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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Campaign Finance Reform and
Disclosure Act of 1996''.

SEC. 2. DEFINITIONS.

Section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C.
431) is amended by adding at the end the following:
''(20) Election cycle.--The term 'election cycle' means--
''(A) in the case of a candidate or the authorized
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.
''(21) Senate candidate.--The term 'Senate candidate' means
a candidate who seeks nomination for election, or election, to
the Senate.
''(22) Campaign expense.--The term 'campaign expense' means
an expense that is attributable solely to a bona fide campaign
purpose.
''(23) Inherently personal purpose.--The term 'inherently
personal purpose' means a purpose that, by its nature, confers
a personal benefit on a candidate, including a home mortgage
rent or utility payment, clothing purchase, noncampaign
automobile expense, country club membership, vacation, or trip
of a noncampaign nature, household food item, tuition payment,
admission to a sporting event, concert, theater, or other form
of entertainment not associated with a campaign, dues, fees, or
contribution to a health club or recreational facility, and any
other inherently personal living expense as determined under a
regulation issued under section 326.''.

SEC. 3. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE CONTRIBUTIONS BY
SENATE CANDIDATES.

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:

''SEC. 324. LIMITATION ON ACCEPTANCE OF OUT-OF-STATE CONTRIBUTIONS BY
SENATE CANDIDATES.

''A Senate candidate and the candidate's authorized committees
shall not accept, during an election cycle, contributions from persons
other than individuals residing in the candidate's State in an amount
exceeding 40 percent of the total amount of contributions accepted
during the election cycle.''.

SEC. 4. LIMITATION ON REIMBURSEMENT FROM CAMPAIGNS FOR CONTRIBUTIONS BY
SENATE CANDIDATES AND IMMEDIATE FAMILIES OF SENATE
CANDIDATES.

Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) (as amended by section 3) is amended by adding at the end
the following:

''SEC. 325. LIMITATION ON REIMBURSEMENT FROM CAMPAIGNS FOR
CONTRIBUTIONS BY SENATE CANDIDATES AND IMMEDIATE FAMILIES
OF SENATE CANDIDATES.

''(a) In General.--The aggregate amount of contributions to an
eligible Senate candidate or the candidate's authorized committees from
the sources described in subsection (b) that may be reimbursed during
an election cycle to the candidate or the candidate's immediate family
shall not exceed $250,000.
''(b) Sources.--A source is described in this subsection if the
source is--
''(1) personal funds of the candidate and members of the
candidate's immediate family; or
''(2) personal loans incurred by the candidate and members
of the candidate's immediate family.
''(c) Indexing.--The $250,000 amount under subsection (a) shall be
increased as of the beginning of each calendar year based on the
increase in the price index determined under section 315(c), except
that the base period shall be calendar year 1996.''.

SEC. 5. RESTRICTION ON USE OF CAMPAIGN FUNDS BY SENATE CANDIDATES FOR
PERSONAL PURPOSES.

(a) Restriction.--Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) (as amended by section 4) is amended by
adding at the end the following:

''SEC. 326. RESTRICTION ON USE OF CAMPAIGN FUNDS BY SENATE CANDIDATES
FOR PERSONAL PURPOSES.

''(a) Restriction.--A Senate candidate who accepts a contribution--
''(1) shall use the contribution only to pay a legitimate
and verifiable campaign expense; and
''(2) shall not use the contributions to pay any inherently
personal purpose.
''(b) Regulation.--Not later than 90 days after the date of
enactment of this section, the Commission shall issue a regulation
implementing subsection (a).''.
(b) Application of Amendment.--The amendment made by subsection (a)
shall apply to all contributions possessed by a candidate on the date
of enactment of this Act and thereafter.

SEC. 6. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.

Section 3210(a)(6)(A) of title 39, United States Code, is amended
to read as follows:
''(A) A Member of Congress shall not mail any mass
mailing as franked mail during a year in which there
will be an election for the seat held by the Member
during the period between January 1 of that year and
the date of the general election for that Office,
unless the Member has made a public announcement that
the Member will not be a candidate for election to any
Federal office in that year (including the office held
by the Member).''.

