I
105TH CONGRESS
2D SESSION
H. R. 3476
To reform the financing of Federal elections.
IN THE HOUSE OF REPRESENTATIVES
MARCH 17, 1998
Mr. LEVIN introduced the following bill; which was referred to the Committee
on House Oversight, and in addition to the Committees on Ways and
Means, Education and the Workforce, Government Reform and Over-
sight, and the Judiciary, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To reform the financing of Federal elections.
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 Improvement Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—REDUCTION OF SPECIAL INTEREST INFLUENCE
Sec. 101. Soft money of political parties.
Sec. 102. Increased contribution limits for State committees of political parties
and aggregate contribution limit for individuals.
Sec. 103. Reporting requirements.
TITLE II—INDEPENDENT AND COORDINATED EXPENDITURES
Sec. 201. Definitions.
Sec. 202. Civil penalty.
Sec. 203. Reporting requirements for certain independent expenditures.
Sec. 204. Independent versus coordinated expenditures by party.
Sec. 205. Coordination with candidates.
TITLE III—DISCLOSURE
Sec. 301. Filing of reports using computers and facsimile machines.
Sec. 302. Prohibition of deposit of contributions with incomplete contributor in-
formation.
Sec. 303. Audits.
Sec. 304. Reporting requirements for contributions of $50 or more.
Sec. 305. Use of candidates’ names.
Sec. 306. Prohibition of false representation to solicit contributions.
Sec. 307. Soft money of persons other than political parties.
Sec. 308. Campaign advertising.
TITLE IV—PERSONAL WEALTH OPTION
Sec. 401. Voluntary personal funds expenditure limit.
Sec. 402. Political party committee coordinated expenditures.
TITLE V—MISCELLANEOUS
Sec. 501. Codification of Beck decision.
Sec. 502. Use of contributed amounts for certain purposes.
Sec. 503. Limit on congressional use of the franking privilege.
Sec. 504. Prohibition of fundraising on Federal property.
Sec. 505. Penalties for knowing and willful violations.
Sec. 506. Strengthening foreign money ban.
Sec. 507. Prohibition of contributions by minors.
Sec. 508. Expedited procedures.
Sec. 509. Initiation of enforcement proceeding.
Sec. 510. Limitations on political activity by tax-exempt organizations.
Sec. 511. Definitions of political committee and political organization.
TITLE VI—SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE
DATE; REGULATIONS
Sec. 601. Severability.
Sec. 602. Review of constitutional issues.
Sec. 603. Effective date.
Sec. 604. Regulations.
TITLE I—REDUCTION OF
SPECIAL INTEREST INFLUENCE
SEC. 101. SOFT MONEY OF POLITICAL PARTIES.
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. 323. SOFT MONEY OF POLITICAL PARTIES.
‘‘(a) NATIONAL COMMITTEES.—
‘‘(1) IN GENERAL.—A national committee of a
political party (including a national congressional
campaign committee of a political party) and any of-
ficers or agents of such party committees, shall not
solicit, receive, or direct to another person a con-
tribution, donation, or transfer of funds, or spend
any funds, that are not subject to the limitations,
prohibitions, and reporting requirements of this Act.
‘‘(2) APPLICABILITY.—This subsection shall
apply to an entity that is directly or indirectly estab-
lished, financed, maintained, or controlled by a na-
tional committee of a political party (including a na-
tional congressional campaign committee of a politi-
cal party), or an entity acting on behalf of a national
committee, and an officer or agent acting on behalf
of any such committee or entity.
‘‘(b) STATE, DISTRICT, AND LOCAL COMMITTEES.—
‘‘(1) IN
GENERAL.—An amount that is ex-
pended or disbursed by a State, district, or local
committee of a political party (including an entity
that is directly or indirectly established, financed,
maintained, or controlled by a State, district, or
local committee of a political party and an officer or
agent acting on behalf of such committee or entity)
for Federal election activity shall be made from
funds subject to the limitations, prohibitions, and re-
porting requirements of this Act.
‘‘(2) FEDERAL ELECTION ACTIVITY.—
‘‘(A) IN
GENERAL.—The term ‘Federal
election activity’ means—
‘‘(i) voter registration activity during
the period that begins on the date that is
120 days before the date a regularly sched-
uled Federal election is held and ends on
the date of the election;
‘‘(ii) voter identification, get-out-the-
vote activity, or generic campaign activity
conducted in connection with an election in
which a candidate for Federal office ap-
pears on the ballot (regardless of whether
a candidate for State or local office also
appears on the ballot); and
‘‘(iii) a communication that refers to a
clearly identified candidate for Federal of-
fice (regardless of whether a candidate for
State or local office is also mentioned or
identified) and is made for the purpose of
influencing a Federal election (regardless
of whether the communication is express
advocacy).
‘‘(B) EXCLUDED
ACTIVITY.—The term
‘Federal election activity’ does not include an
amount expended or disbursed by a State, dis-
trict, or local committee of a political party
for—
‘‘(i) campaign activity conducted sole-
ly on behalf of a clearly identified can-
didate for State or local office, provided
the campaign activity is not a Federal elec-
tion activity described in subparagraph
(A);
‘‘(ii) a contribution to a candidate for
State or local office, provided the contribu-
tion is not designated or used to pay for a
Federal election activity described in sub-
paragraph (A);
‘‘(iii) the costs of a State, district, or
local political convention;
‘‘(iv) the costs of grassroots campaign
materials, including buttons, bumper stick-
ers, and yard signs, that name or depict
only a candidate for State or local office;
‘‘(v) the non-Federal share of a State,
district, or local party committee’s admin-
istrative and overhead expenses (but not
including the compensation in any month
of an individual who spends more than 20
percent of the individual’s time on Federal
election activity) as determined by a regu-
lation promulgated by the Commission to
determine the non-Federal share of a
State, district, or local party committee’s
administrative and overhead expenses; and
‘‘(vi) the cost of constructing or pur-
chasing an office facility or equipment for
a State, district or local committee.
‘‘(c) FUNDRAISING COSTS.—An amount spent by a
national, State, district, or local committee of a political
party, by an entity that is established, financed, main-
tained, or controlled by a national, State, district, or local
committee of a political party, or by an agent or officer
of any such committee or entity, to raise funds that are
used, in whole or in part, to pay the costs of a Federal
election activity shall be made from funds subject to the
limitations, prohibitions, and reporting requirements of
this Act.
‘‘(d) TAX-EXEMPT
ORGANIZATIONS.—A national,
State, district, or local committee of a political party (in-
cluding a national congressional campaign committee of
a political party, an entity that is directly or indirectly
established, financed, maintained, or controlled by any
such national, State, district, or local committee or its
agent, an agent acting on behalf of any such party com-
mittee, and an officer or agent acting on behalf of any
such party committee or entity), shall not solicit any funds
for, or make or direct any donations to, an organization
that is described in section 501(c) of the Internal Revenue
Code of 1986 and exempt from taxation under section
501(a) of such Code (or has submitted an application to
the Secretary of the Internal Revenue Service for deter-
mination of tax-exemption under such section).
