broadcast relates and state whether the message to
be broadcast is intended to be made in support of
or in opposition to each such candidate; and
‘‘(iii) provide the broadcast licensee a copy of
the report described in paragraph (3).
‘‘(B) For purposes of this paragraph, the term
‘broadcast’ includes any cablecast.
‘‘(C) A licensee who is informed as described in sub-
paragraph (A) shall—
‘‘(i) notify each such candidate described in
subparagraph (A)(ii) of the proposed making of the
independent expenditure; and
‘‘(ii) allow any such candidate (other than a
candidate for whose benefit the independent expendi-
ture is made) to purchase the same amount of
broadcast time immediately after the broadcast time
paid for by the independent expenditure, at the cost
specified in section 315(b) of the Communications
Act of 1934, as amended by section 102 of the Bi-
partisan Campaign Reform Act of 1997.’’.
TITLE III—ENFORCEMENT AND
DISCLOSURE
SEC. 301. 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)’’ before ‘‘The Commis-
sion’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) Notwithstanding paragraph (1), the Commission
may conduct random audits and investigations to ensure
voluntary compliance with this Act. The subjects of such
audits and investigations shall be selected on the basis of
criteria established by vote of at least 4 members of the
Commission to ensure impartiality in the selection process.
This paragraph does not apply to an authorized committee
of a candidate for President or Vice President subject to
audit under chapter 95 or 96 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 out ‘‘6 months’’ and inserting in
lieu thereof ‘‘12 months’’.
SEC. 302. CHANGE IN CERTAIN REPORTING FROM A CAL-
ENDAR YEAR BASIS TO AN ELECTION CYCLE
BASIS.
(a) IN GENERAL.—Paragraphs (2), (3), (4), (6), and
(7) of section 304(b) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 434(b) (2)–(7)) are amended by
inserting ‘‘(election cycle, in the case of an authorized
committee of a candidate for Federal office)’’ after ‘‘cal-
endar year’’ each place it appears.
(b) ELECTION CYCLE DEFINED.—Section 301 of
such Act (2 U.S.C. 431), as amended by section 251(b),
is amended by adding at the end the following:
‘‘(21) The term ‘election cycle’ means—
‘‘(A) in the case of a candidate or the au-
thorized committees of a candidate, the period
beginning on the day after the date of the most
recent general election for the specific office or
seat that the candidate seeks and ending on the
date of the next general election for that office
or seat; and
‘‘(B) in the case of all other persons, the
period beginning on the first day following the
date of the last general election and ending on
the date of the next general election.’’.
SEC. 303. DISCLOSURE OF PERSONAL AND CONSULTING
SERVICES.
(a) REPORTING BY POLITICAL COMMITTEES.—Sec-
tion 304(b)(5)(A) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434(b)(5)(A)) is amended by adding
before the semicolon at the end the following: ‘‘, except
that if a person to whom an expenditure is made by a
candidate or the candidate’s authorized committees is
merely providing personal or consulting services and is in
turn making expenditures to other persons (not including
its owners or employees) who provide goods or services to
the candidate or the candidate’s authorized committees,
the name and address of such other person, together with
the date, amount, and purpose of such expenditure shall
also be disclosed’’.
(b) RECORDKEEPING AND REPORTING BY PERSONS
TO WHOM EXPENDITURES ARE PASSED THROUGH.—
Section 302 of the Federal Election Campaign Act of
1971 (2 U.S.C. 432) is amended by adding at the end
the following new subsection:
‘‘(j) The person described in section 304(b)(5)(A)
who is providing personal or consulting services and who
is in turn making expenditures to other persons (not in-
cluding employees) for goods or services provided to a can-
didate shall maintain records of and shall provide to a po-
litical committee the information necessary to enable the
political committee to report the information described in
section 304(b)(5)(A).’’.
SEC. 304. INDEPENDENT LITIGATION AUTHORITY.
