‘‘(C) to an entity established, financed, 
maintained, or controlled by a covered legislative 
branch official or covered executive branch offi-
cial, or an entity designated by such official; or 
‘‘(D) to pay the costs of a meeting, retreat, 
conference, or substantially similar event held 
by, or for the benefit of, 1 or more covered legis-
lative branch officials or covered executive 
branch officials; 
except that this paragraph shall not apply to any 
payment or reimbursement made from funds required 
to be reported under section 304 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 434); and 
‘‘(8) the name of each Member of Congress, and 
each employee of a Member of Congress, with whom 
any lobbying contact has been made on behalf of the 
client by the registrant or an employee listed as a lob-
byist by the registrant under paragraph (2)(C).’’. 
(b) FACTORS TO BE CONSIDERED TO DETERMINE RE-
LATIONSHIP
BETWEEN
OFFICIALS
AND
OTHER
ENTI-
TIES.—Section 5 of the Act (2 U.S.C. 1604), as amended 
by section 102(b) of this Act, is amended by adding at the 
end the following new subsection: 
‘‘(e) FACTORS
TO DETERMINE RELATIONSHIP BE-
TWEEN OFFICIALS AND OTHER ENTITIES.— 
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‘‘(1) IN GENERAL.—In determining under sub-
section (b)(7)(C) whether a covered legislative branch 
official or covered executive branch official directly or 
indirectly established, finances, maintains, or controls 
an entity, the factors described in paragraph (2) shall 
be examined in the context of the overall relationship 
between that covered official and the entity to deter-
mine whether the presence of any such factor or fac-
tors is evidence that the covered official directly or in-
directly established, finances, maintains, or controls 
the entity. 
‘‘(2) FACTORS.—The factors referred to in para-
graph (1) include, but are not limited to, the fol-
lowing: 
‘‘(A) Whether the covered official, directly or 
through its agent, owns a controlling interest in 
the voting stock or securities of the entity. 
‘‘(B) Whether the covered official, directly or 
through its agent, has the authority or ability to 
direct or participate in the governance of the en-
tity through provisions of constitutions, bylaws, 
contracts, or other rules, or through formal or in-
formal practices or procedures. 
‘‘(C) Whether the covered official, directly or 
through its agent, has the authority or ability to 
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hire, appoint, demote, or otherwise control the of-
ficers or other decisionmaking employees or 
members of the entity. 
‘‘(D) Whether the covered official has a com-
mon or overlapping membership with the entity 
that indicates a formal or ongoing relationship 
between the covered official and the entity. 
‘‘(E) Whether the covered official has com-
mon or overlapping officers or employees with 
the entity that indicates a formal or ongoing re-
lationship between the covered official and the 
entity. 
‘‘(F) Whether the covered official has any 
members, officers, or employees who were mem-
bers, officers, or employees of the entity that in-
dicates a formal or ongoing relationship between 
the covered official and the entity, or that indi-
cates the creation of a successor entity. 
‘‘(G) Whether the covered official, directly 
or through its agent, provides funds or goods in 
a significant amount or on an ongoing basis to 
the entity, such as through direct or indirect 
payments for administrative, fundraising, or 
other costs. 
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‘‘(H) Whether the covered official, directly 
or through its agent, causes or arranges for funds 
in a significant amount or on an ongoing basis 
to be provided to the entity. 
‘‘(I) Whether the covered official, directly or 
through its agent, had an active or significant 
role in the formation of the entity. 
‘‘(J) Whether the covered official and the en-
tity have similar patterns of receipts or disburse-
ments that indicate a formal or ongoing rela-
tionship between the covered official and the en-
tity.’’. 
(c) CONFORMING AMENDMENT.—Section 3 of the Act 
(2 U.S.C. 1602) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(17) GIFT.—The term ‘gift’ means a gratuity, 
favor, discount, entertainment, hospitality, loan, for-
bearance, or other item having monetary value. The 
term includes gifts of services, training, and meals, 
whether provided in kind, by purchase of a ticket, 
payment in advance, or reimbursement after the ex-
pense has been incurred. 