‘‘(e) CANDIDATES.—
‘‘(1) IN
GENERAL.—A candidate, individual
holding Federal office, or agent of a candidate or in-
dividual holding Federal office shall not solicit, re-
ceive, direct, transfer, or spend funds for a Federal
election activity on behalf of such candidate, individ-
ual, agent or any other person, unless the funds are
subject to the limitations, prohibitions, and reporting
requirements of this Act.
‘‘(2) STATE
LAW.—Paragraph (1) does not
apply to the solicitation or receipt of funds by an in-
dividual who is a candidate for a State or local office
if the solicitation or receipt of funds is permitted
under State law for any activity other than a Fed-
eral election activity.
‘‘(3) FUNDRAISING
EVENTS.—Paragraph (1)
does not apply in the case of a candidate who at-
tends, speaks, or is a featured guest at a fundraising
event sponsored by a State, district, or local commit-
tee of a political party.’’.
SEC. 102. INCREASED CONTRIBUTION LIMITS FOR STATE
COMMITTEES OF POLITICAL PARTIES AND
AGGREGATE CONTRIBUTION LIMIT FOR INDI-
VIDUALS.
(a) CONTRIBUTION LIMIT FOR STATE COMMITTEES
OF POLITICAL PARTIES.—Section 315(a)(1) of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1))
is amended—
(1) in subparagraph (B), by striking ‘‘or’’ at
the end;
(2) in subparagraph (C)—
(A) by inserting ‘‘(other than a committee
described in subparagraph (D))’’ after ‘‘com-
mittee’’; and
(B) by striking the period at the end and
inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(D) to a political committee established and
maintained by a State committee of a political party
in any calendar year that, in the aggregate, exceed
$10,000’’.
(b) AGGREGATE CONTRIBUTION LIMIT FOR INDIVID-
UAL.—Section 315(a)(3) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(3)) is amended by
striking ‘‘$25,000’’ and inserting ‘‘$30,000’’.
SEC. 103. REPORTING REQUIREMENTS.
(a) REPORTING REQUIREMENTS.—Section 304 of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434)
(as amended by section 203) is amended by adding at the
end the following:
‘‘(e) POLITICAL COMMITTEES.—
‘‘(1) NATIONAL AND CONGRESSIONAL POLITI-
CAL COMMITTEES.—The national committee of a po-
litical party, any national congressional campaign
committee of a political party, and any subordinate
committee of either, shall report all receipts and dis-
bursements during the reporting period.
‘‘(2) OTHER POLITICAL COMMITTEES TO WHICH
SECTION 323 APPLIES.—A political committee (not
described in paragraph (1)) to which section
323(b)(1) applies shall report all receipts and dis-
bursements made for activities described in para-
graphs (2) and (3)(A)(v) of section 323(b).
‘‘(3) ITEMIZATION.—If a political committee
has receipts or disbursements to which this sub-
section applies from any person aggregating in ex-
cess of $200 for any calendar year, the political
committee shall separately itemize its reporting for
such person in the same manner as required in para-
graphs (3)(A), (5), and (6) of subsection (b).
‘‘(4) REPORTING
PERIODS.—Reports required
to be filed under this subsection shall be filed for the
same time periods required for political committees
under subsection (a).’’.
(b) BUILDING FUND EXCEPTION TO THE DEFINI-
TION OF CONTRIBUTION.—Section 301(8)(B) of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 431(8)(B))
is amended—
(1) by striking clause (viii); and
(2) by redesignating clauses (ix) through (xiv)
as clauses (viii) through (xiii), respectively.
TITLE II—INDEPENDENT AND
COORDINATED EXPENDITURES
SEC. 201. DEFINITIONS.
(a) DEFINITION OF INDEPENDENT EXPENDITURE.—
Section 301 of the Federal Election Campaign Act (2
U.S.C. 431) is amended by striking paragraph (17) and
inserting the following:
‘‘(17) INDEPENDENT EXPENDITURE.—
‘‘(A) IN GENERAL.—The term ‘independ-
ent expenditure’ means an expenditure by a
person—
‘‘(i) for a communication that is ex-
press advocacy; and
‘‘(ii) that is not provided in coordina-
tion with a candidate or a candidate’s
agent or a person who is coordinating with
a candidate or a candidate’s agent.’’.
(b) DEFINITION OF EXPRESS ADVOCACY.—Section
301 of the Federal Election Campaign Act of 1971 (2
U.S.C. 431) is amended by adding at the end the follow-
ing:
‘‘(20) EXPRESS ADVOCACY.—
‘‘(A) IN GENERAL.—The term ‘express ad-
vocacy’ means a communication that advocates
the election or defeat of a candidate by—
‘‘(i) containing a phrase such as ‘vote
for’, ‘re-elect’, ‘support’, ‘cast your ballot
for’, ‘(name of candidate) for Congress’,
‘(name of candidate) in 1997’, ‘vote
against’, ‘defeat’, ‘reject’, or a campaign
slogan or words that in context can have
no reasonable meaning other than to advo-
cate the election or defeat of 1 or more
clearly identified candidates;
‘‘(ii) referring to 1 or more clearly
identified candidates in a paid advertise-
ment that is broadcast by a radio broad-
cast station or a television broadcast sta-
tion within 60 calendar days preceding the
date of an election of the candidate and
that appears in the State in which the elec-
tion is occurring, except that with respect
to a candidate for the office of Vice Presi-
dent or President, the time period is within
60 calendar days preceding the date of a
general election; or
‘‘(iii) expressing unmistakable and un-
ambiguous support for or opposition to 1
or more clearly identified candidates when
taken as a whole and with limited ref-
erence to external events, such as proxim-
ity to an election.
‘‘(B) VOTING RECORD AND VOTING GUIDE
EXCEPTION.—The term ‘express advocacy’ does
not include a printed communication that—
‘‘(i) presents information in an edu-
cational manner solely about the voting
record or position on a campaign issue of
2 or more candidates;
‘‘(ii) that is not made in coordination
with a candidate, political party, or agent
of the candidate or party; or a candidate’s
agent or a person who is coordinating with
a candidate or a candidate’s agent;
‘‘(iii) does not contain a phrase such
as ‘vote for’, ‘re-elect’, ‘support’, ‘cast your
ballot for’, ‘(name of candidate) for Con-
gress’, ‘(name of candidate) in 1997’, ‘vote
against’, ‘defeat’, or ‘reject’, or a campaign
slogan or words that in context can have
no reasonable meaning other than to urge
the election or defeat of 1 or more clearly
identified candidates.’’.
(c) 
DEFINITION
OF
EXPENDITURE.—Section
301(9)(A) of the Federal Election Campaign Act of 1971
(2 U.S.C. 431(9)(A)) is amended—
(1) in clause (i), by striking ‘‘and’’ at the end;
(2) in clause (ii), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(iii) a payment for a communication that is
express advocacy; and
‘‘(iv) a payment made by a person for a com-
munication that—
‘‘(I) refers to a clearly identified candidate;
‘‘(II) is provided in coordination with the
candidate, the candidate’s agent, or the political
party of the candidate; and
‘‘(III) is for the purpose of influencing a
Federal election (regardless of whether the com-
munication is express advocacy).’’.
SEC. 202. CIVIL PENALTY.
