I
104TH CONGRESS
2D SESSION
H. R. 3760
To amend the Federal Election Campaign Act of 1971 to reform the financing
of Federal election campaigns, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 9, 1996
Mr. THOMAS (for himself, Mr. GINGRICH, Mr. ARMEY, Mr. DELAY, Mr.
BOEHNER, Mr. PAXON, Mr. HOEKSTRA, Mr. WAMP, and Mr. EHLERS)
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
reform the financing of Federal election campaigns, 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Campaign Finance Reform Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I—RESTORING CONTROL OF ELECTIONS TO INDIVIDUALS
Sec. 101. Requiring majority of House of Representatives candidate funds to
come from individuals residing in district.
Sec. 102. Reduction in allowable contribution amounts for political action com-
mittees in Federal elections to level allowed for individuals.
Sec. 103. Modification of limitations on contributions when candidates spend or
contribute large amounts of personal funds.
Sec. 104. Indexing limits on contributions.
Sec. 105. Prohibition of leadership committees.
Sec. 106. Prohibiting bundling of contributions to candidates by political action
committees and lobbyists.
Sec. 107. Definition of independent expenditures.
Sec. 108. Requirements for use of payroll deductions for contributions.
TITLE II—STRENGTHENING POLITICAL PARTIES
Sec. 201. Modification of contribution limits and requirements for political par-
ties.
Sec. 202. Allowing political parties to offset funds carried over from previous
elections.
Sec. 203. Prohibiting use of non-Federal funds in Federal elections.
Sec. 204. Permitting parties to have unlimited communication with members.
Sec. 205. Promoting State and local party volunteer and grassroots activity.
TITLE III—DISCLOSURE AND ENFORCEMENT
Sec. 301. Timely reporting and increased disclosure.
Sec. 302. Streamlining procedures and rules of Federal Election Commission.
TITLE IV—GENERAL PROVISIONS
Sec. 401. Effective date.
Sec. 402. Severability.
Sec. 403. Expedited court review.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Our republican form of government is
strengthened when voters choose their representa-
tives in elections that are free of corruption or the
appearance of corruption.
(2) Corruption or the appearance of corruption
in elections may evidence itself in many ways:
(A) Voters who democratically elect rep-
resentatives must believe they are fairly rep-
resented by those they elect. The current elec-
tion laws have led many to believe that the in-
terests of those who actually vote for their rep-
resentatives are less important than those who
cannot vote, but who can influence an election
by their contributions to the candidates.
(B) Failure to disclose, or timely disclose,
those who contribute and how much they con-
tribute unnecessarily withholds information vot-
ers need to cast ballots with complete con-
fidence, thereby increasing the belief of, or the
appearance of, corruption.
(C) The diminishing role of political par-
ties, despite parties’ long-standing role in ad-
vancing broad national agendas, in assisting the
election of party candidates, and in organizing
members, has relatively enhanced groups that
pursue narrower interests. This relative shift of
influence has been interpreted by some as cor-
rupting the election process.
(D) Complicated and obsolete election laws
and rules discourage citizens from becoming
candidates, allow for coerced involuntary pay-
ments for political purposes, fail to keep con-
tribution amounts current with inflation, and
fail to provide reasonable compensating con-
tribution limits for candidates who run against
candidates who wish to exercise their constitu-
tional right of spending their own resources.
The current state of laws and rules is such that
if they do not corrupt, at the very least they un-
duly hinder fair, honest, and competitive elec-
tions.
TITLE I—RESTORING CONTROL
OF ELECTIONS TO INDIVIDUALS
SEC. 101. REQUIRING MAJORITY OF HOUSE OF REP-
RESENTATIVES CANDIDATE FUNDS TO COME
FROM INDIVIDUALS RESIDING IN DISTRICT.
(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) A candidate for the office of Representative
in, or Delegate or Resident Commissioner to, the Congress
may not accept contributions with respect to an election
cycle from persons other than local individual residents to-
taling in excess of the total of contributions accepted from
local individual residents (as determined on the basis of
the most recent information included in reports pursuant
to section 304(d).
‘‘(2) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, con-
tributions of the candidate’s personal funds shall be sub-
ject to the following rules:
‘‘(A) To the extent that the amount of the con-
tribution does not exceed the limitation on contribu-
tions made by an individual under subsection
(a)(1)(A), such contribution shall be treated as any
other contribution.
‘‘(B) The portion (if any) of the contribution
which exceeds the limitation on contributions which
may be made by an individual under subsection
(a)(1)(A) shall be allocated in accordance with para-
graph (8).
‘‘(3) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, con-
tributions from a political party or a political party com-
mittee shall be allocated in accordance with paragraph (8).
‘‘(4) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, any
funds remaining in the candidate’s campaign account
after the filing of the post-general election report under
section 304(a)(2)(A)(ii) for the most recent general elec-
tion shall be allocated in accordance with paragraph (8).
‘‘(5) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, any
contributions accepted pursuant to subsection (j) which
are from persons other than local individual residents shall
be allocated in accordance with paragraph (8).
‘‘(6)(A) Any candidate who accepts contributions that
exceed the limitation under this subsection, as determined
on the basis of information included in reports pursuant
to section 304(d), shall pay to the Commission at the time
of the filing of the report which contains the information,
for deposit in the Treasury, an amount equal to 3 times
the amount of the excess contributions (or, in the case
of a candidate described in subparagraph (C), an amount
equal to 5 times the amount of the excess contributions
plus a civil penalty in an amount determined by the Com-
mission).
