I
105TH CONGRESS
1ST SESSION
H. R. 2573
To amend the Federal Election Campaign Act of 1971 to require that a
majority of the funds raised by a candidate for election to the Senate
or the House of Representatives come from individuals residing in the
State the candidate seeks to represent, to require labor organizations
to provide their members with information on the use of member dues
for political purposes, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 29, 1997
Mr. HAYWORTH introduced the following bill; which was referred to the
Committee on House Oversight
A BILL
To amend the Federal Election Campaign Act of 1971 to
require that a majority of the funds raised by a can-
didate for election to the Senate or the House of Rep-
resentatives come from individuals residing in the State
the candidate seeks to represent, to require labor organi-
zations to provide their members with information on
the use of member dues for political purposes, 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 ‘‘Election Reform in
Campaigns Act’’.
SEC. 2. REQUIRING MAJORITY OF HOUSE OF REPRESENTA-
TIVES CANDIDATE FUNDS TO COME FROM IN-
DIVIDUALS RESIDING IN DISTRICT.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a) is amended by adding at the end
the following new subsection:
‘‘(i) A candidate for the office of Senator or the office
of Representative in, or Delegate or Resident Commis-
sioner to, the Congress may not accept contributions with
respect to an election cycle from persons other than indi-
viduals who reside in the State involved in excess of the
total of contributions accepted from individuals who reside
in the State involved.’’.
SEC. 3. WORKER RIGHT TO KNOW.
(a) CONTRIBUTIONS OF LABOR ORGANIZATIONS TO
ALL POLITICAL COMMITTEES INCLUDED.—Paragraph (2)
of section 316(b) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441b(b)(2)) is amended by inserting
‘‘political committee,’’ after ‘‘campaign committee,’’.
(b) APPLICABILITY OF REQUIREMENTS TO LABOR
ORGANIZATIONS.—Section 316(b) of such Act (2 U.S.C.
441b(b)) is amended by adding at the end the following
new paragraph:
ployment, the employee may elect instead to pay an
agency fee to the labor organization;
‘‘(iii) that the amount of the agency fee shall be
limited to the employee’s pro rata share of the cost
of the labor organization’s exclusive representation
services to the employee’s collective bargaining unit,
including collective bargaining, contract administra-
tion, and grievance adjustment;
‘‘(iv) that an employee who elects to be a full
member of the labor organization and pay member-
ship dues is entitled to a reduction of those dues by
the employee’s pro rata share of the total spending
by the labor organization for political activities;
‘‘(v) that the cost of the labor organization’s ex-
clusive representation services, and the amount of
spending by such organization for political activities,
shall be computed on the basis of such cost and
spending for the immediately preceding fiscal year of
such organization; and
‘‘(vi) of the amount of the labor organization’s
full membership dues, initiation fees, and assess-
ments for the current year; the amount of the re-
duced membership dues, subtracting the employee’s
pro rata share of the organization’s spending for po-
litical activities, for the current year; and the
amount of the agency fee for the current year.
‘‘(C) The requirements of this subparagraph are met
only if the labor organization provides all represented em-
ployees an annual examination by an independent certified
public accountant of financial statements supplied by such
organization which attests that the expenditures which the
union claimed it made for certain expenses were actually
made for those expenses. Such examination shall be con-
ducted in accordance with generally accepted auditing
standards.
‘‘(D) The requirements of this subparagraph are met
only if the labor organization—
‘‘(i) maintains procedures to promptly deter-
mine the costs that may properly be charged to
agency fee payors as costs of exclusive representa-
tion, and explains such procedures in the written no-
tification required under subparagraph (B); and
‘‘(ii) if any person challenges the costs which
may be properly charged as costs of exclusive rep-
resentation—
‘‘(I) provides a mutually selected impartial
decisionmaker to hear and decide such chal-
lenge pursuant to rules of discovery and evi-
dence and subject to de novo review by the Na-
tional Labor Relations Board or an applicable
court; and
‘‘(II) places in escrow amounts reasonably
in dispute pending the outcome of the chal-
lenge.
‘‘(E)(i) A labor organization that does not satisfy the
requirements of subparagraphs (B), (C), and (D) shall fi-
nance any expenditures specified in subparagraphs (A),
(B), or (C) of paragraph (2) only with funds legally col-
lected under this Act for its separate segregated fund.
‘‘(ii) For purposes of this paragraph, subparagraph
(A) of paragraph (2) shall apply only with respect to com-
munications expressly advocating the election or defeat of
any clearly identified candidate for elective public office.’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall apply to contributions and
expenditures made after the date of the enactment of this
Act.
SEC. 4. PROMOTING DISCLOSURE OF INFORMATION ON
CAMPAIGN 
SPENDING 
BY 
ELIMINATING
THRESHOLDS FOR REPORTING.
Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434) is amended—
(1) by striking ‘‘$200’’ each place it appears in
subsections 
(b)(3)(A), 
(b)(3)(F), 
(b)(3)(G),
(b)(5)(A), (b)(6)(A), (b)(6)(B)(iii), (b)(6)(B)(v), and
(c)(2)(C) and inserting ‘‘$1’’; and
(2) in subsection (c)(1), by striking ‘‘$250’’ and
inserting ‘‘$1’’.
SEC. 5. EQUALIZATION OF LIMITS ON CONTRIBUTIONS TO
CANDIDATES BY INDIVIDUALS AND PACS.
Section 315(a) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a(a)) is amended—
(1) in paragraph (1)(A), by striking ‘‘$1,000’’
and inserting ‘‘$2,500’’; and
(2) in paragraph (2)(A), by striking ‘‘$5,000’’
and inserting ‘‘$2,500’’.
SEC. 6. INDEXING OF AMOUNT OF LIMITATION ON AGGRE-
GATE ANNUAL INDIVIDUAL CONTRIBUTIONS.
Section 315(a)(3) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a(a)(3)) is amended—
(1) by striking ‘‘(3)’’ and inserting ‘‘(3)(A)’’;
and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) For calendar years beginning with 1999, the
amount in effect under this paragraph shall be equal to
the amount in effect in the previous calendar year, in-
creased (in a compounded manner) by the percentage in-
crease in the price index (as defined in subsection (c)(2))