To amend the Federal Election Campaign Act of 1971 to restrict the use of non-Federal funds by national political parties, to revise the limitations on the amount of certain contributions which may be made under such Act, to promote the availability of information on communications made with respect to campaigns for Federal elections, and for other purposes.

June 28, 2001

Mr. NEY (for himself, Mr. WYNN, Mr. SWEENEY, Mr. MICA, Mr. REYNOLDS, Mr. LATOURETTE, Mr. PETERSON of Pennsylvania, Mr. HOBSON, Ms. DUNN of Washington, Mr. CUNNINGHAM, Mr. TAYLOR of North Carolina, Mr. TRAFICANT, Ms. PRYCE of Ohio, Mr. BLUNT, Mr. EHLERS, Mr. BALLENGER, and Mr. NORWOOD) introduced the following bill; which was referred to the Committee on House Administration

July 10, 2001

Additional sponsors: Mr. PORTMAN and Mr. Forbes

July 10, 2001

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on June 28, 2001]

To amend the Federal Election Campaign Act of 1971 to restrict the use of non-Federal funds by national political parties, to revise the limitations on the amount of certain contributions which may be made under such Act, to promote the availability of information on communications made with respect to campaigns for Federal elections, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Campaign Reform and Citizen Participation Act of 2001'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--SOFT MONEY OF NATIONAL PARTIES

Sec. 101. Restrictions on soft money of national political parties.

TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

Sec. 201. Increase in limits on certain contributions.

Sec. 202. Increase in limits on contributions to State parties.

Sec. 203. Treatment of contributions to national party under aggregate annual limit on individual contributions.

Sec. 204. Exemption of costs of volunteer campaign materials produced and distributed by parties from treatment as contributions and expenditures.

Sec. 205. Indexing.

TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

Sec. 301. Disclosure of information on communications broadcast prior to election.

Sec. 302. Disclosure of information on targeted mass communications.

TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

TITLE I--SOFT MONEY OF NATIONAL PARTIES

SEC. 101. RESTRICTIONS ON SOFT MONEY OF NATIONAL 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 new section:

`SOFT MONEY OF NATIONAL POLITICAL PARTIES

`SEC. 323. (a) PROHIBITING USE OF SOFT MONEY FOR FEDERAL ELECTION ACTIVITY- A national committee of a political party (including a national congressional campaign committee of a political party) may not solicit, receive, or direct to another person a contribution, donation, or transfer of funds or any other thing of value for Federal election activity, or spend any funds for Federal election activity, that are not subject to the limitations, prohibitions, and reporting requirements of this Act.

`(b) LIMIT ON AMOUNT OF NONFEDERAL FUNDS PROVIDED TO PARTY BY ANY PERSON FOR ANY PURPOSE- No person shall make contributions, donations, or transfers of funds which are not subject to the limitations and prohibitions of this Act to a political committee established and maintained by a national political party in any calendar year in an aggregate amount equal to or greater than $75,000.

`(c) APPLICABILITY- This subsection shall apply to any political committee established and maintained by a national political party, any officer or agent of such a committee acting on behalf of the committee, and any entity that is directly or indirectly established, maintained, or controlled by such a national committee.

`(d) DEFINITIONS-

`(1) 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, unless the activity constitutes generic campaign activity;

`(ii) voter identification or get-out-the-vote 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), unless the activity constitutes generic campaign activity;

`(iii) any public communication that refers to or depicts a clearly identified candidate for Federal office (regardless of whether a candidate for State or local office is also mentioned or identified) and that promotes or supports a candidate for that office, or attacks or opposes a candidate for that office (regardless of whether the communication expressly advocates a vote for or against a candidate); or

`(iv) any public communication made by means of any broadcast, cable, or satellite communication.

`(B) EXCEPTION FOR CERTAIN ADMINISTRATIVE ACTIVITIES- The term `Federal election activity' does not include any activity relating to establishment, administration, or solicitation costs of a political committee established and maintained by a national political party, so long as the funds used to carry out the activity are derived from funds or payments made to the committee which are segregated and used exclusively to defray the costs of such activities.

`(2) GENERIC CAMPAIGN ACTIVITY- The term `generic campaign activity' means any activity that does not mention, depict, or otherwise promote a clearly identified Federal candidate.

`(3) PUBLIC COMMUNICATION- The term `public communication' means a communication by means of any broadcast, cable, or satellite communication, newspaper, magazine, outdoor advertising facility, or direct mail.

`(4) DIRECT MAIL- The term `direct mail' means a mailing by a commercial vendor or any mailing made from a commercial list.'.

TITLE II--MODIFICATION OF CONTRIBUTION LIMITS

SEC. 201. INCREASE IN LIMITS ON CERTAIN CONTRIBUTIONS.

(a) CONTRIBUTIONS BY INDIVIDUALS TO NATIONAL PARTIES- Section 315(a)(1)(B) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)(B)) is amended by striking `$20,000' and inserting `$30,000'.