‘‘(18) LEADERSHIP PAC.—The term ‘leadership 
PAC’ means an unauthorized political committee that 
is established, financed, maintained, and controlled 
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by an individual who is a Federal officeholder or a 
candidate for Federal office.’’. 
(d) NOTIFICATION OF MEMBERS.—Section 6(2) of the 
Act (2 U.S.C. 1605(2)) is amended— 
(1) by striking ‘‘review’’ and inserting ‘‘(A) re-
view’’; 
(2) by inserting ‘‘and’’ after the semicolon at the 
end; and 
(3) by adding at the end the following: 
‘‘(B) if a report states (under section 5(b)(8) or 
otherwise) that a Member of Congress, or an employee 
of a Member of Congress, was the subject of a lobbying 
contact, immediately inform that Member or employee 
(as the case may be) of that report;’’. 
SEC. 106. INCREASED PENALTY FOR FAILURE TO COMPLY 
WITH 
LOBBYING 
DISCLOSURE 
REQUIRE-
MENTS. 
Section 7 of the Act (2 U.S.C. 1606) is amended— 
(1) by striking ‘‘Whoever’’ and inserting ‘‘(a) 
CIVIL PENALTY.—Whoever’’; 
(2) 
by 
striking 
‘‘$50,000’’ 
and 
inserting 
‘‘$100,000’’; and 
(3) by adding at the end the following: 
‘‘(b) CRIMINAL PENALTY.— 
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‘‘(1) IN
GENERAL.—Whoever knowingly and 
willfully fails to comply with any provision of this 
Act shall be imprisoned not more than 3 years, or 
fined under title 18, United States Code, or both. 
‘‘(2) CORRUPTLY.—Whoever knowingly, willfully, 
and corruptly fails to comply with any provision of 
this Act shall be imprisoned not more than 5 years, 
or fined under title 18, United States Code, or both.’’. 
SEC. 107. REQUIRING LOBBYISTS TO FILE REPORTS ON SO-
LICITATIONS AND TRANSFERS OF CONTRIBU-
TIONS FOR CANDIDATES. 
(a) REPORTS REQUIRED.—Section 5 of the Act (2 
U.S.C. 1604), as amended by sections 102(b) and 105(b), 
is amended by adding at the end the following new sub-
section: 
‘‘(f) REPORTS OF SOLICITATIONS AND TRANSFERS OF 
CONTRIBUTIONS IN FEDERAL ELECTIONS.— 
‘‘(1) REPORTS OF SOLICITATIONS AND TRANS-
FERS REQUIRED.—Any lobbyist registered under sec-
tion 4 who solicits a contribution for or on behalf of 
a candidate or political committee from any other 
person and transmits the contribution to the can-
didate or political committee, or who transfers any 
contribution made by any other person to a candidate 
or political committee, shall file a report with the 
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Secretary of the Senate and the Clerk of the House of 
Representatives containing— 
‘‘(A) the name, address, business telephone 
number, and principal place of business of the 
lobbyist, and a general description of the lobby-
ist’s business or activities; 
‘‘(B) the name of the person from whom the 
lobbyist solicited the contribution or from whom 
the lobbyist transferred the contribution; and 
‘‘(C) the identity of the candidate or polit-
ical committee on whose behalf the contribution 
was solicited and transmitted or transferred 
(and, in the case of a political committee which 
is an authorized committee of a candidate, the 
identity of the candidate). 
‘‘(2) REPORTS OF SERVICE AS OFFICER OF PO-
LITICAL COMMITTEE.—Any lobbyist registered under 
section 4 who serves as the treasurer of an authorized 
committee of a candidate for election for Federal of-
fice or as the treasurer or chair of any other political 
committee, shall file a report with the Secretary of the 
Senate and the Clerk of the House of Representatives 
containing the position held by the lobbyist and the 
identity of the candidate and committee involved. 
