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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);
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‘‘(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.
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‘‘(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 Commissioner of the Internal Revenue Service for de-
termination of tax-exemption under such section).
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‘‘(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.’’.
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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’’.
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ing the date of an election of the candidate
and that appears in the State in which the
election is occurring, except that with re-
spect to a candidate for the office of Vice
President 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 one
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 communication which is in printed
form or posted on the Internet that—
‘‘(i) presents information solely about
the voting record or position on a cam-
paign issue of one or more candidates: Pro-
vided, however, That the sponsor of the
voting record or voting guide may state its
agreement or disagreement with the record
or position of the candidate: Provided fur-
ther, That the voting record or voting
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guide when taken as a whole does not ex-
press unmistakable and unambiguous sup-
port for or opposition to one or more clear-
ly identified candidates;
‘‘(ii) 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 can-
didate or a candidate’s agent: Provided,
That nothing herein shall prevent the
sponsor of the voting guide from directing
questions in writing to candidates about
their position on issues for purposes of
preparing a voter guide, and the candidate
from responding in writing to such ques-
tions; and
‘‘(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 one or more clear-
ly identified candidates.’’.
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(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. EXPRESS ADVOCACY DETERMINED WITHOUT RE-
GARD TO BACKGROUND MUSIC.
Section 301 (2 U.S.C. 431) is amended by adding
at the end the following new paragraph:
‘‘(20) In determining whether any communica-
tion by television or radio broadcast constitutes ex-
press advocacy for purposes of this Act, there shall
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not be taken into account any background music not
including lyrics used in such broadcast.’’.
SEC. 203. 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)—
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(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. 204. REPORTING REQUIREMENTS FOR CERTAIN INDE-
PENDENT EXPENDITURES.
Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434) is amended—
(1) in subsection (c)(2), by striking the undes-
ignated matter after subparagraph (C);
(2) by redesignating paragraph (3) of sub-
section (c) as subsection (f); and
(3) by inserting after subsection (c)(2) (as
amended 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
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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-