‘‘(B) Any amounts paid by a candidate under this
paragraph shall be paid from contributions subject to the
limitations and prohibitions of this title, including the lim-
itation under this subsection.
‘‘(C) A candidate described in this subparagraph is
a candidate who accepts contributions that exceed the lim-
itation under this subsection as of the last day of the pe-
riod ending on the 20th day before an election or any pe-
riod ending after such 20th day and before or on the 20th
day after such election.
‘‘(7) As used in this subsection, the term ‘local indi-
vidual resident’ means an individual who resides in the
congressional district involved.
‘‘(8) For purposes of this subsection, any amounts
allocated in accordance with this paragraph shall be allo-
cated as follows:
‘‘(A) 50 percent of such amounts shall be
deemed to be contributions from local individual
residents.
‘‘(B) 50 percent of such amounts shall be
deemed to be contributions from persons other than
local individual residents.’’.
(b) REPORTING REQUIREMENTS.—Section 304 of
such Act (2 U.S.C. 434) is amended by adding at the end
the following new subsection:
‘‘(d) Each principal campaign committee of a can-
didate for the House of Representatives shall include the
following information in reports filed under subsection
(a)(2) and subsection (a)(6)(A):
‘‘(1) With respect to each report filed under
such subsection—
‘‘(A) the total contributions received by the
committee with respect to the election cycle in-
volved from local individual residents (as de-
fined in section 315(i)(7)), 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 cycle in-
volved which are not from local individual resi-
dents, as of the last day of the period covered
by the report; and
‘‘(C) a certification as to whether the con-
tributions reported comply with the limitation
under section 315(i), as of the last day of the
period covered by the report.
‘‘(2) In the case of the first report filed under
such subsection 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 cycle in-
volved from local individual residents (as de-
fined in section 315(i)(7)), as of the last day of
such period;
‘‘(B) the total contributions received by the
committee with respect to the election cycle in-
volved which are not from local individual resi-
dents, as of the last day of such period; and
‘‘(C) a certification as to whether the con-
tributions reported comply with the limitation
under section 315(i), as of the last day of such
period.’’.
SEC. 102. REDUCTION IN ALLOWABLE CONTRIBUTION
AMOUNTS FOR POLITICAL ACTION COMMIT-
TEES IN FEDERAL ELECTIONS TO LEVEL AL-
LOWED FOR INDIVIDUALS.
(a) IN GENERAL.—Section 315(a) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441a(a)) is
amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by inserting after
‘‘Federal office’’ the following: ‘‘or to any other
political committee other than a political party
committee in any calendar year’’,
(B) in subparagraph (A), by adding ‘‘or’’
at the end,
(C) in subparagraph (B), by striking ‘‘po-
litical committees established and maintained
by a national political party’’ and inserting ‘‘po-
litical party committees’’,
(D) in subparagraph (B), by striking ‘‘;
or’’ and inserting a period, and
(E) by striking subparagraph (C); and
(2) in subparagraph (B), by striking ‘‘multi-
candidate committees’’ the second place it appears
and inserting ‘‘such committees’’; and
(3) in subparagraph (C), by striking ‘‘multi-
candidate committees’’ and inserting ‘‘committees
described in subparagraph (B)’’.
SEC. 103. MODIFICATION OF LIMITATIONS ON CONTRIBU-
TIONS WHEN CANDIDATES SPEND OR CON-
TRIBUTE LARGE AMOUNTS OF PERSONAL
FUNDS.
(a) IN GENERAL.—Section 315 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441a), as amended
by section 101(a), is further amended by adding at the
end the following new subsection:
‘‘(j)(1) Notwithstanding subsection (a), if in a gen-
eral election a House candidate makes expenditures of per-
sonal funds (including contributions by the candidate to
the candidate’s authorized campaign committee) in an
amount in excess of the amount of the limitation estab-
lished under subsection (a)(1)(A) and less than or equal
to $150,000 (as reported under section 304(a)(2)(A)), a
political party committee may make contributions to an
opponent of the House candidate without regard to any
limitation otherwise applicable to such contributions under
subsection (a), except that the opponent may not accept
aggregate contributions under this paragraph in an
amount greater than the greatest amount of personal
funds expended (including contributions to the candidate’s
authorized campaign committee) by any House candidate
(other than such opponent) with respect to the election
(as reported in a notification submitted under section
304(a)(6)(B)).
‘‘(2) If a House candidate makes expenditures of per-
sonal funds (including contributions by the candidate to
the candidate’s authorized campaign committee) with re-
spect to an election in an amount greater than $150,000
(as reported under section 304(a)(2)(A)), the following
rules shall apply:
‘‘(A) In the case of a general election, the limi-
tations under subsections (a)(1) and (a)(2) (insofar
as such limitations apply to political party commit-
tees and to individuals) shall not apply to contribu-
tions to the candidate or to any opponent of the can-
didate, except that neither the candidate or any op-
ponent may accept aggregate contributions under
this subparagraph and paragraph (1) in an amount
greater than the greatest amount of personal funds
(including contributions to the candidate’s author-
ized campaign committee) expended by any House
candidate with respect to the election (as reported
in 
a 
notification 
submitted 
under 
section
304(a)(6)(B)).
‘‘(B) In the case of an election other than a
general election, the limitations under subsection
(a)(1) (insofar as such limitations apply to individ-
uals) shall not apply to contributions to the can-
didate or to any opponent of the candidate, except
that neither the candidate or any opponent may ac-
cept aggregate contributions under this subpara-
graph in an amount greater than the greatest
amount of personal funds (including contributions to
the candidate’s authorized campaign committee) ex-
pended by any House candidate with respect to the
election (as reported in a notification submitted
under section 304(a)(6)(B)).
