I
106TH CONGRESS
2D SESSION
H. R. 5596
To amend the Federal Election Campaign Act of 1971 to reform the financing
of campaigns for election for Federal office, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 27, 2000
Mr. SHAW introduced the following bill; which was referred to the Committee
on House Administration, and in addition to the Committee on Com-
merce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To amend the Federal Election Campaign Act of 1971 to
reform the financing of campaigns for election for Fed-
eral office, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Campaign Finance Im-
provement Act of 2000’’.
SEC. 2. EXPANDING REPORTING REQUIREMENTS FOR CER-
TAIN CONTRIBUTIONS.
(a) REQUIRING REPORTING OF ALL CONTRIBUTIONS
OF $200 OR MORE WITHIN 10 DAYS OF RECEIPT.—Sec-
tion 304 of the Federal Election Campaign Act of 1971
(2 U.S.C. 434) is amended by adding at the end the fol-
lowing new subsection:
‘‘(d)(1) Each political committee which receives a
contribution of $200 or more shall notify the Commission
of the contribution not later than 10 days after receipt,
and shall include the identification of the contributor, the
date of receipt and amount of the contribution, and (in
the case of an authorized committee of a candidate) the
name of the candidate and the office sought by the can-
didate.
‘‘(2) The report required under this subsection shall
be in addition to all other reports required under this
Act.’’.
(b) EXPANDING TYPES OF CONTRIBUTIONS TO PRIN-
CIPAL CAMPAIGN COMMITTEES SUBJECT TO EXPEDITED
REPORTING.—Section 304(a)(6)(A) of such Act (2 U.S.C.
434(a)(6)(A)) is amended—
(1) by striking ‘‘$1,000’’ and inserting ‘‘$200’’;
and
(2) by striking ‘‘20th day’’ and inserting ‘‘90th
day’’.
SEC. 3. REQUIRING MAJORITY OF AMOUNT OF CONTRIBU-
TIONS ACCEPTED BY CONGRESSIONAL CAN-
DIDATES TO COME FROM IN-STATE RESI-
DENTS.
(a) IN GENERAL.—Section 315 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441a) is amended
by adding at the end the following new subsection:
‘‘(i)(1) The total amount of contributions accepted
with respect to an election by a candidate for the office
of Senator or the office of Representative in, or Delegate
or Resident Commissioner to, the Congress from in-State
individual residents shall be at least 50 percent of the total
amount of contributions accepted from all sources.
‘‘(2) If a candidate in an election makes expenditures
of personal funds (including contributions by the can-
didate or the candidate’s spouse to the candidate’s author-
ized campaign committee) in an amount in excess of
$250,000, paragraph (1) shall not apply with respect to
any opponent of the candidate in the election.
‘‘(3) In determining the amount of contributions ac-
cepted by a candidate for purposes of paragraph (1), the
amounts of any contributions made by a political com-
mittee of a political party shall be allocated as follows:
‘‘(A) 50 percent of such amounts shall be
deemed to be contributions from in-State individual
residents.
‘‘(B) 50 percent of such amounts shall be
deemed to be contributions from persons other than
in-State individual residents.
‘‘(4) As used in this subsection, the term ‘in-State
individual resident’ means an individual who resides in the
State in which the election involved is held.’’.
(b) REPORTING REQUIREMENTS.—Section 304 of
such Act (2 U.S.C. 434), as amended by section 2(a), is
further amended by adding at the end the following new
subsection:
‘‘(e)(1) Each principal campaign committee of a can-
didate for the Senate or the House of Representatives
shall include the following information in the first report
filed under subsection (a)(2) which covers the period
which begins 19 days before an election and ends 20 days
after the election:
‘‘(A) The total contributions received by the
committee with respect to the election involved from
in-State individual residents (as defined in section
315(i)(4)), as of the last day of the period covered
by the report.
‘‘(B) The total contributions received by the
committee with respect to the election involved from
all persons, as of the last day of the period covered
by the report.
‘‘(2)(A) Each principal campaign committee of a can-
didate for the Senate or the House of Representatives
shall submit a notification to the Commission of the first
expenditure of personal funds (including contributions by
the candidate or the candidate’s spouse to the committee)
by which the aggregate amount of personal funds ex-
pended (or contributed) with respect to the election ex-
ceeds $250,000.