Section 306(f)(4) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 437c(f)(4)) is amended to read as
follows:
‘‘(4)(A) Notwithstanding the provisions of para-
graph (2) or of any other provision of law, the Com-
mission is authorized to appear on its own behalf in
any action related to the exercise of its statutory du-
ties or powers in any court as either a party or as
amicus curiae, either—
‘‘(i) by attorneys employed in its office, or
‘‘(ii) by counsel whom it may appoint, on
a temporary basis as may be necessary for such
purpose, without regard to the provisions of
title 5, United States Code, governing appoint-
ments in the competitive service, and whose
compensation it may fix without regard to the
provisions of chapter 51 and subchapter III of
chapter 53 of such title, and whose compensa-
tion shall be paid out of any funds otherwise
available to pay the compensation of employees
of the Commission.
‘‘(B) The authority granted under subpara-
graph (A) includes the power to appeal from, and
petition the Supreme Court for certiorari to review,
judgments or decrees entered with respect to actions
in which the Commission appears pursuant to the
authority provided in this section.’’.
SEC. 305. TERM LIMITS FOR FEDERAL ELECTION COMMIS-
SION.
Section 306 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 437c(a)(2)(A)) is amended by striking
‘‘terms’’ and inserting in lieu thereof ‘‘no more than one
term’’.
SEC. 306. AUTHORITY TO SEEK INJUNCTION.
Section 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 new
paragraph:
‘‘(13)(A) If, at any time in a proceeding described
in paragraph (1), (2), (3), or (4), the Commission believes
that—
‘‘(i) there is a substantial likelihood that a vio-
lation of this Act is occurring or is about to occur;
‘‘(ii) the failure to act expeditiously will result
in irreparable harm to a party affected by the poten-
tial violation;
‘‘(iii) expeditious action will not cause undue
harm or prejudice to the interests of others; and
‘‘(iv) the public interest would be best served by
the issuance of an injunction,
the Commission may initiate a civil action for a temporary
restraining order or a temporary injunction pending the
outcome of the proceedings described in paragraphs (1),
(2), (3), and (4).
‘‘(B) An action under subparagraph (A) shall be
brought in the United States district court for the district
in which the defendant resides, transacts business, or may
be found, or in which the violation is occurring, has oc-
curred, or is about to occur.’’;
(2) in paragraph (7), by striking ‘‘(5) or (6)’’
and inserting ‘‘(5), (6), or (13)’’; and
(3) in paragraph (11), by striking ‘‘(6)’’ and in-
serting ‘‘(6) or (13)’’.
SEC. 307. EXPEDITED PROCEDURES.
Section 309(a) of Federal Election Campaign Act of
1971 (2 U.S.C. 437g(a)), as amended by section 306, is
further amended by adding at the end the following new
paragraph:
‘‘(14)(A) If the complaint in a proceeding was filed
within 60 days immediately preceding a general election,
the Commission may take action described in this sub-
paragraph.
‘‘(B) If the Commission determines, on the basis of
facts alleged in the complaint and other facts available to
it, that there is clear and convincing evidence that a viola-
tion of this Act has occurred, is occurring, or is about to
occur and it appears that the requirements for relief stat-
ed in paragraph (13)(A) (ii), (iii), and (iv) are met, the
Commission may—
‘‘(i) order expedited proceedings, shortening 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 prejudice to the interests of the par-
ties; or
‘‘(ii) if the Commission determines that there is
insufficient time to conduct proceedings before the
election, immediately seek relief under paragraph
(13)(A).
‘‘(C) If the Commission determines, on the basis of
facts alleged in the complaint and other facts available to
it, that the complaint is clearly without merit, the Com-
mission may—
‘‘(i) order expedited proceedings, shortening 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 prejudice 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 complaint.’’.
SEC. 308. INCREASE IN PENALTY FOR KNOWING AND WILL-
FUL VIOLATIONS.
(a) VIOLATION
UNDER
CONCILIATION
AGREE-
MENT.—Section 308(a)(5)(B) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 437g(a)(5)(B)) is
amended by striking ‘‘the greater of $10,000 or an
amount equal to 200 percent’’ and inserting ‘‘the greater
of $15,000 or an amount equal to 300 percent’’.