‘‘(3) In this subsection, the term ‘House candidate’
means a candidate in an election for the office of Rep-
resentative in, or Delegate or Resident Commissioner to,
the Congress.’’.
(b) NOTIFICATION OF EXPENDITURES OF PERSONAL
FUNDS.—Section 304(a)(6) of such Act (2 U.S.C.
434(a)(6)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B)(i) The principal campaign committee of a
House candidate (as defined in section 315(j)(3)) shall
submit the following notifications relating to expenditures
of personal funds by such candidate (including contribu-
tions by the candidate to such committee):
‘‘(I) A notification of the first such expenditure
(or contribution) by which the aggregate amount of
personal funds expended (or contributed) with re-
spect to an election exceeds the amount of the limi-
tation established under section 315(a)(1)(A) for
elections in the year involved.
‘‘(II) A notification of each such expenditure
(or contribution) which, taken together with all such
expenditures (and contributions) in any amount not
included in the most recent report under this sub-
paragraph, totals $5,000 or more.
‘‘(III) A notification of the first such expendi-
ture (or contribution) by which the aggregate
amount of personal funds expended with respect to
the election exceeds the level applicable under sec-
tion 315(j)(2) for elections in the year involved.
‘‘(ii) Each of the notifications submitted under clause
(i)—
‘‘(I) shall be submitted not later than 24 hours
after the expenditure or contribution which is the
subject of the notification is made;
‘‘(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; and
‘‘(III) shall include the total amount of all such
expenditures and contributions made with respect to
the same election as of the date of expenditure or
contribution which is the subject of the notifica-
tion.’’.
SEC. 104. INDEXING LIMITS ON CONTRIBUTIONS.
(a) IN GENERAL.—Section 315(c) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441a(c)) is
amended by adding at the end the following new para-
graph:
‘‘(3)(A) The amount of each limitation established
under subsection (a) shall be adjusted as follows:
‘‘(i) For calendar year 1997, each such amount
shall be equal to the amount described in such sub-
section, increased (in a compounded manner) by the
percentage increase in the price index (as defined in
subsection (c)(2)) for each year after 1976 and be-
fore 1998.
‘‘(ii) For calendar year 1999 and each second
subsequent year, each such amount shall be equal to
the amount for the second previous year (as ad-
justed under this subparagraph), increased (in a
compounded manner) by the percentage increase in
the price index for the previous year and the second
previous year.
‘‘(B) In the case of any amount adjusted under this
subparagraph which is not a multiple of $500, the amount
shall be rounded to the nearest lowest multiple of $500.’’.
(b) APPLICATION
OF INDEXING
TO SUPPORT
OF
CANDIDATE’S
COMMITTEES.—Section 302(e)(3)(B) of
such Act (2 U.S.C. 432(e)(3)(B)) is amended by adding
at the end the following new sentence: ‘‘The amount de-
scribed in the previous sentence shall be adjusted (for
years beginning with 1997) in the same manner as the
amounts of limitations on contributions under section
315(a) are adjusted under section 315(c)(3).’’.
(c) APPLICATION OF INDEXING TO PROVISIONS RE-
LATING TO PERSONAL FUNDS.—
(1) IN GENERAL.—Section 315(j) of such Act
(2 U.S.C. 441a(j)), as added by section 103(a), is
amended—
(A) by redesignating paragraph (3) as
paragraph (4); and
(B) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) Each of the amounts provided under paragraph
(1) or (2) shall be adjusted for each biennial period begin-
ning after the 1998 general election in the same manner
as the amounts of limitations on contributions established
under subsection (a) are adjusted under subsection
(c)(3).’’.
(2) 
CONFORMING
AMENDMENT.—Section
304(a)(6)(B)(i) 
of 
such 
Act 
(2 
U.S.C.
434(a)(6)(B)(i)), as redesignated and amended by
section 103(b), is amended by striking ‘‘section
315(j)(3)’’ and inserting ‘‘section 315(j)(4)’’.
SEC. 105. PROHIBITION OF LEADERSHIP COMMITTEES.
(a) LEADERSHIP COMMITTEE PROHIBITION.—Sec-
tion 302 of the Federal Election Campaign Act of 1971
(2 U.S.C. 432) is amended by adding at the end the fol-
lowing new subsection:
‘‘(j) A candidate for Federal office or an individual
holding Federal office may not establish, maintain, fi-
nance, or control a political committee, other than a prin-
cipal campaign committee of the candidate or the individ-
ual.’’.
(b) CONFORMING AMENDMENT RELATING TO JOINT
FUNDRAISING.—Section 302(e)(3)(A) of such Act (2
U.S.C. 432(e)(3)) is amended by striking ‘‘except that—
’’ and all that follows and inserting the following: ‘‘except
that the candidate for the office of President nominated
by a political party may designate the national committee
of such political party as a principal campaign committee,
but only if that national committee maintains separate
books of account with respect to its function as a principal
campaign committee.’’.
(c) EFFECTIVE DATE; TRANSITION RULE.—
(1) IN GENERAL.—The amendments made by
this section shall apply with respect to elections oc-
curring in years beginning with 1997.
(2) TRANSITION RULE.—
(A) IN
GENERAL.—Notwithstanding sec-
tion 302(j) of the Federal Election Campaign
Act of 1971 (as added by subsection (a)), if a
political committee established, maintained, fi-
nanced, or controlled by a candidate for Federal
office or an individual holding Federal office
(other than a principal campaign committee of
the candidate or individual) with respect to an
election occurring during 1996 has funds re-
maining unexpended after the 1996 general
election, the committee may make contributions
or expenditures of such funds with respect to
elections occurring during 1997 or 1998.