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‘‘(3) TIMING OF REPORTS.—Reports required to 
be filed under this subsection shall be filed for the 
same time periods required for political committees 
under section 304(a)(4)(B) of the Federal Election 
Campaign Act of 1971, except that a report is not re-
quired to be filed under this subsection with respect 
to any month during which the lobbyist did not so-
licit and transmit or transfer a contribution described 
in paragraph (1) or serve in a position described in 
paragraph (2). 
‘‘(4) EXCEPTION
FOR
LOBBYISTS
AS
CAN-
DIDATES.—In the case of a lobbyist who is a can-
didate for election for Federal office, paragraph (1) 
shall not apply to a contribution made to the lobbyist 
or to an authorized committee of the lobbyist. 
‘‘(5) DEFINITIONS.—In this subsection, the terms 
‘authorized committee’, ‘candidate’, ‘election’, and ‘po-
litical committee’ have the meanings given those 
terms in section 301 of the Federal Election Cam-
paign Act of 1971.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to solicitations or trans-
fers made on or after the date of enactment of this Act. 
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SEC. 108. GAO STUDY OF EMPLOYMENT CONTRACTS OF 
LOBBYISTS. 
The Comptroller General of the United States shall 
conduct a study of employment contracts of lobbyists in 
order to determine the extent of contingent fee agreements, 
and shall report the findings of the study to the Committee 
on the Judiciary of the House of Representatives. 
TITLE II—SLOWING THE 
REVOLVING DOOR 
SEC. 201. NOTIFICATION OF POST-EMPLOYMENT RESTRIC-
TIONS. 
Section 207(e) of title 18, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(8) NOTIFICATION
OF
POST-EMPLOYMENT
RE-
STRICTIONS.—After a Member of the House of Rep-
resentatives or an elected officer of the House of Rep-
resentatives leaves office, or after the termination of 
employment with the House of Representatives of an 
employee of the House of Representatives covered 
under paragraph (2), (3), or (4), the Clerk of the 
House of Representatives, after consultation with the 
Committee on Standards of Official Conduct, shall in-
form the Member, officer, or employee of the beginning 
and ending date of the prohibitions that apply to the 
Member, officer, or employee under this subsection, 
and also inform each office of the House of Represent-
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atives with respect to which such prohibitions apply 
of those dates.’’. 
SEC. 202. DISCLOSURE BY MEMBERS OF THE HOUSE OF 
REPRESENTATIVES OF EMPLOYMENT NEGO-
TIATIONS. 
The Code of Official Conduct set forth in rule XXIII 
of the Rules of the House of Representatives is amended by 
redesignating clause 14 as clause 15 and by inserting after 
clause 13 the following new clause: 
‘‘14. (a) A Member, Delegate, or Resident Commis-
sioner shall file with the Committee on Standards of Offi-
cial Conduct a statement that he or she is negotiating com-
pensation for prospective employment or has any arrange-
ment concerning prospective employment if a conflict of in-
terest or the appearance of a conflict of interest may exist. 
Such statement shall be made within 5 days (other than 
Saturdays, Sundays, or public holidays) after commencing 
the negotiation for compensation or entering into the ar-
rangement. 
‘‘(b) A Member, Delegate, or Resident Commissioner 
should refrain from voting on any legislative measure pend-
ing before the House or any committee thereof if the negotia-
tion described in subparagraph (a) may create a conflict 
of interest.’’. 
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SEC. 203. WRONGFULLY INFLUENCING, ON A PARTISAN 
BASIS, AN ENTITY’S EMPLOYMENT DECISIONS 
OR PRACTICES. 
The Code of Official Conduct set forth in rule XXIII 
of the Rules of the House of Representatives (as amended 
by section 202) is further amended by redesignating clause 
15 as clause 16 and by inserting after clause 14 the fol-
lowing new clause: 
‘‘15. A Member, Delegate, Resident Commissioner, offi-
cer, or employee of the House may not, with the intent to 
influence on the basis of political party affiliation an em-
ployment decision or employment practice of any private 
or public entity (except for the Congress)— 
‘‘(a) take or withhold, or offer or threaten to take 
or withhold, an official act; or 
‘‘(b) influence, or offer or threaten to influence, 
the official act of another.’’. 
