Campaign Finance Improvement Act of 1998

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Finance Improvement Act of 
1998''.

SEC. 2. MANDATORY ELECTRONIC PRESERVATION AND FILING OF FEDERAL 
              ELECTION COMMISSION REPORTS; ACCESS THROUGH INTERNET 
              SITE.

    (a) Electronic Filing Through the Internet.--Section 304(a)(11) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 434(a)(11)) is 
amended to read as follows:
    ``(11)(A) Through a competitive bidding process, the Commission 
shall establish a public Internet site not later than January 1, 1999, 
with the following features:
            ``(i) Any person filing a report required by this Act may 
        post the report directly on the site.
            ``(ii) Any member of the public may obtain the reports 
        posted on the site (together with any other information the 
        Commission may make available through the site) at any time.
            ``(iii) Any information in a report posted on the site 
        shall be subject to the same prohibition on sale and use as 
        information from a report or statement under paragraph (4).
            ``(iv) All information posted on the site shall be 
        integrated in a manner which permits users to search the 
        information across categories and sources.
    ``(B) Each person required to file a report under this Act shall 
file the report by posting it directly on the Internet site established 
under subparagraph (A), or by filing it by such electronic method as 
the Commission may designate to enable the Commission to post the 
report on such site immediately upon receipt.
    ``(C) The Commission shall provide for one or more methods (other 
than requiring a signature on the report being filed) for verification 
of reports filed in accordance with the methods described in 
subparagraph (B). Any verification under the preceding sentence shall 
be treated for all purposes (including penalties for perjury) in the 
same manner as a verification by signature.
    ``(D) As used in this paragraph, the term ``report'' means, with 
respect to the Commission, a report, designation, or statement required 
by this Act to be filed with the Commission.''.
    (b) Requiring Commission To Make Software Available.--Section 
311(a) of such Act (2 U.S.C. 438(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(11) through competitive bidding, obtain and provide for 
        computer software required to carry out section 304(a)(11).''.
    (c) Internet Defined.--Section 301 of such Act (2 U.S.C. 431) is 
amended by striking paragraph (19) and inserting the following new 
paragraph:
    ``(19) The term `Internet' means the international computer network 
of both Federal and non-Federal interoperable packet-switched data 
networks.''.

SEC. 3. EXPANDING REPORTING REQUIREMENTS FOR CERTAIN CONTRIBUTIONS.

    (a) Requiring Reporting of All Contributions of $200 or More Within 
10 Days of Receipt.--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)(1) Each political committee which receives a contribution of 
$200 or more shall notify the Commission of the contribution not later 
than 10 days after receipt, and shall include the identification of the 
contributor, the date of receipt and amount of the contribution, and 
(in the case of an authorized committee of a candidate) the name of the 
candidate and the office sought by the candidate.
    ``(2) The report required under this subsection shall be in 
addition to all other reports required under this Act.''.
    (b) Expanding Types of Contributions to Principal Campaign 
Committees Subject to Expedited Reporting.--Section 304(a)(6)(A) of 
such Act (2 U.S.C. 434(a)(6)(A)) is amended--
            (1) by striking ``$1,000'' and inserting ``$200''; and
            (2) by striking ``20th day'' and inserting ``90th day''.

SEC. 4. REQUIRING MAJORITY OF AMOUNT OF CONTRIBUTIONS ACCEPTED BY HOUSE 
              CANDIDATES TO COME FROM IN-STATE 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 accept 
contributions with respect to an election from persons other than 
individuals residing in the State involved totaling in excess of the 
aggregate amount of contributions accepted with respect to the election 
from individuals residing in the State involved.
    ``(2) Paragraph (1) shall not apply with respect to contributions 
from a political committee of a national, State, or local political 
party (including any subordinate committee thereof).''.

SEC. 5. WAIVER OF ``BEST EFFORTS'' EXCEPTION FOR INFORMATION ON 
              IDENTIFICATION OF CONTRIBUTORS.

    Section 302(i) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(i)) is amended--
            (1) by striking ``(i) When the treasurer'' and inserting 
        ``(i)(1) Except as provided in paragraph (2), when the 
        treasurer''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) shall not apply with respect to information 
regarding the identification of any person who makes a contribution or 
contributions aggregating more than $200 during a calendar year (as 
required to be provided under subsection (c)(3)).''.

SEC. 6. LOWERING THRESHOLD FOR CASH CONTRIBUTIONS.

    Section 321 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441g) is amended by striking ``exceed $100'' and inserting ``exceed 
$20''.

SEC. 7. CONTRIBUTIONS BY DEPENDENTS NOT OF VOTING AGE.

