, 317, 319,

24 or 320 (other than a contribution or donation

25 returned within 90 days of receipt by the com26 mittee).
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1 ‘‘(2) INFORMATION INCLUDED WITH TRANS2 FERRED CONTRIBUTION OR DONATION.—A political

3 committee shall include with any contribution or do4 nation transferred under paragraph (1)—

5 ‘‘(A) a request that the Commission return

6 the contribution or donation to the person mak7 ing the contribution or donation; and

8 ‘‘(B) information regarding the cir9 cumstances surrounding the making of the con10 tribution or donation and any opinion of the po11 litical committee concerning whether the con12 tribution or donation may have been made in

13 violation of this Act.

14 ‘‘(3) ESTABLISHMENT OF ESCROW ACCOUNT.—

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

16 establish a single interest-bearing escrow ac17 count for deposit of amounts transferred under

18 paragraph (1).

19 ‘‘(B) DISPOSITION OF AMOUNTS RE20 CEIVED.—On receiving an amount from a polit21 ical committee under paragraph (1), the Com22 mission shall—

23 ‘‘(i) deposit the amount in the escrow

24 account established under subparagraph

25 (A); and
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1 ‘‘(ii) notify the Attorney General and

2 the Commissioner of the Internal Revenue

3 Service of the receipt of the amount from

4 the political committee.

5 ‘‘(C) USE OF INTEREST.—Interest earned

6 on amounts in the escrow account established

7 under subparagraph (A) shall be applied or

8 used for the same purposes as the donation or

9 contribution on which it is earned.

10 ‘‘(4) TREATMENT OF RETURNED CONTRIBU11 TION OR DONATION AS A COMPLAINT.—The transfer

12 of any contribution or donation to the Commission

13 under this section shall be treated as the filing of a

14 complaint under section 309(a).

15 ‘‘(b) USE OF AMOUNTS PLACED IN ESCROW TO

16 COVER FINES AND PENALTIES.—The Commission or the

17 Attorney General may require any amount deposited in

18 the escrow account under subsection (a)(3) to be applied

19 toward the payment of any fine or penalty imposed under

20 this Act or title 18, United States Code, against the per21 son making the contribution or donation.

22 ‘‘(c) RETURN OF CONTRIBUTION OR DONATION

23 AFTER DEPOSIT IN ESCROW.—

24 ‘‘(1) IN GENERAL.—The Commission shall re25 turn a contribution or donation deposited in the es-
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1 crow account under subsection (a)(3) to the person

2 making the contribution or donation if—

3 ‘‘(A) within 180 days after the date the

4 contribution or donation is transferred, the

5 Commission has not made a determination

6 under section 309(a)(2) to seek additional in7 formation regarding whether or not the con8 tribution or donation was made in violation of

9 this Act; or

10 ‘‘(B)(i) the contribution or donation will

11 not be used to cover fines, penalties, or costs

12 pursuant to subsection (b); or

13 ‘‘(ii) if the contribution or donation will be

14 used for those purposes, that the amounts re15 quired for those purposes have been withdrawn

16 from the escrow account and subtracted from

17 the returnable contribution or donation.

18 ‘‘(2) NO EFFECT ON STATUS OF INVESTIGA19 TION.—The return of a contribution or donation by

20 the Commission under this subsection shall not be

21 construed as having an effect on the status of an in22 vestigation by the Commission or the Attorney Gen23 eral of the contribution or donation or the cir24 cumstances surrounding the contribution or dona25 tion, or on the ability of the Commission or the At-
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1 torney General to take future actions with respect to

2 the contribution or donation.’’.

3 (b) AMOUNTS USED TO DETERMINE AMOUNT OF

4 PENALTY FOR VIOLATION.—Section 309(a) of such Act

5 (2 U.S.C. 437g(a)) is amended by inserting after para6 graph (9) the following new paragraph:

7 ‘‘(10) For purposes of determining the amount of a

8 civil penalty imposed under this subsection for violations

9 of section 324, the amount of the donation involved shall

10 be treated as the amount of the contribution involved.’’.

11 (c) DONATION DEFINED.—Section 324 of such Act,

12 as added by subsection (a), is amended by adding at the

13 end the following:

14 ‘‘(d) DONATION DEFINED.—In this section, the term

15 ‘donation’ means a gift, subscription, loan, advance, or de16 posit of money or anything else of value made by any per17 son to a national committee of a political party or a Sen18 atorial or Congressional Campaign Committee of a na19 tional political party for any purpose, but does not include

20 a contribution (as defined in section 301(8)).’’.

21 (d) DISGORGEMENT AUTHORITY.—Section 309 of

22 such Act (2 U.S.C. 437g) is amended by adding at the

23 end the following new subsection:

24 ‘‘(e) Any conciliation agreement, civil action, or crimi25 nal action entered into or instituted under this section
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1 may require a person to forfeit to the Treasury any con2 tribution, donation, or expenditure that is the subject of

3 the agreement or action for transfer to the Commission

4 for deposit in accordance with section 324.’’.

