(i) INITIAL TAXES.—Paragraph (1) of
section 4955(a) of such Code is amended
by inserting ‘‘or section 501(c)(5) organi-
zation’’ after ‘‘section 501(c)(3) organiza-
tion’’.
(ii) POLITICAL EXPENDITURE.—Para-
graph (1) of section 4955(d) of such Code
is amended by inserting ‘‘or section
501(c)(5) 
organization’’ 
after 
‘‘section
501(c)(3) organization’’.
(B) DEFINITION.—Subsection (f) of sec-
tion 4955 of such Code is amended by adding
at the end the following new paragraph:
‘‘(5) SECTION
501(c)(5)
ORGANIZATION.—The
term ‘section 501(c)(5) organization’ means any or-
ganization which (without regard to any political ex-
penditure) would be described in section 501(c)(5)
and exempt from taxation under section 501(a).’’
(5) TERMINATION ASSESSMENTS IN CASE OF
FLAGRANT POLITICAL EXPENDITURES.—
(A) IN
GENERAL.—Subparagraph (A) of
section 6852(a)(1) of such Code is amended by
inserting ‘‘or section 501(c)(5) organization’’
after ‘‘section 501(c)(3) organization’’.
(B) DEFINITION.—Paragraph (1) of sec-
tion 6852(b) of such Code is amended by in-
serting ‘‘ ‘section 501(c)(5) organization’,’’ after
‘‘ ‘section 501(c)(3) organization’,’’.
(6) ACTION TO ENJOIN FLAGRANT POLITICAL
EXPENDITURES.—
(A) IN GENERAL.—Paragraph (1) of sec-
tion 7409(a) of such Code is amended in the
first sentence—
(i) by inserting ‘‘or section 501(c)(5)
organization’’ after ‘‘section 501(c)(3) or-
ganization’’, and
(ii) by inserting ‘‘or section 501(c)(5),
respectively’’ after ‘‘specified in section
501(c)(3)’’.
(B) INJUNCTIVE RELIEF.—Paragraph (2)
of section 7409(b) of such Code is amended by
inserting ‘‘or section 501(c)(5) (as the case may
be)’’ after ‘‘section 501(c)(3)’’.
(C) DEFINITION.—Subsection (c) of sec-
tion 7409 of such Code is amended by inserting
‘‘, ‘section 501(c)(5) organization’,’’ after ‘‘ ‘sec-
tion 501(c)(3) organization’ ’’.
(7) DECLARATORY JUDGMENTS RELATING TO
501(c)(5) STATUS.—Subparagraph (A) of section
7428(a)(1) of such Code is amended by inserting
‘‘or section 501(c)(5)’’ after ‘‘section 501(c)(3)’’.
(c) CLERICAL AMENDMENTS.—
(1) The heading of subsection (h) of section
501 of such Code is amended to read as follows:
‘‘(h) EXPENDITURES
BY PUBLIC CHARITIES
AND
LABOR, AGRICULTURAL, OR HORTICULTURAL ORGANIZA-
TIONS TO INFLUENCE LEGISLATION.—’’
(2) The heading of section 504 of such Code is
amended to read as follows:
‘‘SEC. 504. STATUS AFTER ORGANIZATION CEASES TO
QUALIFY FOR EXEMPTION UNDER SECTION
501(c)(3) or 501(c)(5) BECAUSE OF SUBSTAN-
TIAL LOBBYING OR BECAUSE OF POLITICAL
ACTIVITIES.’’
(3) The table of sections for part I of sub-
chapter F of chapter 1 of such Code is amended by
striking the item relating to section 504 and insert-
ing the following new item:
‘‘Sec. 504. Status after organization ceases to qualify for exemp-
tion under section 501(c)(3) or 501(c)(5) because
of substantial lobbying or because of political activi-
ties.’’
(4) The heading of section 4955 of such Code
is amended to read as follows:
‘‘SEC. 4955. TAXES ON POLITICAL EXPENDITURES OF SEC-
TION 501(c)(3) AND 501(c)(5) ORGANIZATIONS.’’