    Section 315(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a) is amended by adding at the end the following new 
paragraph:
    ``(9)(A) For purposes of the limitations imposed by this section, 
any contribution made by a dependent minor shall be treated as follows:
            ``(i) If the dependent minor is the dependent of one other 
        individual, the contribution shall be treated as a contribution 
        made by such other individual.
            ``(ii) If the dependent minor is the dependent of another 
        individual and such other individual's spouse, the contribution 
        shall be allocated among such individuals in such manner as 
        such other individuals may determine.
    ``(B) In this paragraph, the term `dependent minor' means an 
individual who--
            ``(i) is a dependent of another individual; and
            ``(ii) has not, as of the time of making the contribution 
        involved, attained the legal age for voting in elections for 
        Federal office in the State in which such individual 
        resides.''.

SEC. 8. PROHIBITING NON-CITIZEN INDIVIDUALS FROM MAKING CONTRIBUTIONS 
              IN CONNECTION WITH FEDERAL ELECTIONS.

    Section 319(b)(2) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441e(b)(2)) is amended by striking ``and who is not lawfully 
admitted'' and all that follows and inserting a period.

SEC. 9. MANDATORY SUBMISSION OF MONTHLY REPORTS BY NATIONAL POLITICAL 
              PARTY COMMITTEES.

    Section 304(a)(4)(B) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 434(a)(4)(B)) is amended--
            (1) by striking ``monthly reports'' and inserting ``in the 
        case of a national committee of a political party and any other 
        political committee (other than an authorized committee of a 
        candidate) not filing quarterly reports under subparagraph (A), 
        monthly reports''; and
            (2) by striking the period at the end and inserting the 
        following: ``except that in the case of a national committee of 
        a political party, the committee shall file the reports due in 
        November and December of such year together with such a pre-
        general election report, post-general election report, and year 
        end report.''.

SEC. 10. DISCLOSURE REQUIREMENTS FOR CERTAIN SOFT MONEY EXPENDITURES OF 
              POLITICAL PARTIES.

    (a) Transfers of Funds by National Political Parties.--Section 
304(b)(4) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434(b)(4)) is amended--
            (1) by striking ``and'' at the end of subparagraph (H);
            (2) by adding ``and'' at the end of subparagraph (I); and
            (3) by adding at the end the following new subparagraph:
                    ``(J) in the case of a political committee of a 
                national political party, all funds transferred to any 
                political committee of a State or local political 
                party, without regard to whether or not the funds are 
                otherwise treated as contributions or expenditures 
                under this title;''.
    (b) Disclosure by State Political Parties of Information Reported 
Under State Law.--Section 304 of such Act (2 U.S.C. 434), as amended by 
section 3(a), is further amended by adding at the end the following new 
subsection:
    ``(e) If a political committee of a State political party is 
required under a State or local law, rule, or regulation to submit a 
report on its disbursements to an entity of the State or local 
government, the committee shall file a copy of the report with the 
Commission at the time it submits the report to such an entity.''.

SEC. 11. UNION DISCLOSURE.

    (a) In General.--Section 201(b) of the Labor Management Reporting 
and Disclosure Act of 1959 (29 U.S.C. 431(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (5); and
            (2) by adding at the end the following:
            ``(7) an itemization of amounts spent by the labor 
        organization for--
                    ``(A) contract negotiation and administration;
                    ``(B) organizing activities;
                    ``(C) strike activities;
                    ``(D) political activities;
                    ``(E) lobbying and promotional activities; and
                    ``(F) market recovery and job targeting programs; 
                and
            ``(8) all transactions involving a single source or payee 
        for each of the activities described in subparagraphs (A) 
        through (F) of paragraph (7) in which the aggregate cost 
        exceeds $10,000.''.
    (b) Computer Network Access.--Section 201(c) of the Labor 
Management Reporting and Disclosure Act of 1959 (29 U.S.C. 431(c)) is 
amended by inserting ``including availability of such reports via a 
public Internet site or another publicly accessible computer network,'' 
after ``its members,''.
    (c) Reporting by Secretary.--Section 205(a) of the Labor Management 
Reporting and Disclosure Act of 1959 (29 U.S.C. 435(a)) is amended by 
inserting after ``and the Secretary'' the following: ``shall make the 
reports and documents filed pursuant to section 201(b) available via a 
public Internet site or another publicly accessible computer network. 
The Secretary''.

SEC. 12. PROHIBITING INVOLUNTARY ASSESSMENT OF EMPLOYEE FUNDS FOR 
              POLITICAL ACTIVITIES.

