Vol. 143         WASHINGTON, MONDAY, SEPTEMBER 29, 1997  NO. 132

 

BIPARTISAN CAMPAIGN REFORM ACT OF 1997 (Senate - September 29, 1997)

 

The PRESIDING OFFICER (Mr. Kyl). Under the previous order, the Senate will now resume consideration of S. 25 which the
clerk will report.

The assistant legislative clerk read as follows:

A bill (S. 25) to reform the financing of Federal elections.

The Senate resumed consideration of the bill.

Mr. McCAIN. Mr. President, I would like to ask the majority leader a question before I send a modification to the desk. Maybe I
can discuss this with him on the floor.

It is not clear to me as to what his plans are for the following week. I understand tomorrow is taken up with conference reports
and other business. As he said, we would go back on Wednesday to debate S. 25 with the modification. And then would it be his
intention to begin votes later this week, or the following week? I know it is a little hard to tell, but I wonder if maybe we should
have some discussion off the floor on this issue.

Mr. LOTT. Mr. President, if the Senator will yield so that I may make a comment on that, I hope, first, that we will have some
time on Tuesday of this week, before or after, during some of the votes that may be occurring on the continuing resolution, as well
as the appropriations conference reports. I hope that most of those won't take a lot of time. We will have some time for debate
tomorrow. But until we see exactly what will be available and how much time is needed on the CR, we won't know for sure. But
we will find that out, hopefully, today and we will confer with the leadership on both sides of the aisle, as well as the Senators
interested in this bill.

I had hoped that we could also have some debate on Wednesday afternoon, even though we would not have any votes after 1
o'clock. But we would still have debate up until about 4 o'clock, and then Thursday is open. We don't want to, in any way, infringe
on the religious holiday. So we will need to talk that through. We could have some debate on Thursday and, of course, we can, and
I assume will, have some debate Friday. We want to talk that through to make sure everybody is comfortable with that.

My hope is that we could continue debate on Monday the 6th and begin having votes on Tuesday, and the possibility also on
Wednesday. But, again, we need to go and get started with debate and see how that is going to stack up, and we will talk about
that. It is a little bit broken up because of the religious holiday, but we want to have full time for debate, and we will start votes
after that. That was my thinking.

Mr. McCAIN. I thank the majority leader. I think that clarifies a great deal. I also appreciate his sensitivity to those who have to
be home at this holiday season. I know my colleague from Wisconsin and other Senators who need to be involved in this issue. I
want to thank the majority leader for what seems to me to be a generous amount of time for debate and discussion of this issue.

Mr. President, in just a few moments, I will lay before the Senate the modified version of the McCain-Feingold campaign finance
reform bill. After I do so, the leader will be recognized to offer an amendment to the bill. Therefore, I wanted to take a few
minutes before that action occurs to speak briefly to the modification.

First, I want to thank my cosponsors and allies in this fight. Senator Thompson and Senator Collins have played crucial roles as
we moved forward on this matter. Their steadfast support, advice, and friendship is greatly appreciated.

But more than anybody, I want to thank my friend from the other side of the aisle, the Senator from Wisconsin, Russ Feingold. I
do not believe that when he and I first sat down and began a discussion on this matter that we would be where are
today--engaged in a historic battle to reform the electoral system of this great Nation. My friend, as he is indeed my friend, has
been steadfast in his commitment and his belief in this cause and I want to state for the Record that I am grateful he is my ally in
this fight.

Mr. President, I want to briefly highlight again what the modified bill does and does not do. This is not a big government solution.
The modified test is just over 50 pages long.

The defenders of the status quo are not defending an unbridled, unregulated bastion of free speech. The Federal Election
Campaign Act, known as FECA, governs Federal elections today.

Elections are regulated today. They need to be regulated. We do not want corporations, unions, or wealthy individuals to buy and
sell elections. This is not a country where a royal class controls the Government. No one here wants corporations to give directly
to campaigns. The fact is that at certain times and certain places, there is a role for some regulation and restraint in order to
protect the greater public good.

Title I of the modified bill seeks to reduce the influence of special interest money in campaigns by banning the use of soft money in
Federal races. Soft money would be allowed to be contributed to State parties in accordance with State law.

We do, however, seek to differentiate between State and Federal activities. Soft money contributed to State parties could be used
for any and all State candidate activities. Let me

repeat that statement. Soft money given to the State parties could be used for any State electioneering activities.

If a State allows soft money to be used in a gubernatorial race, a State senate race, or the local sheriff's race, it would still be
allowed under this bill. However, if a State party seeks to use soft money to indirectly influence a Federal race, such activity
would be banned 120 days prior to the general election. Using such funds to finance voter registration activities would be allowed
except during the 120 days prior to the election.

Voter registration efforts are very important. I know my colleagues recognize that fact. We want individuals to register and then
to vote. This bill recognizes that fact and allows parties to engage in voter registration activities. Additionally, State parties would
be allowed, within limits, to engage in generic party advertising. These activities help build the party and encourage people to vote.

To make up for the loss of soft money, the modified bill doubles the limit that individuals can give to State parties in hard money.
Consequently, the aggregate contribution limit for hard money that individuals could donate to political races would rise to $30,000.

Title II of the modified bill seeks to limit the role of independent expenditures in political campaigns.

Mr. President, I think we ought to pay attention to this part of it because, over the weekend, it seems to be the attack point for
various pundits and those throughout the Nation, most of whom by the way have not seen the bill.

The bill in no way bans, curbs, or seeks to control real, independent, noncoordinated expenditures in any manner. Additionally, if
hard money--money that is recorded and traceable--is used, then there are no restrictions of any kind on advertising.

Let me repeat that fact. This bill in no way restricts any message or any use of the airwaves. It does however place limits and
controls on expenditures if certain kinds of money are used to fund such activity.

Any independent expenditure made to advocate any cause, with the exception of the express advocacy of a candidate's victory or
defeat, is fully allowed. To do any thing else would violate the first amendment.

However, the bill does expand the definition of express advocacy. The courts have routinely ruled that the Congress may define
express advocacy. In fact, current standards of express advocacy have been derived from the Buckley case itself.

As we all know, the Supreme Court case of Buckley versus Valeo stated that campaign spending cannot be mandatorily capped.
This bill is fully consistent with the Buckley decision. I ask unanimous consent that a letter signed by 126 legal scholars expressing
support for the constitutionality of this bill be printed in the Record at this time.

There being no objection, the material was ordered to be printed in the Record, as follows:

Brennan Center for Justice,
New York, NY, September 22, 1997.

Senator John McCain,

Senator Russell Feingold,
U.S. Senate, Washington, DC.

Dear Senators McCain and Feingold: We are academics who have studied and written about the First Amendment to the
United States Constitution. We submit this letter to respond to a series of recent public challenges to two components of S. 25, the
McCain-Feingold bill. Critics have argued that it is unconstitutional to close the so-called `soft money loophole' by placing
restrictions on the source and amount of campaign contributions to political parties. Critics have also argued that it is
unconstitutional to offer candidates benefits, such as reduced broadcasting rates, in return for their commitment to cap campaign
spending. We are deeply committed to the principles underlying the First Amendment and believe strongly in preserving free
speech and association in our society, especially in the realm of politics. We are not all of the same mind on how best to address
the problems of money and politics; indeed, we do not all agree on the constitutionality of various provisions of the
McCain-Feingold bill itself. Nor are we endorsing every aspect of the bill's soft money and voluntary spending limits provisions.
We all agree, however, that the current debate on the merits of campaign finance reform is being sidetracked by the argument that
the Constitution stands in the way of a ban on unlimited contributions to political parties and a voluntary spending limits scheme
based on offering inducements such as reduced media time.

I. LIMITS ON ENORMOUS CAMPAIGN CONTRIBUTIONS TO POLITICAL PARTIES FROM
CORPORATIONS, LABOR UNIONS, AND WEALTHY CONTRIBUTORS ARE
CONSTITUTIONAL

To prevent corruption and the appearance of corruption, federal law imposes limits on the source and amount of money that can
be given to candidates and political parties `in connection with' federal elections. The money raised under these strictures is
commonly referred to as `hard money.' Since 1907, federal law has prohibited corporations from making hard money contributions
to candidates or political parties. See 2 U.S.C. 441b(a) (current codification). In 1947, that ban was extended to prohibit union
contributions as well. Id. Individuals, too, are subject to restrictions in their giving of money to influence federal elections. The
Federal Election Campaign Act (`FECA') limits an individual's contributions to (1) $1,000 per election to a federal candidate; (2)
$20,000 per year to national political party committees; and (3) $5,000 per year to any other political committee, such as a PAC or
a state political party committee. 2 U.S.C. Sec. 441a(a)(1). Individuals are also subject to a $25,000 annual limit on the total of all
such contributions. Id. 441a(a)(3).