(5) The table of sections for subchapter C of
chapter 42 of such Code is amended by striking the
item relating to section 4955 and inserting the fol-
lowing new item:
‘‘Sec. 4955. Taxes on political expenditures of section 501(c)(3)
and 501(c)(5) organizations.’’
(6) The heading of subchapter C of chapter 42
of such Code is amended to read as follows:
‘‘Subchapter 
C—Political 
Expenditures 
of
Section 501(c)(3) and 501(c)(5) Organiza-
tions’’.
(7) The table of subchapters for chapter 42 of
such Code is amended by striking the item relating
to subchapter C and inserting the following new
item:
‘‘Subchapter C. Political expenditures of section 501(c)(3) and
501(c)(5) organizations.’’
(8) The heading of section 6852 of such Code
is amended to read as follows:
‘‘SEC. 6852. TERMINATION ASSESSMENTS IN CASE OF FLA-
GRANT POLITICAL EXPENDITURES OF SEC-
TION 501(c)(3) OR 501(c)(5) ORGANIZATIONS.’’
(9) The table of sections for part I of sub-
chapter A of chapter 70 of such Code is amended by
striking the item relating to section 6852 and insert-
ing the following new item:
‘‘Sec. 6852. Termination assessments in case of flagrant political
expenditures of section 501(c)(3) or 501(c)(5) orga-
nizations.’’
(10) The heading of section 7409 of such Code
is amended to read as follows:
‘‘SEC. 7409. ACTION TO ENJOIN FLAGRANT POLITICAL EX-
PENDITURES 
OF 
SECTION 
501(c)(3) 
OR
501(c)(5) ORGANIZATIONS.’’
(11) The table of sections for subchapter A of
chapter 76 of such Code is amended by striking the
item relating to section 7409 and inserting the fol-
lowing new item:
‘‘Sec. 7409. Action to enjoin flagrant political expenditures of sec-
tion 501(c)(3) or 501(c)(5) organizations.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning in cal-
endar years beginning after the date of the enactment of
this Act.
SEC. 6. VOLUNTARY LIMITATIONS ON EXPENDITURES IN
HOUSE OF REPRESENTATIVES ELECTIONS.
The Federal Election Campaign Act of 1971 (2
U.S.C. 431 et seq.) is amended by adding at the end the
following new title:
‘‘TITLE V—VOLUNTARY LIMITA-
TIONS ON EXPENDITURES IN
HOUSE 
OF 
REPRESENTA-
TIVES ELECTIONS
‘‘SEC. 501. LIMITATION ON EXPENDITURES BY ELIGIBLE
HOUSE OF REPRESENTATIVES CANDIDATE.
‘‘An eligible House of Representatives candidate may
not, with respect to an election, make expenditures total-
ing more than $500,000.
‘‘SEC. 502. LIMITATION ON USE OF PERSONAL FUNDS BY
ELIGIBLE HOUSE OF REPRESENTATIVES CAN-
DIDATE.
‘‘An eligible House of Representatives candidate may
not, with respect to an election, use more than $25,000
from the personal funds of the candidate.
‘‘SEC. 503. LESSENING OF IMPACT OF USE OF LARGE
AMOUNTS OF PERSONAL FUNDS BY OPPO-
NENTS OF ELIGIBLE HOUSE OF REPRESENTA-
TIVES CANDIDATES.
‘‘If any opponent of an eligible House of Representa-
tives candidate uses more than $50,000 from the personal
funds of such opponent with respect to an election, the
limitation under section 315(a)(1)(A) shall not apply to
contributions to the eligible House of Representatives can-
didate by individuals who are residents of the State in
which the congressional district involved is located.
‘‘SEC. 504. INDEXING.
‘‘The amounts specified in sections 501 and 502 shall
be adjusted in the same manner as provided in section
315(c), except that the base period shall be calendar year
1995.
‘‘SEC. 505. DEFINITIONS.