    (a) In General.--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)(1) Except with the separate, prior, written, voluntary 
authorization of each individual, it shall be unlawful--
            ``(A) for any national bank or corporation described in 
        this section to collect from or assess its stockholders or 
        employees any dues, initiation fee, or other payment as a 
        condition of employment if any part of such dues, fee, or 
        payment will be used for political activity in which the 
        national bank or corporation is engaged; and
            ``(B) for any labor organization described in this section 
        to collect from or assess its members or nonmembers any dues, 
        initiation fee, or other payment if any part of such dues, fee, 
        or payment will be used for political activity in which the 
        labor organization is engaged.
    ``(2) An authorization described in paragraph (1) shall remain in 
effect until revoked and may be revoked at any time. Each entity 
collecting from or assessing amounts from an individual with an 
authorization in effect under such paragraph shall provide the 
individual with a statement that the individual may at any time revoke 
the authorization.
    ``(3) For purposes of this subsection, the term `political 
activity' means any activity carried out for the purpose of influencing 
(in whole or in part) any election for Federal office, influencing the 
consideration or outcome of any Federal legislation or the issuance or 
outcome of any Federal regulations, or educating individuals about 
candidates for election for Federal office or any Federal legislation, 
law, or regulations.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts collected or assessed on or after the date of the 
enactment of this Act.

SEC. 13. SOLICITATIONS BY TRADE ASSOCIATIONS OF SHAREHOLDERS AND 
              PERSONNEL OF MEMBER CORPORATIONS.

    Section 316(b)(4)(D) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441b(b)(4)(D)) is amended by striking ``to the extent that'' 
and all that follows and inserting a period.

SEC. 14. EFFECTIVE DATE.

    Except as otherwise provided, the amendments made by this Act shall 
apply with respect to elections and transactions occurring after 
December 31, 1998.

Summary: Campaign Finance Improvement Act of 1998 - Amends the Federal Election Campaign Act of 1971 (FECA) to require the Federal Election Commission to:  (1) establish a specified public Internet site by January 1, 1999; (2) permit persons required to file reports under FECA to file such reports by directly posting them on the Internet site or by filing them electronically to enable the Commission to post reports on such site immediately upon receipt; (3) provide for one or more methods (other than requiring a signature on the reports being filed) for verification of reports filed in accordance with the methods described in the preceding; and (4) obtain and provide for computer software required to carry out this Act through competitive bidding. 
(Sec. 3) Requires each political committee which receives a contribution of $200 or more to report the contribution not later than ten days after receipt and include the contributor's identification, the date of receipt and the contribution amount, and (in the case of a candidate's authorized committee) the candidate's name and the office sought by the candidate. 
Expands the types of contributions required to be reported by principal campaign committees and changes the deadline for reporting such contributions by any authorized committee of a candidate. 
(Sec. 4) Prohibits House of Representatives candidates from accepting contributions in an election from persons other than in-State residents totaling in excess of the aggregate amount of contributions accepted in the election from such residents, with the exception of contributions from national, State, and local political parties. 
(Sec. 5) Waives the "best efforts" exception with respect to information on the identification of any person who makes a contribution or contributions aggregating more than $200 in a year. 
(Sec. 6) Lowers the threshold for U.S. and foreign cash contributions from $100 to $20. 
(Sec. 7) Sets forth requirements for the treatment of contributions made by dependent minors. 
(Sec. 8) Redefines foreign national to include any individual who is not a U.S. citizen, whether in the U.S. lawfully or unlawfully. 
(Sec. 9) Requires the submission of monthly reports by national political party committees and any other political committees (other than candidates' authorized committees) not filing quarterly reports. 
Requires national political party committees to file the reports due in November and December of any year in which a regularly scheduled general election is held, together with the pre-general election report, post-general election report, and year end report. 
(Sec. 10) Requires the disclosure of all fund transfers by national political parties to State and local political parties, without regard to whether or not the funds are otherwise treated as contributions or expenditures. 
Requires disclosure by State political parties of disbursements required to be reported under State or local law. 
(Sec. 11) Amends the Labor Management Reporting and Disclosure Act of 1959 to:  (1) require the inclusion of specified expenditures in the annual financial reports of labor organizations; and (2) make information contained in labor organization reports and annual financial reports available via a public Internet site or another publicly accessible computer network. 
(Sec. 12) Amends FECA to make it unlawful, except with the separate, prior, written, voluntary authorization of each individual, for:  (1) national banks or corporations to collect from or assess its stockholders or employees any dues, initiation fee, or other payment as a condition of employment if any part of such dues, fee, or payment will be used for political activities in which the national bank or corporation is engaged; and (2) labor organizations to collect from or assess its members or nonmembers any dues, fee, or other payment if any part of such dues, fee, or payment will be used for political activities in which the labor organization is engaged. 
States that an authorization shall remain in effect until revoked and may be revoked at any time.  Requires each entity collecting from or assessing amounts from an individual with an authorization in effect to provide the individual with a statement that the individual may at any time revoke the authorization. 
(Sec. 13) Removes the conditions on the solicitation of contributions by trade associations from shareholders and personnel (and their families) of member corporations of such associations.