I
103D CONGRESS
1ST SESSION
H. R. 3196
To amend the Federal Election Campaign Act of 1971, the Internal Revenue
Code of 1986, and title 39, United States Code, to provide for an
open, fair, and responsive electoral process, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 30, 1993
Mrs. FOWLER (for herself, Mr. TORKILDSEN, Mr. ROYCE, Mr. MICA, Mr.
HUTCHINSON, Mr. CASTLE, Mr. MILLER of Florida, Mr. BLUTE, Mr.
SMITH of Michigan, Ms. DUNN, Mr. MCKEON, Mr. LINDER, Mr. FRANKS
of New Jersey, Mr. BUYER, Mr. BACHUS of Alabama, Mr. KIM, Mr.
BAKER of California, Mr. KNOLLENBERG, Mr. EVERETT, Mr. KINGSTON,
and Mr. BARTLETT of Maryland) introduced the following bill; which was
referred jointly to the Committees on House Administration, Ways and
Means, and Post Office and Civil Service
A BILL
To amend the Federal Election Campaign Act of 1971, the
Internal Revenue Code of 1986, and title 39, United
States Code, to provide for an open, fair, and responsive
electoral process, 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. HOUSE OF REPRESENTATIVES ELECTION LIMI-
TATION ON OUT-OF-STATE CONTRIBUTIONS.
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 Representative in,
or Delegate or Resident Commissioner to, the Congress
may not, with respect to an election cycle, accept out-of-
State contributions totaling more than 49 percent of the
aggregate of contributions accepted from all sources.’’.
SEC. 2. REDUCTION IN LIMITATION AMOUNT APPLICABLE
TO MULTICANDIDATE POLITICAL COMMIT-
TEE CONTRIBUTIONS TO CANDIDATES.
Section 315(a)(2)(A) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(2)(A)) is amended
by striking out ‘‘$5,000’’ and inserting in lieu thereof
‘‘$1,000’’.
SEC. 
3. 
PROHIBITION 
ON 
CONTRIBUTIONS 
BETWEEN
MULTICANDIDATE POLITICAL COMMITTEES.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by section 1, is fur-
ther amended by adding at the end the following new sub-
section:
‘‘(j) Notwithstanding any other provision of this Act,
a multicandidate political committee may not make a con-
tribution to another multicandidate political committee.’’.
SEC. 4. MULTICANDIDATE POLITICAL COMMITTEE NAME
REQUIREMENT.
Section 303 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 433) is amended by adding at the end
the following new subsection:
‘‘(e) Any multicandidate political committee that is
affiliated with another organization shall include the entire
name of the organization in the name of the
multicandidate political committee.’’.
SEC. 5. PROHIBITION OF BUNDLING.
Section 315(a)(8) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a(a)(8)) is amended to read
as follows:
‘‘(8) No person may make a contribution through an
intermediary or conduit, except that a person may facili-
tate a contribution by providing—
‘‘(A) advice to another person as to how the
other person may make a contribution; and
‘‘(B) addressed mailing material or similar
items to another person for use by the other person
in making a contribution.’’.
SEC. 6. REQUIREMENT FOR DISCLOSURE OF LOBBYIST
STATUS BY LOBBYISTS WHO MAKE CON-
TRIBUTIONS.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by sections 1 and
3, is further amended by adding at the end the following
new subsection:
‘‘(k) Any person who is a lobbyist and who makes
a contribution shall include with the contribution a state-
ment in writing that discloses the status of the person as
a lobbyist.’’.
SEC. 7. REPORTING REQUIREMENT FOR LOBBYISTS.
Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434) is amended by adding at the end
the following new subsection:
‘‘(d)(1) Not later than 20 days after the end of the
month in which a lobbyist makes a contribution, the lobby-
ist, in such form and manner as the Commission shall pre-
scribe by regulation, shall report the contribution to the
Commission.’’.
SEC. 8. REPORTING REQUIREMENT FOR OUT-OF-STATE
CONTRIBUTIONS IN HOUSE OF REPRESENTA-
TIVES ELECTIONS.
Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434), as amended by section 7, is fur-
ther amended by adding at the end the following new sub-
section:
‘‘(e) Any report of contributions with respect to an
election for the office of Representative in, or Delegate or
Resident Commissioner to, the Congress, shall segregate
and itemize all out-of-State contributions.’’.
SEC. 9. BAN ON SOFT MONEY.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by sections 1, 3,
and 6, is further amended by adding at the end the follow-
ing new subsection:
‘‘(l)(1) It shall be unlawful for the purpose of influ-
encing any election to Federal office—
‘‘(A) to solicit or receive any soft money; or
‘‘(B) to make any payments from soft money.
‘‘(2) For purposes of paragraph (1), the term ‘soft
money’ means any amount—
‘‘(A) solicited or received from a source which
is prohibited under section 316(a);
‘‘(B) contributed, solicited, or received in excess
of the contribution limits under section 315; or
‘‘(C) not subject to the recordkeeping, report-
ing, or disclosure requirements under section 304 or
any other provision of this Act.’’.
SEC. 10. RESTRICTIONS ON PARTY COMMITTEES.
(a) DISCLOSURE
OF INFORMATION
BY POLITICAL
COMMITTEE.—(1) Section 302(c) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 432(c)) is amended—
(A) by striking out ‘‘and’’ at the end of para-
graph (4);
(B) by striking out the period at the end of
paragraph (5) and inserting in lieu thereof ‘‘; and’’;
and
(C) by adding at the end the following new
paragraph:
‘‘(6) each account maintained by a political
committee of a political party (including Federal and
non-Federal accounts), and deposits into, and dis-
bursements from, each such account.’’.
(2) Section 304(b) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 434(b)) is amended—
(A) by striking out ‘‘and’’ at the end of para-
graph (7);
(B) by striking out the period at the end of
paragraph (8) and inserting in lieu thereof ‘‘; and’’;
and
(C) by adding at the end the following new
paragraph:
‘‘(9) each account maintained by a political
committee of a political party (including Federal and
non-Federal accounts), and deposits into, and dis-
bursements from, each such account.’’.
‘‘(2) In the case of a mixed activity that consists of
a voter registration drive, get-out-the-vote drive, or other
activity designed to contact voters (other than an activity
to which paragraph (3) or (4) applies), amounts shall be
allocated on the basis of the composition of the ballot for
the political jurisdiction in which the activity occurs, ex-
cept that in no event shall the amounts allocated to the
Federal account be less than—
‘‘(A) 331⁄3 percent of the total amount in the
case of the national committee of a political party;
or
‘‘(B) 25 percent of the total amount in the case
of a State or local committee of a political party or
any subordinate committee thereof.
‘‘(3) In the case of a mixed activity that consists of
preparing and distributing brochures, handbills, slate
cards, or other printed materials identifying or seeking
support of (or opposition to) candidates for both Federal
offices and non-Federal offices, amounts shall be allocated
on the basis of total space devoted to such candidates, ex-
cept that in no event shall the amounts allocated to the
Federal account be less than the percentages under sub-
paragraph (A) or (B) of paragraph (2).
‘‘(4)(A) In the case of a mixed activity by a national
committee of a political party that consists of broadcast
media advertising (or any portion thereof) that promotes
(or is in opposition to) a political party without mentioning
the name of any individual candidate for Federal office
or non-Federal office, amounts allocated to the Federal
account shall not be less than—
‘‘(i) 50 percent of the total amount in the case
of advertising in the national media market; and
‘‘(ii) 40 percent in the case of advertising in
other than the national media market.
‘‘(B) In the case of a mixed activity by a State or
local committee of a political party or any subordinate
committee thereof that consists of broadcast media adver-
tising (or any portion thereof) described in subparagraph
(A), costs shall be allocated on the basis of the composition
of the ballot for the political jurisdiction in which the ac-
tivity occurs, except that in no event shall the amounts
allocated to the Federal account be less than 331⁄3 percent
of the total amount.