The soft money loophole was created not by Congress, but by a Federal Election Commission (`FEC') ruling in 1978 that opened a
seemingly modest door to allow non-regulated contributions to political parties, so long as the money was used for grassroots
campaign activity, such as registering voters and get-out-the-vote efforts. These unregulated contributions are known as `soft
money' to distinguish them from the hard money raised under FECA's strict limits. In the years since the FEC's ruling, this modest
opening has turned into an enormous loophole that threatens the integrity of the regulatory system. In the last presidential elections,
soft money contributions soared to the unprecedented figure of $263 million. It was not merely the total amount of soft money
contributions that was unprecedented, but the size of the contributions as well, with donors being asked to give amounts $100,000,
$250,000 or more to gain preferred access to federal officials. Moreover, the soft money raised is, for the most part, not being
spent to bolster party grassroots organizing. Rather, the funds are often solicited by federal candidates and used for media
advertising clearly intended to influence federal elections. In sum, soft money has become an end run around the campaign
contribution limits, creating a corrupt system in which monied interests appear to buy access to, and inappropriate influence with,
elected officials.

The McCain-Feingold bill would ban soft money contributions to national political parties, by requiring that all contributions to
national parties be subject to FECA's hard money restrictions. The bill also would bar federal officeholders and candidates for
such offices from soliciting, receiving, or spending soft money and would prohibit state and local political parties from spending soft
money during a federal election year for any activity that might affect a federal election (with exceptions for specified activities
that are less likely to impact on federal elections).

We believe that such restrictions are constitutional. The soft money loophole has raised the specter of corruption stemming from
large contributions (and those from prohibited sources) that led Congress to enact the federal contribution limits in the first place.
In Buckley v. Valeo, the Supreme Court held that the government has a compelling interest in combating the appearance and
reality of corruption, an interest that justifies restricting large campaign contributions in federal elections. 424 U.S. 1, 23-29 (1976).
Significantly, the Court upheld the $25,000 annual limit on an individual's total contributions in connection with federal elections. Id.
at 26-29, 38. In later cases, the Court rejected the argument that corporations have a right to use their general treasury funds to
influence elections. See, e.g., Austin v. Michigan Chamber of Commerce, 494 U.S. 652 (1990). Under Buckley and its progeny,
Congress clearly possesses power to close the soft money loophole by restricting the source and size of contributions to political
parties, just as it does for contributions to candidates, for use in connection with federal elections.

Moreover, Congress has the power to regulate the source of the money used for expenditures by state and local parties during
federal election years when such expenditures are used to influence federal elections. The power of Congress to regulate federal
elections to prevent fraud and corruption includes the power to regulate conduct which, although directed at state or local
elections, also has an impact on federal races. During a federal election year, a state or local political party's voter registration or
get-out-the-vote drive will have an effect on federal elections. Accordingly, Congress may require that during a federal election
year state and local parties' expenditures for such activities be made from funds raised in compliance with FECA so as not to
undermine the limits therein.

Any suggestion that the recent Supreme Court decision in Colorado Republican Federal Campaign Committee v. FEC, 116 S. Ct.
2309 (1996), casts doubt on the constitutionality of a soft money ban is flatly wrong. Colorado Republican did not address the
constitutionality of banning soft money contributions, but rather the expenditures by political parties of hard money, that is, money
raised in accordance with FECA's limits. Indeed, the Court noted that it `could understand how Congress, were it to conclude that
the potential for evasion of the individual contribution limits was a serious matter, might decide to change the statute's limitations on
contributions to political parties.' Id. at 2316.

In fact, the most relevant Supreme Court decision is not Colorado Republican, but Austin v. Michigan Chamber of Commerce, in
which the Supreme Court held that corporations can be walled off from the electoral process by forbidding both contributions and
independent expenditures from general corporate treasuries. 494 U.S. at 657-61. Surely, the law cannot be that Congress has the
power to prevent corporations from giving money directly to a candidate, or from expending money on behalf of a candidate, but
lacks the power to prevent them from pouring unlimited funds into a candidate's political party in order to buy preferred access to
him after the election.

Accordingly, closing the loophole for soft money contributions is in line with the longstanding and constitutional ban on corporate
and union contributions in federal elections and with limits on the size of individuals' contributions to amounts that are not
corrupting.

II. EFFORTS TO PERSUADE CANDIDATES TO LIMIT CAMPAIGN SPENDING
VOLUNTARILY BY PROVIDING THEM WITH INDUCEMENTS LIKE FREE TELEVISION
TIME ARE CONSTITUTIONAL

The McCain-Feingold bill would also invite candidates to limit campaign spending in return for free broadcast time and reduced
broadcast and mailing rates. In Buckley, the Court explicitly declared that `Congress . . . may condition acceptance of public funds
on an agreement by the candidate to abide by specified expenditure limitations.' 424 U.S. at 56 n.65. The Court explained: `Just as
a candidate may voluntarily limit the size of the contributions he chooses to accept, he may decide to forgo private fundraising and
accept public funding.' Id.

That was exactly the Buckley Court's approach when it upheld the constitutionality of the campaign subsidies to Presidential
candidates in return for a promise to limit campaign spending. At the time, the subsidy to Presidential nominees was $20 million, in
return for which Presidential candidates agreed to cap expenditures at that amount and raise no private funds at all. The subsidy is
now worth over $60 million and no Presidential nominee of a major party has ever turned down the subsidy.

In effect, the critics argue that virtually any inducement offered to a candidate to persuade her to limit campaign spending is
unconstitutional as a form of indirect `coercion.' But the Buckley Court clearly distinguished between inducements designed to
elicit a voluntary decision to limit spending and coercive mandates that impose involuntary spending ceilings. If giving a Presidential
candidate a $60 million subsidy is a constitutional inducement, surely providing free television time and reduced postal rates falls
into the same category of acceptable inducement. The lesson from Buckley is that merely because a deal is too good to pass up
does not render it unconstitutionally `coercive.'

Respectfully submitted,

RONALD DWORKIN,

Professor of Jurisprudence and Fellow of University College at Oxford University; Frank H. Sommer Professor of Law, New
York University School of Law.

BURT NEUBORNE,

John Norton Pomeroy Professor of Law, Legal Director, Brennan Center for Justice, New York University School of Law.

Mr. McCAIN. What the modified bill seeks to do is establish a so-called bright line test 60 days out from an election. Any
independent expenditures that fall within that 60-day window could not use a candidate's name or his or her likeness. During this
60-day period, ads could run that advocate any number of issues. Pro-life ads, pro-choice ads, antilabor ads, prowilderness ads,
pro-Republican party or Democratic party ads--all could be aired without restriction. However, ads mentioning candidates
themselves could not be aired.

This accomplishes much. First, if soft money is banned to the political parties, such money will inevitably flow to independent
campaign organizations. These groups often run ads that the candidates themselves disapprove of. Further, these ads are almost
always negative attack ads and do little to further beneficial debate and a healthy political dialog. To be honest, they simply drive
up an individual candidate's negative polling numbers and increase public cynicism for public service in general.

The modified bill explicitly protects voter guides. I believe this is a very important point. Some have unfairly criticized the original
bill because they thought it banned or prohibited the publication and distribution of voter guides and voting records. While I
disagree with those individual's conclusions, the sponsors of the modified bill sought to clarify this matter.

Let me state that voter guides are completely protected in the modified bill. Any statements to the contrary are simply not true.

Some of my colleagues have voiced concern about the 60-day bright line test as being arbitrary. They have noted that different
standards would exist prior to 60 days out. They are right. But what is their point. Election law is riddled with deadlines and time
frames. When a candidate runs for office, he or she must file papers by a certain date. In order to appear on the ballot, certain
deadlines must be met, certain events must occur. What is their point. Would they advocate abolishing all time frames and just let
elections occur as spontaneous events? I don't think so.

I hope that we will not allow our attention to be distracted from the real issues at hand--how to raise the tenor of the debate in our
elections and give people real choices. No one benefits from negative ads. They don't aid our Nation's political dialog. Again, if
someone chooses to run negative ads, this bill will not restrict their right to do so. But we should not just throw up our hands and
say, `Who cares?' We should seek, within the protections of the Constitution, to encourage a healthy political debate.