(B) DISBANDING
COMMITTEES; 
TREAT-
MENT
OF
REMAINING
FUNDS.—Any political
committee described in subparagraph (A) shall
be disbanded after filing any post-election re-
ports required under section 304 of the Federal
Election Campaign Act of 1971 with respect to
the 1998 general election. Any funds of such a
committee which remain unexpended after the
1998 general election and before the date on
which the committee disbands shall be returned
to contributors or available for any lawful pur-
pose other than use by the candidate or individ-
ual involved with respect to an election for Fed-
eral office.
SEC. 106. PROHIBITING BUNDLING OF CONTRIBUTIONS TO
CANDIDATES BY POLITICAL ACTION COMMIT-
TEES AND LOBBYISTS.
Section 316 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441b) is amended by adding at the end
the following new subsection:
‘‘(c)(1) No political action committee or person re-
quired to register under the Lobbying Disclosure Act of
1995 (2 U.S.C. 1601 et seq.) may act as an intermediary
or conduit with respect to a contribution to a candidate
for Federal office.
‘‘(2) In this subsection, the term ‘political action com-
mittee’ means any political committee which is not—
‘‘(A) the principal campaign committee of a
candidate; or
‘‘(B) a political party committee.’’.
SEC. 107. DEFINITION OF INDEPENDENT EXPENDITURES.
Section 301 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 431) is amended by striking paragraph
(17) and inserting the following:
‘‘(17)(A) The term ‘independent expenditure’ means
an expenditure by a person for a communication expressly
advocating the election or defeat of a clearly identified
candidate which is not made with the cooperation or with
the prior consent of, or in consultation with, or at the re-
quest or suggestion of, a candidate or any agent or author-
ized committee of such candidate.
‘‘(B) For purposes of this paragraph—
‘‘(i) ‘expressly advocating the election or defeat’
means the use in the communication of explicit
words such as ‘vote for’, ‘reelect’, ‘support’, ‘cast
your ballot for’, ‘vote against’, ‘defeat’, or ‘reject’,
accompanied by a reference in the communication to
one or more clearly identified candidates, or words
such as ‘vote’ for or against a position on an issue,
accompanied by a listing in the communication of
one or more clearly identified candidates described
as for or against a position on that issue;
‘‘(ii) ‘which is not made with the cooperation or
with the prior consent of, or in consultation with, or
at the request or suggestion of, a candidate or any
agent or authorized committee of such candidate’ re-
fers to the expenditure in question for the commu-
nication made by the person; and
‘‘(iii) the term ‘agent’ means any person who
has actual oral or written authority, either express
or implied, to make or authorize the making of ex-
penditures on behalf of a candidate.
‘‘(C) An expenditure by a person for a communication
which does not contain explicit words expressly advocating
the election or defeat of a clearly identified candidate shall
not be considered an independent expenditure.’’.
SEC. 108. REQUIREMENTS FOR USE OF PAYROLL DEDUC-
TIONS FOR CONTRIBUTIONS.
Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 301 et seq.) is amended by adding at the
end the following new section:
‘‘USE OF PAYROLL DEDUCTIONS FOR CONTRIBUTIONS
‘‘SEC. 323. (a) REQUIREMENTS FOR AUTHORIZATION
OF DEDUCTION.—
‘‘(1) IN GENERAL.—No amounts withheld from
an individual’s wages or salary during a year may be
used for any contribution under this title unless
there is in effect an authorization in writing by the
individual permitting the withholding of such
amounts for the contribution.
‘‘(2) PERIOD OF AUTHORIZATION.—An author-
ization described in this subsection may be in effect
with respect to an individual for such period as the
individual may specify (subject to cancellation under
paragraph (3)), except that the period may not be
longer than 12 months.
‘‘(3) RIGHT OF CANCELLATION.—An individual
with an authorization in effect under this subsection
may cancel or revise the authorization at any time.
‘‘(b) INFORMATION PROVIDED
BY WITHHOLDING
ENTITY.—
‘‘(1) IN
GENERAL.—Each entity withholding
wages or salary from an individual with an author-
ization in effect under subsection (a) shall provide
the individual with a statement that the individual
may at any time cancel or revise the authorization
in accordance with subsection (a)(3).
‘‘(2) TIMING OF NOTICE.—The entity shall pro-
vide the information described in paragraph (1) to
an individual at the beginning of each calendar year
occurring during the period in which the individual’s
authorization is in effect.’’.
TITLE II—STRENGTHENING
POLITICAL PARTIES
SEC. 201. MODIFICATION OF CONTRIBUTION LIMITS AND
REQUIREMENTS FOR POLITICAL PARTIES.
(a) TREATMENT OF PARTY CONTRIBUTIONS UNDER
AGGREGATE INDIVIDUAL CAP.—Section 315(a)(3) of the
Federal Election Campaign Act (2 U.S.C. 441a(a)(3)) is
amended by adding at the end the following new sentence:
‘‘For purposes of this paragraph, in determining the
amount of contributions made by an individual there shall
be excluded any contributions made by the individual to
a political party or a political party committee.’’.
(b) LIMITATION AMOUNT FOR CONTRIBUTIONS TO
STATE POLITICAL PARTIES.—Section 315(a)(1)(B) of
such Act (2 U.S.C. 441a(a)(1)(B)) is amended by insert-
ing after ‘‘national’’ the following: ‘‘or State’’.
