I
103D CONGRESS
1ST SESSION
H. R. 3470
To amend the Federal Election Campaign Act of 1971 to ban activities
of political action committees in Federal elections, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 8, 1993
Mr. MICHEL (for himself, Mr. GINGRICH, Mr. THOMAS of California, Mr. LIV-
INGSTON, Mr. BAKER of California, Mr. BALLENGER, Mr. BARRETT of
Nebraska, Mr. BEREUTER, Mr. BLUTE, Mr. CALVERT, Mr. CASTLE, Mr.
COLLINS of Georgia, Mr. COX, Mr. DICKEY, Mr. DOOLITTLE, Mr.
EWING, Mr. FRANKS of New Jersey, Mr. GALLEGLY, Mr. GEKAS, Mr.
GOODLING, Mr. GOSS, Mr. GREENWOOD, Mr. HASTERT, Mr. HOKE, Mr.
HORN, Mr. HOUGHTON, Mr. HUTCHINSON, Mr. INGLIS of South Caro-
lina, Mr. KOLBE, Mr. MCCRERY, Mr. MCKEON, Mr. MILLER of Florida,
Mr. MOORHEAD, Mr. OXLEY, Mr. PACKARD, Mr. PORTMAN, Mr. QUINN,
Mr. RAMSTAD, Mr. ROTH, Mr. SAXTON, Mr. SCHIFF, Mr. SHAYS, Mr.
SMITH of Texas, Mr. SMITH of Michigan, Mr. UPTON, and Mr. WALSH)
introduced the following bill; which was referred to the Committee on
House Administration
A BILL
To amend the Federal Election Campaign Act of 1971 to
ban activities of political action committees in Federal
elections, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. BAN ON ACTIVITIES OF POLITICAL ACTION
COMMITTEES IN FEDERAL ELECTIONS.
(a) IN GENERAL.—Title III of the Federal Election
Campaign Act of 1971 (2 U.S.C. 301 et seq.) is amended
by adding at the end the following new section:
‘‘BAN ON FEDERAL ELECTION ACTIVITIES BY POLITICAL
ACTION COMMITTEES
‘‘SEC. 323. Notwithstanding any other provision of
this Act, no person other than an individual or a political
committee may make contributions, solicit or receive con-
tributions, or make expenditures for the purpose of influ-
encing an election for Federal office.’’.
(b) DEFINITION
OF POLITICAL COMMITTEE.—(1)
Section 301(4) of the Federal Election Campaign Act of
1971 (2 U.S.C. 431(4)) is amended to read as follows:
‘‘(4) The term ‘political committee’ means—
‘‘(A) the principal campaign committee of a
candidate;
‘‘(B) any national, State, or district committee
of a political party, including any subordinate com-
mittee thereof; and
‘‘(C) any local committee of a political party
which—
‘‘(i) receives contributions aggregating in
excess of $5,000 during a calendar year;
‘‘(ii) makes payments exempted from the
definition of contribution or expenditure under
paragraph (8) or (9) aggregating in excess of
$5,000 during a calendar year; or
‘‘(iii) makes contributions or expenditures
aggregating in excess of $1,000 during a cal-
endar year.’’.
(2) Section 316(b)(2) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441b(b)(2)) is amended by
striking out subparagraph (C).
(c) CANDIDATE’S COMMITTEES.—(1) Section 315(a)
of the Federal Election Campaign Act of 1971 (2 U.S.C.
441a(a)) is amended by adding at the end the following
new paragraph:
‘‘(9) For the purposes of the limitations provided by
paragraphs (1) and (2), any political committee which is
established or financed or maintained or controlled by any
candidate or Federal officeholder shall be deemed to be
an authorized committee of such candidate or office-
holder.’’.
(2) Section 302(e)(3) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 432(e)(3)) is amended to
read as follows:
‘‘(3) No political committee that supports or has sup-
ported more than one candidate may be designated as an
authorized committee, except that a candidate for the of-
fice of President nominated by a political party may des-
ignate the national committee of such political party as
the candidate’s principal campaign committee, but only if
that national committee maintains separate books of ac-
count with respect to its functions as a principal campaign
committee.’’.
(d) RULES APPLICABLE WHEN BAN NOT IN EF-
FECT.—For purposes of the Federal Election Campaign
Act of 1971, during any period in which the limitation
under section 324 of that Act (as added by subsection (a))
is not in effect—
(1) the amendments made by subsections (a)
and (b) shall not be in effect; and
(2) it shall be unlawful—
(A) for any person that is treated as a po-
litical committee by reason of paragraph (1)
and is directly or indirectly established, admin-
istered, or supported by a connected organiza-
tion which is a corporation, labor organization,
or trade association to make contributions to
any candidate or the candidate’s authorized
committee; and
(B) for any person that is treated as a po-
litical committee by reason of paragraph (1)
and is not directly or indirectly established, ad-
ministered, or supported by a connected organi-
zation which is a corporation, labor organiza-
tion, or trade association to make contributions
to any candidate or the candidate’s authorized
committee for any election aggregating in ex-
cess of $1,000.