I believe that in 1994 it was not better funding and more money that gave Republicans victory; it was better and more ideas. If
money was the key to Republican victory, why then did it take so long?

I am very serious about this point. Some have stated that money helps equalize the Republican Party's ability to win elections due
to the liberal press. If that is true, then why didn't it work? Since 1974, when we last reformed the campaign finance system,
throughout the 1970's and 1980's and 1990's, Republicans routinely have outraised and outspent Democrats. Yet, with the
exception of 1980 to 1986 in the Senate, we did not control the Congress. I would argue that the 6 years in which we controlled
the Senate during the 1980's was due to the strength and leadership of Ronald Reagan; not our ability to spend.

When we took over the Congress in 1994--and I say this not to agitate my Democrat colleagues--it was not due to money. It was
due to our superior ideas. It was due to the Contract With America. It was due to a fundamental change in the views of the
American electorate. It was not due to a spate of negative campaign advertising.

Title III of the modified bill mandates greater disclosure. Our bill mandates that all FEC filings documenting campaign receipts and
expenditures be made electronically and that they then be made accessible to the public on the Internet not later than 24 hours
after the information is received by the Federal Election Commission.

Additionally, current law allows for campaigns to make a `best effort' to obtain the name, address, and occupation information of
the donors, et cetera. The bill also mandates random audits of campaigns. Such audits would only occur after an affirmative vote
of at least four of the six members of the FEC. This will prevent the use of audits as a purely partisan attack.

Title IV seeks to encourage individuals to limit the amount of personal money they spend on their own campaigns. If an individual
voluntarily elects to limit the amount of money he or she spends in his or her race to $50,000, then the national parties are able to
use funds known as `coordinated expenditures' to aid such candidates. If candidates refuse to limit their own personal spending,
the parties are prohibited from contributing coordinated funds to the candidate.

This serves to limit the advantage that wealthy candidates enjoy and strengthens the party system by encouraging candidates to
work more closely with the parties.

Lastly, the bill codifies the Beck decision, which states that nonunion employees in a closed-shop union workplace who are
required to contribute funds to the union can request and ensure that his or her money not be used for political purposes.

I personally support stronger language. I believe no individual should be forced to contribute to political

activities. However, I recognize stronger language would invite a filibuster of this bill and would doom its final passage.

Mr. President, what I have outlined is a basic summary of our modification to the original bill.

I have heard many colleagues say that they could not support S. 25, the original McCain-Feingold bill, for a wide variety of
reasons. Some oppose spending limits. Others oppose free or reduced rate broadcast time. Yet others could not live with postal
subsidies to candidates, and others complain that nothing was being done about labor.

Again, as I stated in the opening debate on Friday, I hope all of my colleagues who made such statements will take a new and
openminded look at this bill. Gone are spending limits. Gone is free broadcast time. Gone are reduced rate TV time and postal
subsidies. We have sought to address the problem of undue influence being exercised by the labor unions. All of the excuses of
the past are gone.

Mr. President, let me close again by emphasizing that the sponsors of this legislation have but one purpose--to enact a fair,
bipartisan campaign reform that seeks no advantage for one party or the other but only seeks to find common ground upon which
we can all agree to pass the best, most balanced, and most important reform we have ever had.

All we ask of our colleagues is that they approach this debate with the same purpose in mind.

To those who accuse the opponents of this bill of being unyielding in their opposition to any reform, let me recite the words of my
friend from Kentucky from an op-ed piece he wrote for the Washington Post in 1993. My friend, Senator McConnell from
Kentucky, said:

`The truth is that Republicans support a ban on all soft money,' Senator McConnell wrote, `regardless of whether it benefits
Republicans or Democrats.'

Let me repeat that.

`The truth is that Republicans support a ban on all soft money,' Senator McConnell wrote, `regardless of whether it benefits
Republicans or Democrats.'

The Senator went on to identify himself and the Republican Party with the advocates of reform:

Truly campaign finance reform is needed--

truly campaign finance reform is needed--
but it should not have to cost the taxpayers, and it does not have to include spending limits. If we are going to pass a meaningful
bipartisan campaign finance bill, we must drop the roadblocks to reform: taxpayers financing and spending limits.

Mr. President, I say to my friend from Kentucky that, as a sign of our good faith, the sponsors of this bill have listened to his
objections, and we have dropped the provisions which he once criticized as roadblocks. Moreover, we share Senator
McConnell's view that soft money must be banned.

I would say that we are very close to the proposed reforms that Senator McConnell proposed in 1993. We pled with our
colleagues not to use the amendment process only to kill the prospects for real reform by offering amendments intended to be, as
Senator McConnell put it, `roadblocks' to reform.

If Senator McConnell is as sincere in proposing reforms as he was a few years ago--which I do not doubt--work with us to
resolve our very few remaining differences and help us reach our common goal of genuine campaign finance reform.

MODIFICATION TO S. 25

Mr. McCAIN. Mr. President, I send the modification to the desk.

The PRESIDING OFFICER. The bill is so modified.

The modification is as follows:
Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title: This Act may be cited as the `Bipartisan Campaign Reform Act of 1997'.
(b) Table of Contents: The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

Sec. 101. Soft money of political parties.

Sec. 102. Increased contribution limits for State committees of political parties and aggregate contribution limit for
individuals.

Sec. 103. Reporting requirements.

TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

Sec. 201. Definitions.

Sec. 202. Civil penalty.

Sec. 203. Reporting requirements for certain independent expenditures.

Sec. 204. Independent versus coordinated expenditures by party.

Sec. 205. Coordination with candidates.

TITLE III--DISCLOSURE

Sec. 301. Filing of reports using computers and facsimile machines; filing by Senate candidates with Commission.

Sec. 302. Prohibition of deposit of contributions with incomplete contributor information.

Sec. 303. Audits.

Sec. 304. Reporting requirements for contributions of $50 or more.

Sec. 305. Use of candidates' names.

Sec. 306. Prohibition of false representation to solicit contributions.

Sec. 307. Soft money of persons other than political parties.

Sec. 308. Campaign advertising.

TITLE IV--PERSONAL WEALTH OPTION

Sec. 401. Voluntary personal funds expenditure limit.

Sec. 402. Political party committee coordinated expenditures.

TITLE V--MISCELLANEOUS

Sec. 501. Codification of Beck decision.

Sec. 502. Use of contributed amounts for certain purposes.

Sec. 503. Limit on congressional use of the franking privilege.

Sec. 504. Prohibition of fundraising on Federal property.

Sec. 505. Penalties for knowing and willful violations.

Sec. 506. Strengthening foreign money ban.

Sec. 507. Prohibition of contributions by minors.

Sec. 508. Expedited procedures.

Sec. 509. Initiation of enforcement proceeding.

TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE
DATE; REGULATIONS

Sec. 601. Severability.

Sec. 602. Review of constitutional issues.

Sec. 603. Effective date.

Sec. 604. Regulations.

TITLE I--REDUCTION OF SPECIAL INTEREST INFLUENCE

SEC. 101. SOFT MONEY OF POLITICAL PARTIES.
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. SOFT MONEY OF POLITICAL PARTIES.
`(a) National Committees:

`(1) In general: A national committee of a political party (including a national congressional campaign committee of a political
party) and any officers or agents of such party committees, shall not solicit, receive, or direct to another person a contribution,
donation, or transfer of funds, or spend any funds, that are not subject to the limitations, prohibitions, and reporting requirements of
this Act.

`(2) Applicability: This subsection shall apply to an entity that is directly or indirectly established, financed, maintained, or
controlled by a national committee of a political party (including a national congressional campaign committee of a political party),
or an entity acting on behalf of a national committee, and an officer or agent acting on behalf of any such committee or entity.
`(b) State, District, and Local Committees:

`(1) In general: An amount that is expended or disbursed by a State, district, or local committee of a political party (including an
entity that is directly or indirectly established, financed, maintained, or controlled by a State, district, or local committee of a
political party and an officer or agent acting on behalf of such committee or entity) for Federal election activity shall be made from
funds subject to the limitations, prohibitions, and reporting requirements of this Act.