SEC. 202. ALLOWING POLITICAL PARTIES TO OFFSET
FUNDS 
CARRIED 
OVER 
FROM 
PREVIOUS
ELECTIONS.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by sections 101 and
103(a), is further amended by adding at the end the fol-
lowing new subsection:
‘‘(k)(1) Subject to paragraph (2), if, in a general elec-
tion for Federal office, a candidate who is the incumbent
uses campaign funds carried forward from an earlier elec-
tion cycle, any political party committee may make con-
tributions to the nominee of that political party to match
the funds so carried forward by such incumbent. For pur-
poses of this paragraph, funds shall be considered to have
been carried forward if the funds represent cash on hand
as reported in the applicable post-general election report
filed under section 304(a) for the general election involved,
plus any amount expended on or before the filing of the
report for a later election, less legitimate outstanding
debts relating to the previous election up to the amount
reported.
‘‘(2) The political party contributions under para-
graph (1) may be made without regard to any limitation
amount otherwise applicable to such contributions made
under subsections (a) or (i), but a candidate may not ac-
cept contributions under this subsection in excess of the
total of funds carried forward by the incumbent can-
didate.’’.
ing voter registration, absentee ballot programs, and
get-out-the-vote programs, but does not include the
payment of any administrative or overhead costs, in-
cluding salaries (other than payments made to indi-
viduals for get-out-the-vote activities conducted on
the day of an election), rent, fundraising, or commu-
nications to members of a political party.
‘‘(c) RESTRICTIONS ON USE OF FUNDS FOR MIXED
CANDIDATE-SPECIFIC ACTIVITIES.—
‘‘(1) REQUIRING
ALLOCATION
AMONG
CAN-
DIDATES.—A political party committee may use
funds which are not subject to the limitations and
prohibitions of this Act for mixed candidate-specific
activities if the funds are allocated among the can-
didates involved on the basis of the time and space
allocated to the candidates.
‘‘(2) MIXED CANDIDATE-SPECIFIC ACTIVITY DE-
FINED.—In this subsection, the term ‘mixed can-
didate-specific activity’ means any activity which is
both for the purpose of promoting a specific can-
didate or candidates in an election for Federal office
and for the purpose of promoting a specific can-
didate or candidates in any other election.’’.
SEC. 204. PERMITTING PARTIES TO HAVE UNLIMITED COM-
MUNICATION WITH MEMBERS.
(a) IN GENERAL.—Section 315(d) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441a(d)) is
amended by adding at the end the following new para-
graph:
‘‘(4)(A) For purposes of applying the limitations es-
tablished under paragraphs (2) and (3), in determining
the amount of expenditures made by a national committee
of a political party or a State committee of a political
party (including any subordinate committee of a State
committee), there shall be excluded any amounts expended
by the committee for communications to the extent the
communications are made to members of the party.
‘‘(B) For purposes of subparagraph (A), an individ-
ual shall be considered to be a ‘member’ of a political
party if any of the following apply:
‘‘(i) The individual is registered to vote as a
member of the party.
‘‘(ii) There is a public record that the individual
voted in the primary of the party during the most
recent primary election.
‘‘(iii) The individual has made a contribution to
the party and the contribution has been reported to
the Commission (in accordance with this Act) or to
a State reporting agency.
‘‘(iv) The individual has indicated in writing
that the individual is a member of the party.’’.
(b) FUNDS AVAILABLE
FOR PARTY COMMUNICA-
TIONS.—Section 324 of such Act, as added by section 203,
is amended by adding at the end the following new sub-
section:
‘‘(d) FUNDS FOR PARTY COMMUNICATIONS WITH
MEMBERS.—Subsection (a) shall not apply with respect
to funds expended by a political party for communications
to the extent the communications are made to members
of the party (as determined in accordance with section
315(d)(4)), except that any communications which are
both for the purpose of expressly advocating the election
or defeat of a specific candidate for election to Federal
office and for any other purpose shall be subject to alloca-
tion in the same manner as funds expended for mixed can-
didate-specific activities under subsection (c).’’.
SEC. 205. PROMOTING STATE AND LOCAL PARTY VOLUN-
TEER AND GRASSROOTS ACTIVITY.
(a) ENCOURAGING STATE AND LOCAL PARTY AC-
TIVITIES.—
(1) CONTRIBUTIONS.—Section 301(8)(B) of the
Federal Election Campaign Act of 1971 (2 U.S.C.
431(8)(B)), as amended by section 110(a), is
amended—
(A) by striking ‘‘and’’ at the end of clause
(xiv);
(B) by striking the period at the end of
clause (xv) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
clause:
‘‘(xvi) the payment by a State or local commit-
tee of a political party for any of the following activi-
ties:
‘‘(I) The listing of the slate of the party’s
candidates, including the communication of the
slate to the public.
‘‘(II) The mailing of materials for or on
behalf of specific candidates by volunteers (in-
cluding labeling envelopes or affixing postage or
other indicia to particular pieces of mail), other
than the mailing of materials to a commercial
list.
‘‘(III) Conducting a telephone bank for or
on behalf of specific candidates staffed by vol-
unteers.
‘‘(IV) The distribution of collateral mate-
rials (such as pins, bumper stickers, handbills,
brochures, posters, party tabloids, and yard
signs) for or on behalf of specific candidates
(whether by volunteers or otherwise).’’.