SEC. 7. DECREASE IN PAC CONTRIBUTION LIMIT; INDEXING OF LIMITS.

Section 315(a) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(a)) is amended--
(1) in paragraph (2)(A) by striking ''$5,000'' and
inserting ''$1,000''; and
(2) by adding at the end the following:
''(9) Indexing.--The $1,000 amounts under paragraphs (1)(A)
and (2)(A) shall be increased as of the beginning of each
calendar year based on the increase in the price index
determined under subsection (c), except that the base period
shall be calendar year 1996.''.

SEC. 8. RESTRICTION ON ACCEPTANCE OF CONTRIBUTIONS BY POLITICAL PARTY
COMMITTEES.

Title III of the Federal Election Campaign Act of 1971 (2 U.S.C.
431 et seq.) (as amended by section 5) is amended by adding at the end
the following:

''SEC. 327. RESTRICTION ON ACCEPTANCE OF CONTRIBUTIONS BY POLITICAL
PARTY COMMITTEES.

''It shall be unlawful for a committee of a political party to
accept a contribution on the condition that the contribution be used to
make a contribution to or an expenditure on behalf of a particular
candidate.''.

SEC. 9. UNLIMITED COMMUNICATIONS BETWEEN A POLITICAL PARTY AND MEMBERS
OF THE POLITICAL PARTY.

Section 315(d) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(d)) is amended by adding at the end the following:
''(4)(A) For purposes of applying the limitations under paragraphs
(2) and (3), in determining the amount of expenditures made by a
national committee of a political party or a State committee of a
political party (including any subordinate committee of a State
committee), there shall be excluded any amount spent by the committee
for communications to the extent the communications are made to members
of the political party.
''(B) For purposes of subparagraph (A), an individual shall be
considered to be a 'member' of a political party if--
''(i) the individual is registered to vote as a member of
the party;
''(ii) there is a public record that the individual voted
in the primary election of the political party in the most
recent primary election; or
''(iii) the individual has indicated in writing that the
individual is a member of the political party.''.

SEC. 10. PROMOTION OF STATE AND LOCAL PARTY ACTIVITY.

(a) Contributions.--Section 301(8)(B) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
(1) in clause (xiii) by striking ''and'' at the end;
(2) in clause (xiv) by striking the period at the end and
inserting ''; and''; and
(3) by adding at the end the following:
''(xv) the payment by a State or local committee of a
political party for--
''(I) the listing of the slate of the political
party's candidates, including the communication of the
slate to the public;
''(II) the mailing of materials for or on behalf of
specific candidates by volunteers (including labeling
envelopes or affixing postage or other indicia to
particular pieces of mail), other than the mailing of
materials to a commercial list;
''(III) conducting a telephone bank for or on
behalf of specific candidates staffed by volunteers; or
''(IV) the distribution of collateral materials
(such as pins, bumper stickers, handbills, brochures,
posters, party tabloids, and yard signs) for or on
behalf of specific candidates (whether by volunteers or
otherwise).''.
(b) Expenditures.--Section 301(9)(B) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(9)(B)) is amended--
(1) in clause (ix) by striking ''and'' at the end;
(2) in clause (x) by striking the period at the end and
inserting ''; and''; and
(3) by adding at the end the following:
''(xi) the payment by a State or local committee of a
political party for--
''(I) the listing of the slate of the political
party's candidates, including the communication of the
slate to the public;
''(II) the mailing of materials for or on behalf of
specific candidates by volunteers (including labeling
envelopes or affixing postage or other indicia to
particular pieces of mail), other than the mailing of
materials to a commercial list;
''(III) conducting a telephone bank for or on
behalf of specific candidates staffed by volunteers; or
''(IV) the distribution of collateral materials
(such as pins, bumper stickers, handbills, brochures,
posters, party tabloids, and yard signs) for or on
behalf of specific candidates (whether by volunteers or
otherwise).''.
(c) Conforming Amendments.--(1) Section 301(8)(B)(x) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)(x)) is amended by
striking ''in connection with volunteer activities on behalf of
nominees of such party'' and inserting ''in connection with State or
local activities, other than any payment described in clause (xv)''.
(2) Section 301(9)(B)(viii) of the Federal Election Campaign Act of
1971 (2 U.S.C. 431(9)(B)(viii)) is amended by striking ''in connection
with volunteer activities on behalf of nominees of such party'' and
inserting ''in connection with State or local activities, other than
any payment described in clause (xi)''.