TITLE III—SUSPENSION OF PRI-
VATELY-FUNDED 
TRAVEL; 
CURBING LOBBYIST GIFTS 
SEC. 301. SUSPENSION OF PRIVATELY-FUNDED TRAVEL. 
Notwithstanding clause 5 of rule XXV of the Rules of 
the House of Representatives, no Member, Delegate, Resi-
dent Commissioner, officer, or employee of the House may 
accept a gift of travel (including any transportation, lodg-
ing, and meals during such travel) from any private source. 
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SEC. 302. RECOMMENDATIONS FROM THE COMMITTEE ON 
STANDARDS 
OF 
OFFICIAL 
CONDUCT 
ON 
GIFTS AND TRAVEL. 
Not later than December 15, 2006, the Committee on 
Standards of Official Conduct shall report its recommenda-
tions on changes to rule XXV of the Rules of the House of 
Representatives to the Committee on Rules. In developing 
such recommendations, the Committee on Standards of Offi-
cial Conduct shall consider the following: 
(1) The ability of the current provisions of rule 
XXV to protect the House, its Members, officers, and 
employees, from the appearance of impropriety. 
(2) With respect to the allowance for privately- 
funded travel contained in clause 5(b) of rule XXV— 
(A) the degree to which privately-funded 
travel meets the representational needs of the 
House, its Members, officers, and employees; 
(B) whether certain entities should or 
should not be permitted to fund the travel of the 
Members, officers, and employees of the House, 
what sources of funding may be permissible, and 
what other individuals may participate in that 
travel; and 
(C) the adequacy of the current system of 
approval and disclosure of such travel. 
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(3) With respect to the exceptions to the limita-
tion on the acceptance of gifts contained in clause 
5(a)— 
(A) the degree to which those exceptions 
meet the representational and personal needs of 
the House, its Members, officers, and employees; 
(B) the clarity of the limitation and its ex-
ceptions; and 
(C) the suitability of the current dollar lim-
itations contained in clause 5(a)(1)(B) of such 
rule, including whether such limitations should 
be lowered. 
SEC. 303. PROHIBITING REGISTERED LOBBYISTS ON COR-
PORATE FLIGHTS. 
The Lobbying Disclosure Act of 1995 is amended by 
inserting after section 5 the following new section: 
‘‘SEC. 5A. PROHIBITING REGISTERED LOBBYISTS ON COR-
PORATE FLIGHTS. 
‘‘If a Representative in, or Delegate or Resident Com-
missioner to, the Congress, or an officer or employee of the 
House of Representatives, is a passenger or crew member 
on a flight of an aircraft that is not licensed by the Federal 
Aviation Administration to operate for compensation or 
hire and that is owned or operated by a person who is the 
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client of a lobbyist or a lobbying firm, then such lobbyist 
may not be a passenger or crew member on that flight.’’. 
SEC. 304. VALUATION OF TICKETS TO SPORTING AND EN-
TERTAINMENT EVENTS. 
Clause 5(a)(2)(A) of rule XXV of the Rules of the 
House of Representatives is amended by— 
(1) inserting ‘‘(i)’’ after ‘‘(A)’’; and 
(2) adding at the end the following: 
‘‘(ii) A gift of a ticket to a sporting or entertainment 
event shall be valued at the face value of the ticket, provided 
that in the case of a ticket without a face value, the ticket 
shall be valued at the highest cost of a ticket with a face 
value for the event.’’. 
TITLE IV—OVERSIGHT OF 
LOBBYING AND ENFORCEMENT 
SEC. 401. AUDITS OF LOBBYING REPORTS BY HOUSE IN-
SPECTOR GENERAL. 
(a) ACCESS TO LOBBYING REPORTS.—The Office of 
Inspector General of the House of Representatives shall have 
access to all lobbyists’ disclosure information received by 
the Clerk of the House of Representatives under the Lob-
bying Disclosure Act of 1995 and shall conduct random au-
dits of lobbyists’ disclosure information as necessary to en-
sure compliance with that Act. 