(b) VIOLATION
UNDER
CIVIL
ACTION.—Section
308(a)(6)(B) of such Act (2 U.S.C. 437g(a)(6)(C)) is
amended by striking ‘‘the greater of $10,000 or an
amount equal to 200 percent’’ and inserting ‘‘the greater
of $15,000 or an amount equal to 300 percent’’.
SEC. 309. MANDATORY ELECTRONIC FILING AND PRESER-
VATION OF FEDERAL ELECTION COMMISSION
REPORTS.
(a) IN GENERAL.—Subsection 304(a)(11)(A) of the
Federal Election Campaign Act of 1971 (2 U.S.C.
434(a)(11)(A)) is amended—
(1) by striking out ‘‘permit reports required by’’
and inserting in lieu thereof ‘‘require reports
under’’; and
(2) by adding at the end the following new sen-
tences: ‘‘With respect to reports of amounts of con-
tributions, amounts of expenditures, or other dollar
amounts, the Commission may provide for excep-
tions to the requirement of the preceding sentence in
the case of small amounts, the levels of which the
Commission shall prescribe by regulation. Such ex-
ceptions shall permit filing and preservation by
means of electronic format or method by persons to
whom the exceptions apply.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to reports for peri-
ods beginning after the expiration of the 60-day period
which begins on the date of the enactment of this Act.
TITLE IV—MISCELLANEOUS
PROVISIONS
SEC. 401. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR
PERSONAL PURPOSES.
(a) RESTRICTIONS ON USE OF CAMPAIGN FUNDS.—
Title III of the Federal Election Campaign Act of 1971
(2 U.S.C. 431 et seq.), as amended by sections 202 and
211, is further amended by adding at the end the following
new section:
‘‘RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR
PERSONAL PURPOSES
‘‘SEC. 325. (a) IN GENERAL.—An individual who re-
ceives contributions as a candidate for Federal office—
‘‘(1) shall use such contributions only for legiti-
mate and verifiable campaign expenses; and
‘‘(2) shall not use such contributions for any in-
herently personal purpose.
‘‘(b) DEFINITIONS.—As used in this subsection—
‘‘(1) the term ‘campaign expenses’ means ex-
penses attributable solely to bona fide campaign pur-
poses; and
‘‘(2) the term ‘inherently personal purpose’
means a purpose that, by its nature, confers a per-
sonal benefit, including a home mortgage, rent, or
utility payment, clothing purchase, noncampaign
automobile expense, country club membership, vaca-
tion, or trip of a noncampaign nature, household
food items, tuition payments, admission to a sport-
ing event, concert, theater, or other form of enter-
tainment not associated with a campaign, dues, fees,
or contributions to a health club or recreational fa-
cility, and any other inherently personal living ex-
pense as determined under the regulations promul-
gated pursuant to section 301(b) of the Bipartisan
Clean Congress Act of 1997.’’.
(b) REGULATIONS.—Not later than 90 days after the
date of enactment of this Act, the Federal Election Com-
mission shall promulgate regulations consistent with this
Act to implement subsection (a). Such regulations shall
apply to all contributions possessed by an individual on
the date of enactment of this Act.
SEC. 402. CAMPAIGN ADVERTISING AMENDMENTS.
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, phone
bank or any other type of general public
political advertising, 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 new sub-
sections:
‘‘(c) Any printed communication described in sub-
section (a) shall be—
‘‘(1) of sufficient type size to be clearly read-
able by the recipient of the communication;
‘‘(2) contained in a printed box set apart from
the other contents of the communication; and
‘‘(3) consist of a reasonable degree of color con-
trast between the background and the printed state-
ment.
‘‘(d)(1) Any broadcast or cablecast communication
described in subsection (a)(1) or subsection (a)(2) shall
include, in addition to the requirements of those sub-
sections, an audio statement by the candidate that identi-
fies the candidate and states that the candidate is respon-
sible for the content of the advertisement.