SEC. 11. RELIEF OF SMALL PACS FROM REPORTING REQUIREMENTS.

Section 304(a)(1) of the Federal Election Campaign Act of 1971 (2
U.S.C. 434(a)(1)) is amended by inserting after ''political committee''
the following: ''(except a multicandidate political committee or
separate segregated fund that has not, during an election cycle, as of
any date within the election cycle, accepted contributions or made
expenditures in an aggregate amount exceeding $25,000)''.

SEC. 12. RIGHTS OF EMPLOYEES RELATING TO THE PAYMENT AND USE OF LABOR
ORGANIZATION DUES.

(a) Payment of Dues.--
(1) Rights of employees.--Section 7 of the National Labor
Relations Act (29 U.S.C. 157) is amended by striking
''membership'' and all that follows and inserting the
following: ''the payment to a labor organization of dues or
fees related to collective bargaining, contract administration,
or grievance adjustment necessary to performing the duties of
exclusive representation as a condition of employment as
authorized in section 8(a)(3).''.
(2) Unfair labor practices.--Section 8(a)(3) of the
National Labor Relations Act (29 U.S.C. 158(a)(3)) is amended
by striking ''membership therein'' and inserting ''the payment
to such labor organization of dues or fees related to
collective bargaining, contract administration, or grievance
adjustment necessary to performing the duties of exclusive
representation''.
(b) Requirements for Use of Dues for Certain Purposes.--
(1) Written agreement.--Section 8 of the National Labor
Relations Act (29 U.S.C. 158) is amended by adding at the end
the following:
''(h)(1) An employee subject to an agreement between an employer
and a labor organization requiring the payment of dues or fees to such
organization as authorized in subsection (a)(3) may not be required to
pay to such organization, nor may such organization accept payment of,
any dues or fees not related to collective bargaining, contract
administration, or grievance adjustment necessary to performing the
duties of exclusive representation unless the employee has agreed to
pay such dues or fees in a signed written agreement that shall be
renewed between the first day of September and the first day of October
of each year.
''(2) Such signed written agreement shall include a ratio,
certified by an independent auditor, of the dues or fees related to
collective bargaining, contract administration, or grievance adjustment
necessary to performing the duties of exclusive representation and the
dues or fees related to other purposes.''.
(2) Written assignment.--Section 302(c)(4) of the Labor
Management Relations Act, 1947 (29 U.S.C. 186) is amended by
inserting before the semicolon the following: '': Provided
further, That no amount may be deducted for dues unrelated to
collective bargaining, contract administration, or grievance
adjustment necessary to performing the duties of exclusive
representation unless a written assignment authorizes such a
deduction''.
(c) Notice to Employees Relating to the Payment and Use of Dues.--
Section 8 of the National Labor Relations Act (29 U.S.C. 158) (as
amended by subsection (b)(1)) is amended by adding at the end the
following:
''(i)(1) An employer shall post a notice that informs the employees
of their rights under section 7 of this Act and clarifies to such
employees that an agreement requiring the payment of dues or fees to a
labor organization as a condition of employment as authorized in
subsection (a)(3) may only require that employees pay to such
organization any dues or fees related to collective bargaining,
contract administration, or grievance adjustment necessary to
performing the duties of exclusive representation. A copy of such
notice shall be provided to each employee not later than 10 days after
the first day of employment.
''(2) The notice described in paragraph (1) shall be of such size
and in such form as the Board shall prescribe and shall be posted in
conspicuous places in and about the plants and offices of such
employer, including all places where notices to employees are
customarily posted.''.
(d) Employee Participation in the Affairs of a Labor
Organization.--Section 8(b)(1) of the National Labor Relations Act (29
U.S.C. 158(b)(1)) is amended by striking ''therein;'' and inserting the
following: ''therein, except that, an employee who is subject to an
agreement between an employer and a labor organization requiring as a
condition of employment the payment of dues or fees to such
organization as authorized in subsection (a)(3) and who pays such dues
or fees shall have the same right to participate in the affairs of the
organization related to collective bargaining, contract administration,
or grievance adjustment as any member of the organization;''.
(e) Disclosure to Employees.--
(1) Expenses reporting.--Section 201(b) of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C.
431(b)) is amended by adding at the end the following: ''Every
labor organization shall be required to attribute and report
expenses by function classification in such detail as necessary
to allow the members of such organization or the employees
required to pay any dues or fees to such organization to
determine whether such expenses were related to collective
bargaining, contract administration, or grievance adjustment
necessary to performing the duties of exclusive representation
or were related to other purposes.''.
(2) Report information.--Section 201(c) of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C.
431(c)) is amended--
(A) by inserting ''and employees required to pay
any dues or fees to such organization'' after
''members'';
(B) by striking ''suit of any member of such
organization'' and inserting ''suit of any member of
such organization or employee required to pay any dues
or fees to such organization''; and
(C) by striking ''such member'' and inserting
''such member or employee''.
(3) Regulations.--The Secretary of Labor shall prescribe
such regulations as are necessary to carry out the amendments
made by this subsection not later than 120 days after the date
of enactment of this Act.
(f) Effective Date.--This section shall take effect on the date of
enactment of this Act, except that the requirements contained in the
amendments made by subsections (b) and (c) shall take effect 60 days
after the date of enactment of this Act.