`(2) Federal election activity:

`(A) In general: The term `Federal election activity' means--

`(i) voter registration activity during the period that begins on the date that is 120 days before the date a regularly scheduled
Federal election is held and ends on the date of the election;

`(ii) voter identification, get-out-the-vote activity, or generic campaign activity conducted in connection with an election in which a
candidate for Federal office appears on the ballot (regardless of whether a candidate for State or local office also appears on the
ballot); and

`(iii) a communication that refers to a clearly identified candidate for Federal office (regardless of whether a candidate for State or
local office is also mentioned or identified) and is made for the purpose of influencing a Federal election (regardless of whether the
communication is express advocacy).

`(B) Excluded activity: The term `Federal election activity' does not include an amount expended or disbursed by a State, district,
or local committee of a political party for--

`(i) campaign activity conducted solely on behalf of a clearly identified candidate for State or local office, provided the campaign
activity is not a Federal election activity described in subparagraph (A);

`(ii) a contribution to a candidate for State or local office, provided the contribution is not designated or used to pay for a Federal
election activity described in subparagraph (A);

`(iii) the costs of a State, district, or local political convention;

`(iv) the costs of grassroots campaign materials, including buttons, bumper stickers, and yard signs that name or depict only a
candidate for State or local office;

`(v) the non-Federal share of a State, district, or local party committee's administrative and overhead expenses (but not including
the compensation in any month of an individual who spends more than 20 percent of the individual's time on Federal election
activity) as determined by a regulation promulgated by the Commission to determine the non-Federal share of a State, district, or
local party committee's administrative and overhead expenses; and

`(vi) the cost of constructing or purchasing an office facility or equipment for a State, District or local committee.

`(c) Fundraising Costs: An amount spent by a national, State, district, or local committee of a political party, by an entity that is
established, financed, maintained, or controlled by a national, State, district, or local committee of a political party, or by an agent or
officer of any such committee or entity, to raise funds that are used, in whole or in part, to pay the costs of a Federal election
activity shall be made from funds subject to the limitations, prohibitions, and reporting requirements of this Act.
`(d) Tax-Exempt Organizations: A national, State, district, or local committee of a political party (including a national
congressional campaign committee of a political party, an entity that is directly or indirectly established, financed, maintained, or
controlled by any such national, State, district, or local committee or its agent, an agent acting on behalf of any such party
committee, and an officer or agent acting on behalf of any such party committee or entity), shall not solicit any funds for, or make
or direct any donations to, an organization that is described in section 501(c) of the Internal Revenue Code of 1986 and exempt
from taxation under section 501(a) of such Code (or has submitted an application to the Secretary of the Internal Revenue Service
for determination of tax-exemption under such section).
`(e) Candidates:

`(1) In general: A candidate, individual holding Federal office, or agent of a candidate or individual holding Federal office shall not
solicit, receive, direct, transfer, or spend funds for a Federal election activity on behalf of such candidate individual, agent or any
other person unless the funds are subject to the limitations, prohibitions, and reporting requirements of this Act.

`(A) State law: Paragraph (1) does not apply to the solicitation or receipt of funds by an individual who is a candidate for a State
or local office if the solicitation or receipt of funds is permitted under State law for any activity other than a Fedral election
activity.

`(B) Fundraising events: Paragraph (1) does not apply in the case of a candidate who attends, speaks, or is a featured guest at a
fundraising event sponsored by a State, district, or local committee of a political party.'.

SEC. 102. INCREASED CONTRIBUTION LIMITS FOR STATE COMMITTEES OF POLITICAL PARTIES AND
AGGREGATE CONTRIBUTION LIMIT FOR INDIVIDUALS.
(a) Contribution Limit for State Committees of Political Parties: Section 315(a)(1) of the Federal Election Campaign Act of
1971 (2 U.S.C. 441a(a)(1)) is amended--

(1) in subparagraph (B), by striking `or' at the end;

(2) in subparagraph (C)--

(A) by inserting `(other than a committee described in subparagraph (D))' after `committee'; and

(B) by striking the period at the end and inserting `; or'; and

(3) by adding at the end the following:

`(D) to a political committee established and maintained by a State committee of a political party in any calendar year that, in the
aggregate, exceed $10,000'.
(b) Aggregate Contribution Limit for Individual: Section 315(a)(3) of the Federal Election Campaign Act of 1971 (2 U.S.C.
441a(a)(3)) is amended by striking `$25,000' and inserting `$30,000'.

SEC. 103. REPORTING REQUIREMENTS.
(a) Reporting Requirements: Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by
section 203) is amended by adding at the end the following:
`(e) Political Committees:

`(1) National and congressional political committees: The national committee of a political party, any national congressional
campaign committee of a political party, and any subordinate committee of either, shall report all receipts and disbursements during
the reporting period.

`(2) Other political committees to which section 324 applies: A political committee (not described in paragraph (1)) to which
section 324(b)(1) applies shall report all receipts and disbursements made for activities described in paragraphs (2) and (3)(A)(v)
of section 324(b).

`(3) Itemization: If a political committee has receipts or disbursements to which this subsection applies from any person
aggregating in excess of $200 for any calendar year, the political committee shall separately itemize its reporting for such person in
the same manner as required in paragraphs (3)(A), (5), and (6) of subsection (b).

`(4) Reporting periods: Reports required to be filed under this subsection shall be filed for the same time periods required for
political committees under subsection (a).'.
(b) Building Fund Exception to the Definition of 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 clause (viii); and

(2) by redesignating clauses (ix) through (xiv) as clauses (viii) through (xiii), respectively.  

[Page: S10108]

TITLE II--INDEPENDENT AND COORDINATED EXPENDITURES

SEC. 201. DEFINITIONS.
(a) Definition of Independent Expenditure: Section 301 of the Federal Election Campaign Act (2 U.S.C. 431) is amended by
striking paragraph (17) and inserting the following:

`(17) Independent expenditure:

`(A) In general: The term `independent expenditure' means an expenditure by a person--

`(i) for a communication that is express advocacy; and

`(ii) that is not provided in coordination with a candidate or a candidate's agent or a person who is coordinating with a candidate or
a candidate's agent.'.
(b) Definition of Express Advocacy: 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) Express Advocacy:

`(A) In general: The term `express advocacy' means a communication that advocates the election or defeat of a candidate by--

`(i) containing a phrase such as `vote for', `re-elect', `support', `cast your ballot for', `(name of candidate) for Congress', `(name of
candidate) in 1997', `vote against', `defeat', `reject', or a campaign slogan or words that in context can have no reasonable meaning
other than to advocate the election or defeat of 1 or more clearly identified candidates;

`(ii) referring to 1 or more clearly identified candidates in a paid advertisement that is broadcast by a radio broadcast station or a
television broadcast station within 60 calendar days preceding the date of an election of the candidate and that appears in the State
in which the election is occurring, except that with respect to a candidate for the office of Vice President or President, the time
period is within 60 calendar days preceding the date of a general election; or

`(iii) expressing unmistakable and unambiguous support for or opposition to 1 or more clearly identified candidates when taken as a
whole and with limited reference to external events, such as proximity to an election.

`(B) Voting record and voting guide exception: The term `express advocacy' does not include a printed communication that--

`(i) presents information in an educational manner solely about the voting record or position on a campaign issue of 2 or more
candidates;

`(ii) that is not made in coordination with a candidate, political party, or agent of the candidate or party; or a candidate's agent or a
person who is coordinating with a candidate or a candidate's agent;

`(iii) does not contain a phrase such as `vote for', `re-elect', `support', `cast your ballot for', `(name of candidate) for Congress',
`(name of candidate) in 1997', `vote against', `defeat', or `reject', or a campaign slogan or words that in context can have no
reasonable meaning other than to urge the election or defeat of 1 or more clearly identified candidates.'.
(c) Definition of Expenditure: Section 301(9)(A) of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)) is
amended--

(1) in clause (i), by striking `and' at the end;

(2) in clause (ii), by striking the period at the end and inserting `; and'; and

(3) by adding at the end the following:

`(iii) a payment for a communication that is express advocacy; and

`(iv) a payment made by a person for a communication that--

`(I) refers to a clearly identified candidate;

`(II) is provided in coordination with the candidate, the candidate's agent, or the political party of the candidate; and

`(III) is for the purpose of influencing a Federal election (regardless of whether the communication is express advocacy).'