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(b) REFERRAL AUTHORITY.—The Office of the Inspec-
tor General of the House of Representatives may refer po-
tential violations by lobbyists of the Lobbying Disclosure 
Act of 1995 to the Department of Justice for disciplinary 
action. 
SEC. 402. HOUSE INSPECTOR GENERAL REVIEW AND AN-
NUAL REPORTS. 
(a) ONGOING
REVIEW
REQUIRED.—The Inspector 
General of the House of Representatives shall review on an 
ongoing basis the activities carried out by the Clerk of the 
House of Representatives under section 6 of the Lobbying 
Disclosure Act of 1995 (2 U.S.C. 1605). The review shall 
emphasize— 
(1) the effectiveness of those activities in securing 
the compliance by lobbyists with the requirements of 
that Act; and 
(2) whether the Clerk has the resources and au-
thorities needed for effective oversight and enforcement 
of that Act. 
(b) ANNUAL REPORTS.—Not later than December 31 
of each year, the Inspector General of the House of Rep-
resentatives shall submit to the House of Representatives a 
report on the review required by subsection (a). The report 
shall include the Inspector General’s assessment of the mat-
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ters required to be emphasized by that subsection and any 
recommendations of the Inspector General to— 
(1) improve the compliance by lobbyists with the 
requirements of the Lobbying Disclosure Act of 1995; 
and 
(2) provide the Clerk of the House of Representa-
tives with the resources and authorities needed for ef-
fective oversight and enforcement of that Act. 
TITLE V—INSTITUTIONAL 
REFORMS 
SEC. 501. EARMARKING REFORM. 
(a) In the House of Representatives, it shall not be in 
order to consider— 
(1) a general appropriation bill reported by the 
Committee on Appropriations unless the report in-
cludes a list of earmarks in the bill or in the report 
(and the name of any Member who submitted a re-
quest to the Committee on Appropriations for an ear-
mark included in such list); or 
(2) a conference report to accompany a general 
appropriation bill unless the joint explanatory state-
ment prepared by the managers on the part of the 
House and the managers on the part of the Senate in-
cludes a list of earmarks in the conference report or 
joint statement (and the name of any Member who 
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submitted a request to the Committee on Appropria-
tions for an earmark included in such list) that 
were— 
(A) not committed to the conference com-
mittee by either House; 
(B) not in the report specified in paragraph 
(1); and 
(C) not in a report of a committee of the 
Senate on a companion measure. 
(b) In the House of Representatives, it shall not be in 
order to consider a rule or order that waives the application 
of subsection (a)(2). 
(c)(1) A point of order raised under subsection (a) may 
be based only on the failure of a report of the Committee 
on Appropriations or joint statement, as the case may be, 
to include the list required by subsection (a). 
(2) As disposition of a point of order under this sec-
tion, the Chair shall put the question of consideration with 
respect to the proposition that is the subject of the point 
of order. 
(3) The question of consideration under this subsection 
shall be debatable for 10 minutes by the Member initiating 
the point of order and for 10 minutes by an opponent, but 
shall otherwise be decided without intervening motion ex-
cept one that the House adjourn. 
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(d)(1) For purposes of this section, the term ‘‘earmark’’ 
means a provision in a bill, joint resolution, or conference 
report, or language in an accompanying committee report 
or joint statement of managers, providing a specific amount 
of discretionary budget authority to a non-Federal entity, 
if such entity is identified by name. 
(2) For purposes of paragraph (1), government-spon-
sored enterprises, Federal facilities, and Federal lands shall 
be considered Federal entities. 
(3) For purposes of subsection (a), to the extent that 
the non-Federal entity is a unit of State or local govern-
ment, an Indian tribe, or a foreign government, the provi-
sion or language shall not be considered an earmark unless 
the provision or language also specifies the specific purpose 
for which the designated budget authority is to be expended. 