‘‘(B) Each notification under subparagraph (A)—
‘‘(I) shall be submitted not later than 24 hours
after the expenditure or contribution which is the
subject of the notification is made; and
‘‘(II) shall include the name of the candidate,
the office sought by the candidate, and the date of
the expenditure or contribution and amount of the
expenditure or contribution involved.’’.
(c) PENALTY FOR VIOLATION OF LIMITS.—Section
309(d) of such Act (2 U.S.C. 437g(d)) is amended by add-
ing at the end the following new paragraph:
‘‘(4)(A) Any candidate who knowingly and willfully
accepts contributions in excess of any limitation provided
under section 315(i) shall be fined an amount equal to
the greater of 200 percent of the amount accepted in ex-
cess of the applicable limitation or (if applicable) the
amount provided in paragraph (1)(A).
‘‘(B) Interest shall be assessed against any portion
of a fine imposed under subparagraph (A) which remains
unpaid after the expiration of the 30-day period which be-
gins on the date the fine is imposed.’’.
SEC. 4. WAIVER OF ‘‘BEST EFFORTS’’ EXCEPTION FOR IN-
FORMATION ON IDENTIFICATION OF CON-
TRIBUTORS.
Section 302(i) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 432(i)) is amended—
(1) by striking ‘‘(i) When the treasurer’’ and
inserting ‘‘(i)(1) Except as provided in paragraph
(2), when the treasurer’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) Paragraph (1) shall not apply with respect to
information regarding the identification of any person who
makes a contribution or contributions aggregating more
than $200 during a calendar year (as required to be pro-
vided under subsection (c)(3)).’’.
SEC. 5. LOWERING THRESHOLD FOR CASH CONTRIBU-
TIONS.
Section 321 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441g) is amended by striking ‘‘exceed
$100’’ and inserting ‘‘exceed $20’’.
SEC. 6. CONTRIBUTIONS BY DEPENDENTS NOT OF VOTING
AGE.
Section 315(a) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a) is amended by adding at the end
the following new paragraph:
‘‘(9)(A) For purposes of the limitations imposed by
this section, any contribution made by a dependent minor
shall be treated as follows:
‘‘(i) If the dependent minor is the dependent of
one other individual, the contribution shall be treat-
ed as a contribution made by such other individual.
‘‘(ii) If the dependent minor is the dependent of
another individual and such other individual’s
spouse, the contribution shall be allocated among
such individuals in such manner as such other indi-
viduals may determine.
‘‘(B) In this paragraph, the term ‘dependent minor’
means an individual who—
‘‘(i) is a dependent of another individual; and
‘‘(ii) has not, as of the time of making the con-
tribution involved, attained the legal age for voting
in elections for Federal office in the State in which
such individual resides.’’.
SEC. 7. PROHIBITING NON-CITIZEN INDIVIDUALS FROM
MAKING CONTRIBUTIONS IN CONNECTION
WITH FEDERAL ELECTIONS.
Section 319(b)(2) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441e(b)(2)) is amended by striking
‘‘and who is not lawfully admitted’’ and all that follows
and inserting a period.
SEC. 8. DISCLOSURE REQUIREMENTS FOR CERTAIN SOFT
MONEY EXPENDITURES OF POLITICAL PAR-
TIES.
(a) TRANSFERS OF FUNDS BY NATIONAL POLITICAL
PARTIES.—Section 304(b)(4) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (H);
(2) by adding ‘‘and’’ at the end of subpara-
graph (I); and
(3) by adding at the end the following new sub-
paragraph:
‘‘(J) in the case of a political committee of
a national political party, all funds transferred
to any political committee of a State or local
political party, without regard to whether or not
the funds are otherwise treated as contributions
or expenditures under this title;’’.
(b) DISCLOSURE BY STATE POLITICAL PARTIES OF
INFORMATION REPORTED UNDER STATE LAW.—Section
304 of such Act (2 U.S.C. 434), as amended by sections
2(a) and 3(b), is further amended by adding at the end
the following new subsection:
‘‘(f) If a political committee of a State political party
is required under a State or local law, rule, or regulation
to submit a report on its disbursements to an entity of
the State or local government, the committee shall file a
copy of the report with the Commission at the time it sub-
mits the report to such an entity.’’.
SEC. 9. PROHIBITING INVOLUNTARY ASSESSMENT OF EM-
PLOYEE FUNDS FOR POLITICAL ACTIVITIES.