SEC. 202. CIVIL PENALTY.
Section 309 of the Federal Election Campaign Act of 1971 (2 U.S.C. 437g) is amended--

(1) in subsection (a)--

(A) in paragraph (4)(A)--

(i) in clause (i), by striking `clause (ii)' and inserting `clauses (ii) and (iii)'; and

(ii) by adding at the end the following:
`(iii) If the Commission determines by an affirmative vote of 4 of its members that there is probable cause to believe that a person
has made a knowing and willful violation of section 304(c), the Commission shall not enter into a conciliation agreement under this
paragraph and may institute a civil action for relief under paragraph (6)(A).'; and

(B) in paragraph (6)(B), by inserting `(except an action instituted in connection with a knowing and willful violation of section
304(c))' after `subparagraph (A)'; and

(2) in subsection (d)(1)--

(A) in subparagraph (A), by striking `Any person' and inserting `Except as provided in subparagraph (D), any person'; and

(B) by adding at the end the following:
`(D) In the case of a knowing and willful violation of section 304(c) that involves the reporting of an independent expenditure, the
violation shall not be subject to this subsection.'.

SEC. 203. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT EXPENDITURES.
Section 304(c) of the Federal Election Campaign Act of 1971 (2 U.S.C. 434(c)) is amended--

(1) in paragraph (2), by striking the undesignated matter after subparagraph (C);

(2) by redesignating paragraph (3) as paragraph (7); and

(3) by inserting after paragraph (2) (as amended by paragraph (1)) the following:
`(d) Time for Reporting Certain Expenditures:

`(1) Expenditures aggregating $1,000:

`(A) Initial report: A person (including a political committee) that makes or contracts to make independent expenditures
aggregating $1,000 or more after the 20th day, but more than 24 hours, before the date of an election shall file a report describing
the expenditures within 24 hours after that amount of independent expenditures has been made.

`(B) Additional reports: After a person files a report under subparagraph (A), the person shall file an additional report within 24
hours after each time the person makes or contracts to make independent expenditures aggregating an additional $1,000 with
respect to the same election as that to which the initial report relates.

`(2) Expenditures aggregating $10,000:

`(A) Initial report: A person (including a political committee) that makes or contracts to make independent expenditures
aggregating $10,000 or more at any time up to and including the 20th day before the date of an election shall file a report
describing the expenditures within 48 hours after that amount of independent expenditures has been made.

`(B) Additional reports: After a person files a report under subparagraph (A), the person shall file an additional report within 48
hours after each time the person makes or contracts to make independent expenditures aggregating an additional $10,000 with
respect to the same election as that to which the initial report relates.

`(3) Place of filing; contents: A report under this subsection--

`(A) shall be filed with the Commission; and

`(B) shall contain the information required by subsection (b)(6)(B)(iii), including the name of each candidate whom an expenditure
is intended to support or oppose.'.

SEC. 204. INDEPENDENT VERSUS COORDINATED EXPENDITURES BY PARTY.
Section 315(d) of the Federal Election Campaign Act (2 U.S.C. 441a(d)) is amended--

(1) in paragraph (1), by striking `and (3)' and inserting `, (3), and (4)'; and

(2) by adding at the end the following:

`(4) Independent versus coordinated expenditures by party:

`(A) In general: On or after the date on which a political party nominates a candidate, a committee of the political party shall not
make both expenditures under this subsection and independent expenditures (as defined in section 301(17)) with respect to the
candidate during the election cycle.

`(B) Certification: Before making a coordinated expenditure under this subsection with respect to a candidate, a committee of a
political party shall file with the Commission a certification, signed by the treasurer of the committee, that the committee has not
and shall not make any independent expenditure with respect to the candidate during the same election cycle.

`(C) Application: For the purposes of this paragraph, all political committees established and maintained by a national political
party (including all congressional campaign committees) and all political committees established and maintained by a State political
party (including any subordinate committee of a State committee) shall be considered to be a single political committee.

`(D) Transfers: A committee of a political party that submits a certification under subparagraph (B) with respect to a candidate
shall not, during an election cycle, transfer any funds to, assign authority to make coordinated expenditures under this subsection
to, or receive a transfer of funds from, a committee of the political party that has made or intends to make an independent
expenditure with respect to the candidate.'.

SEC. 205. COORDINATION WITH CANDIDATES.
(a) Definition of Coordination With Candidates.--

(1) Section 301(8): Section 301(8) of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)) is amended--

(A) in subparagraph (A)--

(i) by striking `or' at the end of clause (i);

(ii) by striking the period at the end of clause (ii) and inserting `; or'; and

(iii) by adding at the end the following:

`(iii) anything of value provided by a person in coordination with a candidate for the purpose of influencing a Federal election,
regardless of whether the value being provided is a communication that is express advocacy, in which such candidate seeks
nomination or election to Federal office.'; and

(B) by adding at the end the following:

`(C) The term `provided in coordination with a candidate' includes--

`(i) a payment made by a person in cooperation, consultation, or concert with, at the request or suggestion of, or pursuant to any
general or particular understanding with a candidate, the candidate's authorized committee, or an agent acting on behalf of a
candidate or authorized committee;

`(ii) a payment made by a person for the production, dissemination, distribution, or republication, in whole or in part, of any
broadcast or any written, graphic, or other form of campaign material prepared by a candidate, a candidate's authorized
committee, or an agent of a candidate or authorized committee (not including a communication described in paragraph (9)(B)(i) or
a communication that expressly advocates the candidate's defeat);

`(iii) a payment made by a person based on information about a candidate's plans, projects, or needs provided to the person making
the payment by the candidate or the candidate's agent who provides the information with the intent that the payment be made;

`(iv) a payment made by a person if, in the same election cycle in which the payment is made, the person making the payment is
serving or has served as a member, employee, fundraiser, or agent of the candidate's authorized committee in an executive or
policymaking position;

`(v) a payment made by a person if the person making the payment has served in any formal policy making or advisory position
with the candidate's campaign or has participated in formal strategic or formal policymaking discussions with the candidate's
campaign relating to the candidate's pursuit of nomination for election, or election, to Federal office, in the same election cycle as
the election cycle in which the payment is made;

`(vi) a payment made by a person if, in the same election cycle, the person making the payment retains the professional services of
any person that has provided or is providing campaign-related services in the same election cycle to a candidate in connection with
the candidate's pursuit of nomination for election, or election, to Federal office, including services relating to the candidate's
decision to seek Federal office, and the person retained is retained to work on activities relating to that candidate's campaign;

`(vii) a payment made by a person who has engaged in a coordinated activity with a candidate described in clauses (i) through (vi)
for a communication that clearly refers to the candidate and is for the purpose of influencing an election (regardless of whether
the communication is express advocacy);

`(viii) direct participation by a person in fundraising activities with the candidate or in the solicitation or receipt of contributions on
behalf of the candidate;

`(ix) communication by a person with the candidate or an agent of the candidate, occuring after the declaration of candidacy
(including a pollster, media consultant, vendor, advisor, or staff member), acting on behalf of the candidate, about advertising
message, allocation of resources, fundraising, or other campaign matters related to the candidate's campaign, including campaign
operations, staffing, tactics, or strategy; or

`(x) the provision of in-kind professional services or polling data to the candidate or candidate's agent.

`(D) For purposes of subparagraph (C), the term `professional services' includes services in support of a candidate's pursuit of
nomination for election, or election, to Federal office such as polling, media advice, direct mail, fundraising, or campaign research.

`(E) For purposes of subparagraph (C), all political committees established and maintained by a national political party (including all
congressional campaign committees) and all political committees established and maintained by a State political party (including
any subordinate committee of a State committee) shall be considered to be a single political committee.'.

(2) Section 315(a)(7): Section 315(a)(7) (2 U.S.C. 441a(a)(7)) is amended by striking subparagraph (B) and inserting the
following:

`(B) a thing of value provided in coordination with a candidate, as described in section 301(8)(A)(iii), shall be considered to be a
contribution to the candidate, and in the case of a limitation on expenditures, shall be treated as an expenditure by the candidate.
(b) Meaning of Contribution or Expenditure for the Purposes of Section 316: Section 316(b)(2) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441b(b)) is amended by striking `shall include' and inserting `includes a contribution or
expenditure, as those terms are defined in section 301, and also includes'.