‘‘As used in this title the term ‘eligible House of Rep-
resentatives candidate’ means a candidate for the office
of Representative in, or Delegate or Resident Commis-
sioner to, the Congress, who, as determined by the Com-
mission, complies with sections 501 and 502.’’.
SEC. 7. BAN ON SOFT MONEY.
(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 new section:
‘‘LIMITATIONS AND REPORTING REQUIREMENTS FOR
AMOUNTS PAID FOR MIXED POLITICAL ACTIVITIES
‘‘SEC. 323. (a) Any payment by the national commit-
tee of a political party or a State committee of a political
party, or by a corporation or labor organization, for a
mixed political activity—
‘‘(1) shall be subject to limitation and reporting
under this Act as if such payment were an expendi-
ture; and
‘‘(2) may be paid only from an account that is
subject to the requirements of this Act.
‘‘(b) As used in this section, the term ‘mixed political
activity’ means, with respect to a payment by the national
committee of a political party or a State committee of a
political party, an activity, such as a voter registration
program, a get-out-the-vote drive, or general political ad-
vertising, that is both (1) for the purpose of influencing
an election for Federal office, and (2) for any purpose un-
related to influencing an election for Federal office.’’.
(b) REPEAL OF BUILDING FUND EXCEPTION TO THE
DEFINITION OF THE TERM ‘‘CONTRIBUTION’’.—Section
301(8)(B) of the Federal Election Campaign Act of 1971
(2 U.S.C. 431(8)(B)) is amended—
(1) by striking out clause (viii); and
(2) by redesignating clauses (ix) through (xiv)
as clauses (viii) through (xiii), respectively.
SEC. 8. BROADCAST RATES AND PREEMPTION.
(a) BROADCAST RATES.—Section 315(b) of the Com-
munications Act of 1934 (47 U.S.C. 315(b)) is amended—
(1) by striking ‘‘(b) The changes’’ and inserting
‘‘(b)(1) The changes’’;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) in paragraph (1)(A), as redesignated—
(A) by striking ‘‘forty-five’’ and inserting
‘‘30’’; and
(B) by striking ‘‘lowest unit charge of the
station for the same class and amount of time
for the same period’’ and inserting ‘‘lowest
charge of the station for the same amount of
time for the same period on the same date’’;
and
(4) by adding at the end the following new
paragraph:
‘‘(2) In the case of an eligible House of Representa-
tives candidate (as defined in section 505 of the Federal
Election Campaign Act of 1971), the charges for the use
of a broadcasting station during the 30-day period and
60-day period referred to in paragraph (1)(A) shall not
exceed 50 percent of the lowest charge described in para-
graph (1)(A).’’.
(b) PREEMPTION; ACCESS.—Section 315 of such Act
(47 U.S.C. 315), as amended by subsection (a) of this sec-
tion, is further amended—
(1) by redesignating subsections (d) and (e) as
redesignated, as subsections (e) and (f), respectively;
and
(2) by inserting immediately after subsection
(c) the following subsection:
‘‘(d)(1) Except as provided in paragraph (2), a li-
censee shall not preempt the use, during any period speci-
fied in subsection (b)(1)(A), of a broadcasting station by
an eligible House of Representatives candidate who has
purchased and paid for such use pursuant to subsection
(b)(2).
‘‘(2) If a program to be broadcast by a broadcasting
station is preempted because of circumstances beyond the
control of the broadcasting station, any candidate adver-
tising spot scheduled to be broadcast during that program
may also be preempted.’’.
(c) REVOCATION OF LICENSE FOR FAILURE TO PER-
MIT ACCESS.—Section 312(a)(7) of the Communications
Act of 1934 (47 U.S.C. 312(a)(7)) is amended—
(1) by striking ‘‘or repeated’’;
(2) by inserting ‘‘or cable system’’ after ‘‘broad-
casting station’’; and
(3) by striking ‘‘his candidacy’’ and inserting
‘‘the candidacy of such person, under the same
terms, conditions, and business practices as apply to
its most favored advertiser’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to the general elections occurring
after December 31, 1995 (and the election cycles relating
thereto).