has completed such training and is familiar with the con-
tents 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 Commis-
sioner, officers, and employees of the House of Represent-
atives apprised of current rulings or advisory opinions 
when potentially constituting 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.—Sec-
tion 301(4) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 431(4)) is amended— 
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(1) by striking the period at the end of sub-
paragraph (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 amend-
ed 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 organi-
zation’ 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 
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; 
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‘‘(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, 
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-
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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. 
‘‘(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 
requirement of subparagraph (C) if it makes 
disbursements aggregating more than $1,000 
for any of the following: 
‘‘(i) A public communication that pro-
motes, supports, attacks, or opposes a 
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clearly identified candidate for Federal of-
fice 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 disburse-
ments for any voter drive activity shall be 
taken into account under this subpara-
graph if the committee, club, association, 
or other group of persons during such cal-
endar year— 
‘‘(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 require-
ments and contribution 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 
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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 
political party, or an agent of any of 
the foregoing, control or materially 
participate in the direction of the or-
ganization, solicit contributions to the 
organization (other than funds which 
are described under clauses (i) and 
(ii) of section 323(e)(1)(B)), or direct 
disbursements, 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— 
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‘‘(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-
ferring to a political party if the only reference 
to the party in the activity is— 
‘‘(i) a reference for the purpose of 
identifying 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-
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didates and does reflect support for or op-
position to a State or local candidate or 
candidates 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.—Sec-
tion 301 of such Act (2 U.S.C. 431), as amended by sub-
section (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 ac-
tivities conducted in connection with an election in 
which a candidate for Federal office appears on the 
ballot (regardless of whether a candidate for State 
or local office also appears on the ballot): 
‘‘(A) Voter registration activity. 
‘‘(B) Voter identification. 
‘‘(C) Get-out-the-vote activity. 
‘‘(D) Generic campaign activity. 
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‘‘(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 Commis-
sion shall promulgate regulations to implement this sec-
tion 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. 
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 CER-
TAIN 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)— 
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‘‘(1) the disbursements shall be allocated be-
tween Federal and non-Federal accounts in accord-
ance with this section and regulations prescribed by 
the Commission; and 
‘‘(2) in the case of disbursements allocated to 
non-Federal accounts, may be paid only from a 
qualified non-Federal account. 
‘‘(b) COSTS TO BE ALLOCATED AND ALLOCATION 
RULES.— 
‘‘(1) IN GENERAL.—Disbursements by any sep-
arate segregated fund or nonconnected committee, 
other than an organization described in section 
323(b)(1), for any of the following categories of ac-
tivity shall be allocated as follows: 
‘‘(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 polit-
ical party. 
‘‘(B) At least 50 percent, or a greater per-
centage if the Commission so determines by 
regulation, of the expenses for public commu-
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nications and voter drive activities that refer to 
one or more clearly identified candidates for 
Federal office and one or more clearly identified 
non-Federal 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 
regulation, of the expenses for public commu-
nications 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 ac-
count, except that this paragraph shall not 
apply to communications or activities that re-
late exclusively to elections where no candidate 
for Federal office appears on the ballot. 
‘‘(D) At least 50 percent, or a greater per-
centage if the Commission so determines by 
regulation, of the expenses for public commu-
nications or voter drive activities that refer to 
a political party and refer to one or more clear-
ly identified non-Federal candidates, but do not 
refer to any clearly identified Federal can-
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didates, shall be paid with funds from a Federal 
account, except that this paragraph shall not 
apply to communications or activities that re-
late 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 ac-
count, except that for a separate segregated 
fund such expenses may be paid instead by its 
connected organization. 
‘‘(F) At least 50 percent, or a greater per-
centage if the Commission so determines by 
regulation, of the direct costs of a fundraising 
program or event, including disbursements for 
solicitation of funds and for planning and ad-
ministration of actual fundraising events, where 
Federal and non-Federal funds are collected 
through such program or event shall be paid 
with funds from a Federal account, except that 
for a separate segregated fund such costs may 
be paid instead by its connected organization. 
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This paragraph shall not apply to any fund-
raising solicitations or any other activity that 
constitutes a public communication. 
‘‘(2) CERTAIN REFERENCES TO FEDERAL CAN-
DIDATES NOT TAKEN INTO ACCOUNT.—For purposes 
of paragraph (1), a public communication or voter 
drive activity shall not be treated as referring to a 
clearly identified Federal candidate if the only ref-
erence to the candidate in the communication or ac-
tivity is— 
‘‘(A) 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 
‘‘(B) a reference to the fact that the can-
didate has endorsed a non-Federal candidate or 
has taken a position on an applicable State or 
local issue (as defined in section 301(27)(G)), 
including a reference that constitutes the en-
dorsement or position itself. 
‘‘(3) CERTAIN REFERENCES TO POLITICAL PAR-
TIES NOT TAKEN INTO ACCOUNT.—For purposes of 
paragraph (1), a public communication or voter 
drive activity shall not be treated as referring to a 
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political party if the only reference to the party in 
the communication or activity is— 
‘‘(A) a reference for the purpose of identi-
fying a non-Federal candidate; 
‘‘(B) a reference for the purpose of identi-
fying the entity making the public communica-
tion or carrying out the voter drive activity; or 
‘‘(C) a reference in a manner or context 
that does not reflect support for or opposition 
to a Federal candidate or candidates and does 
reflect support for or opposition to a State or 
local candidate or candidates or an applicable 
State or local issue. 