SEC. 2. HOUSE OF REPRESENTATIVES ELECTION LIMITA-
TION ON CONTRIBUTIONS FROM PERSONS
OTHER THAN LOCAL INDIVIDUAL RESIDENTS.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), is amended by adding at the
end the following new subsection:
‘‘(i)(1) A candidate for the office of Representative
in, or Delegate or Resident Commissioner to, the Congress
may not, with respect to a reporting period for an election,
accept contributions from persons other than local individ-
ual residents totaling in excess of the total of contributions
accepted from local individual residents.
‘‘(2) As used in this subsection, the term ‘local indi-
vidual resident’ means an individual who resides in the
congressional district involved.
‘‘(3)(A) Any candidate who accepts contributions that
exceed the limitation under this subsection with respect
to the pre-election report period or the post-election report
period shall pay to the Commission, for deposit in the
Treasury, an amount equal to 5 times the amount of the
excess contributions plus a civil penalty in an amount de-
termined by the Commission.
‘‘(B) Any candidate who accepts contributions that
exceed the limitation under this subsection with respect
to a period other than a period referred to in subpara-
graph (A) shall pay to the Commission, for deposit in the
Treasury, an amount equal to 3 times the amount of the
excess contributions.
‘‘(C) Each report under section 304(a)(6) shall in-
clude a certification by the treasurer of the committee that
the contributions reported do not exceed the limitation
under this subsection.’’.
SEC. 3. BAN ON SOFT MONEY.
(a) IN GENERAL.—Title III of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431 et seq.), as amended
by section 1, is further amended by adding at the end the
following new section:
‘‘LIMITATIONS AND REPORTING REQUIREMENTS FOR
AMOUNTS PAID FOR MIXED POLITICAL ACTIVITIES
‘‘SEC. 324. (a) Any payment by the national commit-
tee of a political party or a State committee of a political
party 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. 4. ADDITIONAL POLITICAL PARTY CONTRIBUTIONS TO
CHALLENGERS WHOSE INCUMBENT OPPO-
NENTS USE FUNDS CARRIED FORWARD FROM
EARLIER ELECTIONS.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by section 2, is fur-
ther amended by adding at the end the following new sub-
section:
‘‘(j)(1) Subject to paragraph (2), if, in a general elec-
tion for Federal office, a candidate who is the incumbent
uses campaign funds carried forward from an earlier elec-
tion cycle, any political committee of a political party may
make contributions to a nonincumbent candidate of that
political party to match the funds so carried forward by
the incumbent. For purposes of this paragraph, funds
shall be considered to have been carried forward if the
funds represent cash on hand as of December 31 of the
year of the election, less legitimate outstanding debts re-
lating to the previous election up to the amount of the
December 31 balance, plus any amount expended on or
before that December 31 for a later election.
‘‘(2) The political party contributions under para-
graph (1) may be made without regard to any limitation
amount otherwise applicable to such contributions under
this section, but a nonincumbent candidate may not accept
such contributions in excess of the total of funds carried
forward by the incumbent candidate.’’.
SEC. 5. ELIMINATION OF LIMITATIONS ON CONTRIBUTIONS
TO CANDIDATES WHOSE OPPONENTS USE
LARGE AMOUNTS OF PERSONAL FUNDS.
(a) IN GENERAL.—Section 315 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441a), as amended
by sections 2 and 4, is further amended by adding at the
end the following new subsection:
‘‘(k) Each candidate in an election for the office of
Senator or Representative in, or Delegate or Resident
Commissioner to, the Congress may declare, in the first
report that the candidate files with the Commission after
becoming a candidate, that the candidate will not make
expenditures of more than $250,000 from the personal
funds of the candidate. If a candidate does not so declare
and makes expenditures of more than $100,000 from per-
sonal funds—
‘‘(1) the limitations under subsections (a)(1)(A)
and (i) shall not apply to any opponent of the can-
didate who so uses personal funds; and
‘‘(2) the limitations under subsection (a)(2)(A)
(insofar as such subsection applies to political party
multicandidate political committees) shall not apply
to contributions to any opponent of the candidate
who so uses personal funds, up to the amount of
personal funds expended by the noncomplying can-
didate.’’.