Section 309 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 437g) is amended—
(1) in subsection (a)—
(A) in paragraph (4)(A)—
(i) in clause (i), by striking ‘‘clause
(ii)’’ and inserting ‘‘clauses (ii) and (iii)’’;
and
(ii) by adding at the end the follow-
ing:
‘‘(iii) If the Commission determines by an affirmative
vote of 4 of its members that there is probable cause to
believe that a person has made a knowing and willful viola-
tion of section 304(c), the Commission shall not enter into
a conciliation agreement under this paragraph and may
institute a civil action for relief under paragraph (6)(A).’’;
and
(B) in paragraph (6)(B), by inserting ‘‘(ex-
cept an action instituted in connection with a
knowing 
and 
willful 
violation 
of 
section
304(c))’’ after ‘‘subparagraph (A)’’; and
(2) in subsection (d)(1)—
(A) in subparagraph (A), by striking ‘‘Any
person’’ and inserting ‘‘Except as provided in
subparagraph (D), any person’’; and
(B) by adding at the end the following:
‘‘(D) In the case of a knowing and willful violation
of section 304(c) that involves the reporting of an inde-
pendent expenditure, the violation shall not be subject to
this subsection.’’.
SEC. 203. REPORTING REQUIREMENTS FOR CERTAIN INDE-
PENDENT EXPENDITURES.
Section 304(c) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434(c)) is amended—
(1) in paragraph (2), by striking the undesig-
nated matter after subparagraph (C);
(2) by redesignating paragraph (3) as para-
graph (7); and
(3) by inserting after paragraph (2) (as amend-
ed by paragraph (1)) the following:
‘‘(d) TIME
FOR REPORTING CERTAIN EXPENDI-
TURES.—
‘‘(1) EXPENDITURES AGGREGATING $1,000.—
‘‘(A) INITIAL REPORT.—A person (includ-
ing a political committee) that makes or con-
tracts to make independent expenditures aggre-
gating $1,000 or more after the 20th day, but
more than 24 hours, before the date of an elec-
tion shall file a report describing the expendi-
tures within 24 hours after that amount of
independent expenditures has been made.
‘‘(B) ADDITIONAL REPORTS.—After a per-
son files a report under subparagraph (A), the
person shall file an additional report within 24
hours after each time the person makes or con-
tracts to make independent expenditures aggre-
gating an additional $1,000 with respect to the
same election as that to which the initial report
relates.
‘‘(2) EXPENDITURES AGGREGATING $10,000.—
‘‘(A) INITIAL REPORT.—A person (includ-
ing a political committee) that makes or con-
tracts to make independent expenditures aggre-
gating $10,000 or more at any time up to and
including the 20th day before the date of an
election shall file a report describing the ex-
penditures within 48 hours after that amount
of independent expenditures has been made.
‘‘(B) ADDITIONAL REPORTS.—After a per-
son files a report under subparagraph (A), the
person shall file an additional report within 48
hours after each time the person makes or con-
tracts to make independent expenditures aggre-
gating an additional $10,000 with respect to
the same election as that to which the initial re-
port relates.
‘‘(3) PLACE OF FILING; CONTENTS.—A report
under this subsection—
‘‘(A) shall be filed with the Commission;
and
‘‘(B) shall contain the information required
by subsection (b)(6)(B)(iii), including the name
of each candidate whom an expenditure is in-
tended to support or oppose.’’.
SEC. 204. INDEPENDENT VERSUS COORDINATED EXPENDI-
TURES BY PARTY.
Section 315(d) of the Federal Election Campaign Act
(2 U.S.C. 441a(d)) is amended—
(1) in paragraph (1), by striking ‘‘and (3)’’ and
inserting ‘‘, (3), and (4)’’; and
(2) by adding at the end the following:
‘‘(4) INDEPENDENT VERSUS COORDINATED EX-
PENDITURES BY PARTY.—
‘‘(A) IN GENERAL.—On or after the date
on which a political party nominates a can-
didate, a committee of the political party shall
not make both expenditures under this sub-
section and independent expenditures (as de-
fined in section 301(17)) with respect to the
candidate during the election cycle.
‘‘(B) CERTIFICATION.—Before making a
coordinated expenditure under this subsection
with respect to a candidate, a committee of a
political party shall file with the Commission a
certification, signed by the treasurer of the
committee, that the committee has not and
shall not make any independent expenditure
with respect to the candidate during the same
election cycle.
‘‘(C) APPLICATION.—For the purposes of
this paragraph, all political committees estab-
lished and maintained by a national political
party (including all congressional campaign
committees) and all political committees estab-
lished and maintained by a State political party
(including any subordinate committee of a State
committee) shall be considered to be a single
political committee.
‘‘(D) TRANSFERS.—A committee of a po-
litical party that submits a certification under
subparagraph (B) with respect to a candidate
shall not, during an election cycle, transfer any
funds to, assign authority to make coordinated
expenditures under this subsection to, or receive
a transfer of funds from, a committee of the po-
litical party that has made or intends to make
an independent expenditure with respect to the
candidate.’’.
SEC. 205. COORDINATION WITH CANDIDATES.
(a) DEFINITION
OF COORDINATION WITH CAN-
DIDATES.—
(1) SECTION
301(8).—Section 301(8) of the
Federal Election Campaign Act of 1971 (2 U.S.C.
431(8)) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘or’’ at the end of
clause (i);
(ii) by striking the period at the end
of clause (ii) and inserting ‘‘; or’’; and
(iii) by adding at the end the follow-
ing:
‘‘(iii) anything of value provided by a
person in coordination with a candidate for
the purpose of influencing a Federal elec-
tion, regardless of whether the value being
provided is a communication that is ex-
press advocacy, in which such candidate
seeks nomination or election to Federal of-
fice.’’; and
(B) by adding at the end the following:
‘‘(C) The term ‘provided in coordination
with a candidate’ includes—
‘‘(i) a payment made by a person in
cooperation, consultation, or concert with,
at the request or suggestion of, or pursu-
ant to any general or particular under-
standing with a candidate, the candidate’s
authorized committee, or an agent acting
on behalf of a candidate or authorized
committee;
‘‘(ii) a payment made by a person for
the production, dissemination, distribution,
or republication, in whole or in part, of any
broadcast or any written, graphic, or other
form of campaign material prepared by a
candidate, a candidate’s authorized com-
mittee, or an agent of a candidate or au-
thorized committee (not including a com-
munication 
described 
in 
paragraph
(9)(B)(i) or a communication that ex-
pressly advocates the candidate’s defeat);
‘‘(iii) a payment made by a person
based on information about a candidate’s
plans, projects, or needs provided to the
person making the payment by the can-
didate or the candidate’s agent who pro-
vides the information with the intent that
the payment be made;
‘‘(iv) a payment made by a person if,
in the same election cycle in which the pay-
ment is made, the person making the pay-
ment is serving or has served as a member,
employee, fundraiser, or agent of the can-
didate’s authorized committee in an execu-
tive or policymaking position;
‘‘(v) a payment made by a person if
the person making the payment has served
in any formal policy making or advisory
position with the candidate’s campaign or
has participated in formal strategic or for-
mal policymaking discussions with the can-
didate’s campaign relating to the can-
didate’s pursuit of nomination for election,
or election, to Federal office, in the same
election cycle as the election cycle in which
the payment is made;
‘‘(vi) a payment made by a person if,
in the same election cycle, the person mak-
ing the payment retains the professional
services of any person that has provided or
is providing campaign-related services in
the same election cycle to a candidate in
connection with the candidate’s pursuit of
nomination for election, or election, to
Federal office, including services relating
to the candidate’s decision to seek Federal
office, and the person retained is retained
to work on activities relating to that can-
didate’s campaign;
‘‘(vii) a payment made by a person
who has engaged in a coordinated activity
with a candidate described in clauses (i)
through (vi) for a communication that
clearly refers to the candidate and is for
the purpose of influencing an election (re-
gardless of whether the communication is
express advocacy);
‘‘(viii) direct participation by a person
in fundraising activities with the candidate
or in the solicitation or receipt of contribu-
tions on behalf of the candidate;
‘‘(ix) communication by a person with
the candidate or an agent of the candidate,
occurring after the declaration of can-
didacy (including a pollster, media consult-
ant, vendor, advisor, or staff member), act-
ing on behalf of the candidate, about ad-
vertising message, allocation of resources,
‘‘(B) a thing of value provided in coordina-
tion with a candidate, as described in section
301(8)(A)(iii), shall be considered to be a con-
tribution to the candidate, and in the case of a
limitation on expenditures, shall be treated as
an expenditure by the candidate.