SEC. 502. FREQUENT AND COMPREHENSIVE ETHICS TRAIN-
ING. 
(a) ETHICS TRAINING.— 
(1) IN GENERAL.—The Committee on Standards 
of Official Conduct shall provide ethics training once 
per Congress to each employee of the House of Rep-
resentatives, including training on the Code of Offi-
cial Conduct, related rules of the House of Represent-
atives, and applicable provisions of law. 
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(2) NEW EMPLOYEES.—A new employee of the 
House of Representatives shall receive training under 
this section not later than 30 days after beginning 
service to the House. 
(3) MEMBERS.—While the House of Representa-
tives recognizes that adding qualifications to service 
as a Member may be unconstitutional, it encourages 
Members to participate in ethics training. 
(b) CERTIFICATION.—Within 30 days of completing re-
quired ethics training, each employee of the House of Rep-
resentatives shall file a certification with the Committee on 
Standards of Official Conduct that the employee has com-
pleted such training and is familiar with the contents of 
any pertinent publications that are so designated by the 
committee. 
SEC. 503. BIENNIAL PUBLICATION OF ETHICS MANUAL. 
Within 120 days after the date of enactment of this 
Act and during each Congress thereafter, the Committee on 
Standards of Official Conduct shall publish an up-to-date 
ethics manual for Members, officers, and employees of the 
House of Representatives and make such manual available 
to all such individuals. The committee has a duty to keep 
all Members, Delegates, the Resident Commissioner, officers, 
and employees of the House of Representatives apprised of 
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current rulings or advisory opinions when potentially con-
stituting changes to or interpretations of existing policies. 
TITLE VI—REFORM OF SECTION 
527 ORGANIZATIONS 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘527 Reform Act of 
2006’’. 
SEC. 602. TREATMENT OF SECTION 527 ORGANIZATIONS. 
(a) DEFINITION OF POLITICAL COMMITTEE.—Section 
301(4) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(4)) is amended— 
(1) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; or’’; and 
(2) by adding at the end the following: 
‘‘(D) any applicable 527 organization.’’. 
(b) DEFINITION
OF
APPLICABLE
527 ORGANIZA-
TION.—Section 301 of such Act (2 U.S.C. 431) is amended 
by adding at the end the following new paragraph: 
‘‘(27) APPLICABLE 527 ORGANIZATION.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (4)(D), the term ‘applicable 527 organiza-
tion’ means a committee, club, association, or 
group of persons that— 
‘‘(i) has given notice to the Secretary 
of the Treasury under section 527(i) of the 
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Internal Revenue Code of 1986 that it is to 
be treated as an organization described in 
section 527 of such Code; and 
‘‘(ii) is not described in subparagraph 
(B). 
‘‘(B) EXCEPTED ORGANIZATIONS.—A com-
mittee, club, association, or other group of per-
sons described in this subparagraph is— 
‘‘(i) an organization described in sec-
tion 527(i)(5) of the Internal Revenue Code 
of 1986; 
‘‘(ii) an organization which is a com-
mittee, club, association or other group of 
persons that is organized, operated, and 
makes disbursements exclusively for paying 
expenses described in the last sentence of 
section 527(e)(2) of the Internal Revenue 
Code of 1986 or expenses of a newsletter 
fund described in section 527(g) of such 
Code; 
‘‘(iii) an organization which is a com-
mittee, club, association, or other group that 
consists solely of candidates for State or 
local office, individuals holding State or 
local office, or any combination of either, 
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but only if the organization refers only to 
one or more non-Federal candidates or ap-
plicable State or local issues in all of its 
voter drive activities and does not refer to 
a Federal candidate or a political party in 
any of its voter drive activities; or 
‘‘(iv) an organization described in sub-
paragraph (C). 
‘‘(C) 
APPLICABLE
ORGANIZATION.—For 
purposes of subparagraph (B)(iv), an organiza-
tion described in this subparagraph is a com-
mittee, club, association, or other group of per-
sons whose election or nomination activities re-
late exclusively to— 
‘‘(i) elections where no candidate for 
Federal office appears on the ballot; or 
‘‘(ii) one or more of the following pur-
poses: 
‘‘(I) Influencing the selection, 
nomination, election, or appointment 
of one or more candidates to non-Fed-
eral offices. 