‘‘(5) Overhead and fundraising costs of a political
committee of a political party for each 2-calendar year pe-
riod ending with the calendar year in which a regularly
scheduled election for Federal office occurs shall be allo-
cated to the Federal account on the basis of the same ratio
which—
‘‘(A) the aggregate amount of receipts and dis-
bursements of such political committee during such
period in connection with elections for Federal office,
bears to
‘‘(B) the aggregate amount of receipts and dis-
bursements of such political committee during such
period.
‘‘(c)(1) For purposes of this section, the term ‘mixed
activity’ means an activity the expenditures in connection
with which are required under this Act to be allocated be-
tween Federal and non-Federal accounts because such ac-
tivity affects 1 or more elections for Federal office and
1 or more non-Federal elections.
‘‘(2) Activities under paragraph (1) include—
‘‘(A) voter registration drives, get-out-the-
vote drives, telephone banks, and membership
communications in connection with elections for
Federal offices and elections for non-Federal
offices;
‘‘(B) general political advertising, bro-
chures, or other materials that include any ref-
erence (however incidental) to both a candidate
for Federal office and a candidate for non-Fed-
eral office, or that urge support for or opposi-
tion to a political party or to all the candidates
of a political party;
‘‘(C) overhead expenses; and
‘‘(D) activities described in clauses (v), (x),
and (xii) of section 301(8)(B).
‘‘(d) For purposes of this section—
‘‘(1) the term ‘Federal account’ means an ac-
count to which receipts and disbursements are allo-
cated to elections for Federal offices; and
‘‘(2) the term ‘non-Federal account’ means an
account to which receipts and disbursements are al-
located to elections other than non-Federal offices.’’.
SEC. 11. PROTECTION FOR EMPLOYEES.
(a) CONTRIBUTIONS
TO ALL POLITICAL COMMIT-
TEES INCLUDED.—Section 316(b)(2) of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is
amended by inserting ‘‘political committee,’’ after ‘‘cam-
paign committee,’’.
(b) APPLICABILITY OF REQUIREMENTS TO LABOR
ORGANIZATIONS.—Section 316(b) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by
adding at the end the following new paragraph:
‘‘(8)(A) Subparagraphs (A), (B), and (C) of para-
graph (2) shall not apply to a labor organization unless
the organization meets the requirements of subparagraphs
(B), (C), and (D).
‘‘(B) The requirements of this subparagraph are met
only if the labor organization provides, at least once annu-
ally, to all employees within the labor organization’s bar-
gaining unit or units (and to new employees within 30
days after commencement of their employment) written
notification presented in a manner to inform any such em-
ployee—
‘‘(i) that an employee cannot be obligated to
pay, through union dues or any other mandatory
payment to a labor organization, for the political ac-
tivities of the labor organization, including, but not
limited to, the maintenance and operation of, or so-
licitation of contributions to, a political committee,
political communications to members, and voter reg-
istration and get-out-the-vote campaigns;
‘‘(ii) that no employee may be required actually
to join any labor organization, but if a collective bar-
gaining agreement covering an employee purports to
require membership or payment of dues or other
fees to a labor organization as a condition of em-
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, for purposes of verifying the cost of such labor
organization’s exclusive representation services, the labor
organization provides all represented employees an annual
examination by an independent certified public accountant
of financial statements supplied by such organization
which verify the cost of such services; except that such
examination shall, at a minimum, constitute a ‘special re-
port’ as interpreted by the Association of Independent
Certified Public Accountants.
‘‘(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.’’.
SEC. 12. RESTRICTIONS ON SOFT MONEY ACTIVITIES OF
TAX-EXEMPT ORGANIZATIONS.
(a) IN GENERAL.—Section 501 of the Internal Reve-
nue Code of 1986 (relating to exemption from tax) is
amended by redesignating subsection (n) as subsection (o)
and by inserting after subsection (m) the following new
subsection:
‘‘(n) DENIAL OF TAX-EXEMPT STATUS FOR ACTIVI-
TIES TO INFLUENCE A FEDERAL ELECTION.—An organi-
zation shall not be treated as exempt from tax under sub-
section (a) if such organization participates or intervenes
in any political campaign on behalf of or in opposition to
any candidate for Federal office.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to any participation or interven-
tion by an organization on or after September 1, 1992.