(b) MEANING OF CONTRIBUTION OR EXPENDITURE
FOR THE PURPOSES OF SECTION 316.—Section 316(b)(2)
of the Federal Election Campaign Act of 1971 (2 U.S.C.
441b(b)) is amended by striking ‘‘shall include’’ and in-
serting ‘‘includes a contribution or expenditure, as those
terms are defined in section 301, and also includes’’.
TITLE III—DISCLOSURE
SEC. 301. FILING OF REPORTS USING COMPUTERS AND
FACSIMILE MACHINES.
Section 302(a) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434(a)) is amended by striking para-
graph (11) and inserting the following:
‘‘(11)(A) The Commission shall promulgate a
regulation under which a person required to file a
designation, statement, or report under this Act—
‘‘(i) is required to maintain and file a des-
ignation, statement, or report for any calendar
year in electronic form accessible by computers
if the person has, or has reason to expect to
have, aggregate contributions or expenditures in
excess of a threshold amount determined by the
Commission; and
‘‘(ii) may maintain and file a designation,
statement, or report in electronic form or an al-
ternative form, including the use of a facsimile
machine, if not required to do so under the reg-
ulation promulgated under clause (i).
‘‘(B) The Commission shall make a designation,
statement, report, or notification that is filed elec-
tronically with the Commission accessible to the pub-
lic on the Internet not later than 24 hours after the
designation, statement, report, or notification is re-
ceived by the Commission.
‘‘(C) In promulgating a regulation under this
paragraph, the Commission shall provide methods
(other than requiring a signature on the document
being filed) for verifying designations, statements,
and reports covered by the regulation. Any document
verified under any of the methods shall be treated
for all purposes (including penalties for perjury) in
the same manner as a document verified by signa-
ture.’’.
SEC. 302. PROHIBITION OF DEPOSIT OF CONTRIBUTIONS
WITH INCOMPLETE CONTRIBUTOR INFORMA-
TION.
Section 302 of Federal Election Campaign Act of
1971 (2 U.S.C. 432) is amended by adding at the end
the following:
‘‘(j) DEPOSIT OF CONTRIBUTIONS.—The treasurer of
a candidate’s authorized committee shall not deposit, ex-
cept in an escrow account, or otherwise negotiate a con-
tribution from a person who makes an aggregate amount
of contributions in excess of $200 during a calendar year
unless the treasurer verifies that the information required
by this section with respect to the contributor is com-
plete.’’.
SEC. 303. AUDITS.
(a) RANDOM AUDITS.—Section 311(b) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 438(b)) is
amended—
(1) by inserting ‘‘(1) IN GENERAL.—’’ before
‘‘The Commission’’; and
(2) by adding at the end the following:
‘‘(2) RANDOM AUDITS.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), the Commission may conduct ran-
dom audits and investigations to ensure vol-
untary compliance with this Act. The selection
of any candidate for a random audit or inves-
tigation shall be based on criteria adopted by a
vote of at least 4 members of the Commission.
‘‘(B) LIMITATION.—The Commission shall
not conduct an audit or investigation of a can-
didate’s authorized committee under subpara-
graph (A) until the candidate is no longer a
candidate for the office sought by the candidate
in an election cycle.
‘‘(C) 
APPLICABILITY.—This 
paragraph
does not apply to an authorized committee of a
candidate for President or Vice President sub-
ject to audit under section 9007 or 9038 of the
Internal Revenue Code of 1986.’’.
(b) EXTENSION OF PERIOD DURING WHICH CAM-
PAIGN AUDITS MAY BE BEGUN.—Section 311(b) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 438(b))
is amended by striking ‘‘6 months’’ and inserting ‘‘12
months’’.
SEC. 304. REPORTING REQUIREMENTS FOR CONTRIBU-
TIONS OF $50 OR MORE.
Section 304(b)(3)(A) of the Federal Election Cam-
paign Act at 1971 (2 U.S.C. 434(b)(3)(A) is amended—
(1) by striking ‘‘$200’’ and inserting ‘‘$50’’;
and
(2) by striking the semicolon and inserting ‘‘,
except that in the case of a person who makes con-
tributions aggregating at least $50 but not more
than $200 during the calendar year, the identifica-
tion need include only the name and address of the
person;’’.
SEC. 305. USE OF CANDIDATES’ NAMES.
Section 302(e) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 432(e)) is amended by striking para-
graph (4) and inserting the following:
‘‘(4)(A) The name of each authorized commit-
tee shall include the name of the candidate who au-
thorized the committee under paragraph (1).
‘‘(B) A political committee that is not an au-
thorized committee shall not—
‘‘(i) include the name of any candidate in
its name; or
‘‘(ii) except in the case of a national,
State, or local party committee, use the name
of any candidate in any activity on behalf of the
committee in such a context as to suggest that
the committee is an authorized committee of
the candidate or that the use of the candidate’s
name has been authorized by the candidate.’’.
SEC. 306. PROHIBITION OF FALSE REPRESENTATION TO
SOLICIT CONTRIBUTIONS.
Section 322 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441h) is amended—
(1) by inserting after ‘‘SEC. 322.’’ the follow-
ing: ‘‘(a) IN GENERAL.—’’; and
(2) by adding at the end the following:
‘‘(b) SOLICITATION OF CONTRIBUTIONS.—No person
shall solicit contributions by falsely representing himself
or herself as a candidate or as a representative of a can-
didate, a political committee, or a political party.’’.
SEC. 307. SOFT MONEY OF PERSONS OTHER THAN POLITI-
CAL PARTIES.