(b) NOTIFICATION.—Section 304(a)(6) of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 434(a)(6))
is amended by adding at the end the following new para-
graph:
‘‘(C) The principal campaign committee of a can-
didate shall notify the Commission in writing by telegram,
facsimile, or other electronic means of any incremental ex-
penditure of personal funds totaling $50,000 or more.
This notification shall be made not later than 24 hours
after the expenditure.’’.
SEC. 6. LIMITATION ON CONTRIBUTIONS AND EXPENDI-
TURES BY LABOR ORGANIZATIONS.
(a) CONTRIBUTIONS
TO ALL POLITICAL COMMIT-
TEES INCLUDED.—Paragraph (2) of section 316(b) of the
Federal Election Campaign Act of 1971 (2 U.S.C.
441b(b)(2)) is amended by inserting ‘‘political commit-
tee,’’ after ‘‘campaign committee,’’.
(b) APPLICABILITY OF REQUIREMENTS TO LABOR
ORGANIZATIONS.—Section 316(b) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by
adding at the end the following new paragraph:
‘‘(8)(A) Subparagraphs (A), (B), and (C) of para-
graph (2) shall not apply to a labor organization unless
the organization meets the requirements of subparagraphs
(B), (C), and (D).
‘‘(B) The requirements of this subparagraph are met
only if the labor organization provides, at least once annu-
ally, to all employees within the labor organization’s bar-
gaining unit or units (and to new employees within 30
days after commencement of their employment) written
notification presented in a manner to inform any such em-
ployee—
‘‘(i) that an employee cannot be obligated to
pay, through union dues or any other mandatory
payment to a labor organization, for the political ac-
tivities of the labor organization, including, but not
limited to, the maintenance and operation of, or so-
licitation of contributions to, a political committee,
political communications to members, and voter reg-
istration and get-out-the-vote campaigns;
‘‘(ii) that no employee may be required actually
to join any labor organization, but if a collective bar-
gaining agreement covering an employee purports to
require membership or payment of dues or other
fees to a labor organization as a condition of em-
ployment, the employee may elect instead to pay an
agency fee to the labor organization;
‘‘(iii) that the amount of the agency fee shall be
limited to the employee’s pro rata share of the cost
of the labor organization’s exclusive representation
services to the employee’s collective bargaining unit,
including collective bargaining, contract administra-
tion, and grievance adjustment;
‘‘(iv) that an employee who elects to be a full
member of the labor organization and pay member-
ship dues is entitled to a reduction of those dues by
the employee’s pro rata share of the total spending
by the labor organization for political activities;
‘‘(v) that the cost of the labor organization’s ex-
clusive representation services, and the amount of
spending by such organization for political activities,
shall be computed on the basis of such cost and
spending for the immediately preceding fiscal year of
such organization; and
‘‘(vi) of the amount of the labor organization’s
full membership dues, initiation fees, and assess-
ments for the current year; the amount of the re-
duced membership dues, subtracting the employee’s
pro rata share of the organization’s spending for po-
litical activities, for the current year; and the
amount of the agency fee for the current year.
‘‘(C) The requirements of this subparagraph are met
only if the labor organization provides all represented em-
ployees an annual examination by an independent certified
public accountant of financial statements supplied by such
organization which attests that the expenditures which the
union claimed it made for certain expenses were actually
made for those expenses. Such examination shall be con-
ducted in accordance with generally accepted auditing
standards.
‘‘(D) The requirements of this subparagraph are met
only if the labor organization—
‘‘(i) maintains procedures to promptly deter-
mine the costs that may properly be charged to
agency fee payors as costs of exclusive representa-
tion, and explains such procedures in the written no-
tification required under subparagraph (B); and
‘‘(ii) if any person challenges the costs which
may be properly charged as costs of exclusive rep-
resentation—
‘‘(I) provides a mutually selected impartial
decisionmaker to hear and decide such chal-
lenge pursuant to rules of discovery and evi-
dence and subject to de novo review by the Na-
tional Labor Relations Board or an applicable
court; and
‘‘(II) places in escrow amounts reasonably
in dispute pending the outcome of the chal-
lenge.
‘‘(E)(i) A labor organization that does not satisfy the
requirements of subparagraphs (B), (C), and (D) shall fi-
nance any expenditures specified in subparagraphs (A),
(B), or (C) of paragraph (2) only with funds legally col-
lected under this Act for its separate segregated fund.
‘‘(ii) For purposes of this paragraph, subparagraph
(A) of paragraph (2) shall apply only with respect to com-
munications expressly advocating the election or defeat of
any clearly identified candidate for elective public office.’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall apply to contributions and
expenditures made after the date of the enactment of this
Act.
SEC. 7. INCREASED LIMITATION AMOUNT FOR CERTAIN
CONTRIBUTIONS TO POLITICAL COMMITTEES
OF STATE POLITICAL PARTIES.