5 (e) EFFECTIVE DATE.—The amendments made by

6 subsections (a), (b), and (c) shall apply to contributions

7 or donations refunded on or after the date of the enact8 ment of this Act, without regard to whether the Federal

9 Election Commission or Attorney General has issued regu10 lations to carry out section 324 of the Federal Election

11 Campaign Act of 1971 (as added by subsection (a)) by

12 such date.

13 SEC. 404. ABOLITION OF EX OFFICIO MEMBERSHIP OF

14 CLERK OF HOUSE OF REPRESENTATIVES

15 AND SECRETARY OF SENATE ON COMMIS16 SION.

17 Section 306(a) of the Federal Election Campaign Act

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

19 (1) in paragraph (1), by striking ‘‘the Secretary

20 of the Senate and the Clerk’’ and all that follows

21 through ‘‘right to vote, and’’; and

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

23 ‘‘(other than the Secretary of the Senate and the

24 Clerk of the House of Representatives)’’ each place

25 it appears.
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1 SEC. 405. BROADER PROHIBITION AGAINST FORCE AND RE2 PRISALS.

3 Section 316(b)(3) of the Federal Election Campaign

4 Act of 1971 (2 U.S.C. 441b(b)(3)) is amended—

5 (1) by redesignating subparagraphs (A) through

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

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

8 redesignated) the following new subparagraph:

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

10 to make a contribution or expenditure by physical

11 force, job discrimination, financial reprisals, or the

12 threat of force, job discrimination, or financial re13 prisal;’’.

14 SEC. 406. SIGNATURE AUTHORITY OF MEMBERS OF COM15 MISSION FOR SUBPOENAS AND NOTIFICA16 TION OF INTENT TO SEEK ADDITIONAL IN17 FORMATION.

18 (a) ISSUANCE OF SUBPOENAS.—Section 307(a)(3) of

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

20 437d(a)(3)) is amended by striking ‘‘signed by the chair21 man or the vice chairman’’ and inserting ‘‘signed by any

22 member of the Commission’’.

23 (b) NOTIFICATIONS OF INTENT TO SEEK ADDI24 TIONAL INFORMATION.—Section 309(a)(2) of such Act (2

25 U.S.C. 437g(a)(2)) is amended by striking ‘‘through its
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1 chairman or vice chairman’’ and inserting ‘‘through any

2 of its members’’.

3 SEC. 407. MAKING ALTERNATIVE PROCEDURES FOR IMPO4 SITION OF PENALTIES FOR REPORTING VIO5 LATIONS PERMANENT.

6 (a) IN GENERAL.—Section 640(c) of the Treasury

7 and General Government Appropriations Act, 2000 (Pub8 lic Law 106–58; 113 Stat. 477) is amended by striking

9 ‘‘between January 1, 2000 and December 31, 2001’’ and

10 inserting ‘‘on or after January 1, 2000’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall take effect as if included in the enact13 ment of the Treasury and General Government Appropria14 tions Act, 2000.

15 TITLE V—MISCELLANEOUS

16 PROVISIONS

17 SEC. 501. CODIFICATION OF BECK DECISION.

18 Section 8 of the National Labor Relations Act (29

19 U.S.C. 158) is amended by adding at the end the following

20 new subsection:

21 ‘‘(h) NONUNION MEMBER PAYMENTS TO LABOR OR22 GANIZATION.—

23 ‘‘(1) IN GENERAL.—It shall be an unfair labor

24 practice for any labor organization which receives a

25 payment from an employee pursuant to an agree-
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1 ment that requires employees who are not members

2 of the organization to make payments to such orga3 nization in lieu of organization dues or fees not to

4 establish and implement the objection procedure de5 scribed in paragraph (2).

6 ‘‘(2) OBJECTION PROCEDURE.—The objection

7 procedure required under paragraph (1) shall meet

8 the following requirements:

9 ‘‘(A) The labor organization shall annually

10 provide to employees who are covered by such

11 agreement but are not members of the

12 organization—

13 ‘‘(i) reasonable personal notice of the

14 ratio that the organization’s anticipated

15 expenditures supporting activities unre16 lated to collective bargaining bears to the

17 organization’s anticipated total expendi18 tures;

19 ‘‘(ii) reasonable personal notice of the

20 objection procedure, the employees eligible

21 to invoke the procedure, and the time,

22 place, and manner for filing an objection;

23 and

24 ‘‘(iii) reasonable opportunity to file an

25 objection to paying for organization ex-
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1 penditures supporting activities unrelated

2 to collective bargaining, including but not

3 limited to the opportunity to file such ob4 jection by mail.