(a) IN GENERAL.—Section 304 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 434) (as amended
by section 103(c)) is amended by adding at the end the
following:
‘‘(g) DISBURSEMENTS OF PERSONS OTHER THAN
POLITICAL PARTIES.—
‘‘(1) IN GENERAL.—A person, other than a po-
litical committee or a person described in section
501(d) of the Internal Revenue Code of 1986, that
makes an aggregate amount of disbursements in ex-
cess of $50,000 during a calendar year for activities
described in paragraph (2) shall file a statement
with the Commission—
‘‘(A) on a monthly basis as described in
subsection (a)(4)(B); or
‘‘(B) in the case of disbursements that are
made within 20 days of an election, within 24
hours after the disbursements are made.
‘‘(2) ACTIVITY.—The activity described in this
paragraph is—
‘‘(A) Federal election activity;
‘‘(B) an activity described in section
316(b)(2)(A) that expresses support for or op-
position to a candidate for Federal office or a
political party; and
‘‘(C) an activity described in subparagraph
(C) of section 316(b)(2).
‘‘(3) APPLICABILITY.—This subsection does not
apply to—
‘‘(A) a candidate or a candidate’s author-
ized committees; or
‘‘(B) an independent expenditure.
‘‘(4) CONTENTS.—A statement under this sec-
tion shall contain such information about the dis-
bursements made during the reporting period as the
Commission shall prescribe, including—
‘‘(A) the aggregate amount of disburse-
ments made;
‘‘(B) the name and address of the person
or entity to whom a disbursement is made in an
aggregate amount in excess of $200;
‘‘(C) the date made, amount, and purpose
of the disbursement; and
‘‘(D) if applicable, whether the disburse-
ment was in support of, or in opposition to, a
candidate or a political party, and the name of
the candidate or the political party.’’.
(b) DEFINITION OF GENERIC CAMPAIGN ACTIVITY.—
Section 301 of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.), as amended by section
201(b), is further amended by adding at the end the fol-
lowing:
‘‘(21) GENERIC CAMPAIGN ACTIVITY.—The term ‘ge-
neric campaign activity’ means an activity that promotes
a political party and does not promote a candidate or non-
Federal candidate.’’.
SEC. 308. CAMPAIGN ADVERTISING.
Section 318 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441d) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph
(1)—
(i) by striking ‘‘Whenever’’ and insert-
ing ‘‘Whenever a political committee makes
a disbursement for the purpose of financ-
ing any communication through any broad-
casting station, newspaper, magazine, out-
door advertising facility, mailing, or any
other type of general public political adver-
tising, or whenever’’;
(ii) by striking ‘‘an expenditure’’ and
inserting ‘‘a disbursement’’; and
(iii) by striking ‘‘direct’’; and
(B) in paragraph (3), by inserting ‘‘and
permanent street address’’ after ‘‘name’’; and
(2) by adding at the end the following:
‘‘(c) Any printed communication described in sub-
section (a) shall—
‘‘(1) be of sufficient type size to be clearly read-
able by the recipient of the communication;
‘‘(2) be contained in a printed box set apart
from the other contents of the communication; and
‘‘(3) be printed with a reasonable degree of
color contrast between the background and the
printed statement.
‘‘(d)(1) Any broadcast or cablecast communication
described in paragraphs (1) or (2) of subsection (a) shall
include, in addition to the requirements of that paragraph,
an audio statement by the candidate that identifies the
candidate and states that the candidate has approved the
communication.
‘‘(2) If a broadcast or cablecast communication de-
scribed in paragraph (1) is broadcast or cablecast by
means of television, the communication shall include, in
addition to the audio statement under paragraph (1), a
written statement that—
‘‘(A) appears at the end of the communication
in a clearly readable manner with a reasonable de-
gree of color contrast between the background and
the printed statement, for a period of at least 4 sec-
onds; and
‘‘(B) is accompanied by a clearly identifiable
photographic or similar image of the candidate.
‘‘(e) Any broadcast or cablecast communication de-
scribed in paragraph (3) of subsection (a) shall include,
in addition to the requirements of that paragraph, in a
clearly 
spoken 
manner, 
the 
following 
statement:
‘llllllll is responsible for the content of this
advertisement.’ (with the blank to be filled in with the
name of the political committee or other person paying
for the communication and the name of any connected or-
ganization of the payor). If broadcast or cablecast by
means of television, the statement shall also appear in a
clearly readable manner with a reasonable degree of color
contrast between the background and the printed state-
ment, for a period of at least 4 seconds.’’.
TITLE IV—PERSONAL WEALTH
OPTION
SEC. 401. VOLUNTARY PERSONAL FUNDS EXPENDITURE
LIMIT.
Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) (as amended by section 101)
is amended by adding at the end the following:
‘‘SEC. 324. VOLUNTARY PERSONAL FUNDS EXPENDITURE
LIMIT.
‘‘(a) ELIGIBLE HOUSE CANDIDATE.—
‘‘(1) PRIMARY ELECTION.—
‘‘(A) DECLARATION.—A candidate is an el-
igible primary election House candidate if the
candidate files with the Commission a declara-
tion that the candidate and the candidate’s au-
thorized committees will not make expenditures
in excess of the personal funds expenditure
limit.
‘‘(B) TIME
TO
FILE.—The declaration
under subparagraph (A) shall be filed not later
than the date on which the candidate files with
the appropriate State officer as a candidate for
the primary election.
‘‘(2) GENERAL ELECTION.—
‘‘(A) DECLARATION.—A candidate is an el-
igible general election House candidate if the
candidate files with the Commission—
‘‘(i) a declaration under penalty of
perjury, with supporting documentation as
required by the Commission, that the can-
didate and the candidate’s authorized com-
mittees did not exceed the personal funds
expenditure limit in connection with the
primary election; and
‘‘(ii) a declaration that the candidate
and the candidate’s authorized committees
will not make expenditures in excess of the
personal funds expenditure limit.
‘‘(B) TIME
TO
FILE.—The declaration
under subparagraph (A) shall be filed not later
than 7 days after the earlier of—
‘‘(i) the date on which the candidate
qualifies for the general election ballot
under State law; or
‘‘(ii) if under State law, a primary or
run-off election to qualify for the general
election ballot occurs after September 1,
the date on which the candidate wins the
primary or runoff election.
‘‘(b) PERSONAL FUNDS EXPENDITURE LIMIT.—
‘‘(1) IN GENERAL.—The aggregate amount of
expenditures that may be made in connection with
an election by an eligible House candidate or the
candidate’s authorized committees from the sources
described in paragraph (2) shall not exceed $50,000.
‘‘(2) SOURCES.—A source is described in this
paragraph if the source is—
‘‘(A) personal funds of the candidate and
members of the candidate’s immediate family;
or
‘‘(B) proceeds of indebtedness incurred by
the candidate or a member of the candidate’s
immediate family.
‘‘(c) CERTIFICATION BY THE COMMISSION.—
‘‘(1) IN GENERAL.—The Commission shall de-
termine whether a candidate has met the require-
ments of this section and, based on the determina-
tion, issue a certification stating whether the can-
didate is an eligible House candidate.
‘‘(2) TIME
FOR
CERTIFICATION.—Not later
than 7 business days after a candidate files a dec-
laration under paragraph (1) or (2) of subsection
(a), the Commission shall certify whether the can-
didate is an eligible House candidate.
‘‘(3) REVOCATION.—The Commission shall re-
voke a certification under paragraph (1), based on
information submitted in such form and manner as
the Commission may require or on information that
comes to the Commission by other means, if the
Commission determines that a candidate violates the
personal funds expenditure limit.