SEC. 13. DENIAL OF TAX-EXEMPT STATUS FOR CERTAIN PO-
LITICALLY ACTIVE ORGANIZATIONS.
(a) IN GENERAL.—Section 501 of the Internal Reve-
nue Code of 1986 (relating to exemption from tax), as
amended by section 12, is further amended by redesignat-
ing subsection (o) as subsection (p) and by inserting after
subsection (n) the following new subsection:
‘‘(o) DENIAL OF TAX-EXEMPT STATUS FOR CERTAIN
POLITICALLY ACTIVE ORGANIZATIONS.—
‘‘(1) IN GENERAL.—An organization shall not
be treated as exempt from tax under subsection (a)
if—
‘‘(A) such organization devotes any of its
operating budget to—
‘‘(i) voter registration or get-out-the-
vote campaigns; or
‘‘(ii) participation or intervention in
any political campaign on behalf of or in
opposition to any candidate for public of-
fice; and
‘‘(B) a candidate, or an authorized com-
mittee of a candidate, has—
‘‘(i) solicited contributions to, or on
behalf of, such organization; and
‘‘(ii) the solicitation is made in co-
operation, consultation, or concert with, or
at the request or suggestion of, such orga-
nization.
‘‘(2) CANDIDATE DEFINED.—For purposes of
this subsection—
‘‘(A) IN GENERAL.—The term ‘candidate’
has the meaning given such term by paragraph
(2) of section 301 of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431(2)).
‘‘(B) MEMBERS OF CONGRESS.—The term
‘candidate’ shall include any Senator or Rep-
resentative in, or Delegate or Resident Commis-
sioner to, the Congress unless—
‘‘(i) the date for filing for nomination,
or election to, such office has passed and
such individual has not so filed, and
‘‘(ii) such individual is not otherwise a
candidate described in subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of enactment of this Act, but only with respect to
solicitations or suggestions by candidates made after the
date of enactment of this Act.
SEC. 14. CONTRIBUTIONS TO CERTAIN POLITICAL ORGANI-
ZATIONS MAINTAINED BY A CANDIDATE.
(a) CONTRIBUTIONS BY PERSONS IN GENERAL AND
BY MULTICANDIDATE POLITICAL COMMITTEES.—(1) Sec-
tion 315(a)(1)(A) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a(a)(1)(A)) is amended by striking
out ‘‘candidate and his authorized political committees’’
and inserting in lieu thereof ‘‘candidate, a candidate’s au-
thorized political committees, and any political organiza-
tions (other than authorized committees) maintained by
a candidate,’’.
(2) Section 315(a)(2)(A) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441a(a)(2)(A)) is
amended by striking out ‘‘candidate and his authorized po-
litical committees’’ and inserting in lieu thereof ‘‘can-
didate, a candidate’s authorized political committees, and
any political organizations (other than authorized commit-
tees) maintained by a candidate,’’.
(3) Section 315(a) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a(a)) is amended by adding at
the end the following new paragraph:
‘‘(9) For the purposes of paragraphs (1)(A) and
(2)(A), the term ‘political organization maintained by a
candidate’ means any non-Federal political action commit-
tee, non-Federal multicandidate political committee, or
any other form of political organization regulated under
State law which is not a political committee of a national,
State, or local political party—
‘‘(A) that is set up by or on behalf of a can-
didate and engages in political activity which directly
influences Federal elections; and
‘‘(B) for which that candidate has solicited a
contribution.’’.
(b) CONTRIBUTIONS
BY NATIONAL BANKS, COR-
PORATIONS, AND LABOR ORGANIZATIONS.—(1) Section
316(b)(2) of the Federal Election Campaign Act of 1971
(2 U.S.C. 441b(b)(2)) is amended by striking out ‘‘can-
didate, campaign committee’’ and inserting in lieu thereof
‘‘candidate, political organization (other than an author-
ized committee) maintained by a candidate, campaign
committee,’’.