(a) IN GENERAL.—Section 316 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441b) is amended
by adding at the end the following new subsection:
‘‘(c)(1) Except with the separate, prior, written, vol-
untary authorization of each individual, it shall be
unlawful—
‘‘(A) for any national bank or corporation de-
scribed in this section to collect from or assess its
stockholders or employees any dues, initiation fee, or
other payment as a condition of employment if any
part of such dues, fee, or payment will be used for
political activity in which the national bank or cor-
poration is engaged; and
‘‘(B) for any labor organization described in
this section to collect from or assess its members or
nonmembers any dues, initiation fee, or other pay-
ment if any part of such dues, fee, or payment will
be used for political activity in which the labor orga-
nization is engaged.
‘‘(2) An authorization described in paragraph (1)
shall remain in effect until revoked and may be revoked
at any time. Each entity collecting from or assessing
amounts from an individual with an authorization in effect
under such paragraph shall provide the individual with a
statement that the individual may at any time revoke the
authorization.
‘‘(3) For purposes of this subsection, the term ‘polit-
ical activity’ means any activity carried out for the pur-
pose of influencing (in whole or in part) any election for
Federal office, influencing the consideration or outcome
of any Federal legislation or the issuance or outcome of
any Federal regulations, or educating individuals about
candidates for election for Federal office or any Federal
legislation, law, or regulations.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to amounts collected or assessed
on or after the date of the enactment of this Act.
SEC. 10. PROHIBITING AUTHORIZED COMMITTEES OF CAN-
DIDATES FROM ACCEPTING CONTRIBUTIONS
FROM AUTHORIZED COMMITTEES OF OTHER
CANDIDATES.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by section 3(a), is
amended by adding at the end the following new sub-
section:
‘‘(j)(1) Except as provided in paragraph (2), the au-
thorized committee of a candidate for election for Federal
office may not accept any contribution from an authorized
committee of another candidate for election for Federal
office.
‘‘(2) Paragraph (1) does not apply to the transfer of
funds between an authorized committee of a candidate for
election for Federal office and an authorized committee
of the same candidate for election for another Federal of-
fice.’’.
SEC. 11. REQUIRING FEC TO MAKE SOFTWARE AVAILABLE
FOR ELECTRONIC FILING.
Section 311(a) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 438(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of para-
graph (10) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(11) through competitive bidding, obtain and
provide for computer software required to carry out
the electronic filing of designations, statements, and
reports under this Act.’’.
SEC. 12. REQUIRING BROADCASTERS TO PROVIDE FREE
RESPONSE TIME TO CANDIDATES SUBJECT
TO SOFT MONEY ADVERTISEMENTS.
Section 317 of the Communications Act of 1934 (47
U.S.C. 317) is amended—
(1) by striking ‘‘radio station’’ each place it ap-
pears and inserting ‘‘broadcast station’’; and
(2) by adding at the end of subsection (a) the
following new paragraph:
‘‘(3)(A) A broadcast station may not accept for
broadcast any soft money advertisement which contains
the image, name, or likeness of a candidate for election
for Federal office unless the station agrees to broadcast
without charge—
‘‘(i) if the soft money advertisement referred to
or presented the candidate in a critical or negative
manner, an advertisement provided by an authorized
committee of such candidate, under conditions (such
as the time of broadcast) similar to those under
which the soft money advertisement was broadcast;
or
‘‘(ii) if the soft money advertisement referred to
or presented the candidate in a positive manner, an
advertisement provided by an authorized committee
of the candidate’s opponent in the election, under
conditions (such as the time of broadcast) similar to
those under which the soft money advertisement was
broadcast.
‘‘(B) In this paragraph, the term ‘soft money adver-
tisement’ means an advertisement whose costs are fi-
nanced (in whole or in part) with funds which are not sub-
ject to the limitations, prohibitions, and reporting require-
ments of title III of the Federal Election Campaign Act
of 1971, but does not include any advertisement whose
costs are entirely financed by an authorized committee of
a candidate for election for Federal office.
‘‘(C) In this paragraph, the terms ‘authorized com-
mittee’, ‘candidate’, ‘election’, and ‘Federal office’ have
the meaning given such terms in section 301 of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 431).’’.
SEC. 13. EFFECTIVE DATE.
Except as otherwise provided, the amendments made
by this Act shall apply with respect to elections and trans-
actions occurring after December 31, 2000.
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