‘‘(4) DETERMINATIONS BY COMMISSION.—A de-
termination made by the Commission under this
subsection shall be final, except to the extent that
the determination is subject to examination and
audit by the Commission and to judicial review.
‘‘(d) PENALTY.—If the Commission revokes the cer-
tification of an eligible House candidate—
‘‘(1) the Commission shall notify the candidate
of the revocation; and
‘‘(2) the candidate and a candidate’s authorized
committees shall pay to the Commission an amount
equal to the amount of expenditures made by a na-
tional committee of a political party or a State com-
mittee of a political party in connection with the
general election campaign of the candidate under
section 315(d).’’.
SEC. 402. POLITICAL PARTY COMMITTEE COORDINATED
EXPENDITURES.
Section 315(d) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a(d)) (as amended by section 204)
is amended by adding at the end the following:
‘‘(5) This subsection does not apply to expendi-
tures made in connection with the general election
campaign of a candidate for the House of Rep-
resentatives who is not an eligible House candidate
(as defined in section 324(a)).’’.
TITLE V—MISCELLANEOUS
SEC. 501. CODIFICATION OF BECK DECISION.
Section 8 of the National Labor Relations Act (29
U.S.C. 158) is amended by adding at the end the following
new subsection:
‘‘(h) NONUNION MEMBER PAYMENTS TO LABOR OR-
GANIZATION.—
‘‘(1) IN GENERAL.—It shall be an unfair labor
practice for any labor organization which receives a
payment from an employee pursuant to an agree-
ment that requires employees who are not members
of the organization to make payments to such orga-
nization in lieu of organization dues or fees not to
establish and implement the objection procedure de-
scribed in paragraph (2).
‘‘(2) OBJECTION
PROCEDURE.—The objection
procedure required under paragraph (1) shall meet
the following requirements:
‘‘(A) The labor organization shall annually
provide to employees who are covered by such
agreement but are not members of the organi-
zation—
‘‘(i) reasonable personal notice of the
objection procedure, the employees eligible
to invoke the procedure, and the time,
place, and manner for filing an objection;
and
‘‘(ii) reasonable opportunity to file an
objection to paying for organization ex-
penditures supporting political activities
unrelated to collective bargaining, includ-
ing but not limited to the opportunity to
file such objection by mail.
‘‘(B) If an employee who is not a member
of the labor organization files an objection
under the procedure in subparagraph (A), such
organization shall—
‘‘(i) reduce the payments in lieu of or-
ganization dues or fees by such employee
by an amount which reasonably reflects the
ratio that the organization’s expenditures
supporting political activities unrelated to
collective bargaining bears to such organi-
zation’s total expenditures;
‘‘(ii) provide such employee with a
reasonable explanation of the organiza-
tion’s calculation of such reduction, includ-
ing calculating the amount of organization
expenditures supporting political activities
unrelated to collective bargaining.
‘‘(3) DEFINITION.—In this subsection, the term
‘expenditures supporting political activities unrelated
to collective bargaining’ means expenditures in con-
nection with a Federal, State, or local election or in
connection with efforts to influence legislation unre-
lated to collective bargaining.’’.
SEC. 502. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN
PURPOSES.
Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) is amended by striking section
313 and inserting the following:
‘‘SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN
PURPOSES.
‘‘(a) PERMITTED USES.—A contribution accepted by
a candidate, and any other amount received by an individ-
ual as support for activities of the individual as a holder
of Federal office, may be used by the candidate or individ-
ual—
‘‘(1) for expenditures in connection with the
campaign for Federal office of the candidate or indi-
vidual;
‘‘(2) for ordinary and necessary expenses in-
curred in connection with duties of the individual as
a holder of Federal office;
‘‘(3) for contributions to an organization de-
scribed in section 170(c) of the Internal Revenue
Code of 1986; or
‘‘(4) for transfers to a national, State, or local
committee of a political party.
‘‘(b) PROHIBITED USE.—
‘‘(1) IN GENERAL.—A contribution or amount
described in subsection (a) shall not be converted by
any person to personal use.
‘‘(2) CONVERSION.—For the purposes of para-
graph (1), a contribution or amount shall be consid-
ered to be converted to personal use if the contribu-
tion or amount is used to fulfill any commitment,
obligation, or expense of a person that would exist
irrespective of the candidate’s election campaign or
individual’s duties as a holder of Federal office-
holder, including—
‘‘(A) a home mortgage, rent, or utility pay-
ment;
‘‘(B) a clothing purchase;
‘‘(C) a noncampaign-related automobile ex-
pense;
‘‘(D) a country club membership;
‘‘(E) a vacation or other noncampaign-re-
lated trip;
‘‘(F) a household food item;
‘‘(G) a tuition payment;
‘‘(H) admission to a sporting event, con-
cert, theater, or other form of entertainment
not associated with an election campaign; and
‘‘(I) dues, fees, and other payments to a
health club or recreational facility.’’.
SEC. 503. LIMIT ON CONGRESSIONAL USE OF THE FRANK-
ING PRIVILEGE.
Section 3210(a)(6) of title 39, United States Code,
is amended by striking subparagraph (A) and inserting
the following:
‘‘(A) A Member of Congress shall not mail
any mass mailing as franked mail during a year
in which there will be an election for the seat
held by the Member during the period between
January 1 of that year and the date of the gen-
eral election for that Office, unless the Member
has made a public announcement that the
Member will not be a candidate for reelection to
that year or for election to any other Federal
office.’’.
SEC. 504. PROHIBITION OF FUNDRAISING ON FEDERAL
PROPERTY.
Section 607 of title 18, United States Code, is
amended by—
(1) striking subsection (a) and inserting the fol-
lowing:
‘‘(a) PROHIBITION.—
‘‘(1) IN GENERAL.—It shall be unlawful for any
person to solicit or receive a donation of money or
other thing of value for a political committee or a
candidate for Federal, State or local office from a
person who is located in a room or building occupied
in the discharge of official duties by an officer or
employee of the United States. An individual who is
an officer or employee of the Federal Government,
including the President, Vice President, and Mem-
bers of Congress, shall not solicit a donation of
money or other thing of value for a political commit-
tee or candidate for Federal, State or local office,
while in any room or building occupied in the dis-
charge of official duties by an officer or employee of
the United States, from any person.
‘‘(2) PENALTY.—A person who violates this sec-
tion shall be fined not more than $5,000, imprisoned
more than 3 years, or both.’’.
(2) inserting in subsection (b) after ‘‘Congress’’
‘‘or Executive Office of the President’’.
SEC. 505. PENALTIES FOR KNOWING AND WILLFUL VIOLA-
TIONS.
(a) INCREASED PENALTIES.—Section 309(a) of the
Federal Election Campaign Act of 1971 (2 U.S.C.
437g(a)) is amended—
(1) in paragraphs (5)(A), (6)(A), and (6)(B),
by striking ‘‘$5,000’’ and inserting ‘‘$10,000’’; and
(2) in paragraphs (5)(B) and (6)(C), by strik-
ing ‘‘$10,000 or an amount equal to 200 percent’’
and inserting ‘‘$20,000 or an amount equal to 300
percent’’.