(2) Section 316(b) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441b(b)), as amended by section
11(b), is further amended by adding at the end the follow-
ing new paragraph:
‘‘(9) For the purposes of paragraph (2), the term ‘po-
litical organization maintained by a candidate’ means any
non-Federal political action committee, non-Federal
multicandidate political committee, or any other form of
political organization regulated under State law which is
not a political committee of a national, State, or local
political party—
‘‘(A) that is set up by or on behalf of a can-
didate and engages in political activity which directly
influences Federal elections; and
‘‘(B) for which that candidate has solicited a
contribution.’’.
(c) DATE OF APPLICATION.—The amendments made
by subsections (a) and (b) shall apply to contributions de-
scribed in sections 315 and 316 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441a and 441b) made
in response to solicitations made after January lll,
1993.
SEC. 15. CONTRIBUTIONS TO STATE AND LOCAL PARTY
COMMITTEES.
Section 315(a)(1) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a(a)(1)) is amended—
(1) by striking out ‘‘or’’ at the end of subpara-
graph (B);
(2) by striking out the period at the end of sub-
paragraph (C) and inserting in lieu thereof ‘‘; or’’;
and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) to the political committees established and
maintained by a State or local political party, in con-
nection with any activity that may influence an elec-
tion for Federal office, in any calendar year which,
in the aggregate, exceed the lesser of—
‘‘(i) $50,000; or
‘‘(ii) the difference between $50,000 and
the amount of contributions made by such per-
son to any political committees established and
maintained by a national political party.’’.
SEC. 16. INCREASE IN LIMITATION AMOUNT APPLICABLE
TO AGGREGATE CONTRIBUTIONS BY AN INDI-
VIDUAL.
The first sentence of section 315(a)(3) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(3)) is
amended by striking out ‘‘$25,000’’ and inserting in lieu
thereof ‘‘$50,000’’.
SEC. 17. LENGTHENING OF PRE-ELECTION PERIOD DURING
WHICH MEMBERS OF CONGRESS MAY NOT
SEND FRANKED MASS MAILINGS.
Section 3210(a)(6)(A) of title 39, United States
Code, is amended by striking out ‘‘60 days’’ each place
it appears and inserting in lieu thereof ‘‘90 days’’.
SEC. 18. DEFINITION AMENDMENTS.
(a) TRANSFER
OF
MULTICANDIDATE
POLITICAL
COMMITTEE DEFINITION.—Section 301 of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431) is amend-
ed by striking out paragraph (19) and inserting in lieu
thereof the following new paragraph:
‘‘(19) The term ‘multicandidate political committee’
means a political committee which has been registered
under section 303 for a period of not less than 6 months,
which has received contributions from more than 50 per-
sons, and, except for any State political party organiza-
tion, has made contributions to 5 or more candidates for
Federal office.’’.
(b) LOBBYIST.—Section 301 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431), as amended by
subsection (a) is further amended by adding at the end
the following new paragraph:
‘‘(20) The term ‘lobbyist’ means a person who is re-
quired to register under the Federal Regulation of Lobby-
ing Act (2 U.S.C. 261 et seq.).’’.
(c) OUT-OF-STATE CONTRIBUTION.—Section 301 of
the Federal Election Campaign Act of 1971 (2 U.S.C.
431), as amended by subsections (a) and (b) is further
amended by adding at the end the following new para-
graph:
‘‘(21) The term ‘out-of-State contribution’ means,
with respect to an election for the office of Representative
in, or Delegate or Resident Commissioner to, the Con-
gress, a contribution from a source outside the State in
which the congressional district involved is located.’’.
(d) CONFORMING AMENDMENT.—Section 315(a)(4)
of the Federal Election Campaign Act of 1971 (2 U.S.C.
441a(a)(4)) is amended by striking out the second sen-
tence.
SEC. 19. EFFECTIVE DATE.
Except as otherwise provided in this Act, the amend-
ments made by this Act shall apply with respect to elec-
tions beginning with the general election on November 8,
1994.
Æ
HR 3196 IH——2