5 ‘‘(B) If an employee who is not a member

6 of the labor organization files an objection

7 under the procedure in subparagraph (A), such

8 organization shall—

9 ‘‘(i) reduce the payments in lieu of or10 ganization dues or fees by such employee

11 by an amount which reasonably reflects the

12 ratio that the organization’s expenditures

13 supporting activities unrelated to collective

14 bargaining bears to such organization’s

15 total expenditures; and

16 ‘‘(ii) provide such employee with a

17 reasonable explanation of the organiza18 tion’s calculation of such reduction, includ19 ing calculating the amount of organization

20 expenditures supporting activities unre21 lated to collective bargaining.

22 ‘‘(3) CIVIL ACTION BY EMPLOYEES.—

23 ‘‘(A) LIABILITY.—In addition to any other

24 remedy which may apply under this Act, any
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1 labor organization which violates this subsection

2 shall be liable to the affected employee—

3 ‘‘(i) for damages equal to—

4 ‘‘(I) the amount of the payments

5 made to the organization in lieu of

6 dues or fees which were accepted in

7 violation of this section;

8 ‘‘(II) the interest on the amount

9 described in subclause (I) calculated

10 at the prevailing rate; and

11 ‘‘(III) an additional amount as

12 liquidated damages equal to the sum

13 of the amount described in subclause

14 (I) and the interest described in sub15 clause (II); and

16 ‘‘(ii) for such equitable relief as may

17 be appropriate.

18 ‘‘(B) RIGHT OF ACTION.—An action to re19 cover the damages or equitable relief prescribed

20 in subparagraph (A) may be maintained against

21 any labor organization in any Federal or State

22 court of competent jurisdiction by any one or

23 more employees for and in behalf of—

24 ‘‘(i) the employees; or
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1 ‘‘(ii) the employees and other employ2 ees similarly situated.

3 ‘‘(C) FEES AND COSTS.—The court in such

4 action may, in addition to any judgment award5 ed to the plaintiff, allow a reasonable attorney’s

6 fee, reasonable expert witness fees, and other

7 costs of the action to be paid by the defendant.

8 ‘‘(4) DEFINITION.—In this subsection, the term

9 ‘expenditures supporting activities unrelated to col10 lective bargaining’ means expenditures in connection

11 with any activities not necessary to performing the

12 duties of the exclusive representative of the employ13 ees in dealing with the employer on labor-manage14 ment issues.’’.

15 SEC. 502. PROHIBITION OF SOLICITATION OF POLITICAL

16 PARTY SOFT MONEY IN FEDERAL BUILDINGS.

17 (a) IN GENERAL.—Section 607 of title 18, United

18 States Code, is amended—

19 (1) in subsection (a), by striking ‘‘within the

20 meaning of section 301(8) of the Federal Election

21 Campaign Act of 1971’’; and

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

23 ‘‘(c) DEFINITION OF CONTRIBUTION.—In this sec24 tion, the term ‘contribution’ means a gift, subscription,
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1 loan, advance, or deposit of money or anything of value

2 made by any person in connection with—

3 ‘‘(1) any election or elections for Federal office;

4 ‘‘(2) any political committee (as defined in sec5 tion 301 of the Federal Election Campaign Act of

6 1971); or

7 ‘‘(3) any State, district, or local committee of a

8 political party.’’.

9 (b) AMENDMENT OF TITLE 18 TO INCLUDE PROHI10 BITION OF DONATIONS.—Section 602(a)(4) of title 18,

11 United States Code, is amended by striking ‘‘within the

12 meaning of section 301(8) of the Federal Election Cam13 paign Act of 1971’’ and inserting ‘‘(as defined in section

14 607(c))’’.

15 SEC. 503. FILING OF SENATE REPORTS WITH THE FEDERAL

16 ELECTION COMMISSION.

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

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

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

20 following:

21 ‘‘(g) PLACE OF FILING.—All designations, state22 ments, and reports required to be filed under this Act shall

23 be filed with the Commission.’’.

24 (b) CONFORMING AMENDMENTS.—The Federal Elec25 tion Campaign Act of 1971 is amended—
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1 (1) in section 304 (2 U.S.C. 434)—

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

3 ‘‘Secretary or the Commission’’ through ‘‘as ap4 propriate’’ and inserting ‘‘Commission and Sec5 retary of State’’,

6 (B) in the third sentence of subsection

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

8 (C) in the fourth sentence of subsection

9 (c)(2), by striking ‘‘the Secretary, the Commis10 sion,’’ and inserting ‘‘the Commission’’; and

11 (2) in section 311(a)(4) (2 U.S.C. 438(a)(4)),

12 by striking ‘‘Secretary or the’’.

13 TITLE VI—EFFECTIVE DATE

14 SEC. 601. EFFECTIVE DATE.

15 Except as otherwise provided, this Act and the

16 amendments made by this Act shall apply with respect to

17 elections occurring after January 2003.

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