(b) EQUITABLE REMEDIES.—Section 309(a)(5)(A) of
the Federal Election Campaign Act of 1971 (2 U.S.C.
437g(a)(5)) is amended by striking the period at the end
and inserting ‘‘, and may include equitable remedies or
penalties, including disgorgement of funds to the Treasury
or community service requirements (including require-
ments to participate in public education programs).’’.
(c) AUTOMATIC PENALTY FOR LATE FILING.—Sec-
tion 309(a) of the Federal Election Campaign Act of 1971
(2 U.S.C. 437g(a)) is amended—
(1) by adding at the end the following:
‘‘(13) PENALTY FOR LATE FILING.—
‘‘(A) IN GENERAL.—
‘‘(i) 
MONETARY
PENALTIES.—The
Commission shall establish a schedule of
mandatory monetary penalties that shall
be imposed by the Commission for failure
to meet a time requirement for filing under
section 304.
‘‘(ii) REQUIRED FILING.—In addition
to imposing a penalty, the Commission
may require a report that has not been
filed within the time requirements of sec-
tion 304 to be filed by a specific date.
‘‘(iii) PROCEDURE.—A penalty or fil-
ing requirement imposed under this para-
graph shall not be subject to paragraph
(1), (2), (3), (4), (5), or (12).
‘‘(B) FILING AN EXCEPTION.—
‘‘(i) TIME TO FILE.—A political com-
mittee shall have 30 days after the imposi-
tion of a penalty or filing requirement by
the Commission under this paragraph in
which to file an exception with the Com-
mission.
‘‘(ii) TIME
FOR
COMMISSION
TO
RULE.—Within 30 days after receiving an
exception, the Commission shall make a
determination that is a final agency action
subject to exclusive review by the United
States Court of Appeals for the District of
Columbia Circuit under section 706 of title
5, United States Code, upon petition filed
in that court by the political committee or
treasurer that is the subject of the agency
action, if the petition is filed within 30
days after the date of the Commission ac-
tion for which review is sought.’’;
(2) in paragraph (5)(D)—
(A) by inserting after the first sentence the
following: ‘‘In any case in which a penalty or
filing requirement imposed on a political com-
mittee or treasurer under paragraph (13) has
not been satisfied, the Commission may insti-
tute a civil action for enforcement under para-
graph (6)(A).’’; and
(B) by inserting before the period at the
end of the last sentence the following: ‘‘or has
failed to pay a penalty or meet a filing require-
ment imposed under paragraph (13)’’; and
(3) in paragraph (6)(A), by striking ‘‘paragraph
(4)(A)’’ and inserting ‘‘paragraph (4)(A) or (13)’’.
SEC. 506. STRENGTHENING FOREIGN MONEY BAN.
Section 319 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441e) is amended—
(1) by striking the heading and inserting the
following: ‘‘CONTRIBUTIONS
AND
DONATIONS
BY
FOREIGN NATIONALS’’; and
(2) by striking subsection (a) and inserting the
following:
‘‘(a) PROHIBITION.—It shall be unlawful for—
‘‘(1) a foreign national, directly or indirectly, to
make—
‘‘(A) a donation of money or other thing of
value, or to promise expressly or impliedly to
make a donation, in connection with a Federal,
State, or local election to a political committee
or a candidate for Federal office; or
‘‘(ii) a contribution or donation to a
committee of a political party; or
‘‘(B) for a person to solicit, accept, or re-
ceive such contribution or donation from a for-
eign national.’’.
SEC. 507. PROHIBITION OF CONTRIBUTIONS BY MINORS.
Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) (as amended by sections 101
and 401) is amended by adding at the end the following:
‘‘SEC. 325. PROHIBITION OF CONTRIBUTIONS BY MINORS.
An individual who is 17 years old or younger shall
not make a contribution to a candidate or a contribution
or donation to a committee of a political party.’’.
SEC. 508. EXPEDITED PROCEDURES.
(a) IN GENERAL.—Section 309(a) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 437g(a)) (as
amended by section 505(c)) is amended by adding at the
end the following:
‘‘(14)(A) If the complaint in a proceeding was
filed within 60 days preceding the date of a general
election, the Commission may take action described
in this subparagraph.
‘‘(B) If the Commission determines, on the
basis of facts alleged in the complaint and other
facts available to the Commission, that there is clear
and convincing evidence that a violation of this Act
has occurred, is occurring, or is about to occur, the
Commission may order expedited proceedings, short-
ening the time periods for proceedings under para-
graphs (1), (2), (3), and (4) as necessary to allow
the matter to be resolved in sufficient time before
the election to avoid harm or prejudice to the inter-
ests of the parties.
‘‘(C) If the Commission determines, on the
basis of facts alleged in the complaint and other
facts available to the Commission, that the com-
plaint is clearly without merit, the Commission
may—
‘‘(i) order expedited proceedings, shorten-
ing the time periods for proceedings under
paragraphs (1), (2), (3), and (4) as necessary
to allow the matter to be resolved in sufficient
time before the election to avoid harm or preju-
dice to the interests of the parties; or
‘‘(ii) if the Commission determines that
there is insufficient time to conduct proceedings
before the election, summarily dismiss the com-
plaint.’’.
(b) REFERRAL TO ATTORNEY GENERAL.—Section
309(a)(5) of the Federal Election Campaign Act of 1971
(2 U.S.C. 437g(a)(5)) is amended by striking subpara-
graph (C) and inserting the following:
‘‘(C) The Commission may at any time, by an affirm-
ative vote of at least 4 of its members, refer a possible
violation of this Act or chapter 95 or 96 of title 26, United
States Code, to the Attorney General of the United States,
without regard to any limitation set forth in this section.’’.
SEC. 509. INITIATION OF ENFORCEMENT PROCEEDING.
Section 309(a)(2) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 437g(a)(2)) is amended by striking
‘‘reason to believe that’’ and inserting ‘‘reason to inves-
tigate whether’’.
SEC. 510. LIMITATIONS ON POLITICAL ACTIVITY BY TAX-EX-
EMPT ORGANIZATIONS.
(a) TAX-EXEMPT ORGANIZATIONS.—Section 501 of
the Internal Revenue Code of 1986 (relating to exemption
from tax on corporations, certain trusts, etc.) is amend-
ed—
(1) by redesignating subsection (o) as sub-
section (p); and
(2) by inserting after subsection (n) the follow-
ing new subsection:
‘‘(o) SPECIAL RULES FOR ORGANIZATIONS EXEMPT
UNDER PARAGRAPH (3) OR (4) OF SUBSECTION (c).—
‘‘(1) IN GENERAL.—An organization described
in paragraph (3) or (4) of subsection (c) shall be de-
nied exemption from taxation under subsection (a) if
such organization—
‘‘(A) solicits or accepts a contribution (as
defined in section 271(b)(2)) from a committee
of a political party or an authorized committee
of a candidate (as defined in section 301 of the
Federal Election Campaign Act of 1971 (2
U.S.C. 431)),
‘‘(B) makes or directs a contribution to a
committee of a political party or an authorized
committee of a candidate,
‘‘(C) makes a disbursement for electioneer-
ing advertising (as defined in paragraph (2)),
except to the extent that—
‘‘(i) the disbursement constitutes an
independent expenditure (as defined in sec-
tion 301(17) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431(17)), or
‘‘(ii) the advertising is—
‘‘(I) 
described 
in 
paragraph
(2)(B)(i)(II),
‘‘(II) otherwise permitted by law,
and
‘‘(III) made more than—
‘‘(aa) 60 days before the
date of a general, special, or run-
off election in which the identi-
fied candidates are seeking office,
or
‘‘(bb) 30 days before the
date of a primary or preference
election or a convention or cau-
cus of a political party that has
authority to nominate a can-
didate for the office for which the
identified candidates are seeking
election, or
‘‘(D) participates in a coordinated dis-
bursement.