‘‘(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 which—
‘‘(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 subsection (a)(3) shall include, in addition to
the requirements of those subsections, in a clearly spoken
manner, the following statement: ‘
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 organization of the payor).
If broadcast or cablecast by means of television, the state-
ment shall also appear in a clearly readable manner with
a reasonable degree of color contrast between the back-
ground and the printed statement, for a period of at least
4 seconds.’’.
SEC. 403. USE OF CANDIDATES’ NAMES.
Section 302(e)(4) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 432(e)(4)) is amended to read as
follows:
‘‘(4)(A) The name of each authorized committee shall
include the name of the candidate who authorized the com-
mittee under paragraph (1).
‘‘(B) A political committee which is not an authorized
committee may 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 can-
didate in any activity on behalf of such 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. 404. REPORTING REQUIREMENTS.
(a) OPTION TO FILE MONTHLY REPORTS.—Section
304(a)(2) of the Federal Election Campaign Act of 1971
(2 U.S.C. 434(a)(2)) is amended—
(1) in subparagraph (A) by striking ‘‘and’’ at
the end;
(2) in subparagraph (B) by striking the period
at the end and inserting ‘‘; and’’; and
(3) by inserting the following new subparagraph
at the end:
‘‘(C) in lieu of the reports required by subpara-
graphs (A) and (B), the treasurer may file monthly
reports in all calendar years, which shall be filed no
later than the 20th day after the last day of the
month and shall be complete as of the last day of
the month, except that, in lieu of filing the reports
otherwise due in November and December of any
year in which a regularly scheduled general election
is held, a pre-primary election report and a pre-gen-
eral election report shall be filed in accordance with
subparagraph (A)(i), a post-general election report
shall be filed in accordance with subparagraph
(A)(ii), and a year end report shall be filed no later
than January 31 of the following calendar year.’’.
(b) POLITICAL COMMITTEES.—Section 304(a)(4) of
the Federal Election Campaign Act of 1971 (2 U.S.C.
434(a)(4)) is amended in subparagraph (A)(i) by inserting
‘‘, and except that if at any time during the election year
a committee receives contributions in excess of $100,000
or makes disbursements in excess of $100,000, monthly
reports on the 20th day of each month after the month
in which that amount of contributions is first received or
that amount of disbursements is first anticipated to be
made during that year’’ before the semicolon.
(c) INCOMPLETE OR FALSE CONTRIBUTOR INFORMA-
TION.—Section 302(i) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 432(i)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(i)’’;
(2) by striking ‘‘submit’’ and inserting ‘‘re-
port’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) A treasurer shall be considered to have used best
efforts under this section only if—
‘‘(A) all written solicitations include a clear and
conspicuous request for the contributor’s identifica-
tion and inform the contributor of the committee’s
obligation to report the identification in a statement
prescribed by the Commission;
‘‘(B) the treasurer makes at least 1 additional
request for the contributor’s identification for each
contribution received that aggregates in excess of
$200 per calendar year and which does not contain
all of the information required by this Act; and
‘‘(C) the treasurer reports all information in the
committee’s possession regarding contributor identi-
fications.’’.
(d) WAIVER.—Section 304 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434), as amended by
sections 105, 213(a), 213(c), and 221, is further amended
by adding at the end the following new subsection:
‘‘(j) The Commission may relieve any category of po-
litical committees of the obligation to file 1 or more re-
ports required by this section, or may change the due
dates of such reports, if it determines that such action
is consistent with the purposes of this Act. The Commis-
sion may waive requirements to file reports in accordance
with this subsection through a rule of general applicability
or, in a specific case, may waive or extend the due date
of a report by notifying all political committees affected.’’.
SEC. 405. SIMULTANEOUS REGISTRATION OF CANDIDATE
AND 
CANDIDATE’S 
PRINCIPAL 
CAMPAIGN
COMMITTEE.
Section 303(a) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 433(a)) is amended in the first sentence
by striking ‘‘no later than 10 days after designation’’ and
inserting ‘‘on the date of its designation’’.