Section 315(a)(1)(B) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(1)(B)) is amended
by inserting after ‘‘national’’ the following: ‘‘or State’’.
SEC. 8. TRANSITION RULE RELATING TO EXCESS FUNDS OF
CANDIDATES 
FOR 
THE 
HOUSE 
OF 
REP-
RESENTATIVES.
The limitations under section 315(i) of the Federal
Election Campaign Act of 1971 (as added by section 2)
shall be applied to the funds of a candidate carried over
from previous elections and shall take effect on the day
after the date of the 1994 primary election. A candidate
for the office of Representative in, or Delegate or Resident
Commissioner to, the Congress, who, on the day after the
date of the 1994 primary election, has campaign accounts
containing amounts in excess of the contribution limit
under section 315(i) of the Federal Election Campaign
Act of 1971 shall deposit such excess in a separate ac-
count subject to section 304 of the Federal Election Cam-
paign Act of 1971. The amount so deposited shall be re-
turned to contributors or available for any lawful purpose
other than use, with respect to the individual for an elec-
tion for the office of Representative, in, or Delegate or
Resident Commissioner to, the Congress. For purposes of
this section, excess funds are those funds which exceed
twice the amount of funds raised from local individual
residents after December 31, 1992. From the day after
the date of the 1994 primary election until the date of
the 1994 general election, a candidate may transfer excess
funds from the separate account to the campaign account
so long as a majority of the total funds contributed or
transferred to the campaign account were raised from
local individual residents after December 31, 1992. No
funds may be transferred from a separate account of a
candidate to a campaign account of the candidate after
the date of the 1994 general election.
SEC. 9. DISCLOSURE OF ELECTION-RELATED ACTIVITY BY
CORPORATIONS, 
LABOR 
ORGANIZATIONS
AND NONPROFIT ORGANIZATIONS.
Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434) is amended by adding at the end
the following new subsection:
‘‘(d) Any corporation, labor organization, or non-
profit organization that makes a payment for a commu-
nication or other activity that—
‘‘(1) relates to any election for Federal office;
and
‘‘(2) in the case of a corporation or labor orga-
nization, by reason of subparagraph (A) or (B) of
paragraph (2) of section 316(b), is not a contribu-
tion or expenditure;
shall report such payment to the Commission in the same
manner as a contribution or expenditure, as the case may
be, is reported by a principal campaign committee of a
candidate for the House of Representatives or the Senate
under this section.’’.
SEC. 10. PROHIBITION OF BUNDLING OF CONTRIBUTIONS
TO CANDIDATES BY POLITICAL ACTION COM-
MITTEES AND LOBBYISTS.
Section 316 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441b) is amended by adding at the end
the following new subsection:
‘‘(c) No nonparty multicandidate political committee
or person required to register under the Federal Regula-
tion of Lobbying Act (2 U.S.C. 261 et seq.) may act as
an intermediary or conduit with respect to a contribution
to a candidate for Federal office.’’.
SEC. 11. PROHIBITION OF TRANSFERS AMONG NONCAN-
DIDATE, NONPARTY POLITICAL COMMITTEES.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by sections 2, 4,
and 5, is further amended by adding at the end the follow-
ing new subsection:
‘‘(l) A noncandidate, nonparty political committee
may not make contributions, or otherwise transfer funds,
to any other noncandidate, nonparty political committee.
As used in this subsection, the term ‘noncandidate,
nonparty political committee’ means a political committee
that is not an authorized committee of a candidate for
Federal office and is not a political committee of a political
party.’’.
SEC. 12. PROHIBITION OF LEADERSHIP COMMITTEES; RE-
STRICTION ON CONTRIBUTIONS BETWEEN
PRINCIPAL CAMPAIGN COMMITTEES.
(a) LEADERSHIP COMMITTEE PROHIBITION.—Sec-
tion 302 of the Federal Election Campaign Act of 1971
(2 U.S.C. 432) is amended by adding at the end the fol-
lowing new subsection:
‘‘(j) A candidate for Federal office may not establish,
maintain, finance, or control a political committee, other
than the principal campaign committee of the candidate.’’.
(b) PRINCIPAL CAMPAIGN COMMITTEE RESTRIC-
TION.—Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by sections 2, 4,
5, and 11, is further amended by adding at the end the
following new subsection:
‘‘(m) A principal campaign committee of a candidate
for Federal office may not make any contribution to any
other principal campaign committee (other than the prin-
cipal campaign committee of the same individual as a can-
didate for another Federal office).’’.
SEC. 13. EFFECTIVE DATE.
The amendments made by this Act shall take effect
on the date of the enactment of this Act.