(b) CONTRIBUTIONS BY COMMITTEES TO NATIONAL PARTIES- Section 315(a)(2)(B) of such Act (2 U.S.C. 441a(a)(2)(B)) is amended by striking `$15,000' and inserting `$30,000'.

(c) AGGREGATE ANNUAL LIMIT ON CONTRIBUTIONS BY INDIVIDUALS- Section 315(a)(3) of such Act (2

U.S.C. 441a(a)(3)) is amended by striking `$25,000' and inserting `$37,500'.

SEC. 202. INCREASE IN LIMITS ON CONTRIBUTIONS TO STATE PARTIES.

(a) CONTRIBUTIONS BY INDIVIDUALS- 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 which, in the aggregate, exceed $10,000.'.

(b) CONTRIBUTIONS BY COMMITTEES- Section 315(a)(2) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(2)) 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 which, in the aggregate, exceed $10,000.'.

SEC. 203. TREATMENT OF CONTRIBUTIONS TO NATIONAL PARTY UNDER AGGREGATE ANNUAL LIMIT ON INDIVIDUAL CONTRIBUTIONS.

Section 315(a)(3) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441(a)(3)) is amended--

(1) by striking `(3)' and inserting `(3)(A)'; and

(2) by adding at the end the following new subparagraph:

`(B) Subparagraph (A) shall not apply with respect to any contribution made to any political committee established and maintained by a national political party which is not the authorized political committee of any candidate.'.

SEC. 204. EXEMPTION OF COSTS OF VOLUNTEER CAMPAIGN MATERIALS PRODUCED AND DISTRIBUTED BY PARTIES FROM TREATMENT AS CONTRIBUTIONS AND EXPENDITURES.

(a) TREATMENT AS CONTRIBUTIONS- Section 301(8)(B)(x) of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)(x)) is amended by striking `a State or local committee of a political party of the costs of' and inserting `a national, State, or local committee of a political party of the costs of producing and distributing'.

(b) TREATMENT AS EXPENDITURES- Section 301(9)(B)(viii) of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(B)(viii)) is amended by striking `a State or local committee of a political party of the costs of' and inserting `a national, State, or local committee of a political party of the costs of producing and distributing'.

SEC. 205. INDEXING.

Section 315(c) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(c)) is amended--

(1) in paragraph (1)--

(A) by striking the second and third sentences;

(B) by inserting `(A)' before `At the beginning'; and

(C) by adding at the end the following:

`(B) Except as provided in subparagraph (C), in any calendar year after 2002--

`(i) a limitation established by subsections (a), (b), (d), or (h) shall be increased by the percent difference determined under subparagraph (A);

`(ii) each amount so increased shall remain in effect for the calendar year; and

`(iii) if any amount after adjustment under clause (i) is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.

`(C) In the case of limitations under subsections (a) and (h), increases shall only be made in odd-numbered years and such increases shall remain in effect for the 2-year period beginning on the first day following the date of the last general election in the year preceding the year in which the amount is increased and ending on the date of the next general election.'; and

(2) in paragraph (2)(B), by striking `means the calendar year 1974' and inserting `means--

`(i) for purposes of subsections (b) and (d), calendar year 1974; and

`(ii) for purposes of subsections (a) and (h), calendar year 2001'.

TITLE III--DISCLOSURE OF ELECTION-RELATED COMMUNICATIONS

SEC. 301. DISCLOSURE OF INFORMATION ON COMMUNICATIONS BROADCAST PRIOR TO ELECTION.

Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 434), as amended by section 502(a) of the Department of Transportation and Related Agencies Act, 2001 (as enacted into law by reference under section 101(a) of Public Law 106-346), is amended by adding at the end the following new subsection:

`(e) DISCLOSURE OF INFORMATION ON CERTAIN COMMUNICATIONS BROADCAST PRIOR TO ELECTIONS-

`(1) IN GENERAL- Any person who makes a disbursement for a communication described in paragraph (3) shall, not later than 24 hours after making the disbursement, file with the Commission a statement containing the information required under paragraph (2).

`(2) CONTENTS OF STATEMENT- Each statement required to be filed under this subsection shall be made under penalty of perjury and shall contain the following information:

`(A) The identification of the person making the disbursement, of any individual or entity sharing or exercising direction or control over the activities of such person, and of the custodian of the books and accounts of the person making the disbursement.

`(B) The principal place of business and phone number of the person making the disbursement, if not an individual.

`(C) The amount of the disbursement.

`(D) The clearly identified candidate or candidates to which the communication pertains and the names (if known) of the candidates identified or to be identified in the communication.

`(E) The text of the communication involved.

`(3) COMMUNICATIONS DESCRIBED-

`(A) IN GENERAL- A communication described in this paragraph is any communication--

`(i) which is disseminated to the public by means of any broadcast, cable, or satellite communication during the 120-day period ending on the date of a Federal election; and

`(ii) which mentions a clearly identified candidate for such election (by name, image, or likeness).