(2) EXPENDITURES.—Section 301(9)(B) of
such Act (2 U.S.C. 431(9)(B)), as amended by sec-
tion 110(b), is amended—
(A) by striking ‘‘and’’ at the end of clause
(xi);
(B) by striking the period at the end of
clause (xii) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
clause:
‘‘(xiii) the payment by a State or local commit-
tee of a political party for any of the following activi-
ties:
‘‘(I) The listing of the slate of the party’s
candidates, including the communication of the
slate to the public.
‘‘(II) The mailing of materials for or on
behalf of specific candidates by volunteers (in-
cluding labeling envelopes or affixing postage or
other indicia to particular pieces of mail), other
than the mailing of materials to a commercial
list.
‘‘(III) Conducting a telephone bank for or
on behalf of specific candidates staffed by vol-
unteers.
‘‘(IV) The distribution of collateral mate-
rials (such as pins, bumper stickers, handbills,
brochures, posters, party tabloids, and yard
signs) for or on behalf of specific candidates
(whether by volunteers or otherwise).’’.
(3) CONFORMING AMENDMENTS.—(A) Section
301(8)(B)(x) of such Act (2 U.S.C. 431(8)(B)(x)) is
amended by striking ‘‘in connection with volunteer
activities on behalf of nominees of such party’’ and
inserting ‘‘in connection with State or local activi-
ties, other than any payment described in clause
(xvi)’’.
(B) Section 301(9)(B)(viii) of such Act (2
U.S.C. 431(9)(B)(viii)) is amended by striking ‘‘in
connection with volunteer activities on behalf of
nominees of such party’’ and inserting ‘‘in connec-
tion with State or local activities, other than any
payment described in clause (xii)’’.
(b) FUNDS AVAILABLE FOR ACTIVITIES.—
(1) PERMITTING USE OF NON-FEDERAL FUNDS
FOR
MIXED
ACTIVITIES.—Section 324(b) of such
Act, as added by section 203, is amended—
(A) by redesignating paragraph (2) as
paragraph (3); and
(B) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) USE BY STATE OR LOCAL PARTY COMMIT-
TEES.—A State, local, or district committee of a po-
litical party (including any subordinate committee
thereof) may use funds which are not subject to the
limitations and prohibitions of this Act for mixed ac-
tivity if the funds are allocated in accordance with
the process described in subsection (g).’’.
(2) FUNDS AVAILABLE FOR STATE AND LOCAL
PARTIES.—Section 324 of such Act, as added by sec-
tion 203 and as amended by section 204(b), is
amended by adding at the end the following new
subsection:
‘‘(e) FUNDS AVAILABLE
FOR STATE
AND LOCAL
PARTY VOLUNTEER AND GRASSROOTS ACTIVITIES.—Sub-
section (a) shall not apply with respect to payments
described 
in 
section 
301(8)(B)(xvi) 
or 
section
301(9)(B)(xiii), except that any payments which are both
for the purpose of expressly advocating the election or de-
feat of a specific candidate for election to Federal office
and for any other purpose shall be subject to allocation
in the same manner as funds expended for mixed can-
didate-specific activities under subsection (c).’’.
(3) TREATMENT
OF
INTRA-PARTY
TRANS-
FERS.—Section 324 of such Act, as added by section
203 and as amended by section 204(b) and para-
graph (2), is amended by adding at the end the fol-
lowing new subsection:
‘‘(f) RULE OF CONSTRUCTION REGARDING INTRA-
PARTY TRANSFERS.—Nothing in this section shall be con-
strued to prohibit the transfer between and among na-
tional, State, or local party committees (including any sub-
ordinate committees thereof) of funds which are not sub-
ject to the limitations and prohibitions of this Act.’’.
(4) ALLOCATION
PROCEDURES
DESCRIBED.—
Section 324 of such Act, as added by section 203
and as amended by section 204(b) and paragraphs
(2) and (3), is amended by adding at the end the
following new subsection:
‘‘(g) STATE AND LOCAL PARTY COMMITTEES; METH-
OD FOR ALLOCATING EXPENDITURES FOR MIXED ACTIVI-
TIES.—
‘‘(1) GENERAL
RULE.—All State and local
party committees except those covered by paragraph
(2) shall allocate their expenses for mixed activities,
as described in subsection (b)(2), according to the
ballot composition method described as follows:
‘‘(A) Under this method, expenses shall be
allocated based on the ratio of Federal offices
expected on the ballot to total Federal and non-
Federal offices expected on the ballot in the
next general election to be held in the commit-
tee’s State or geographic area. This ratio shall
be determined by the number of categories of
Federal offices on the ballot and the number of
categories of non-Federal offices on the ballot,
as described in subparagraph (B).
‘‘(B) In calculating a ballot composition
ratio, a State or local party committee shall
count the Federal offices of President, United
States Senator, and United States Representa-
tive, if expected on the ballot in the next gen-
eral election, as one Federal office each. The
committee shall count the non-Federal offices of
Governor, State Senator, and State Representa-
tive, if expected on the ballot in the next gen-
eral election, as one non-Federal office each.
The committee shall count the total of all other
partisan statewide executive candidates, if ex-
pected on the ballot in the next general election,
as a maximum of two non-Federal offices. State
party committees shall also include in the ratio
one additional non-Federal office if any par-
tisan local candidates are expected on the ballot
in any regularly scheduled election during the 2
year congressional election cycle. Local party
committees shall also include in the ratio a
maximum of 2 additional non-Federal offices if
any partisan local candidates are expected on
the ballot in any regularly scheduled election
during the 2 year congressional election cycle.
State and local party committees shall also in-
clude in the ratio 1 additional non-Federal of-
fice.