TITLE III--DISCLOSURE

SEC. 301. FILING OF REPORTS USING COMPUTERS AND FACSIMILE MACHINES; FILING BY SENATE
CANDIDATES WITH COMMISSION.
(a) Use of Computer and Facsimile Machine: Section 302(a) of the Federal Election Campaign Act of 1971 (2 U.S.C. 434(a))
is amended by striking paragraph (11) and inserting the following:

`(11)(A) The Commission shall promulgate a regulation under which a person required to file a designation, statement, or report
under this Act--

`(i) is required to maintain and file a designation, statement, or report for any calendar year in electronic form accessible by
computers if the person has, or has reason to expect to have, aggregate contributions or expenditures in excess of a threshold
amount determined by the Commission; and

`(ii) may maintain and file a designation, statement, or report in electronic form or an alternative form, including the use of a
facsimile machine, if not required to do so under the regulation promulgated under clause (i).

`(B) The Commission shall make a designation, statement, report, or notification that is filed electronically with the Commission
accessible to the public on the Internet not later than 24 hours after the designation, statement, report, or notification is received by
the Commission.

`(C) In promulgating a regulation under this paragraph, the Commission shall provide methods (other than requiring a signature on
the document being filed) for verifying designations, statements, and reports covered by the regulation. Any document verified
under any of the methods shall be treated for all purposes (including penalties for perjury) in the same manner as a document
verified by signature.'.
(b) Senate Candidates File With Commission: Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is
amended--

(1) in section 302, by striking subsection (g) and inserting the following:
`(g) Filing With the Commission: All designations, statements, and reports required to be filed under this Act shall be filed with
the Commission.'; and

(2) in section 304--

(A) in subsection (a)(6)(A), by striking `the Secretary or'; and

(B) in the matter following subsection (c)(2), by striking `the Secretary or'.

SEC. 302. PROHIBITION OF DEPOSIT OF CONTRIBUTIONS WITH INCOMPLETE CONTRIBUTOR INFORMATION.

Section 302 of Federal Election Campaign Act of 1971 (2 U.S.C. 432) is amended by adding at the end the following:
`(j) Deposit of Contributions: The treasurer of a candidate's authorized committee shall not deposit, except in an escrow
account, or otherwise negotiate a contribution from a person who makes an aggregate amount of contributions in excess of $200
during a calendar year unless the treasurer verifies that the information required by this section with respect to the contributor is
complete.'.

SEC. 303. 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) In general: ' before `The Commission'; and

(2) by adding at the end the following:

`(2) Random audits:

`(A) In general: Notwithstanding paragraph (1), the Commission may conduct random audits and investigations to ensure
voluntary compliance with this Act. The selection of any candidate for a random audit or investigation shall be based on criteria
adopted by a vote of at least 4 members of the Commission.

`(B) Limitation: The Commission shall not conduct an audit or investigation of a candidate's authorized committee under
subparagraph (A) until the candidate is no longer a candidate for the office sought by the candidate in an election cycle.

`(C) Applicability: This paragraph does not apply to an authorized committee of a candidate for President or Vice President
subject to audit under section 9007 or 9038 of the Internal Revenue Code of 1986.'.
(b) Extension of Period During Which Campaign 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 `6 months' and inserting `12 months'.

SEC. 304. REPORTING REQUIREMENTS FOR CONTRIBUTIONS OF $50 OR MORE.
Section 304(b)(3)(A) of the Federal Election Campaign Act at 1971 (2 U.S.C. 434(b)(3)(A) is amended--

(1) by striking `$200' and inserting `$50'; and

(2) by striking the semicolon and inserting `, except that in the case of a person who makes contributions aggregating at least $50
but not more than $200 during the calendar year, the identification need include only the name and address of the person;'.

SEC. 305. USE OF CANDIDATES' NAMES.
Section 302(e) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)) is amended by striking paragraph (4) and inserting
the following:

`(4)(A) The name of each authorized committee shall include the name of the candidate who authorized the committee under
paragraph (1).

`(B) A political committee that is not an authorized committee shall 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 candidate in any activity on behalf of the
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. 306. PROHIBITION OF FALSE REPRESENTATION TO SOLICIT CONTRIBUTIONS.
Section 322 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441h) is amended--

(1) by inserting after `Sec. 322.' the following: `(a) In General: '; and

(2) by adding at the end the following:
`(b) Solicitation of Contributions: No person shall solicit contributions by falsely representing himself or herself as a candidate
or as a representative of a candidate, a political committee, or a political party.'.

SEC. 307. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES.
(a) In General: Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 434) (as amended by section 103(c)) is
amended by adding at the end the following:
`(g) Disbursements of Persons Other Than Political Parties:

`(1) In general: A person, other than a political committee or a person described in section 501(d) of the Internal Revenue Code
of 1986, that makes an aggregate amount of disbursements in excess of $50,000 during a calendar year for activities described in
paragraph (2) shall file a statement with the Commission--

`(A) on a monthly basis as described in subsection (a)(4)(B); or

`(B) in the case of disbursements that are made within 20 days of an election, within 24 hours after the disbursements are made.

`(2) Activity: The activity described in this paragraph is--

`(A) Federal election activity;

`(B) an activity described in section 316(b)(2)(A) that expresses support for or opposition to a candidate for Federal office or a
political party; and

`(C) an activity described in subparagraph (C) of section 316(b)(2).

`(3) Applicability: This subsection does not apply to--

`(A) a candidate or a candidate's authorized committees; or

`(B) an independent expenditure.

`(4) Contents: A statement under this section shall contain such information about the disbursements made during the reporting
period as the Commission shall prescribe, including--

`(A) the aggregate amount of disbursements made;

`(B) the name and address of the person or entity to whom a disbursement is made in an aggregate amount in excess of $200;

`(C) the date made, amount, and purpose of the disbursement; and

`(D) if applicable, whether the disbursement was in support of, or in opposition to, a candidate or a political party, and the name of
the candidate or the political party.'.
(b) Definition of Generic Campaign Activity: Section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.)
(as amended by section 201(b)) is amended by adding at the end the following:
`(21) Generic campaign activity: The term `generic campaign activity' means an activity that promotes a political party and does
not promote a candidate or non-Federal candidate.'.

SEC. 308. CAMPAIGN ADVERTISING.
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 inserting `Whenever a political committee makes a disbursement for the purpose of financing any
communication through any broadcasting station, newspaper, magazine, outdoor advertising facility, mailing, 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:
`(c) Any printed communication described in subsection (a) shall--

`(1) be of sufficient type size to be clearly readable by the recipient of the communication;

`(2) be contained in a printed box set apart from the other contents of the communication; and

`(3) be printed with a reasonable degree of color contrast between the background and the printed statement.
`(d)(1) Any broadcast or cablecast communication described in paragraphs (1) or (2) of subsection (a) shall include, in addition to
the requirements of that paragraph, an audio statement by the candidate that identifies the candidate and states that the candidate
has approved the communication.
`(2) If a broadcast or cablecast communication described 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 that--

`(A) appears at the end of the communication in a clearly readable manner with a reasonable degree of color contrast between the
background and the printed statement, for a period of at least 4 seconds; and

`(B) is accompanied by a clearly identifiable photographic or similar image of the candidate.
`(e) Any broadcast or cablecast communication described in paragraph (3) of subsection (a) shall include, in addition to the
requirements of that paragraph, in a clearly spoken manner, the following statement: `XXXXXXXX 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
statement shall also appear in a clearly readable manner with a reasonable degree of color contrast between the background and
the printed statement, for a period of at least 4 seconds.'.

TITLE IV--PERSONAL WEALTH OPTION

SEC. 401. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as amended by section 101) is amended by adding
at the end the following:

`SEC. 325. VOLUNTARY PERSONAL FUNDS EXPENDITURE LIMIT.
`(a) Eligible Senate Candidate:

`(1) Primary election:

`(A) Declaration: A candidate is an eligible primary election Senate candidate if the candidate files with the Commission a
declaration that the candidate and the candidate's authorized committees will not make expenditures in excess of the personal
funds expenditure limit.

`(B) Time to file: The declaration under subparagraph (A) shall be filed not later than the date on which the candidate files with
the appropriate State officer as a candidate for the primary election.

`(2) General election:

`(A) Declaration: A candidate is an eligible general election Senate candidate if the candidate files with the Commission--

`(i) a declaration under penalty of perjury, with supporting documentation as required by the Commission, that the candidate and
the candidate's authorized committees did not exceed the personal funds expenditure limit in connection with the primary election;
and

`(ii) a declaration that the candidate and the candidate's authorized committees will not make expenditures in excess of the
personal funds expenditure limit.