‘‘(c) QUALIFIED NON-FEDERAL ACCOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified non-Federal account’ means 
an account which consists solely of amounts— 
‘‘(A) that, subject to the limitations of 
paragraphs (2) and (3), are raised by the sepa-
rate segregated fund or nonconnected com-
mittee only from individuals, and 
‘‘(B) with respect to which all require-
ments of Federal, State, or local law (including 
any law relating to contribution limits) are met. 
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‘‘(2) 
LIMITATION
ON
INDIVIDUAL
DONA-
TIONS.— 
‘‘(A) IN GENERAL.—A separate segregated 
fund or nonconnected committee may not ac-
cept more than $25,000 in funds for its quali-
fied non-Federal account from any one indi-
vidual in any calendar year. 
‘‘(B) AFFILIATION.—For purposes of this 
paragraph, all qualified non-Federal accounts of 
separate segregated funds or nonconnected 
committees which are directly or indirectly es-
tablished, financed, maintained, or controlled by 
the same person or persons shall be treated as 
one account. 
‘‘(3) FUNDRAISING LIMITATION.— 
‘‘(A) IN
GENERAL.—No donation to a 
qualified non-Federal account may be solicited, 
received, directed, transferred, or spent by or in 
the name of any person described in subsection 
(a) or (e) of section 323. 
‘‘(B) FUNDS NOT TREATED AS SUBJECT 
TO
ACT.—Except as provided in subsection 
(a)(2) and this subsection, any funds raised for 
a qualified non-Federal account in accordance 
with the requirements of this section shall not 
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be considered funds subject to the limitations, 
prohibitions, and reporting requirements of this 
Act for any purpose (including for purposes of 
subsection (a) or (e) of section 323 or sub-
section (d)(1) of this section). 
‘‘(d) DEFINITIONS.— 
‘‘(1) FEDERAL ACCOUNT.—The term ‘Federal 
account’ means an account which consists solely of 
contributions subject to the limitations, prohibitions, 
and reporting requirements of this Act. Nothing in 
this section or in section 323(b)(2)(B)(iii) shall be 
construed to infer that a limit other than the limit 
under section 315(a)(1)(C) applies to contributions 
to the account. 
‘‘(2) NONCONNECTED COMMITTEE.—The term 
‘nonconnected committee’ shall not include a polit-
ical committee of a political party. 
‘‘(3) VOTER DRIVE ACTIVITY.—The term ‘voter 
drive activity’ has the meaning given such term in 
section 301(28).’’. 
(b) REPORTING REQUIREMENTS.—Section 304(e) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 
434(e)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5); and 
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(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) RECEIPTS
AND
DISBURSEMENTS
FROM 
QUALIFIED NON-FEDERAL ACCOUNTS.—In addition 
to any other reporting requirement applicable under 
this Act, a political committee to which section 
325(a) applies shall report all receipts and disburse-
ments from a qualified non-Federal account (as de-
fined in section 325(c)).’’. 
(c) REGULATIONS.—The Federal Election Commis-
sion shall promulgate regulations to implement the amend-
ments made by this section not later than 180 days after 
the date of enactment of this Act. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date which is 180 days 
after the date of enactment of this Act. 
SEC. 604. REPEAL OF LIMIT ON AMOUNT OF PARTY EX-
PENDITURES ON BEHALF OF CANDIDATES IN 
GENERAL ELECTIONS. 
(a) REPEAL OF LIMIT.—Section 315(d) of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 441a(d)) 
is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘(1) Notwithstanding any 
other provision of law with respect to limita-
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tions on expenditures or limitations on con-
tributions, the national committee’’ and insert-
ing ‘‘Notwithstanding any other provision of 
law with respect to limitations on amounts of 
expenditures or contributions, a national com-
mittee’’, 
(B) by striking ‘‘the general’’ and inserting 
‘‘any’’, and 
(C) by striking ‘‘Federal office, subject to 
the limitations contained in paragraphs (2), (3), 
and (4) of this subsection’’ and inserting ‘‘Fed-
eral office in any amount’’; and 
(2) by striking paragraphs (2), (3), and (4). 
(b) CONFORMING AMENDMENTS.— 
(1) INDEXING.—Section 315(c) of such Act (2 
U.S.C. 441a(c)) is amended— 
(A) in paragraph (1)(B)(i), by striking 
‘‘(d),’’; and 
(B) in paragraph (2)(B)(i), by striking 
‘‘subsections (b) and (d)’’ and inserting ‘‘sub-
section (b)’’. 
(2) INCREASE
IN
LIMITS
FOR
SENATE
CAN-
DIDATES
FACING
WEALTHY
OPPONENTS.—Section 
315(i) of such Act (2 U.S.C. 441a(i)(1)) is amend-
ed— 
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