SEC. 406. INSOLVENT POLITICAL COMMITTEES.
Section 303(d) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 433(d)) is amended by adding at the
end the following new paragraph:
‘‘(3) Proceedings by the Commission under para-
graph (2) constitute the sole means, to the exclusion of
proceeding under title 11, United States Code, by which
a political committee that is determined by the Commis-
sion to be insolvent may compromise its debts, liquidate
its assets, and terminate its existence.’’.
SEC. 407. REGULATIONS RELATING TO USE OF NON-FED-
ERAL MONEY.
Section 306 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 437c) is amended by adding at the end
the following new subsection:
‘‘(g) The Commission shall promulgate regulations to
prohibit devices or arrangements which have the purpose
or effect of undermining or evading the provisions of this
Act restricting the use of non-Federal money to affect
Federal elections.’’.
SEC. 408. BAN ON FRANKING FOR UNSOLICITED MASS
MAILINGS MAILED DURING ELECTION YEAR.
(a) IN GENERAL.—Section 3210(a)(6)(A) of title 39,
United States Code, is amended—
(1) in clause (i), by striking ‘‘fewer than 60
days’’ and all that follows through ‘‘or runoff)’’ and
inserting ‘‘during the year in which the date of any
election occurs’’; and
(2) in clause (ii)(II), by striking ‘‘fewer than 90
days’’ and all that follows through ‘‘or runoff)’’ and
inserting ‘‘during the year in which the date of any
election occurs’’.
(b) ADDITIONAL MAILINGS EXEMPT FROM TREAT-
MENT AS MASS MAILINGS.—Section 3210(a)(6)(E) of title
39, United States Code, is amended—
(1) in clause (i), by striking the semicolon at
the end and inserting the following: ‘‘, together with
a single follow-up to any such direct response, if it
is made before the end of the Congress in which the
direct response was made and if it occurs within 6
weeks after any significant congressional action (as
defined by the House Commission on Congressional
Mailing Standards) on the subject matter involved;’’;
(2) in clause (ii), by striking ‘‘or’’ at the end;
(3) in clause (iii) by striking the period at the
end and inserting ‘‘; or’’; and
(4) by adding at the end the following new
clause:
‘‘(iv) any mailing described in clause (iv) or (v)
of section 6(b)(1)(B) of the Legislative Branch Ap-
propriations Act, 1995, subject to the same restric-
tion as specified in such clause (iv) with respect to
a Member of the Senate.’’.
SEC. 409. INTENT OF CONGRESS.
It is the intent of Congress that any funds realized
by section 409 shall be designated to pay for reduced post-
age rates for eligible House of Representatives candidates
under section 3626(e) of title 39, United States Code (as
amended by section 103).
SEC. 410. SEVERABILITY.
If any provision of this Act, an amendment made by
this Act, or the application of such provision or amend-
ment to any other person or circumstance is held to be
unconstitutional, the remainder of this Act, the amend-
ments made by this Act, and the application of the provi-
sions of such to any other person or circumstance shall
not be affected thereby.
SEC. 411. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.
(a) DIRECT APPEAL TO SUPREME COURT.—An ap-
peal may be taken directly to the Supreme Court of the
United States from any interlocutory order or final judg-
ment, decree, or order issued by any court ruling on the
constitutionality of any provision of this Act or amend-
ment made by this Act.
(b) ACCEPTANCE AND EXPEDITION.—The Supreme
Court shall, if it has not previously ruled on the question
addressed in the ruling below, accept jurisdiction over, ad-
vance on the docket, and expedite the appeal to the great-
est extent possible.
SEC. 412. EFFECTIVE DATE.
Except as otherwise provided in this Act, the amend-
ments made by, and the provisions of, this Act shall take
effect 60 days after the date of the enactment of this Act.
SEC. 413. REGULATIONS.
The Federal Election Commission shall prescribe any
regulations required to carry out this Act not later than
9 months after the effective date of this Act.
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