‘‘(II) Influencing one or more ap-
plicable State or local issues. 
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‘‘(III) Influencing the selection, 
appointment, 
nomination, 
or 
con-
firmation of one or more individuals to 
non-elected offices. 
‘‘(D) EXCLUSIVITY
TEST.—A committee, 
club, association, or other group of persons shall 
not be treated as meeting the exclusivity require-
ment of subparagraph (C) if it makes disburse-
ments aggregating more than $1,000 for any of 
the following: 
‘‘(i) A public communication that pro-
motes, supports, attacks, or opposes a clear-
ly identified candidate for Federal office 
during the 1-year period ending on the date 
of the general election for the office sought 
by the clearly identified candidate (or, if a 
runoff election is held with respect to such 
general election, on the date of the runoff 
election). 
‘‘(ii) Any voter drive activity during a 
calendar year, except that no disbursements 
for any voter drive activity shall be taken 
into account under this subparagraph if the 
committee, club, association, or other group 
of persons during such calendar year— 
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‘‘(I) makes disbursements for voter 
drive activities with respect to elections 
in only 1 State and complies with all 
applicable election laws of that State, 
including laws related to registration 
and reporting requirements and con-
tribution limitations; 
‘‘(II) refers to one or more non- 
Federal candidates or applicable State 
or local issues in all of its voter drive 
activities and does not refer to any 
Federal candidate or any political 
party in any of its voter drive activi-
ties; 
‘‘(III) does not have a candidate 
for Federal office, an individual who 
holds any Federal office, a national po-
litical party, or an agent of any of the 
foregoing, control or materially par-
ticipate in the direction of the organi-
zation, solicit contributions to the or-
ganization (other than funds which are 
described under clauses (i) and (ii) of 
section 323(e)(1)(B)), or direct dis-
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bursements, in whole or in part, by the 
organization; and 
‘‘(IV) makes no contributions to 
Federal candidates. 
‘‘(E) CERTAIN
REFERENCES
TO
FEDERAL 
CANDIDATES
NOT
TAKEN
INTO
ACCOUNT.—For 
purposes 
of 
subparagraphs 
(B)(iii) 
and 
(D)(ii)(II), a voter drive activity shall not be 
treated as referring to a clearly identified Fed-
eral candidate if the only reference to the can-
didate in the activity is— 
‘‘(i) a reference in connection with an 
election for a non-Federal office in which 
such Federal candidate is also a candidate 
for such non-Federal office; or 
‘‘(ii) a reference to the fact that the 
candidate has endorsed a non-Federal can-
didate or has taken a position on an appli-
cable State or local issue, including a ref-
erence that constitutes the endorsement or 
position itself. 
‘‘(F) CERTAIN REFERENCES TO POLITICAL 
PARTIES NOT TAKEN INTO ACCOUNT.—For pur-
poses of subparagraphs (B)(iii) and (D)(ii)(II), 
a voter drive activity shall not be treated as re-
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ferring to a political party if the only reference 
to the party in the activity is— 
‘‘(i) a reference for the purpose of iden-
tifying a non-Federal candidate; 
‘‘(ii) a reference for the purpose of 
identifying the entity making the public 
communication or carrying out the voter 
drive activity; or 
‘‘(iii) a reference in a manner or con-
text that does not reflect support for or op-
position to a Federal candidate or can-
didates and does reflect support for or oppo-
sition to a State or local candidate or can-
didates or an applicable State or local 
issue. 
‘‘(G) 
APPLICABLE
STATE
OR
LOCAL 
ISSUE.—For purposes of this paragraph, the 
term ‘applicable State or local issue’ means any 
State or local ballot initiative, State or local ref-
erendum, State or local constitutional amend-
ment, State or local bond issue, or other State or 
local ballot issue.’’. 