‘‘(2) EXCEPTION FOR STATES THAT DO NOT
HOLD FEDERAL AND NON-FEDERAL ELECTIONS IN
THE SAME YEAR.—State and local party committees
in states that do not hold Federal and non-Federal
elections in the same year shall allocate the costs of
mixed activities according to the ballot composition
method described in paragraph (1), based on a ratio
calculated for that calendar year.’’.
TITLE III—DISCLOSURE AND
ENFORCEMENT
SEC. 301. TIMELY REPORTING AND INCREASED DISCLO-
SURE.
(a) DEADLINE FOR FILING.—
(1) REQUIRING REPORTS FOR ALL CONTRIBU-
TIONS MADE WITHIN 20 DAYS OF ELECTION; RE-
QUIRING
REPORTS
TO
BE
MADE
WITHIN
HOURS.—Section 304(a)(6)(A) of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 434(a)(6)(A))
is amended—
(A) by striking ‘‘after the 20th day, but
more than 48 hours before any election’’ and
inserting ‘‘during the period which begins on
the 20th day before an election and ends at the
time the polls close for such election’’; and
(B) by striking ‘‘48 hours’’ the second
place it appears and inserting the following:
‘‘24 hours (or, if earlier, by midnight of the day
on which the contribution is deposited)’’.
(2) REQUIRING ACTUAL DELIVERY BY DEAD-
LINE.—
(A) IN
GENERAL.—Section 304(a)(6) of
such Act (2 U.S.C. 434(a)(6)), as amended by
section 103(b), is further amended by adding at
the end the following new subparagraph:
‘‘(D) Notwithstanding paragraph (5), the time at
which a notification or report under this paragraph is re-
ceived by the Secretary, the Commission, or any other re-
cipient to whom the notification is required to be sent shall
be considered the time of filing of the notification or report
with the recipient.’’.
(B) CONFORMING
AMENDMENT.—Section
304(a)(5) of such Act (2 U.S.C. 434(a)(5)) is
amended by striking ‘‘paragraph (2)(A)(i) or
(4)(A)(ii)’’ and inserting ‘‘paragraphs (2)(A)(i),
(4)(A)(ii), or (6))’’.
(b) INCREASING ELECTRONIC DISCLOSURE.—Section
304(a)(6) of such Act (2 U.S.C. 434(a)(6)), as amended
by section 103(b) and subsection (a)(2)(A), is further
amended by adding at the end the following new subpara-
graph:
‘‘(E)(i) The Commission shall make the information
contained in the reports submitted under this paragraph
available on the Internet and publicly available at the of-
fices of the Commission as soon as practicable (but in no
case later than 24 hours) after the information is received
by the Commission.
‘‘(ii) In this subparagraph, the term ‘Internet’ means
the international computer network of both Federal and
non-Federal interoperable packet-switched data net-
works.’’.
(c) CHANGE IN CERTAIN REPORTING FROM A CAL-
ENDAR YEAR BASIS TO AN ELECTION CYCLE BASIS.—
Section 304(b) of such Act (2 U.S.C. 434(b)) is amended
by inserting ‘‘(or election cycle, in the case of an author-
ized committee of a candidate for Federal office)’’ after
‘‘calendar year’’ each place it appears in paragraphs (2),
(3), (4), (6), and (7).
(d) CLARIFICATION OF PERMISSIBLE USE OF FAC-
SIMILE
MACHINES
TO
FILE
REPORTS.—Section
304(a)(11)(A) of such Act (2 U.S.C. 434(a)(11)) is
amended by striking ‘‘method,’’ and inserting ‘‘method
(including by facsimile device in the case of any report
required to be filed within 24 hours after the transaction
reported has occurred),’’.
(e) REQUIRING RECEIPT OF INDEPENDENT EXPEND-
ITURE REPORTS WITHIN 24 HOURS.—
(1) IN
GENERAL.—Section 304(c)(2) of such
Act (2 U.S.C. 434(c)(2)) is amended in the matter
following subparagraph (C)—
(A) by striking ‘‘shall be reported’’ and in-
serting ‘‘shall be filed’’; and
(B) by adding at the end the following new
sentence: ‘‘Notwithstanding subsection (a)(5),
the time at which the statement under this sub-
section is received by the Secretary, the Com-
mission, or any other recipient to whom the no-
tification is required to be sent shall be consid-
ered the time of filing of the statement with the
recipient.’’.
(2) 
CONFORMING
AMENDMENT.—Section
304(a)(5) of such Act (2 U.S.C. 434(a)(5)), as
amended by subsection (a)(2)(B), is further amend-
ed by striking ‘‘or (6)’’ and inserting ‘‘or (6), or
subsection (c)(2)’’.
(f) REQUIRING RECORD KEEPING AND REPORT OF
SECONDARY PAYMENTS BY CAMPAIGN COMMITTEES.—
(1) REPORTING.—Section 304(b)(5)(A) of such
Act (2 U.S.C. 434(b)(5)(A)) is amended by striking
the semicolon at the end and inserting the following:
‘‘, and, if such person in turn makes expenditures
which aggregate $500 or more in an election cycle
to other persons (not including employees) who pro-
vide goods or services to the candidate or the can-
didate’s authorized committees, the name and ad-
dress of such other persons, together with the date,
amount, and purpose of such expenditures;’’.