`(B) EXCEPTION- A communication is not described in this paragraph if--

`(i) the communication appears in a news story, commentary, or editorial distributed through the facilities of any broadcasting station, unless such facilities are owned or controlled by any political party, political committee, or candidate; or

`(ii) the communication constitutes an expenditure under this Act.

`(4) COORDINATION WITH OTHER REQUIREMENTS- Any requirement to file a statement under this subsection shall be in addition to any other reporting requirement under this Act.

`(5) CLARIFICATION OF TREATMENT OF VENDORS- A person shall not be considered to have made a disbursement for a communication under this subsection if the person made the disbursement solely as a vendor acting pursuant to a contractual agreement with the person responsible for sponsoring the communication.'.

SEC. 302. DISCLOSURE OF INFORMATION ON TARGETED MASS COMMUNICATIONS.

Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 434), as amended by section 301, is further amended by adding at the end the following new subsection:

`(f) DISCLOSURE OF INFORMATION ON TARGETED MASS COMMUNICATIONS-

`(1) IN GENERAL- Any person who makes a disbursement for targeted mass communications in an aggregate amount in excess of $50,000 during any calendar year shall, within 24 hours of each disclosure date, file with the Commission a statement containing the information described in paragraph (2).

`(2) CONTENTS OF STATEMENT- Each statement required to be filed under this subsection shall be made under penalty of perjury and shall contain the following information:

`(A) The identification of the person making the disbursement, of any individual or entity sharing or exercising direction or control over the activities of such person, and of the custodian of the books and accounts of the person making the disbursement.

`(B) The principal place of business and phone number of the person making the disbursement, if not an individual.

`(C) The amount of each such disbursement of more than $200 made by the person during the period covered by the statement and the identification of the person to whom the disbursement was made.

`(D) The clearly identified candidate or candidates to which the communication pertains and the names (if known) of the candidates identified or to be identified in the communication.

`(E) The text of the communication involved.

`(3) TARGETED MASS COMMUNICATION DEFINED-

`(A) IN GENERAL- In this subsection, the term `targeted mass communication' means any communication--

`(i) which is disseminated during the 120-day period ending on the date of a Federal election;

`(ii) which refers to or depicts a clearly identified candidate for such election (by name, image, or likeness); and

`(iii) which is targeted to the relevant electorate.

`(B) TARGETING TO RELEVANT ELECTORATE-

`(i) BROADCAST COMMUNICATIONS- For purposes of this paragraph, a communication disseminated to the public by means of any broadcast, cable, or satellite communication which refers to or depicts a clearly identified candidate for Federal office is `targeted to the relevant electorate' if the communication is disseminated by a broadcaster whose audience includes--

`(I) a substantial number of residents of the district the candidate seeks to represent (as determined in accordance with regulations of the Commission), in the case of a candidate for Representative in, or Delegate or Resident Commissioner to, the Congress; or

`(II) a substantial number of residents of the State the candidate seeks to represent (as determined in accordance with regulations of the Commission), in the case of a candidate for Senator.

`(ii) OTHER COMMUNICATIONS- For purposes of this paragraph, a communication which is not described in clause (i) which refers to or depicts a clearly identified candidate for Federal office is `targeted to the relevant electorate' if--

`(I) more than 10 percent of the total number of intended recipients of the communication are members of the electorate involved with respect to such Federal office; or

`(II) more than 10 percent of the total number of members of the electorate involved with respect to such Federal office receive the communication.

`(C) EXCEPTIONS- The term `targeted mass communication' does not include--

`(i) a communication appearing in a news story, commentary, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, or other periodical publication, unless such facilities are owned or controlled by any political party, political committee, or candidate;

`(ii) a communication made by any membership organization (including a labor organization) or corporation solely to its members, stockholders, or executive or administrative personnel, if such membership organization or corporation is not organized primarily for the purpose of influencing the nomination for election, or election, of any individual to Federal office; or

`(iii) a communication which constitutes an expenditure under this Act.

`(4) DISCLOSURE DATE- For purposes of this subsection, the term `disclosure date' means--

`(A) the first date during any calendar year by which a person has made disbursements for targeted mass communications aggregating in excess of $50,000; and

`(B) any other date during such calendar year by which a person has made disbursements for targeted mass communications aggregating in excess of $50,000 since the most recent disclosure date for such calendar year.

`(5) COORDINATION WITH OTHER REQUIREMENTS- Any requirement to report under this subsection shall be in addition to any other reporting requirement under this Act.

`(6) CLARIFICATION OF TREATMENT OF VENDORS- A person shall not be considered to have made a disbursement for a communication under this subsection if the person made the disbursement solely as a vendor acting pursuant to a contractual agreement with the person responsible for sponsoring the communication.'.

TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

The amendments made by this Act shall apply with respect to elections occurring after December 2002.

Union Calendar No. 74

To amend the Federal Election Campaign Act of 1971 to restrict the use of non-Federal funds by national political parties, to revise the limitations on the amount of certain contributions which may be made under such Act, to promote the availability of information on communications made with respect to campaigns for Federal elections, and for other purposes.

July 10, 2001

END