SEC. 13. EXPEDITED JUDICIAL REVIEW.

(a) Civil Action.--The Federal Election Commission, a political
committee under title III of the Federal Election Campaign Act of 1971,
or any individual eligible to vote in any election for the office of
President of the United States may bring a civil action in United
States district court to determine the constitutionality of any
provision of this Act or any amendment made by this Act.
(b) Hearing by 3-Judge Court.--Immediately upon commencement of a
civil action under subsection (a), a district court of 3 judges shall
be convened to decide the action pursuant to section 2284 of title 28,
United States Code.
(c) Direct Appeal to Supreme Court.--An appeal of an interlocutory
order or final judgment, decree, or order in a civil action under
subsection (a) may be taken directly to the Supreme Court not later
than 20 days after the entry of the judgment, decree, or order.
(d) Expedited Review by Supreme Court.--The Supreme Court shall
accept jurisdiction over, advance on the docket, and expedite to the
greatest extent possible an appeal under subsection (c).
Campaign Finance Reform and Disclosure Act of 1996 - Amends the Federal Election Campaign Act of 1971 to limit acceptance of out-of-State contributions by Senate candidates.
Limits reimbursement from campaigns for contributions by Senate candidates and the immediate families of Senate candidates. Restricts the use of campaign funds by Senate candidates for personal purposes.
Limits congressional use of the franking privilege during a year in which there will be an election for the seat held by the member unless the member makes a public announcement that the Member will not be a candidate for election to any Federal office in that year.
Decreases and indexes the PAC contribution limit.
Restricts the acceptance of contributions by political party committees.
Exempts communications between a political party and members of the political party from specified spending limitations.
Excludes from the definition of contribution State or local political party committee payments for certain State and local activities.
Excepts from receipt and disbursement reporting requirements PACs which have accepted contributions or made expenditures aggregating less than $25,000 during an election cycle.
Amends the National Labor Relations Act to revise the rights of employees relating to the payment and use of labor organization dues.
Provides for expedited Supreme Court review of constitutional issues of this Act or any amendment made by this Act.