(2) RECORD
KEEPING.—Section 302 of such
Act (2 U.S.C. 432), as amended by section 105(a),
is further amended by adding at the end the follow-
ing new subsection:
‘‘(k) A person described in section 304(b)(5)(A) who
makes expenditures which aggregate $500 or more in an
election cycle to other persons (not including employees)
who provide goods or services to a candidate or a can-
didate’s authorized committees shall provide to a political
committee the information necessary to enable the com-
mittee to report the information described in such sec-
tion.’’.
(3) NO EFFECT ON OTHER REPORTS.—Nothing
in the amendments made by this subsection may be
construed to affect the terms of any other record-
keeping or reporting requirements applicable to can-
didates or political committees under title III of the
Federal Election Campaign Act of 1971.
(g) INCLUDING REPORT ON CUMULATIVE CONTRIBU-
TIONS
AND EXPENDITURES
IN POST ELECTION RE-
PORTS.—Section 304(a)(7) of such Act (2 U.S.C.
434(a)(7)) is amended—
(1) by striking ‘‘(7)’’ and inserting ‘‘(7)(A)’’;
and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) In the case of any report required to be filed
by this subsection which is the first report required to be
filed after the date of an election, the report shall include
a statement of the total contributions received and expend-
itures made as of the date of the election.’’.
(h) INCLUDING INFORMATION ON AGGREGATE CON-
TRIBUTIONS IN REPORT ON ITEMIZED CONTRIBUTIONS.—
Section 304(b)(3) of such Act (2 U.S.C. 434(b)(3)) is
amended—
(1) in subparagraph (A), by inserting after
‘‘such contribution’’ the following: ‘‘and the total
amount of all such contributions made by such per-
son with respect to the election involved’’; and
(2) in subparagraph (A), by inserting after
‘‘such contribution’’ the following: ‘‘and the total
amount of all such contributions made by such com-
mittee with respect to the election involved’’.
SEC. 302. STREAMLINING PROCEDURES AND RULES OF
FEDERAL ELECTION COMMISSION.
(a) STANDARDS FOR COMMISSION REGULATION AND
JUDICIAL INTERPRETATION.—Section 307 of the Federal
Election Campaign Act of 1971 (2 U.S.C. 437d) is amend-
ed by adding at the end the following new subsection:
‘‘(f)(1) When developing prescribed forms and mak-
ing, amending, or repealing rules pursuant to the author-
ity granted to the Commission by subsection (a)(8), the
Commission shall act in a manner that will have the least
restrictive effect on the rights of free speech and associa-
tion so protected by the First Article of Amendment to
the Constitution of the United States.
‘‘(2) When the Commission’s actions under para-
graph (1) are challenged, a reviewing court shall hold un-
lawful and set aside any actions of the Commission that
do not conform with the principles set forth in paragraph
(1).’’.
(b) WRITTEN RESPONSES TO QUESTIONS.—
(1) IN
GENERAL.—Title III of such Act (2
U.S.C. 431 et seq.) is amended by inserting after
section 308 the following new section:
‘‘OTHER WRITTEN RESPONSES TO QUESTIONS
‘‘SEC. 308A. (a) PERMITTING RESPONSES.—In addi-
tion to issuing advisory opinions under section 308, the
Commission shall issue written responses pursuant to this
section with respect to a written request concerning the
application of this Act, chapter 95 or chapter 96 of the
Internal Revenue Code of 1954, a rule or regulation pre-
scribed by the Commission, or an advisory opinion issued
by the Commission under section 308, with respect to a
specific transaction or activity by the person, if the Com-
mission finds the application of the Act, chapter, rule, reg-
ulation, or advisory opinion to the transaction or activity
to be clear and unambiguous.
‘‘(b) PROCEDURE FOR RESPONSE.—
‘‘(1) ANALYSIS BY STAFF.—The staff of the
Commission shall analyze each request submitted
under this section. If the staff believes that the
standard described in subsection (a) is met with re-
spect to the request, the staff shall circulate a state-
ment to that effect together with a draft response to
the request to the members of the Commission.
‘‘(2) ISSUANCE OF RESPONSE.—Upon the expi-
ration of the 3-day period beginning on the date the
statement and draft response is circulated (excluding
weekends or holidays), the Commission shall issue
the response, unless during such period any member
of the Commission objects to issuing the response.
‘‘(c) EFFECT OF RESPONSE.—
‘‘(1) SAFE
HARBOR.—Notwithstanding any
other provisions of law, any person who relies upon
any provision or finding of a written response issued
under this section and who acts in good faith in ac-
cordance with the provisions and findings of such re-
sponse shall not, as a result of any such act, be sub-
ject to any sanction provided by this Act or by chap-
ter 95 or chapter 96 of the Internal Revenue Code
of 1954.
‘‘(2) NO RELIANCE BY OTHER PARTIES.—Any
written response issued by the Commission under
this section may only be relied upon by the person
involved in the specific transaction or activity with
respect to which such response is issued, and may
not be applied by the Commission with respect to
any other person or used by the Commission for en-
forcement or regulatory purposes.
‘‘(d) 
PUBLICATION
OF
REQUESTS
AND
RE-
SPONSES.—The Commission shall make public any re-
quest for a written response made, and the responses is-
sued, under this section. In carrying out this subsection,
the Commission may not make public the identity of any
person submitting a request for a written response unless
the person specifically authorizes to Commission to do so.
‘‘(e) COMPILATION
OF INDEX.—The Commission
shall compile, publish, and regularly update a complete
and detailed index of the responses issued under this sec-
tion through which responses may be found on the basis
of the subjects included in the responses.’’.
(2) 
CONFORMING
AMENDMENT.—Section
307(a)(7) of such Act (2 U.S.C. 437d(a)(7)) is