`(B) Time to file: The declaration under subparagraph (A) shall be filed not later than 7 days after the earlier of--

`(i) the date on which the candidate qualifies for the general election ballot under State law; or

`(ii) if under State law, a primary or run-off election to qualify for the general election ballot occurs after September 1, the date on
which the candidate wins the primary or runoff election.
`(b) Personal Funds Expenditure Limit:

`(1) In general: The aggregate amount of expenditures that may be made in connection with an election by an eligible Senate
candidate or the candidate's authorized committees from the sources described in paragraph (2) shall not exceed $50,000.

`(2) Sources: A source is described in this paragraph if the source is--

`(A) personal funds of the candidate and members of the candidate's immediate family; or

`(B) proceeds of indebtedness incurred by the candidate or a member of the candidate's immediate family.
`(c) Certification by the Commission:

`(1) In general: The Commission shall determine whether a candidate has met the requirements of this section and, based on the
determination, issue a certification stating whether the candidate is an eligible Senate candidate.

`(2) Time for certification: Not later than 7 business days after a candidate files a declaration under paragraph (1) or (2) of
subsection (a), the Commission shall certify whether the candidate is an eligible Senate candidate.

`(3) Revocation: The Commission shall revoke a certification under paragraph (1), based on information submitted in such form
and manner as the Commission may require or on information that comes to the Commission by other means, if the Commission
determines that a candidate violates the personal funds expenditure limit.

`(4) Determinations by Commission: A determination made by the Commission under this subsection shall be final, except to
the extent that the determination is subject to examination and audit by the Commission and to judicial review.
`(d) Penalty: If the Commission revokes the certification of an eligible Senate candidate--

`(1) the Commission shall notify the candidate of the revocation; and

`(2) the candidate and a candidate's authorized committees shall pay to the Commission an amount equal to the amount of
expenditures made by a national committee of a political party or a State committee of a political party in connection with the
general election campaign of the candidate under section 315(d).'.

SEC. 402. POLITICAL PARTY COMMITTEE COORDINATED EXPENDITURES.
Section 315(d) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(d)) (as amended by section 204) is amended by
adding at the end the following:

`(5) This subsection does not apply to expenditures made in connection with the general election campaign of a candidate for the
Senate who is not an eligible Senate candidate (as defined in section 325(a)).'.

TITLE V--MISCELLANEOUS

SEC. 501. CODIFICATION OF BECK DECISION.
Section 8 of the National Labor Relations Act (29 U.S.C. 158) is amended by adding at the end the following new subsection:
`(h) Nonunion member payments to labor organization.

`(1) In General: It shall be an unfair labor practice for any labor organization which receives a payment from an employee
pursuant to an agreement that requires employees who are not members of the organization to make payments to such
organization in lieu of organization dues or fees not to establish and implement the objection procedure described in paragraph (2).

`(2) Objection Procedure: The objection procedure required under paragraph (1) shall meet the following requirements:

`(A) The labor organization shall annually provide to employees who are covered by such agreement but are not members of the
organization--

`(i) reasonable personal notice of the objection procedure, the employees eligible to invoke the procedure, and the time, place, and
manner for filing an objection; and

`(ii) reasonable opportunity to file an objection to paying for organization expenditures supporting political activities unrelated to
collective bargaining, including but not limited to the opportunity to file such objection by mail.

`(B) If an employee who is not a member of the labor organization files an objection under the procedure in subparagraph (A),
such organization shall--

`(i) reduce the payments in lieu of organization dues or fees by such employee by an amount which reasonably reflects the ratio
that the organization's expenditures supporting political activities unrelated to collective bargaining bears to such organization's total
expenditures;

`(ii) provide such employee with a reasonable explanation of the organization's calculation of such reduction, including calculating
the amount of organization expenditures supporting political activities unrelated to collective bargaining.

`(3) Definition: For purposes of this subsection, the term `expenditures supporting political activities unrelated to collective
bargaining' means expenditures in connection with a federal, state, or local election or in connection with efforts to influence
legislation unrelated to collective bargaining.'.

SEC. 502. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended by striking section 313 and inserting the
following:

`SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES.
`(a) Permitted Uses: A contribution accepted by a candidate, and any other amount received by an individual as support for
activities of the individual as a holder of Federal office, may be used by the candidate or individual--

`(1) for expenditures in connection with the campaign for Federal office of the candidate or individual;

`(2) for ordinary and necessary expenses incurred in connection with duties of the individual as a holder of Federal office;

`(3) for contributions to an organization described in section 170(c) of the Internal Revenue Code of 1986; or

`(4) for transfers to a national, State, or local committee of a political party.
`(b) Prohibited Use:

`(1) In general: A contribution or amount described in subsection (a) shall not be converted by any person to personal use.

`(2) Conversion: For the purposes of paragraph (1), a contribution or amount shall be considered to be converted to personal use
if the contribution or amount is used to fulfill any commitment, obligation, or expense of a person that would exist irrespective of
the candidate's election campaign or individual's duties as a holder of Federal officeholder, including--

`(A) a home mortgage, rent, or utility payment;

`(B) a clothing purchase;

`(C) a noncampaign-related automobile expense;

`(D) a country club membership;

`(E) a vacation or other noncampaign-related trip;

`(F) a household food item;

`(G) a tuition payment;

`(H) admission to a sporting event, concert, theater, or other form of entertainment not associated with an election campaign; and

`(G) dues, fees, and other payments to a health club or recreational facility.'.

SEC. 503. LIMIT ON CONGRESSIONAL USE OF THE FRANKING PRIVILEGE.
Section 3210(a)(6) of title 39, United States Code, is amended by striking subparagraph (A) and inserting the following:

`(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 reelection to that year or for
election to any other Federal office.'.

SEC. 504. PROHIBITION OF FUNDRAISING ON FEDERAL PROPERTY.

Section 607 of title 18, United States Code, is amended by--

(a) striking subsection (a) and inserting the following:
`(a) Prohibition:

`(1) In general: It shall be unlawful for any person to solitict or receive a donation of money or other thing of value for a political
committee or a candidate for Federal, State or local office from a person who is located in a room or building occupied in the
discharge of official duties by an officer or employee of the United States. An individual who is an officer or employee of the
Federal Government, including the President, Vice President, and Members of Congress, shall not make solicit a donation of
money or other thing of value for a political committee or candidate for Federal, State or local offices, while in any room or
building occupied in the discharge of official duties by an officer or employee of the United States, from any person.

`(2) Penalty: A person who violates this section shall be fined not more than $5,000, imprisoned more than 3 years, or both.'.

(b) Inserting a subsection (b) after `Congress' `or Executive Office of the President'.

SEC. 505. PENALTIES FOR KNOWING AND WILLFUL VIOLATIONS.
(a) Increased Penalties: Section 309(a) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)) is amended--

(1) in paragraphs (5)(A), (6)(A), and (6)(B), by striking `$5,000' and inserting `$10,000'; and

(2) in paragraphs (5)(B) and (6)(C), by striking `$10,000 or an amount equal to 200 percent' and inserting `$20,000 or an amount
equal to 300 percent'.
(b) Equitable Remedies: Section 309(a)(5)(A) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is amended
by striking the period at the end and inserting `, and may include equitable remedies or penalties, including disgorgement of funds to
the Treasury or community service requirements (including requirements to participate in public education programs).'.
(c) Automatic Penalty for Late Filing: 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:

`(13) Penalty for late filing:

`(A) In general:

`(i) Monetary penalties: The Commission shall establish a schedule of mandatory monetary penalties that shall be imposed by
the Commission for failure to meet a time requirement for filing under section 304.

`(ii) Required filing: In addition to imposing a penalty, the Commission may require a report that has not been filed within the time
requirements of section 304 to be filed by a specific date.

`(iii) Procedure: A penalty or filing requirement imposed under this paragraph shall not be subject to paragraph (1), (2), (3), (4),
(5), or (12).

`(B) Filing an exception:

`(i) Time to file: A political committee shall have 30 days after the imposition of a penalty or filing requirement by the Commission
under this paragraph in which to file an exception with the Commission.

`(ii) Time for Commission to rule: Within 30 days after receiving an exception, the Commission shall make a determination that
is a final agency action subject to exclusive review by the United States Court of Appeals for the District of Columbia Circuit
under section 706 of title 5, United States Code, upon petition filed in that court by the political committee or treasurer that is the
subject of the agency action, if the petition is filed within 30 days after the date of the Commission action for which review is
sought.';

(2) in paragraph (5)(D)--

(A) by inserting after the first sentence the following: `In any case in which a penalty or filing requirement imposed on a political
committee or treasurer under paragraph (13) has not been satisfied, the Commission may institute a civil action for enforcement
under paragraph (6)(A).'; and

(B) by inserting before the period at the end of the last sentence the following: `or has failed to pay a penalty or meet a filing
requirement imposed under paragraph (13)'; and

(3) in paragraph (6)(A), by striking `paragraph (4)(A)' and inserting `paragraph (4)(A) or (13)'.