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) COORDINATED DISBURSEMENT.—
‘‘(i) IN GENERAL.—The term ‘coordi-
nated disbursement’ means a purchase,
payment, distribution, loan, advance, de-
posit, or gift of money or anything of
value, made in connection with any broad-
casting, newspaper, magazine, billboard,
direct mail, phone bank, widely distributed
electronic mail, or similar type of general
public communication or advertising by a
person (who is not a candidate or a can-
didate’s authorized committee) in coopera-
tion, consultation, or concert with, or at
the request or suggestion of, a candidate,
a member of the candidate’s immediate
family (as defined in section 9004(e)), the
candidate’s authorized committees, or a
committee of a political party.
‘‘(ii) EXCEPTION.—The term ‘coordi-
nated disbursement’ does not include a dis-
bursement for a bona fide newscast, news
interview, news documentary (if the ap-
pearance of the candidate is incidental to
the presentation of the subject or subjects
covered by the news documentary), edi-
torial, or on-the-spot coverage of bona fide
news events.
‘‘(B) ELECTIONEERING ADVERTISING.—
‘‘(i) IN
GENERAL.—The term ‘elec-
tioneering advertising’ means a commu-
nication—
‘‘(I) containing a phrase such as
‘vote for’, ‘re-elect’, ‘support’, ‘cast
your ballot for’, ‘(name of individual)
for President’, ‘(name of individual) in
(calendar year)’, ‘vote against’, ‘de-
feat’, ‘reject’, or a campaign slogan or
words that in context can have no rea-
sonable meaning other than to rec-
ommend the election or defeat of 1 or
more clearly identified candidates
such as ‘(name of candidate)’s the
One’ or ‘(name of candidate’); or
‘‘(II) referring to 1 or more
clearly identified candidates in a com-
munication that is widely dissemi-
nated to the electorate for the election
in which the identified candidates are
seeking office through a broadcasting
station, newspaper, magazine, outdoor
advertising facility, direct mailing, or
any other type of general public com-
munication.
‘‘(ii) VOTING
RECORD
AND
VOTING
GUIDE EXCEPTION.—The term ‘electioneer-
ing advertising’ does not include a printed
communication that—
‘‘(I) presents information in an
educational manner solely about the
voting record or position on a cam-
paign issue of 2 or more individuals;
‘‘(II) is not made in coordination
with an individual, political party, or
agent of the individual or party;
‘‘(III) in the case of a voter guide
based on a questionnaire, provides
each individual seeking a particular
seat or office an equal opportunity to
respond to the questionnaire and have
the individual’s responses incorporated
into the voter guide;
‘‘(IV) does not present an indi-
vidual with greater prominence than
any other individual; and
‘‘(V) does not contain a phrase
such as ‘vote for’, ‘re-elect’, ‘support’,
‘cast your ballot for’, ‘(name of indi-
vidual) for President’, ‘(name of indi-
vidual) in 1997’, ‘vote against’, ‘de-
feat’, or ‘reject’, or a campaign slogan
or words that in context can have no
reasonable meaning other than to
urge the election or defeat of 1 or
more clearly identified individuals.’’.
(b) REGULATIONS.—The Federal Election Commis-
sion and the Commissioner of the Internal Revenue Code
of 1986 shall—
(1) promulgate regulations as necessary to en-
force this section; and
(2) in the promulgation of regulations under
paragraph (1), provide an exception to any provision
that the Commission or Commissioner determines
necessary to serve the public interest.
SEC. 511. DEFINITIONS OF POLITICAL COMMITTEE AND PO-
LITICAL ORGANIZATION.
(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—
(1) in subparagraph (B), by striking ‘‘or’’ at
the end;
(2) in subparagraph (C), by striking the period
at the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(D) a political organization (as defined in
section 527(e)(1) of the Internal Revenue Code
of 1986 and subject to section 527 of such
Code) unless—
‘‘(i) the activities of the organization
are for the primary purpose of influencing
or attempting to influence the selection,
nomination, election, or appointment of
any individual or individuals to any State
or local public office or office in a State or
local political organization; and
‘‘(ii) the organization does not engage
in any activity aimed at influencing or at-
tempting to influence the selection, elec-
tion, or appointment of any individual to
any Federal office or the election of Presi-
dential or Vice Presidential electors.’’.
(b) DEFINITION
OF POLITICAL ORGANIZATION.—
Paragraph (e)(1) of section 527 of the Internal Revenue
Code of 1986 (relating to political organizations) is
amended by striking ‘‘incorporated) organized and oper-
ated’’ and all that follows through the period and inserting
‘‘incorporated)—
‘‘(A) organized and operated primarily for
the purpose of directly or indirectly accepting
contributions or making expenditures, or both,
for an exempt function, and
‘‘(B) that is a political committee described
in section 301(4) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431(4)) except to
the extent that—
‘‘(i) the activities of the organization
are for the primary purpose of influencing
or attempting to influence the selection,
nomination, election, or appointment of
any individual or individuals to any State
or local public office or office in a State or
local political organization; and
‘‘(ii) the organization does not engage
in any activity aimed at influencing or at-
tempting to influence the selection, elec-
tion, or appointment of any individual to
any Federal office or the election of Presi-
dential or Vice Presidential electors.’’.
(c) REGULATIONS.—The Federal Election Commis-
sion and the Commissioner of the Internal Revenue Code
of 1986 shall—
(1) promulgate regulations as necessary to en-
force this section; and
(2) in the promulgation of regulations under
paragraph (1), provide an exception to any provision
that the Commission or Commissioner determines
necessary to serve the public interest.
TITLE VI—SEVERABILITY; CON-
STITUTIONALITY; EFFECTIVE
DATE; REGULATIONS
SEC. 601. SEVERABILITY.
If any provision of this Act or amendment made by
this Act, or the application of a provision or amendment
to any person or circumstance, is held to be unconstitu-
tional, the remainder of this Act and amendments made
by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be
affected by the holding.
SEC. 602. REVIEW OF CONSTITUTIONAL ISSUES.
An appeal may be taken directly to the Supreme
Court of the United States from any final judgment, de-
cree, or order issued by any court ruling on the constitu-
tionality of any provision of this Act or amendment made
by this Act.
SEC. 603. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and
the amendments made by this Act take effect January 1,
1999.
SEC. 604. REGULATIONS.
The Federal Election Commission shall prescribe any
regulations required to carry out this Act and the amend-
ments made by this Act not later than 270 days after the
effective date of this Act.
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