(c) DEFINITION OF VOTER DRIVE ACTIVITY.—Section 
301 of such Act (2 U.S.C. 431), as amended by subsection 
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(b), is further amended by adding at the end the following 
new paragraph: 
‘‘(28) VOTER DRIVE ACTIVITY.—The term ‘voter 
drive activity’ means any of the following activities 
conducted in connection with an election in which a 
candidate for Federal office appears on the ballot (re-
gardless of whether a candidate for State or local of-
fice also appears on the ballot): 
‘‘(A) Voter registration activity. 
‘‘(B) Voter identification. 
‘‘(C) Get-out-the-vote activity. 
‘‘(D) Generic campaign activity. 
‘‘(E) Any public communication related to 
activities 
described 
in 
subparagraphs 
(A) 
through (D). 
Such term shall not include any activity described in 
subparagraph (A) or (B) of section 316(b)(2).’’. 
(d) REGULATIONS.—The Federal Election Commission 
shall promulgate regulations to implement this section not 
later than 60 days after the date of enactment of this Act. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date which is 60 days after 
the date of enactment of this Act. 
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SEC. 603. RULES FOR ALLOCATION OF EXPENSES BETWEEN 
FEDERAL AND NON-FEDERAL ACTIVITIES. 
(a) IN GENERAL.—Title III of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 325. ALLOCATION AND FUNDING RULES FOR CERTAIN 
EXPENSES RELATING TO FEDERAL AND NON- 
FEDERAL ACTIVITIES. 
‘‘(a) IN GENERAL.—In the case of any disbursements 
by any political committee that is a separate segregated 
fund or nonconnected committee for which allocation rules 
are provided under subsection (b)— 
‘‘(1) the disbursements shall be allocated between 
Federal and non-Federal accounts in accordance with 
this section and regulations prescribed by the Com-
mission; and 
‘‘(2) in the case of disbursements allocated to 
non-Federal accounts, may be paid only from a quali-
fied non-Federal account. 
‘‘(b) COSTS
TO BE ALLOCATED
AND ALLOCATION 
RULES.— 
‘‘(1) IN GENERAL.—Disbursements by any sepa-
rate segregated fund or nonconnected committee, other 
than an organization described in section 323(b)(1), 
for any of the following categories of activity shall be 
allocated as follows: 
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‘‘(A) 100 percent of the expenses for public 
communications or voter drive activities that 
refer to one or more clearly identified Federal 
candidates, but do not refer to any clearly iden-
tified non-Federal candidates, shall be paid with 
funds from a Federal account, without regard to 
whether the communication refers to a political 
party. 
‘‘(B) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the expenses for public communications 
and voter drive activities that refer to one or 
more clearly identified candidates for Federal of-
fice and one or more clearly identified non-Fed-
eral candidates shall be paid with funds from a 
Federal account, without regard to whether the 
communication refers to a political party. 
‘‘(C) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the expenses for public communications 
or voter drive activities that refer to a political 
party, but do not refer to any clearly identified 
Federal or non-Federal candidate, shall be paid 
with funds from a Federal account, except that 
this paragraph shall not apply to communica-
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tions or activities that relate exclusively to elec-
tions where no candidate for Federal office ap-
pears on the ballot. 
‘‘(D) At least 50 percent, or a greater per-
centage if the Commission so determines by regu-
lation, of the expenses for public communications 
or voter drive activities that refer to a political 
party and refer to one or more clearly identified 
non-Federal candidates, but do not refer to any 
clearly identified Federal candidates, shall be 
paid with funds from a Federal account, except 
that this paragraph shall not apply to commu-
nications or activities that relate exclusively to 
elections where no candidate for Federal office 
appears on the ballot. 
‘‘(E) Unless otherwise determined by the 
Commission in its regulations, at least 50 per-
cent of any administrative expenses, including 
rent, utilities, office supplies, and salaries not 
attributable to a clearly identified candidate, 
shall be paid with funds from a Federal account, 
except that for a separate segregated fund such 
expenses may be paid instead by its connected 
organization. 
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