SEC. 506. STRENGTHENING FOREIGN MONEY BAN.
Section 319 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441e) is amended--

(1) by striking the heading and inserting the following: `contributions and donations by foreign nationals'; and

(2) by striking subsection (a) and inserting the following:
`(a) Prohibition: It shall be unlawful for--

`(1) a foreign national, directly or indirectly, to make--

`(A) a donation of money or other thing of value, or to promise expressly or impliedly to make a donation, in connection with a
Federal, State, or local election to a political committee or a candidate for Federal office; or

`(ii) a contribution or donation to a committee of a political party; or

`(B) for a person to solicit, accept, or receive such contribution or donation from a foreign national.'.

SEC. 507. PROHIBITION OF CONTRIBUTIONS BY MINORS.
Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as amended by section 401) is amended by adding
at the end the following:

`SEC. 326. PROHIBITION OF CONTRIBUTIONS BY MINORS.
An individual who is 17 years old or younger shall not make a contribution to a candidate or a contribution or donation to a
committee of a political party.'.

SEC. 508. EXPEDITED PROCEDURES.
(a) In General: Section 309(a) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)) (as amended by section 505(c))
is amended by adding at the end the following:

`(14)(A) If the complaint in a proceeding was filed within 60 days preceding the date of a general election, the Commission may
take action described in this subparagraph.

`(B) If the Commission determines, on the basis of facts alleged in the complaint and other facts available to the Commission, that
there is clear and convincing evidence that a violation of this Act has occurred, is occurring, or is about to occur, the Commission
may 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.

`(C) If the Commission determines, on the basis of facts alleged in the complaint and other facts available to the Commission, that
the complaint is clearly without merit, 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 parties; or

`(ii) if the Commission determines that there is insufficient time to conduct proceedings before the election, summarily dismiss the
complaint.'.
(b) Referral to Attorney General: Section 309(a)(5) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(5)) is
amended by striking subparagraph (C) and inserting the following:
`(C) The Commission may at any time, by an affirmative vote of at least 4 of its members, refer a possible violation of this Act or
chapter 95 or 96 of title 26, United States Code, to the Attorney General of the United States, without regard to any limitation set
forth in this section.'.

SEC. 509. INITIATION OF ENFORCEMENT PROCEEDING.
Section 309(a)(2) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437g(a)(2)) is amended by striking `reason to believe
that' and inserting `reason to investigate whether'.

TITLE VI--SEVERABILITY; CONSTITUTIONALITY; EFFECTIVE DATE; REGULATIONS

SEC. 601. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or the application of a provision or amendment to any person or
circumstance, is held to be unconstitutional, the remainder of this Act and amendments made by this Act, and the application of the
provisions and amendment to any person or circumstance, shall not be affected by the holding.

SEC. 602. REVIEW OF CONSTITUTIONAL ISSUES.
An appeal may be taken directly to the Supreme Court of the United States from any final judgment, decree, or order issued by
any court ruling on the constitutionality of any provision of this Act or amendment made by this Act.

SEC. 603. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the amendments made by this Act take effect on the date that is 60 days
after the date of enactment of this Act or January 1, 1998, whichever occurs first.

SEC. 604. REGULATIONS.
The Federal Election Commission shall prescribe any regulations required to carry out this Act and the amendments made by this
Act not later than 270 days after the effective date of this Act.

AMENDMENT NO. 1258

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. Mr. President, I send an amendment to the desk.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment numbered 1258.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

Strike all of section 501, and insert the following:

SEC. 501. PAYCHECK PROTECTION ACT.

(a) In General.--Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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
activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

Mr. LOTT. Mr. President, I ask for the yeas and nays on the amendment.

The PRESIDING OFFICER. Is there a sufficient second?

There is a sufficient second.

The yeas and nays were ordered.

AMENDMENT NO. 1259 TO AMENDMENT NO. 1258

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. Mr. President, I send an amendment to the desk to my amendment.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment numbered 1259 to amendment No. 1258.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

In lieu of the matter proposed to be inserted insert the following:

SEC. 501. PAYCHECK PROTECTION ACT.

(a) In General.--Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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
activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

(b) Effective Date.--This section shall take effect one day after enactment of this Act.

Mr. LOTT. I ask for the yeas and nays on the amendment.

The PRESIDING OFFICER. Is there a sufficient second?

There is a sufficient second.

The yeas and nays were ordered.

AMENDMENT NO. 1260 TO AMENDMENT NO. 1258

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. I send a perfecting amendment to the desk.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment numbered 1260 to amendment No. 1258.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

Strike all after the word `SEC.' in the pending amendment and insert the following:

501. PAYCHECK PROTECTION ACT.

(a) In General: Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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
activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

(b) Effective Date: This section shall take effect two days after enactment of this Act.

AMENDMENT NO. 1261

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. I now send an amendment to the desk to the language proposed to be stricken.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment No. 1261.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

On page 42, in the language proposed to be stricken, strike all after `SEC. 501' through the end of the page and insert the
following:

PAYCHEK PROTECTION ACT.

(a) In General.--Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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
activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

(b) Effective Date.--This section shall take effect three days after enactment of this Act.

Mr. LOTT. I now ask for the yeas and nays.

The PRESIDING OFFICER. Is there a sufficient second?

There is a sufficient second.

The yeas and nays were ordered.

AMENDMENT NO. 1262 TO AMENDMENT NO. 1261

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. Mr. President, I send an amendment to the desk to my amendment.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment numbered 1262 to amendment No. 1261.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

Strike all after the first word in the pending amendment and insert the following:

PROTECTION ACT.

(a) In General: Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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 to its stockholders or employees any
dues, initiation fee, or other payment as a condition of employment it any part of such dues, fee, or payment will be used for
political activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

(b) Effective Date: This section shall take effect four days after enactment of this Act.

MOTION TO RECOMMIT

AMENDMENT NO. 1263 TO INSTRUCTIONS TO THE MOTION TO RECOMMIT

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. Mr. President, I now move that the Senate recommit S. 25 to the Committee on Rules and Administration with
instructions to report back forthwith, and I send an amendment to the instructions to the desk.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment numbered 1263 to instructions to the motion to recommit.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

At the end of the instructions add the following:
`with an amendment as follows:

Strike all of section 501 and insert the following:

SEC. . PAYCHECK PROTECTION ACT.

(a) In General: Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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
activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

Mr. LOTT. I ask for the yeas and nays.

The PRESIDING OFFICER. Is there a sufficient second?

There is a sufficient second.

The yeas and nays were ordered.

AMENDMENT NO. 1264 TO AMENDMENT NO. 1263

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. I send an amendment to the desk.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

The Senator from Mississippi [Mr. Lott] proposes an amendment numbered 1264 to amendment No. 1263.

Mr. LOTT. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

I ask for the yeas and nays.

The PRESIDING OFFICER. Is there a sufficient second?

Mr. McCAIN. I object to suspension of the reading. I would like to know what the amendment is.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

In lieu of the matter proposed to be inserted insert the following:

SEC. . PAYCHECK PROTECTION ACT.

(a) In General.--Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441b) is amended by adding 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
activities in which the national bank or corporation, as the case may be, 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 activities.

`(2) An authorization described in paragraph (1) shall remain in effect until revoked and may be revoked at any time.

`(3) For purposes of this subsection, the term `political activities' includes communications or other activities which involve carrying
on propaganda, attempting to influence legislation, or participating or intervening in any political campaign or political party.'

Effective Date: This section shall take effect one day after enactment of this Act.

The PRESIDING OFFICER. Is there a sufficient second to the request for the yeas and nays?

There is a sufficient second.

The yeas and nays were ordered.

AMENDMENT NO. 1265 TO AMENDMENT NO. 1264

    (PURPOSE: TO GUARANTEE THAT CONTRIBUTIONS TO FEDERAL POLITICAL CAMPAIGNS ARE
                                          VOLUNTARY)

Mr. LOTT. I send a final amendment to the desk.

The PRESIDING OFFICER. The clerk will report.

The legislative clerk read as follows:

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